U of L Hiring Auditor, Consolidating Management To Improve Financial Oversight
The University of Louisville has announced it will hire a firm to look into the school’s financial management.
The board’s decision Thursday is a response to allegations by the IRS that a high-level employee wrote himself checks in excess of $2 million.
U of L spokesman Mark Hebert says the firm will review all internal audits for the past several years, review personnel with financial responsibilities and recommend whether more oversight is needed.
Hebert says U of L has also decided to consolidate administrative services like accounting, human resources and information technology.
“We just don’t know how many folks that would be or exactly how that would be set up but the president has ordered that we centralize and reduce the number of places where human or systemic breakdowns just might occur," Hebert says.
The decision to consolidate came from a team of staff, faculty, trustees and community leaders who are part of U of L’s 21st Century Initiative, which was developed to consider the strengths and weaknesses of the school and makes recommendations.
Hebert says it’s too early to determine how much the audit will cost, but President James Ramsey says the university must increase efforts to protect against these types of incidents.
From U of L, The CPA firm will be asked to:
- Review financial controls for all departments and schools on the Health Sciences Campus and the new faculty practice plan
- Review all internal audits performed since 2007 to ensure recommendations have been implemented
- Recommend whether UofL needs more frequent and unannounced audits
- Review personnel qualifications and training of employees with financial management responsibilities
- Identify and review all bank accounts not authorized by the Board of Trustees
- Survey banks within a 50-mile radius to ensure no unauthorized accounts exist in the name of UofL or related entities