December 24, 2016

Internal foundation audit could cost up to $897,000

U of L Foundation; ULF

U of L Foundation; ULF

By Kyeland Jackson —

An internal audit investigating the University of Louisville Foundation’s financial records and procedures will cost up to $897,000.

The Courier-Journal first reported the story, obtaining the contract between ULF and Alvarez & Marsal, the internal auditing firm picked on Dec. 5 to investigate the foundation. A&M billed a fee of $687,500, with added travel and expense costs totaling up to $897,000.

The audit will investigate the activities and accounts of the foundation, its subsidiaries and affiliates. The contract also asks A&M focus on the foundation’s financial transactions, real estate business practices, charitable donations and direct university support.

The foundation’s committee chose Alvarez & Marsal after reviewing 10 other firms bidding for the job.

“In order to restore the confidence of the entire U of L stakeholder community, we needed to hire the pre-eminent forensic investigation firm, and we got that with A&M,” U of L Board of Trustees Chair Larry Benz said Dec. 5.

“Alvarez & Marsal is a firm with a worldwide reputation and tremendous track record,” committee chair Diane Medley said. “We have every confidence that it is the right choice to lead this review.”

An internal audit was requested after donors threatened to pull upwards of $76 million in funding and the university threatened to sue for questionable business practices by ULF. The foundation has bowed to demands since then, replacing its chair, hiring open records officers and hiring an interim executive director.

The audit will be completed by June 30.

File photo / The Louisville Cardinal

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