University of Louisville faces new accreditation problems relate - WDRB 41 Louisville News

University of Louisville faces new accreditation problems related to nonprofit foundation

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University of Louisville Belknap Campus University of Louisville Belknap Campus
Dr. Gregory Postel, interim president of the University of Louisville Dr. Gregory Postel, interim president of the University of Louisville

LOUISVILLE, Ky. (WDRB) --  Already on probation with its accrediting agency, the University of Louisville now faces additional accreditation problems related to financial issues associated with its nonprofit foundation.

In a letter dated Jan. 27, the university’s accrediting agency -- the Southern Association of Colleges and Schools Commission on Colleges – raised fresh concerns about the university’s compliance with its standards after reviewing State Auditor Mike Harmon’s examination of the foundation, which was released in December.

U of L is already trying to work its way off probationary status with SACS stemming from Gov. Matt Bevin’s attempt to unilaterally replace the board of trustees and his involvement in securing former President James Ramsey’s resignation last summer.

In a campus-wide email sent Friday morning, U of L interim President Greg Postel said it was “important to note” that U of L sent Harmon’s report to SACS.

“The administration, the Board of Trustees and Foundation Board all have committed to addressing issues that have arisen in recent months,” Postel said. “We will do so openly, keeping the university community posted on our activities.”

SACS said Harmon’s report raises questions about the foundation’s employment of some university administrators outside U of L’s human resources system; about whether the relationship between the university and the foundation is clearly spelled out; and about $67 million in loans that Ramsey gave the foundation, of which he was also president, using university cash without approval of either organization’s board.

SACS asked U of L to respond to its concerns in writing by March 3.

A special committee of the agency is already set to visit the university in the fall to evaluate the board governance issues that originally led to U of L’s probation.

In the Jan. 27 letter, SACS Commission on Colleges President Belle Wheelan said the foundation issues may be added to the special committee’s scope.

A spokeswoman for the SACS Commission on Colleges did not immediately return a call Friday.

A copy of the Jan. 27 letter is below:

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