University of Louisville Foundation forms group to study audit findings
The chairwoman of the University of Louisville Foundation said “further investigation” is needed before the foundation board decides whether to pursue litigation based on the findings of a blistering forensic investigation released last week.
LOUISVILLE, Ky. (WDRB) -- The chairwoman of the University of Louisville Foundation said “further investigation” is needed before the foundation board decides whether to pursue litigation based on the findings of a blistering forensic investigation of the organization released last week.
The report detailed how, from 2010-2016, the foundation depleted U of L’s endowment by over-spending, including a $22 million in extra compensation for administrators, and with internal loans that are unlikely to be repaid.
Completed by Chicago firm Alvarez & Marsal, the report is expected to cost the university up to $1.7 million. It analyzed how the administration of former U of L President James Ramsey managed the foundation.
After two hours of discussion behind closed doors Wednesday, foundation chairwoman Diane Medley said the board would create an ad hoc committee to determine potential responses to the report’s findings, including litigation.
“There is a lot of information in there that requires further investigation, further analysis,” Medley said. “The report goes a long way to leading us down the path of where we need to look, which we very much appreciate, but there is more work that needs to be done.”
Medley said she has no reason to doubt the report’s “very thorough” findings, but the foundation board wants to independently confirm “certain actions that people took” by reviewing documentation rather than relying on A&M’s interpretation.
“We do not want to go out and instigate any kind of litigation ourselves that is not thought out, that is not accurate,” she said.
The university’s board of trustees is also looking at litigation as a result of the report and is expected to discuss that behind closed doors on Thursday.
Medley, who is also a trustee, said it’s too soon to say whether the university and foundation would pursue any case together or independently.
It’s also possible that the foundation, a charitable nonprofit organization, is the target of litigation as result of the report, foundation attorney Franklin Jelsma said Wednesday. He did not elaborate.
Meanwhile, Medley did little to clarify foundation chief financial officer Jason Tomlinson’s status with the organization.
The foundation said last week that Tomlinson was on “paid leave,” which Medley said was “mutually agreed upon.”
Tomlinson’s attorney, Don Cox, said his client is on vacation and has not been told of any change in his employment status.
Asked if Tomlinson is an employee in good standing, Medley said, “at this point.”