IRS to audit University of Louisville Foundation

September 1, 2018 GMT

LOUISVILLE, Ky. (AP) — The Internal Revenue Service says it will audit the University of Louisville Foundation.

The Courier Journal reports the IRS notified the foundation on Aug. 24 it had been selected for an audit. Agents plan to visit the foundation Sept. 11-13 and have asked for documents related to mismanagement and employee pay.

The foundation oversees the university’s $721 million endowment. It is a nonprofit organization and exempt from taxes. In August 2017, the foundation notified the IRS of some non-compliant activities. These included investing endowment money in high-risk startup companies and spending $3.9 million on excessive compensation to a trio of former university officials.

Interim foundation Executive Director Keith Sherman said the foundation is cooperating with the government and plans to show them “how we have reformed this institution.”