Auditor of Public Accounts Crit Luallen Releases Examination of See the audit report for Full Details |
Crit Luallen |
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Louisville, Ky (March 24, 2004) - Crit Luallen, Auditor of Public Accounts, released today an examination of selected expenditures of the University of Louisville Foundation, Incorporated. The examination was instituted to ensure that, after questions arose at the University of Tennessee, former President John Shumaker did not use his relationship with the University of Louisville Foundation for personal gain.
Ms. Luallen stated, "Our report concluded that Dr. Shumaker did not use the Foundation for inappropriate personal benefit. Dr. Shumaker was given broad latitude within Foundation guidelines concerning his expenditures and he operated with those guidelines." She added, however, that, the "guidelines and controls could be tightened and clarified and we have made recommendations in specific areas." Those recommendations include that the Foundation modifies its formal travel policies to include criteria for travel of the President's family, that a formal policy be established relating to gifts and events, that the President's Office maintain an inventory of gifts distributed and received, and that an annual physical inventory be conducted of Amelia Place, the President's home. Regarding Amelia Place, Ms. Luallen drew a distinction with the President's home at the University of Tennessee. "Many of Dr. Shumaker's problems in Tennessee arose from his handling of the University of Tennessee president's official residence. At UT, the official residence is state property and all activities from furnishings to maintenance are paid with public funds appropriated by the Tennessee State Legislature. In an important contrast, Amelia Place is maintained without the expenditures of any funds appropriated by the Kentucky General Assembly." State Auditor Luallen also spoke out publicly on the issue of whether or not the University of Louisville Foundation is a public agency and should be open to review. Saying that "the U of L Foundation should be proud of their accomplishments and willing to share them with citizens of this state," Ms. Luallen came down on the side of public disclosure. She said, "the ability of Foundations to raise money, even from anonymous sources, should be protected. I believe this anonymity should extend to individuals who request it, but should not extend to corporations. But beyond that, I believe that University Foundation records should be open to the public and all of their expenditures transparent." |
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