Audit on UofL Foundation released

UofL Foundation forensic audit released

LOUISVILLE (WHAS11) -- A lengthy forensic audit was released on the University of Louisville  Foundation Thursday.

Some of the major points: millions of dollars from the foundation were paid to the athletic department, including Athletic Director Tom Jurich's son Mark, who was on the foundation payroll.

It also outlines numerous concerns including IT "erasing and re-purposing" former president James Ramsey's computer hard drive before auditors could get their hands on it.

The forensic audit was poured over by the UofL Board of Trustees for nearly four hours. 

Click here to read the audit. 

Final AUDIT Report 6.8.17

Statement of University of Louisville Foundation Chairwoman Diane Medley Regarding the Release of the Forensic Audit:

“I am going to take some time to digest what I’ve read before making substantive comments about the findings. But I would point to the myriad changes we have undertaken at the Foundation over the last few months as evidence that things have already changed for the better, particularly in terms of governance, financial management, and overall transparency. Along with the new board and the Foundation’s executive director Keith Sherman, we as a team have worked hard to get this Foundation back to a place where it can fulfill its vital work – to support the academic mission of the University of Louisville.”

Statement from UofL’s Interim President Greg Postel on the released audit:

“As Grissom has stated, this audit reflects activity that happened under a previous administration and a previous Foundation board. This report should answer many questions about the past and close the door on a sad chapter in the university’s history.

As I have said once I took this position in January, I am committed to being transparent and to operating above board. I also am committed—and think our recent action confirm this—to returning this university to solid financial footing. The steps we are currently taking will position us well for the future.
I think it’s important to note that, while this audit and media coverage over the past months had been a distraction, it has not taken away from the outstanding education our students are getting at the University of Louisville. This is a tribute to those students and to the hard-working 
faculty and staff who have made sure all of us are keeping our focus on the students.

Our students, faculty, and staff are looking forward. I’m asking all our alumni, donors and friends to do the same. Let’s work together to continue our mission to make the University of Louisville the best metropolitan university in the United States.”

The forensic audit was expected to reveal the extent of former president Jim Ramsey's spending and money transfers toward the end of his tenure.

Ramsey set it all up so he could run both the university and the foundation. The audit began investigation began six months ago.

The fallout from the bad PR has hurt donations. Ramsey's attorney says he may have a statement on the findings. 

The university's interim president stressed on Wednesday the audit will be reviewing a period of time before recent changes were implemented. Changes like the school's administration, trustees board and Foundation Board of Directors and administration. 

The following is Wednesday's letter from UofL’s interim president on the audit:


"Friends and colleagues,

Tomorrow the University of Louisville Board of Trustees will receive the forensic audit of the UofL Foundation that has been conducted by Alvarez and Marsal. We look forward to seeing the audit, and we will share it with the UofL community immediately following the board meeting.

It’s important to remember that the audit covers the period before the recent changes in the University administration, the Board of Trustees and the Foundation Board of Directors and administration. Since the audit was launched in December 2016, the Foundation has taken many steps to improve its operation and to ensure more transparency in its activities. Those changes include:

• Ending the deferred compensation plan for future UofL executives
• Prohibiting the University president from serving as Foundation president
• Complying with Kentucky’s open records law and responding to open records requests in a timely manner
• Updating the Foundation website with clear financial information
• Establishing a line-item budget with actual expenses matching actual revenues
• Implementing new policies regarding gift agreements to ensure donations are spent according to donors’ wishes and unspent funds don’t get mixed with endowment funds
• Adopting new travel, entertainment and expense policies
• Appointing 12 new ULF board members

Along with these changes, the audit should help us close the door on the previous chapter for both the University and the Foundation.

I want to thank our faculty, staff and students for continuing to focus on our outstanding academic programs. And I look forward to working with you in the future to maintain the positive momentum we have built toward our ultimate goal of becoming one of America’s premier metropolitan research universities.

Again, we will share the audit with all of you immediately following tomorrow’s Board of Trustees meeting.

Thanks for your support. And best wishes,

Gregory C. Postel, MD
Interim President | University of Louisville"


RELATED:

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UofL Foundation audit nearing final stages

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UofL Foundation meets to discuss audit


 

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