Private donors to cover most of $2.2 million forensic report on - WDRB 41 Louisville News

Private donors to cover most of $2.2 million forensic report on U of L Foundation

Posted: Updated:

LOUISVILLE, Ky. (WDRB) --  The University of Louisville said Tuesday that two charitable foundations will cover nearly all of the $2.2 million cost of the forensic investigation of the U of L Foundation.

The James Graham Brown Foundation and the C.E. & S. Foundation will each donate $1 million to defray the cost of the investigation – a probe both organizations called for last year.

Chicago consulting firm Alvarez & Marsal produced a 269-page report on June 8 documenting over $100 million in over-spending and potential losses to U of L’s endowment resulting from the U of L Foundation’s management in the final years of former U of L President James Ramsey’s tenure.

An attorney working for the U of L board of trustees has pegged the losses at $40 million to $100 million.

Alvarez & Marsal began its investigation – commonly called an audit, though the firm did not perform the work to auditing standards – in the fall of 2016 under an $897,000 contract.

U of L’s trustees have increased the contract twice – most recently by $400,000 for vaguely defined follow-up work on the report after its release.

U of L’s contract documentation says only that the $400,000 is for “providing support services” to university attorneys working on matters related to the foundation.

Trustees Chairman J. David Grissom told WDRB last month that the additional $400,000 is for “loose ends” on the A&M report that need to be addressed. He declined to comment further.

The board of trustees has been weighing whether to sue Ramsey and other former officers or board members of the foundation to recoup some of the losses, but has not yet decided.

The board has scheduled a meeting Thursday to receive the recommendations its attorneys as to “what steps, if any, should be taken” in response to the June 8 forensic report, Grissom said last month.

Grissom said the board likely won’t make decisions on Thursday but in the coming weeks.

Mason Rummel, president and CEO of the James Graham Brown Foundation, said in a press release that her organization’s donation signals its “support and appreciation of the hard work and commitment the university’s Board of Trustees has shown in the continued improvement of this important institution.”

Humana Inc. co-founder David Jones Sr., president of the C.E. & S. Foundation, said the Alvarez & Marsal report was “needed to restore the community’s faith in and support of the university and its foundation.”

Jones said his family foundation “hopes to ensure that the university can conclude its thorough investigation without creating a burden for Kentucky’s taxpayers.”

Reach reporter Chris Otts at 502-585-0822, cotts@wdrb.com, on Twitter or on Facebook. Copyright 2017 WDRB News. All rights reserved.

Powered by Frankly
All content © Copyright 2000 - 2017 WDRB. All Rights Reserved. For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.