Investigation finds FCPS superintendent failed to fully inform board on finances, report says

LEXINGTON, Ky. (ABC36 NEWS NOW) — An independent investigation into financial management issues at Fayette County Public Schools concludes that Superintendent Demetrus Liggins failed to fully meet his obligations to keep the school board informed about emerging financial risks — while also resolving and largely rejecting allegations raised by former district budget official Ann Sampson Grimes.

The findings are detailed in a 13-page report delivered Monday to the Fayette County Board of Education by attorney Leigh Gross Latherow of VanAntwerp Attorneys, LLP, who was retained by the board to conduct an independent review

Findings on superintendent oversight

According to the report, there was sufficient evidence to conclude that Liggins did not fully comply with board policies governing his role as superintendent — specifically those related to financial oversight, budget planning, and keeping the board appropriately informed.

The investigator found that as early as spring 2025, warning signs existed related to a projected $16 million shortfall in the district’s tentative budget. While finance staff repeatedly said final fund balance numbers could not be confirmed until later in the year, the report states board policy still required Liggins to take a more proactive role.

That included demanding clearer financial information, ensuring the finance and budget departments were communicating effectively, and making sure accurate and timely data reached board members. The report concludes those steps did not happen early enough.

However, the investigation did not find evidence that Liggins intentionally withheld information from the board or knowingly violated the district’s 6% contingency policy.

Resolution of Ann Sampson Grimes’ allegations

The investigation also addressed a series of allegations raised by former district budget director Ann Sampson Grimes, including claims of financial misconduct, retaliation, and sex and age discrimination.

The report found:

• No evidence that Grimes was silenced or prevented from sharing financial concerns with the board. Investigators concluded board members were informed of the projected budget shortfall, regardless of whether it was labeled a “deficit,” “gap,” or “difference.”

• No substantiation that Liggins violated board policy by canceling meetings or refusing to engage with Grimes on budget matters.

• No evidence supporting Grimes’ claims of sex or age discrimination related to organizational changes, role assignments, or leadership restructuring.

• No substantiation that Grimes was placed on administrative leave as retaliation or because of her gender or age. The report says the leave was tied to questions surrounding whether key financial projections had been shared with leadership and the board.

The investigator also noted that Grimes declined repeated requests to be interviewed during the investigation, which limited the ability to further evaluate some of her claims. While written materials were reviewed, the report states her refusal to participate impeded parts of the fact-finding process.

Overall, the report concludes that Grimes’ allegations of discrimination, retaliation, and intentional concealment of financial information were not supported by the evidence.

Acknowledgment and next steps

In testimony before lawmakers last fall, Liggins acknowledged flaws in the budgeting process, saying some criticism was warranted and admitting he did not dig deeply enough into the causes of the shortfall. According to the report, he told legislators he wished he had done more and recognized that responsibility ultimately rested with him.

The report notes that since those events, Liggins has taken steps to improve communication between the finance and budget departments, strengthen forecasting, and enhance the quality of financial information provided to the board.

The investigator emphasized that the review was not a forensic audit and did not assess specific spending decisions. Instead, it focused on whether board policies were followed and whether the superintendent fulfilled his oversight responsibilities.

No disciplinary action was recommended. Any further action now rests with the Fayette County Board of Education.

Media Statement from Superintendent Dr. Demetrus Liggins

“This report confirms what I have shared with our community on multiple occasions. As superintendent, I relied too heavily on the leaders and team working in the area of budget and finance every day when I should have been asking sharper questions and demanding more comprehensive detail.

As superintendent, the buck stops with me. It is my responsibility to ensure the fiscal health of the district and stewardship of the dollars our taxpayers invest in the education of our children. I take that obligation seriously, acknowledge that I previously fell short in aspects of budget and finance oversight, and commit to ensuring full alignment with board policy and the board governance manual moving forward.

I take full responsibility and recognize the obligation I owe to the members of the Fayette County Board of Education, and to our students, staff, families, and community. My leadership had been intentionally centered on student outcomes, academic growth and the overall health of our school system. While those priorities guided my focus, I regret that I was not more hands-on in the day-to-day operations of budget and finance.

