FCPS Receives 5th Perfect Audit

Fayette County Public Schools has earned a perfect external audit for a fifth straight year, underscoring the district’s commitment to financial transparency, accountability, and excellence.

Conducted by one of the nation’s top accounting firms, the independent external review took more than five months to complete. Representatives from LBMC presented their conclusions to the Fayette County Board of Education this month, delivering an unmodified opinion with no management comments or findings.

“For a district of your size to receive an audit with no findings for that many years speaks volumes to the work that your finance team is doing,” said Eydie Tate, chief financial officer for Hopkins County Schools and president of the Kentucky Association of School Business Officials. 

Data from the Kentucky Department of Education shows only 25 school districts in the Commonwealth achieved that distinction in 2023.

“These results should tell your community that Fayette County is doing what they’re supposed to do – investing in your most valuable assets – your children,” Tate said.

An external school district audit is a rigorous, objective, systematic review of financial records, transactions, and internal controls to identify any financial irregularities or lack of compliance. It ensures that all revenue and expenditures are properly accounted for and aligned with Generally Accepted Accounting Principles set by the Governmental Accounting Standards Board.

Fayette County Public Schools undergoes three comprehensive audits annually:

• Districtwide Financial Audit
• Grants Federal Audit
• School Activity Funds Audit

The reviews assess how funds are allocated, spent, and managed, as well as the district’s adherence to accounting standards. Achieving a perfect audit for five consecutive years is an exceptional feat, particularly for a district of FCPS’s size.

“This is very rare,” said Rodney Jackson, executive director of Financial Accounting & Benefits Services. “Everyone from the accounting specialist to the executive director has to fulfill their responsibilities with integrity and attention to detail. It’s not just one person – it’s ‘we.’”

The district’s impeccable audit record has tangible benefits:

• Trust and transparency: Taxpayers can have confidence in how their funds are managed.
• Operational strength: The absence of findings reflects robust internal controls and sound financial practices.
• Future opportunities: A "low-risk auditee" designation improves grant opportunities and interest rates, maximizing resources for student success.

“As public educators funded by taxpayer dollars, we hold ourselves to the highest standard of accountability,” said Superintendent Demetrus Liggins. “This achievement assures our community that we are managing their investment responsibly and serves as a testament to the district’s dedication to safeguard taxpayer dollars and comply with state, federal, and local regulations.”

To provide another layer of accountability, FCPS has an audit committee composed of community representatives to work with the external auditing firm and the district’s internal auditor. 

The addition of an internal auditor position has strengthened the district’s ability to monitor and manage risks and ensure the effectiveness of processes and controls, said audit committee member Dave Osborne, who worked for 31 years as an internal auditor for Ashland and teaches managerial accounting at Georgetown College.

“FCPS is in great shape. Assets are properly safeguarded, investments are properly managed, and tax dollars are properly spent,” he said. “These people are rock solid. They know their stuff, and they want to be sure things are being done right.”