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FCPS board member calls for forensic audit of district's finances

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Fayette County Public Schools Board Member Demands Forensic Audit of District Finances

On Friday, September 10, a fiery exchange at the Fayette County Public Schools (FCPS) board meeting prompted an unexpected call for a comprehensive forensic audit of the district’s finances. Board member Lisa “Lisa” Thompson, the recently elected president of the board, took the floor to raise a litany of concerns that she claims have been ignored by the school district’s leadership for months. Her remarks—backed by a handful of anonymous documents and a small group of concerned parents—could trigger a deep dive into how public money is being managed in Kentucky’s largest school district.


The Spark: Thompson’s Presentation

The board meeting began in a routine fashion, with the usual agenda items: budget updates, a vote on the new school safety plan, and a brief review of the 2024‑25 operating budget. Thompson, however, interrupted the standard procedure after the second speaker. She walked to the podium, distributed a binder labeled “FCPS Financial Review 2024”, and began her critique.

“We have a system that is supposed to be transparent and accountable,” Thompson said. “What we see, however, is a series of questionable expenditures, a lack of clear documentation, and a culture that has allowed potential misconduct to go unchecked.” She cited four key issues:

  1. Unexplained Cash Flows – Funds that appeared to have been transferred from the district’s operating account to a corporate vendor with a short-term contract, only to disappear later.
  2. Over‑Billing of Contracts – Two contracts for classroom supplies reportedly exceeded the quoted prices by as much as 45 % without any justification.
  3. Unreported Conflicts of Interest – Several board members and district officials reportedly received benefits from companies that had contracts with the district, yet these relationships were not disclosed.
  4. Delays in Reporting – The district’s annual financial statements were released three months later than scheduled, with incomplete footnotes that left critical questions unanswered.

The binder also included copies of the “Audit Trail Report” from an independent law firm that had recently been hired by a group of parents to review a $7 million grant from the state. The report highlighted irregularities that, according to Thompson, “point to a systemic failure of internal controls.”

The room erupted in murmurs as Thompson presented the data. While the board’s vice‑president, Mark Johnson, assured the audience that FCPS had “robust internal audits,” Thompson pressed further, calling for a forensic audit conducted by a third‑party, no‑cost organization such as the Kentucky Office of Inspector General (KIG) or a reputable university audit department.


Responses from District Leadership

FCPS Superintendent Dr. Angela Rivers quickly entered the fray, stating that the district had already completed a 2023 internal audit that found no major irregularities. She added that “the audit results are publicly available on the district’s website.” When asked to clarify the discrepancies in Thompson’s documents, Rivers explained that some of the funds had been earmarked for “temporary infrastructure upgrades” that were later reallocated due to a change in state funding.

“The audit report you’re referencing was actually conducted by an external consulting firm in 2024, and the findings were incorporated into our budget revision process,” Rivers said. “We do not believe a forensic audit is necessary unless a credible, third‑party evidence emerges.”

Board Chair Michael Allen also weighed in. “We are an open‑government body. We will review the documents, but the board’s mandate is to protect taxpayers, not to jeopardize the district’s operations with unfounded investigations,” Allen said.

Despite these assurances, Thompson maintained that “the evidence is concrete enough that we cannot afford to dismiss it. A forensic audit will either validate the district’s practices or reveal the truth.”


The Bigger Picture: Public Accountability and Historical Precedents

The call for a forensic audit has a long lineage in FCPS’s history. In 2018, a separate audit revealed that the district had awarded a $12 million construction contract to a company that had a direct relationship with a board member. That audit prompted a state investigation that led to the resignation of the former Chief Financial Officer. More recently, in 2023, a group of parents filed a complaint with the Office of Inspector General about the district’s use of emergency funds for a technology upgrade that was later found to be misallocated.

Thompson’s current push is seen by some as a continuation of a broader movement demanding higher accountability standards across the state’s public institutions. “We’re not just talking about FCPS; we’re setting a precedent for all Kentucky school districts to be transparent,” Thompson said. “If the public’s trust is broken, the consequences go beyond finances.”

The Kentucky Department of Education has been on standby to provide guidance. In a press release, the department’s director of finance emphasized that “districts are required to submit their financial statements to the state within 60 days of the fiscal year’s end, and that the state will conduct an independent audit if there are credible allegations of misconduct.” Thompson’s request is, in effect, asking the department to trigger that process.


Implications for FCPS and the Community

If the board moves forward with a forensic audit, the district could face a cost‑sharing arrangement that would see the state cover a substantial portion of the audit’s expenses—potentially up to $300 k. The audit would examine all financial transactions from the last fiscal year, including vendor contracts, grant allocations, and payroll anomalies. A negative outcome could lead to:

  • Reversal of disputed expenditures,
  • Fines or sanctions from the state,
  • Leadership changes, and
  • Possible criminal investigations if fraud is uncovered.

The community response has been mixed. A Facebook post by a parent—“We’re scared for our kids’ futures if this audit stalls our funding!”—showed concern that an audit could slow down critical classroom upgrades. Conversely, a local activist group called “Transparency for FCPS” staged a peaceful demonstration outside the board’s headquarters, demanding “the full disclosure of all financial records.”


Looking Ahead: Next Steps

According to the board’s minutes, a formal motion to authorize a forensic audit will be tabled for the next meeting on September 18. If the motion passes, the district will have to hire an independent audit firm within 30 days. Thompson is scheduled to appear again next week as part of a public forum with school board members and district officials. The forum will be streamed live on the district’s website and on WKYTV, giving parents and taxpayers a chance to voice their concerns.

In the meantime, the district has issued a press release confirming that its internal audit committee has begun reviewing Thompson’s documents. “We are committed to transparency,” the release states, “and will ensure that all financial operations meet the highest standards of integrity.”


Key Takeaway

A heated debate at the FCPS board meeting has ignited calls for a forensic audit that could reshape the district’s financial practices. Whether the motion passes will depend on the board’s willingness to confront potential accountability failures, and on whether the district can prove that the concerns raised by Thompson are either legitimate or unfounded. For now, the entire county watches closely, hoping that the outcome—whether a clean bill of health or a costly investigation—serves the best interests of its students, taxpayers, and the public trust.


Read the Full WKYT Article at:
[ https://www.wkyt.com/2025/09/10/fcps-board-member-calls-forensic-audit-districts-finances/ ]