State auditor plans to petition the legislature for covering the costs of a comprehensive review of FCPS (Fayette County Public Schools)
The Fayette County Public Schools (FCPS) is set to undergo a special examination by Kentucky Auditor Allison Ball's office, following allegations of financial irregularities within the district.
According to Hannah Wall, spokesperson for Ball, the rate of $84 an hour for the special examination has not been increased in many years. This examination was initiated following Kentucky Attorney General Russell Coleman's announcement that the school board unlawfully tried to raise an occupational tax increase at its May 27, 2025 meeting.
Ball's office is requesting a wide range of documents, including policies, school board minutes, the pay classification plan, contracts, Annual Budget and Year-End Budget to Actual reports for each year, and banking information. The office is also seeking unrestricted access to current and former employees who might have evidence.
The special examination is likely one of multiple reviews of FCPS finances amid the district's budget crisis, which includes a $16 million budget shortfall and a dwindling carry-forward balance in the budget that began July 1, 2025.
On Tuesday night, the Fayette school district's audit committee, composed of five voting members who are not district employees and have expertise in finance, will consider the scope of the independent examination sought by board members. The audit committee will help create a request for proposals and make recommendations on the cost and time frame of the independent examination.
The state auditor's office will conduct a limited-scope special examination of FCPS to address concerns regarding certain activities. The objective of the examination is to review a specific matter brought to the auditor's attention, not to provide an opinion on financial statements. This approach is similar to what was done with Jefferson County Public Schools last biennium, as stated by Wall.
The initial scope of the examination covers the period of July 1, 2022, through June 30, 2025, but may vary depending on available documentation and data. The duration of the FCPS examination is not yet estimated, but the goal is to provide a detailed accounting of FCPS's expenditures, according to Wall.
In a bid to ease the financial burden on Fayette County Public Schools (FCPS), Ball's office intends to ask the General Assembly to provide an appropriation for the examination. State legislators provided money for the Jefferson County Public Schools special examination, as mentioned by Wall.
The proposed working budget on the school board's Sept. 22 agenda is $827.2 million. The search results do not provide information about who made the decision in 2025 to conduct a special investigation by Kentucky Auditor Allison Ball into financial issues within FCPS.
The state law mandates that the state auditor has access to and may examine all books, accounts, reports, vouchers, correspondence files, records, money, and property of FCPS. The special examination by Ball's office will perform tests and procedures to determine compliance with policies and procedures, laws, regulations, contracts, and agreements.
This news comes as a significant step towards addressing the financial challenges faced by FCPS and ensuring transparency and accountability in the district's operations. More updates are expected as the examination progresses.
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