By Kyeland Jackson —

U of L’s Board of Trustees officially appointed Neville Pinto as acting president Thursday.

Pinto receives a $655,000 salary – a minimum $480,000 base academic salary and stipend of $175,000. Compensation packages resembling former president James Ramsey’s contract were not included.

While Pinto willingly stepped into the position, he does not plan to be U of L’s permanent president or step back into his interim provost role once a president is chosen.

“I feel it’s important that we have a fresh start,” Pinto said. “Yes, I could go back to the provost position, but I feel like with a new president, it’s important to have a clean and fresh start so he or she can establish who they would like to be as provost.”

Instead, Pinto plans return to work as a tenured professor of chemical engineering and dean of the Speed School of Engineering. If he returns to the dean position, Pinto’s current contract guarantees him a five-year term as dean, an academic base salary no less than $480,000 and a stipend of at least $60,000.

Board removes threat of litigation

Board of trustees 10/13

Board of Trustees meeting

The board of trustees voted unanimously to rescind the litigation threat against the foundation, edging U of L away from a legal battle with it’s own endowment manager. Board of trustees chair Larry Benz said relations between the organizations has been positive.

“We are working hand and glove with the foundation. We are completely aligned with them,” Benz said after the board meeting.

The threat of a lawsuit was handed to ULF on Sept. 9, days after two major university donors threatened to pull more than $75 million in funding. The donors cited questionable financial deals by the foundation, demanding a forensic auditor investigate the $655 million endowment manager. Days later, Benz issued a list of demands the foundation must abide by to avoid suit.

He demanded the foundation: ask its chair to step down, fire James Ramsey, place Kathleen Smith on paid leave, create an audit oversight committee, hand over documents detailing a $38 million loan U of L made to ULF and conduct a forensic audit of the foundation. So far, nearly all demands are met.

“The foundation’s beholden to the university. The mission of the foundation is to the benefit of the University of Louisville and, in particular, our students, our faculty and staff,” Benz said.

Stadium expansion discussed

Thursday’s meeting discussed plans for the expansion of Papa John’s Cardinal Stadium as well.

Chief Financial Officer Harlan Sands asked the board allow up to $91.15 million in new bonds, paying the stadium expansion and outstanding mortgage revenue bonds owed to the city since 2008. The bonds, essentially interest-rate loans from a bank, will bundle financial promises from the university, ULF and the University of Louisville Athletics Association. The estimated $55 million stadium expansion will be funded through general receipt bonds.

“From a financial standpoint, we thought it made sense to roll these (university, ULF and ULAA financial obligations) together,” Sands said.

While coupling the organization’s financial obligations minimizes the university’s burden, problems could flare if ULAA does not honor it’s stake in the debt. Sands said he’s confident ULAA, who would fund their portion through ticket and bond sales, will fulfill their financial obligations.

“Athletics is making a commitment to finance this, and their commitment is to finance it from their resources,” Sands said after issuing the proposal.

The resolution will retire a $36.2 million debt owed to the city, and save an estimated $2.2 million in refunded bonds and an annual $207,000 from the annual debt service. A bid will go out for banks to issue the bond on Dec. 6, potentially fixing bond issues by Dec. 27.

Joint audit oversight committee meets

The joint audit oversight committee, created in response to Benz’s demands, held their first meeting to discuss selecting a forensic auditing firm.

Bid day for the firms ended yesterday, resulting in 10 finalists which the committee will begin processing. Firms were evaluated based on cost, experience and qualifications, timeline, method and references.

While she praised some of the firms on the list, Committee Chair Diane Medley called Sand’s schedule “ambitious.” The timeline estimates finalists among the 10 will be picked by next week, with a final firm selected and working by Nov. 15. Conflicts of interest could be an issue for some on the committee, whose businesses associate with the potential firms.

“We need to be free and clear of any real and perceived conflicts that any board members have with any of these firms. I think it’s critical to the process,” Sands said.

The committee meets again next week.

Photo by Rachel Trimble / The Louisville Cardinal