University of Louisville Foundation Continues To Enhance
Its Governance, Transparency & Fiscal Responsibility
Directors adopt first detailed operating budget, departure from years past
LOUISVILLE, Ky. – The University of Louisville Foundation Board of Directors approved a line item operating budget for the 2018 fiscal year at Tuesday’s meeting, the first time the Foundation has taken such a step. A transparent operating budget is another key step as the Foundation continues demonstrating to stakeholders that we are professionalizing the governance of this important organization.
“This budget is a responsible plan that is responsive to the cut in the spend rate approved at the previous board meeting,” said Keith Sherman, Interim Executive Director and Chief Operating Officer for the ULF. “We felt it prudent and good practice to lay out a budget, discuss it, and then move forward together to demonstrate to our donors and all University stakeholders that the ULF has elevated our fiscal responsibilities.”
The budget adopted by the Foundation:
- Is within the spending rate established by the Board. In March, the Directors voted to reduce the Foundation’s spend rate after working with financial advisors to determine realistic investment income. In FY’18, direct endowment support to the University of Louisville will be approximately $30 million.
- Shows the Foundation is transparent and accountable to the Board. By presenting a detailed operating budget to the Board of Directors for the first time, Foundation leadership demonstrated that it respects the authority of the Board when it comes to setting a fiscal vision for the endowment and Foundation operations.
- Plans for the future. The formalized, fiscally responsible budget allows the Board on a monthly basis to track actual expenditures versus budgets amounts. The budget cuts Foundation operating expenses by 14.5% year over year. Reigning in spending across the board is integral to making sure the Foundation operates off investment income only, thereby growing the endowment. This also addresses recommendations made by the State Auditor’s reports.
“As Chair of the Foundation, I promised we would change the way the Foundation conducts business,” said Chairwoman Diane Medley. “This budget is a concrete step toward putting the endowment on a fiscally-responsible path. We continue to evaluate ways we can be more transparent with donors and the entire UofL community. I want to thank the Foundation Board, particularly Trustees Chair David Grissom and Finance Chair Vince Tyra, as well as the Foundation’s financial affairs team, for their work to make sure we are fully engaged to assist the University of Louisville in its mission to be a premier metropolitan research university.”
The University of Louisville Foundation seeks to make the University of Louisville a premier metropolitan research university recognized for advancing the intellectual, social and economic development of the community and its citizens. Learn more by visiting louisvillefoundation.org. Follow the Foundation on Twitter @UOFLF.