Professional Documents
Culture Documents
VIA EMAIL
Board of Directors
University of Louisville Foundation, Inc.
103 Grawemeyer Hall
Louisville, Kentucky 40292
RE:
September 8, 2016
Page 2
(6) copies of any and all documents relating to any commitment by the
Foundation or Related Entities to expend funds subsequent to the termination of
the Accounting Period.
In its letter (the Brown Foundation Letter), the Brown Foundation expressed its opinion
that the
University, [the Foundation] and the Louisville community would be well
served if ULF immediately (1) hired a nationally recognized forensic accounting
firm identified by the University to conduct an independent review of [the
Foundation and its related entities, (2) conducted a best practices governance
review with a nationally recognized organization such as the Association of
Governing Boards of University and Colleges (3) complied with the recent
request for accounting made by [Chairman Benz] and (4) complied with the Open
Records Act requests from [Chairman Benz].
The Brown Foundation also stated that [w]ithout evidence of these actions [it would] be unlikely
to approve any further grant requests from the University, [the Foundation] or the James Graham
Brown Cancer Center.
In its letter (the CES Foundation Letter), the CES Foundation requested immediate
action on the four recommendations contained in [the Brown Foundation Letter].
I believe that it is in the best interest of the Foundation and its express charitable purposes
to gather and provide the information requested in the pending Open Records Request, and to
hire an independent nationally recognized accounting firm to conduct a review of the
Foundation. This review will be in addition to the annual audit of the Foundations financial
statements. Likewise, I believe that the Foundation should honor the request to conduct a best
practices governance review with a nationally recognized governance organization. I will bring
recommendations to implement these actions for consideration and action at the Annual Meeting
scheduled for September 16, 2016.
Foundation representatives have begun to compile the records responsive to the Open
Records Request. Since more than six years of records have been requested, it will take a good
deal of effort to identify and provide them (the initial estimate is that more than 1,000,000
records have been requested), but the Foundation is proceeding with all due speed. As you
know, the Foundation is presently undergoing its annual audit and an extensive examination by
the Auditor of Public Accounts. Because the demands placed on limited Foundation staff exceed
their capacity, I personally have authorized the hiring of up to four (4) additional Foundation
employees to assist with these matters. My plan is to ask you to ratify that action at our next
meeting.
September 8, 2016
Page 3
With respect to the request for an accounting, I plan on presenting to you a request for
proposals for an independent nationally-recognized accounting firm to conduct an independent
review of the Foundation and its related entities. I will propose that the firm be selected, and its
work directed, by a committee of the Foundation composed equally of members of the
Foundations board who also serve as trustees of the University and two members of the board
who are not currently trustees of the University. At the same time, the Foundation intends to
reach out to the Brown Foundation, the CES Foundation and other important stakeholders to
listen carefully to their questions and concerns. I also plan to discuss with you whether we
proceed to conduct a best practices governance review immediately or upon the receipt of the
pending report of the Auditor of Public Accounts.
The Foundation appreciates the need to proceed promptly and thoughtfully in addressing
questions that have been raised by the University as well as all donors and supporters and that is
precisely what we intend to do. It is my hope that all of us will move forward together to
accomplish these steps in a spirit of teamwork and cooperation.
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