Costs grow for audit expansion

By on July 12, 2017

By Kyeland Jackson —

The price to further investigate the University of Louisville Foundation may have doubled.

Estimates now price the audit expansion could cost up to $400,000, dwarfing Board Chair David Grissom’s June 15 guess of $200,000. U of L spokesperson John Karman confirmed costs could balloon from that estimate, but also said the cost could fall below it too.

“Further analysis by the university’s outside counsel and A&M indicated that the actual cost to cover the additional services would likely be in the range of $200,000 to $400,000,” Karman said. “The contract, as amended, increases the amount the university is authorized to pay A&M to $400,000, but actual fees could be less than that.”

Grissom got trustees’ approval to expand the audit in a June 15 board meeting, earning the power to negotiate the further costs. He did not reveal, at that time, what more the audit would explore, saying there was  a need to “refine further and glean even more information” from Alvarez and Marsal’s June 8 audit.

That audit heaved damning allegations at former university president James Ramsey, alleging his administration made dangerous investments, unwise expenditures and deceptive decisions.

In a WDRB interview, Grissom said A&M would be paid to be available to be “on call to provide to provide more in-depth information on certain subjects.”

According to that WDRB report, losses from the foundation’s questionable past could be between $40 million and $100 million.

Retaliation for Ramsey’s alleged misdeeds may have already begun. Since the audit, Ramsey’s former aide was fired, his former chief financial officer is on an indefinite paid leave and both the university board and the foundation have contemplated legal action against Ramsey’s administration. Grissom said legal decisions from U of L’s board could be decided within weeks.

File Photo / The Louisville Cardinal

About Kyeland Jackson

Editor-in-Chief at The Louisville Cardinal.

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