Postel opened his presentation discussing the long-awaited forensic audit which, at that time, had not yet been released. He has since released a new statement, .��

The audit, he said, was expensive and comprehensive, but “we knew it’s what we had to do to move forward.”

“A lot has changed so we won’t have to worry about recurrences. We have done a lot of preparatory work to prevent this from happening again, that is the good news,” he said. “We will continue to be transparent on what did occur and how we are making sure these do not recur.”

In addition, this week (Thursday), Postel anticipates the board will approve the 2017-18 budget. There is one change to this work and that is an immediate 3-month hiring freeze. The decision on this was abrupt because we fell short of enrollment projections and attrition expectations.

“We projected a 400-student increase for retention and enrollment and it looks like we’ll be closer to 200,” Postel said, adding that we are losing second- and third-year students.

He also received a new letter from SACS noting that the site visit in September will be expanded. SACS wants to fully understand the nature of the relationship between the UofL and UofL Foundation, which is “no surprise,” according to Postel.

“They have a lack of understanding of $67 million in transactions that happened without the board’s approval. That’s the bad news. The good news is that large portions of this have been paid back and we have documents in place to prevent this from happening again,” Postel said. “But they want to see that.”

Another issue brought up in the SACS letter that “concerns Postel the most” is the university’s ability to demonstrate financial stability.

“This is the biggest reason institutions get in trouble with SACS,” he said, noting that UofL had an operating loss of $21 million in 2014-15 and of $46 million in 2015-16.

“SACS made it clear their intent is to study other revenue (in addition to unrestricted cash). But the foundation is tapped out and revenue next year is a fraction of what it was,” he explained. “To continue to take operating losses is not an option for us. There are times we have to do things to protect the university and the best way to deal with this is to hit the brakes and clamp down on hires and show we’re being overly conservative.”

Postel said shared governance will remain a priority through continued budget work.

Postel also said the NCAA ruling about the basketball program is expected this week.

“We have been honest. We have apologized. We have tried not to make excuses,” he said. “We’ll see if they accept our self-imposed penalty or if they add to it.”

Finally, UofL Hospital is transitioning from KentuckyOne Health to UMC, with a July 1 completion date. Postel said the hospital is busy and the nursing shortage is getting better and “people are in very good spirits about this (transition).”

Postel closed by talking about his recent trip to Washington, DC, where he was able to meet with all of Kentucky’s elected officials.

“They showed me uniform support and it was encouraging to establish dialogue with them,” he said. “They all wanted to talk about the sustainability of the university and are interested in the research and other work we’re doing.”

Interim provost Dale Billingsley also spoke to the Faculty Senate. He said there are exceptions to the hiring freeze: the ombudsman role, as it is required in the Redbook; and the Speed and Nursing dean searches. He stated that the Budget Advisory Committee will review additional requests for exceptions.

He also talked briefly about the QEP program that was developed as part of the re-accreditation process to help second-year students find their major.

“The intention is to address that group of students across the board through a range of student services and to keep them in an area where they both have the capacity for and interest in,” he said.  This program is designed to assist these students and address retention issues.

A report was provided by Dr. Bob Staat, interim ombudsman. UofL hopes to have someone permanently hired in that role by July. During his stint, Staat reported 185 interactions – 60 percent faculty; 40 percent staff. The only two units without an interaction with his office were SPHIS and law. Staat’s full report is .��

Cedric Powell, law professor and Faculty Grievance Officer, also provided a report, outlining the dispute resolution process. He noted that from September 16 through June 7, there were 12 faculty grievances, including three “type 1” disputes and one “type 2” dispute. His full report is also .��

Enid Trucios-Haynes provided the Chair’s Report, including the announcement that the Faculty Senate Executive Committee will focus on addressing the issues before the Board of Trustees’ new ad hoc committee on tenure and nepotism. She also introduced a proposed statement of the Faculty Senate, unanimously adopted, to reiterate the importance of shared governance in light of this new committee. It reads:

“The Faculty Senate of the University of Louisville asserts that it is critically important to have broad faculty input, consultation, and advice on all matters related to tenure and promotion. Faculty primacy in this area is long recognized as vital to protect academic freedom.

“On May 18, 2017, the Board of Trustees created an Ad Hoc Committee on Tenure and Nepotism Policy to review current tenure policies and practices. The principles of shared governance require a process for wide faculty involvement, recognizing the summer workload for faculty on ten-month contracts who engage in research, scholarship and related work during June and July, often away from campus. Additional faculty groups should include tenured, tenure-track, term and part-time faculty, representing a wide range of programs from basic sciences to fine arts, as well as the AAUP chapter at UofL. We propose that the Faculty Senate Executive Committee, comprised of elected representatives from nearly all of these groups, provide this essential consultation.”

Trucios-Haynes said the chair of the Board of Trustees has assured her there will be an opportunity for all constituencies’ input for next steps.

Staat also provided an update on the Council of Postsecondary ����ֱ��, as he serves as part of the tuition work group. He gave a PowerPoint presentation on the cost of tuition, which has remained relatively unchanged throughout the years even as state support has decreased. Kentucky is one of only seven states that has decreased its state support for higher education.

The only other report provided at the June 7 meeting was by the executive committee and it is .��

The next meeting is July 5 at 3 p.m. in the Chao Auditorium of the Ekstrom Library.

“It’s a big milestone for our company, moving from R&D to production and commercial sales,” said Vasanthi Sunkara, AEM’s president and CEO, at a ribbon cutting event June 2. “Today’s event commemorates …the company’s direction toward becoming a full-fledged commercial venture.” 

