The University of Louisville and its foundation settled with their former auditor after a dispute over the “appropriateness of certain services and fees.”
The foundation approved the settlement in a Jan. 31 meeting but did not share details of the agreement or what caused it. UofL’s board of trustees conditionally approved the agreement earlier in the month.
BKD, the former auditor, will pay the foundation $350,000 under the agreement, which Insider Louisville obtained through an open records request. According to the settlement, $100,000 will be repayment of fees and $250,000 will be considered a “charitable contribution.”
The three-page settlement said that the university and the foundation “had a dispute” regarding services for ULF and how much they cost.
BKD acted as auditor for the university and the foundation from 2008 to 2017, when the firm was let go as part of a fresh start after former officials supposedly overspent the school’s endowment and professional outsiders allowed them to do so. Many of those officials, including the former president James Ramsey, are being sued on accusations of financial mismanagement.
Stites & Harbison, the foundation’s former legal counsel, was also let go in April 2017. A judge recently dismissed the law firm from the UofL and ULF suit, agreeing that the suit was brought too late.
In April 2017, the former foundation board chair Diane Medley said that they were “looking at all the contracts, all the relationships” and that there needed to be a “clean break” to help the endowment manager to move forward.
All parties release any remaining claims as part of the settlement, so they cannot sue each other in the future.