Fayette school board member calls for independent forensic audit of budget

In the latest twist in Fayette County Schools’ budget upheaval, board member Monica Mundy is calling for a forensic audit of the district’s budget.

On Sep. 16, a special board meeting will be held to vote on having an independent financial investigation.

Mundy wants an even deeper examination of the cash-strapped district’s financial situation.

“If the board is being asked to authorize an external operational audit, investigation and review of the finances, I believe we should also include a forensic audit,” Mundy said Wednesday on her Facebook page.

Late Tuesday, Fayette County Public Schools Board of Education Chair Tyler Murphy called for a Sept. 16 special board meeting to authorize an external operational audit, investigation and review of the budget, finance and internal control systems.

Fayette Superintendent Demetrus Liggins said he supports the independent review.

“It’s an important opportunity to cut through the noise and make sure accurate information is out there. At the end of the day, this is about transparency, accountability and using our resources wisely for students.”

Mundy said a forensic audit takes an independent financial investigation a step further by reviewing not only overall financial health and accounting practices but also identifying any potential financial irregularities, fraud or other illegal practices.

“To be clear, I am not suggesting that such issues have occurred. However, since we are proposing to use taxpayers’ dollars to fund this independent finance investigation, I believe we have a responsibility to ensure the most thorough and transparent review possible,” she said.

Murphy said over the past few weeks, he and vice chair Amy Green have collaborated with the superintendent, sharing key recommendations to improve district processes and the board’s work. Many of those have already been implemented, he said.

“This independent review will build on that progress, identify other solution areas, and reinforce our promise to the community to be good stewards of taxpayer dollars,” Murphy said.

Mundy responded that she needs deeper collaboration and more information.

“While the board chair and vice chair have had the opportunity to engage in in-depth conversations with the superintendent...apparently for weeks...regarding recommendations to improve district processes, I have not had the benefit of participating in those discussions. Knowing how we truly got here is the only way to understand where we need to go. That is why we need a forensic audit.”

Mundy joins the group Kentuckians for the Commonwealth, state Sen. Anne Donworth of Lexington and other Lexington residents in calling for a forensic audit.

Already, signs of problems with the district’s previous budgets are starting to surface.

Calvin Cranfill is a former forensic budget for the Office of Educational Accountability and a certified public accountant. In a Herald-Leader guest column Wednesday, Cranfill said that for the past two fiscal years, the Fayette school board voted to approve final working budgets that presented projected costs that were some $95 million less than what was actually spent.

“A full forensic analysis of the district is certainly warranted,” Cranfill said in his column.

District spokesperson Miranda Scully on Wednesday did not immediately speak to Mundy’s request for a forensic audit or say whether Liggins would support it.

“On Monday, the Fayette County Board of Education voted unanimously ‘to authorize board officers, in consultation with the board attorney, to negotiate and present options and terms for a possible investigation to be addressed at a meeting to be scheduled by the board chair.’”

Meanwhile, Sen. Steve West said he has summoned Liggins to Frankfort at 11 a.m. Sept. 16 to appear before the Interim Joint Committee on Education that he co-chairs.

The superintendent is also being asked to bring 10 years of previous budgets.