University of Louisville hires outside auditor

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Associated Press

Posted on September 14, 2013 at 10:01 AM

LOUISVILLE, Ky. (AP) — University of Louisville trustees have hired an outside auditor after having multiple cases of employees accused of stealing or misusing funds.

The Courier-Journal (http://cjky.it/15psQOl ) reports the board took the action Thursday in an effort to protect the school's finances. The auditor will review internal audits going back to 2007 and financial policies at the health science campus.

The action comes on the heels of Perry "Chad" Vaughn, who oversaw business affairs for the Department of Family & Geriatric Medicine, being accused of stealing as much as $2 million. Vaughn has not been charged criminally, but federal court documents detail an investigation of him.

His attorney, John Olash, said it could be a while before charges are brought because the government is conducting an extensive forensic review of Vaughn's bank records.

The case is one of several involving university employees who have been accused of stealing, misspending or mishandling $7.6 million since 2008.

"If somebody is determined to steal, it's very hard to prevent that from happening, but we're going to put more checks and balances in place," said Dr. David Dunn, U of L's vice president of health affairs.

U of L President James Ramsey said the outside auditor will concentrate on private medical practices associated with U of L but also will look at other areas of the university.

In addition, the university plans additional training for those authorized to sign university checks, and it intends to bring all finance operations under a central financial "service center."

"We're going to have them (auditors) look at our bank accounts, we're going to also begin to move forward as quickly as possible ... to a centralized financial management program," Ramsey said.

The new financial oversight system will include spot audits.

"We're going to use the external firm to help do some surprise audits, which we haven't had the staff to do before. We're going to look at the entire university," he said.

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Information from: The Courier-Journal, http://www.courier-journal.com

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