‘Deeply concerning.’ FCPS finance employees put on leave pending investigations

Two Fayette County Public Schools finance employees are on paid leave pending the results of investigations into the district’s budget problems, as inaccuracies in accounting practices dating back to at least 2008 have been found, Superintendent Demetrus Liggins announced Thursday.

Liggins, joined by Interim Chief Financial Officer Kyna Koch, announced that because of the issues dating back nearly 20 years, FCPS has a much lower fund balance than expected. Koch said the district will seek a short-term loan to cover expenditures.

District officials declined to identify the employees placed on paid leave. Liggins also said another employee working in finance was on medical leave, but he did not identify that employee either.

Koch, who was appointed to her role last month to try to help the district, said she doubts the accuracy of FCPS’ financial information.

“I do not have confidence in the accuracy of the financial information that’s previously been given to Dr. Liggins, the board of education, and the public,” Koch said Thursday.

FCPS has already undergone multiple audits and reviews to address a major budget deficit revealed last year, and it is awaiting the results of two more investigations. Liggins said there’s no evidence of criminal activity at this point, but the reviews are ongoing.

In a letter to families shared Thursday, Liggins also said he got troubling information from those conducting the ongoing reviews.

“There are also two ongoing external investigations/audits, which I recently received updates regarding,” Liggins said. “While the final reports are not yet complete, the information I’ve learned is deeply concerning. It appears that our district finances have been misstated for years, that multiple federal and state requirements may not have been followed, and that our accounting procedures may not have been aligned with acceptable practices.”

An attorney hired by the Fayette County Board of Education to investigate Liggins’ role in tending to district finances found multiple policy violations by the superintendent, according to a report provided in February.

The report found Liggins failed to comply with two policy obligations, as well as board governance, while the district faced a budget crisis. The district acknowledged last year it was facing a potential $16 million budget shortfall, and a contingency fund that was expected to be big enough to fill that gap actually held much less money than expected, district officials said in August last year.

Liggins said Thursday the Fayette County Board of Education made it “very clear that I need to drill down to the root cause of our financial challenges,” which is why he has taken greater control of financial management for the district.

Koch said Thursday that Liggins “has taken deliberate steps” to address problems, and has made a lot of progress to resolve FCPS’ issues over the last nine months.

The school district has contracted with the Texas accounting firm Weaver and Tidwell to conduct an audit of Fayette County Public Schools, and results are still pending. State Auditor Allison Ball is also conducting an investigation.

Liggins pledged Thursday that he would get the district’s financial house in order.

“The time is now,” he said.

This story was originally published April 23, 2026 at 4:07 PM.