AEM makes nano-materials for catalysts used in chemical processing and oil refining. Its new facility is in about 20,000 square feet at 311 E. Lee Street, just north of the Belknap Campus.��

Interim UofL President Greg Postel said the move was another success story from the university’s efforts to work with industry, including through the .

“Our Institute for Product Realization was designed as a way for us to pursue these types of new relationships,” he said.��

The IPR connects companies with on-campus resources for problem-solving and innovation. John Gant, the IPR’s director of industry partnerships and alliances, said the university is looking for companies, like AEM, that have an “innovative twist.”  

“This is exactly the kind of company we want to work with at the University of Louisville,” he said.��

Advanced Energy Materials LLC has roots at UofL, and was born from a break-through technology developed at the Conn Center for Renewable Energy Research. The company now has an exclusive license agreement with the UofL Office of Technology Transfer for a portfolio of several patents, which could be commercialized as products for customers.�� 

Mary Ellen Wiederwohl, chief of Louisville Forward, the city’s economic development engine, said companies leveraging those kinds of UofL resources can help drive the local economy.��

“This density of companies here that are using the intellectual prowess of the university to drive economic growth in our city is certainly part of our long-term growth strategy for economic prosperity in our city,” she said.

Terry Gill, secretary of the Kentucky Cabinet for Economic Development, said these partnerships, with support from the state, can also drive growth throughout Kentucky.

Gill added that successes like this can be used “as kind of a draw for other young talent in the region to the University of Louisville and really to highlight the wonderful work that’s happening there.”

AEM has nine employees with plans to hire five more by the end of the year. Total employment is projected to reach as many as 60 by 2019.

Photos from the ribbon cutting event are . Video from the event is also available below: 

Interim President Greg Postel told the board that work is under way to address the $48 million budget shortfall forecast for the 2017-18 fiscal year. University leadership is studying a variety of proposals for dealing with the situation, including the possible elimination of 1,000 currently open positions. Avoiding mass layoffs remains a priority, according to Postel.

Postel said that by not filling 1,000 open positions, delaying some deferred maintenance and enacting other belt-tightening measures, the university has managed to trim about $22 million from the current year budget.

In his report to the board, the interim president noted that the state House of Representatives this week passed Senate Bill 107, a measure that officials hope will satisfy concerns raised by UofL’s accrediting body over the issue of university governance and whether it had come under undue political influence.

The Southern Association of Colleges and Schools placed UofL on probation last year. SACS is scheduled to visit the university in September and review its status at a December meeting.

BOT Chairman David Grissom told the board that the forensic audit of the foundation is scheduled to be completed in early to mid-May. Alvarez & Marsal Disputes and Investigations, the firm conducting the audit, recently expanded the scope of its review. For that reason, the firm has doubled the cost of its work, Grissom said. The audit will now cost the university about $1.8 million.

In other news, the committee charged with selecting a new permanent president for UofL held its first meeting on March 15. The decision was made to split the 16-member body into two groups for some of its work. One group, led by Grissom, will be tasked with creating a job description for the position. The second, led by trustee and Papa John’s International founder John Schnatter, will develop a request for proposals for a search firm.

Grissom said the goal of the committee is to have a new president in place in a year and a half—in time for the start of the 2018-19 academic year.

That was among the topics at an activity-packed meeting that also included a report on UofL’s accreditation by the Southern Association of Colleges and Schools Commission on Colleges, the appointment of a presidential search committee, approval of the interim president’s contract and introduction of new deans.

Postel told the Board that the university should complete 2016-17 with a balanced budget but will face a $48 million shortfall in 2017-18. That is about 4 percent of the university’s overall budget. Postel said the university will take several steps to cover the deficit, including freezing salaries of faculty and staff, implementing a hiring “frost” (filling no more than 25 percent of vacant positions) and delaying some renovation projects and deferred maintenance. He added that the university will not need to mandate campus-wide layoffs and that UofL will stick to its commitment not to raise tuition in 2017-18.��

Board Chair David Grissom said he has been in contact with Senate President Robert Stivers and with SACSCOC President Belle S. Wheelan about Senate Bill 107, an effort by Stivers to maintain some changes sought by Gov. Matt Bevin while meeting the requirements of UofL’s accrediting body. Grissom said he and Postel will discuss the latest version of the bill with Wheelan. Pending a positive response from SACS, Stivers is prepared to move the bill in the Senate next week, Grissom said.

Grissom also announced a 16-member presidential search committee that will begin what he expects to be a lengthy process to find UofL’s next leader. The committee includes:

• David Grissom – co-chair
• John Schnatter – co-chair
• Bonita Black
• Brian Cromer
• Charles Denny
• Sandra Frazier
• Alice Houston
• Diane Medley
• Alex Rankin
• Eddy Roberts
• Jim Rogers
• Nitin Sahney
• Steve Trager
• Will Armstrong – staff representative
• Enid Trucios-Haynes – faculty representative
• Aaron Vance – student representative

Also at the meeting, the board approved a contract for the interim president. Despite serving as both interim president and interim executive vice president for health affairs, Postel will maintain his current $950,000 salary. At Postel’s request, the board removed several perks, including $100,000 in deferred compensation, but did include potential for a similar bonus based on performance. Grissom noted after the meeting that the bonus was “solely at the discretion of the board.”

Deans Gerard Bradley, School of Dentistry, and David Jenkins, Kent School of Social Work, shared presentations with the board. Both deans touted their nationally ranked programs. Postel praised both Bradley and Jenkins for the energy they have brought to their respective schools.