FCPS seeks loan after audits reveal years of misstated finances

LEXINGTON, Ky. — Fayette County Public Schools will seek a short-term loan to cover expenditures after preliminary audits revealed the district's finances have been significantly misstated for years, Superintendent Demetrus Liggins announced, according to LEX 18 News.

Liggins said the school board will be asked in May to approve a short-term loan to bridge cash flow gaps until property tax revenues arrive in the fall. The superintendent attributed the borrowing need to inaccurate cash flow information that was previously provided to district leadership.

"If the findings are confirmed in the final reports, the ramifications will be significant and long-term," Liggins said during an April update.

The superintendent took direct oversight of the district's financial operations in August 2025, triggering a broader review of the system's accounting practices. Two external reviews have already been completed and shared publicly, while an interim chief financial officer was hired in March to examine internal processes.

Two additional investigations are currently underway. The school board engaged the accounting firm Weaver and Tidwell to conduct a comprehensive financial review, while the state's Auditor of Public Accounts is performing a special examination of district finances.

Preliminary findings suggest that FCPS finances have been misstated for multiple years, that the district may not have followed numerous federal and state requirements, and that accounting procedures may not have aligned with accepted practices, Liggins reported.

While Liggins acknowledged he is not a certified public accountant, he said he fully supports conducting a forensic audit based on the information discovered so far. The superintendent indicated that operational improvements are already being implemented, but warned that difficult budget decisions will be necessary as the district develops its 2026-27 fiscal year proposal.

"We cannot afford to keep going the way we have been," Liggins said. He committed to sharing additional information during monthly school board meetings, media briefings, and direct communications with staff, families, and the community.