Fayette schools face accounting concerns as outside reviews continue

LEXINGTON, Ky. — As the school district works to rectify potentially decades of inaccurate accounting, two finance employees with Fayette County Public Schools are on paid leave. At the same time, two external reviews continue for Kentucky’s second-largest school district.

FCPS Superintendent Demetrus Liggins said he’s been made aware of troubling and deeply concerning information.

“I’ve spoken with several of our district’s financial advisor and our external audit firm and have conducted our that’s conducted our routine audit. and those conversations have also revealed issues that I was unaware of,” Liggins said.

One review is from accounting firm Weaver and Tidwell, hired by the district, and another, which Liggins said he requested, is being conducted by the auditor of public accounts.

While those reviews are ongoing, and based on preliminary reporting, Liggins said he’s been informed of both inaccuracies and improper accounting practices that date back to 2008.

Last month, the district hired Kyna Koch, a former associate commissioner of finance for the Kentucky Department of Education, as the interim chief financial officer.

Since taking on the task, she said she doesn’t have confidence in the numbers she’s been asked to review.

“Federal and state requirements may not have been followed, and our accounting procedures may not have been aligned with acceptable practices,” Koch said.

Koch said inaccuracies were found in revenue collection, record-keeping, invoicing, and that spending guidelines may not have been followed.

Now she’s helping set new measures, like additional reviews, to dig deeper and provide a clearer financial picture.

“It’s clear that these practices are sometimes nuanced and not easily identified through routine financial reports that are provided to the superintendent and the board. Some of these things would not have been readily apparent based on the information typically generated,” Koch said.

Koch is also recommending that the district get a short-term loan to cover expenditures until next fall’s property taxes are collected.

Though the district is not releasing names at this time, Liggins did comment on the status of some finance administrators.

“We currently have three administrators in our financial and accounting office. Two are on paid administrative leave, and one is on medical leave,” Koch said.

Those on paid administrative leave are pending an investigation.

Liggins said while they are still awaiting finalized reports from those outside audits, they’re aiming for accuracy and transparency in their next moves.

“As we continue this work, I’m committed to following the facts wherever they may lead, and whatever they may uncover, we’re only after the truth,” Liggins said.

Liggins was asked on Thursday whether property taxes would increase for the 2026-27 school year. He said they are not currently planning to ask the board to raise property taxes any more than they typically have in years past.

On Monday, Koch will present her latest findings to the board at its regularly scheduled finance meeting.

Koch also said the district plans to have a loan proposal ready as soon as next month.