U of L hiring auditor after alleged embezzlement - WDRB 41 Louisville News

U of L hiring auditor after alleged embezzlement

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LOUISVILLE, Ky. (WDRB) -- One week after a department head is accused of embezzling millions of dollars, the University of Louisville is taking steps to ensure the safety of the school's finances.

Perry Chad Vaughn is accused of writing checks to himself from several medical practices linked to the school for amounts exceeding $2 million over the past six years.

"Where we caught him is when he took money from the university and deposited it into the non-university account," said U of L President James Ramsey.

The University fired Vaughn for allegedly using the school's money to purchase half-million dollar homes, several expensive cars and elaborate vacations.

"When I hear about this it's unfathomable quite frankly," said David Dunn, executive vice president of Health Affairs.

'We have 6,000 employees and we wish that everyone did what was right but sometimes that doesn't happen," Ramsey said.

The U of L school board of trustees put a plan in place to secure its finances, and prevent this from happening again.

"We're going to go back and look at every internal audit that's been done since 2007 to make sure that the recommendations of the internal auditor have been implemented and followed up on," Ramsey said.

When asked if hiring an external CPA would be enough to secure finances, Ramsey responded, "Well we need someone to come in and help us look at all of this and to review it."

"One of the things we are significantly changing is that U of L will have the ability to create an all funds budget that is health science center wide plus U of L physicians," Dunn said.

U of L says that creates more transparency by consolidating budgets.

The University will also ask the CPA firm to survey banks within a 50-mile radius to ensure no unauthorized accounts exist in U of L's name.

"You can't always prevent somebody from stealing, but this will put a lot more checks and balances in place," Dunn said.

Vaughn has not been charged criminally in the matter.

 

WDRB reached out to his lawyer, but did not hear back from him.

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