UPDATE: The University of Louisville Foundation's executive committee abruptly canceled a meeting scheduled for 5 p.m. Monday, putting off discussion of an outside audit of the Foundation's finances and the fate of Foundation President James Ramsey.
A cancelation notice was sent out 10 minutes before the meeting was scheduled to start.
According to Foundation board Chair Robert Hughes, the meeting was canceled based on attorneys' advice after a letter from Larry Benz, chair of the U of L Board of Trustees and a member of the Foundation board, said the Foundation's executive committee did not have legal authority to take certain actions.
The letter, which Benz provided to WFPL, states that the U of L Board of Trustees must initiate an outside audit of the Foundation, not the Foundation's executive committee, which was scheduled to consider a request for proposals on Monday evening.
Asked whether the trustees would take up the RFP soon, Benz wrote via email: "I hope so!"
Benz's letter also says the Foundation is not allowed to provide Ramsey or his chief of staff, Kathleen Smith, any "continued payment" should they leave their positions. The letter appears to suggest the Foundation's executive committee was to consider an exit arrangement for Ramsey, who resigned as U of L president in July, and Smith.
"As a fiduciary that is obligated to act for the primary benefit of the University, the continued payment by the Foundation of any money, which is money that is held by the Foundation for the benefit of the University, to Dr. Ramsey or Ms. Smith, is not proper as it is not a use of money that benefits the University," the letter says.
Benz suggests in the letter that the full Foundation board meet quickly to consider, among other issues, a possible Ramsey exit. The Foundation board's regular September meeting has not yet been scheduled.
Here's the letter from Benz:
Previous story:
The executive committee of the University of Louisville Foundation's board of directors has called a special meeting for Monday evening to discuss an outside audit of its finances.
The move comes just days after one of its biggest donors threatened to pull funding if the Foundation did not invite an independent examination of its spending, investments and other financial arrangements.
In a letter to U of L Foundation Chairman Robert Hughes dated Friday, the James Graham Brown Foundation threatened to withhold funding until the U of L Foundation -- which manages the university's endowment -- hires a nationally recognized forensic accounting firm to evaluate its books.
The Courier-Journal first reported the letter on Saturday.
The Brown Foundation has given U of L $72 million over more than a half-century.
According to an agenda sent to reporters Sunday, the Foundation's executive committee will consider a request for proposals to hire an outside firm to review the Foundation's finances. The Brown Foundation said it was troubled by delays in providing information to U of L's Board of Trustees about a $38 million loan from the university to the Foundation.
In its letter, the Brown Foundation said it was also concerned about governance of the U of L Foundation. Former U of L President James Ramsey, who resigned amid a public fight with the Board of Trustees earlier this year, remains the Foundation's president.
The Foundation board is scheduled to meet at 5 p.m. on Monday.
