The University of Louisville’s annual audit of its $1.2 billion budget has come back “clean,” while the school is moving forward with a more targeted audit following reports of employees’ misuse of funds.
“To say that it’s a clean audit on a $1.2 billion operation is significant, particularly with the complexity of the university, when you look at 30,000 population of faculty, staff and students,” says U of L’s finance head Susan Howarth.
In the 25 years Howarth has worked at the university she says she can’t remember when an annual audit hasn’t been clean.
But she adds this audit is separate from the one commissioned by the university following allegations by the IRS that an employee wrote himself checks in excess of $2 million.
“The annual audit of the financial statements is not intended to find fraudulent behavior,” says Howarth.
The other audit commissioned by the university will look into the school’s financial management, including personnel with access to financing. U of L President James Ramsey has ordered that the school consolidate its staff where these breakdowns and abuse might occur.
The school’s audit committee is narrowing down the firms which will be interviewed to lead the more targeted audit and will likely hear from finalists next month.
From U of L, The CPA firm will be asked to: