LOUISVILLE, Ky. (WDRB) -- Kentucky Auditor Adam Edelen will launch an investigation into the University of Louisville Foundation, WDRB has learned.
Edelen spokeswoman Stephenie Hoelscher declined to comment, saying an announcement regarding the issue would come tomorrow.
In April, U of L trustee Steve Wilson called on Edelen's office to look into the university and the $1.1 billion foundation, saying “various events - too numerous to list - have led me to be concerned about fulfilling my fiduciary and statutory responsibilities as a Board member.”
The issues first came to light in February when reporters noticed a publicly available tax form from the $1.1 billion foundation showing that Ramsey and two other top U of L executives received million-dollar payouts in 2012, mainly due to the vesting of compensation that had been “deferred” as an incentive for the executives to remain in their jobs.
In a pair of stories in April, WDRB reported that some of the “deferred” payments were not sequestered from the executives all that long, including one case in which Ramsey's chief of staff received an extra $53,587 that vested the next day; that two administrators were at times paid by a separate nonprofit organized by the foundation; and the foundation's former vice chairman received a six-figure no-bid consulting contract from the foundation shortly after leaving the board.
U of L President James Ramsey was
, saying they implied a lack of trust in his leadership.
WDRB has learned that Edelen's review will not attempt to verify the thousands of expenditures made by the $1.1 billion foundation. It will instead focus on oversight and management issues with the foundation and board of trustees.
While trustees are appointed by the governor, the foundation directors choose whom to appoint to their board. Despite the separation, Ramsey has insisted that pay arrangements from the foundation are not done in secret, but with the knowledge and approval of the trustees.
Tim Mulloy, a spokesman for the U of L Foundation, had no immediate comment on Thursday.