The University of Louisville ordered a forensic audit for the institution on September 26, 2016. The investigation focused on the activities that the Louisville Foundation Inc. enrolled in. The results portrayed a concerning picture of the charity establishment. Under the control of former University of Louisville President James Ramsey, the nonprofit institution wasted the funds at its disposal on trivial ends leading to a corrupted culture.
The Corrupted Culture Led to Numerous Lost Documents and Emails
On Thursday, audit specialists released their report regarding the activities that took place under the Louisville Foundation roof. One of the most disturbing details revealed Kathleen Smith, former chief of staff of James Ramsey, attempting to hide evidence. The official intended to keep funds valued at $20 million away from audit professionals that work for Chicago company Alvarez & Marsal.
Most findings uncover a corrupted culture as the system was ill prepared and presented many financial and data leaks. For instance, the report found that the foundation had a weak collection of policies for information technology.
As a result, the institution couldn’t keep track and lost many crucial documents and emails. On top of that, IT employees managed to erase the contents of a hard drive before the audit proceedings. The property was once in the possession of former President Ramsey.
Previous Administration Kept the Board of Directors in the Dark
The audit also discovered that the board of directors of the foundation was not up to date with all important transactions. When interviewed, these members couldn’t answer correctly to any question related to financial activities.
Moreover, the officers of the foundation failed to provide the board the necessary information to do their job. For instance, new directors received no training to align them with the culture and activities of the foundation. On top of that, the meetings were a formality where discussions were scripted, and nobody dared to question the agenda.
In light of these findings, the Interim President Greg Postel took upon himself the mission to change the foundation and create a transparent apparatus. The previous administration adopted a corrupted culture that Postel hopes to reverse.
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