External audit could determine if FCPS superintendent properly oversaw budget

Did Superintendent Demetrus Liggins and the five-member Fayette County school board do their jobs in tracking the district’s expenses and overseeing its budget?

That’s a question a Fayette County Public Schools district audit committee wants to know. And on Monday, it recommended an external auditor set to be hired by the school board verifies that the superintendent and other leaders are providing adequate oversight of the budget. .

Nick Clark, the district’s internal auditor and a non-voting member of the audit committee that helps the school board oversee financial reporting, presented wide-ranging recommendations at Monday’s school board planning meeting.

School board members had asked the audit committee to develop a request for proposals for an external auditor.

The district, with an $827.2 million budget for the fiscal year that began July 1, is under scrutiny for budget problems and the school board is pursuing an external audit.

The audit committee is recommending an external auditor look at the budget process and travel and event expenses and conduct a data-driven risk analysis.

Kentucky State Auditor Allison Ball is also conducting a special examination, separate from the school board’s external audit.

School board chair Tyler Murphy said he thought the “community has an interest in us moving forward” and the board could call a special meeting to vote on the recommendations. The board’s regular monthly meeting is Oct. 22.

Clark said at the meeting the external audit could cost between $50,000 to $100,000, but exact costs won’t be immediately known.

The recommendations from the outside committee include:

• A review and evaluation of the design and execution of the current year’s budget process, analyze and confirm the previous $16 million shortfall and confirm whether significant variances are identified early, and corrective actions are considered.
• An audit of the drivers and rationale underlying the dramatic change observed in the balance or use of the contingency fund, examining specific transactions and approvals that contributed to the shift.
• Verifying that the board, Liggins and senior leadership provided adequate oversight during the budget development and approval process.
• It would also review whether the board fulfilled its accountability obligations by actively reviewing, questioning and approving budget proposals, and by monitoring financial performance throughout the year.
• Confirming compliance with FCPS and state policies and regulations relative to the budget process.
• Assessing whether the district provided clear, timely and transparent communication to the board, staff and public about the budget process and shortfall.
• Scrutinizing the district’s travel and event expenses from the past three fiscal years to make sure travel and expenses were properly approved in advance, whether there was inappropriate or excess travel costs and determine if there is a sufficient monitoring and reporting process in place to detect issues.
• Reviewing whether reporting of leadership travel and expenses to the board and public is complete, accurate, and timely.
• Executing a data analysis to determine the need for, and potential direction of, a forensic budget examination that community members and at least one school board member has asked for.

This story was originally published October 13, 2025 at 4:38 PM.