I believe strongly in leading with both accountability and humility. When we identify areas where we must improve, we do not deflect, we act. Our community deserves clarity, accuracy, and a superintendent who is willing to own challenges and take decisive action to move forward.

As such, in August, I assumed direct oversight of the finance and budget departments and have been actively involved on a daily basis. Over the past six months, I have sought to identify exactly what went wrong and taken decisive action to ensure it never happens again. Already I have implemented multiple changes where needed to strengthen internal communication, oversight, and reporting. Additional structural changes are forthcoming that will further reinforce openness and accountability.

I welcome the results of the additional reviews currently underway which will examine our budget and finance structures in greater depth, and I look forward to sharing more specific information as those reviews are completed. More important than any statement I can make are the actions I have taken. I recognize that confidence has been shaken for some in our community and I continue to take concrete steps to address those concerns.

FCPS is currently operating under a balanced budget with a $27 million contingency fund, well above state requirements. Our recent annual audit confirmed that we have sound financial practices and fiscal integrity. We have improved our analysis, forecasting, and public reporting methods, and invited community members with financial expertise to take an expanded role in advising and scrutinizing district finances.

I remain confident in the direction we are headed and fully committed to continuous improvement on behalf of our students, staff, and families.”

From Board Chair (on behalf of Board), following Feb. 9 closed session.

“The Board has received the findings of the investigation into allegations directed against Superintendent Liggins. We’d like to thank Leigh Latherow for conducting this thorough investigation.

We recognize the FCPS community’s interest in this matter. Given the seriousness of the matter and the importance of ensuring a fair and thorough process, the Board will carefully consider the investigation findings and anticipates making a determination on appropriate corrective measures in the coming weeks.

We are committed to making FCPS a community where all students can succeed. Meeting this goal is not just about what happens in the classroom but how the resources entrusted to the school district are managed.”

Superintendent Liggins shared the following statement with FCPS staff today (February 9, 2026).

“Dear Team FCPS:

When we fall short, true leaders accept responsibility, take ownership of the challenge, and choose action over deflection. Today is one of those days.

After the budget and finance issues our district faced this summer, the Fayette County Board of Education voted to have an independent investigator look into allegations regarding my handling of budget and finance matters. I welcomed the investigation and now am letting you know that the report was released this afternoon. I have attached it to this email so that you can read it yourself.

In short, the report confirms what I have shared with our community on multiple occasions. As superintendent, I relied too heavily on the leaders and teams working in the area of budget and finance every day when I should have been asking sharper questions and demanding more comprehensive detail.

As superintendent, the buck stops with me. It is my responsibility to ensure the fiscal health of the district and stewardship of the dollars our taxpayers invest in the education of our children. The obligations I owe to the members of the Fayette County Board of Education, and to our students, staff, families, and community are spelled out in board policy, and I regret that I was not more hands-on in the day-to-day operations of budget and finance.

Although most of the allegations were not substantiated, and the report acknowledges that I did not intentionally break board policy, I take full responsibility and commit to ensuring full alignment with board policy and the board governance manual moving forward.

In July, I combined the budget and finance departments, which had operated separately for over a decade. In August, I assumed direct oversight of the finance and budget departments. Today, I am actively involved on a daily basis in our district’s finances and budgeting operations. Over the past six months, I have sought to identify areas of weakness and taken decisive action to strengthen internal communication, oversight, and reporting. Additional structural changes are forthcoming to further reinforce openness and accountability.

There are more reviews currently underway to examine our budget and finance structures in greater depth, and I will continue to share information as those reviews are completed. More important than anything I can say are the actions I have taken. I recognize that confidence has been shaken for some in our community and I continue to take concrete steps to address those concerns.

FCPS is currently operating under a balanced budget with a $27 million contingency fund, well above state requirements. Our recent annual audit confirmed that we have sound financial practices and fiscal integrity. We have improved our analysis, forecasting, and public reporting methods, and invited community members with financial expertise to take an expanded role in advising and scrutinizing district finances.

I remain confident in the direction we are headed and I am fully committed to continuous improvement on behalf of our students, staff, and families.”