Audit: Former Louisville president broke several foundation bylaws
- Former University of Louisville President James Ramsey is again at the center of controversy, this time for audit findings showing financial mismanagement and several other breaches during his time as foundation chief.
- According to a state audit published this week, Ramsey is alleged to have moved more than $67 million in endowment funds to the university's budget without board approval and received compensation above the approved salary for his foundation role. The audit also found administrators frequently functioned in dual capacities between the school and foundation to create multiple issues with governance and oversight.
- The audit stopped short of calling for a criminal investigation of Ramsey and others involved.
Many universities and their staff have dual roles shared between the institution and the foundation, often sharing time and expertise which could be violations of nonprofit or state agency bylaws. This is an example of when everything goes very badly, very publicly, but in most cases, controversies for schools will never rise to this level of attention.
Still, many presidents would do well making sure that foundation and university functions are carried out by separate staff, regular training is offered for any dual roles held by trustees or staff, and professional roles are clearly defined to ensure public accountability
- The Chronicle of Higher Education U. of Louisville foundation broke its own bylaws, state audit finds