UPDATE: Sept. 10 at 9:30 a.m.
Fayette County School Board Member Monica Mundy has called for a forensic audit into board finances after Fayette County Board of Education Chair Tyler Murphy reported that the agenda at a special meeting will include "authorizing an external operational audit, investigation, and review of our budget, finance, and external control systems."
Mundy stated on social media, "My understanding is that 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."
Mundy said that the most thorough and transparent review is necessary, "since we are proposing to use taxpayers' dollars to fund this independent finance investigation."
"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 concluded.
UPDATE: Sept. 9 at 6:50 p.m.
Fayette County Public Schools is racing against a September 30 deadline to submit a balanced budget to the state as controversy continues over a $16 million shortfall that emerged in May.
The school board met Monday night to discuss its working budget for the 2025-2026 school year, with Superintendent Demetrus Liggins promising increased oversight of district finances.
"In hindsight, I wish I had asked a lot more probing questions, gotten more deeply involved, and been a little more skeptical," Liggins said. "We will move forward from here to ensure we don't find ourselves in this situation again."
The district's financial director, Rodney Jackson, outlined new steps including tightening financial monitoring, expenditure controls and revenue adjustments.
Still, scrutiny persists from FCPS parents and community members.
Parent Leanne Sebourn said she has lost faith in Liggins and the board's ability to manage the district's finances.
"I honestly don't know if he's qualified to oversee this large of a budget," Sebourn said. "There's a lot of confusion, a lot of terms being thrown around that I don't think even they understand, the laws are written in a way that's hard to interpret, but it seems pretty clear that there are major issues."
Despite the backlash, Liggins said he was excited to present the proposed $827 million budget, which he believes will protect most classroom investments without raising the occupational license tax. The proposed budget is less than the tentative budget presented in May.
While the budget is considered balanced, at least one board member questioned the contingency fund amount.
"I guess I'm still not sure where the $26.3 million came from," said Board Member Amanda Ferguson.
Meanwhile, Liggins announced during the meeting that the district will undergo an internal investigation into the budget issues. However, several community members at Monday's meeting and into Tuesday called for a third-party audit instead.
"If you want to restore faith, then have an independent investigation," said one person during public comment.
"There needs to be an outside person or firm looking into this, not someone from the inside," said Sebourn. "I don't know if there's something to cover up, I don't know where the funds have gone, but having someone on the inside is not the answer."
Late Tuesday afternoon, Board Chair Tyler Murphy called a special board meeting for next Tuesday. The agenda will include authorizing an external operational audit, investigation and review of the budget, finance and internal control systems.
The board will also meet again on Sept. 22. Kentucky law requires that a balanced budget be submitted no later than Sept. 30.
UPDATE: September 9 at 5 p.m.
Fayette County Board of Education Chair Tyler Murphy announced on Tuesday that the agenda of an upcoming special called board meeting will include "authorizing an external operational audit, investigation, and review of our budget, finance, and external control systems."
The announcement comes following Monday night's meeting, where some community members and Board Member Amanda Ferguson argued that the district's contingency fund is $10 million less than the district previously reported.
The district later denied this claim.
"The challenges we've faced are not unique," Murphy said in the release. "We must approach them head-on, committed to solutions and stronger communications in order to strengthen trust with our community."
Murphy said that over the past few weeks, he and Vice Chair Amanda Green have worked with Superintendent Demetrus Liggins, providing recommendations to "improve district processes and the board's work."
Many of those recommendations, Murphy said, have already been implemented.
"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," he continued in the release.
The special called meeting is scheduled for Tuesday, Sept. 16 at 5:30 p.m.
Original Story:
The Fayette County School Board met once again Monday evening to discuss the district's working budget for the 2025-26 school year, totaling more than $690 million in the general fund.
This is less than the original tentative budget, which totaled $715 million.
At Monday's meeting, which stretched for more than five hours, board and community members disputed the district's contingency fund, which the district reports is at $26.3 million.
Some, including Board Member Amanda Ferguson, argue the district's contingency fund is only $15.6 million. The discrepancy is due to overspending in the special revenue and food services fund, which the district refuted, saying that number was incorrectly calculated.
Aggressive public comment called for third party audits, instead of the district's own internal investigation of its affairs.
After a nearly two-hour executive session, the board reconvened after the meeting with a motion to "authorize board officers in consultation with the board attorney to negotiate and present terms for a possible investigation to be addressed at meeting to be scheduled by board chair."
The board is set to meet again on September 22. Kentucky law requires that a balanced budget be submitted no later than September 30.
