LEXINGTON, Ky. (LEX 18) — The Fayette County School Board announced on Monday night that recommendations from an internal audit committee regarding an external audit have been approved.
The board previously voted to utilize the committee to determine the scope of the audit, which "presented an extensive scope of work" on Monday, including a review across three areas "to improve financial governance, compliance, and risk management."
These three areas include a budget process review, travel and expense review, and a data-driven risk analysis.
Budget Process Review
A review of the district's budget process will include documenting the operational schedule, analyzing the budget shortfall and "providing a clear breakdown of the variance that attributes the total amount of the root revenue and expense components."
The audit will also determine if "new initiatives or one-time items were properly budgeted" and will verify that the board and Superintendent Demetrus Liggins have "provided adequate oversight during the budget development and approval process."
Travel & Event Expense Review
Travel and event expenses of senior leadership over the last three years will be reviewed in the audit, and will work to determine if they were properly authorized in according to district policies.
The audit will also "determine whether instances of inappropriate or excessive travel expenditures occurred and evaluate whether monitoring and reporting processes were sufficient to prevent or detect such issues."
Data-driven Risk Analysis
A "comprehensive analytical risk assessment across all major budget categories" will close out the audit, working to determine areas "exhibiting the highest financial impact and significant budget variances."
It will additionally review the "key drivers" that have led to the district's current budget and financial conditions, and evaluate if "deeper forensic procedures" are necessary.
Read the full scope of the audit below.
The next audit committee meeting is scheduled for November 10 at 4 p.m., with a school board planning meeting to follow.
