Fayette County Public Schools (FCPS) is grappling with significant financial and leadership challenges. Over the past year, the district has allocated more than $269,000 to audits and investigations, aiming to uncover the roots of its financial turmoil. The district’s budgeting process has been found to be in disarray, with finances misstated for decades. These revelations have led to substantial budget cuts and personnel reductions, including the elimination of 120 positions.
The financial issues came to light after the district discovered a $16 million shortfall and a rapidly depleting contingency fund. The district has since hired several firms to conduct audits and investigations, with more financial scrutiny on the horizon. Meanwhile, the district’s superintendent, Demetrus Liggins, has been placed on paid administrative leave, adding to the leadership uncertainty.
The Financial Audits and Investigations
FCPS has engaged multiple firms to conduct audits and investigations into its financial practices. The district has already spent $269,605 on three audits or special investigations, with two more pending. The initial contract with Weaver and Tidwell, a Texas-based firm, was for $121,560 but the complexity of the audit led to an additional $35,000 allocation, bringing the total to $156,560.
The district also hired Tueth Keeney Cooper Mohan Jackstadt P.C., a Missouri-based law firm, to review its budgeting and other practices. This review, completed in March, identified systemic failures in financial forecasting and unauthorized use of the contingency fund. The review cost the district $75,220.
The VanAntwerp Investigation
In February 2026, a report by VanAntwerp Attorneys criticized Superintendent Liggins for not delving deeper into the district’s financial situation by May 2026. The report highlighted the lack of an effective budgeting process and adequate personnel to monitor expenses. This investigation cost the district $37,825.80.
VanAntwerp Attorneys was also hired in June to investigate Liggins’ conduct after he was placed on paid administrative leave. The firm will bill the district $200 per hour for lawyers and $100 for paralegals, with additional charges for travel and other expenses. The district has not disclosed the reasons for Liggins’ leave.
The State Auditor’s Examination
State Auditor Allison Ball is conducting a special examination of FCPS, and the district will be charged for this audit. Initially, Ball’s office intended to ask the General Assembly to cover the costs but changed course after discovering that FCPS was also hiring a firm for a duplicative audit. Ball’s spokeswoman, Olivia McKown, stated that it would not be fair to ask Kentucky taxpayers outside of FCPS to foot the bill, given that the district can afford the audit.
The cost of the state audit is yet to be determined. The district has budgeted $350,000 for audits in the current fiscal year, which began on July 1.
The Former Budget Director’s Legal Battle
Adding to the district’s challenges, Ann Sampson-Grimes, the former executive director of budget and financial planning, has filed a lawsuit seeking reinstatement to her previous position. Grimes claims that her reassignment to a lower-paid technical engineer role was an illegal demotion and an act of retaliation for raising concerns about possible fraud, waste, and mismanagement of school funds.
Grimes argues that Kentucky law required the district to provide a written explanation and a hearing before removing her from her executive director position. She received neither. Her motion seeks an emergency order to reinstate her before her former position is filled.
The district is already advertising her former position, and Grimes warns that the district’s actions could lead to further legal complications.
