To the University Community:

In recent weeks, much has been written and discussed related to events in Tennessee. I have not previously responded to these accounts since the primary focus of the coverage was the activities of Dr. John Shumaker at the University of Tennessee. Given the recent release of the UT audit and other information, I provide the following comments to the university community.

During his tenure as president of the University of Louisville, Dr. Shumaker provided significant leadership to advance the university's academic and research mission. His support and leadership for House Bill 1, the Postsecondary Education Improvement Act of 1997, was critical to the early success of this reform effort at the University of Louisville and statewide. Working with the university community, he reinforced academic quality and the role of research, the need to grow our endowment, and the need to reach out to engage alumni, donors and friends in the life of the university. These efforts have advanced U of L's institutional and public agendas, allowing us to make an even greater contribution to the educational and economic quality of life of all Kentuckians.

It's important to note that the University of Louisville and the University of Tennessee are different institutions operating under different procedures, practices and legislation. U of L has had procedures to monitor and track expenditures, including those of the president, for many years. Even with these procedures in place, we must always assure ourselves and the public that our "house is in order."

So, given the issues raised about Dr. Shumaker while at the University of Tennessee, the University of Louisville immediately undertook an audit of presidential expenditures during his term as president, and we reaffirmed our commitment to the planned audit related to international programs. Any further comments on these audits will be made when they are complete.

As we move forward, it must be strongly stated that the current administrative team is committed to openness, public accountability, honesty and integrity; each of these values is important as we build support for the continued improvement of higher education at the University of Louisville and throughout the Commonwealth of Kentucky.

In this spirit, I am asking the chair of the Board of Trustees Audit Committee to designate either the audit committee itself, an outside group of respected community leaders, or an independent audit firm to work in coordination with the university's internal audit office to review the current processes and internal controls for expenditures made by the Office of the President. I also ask that this group evaluate our existing spending policy guidelines. I will welcome any policy or operational recommendations that come from this process.

In reaffirming my commitment to the values of honesty, disclosure and public integrity, I will submit to the Board of Trustees or a committee of the board, upon request, my annual Federal tax returns and provide full disclosure following the guidelines of the state's ethics commission. I have submitted these reports to the state's Executive Branch Ethics Committee in the past and will provide this report to our board each year.

Any discussion of the University of Louisville Foundation Inc. should include an understanding of its origins. It was formed in May 1970 as a separate, not-for-profit corporation before the university joined the state higher education system. Its role is to receive and invest gifts for the benefit of the University of Louisville - a role it has fulfilled well. The foundation has been an integral part of the university's academic success and our recent efforts to build the university's research enterprise. Members of the foundation board are respected community leaders committed to both the University of Louisville and higher education in Kentucky. Foundation decisions are made by the membership of the board, just as the official actions and positions of the U of L Board of Trustees are reflected through the decisions that it makes by its members as a whole.

Two years ago, through legal proceedings, the issue of whether the University of Louisville Foundation is a public agency for purposes of the state open records act was raised. These legal proceedings are advancing through the court system and must be pursued to a final conclusion to clarify whether the names of donors to a separate, not-for-profit foundation and other foundation information are, in fact, public record. This is an important public policy issue that must conclude the process initiated through the legal proceedings. The university continues to believe that the foundation's ability to protect the confidentiality of donor records is important to our fund-raising success.

As we await this resolution, the university remains committed to ensuring that any funds that flow from the foundation to the university for public expenditure are appropriately accounted for and disclosed.

Finally, I cannot state strongly enough that as we move forward with the completion of our reviews to determine any potential issues and as we await the conclusion of the legal process, we must come together as a university community. We must refocus our time and energy on advancing our goals as framed by the Postsecondary Education Improvement Act-to become a preeminent metropolitan research university. We have made significant progress over the last several years. My focus and commitment is to the achievement of these goals. I need your help, your support.

We face great challenges going forward. With the potential for another round of state budget cuts in the current fiscal year and the financial issues that will face the state in the next biennium, the university's efforts to advance its academic and research missions will be challenged in unprecedented ways. As we begin a new academic year, our single, most important focus must be working together to advance the university for our students and the people of Kentucky.

Sincerely,

James R. Ramsey
President