LEXINGTON, Ky. — The Fayette County Board of Education heard findings from an independent audit on Aug. 3 that identified significant control weaknesses in the district’s financial management, according to a summary from the school district. The audit, conducted by Texas-based accounting firm We aver, L.L.P., detailed past control gaps, outdated policies, and financial governance challenges. The firm made over 70 recommendations to strengthen budgeting and spending controls, grouped into six core themes including documentation gaps, policy deficiencies, and oversight weaknesses. The audit focused on three primary areas: budget process review, travel and event expense review, and data-driven risk and variance analysis. The district’s general fund ended fiscal year 2025 with approximately 1% reserve, below both the 2% state minimum and the district’s own 6% policy guideline. Interim Chief Financial Officer Kyna Koch and the finance team have already begun implementing corrections identified in the audit. Weaver recommended restoring the contingency fund to at least the 2% statutory minimum and rebuilding toward the 6% district procedure via a board-approved plan. Board Chair Tyler Murphy pledged immediate action. “Now that we have this picture, we will not consider this finished until every corrective step is in place and made public,” Murphy said in a statement. “We are committed to working with district staff to develop and implement a full corrective action plan and timeline with regular public status reports.” The audit comes as the district faces a projected deficit for fiscal year 2026 after spending $10 million more than its $700 million projected revenue. The board presented only 10 of the 70 total recommendations during the meeting, with the remaining recommendations to guide future policy changes. Sources Fayette County Public Schools LEX 18 — Audit firm releases findings WKYT — Financial deficit report This article was generated by AI (claude-haiku-4-5-20251001) based on source material from Fayette County Public Schools, enriched with 2 web searches. The original source is available at https://www.fcps.net/post-details/~board/fayette-county-public-schools-news/post/board-buzz-auditors-tag-key-problems. View in feeds The post FCPS Board Hears Audit Findings on Budget Control Failures appeared first on The Lexington Times. ...read more read less