LEXINGTON, Ky. (LEX 18) — The Fayette County Board of Education received an independent investigation report that found Superintendent Demetrius Liggins failed to adequately oversee the district's financial situation and keep board members properly informed about budget concerns.
Attorney Leigh Latherow of VanAntwerp Attorneys conducted the investigation after allegations were raised by district employee Ann Sampson Grimes in August 2025. The report concluded that Liggins violated board policies regarding his duties as superintendent and budget planning by not maintaining appropriate oversight of the district's finance and budget departments.
"Sufficient evidence was presented to substantiate a finding that the superintendent failed to fully comply with the requirements set forth in Board Policies," Latherow wrote in the 13-page report.
The investigation focused on the district's fiscal year 2025-26 budget process, which revealed a $16 million shortfall between projected revenues and expenses. Latherow found that while Liggins did not intentionally withhold information about the district's fund balance from the board, he should have probed deeper into the financial situation by May 2025.
Parent Matthew Vied said the report's findings were troubling.
"His district had overspent the contingency fund, had spent the contingency fund without getting board approval. The superintendent must know that and so, very disappointing. I think there should be consequences for that," Vied said.
Vied added that the investigation validated community concerns about financial oversight.
"It confirmed a lot of people's minds that the proper oversight was not given to the budget by the superintendent," Vied said.
The investigation examined several specific allegations, including claims that Liggins knowingly failed to follow the board's 6% contingency fund procedure and that he silenced Grimes during budget presentations. However, Latherow did not find evidence to support these particular claims.
Grimes had alleged that Liggins changed her presentation language from "deficit" to "difference" when describing the budget shortfall to board members. The investigation found this did not constitute silencing or policy violations, as board members had already been informed about the financial situation in detail during smaller group meetings.
The report also examined allegations of age and sex discrimination against Grimes but found insufficient evidence to substantiate these claims. Latherow noted that Grimes refused multiple requests for interviews, which "impeded those efforts" to fully investigate her concerns.
Board Chair Tyler Murphy said in a statement that the board "takes its governance responsibility seriously and is committed to a thorough and thoughtful review of the information presented."
Vied said board members were kept uninformed about the budget crisis.
"We were all in the dark about the budget situation," Vied said.
The investigation was authorized by the board at its September 16, 2025 special meeting. Murphy indicated the board will provide additional updates following its February 9 meeting.
Vied said the report's findings raise serious questions about leadership.
"My takeaway from the report is that there needs to be accountability," Vied said. "There needs to be a serious conversation amongst the board members as to whether Doctor Liggins is fit to continue leading the district."
Latherow noted that Liggins has implemented changes to improve communication between the budget and finance departments and strengthen the budgeting process since the issues were identified.
In testimony to the Interim Joint Committee on Education in September 2025, Liggins acknowledged that criticism of the district's budgeting process had been warranted and that community trust had been shaken. He stated he should have demanded more comprehensive detail and that as superintendent, "the buck stops with [him].""
Read Murphy's full statement below:
The Fayette County Board of Education and the parties have received the report from Leigh Latherow of VanAntwerp Attorneys, LLP and will carefully review her findings. This investigation was authorized by the Board at its September 16, 2025 special meeting [youtu.be]. By releasing this Board report, we are upholding our ongoing commitment to transparency and open communication with our community. The Board takes its governance responsibility seriously and is committed to a thorough and thoughtful review of the information presented. We will provide additional updates following the Board’s meeting on February 9.
Liggins additionally sent an email to staff Monday afternoon. Read that email below.
Dear Team FCPS:
When we fall short, true leaders accept responsibility, take ownership of the challenge, and choose action over deflection. Today is one of those days.
After the budget and finance issues our district faced this summer, the Fayette County Board of Education voted to have an independent investigator look into allegations regarding my handling of budget and finance matters. I welcomed the investigation and now am letting you know that the report was released this afternoon. I have attached it to this email so that you can read it yourself.
In short, the report confirms what I have shared with our community on multiple occasions. As superintendent, I relied too heavily on the leaders and teams working in the area of budget and finance every day when I should have been asking sharper questions and demanding more comprehensive detail.
As superintendent, the buck stops with me. It is my responsibility to ensure the fiscal health of the district and stewardship of the dollars our taxpayers invest in the education of our children. The obligations I owe to the members of the Fayette County Board of Education, and to our students, staff, families, and community are spelled out in board policy, and I regret that I was not more hands-on in the day-to-day operations of budget and finance.
Although most of the allegations were not substantiated, and the report acknowledges that I did not intentionally break board policy, I take full responsibility and commit to ensuring full alignment with board policy and the board governance manual moving forward.
In July, I combined the budget and finance departments, which had operated separately for over a decade. In August, I assumed direct oversight of the finance and budget departments. Today, I am actively involved on a daily basis in our district’s finances and budgeting operations. Over the past six months, I have sought to identify areas of weakness and taken decisive action to strengthen internal communication, oversight, and reporting. Additional structural changes are forthcoming to further reinforce openness and accountability.
There are more reviews currently underway to examine our budget and finance structures in greater depth, and I will continue to share information as those reviews are completed. More important than anything I can say are the actions I have taken. I recognize that confidence has been shaken for some in our community and I continue to take concrete steps to address those concerns.
FCPS is currently operating under a balanced budget with a $27 million contingency fund, well above state requirements. Our recent annual audit confirmed that we have sound financial practices and fiscal integrity. We have improved our analysis, forecasting, and public reporting methods, and invited community members with financial expertise to take an expanded role in advising and scrutinizing district finances.
I remain confident in the direction we are headed and I am fully committed to continuous improvement on behalf of our students, staff, and families.
