By Shelby Brown–
The U of L Foundation went behind closed doors twice today, voting on a potential deal, whilst keeping the terms under wraps. The agreement, still in draft form, was not released. Foundation Director Earl Reed said the proposal is being negotiated with both the foundation’s and the university’s lawyers, pending Board of Trustee approval.
A decision could be reached as early as next week.
“It would take the form of an agreement containing a set of representations and warranties which the foundation would make for the benefit of the university,” Reed said in the statement.
The draft also involves governance and operating procedures.
Interim Executive Director Keith Sherman said the agreement itself doesn’t have to do with litigation, but could potentially lead to it. Both Sherman and Chair Diane Medley specified that the agreement wasn’t for litigation between the foundation and the university.
“If this agreement is ratified by the board of trustees, then it could allay any risks of that provided that the foundation continues to operate in the manner it’s committed to operate,” Sherman said.
Despite U of L cleaning house after the release of the Alvarez and Marsal Foundation audit, no lawsuits have been filed against former President James Ramsey.
The June release of the damning A&M audit rocked U of L revealing overspending, deliberate muddying of information and misappropriation of funds under the former administration. Since the audit’s release, the foundation has terminated several of their employees and worked to see donors return to the university.