Commonwealth of Kentucky
Finance and Administration Cabinet
Matthew G- Bevin OFFICE OF THE SECRETARY William M. Landmm 
Room 383, Capitol Annex Secretary

702 Capital Avenue

Frankfort, KY 40601-3462

(502) 564-4240

Fax (502] 564-6185

August 23, 2017

VIA mavfairidg@aol.c0m

J. David Grissom, Chairman

00 Jake Beamer

Boards Liaison

Office of the President University
University of Louisville
Louisville, KY 40208

Re: Personal Services Contract 

Dear Chairman Grissom:

I have reviewed your letter, dated August 17, 2017, wherein you request approval of the
University of Louisville?s request to amend Personal Services Contract (PSC) 
following the decision of the Government Contracts Review Committee (GCRC) to disapprove
same. Speci?cally, you state that, in 2016-17, GCRC authorized PSC 17-023A-F in the amount
of $1,250,000 to be expended on outside counsel fees. While approximately one?half of that
amount ($600,000) has been spent on outside counsel fees, the remaining $650,000 has been
used to pay for the forensic investigation conducted by Alvarez Marsal work that had
not been anticipated in the spring of 2016 when the University prepared its annual legal budget.

Your letter goes on to explain that, in consultation with the University?s outside counsel, 
is conducting a thorough and independent forensic investigation of the University of Louisville
Foundation into matters that could potentially lead to litigation, including numerous allegations
of ?nancial issues, misappropriation of endowment funds and breaches of ?duciary duties. You
note that all of this work is funded through PSC 17-023A-F and the proposed amendment thereto
and that any delay could jeopardize the potential for recovery of lost endowment funds and the
ability to hold those responsible accountable for potential wrongdoing. Lastly, you explain that
the amount to be added to the contract under the University?s proposed amendment would come
from funds already budgeted to the University for 2017-18 and that no additional funding from
the Commonwealth or the taxpayers is being requested.

KentuckyUnbridledSpirit com mm@h3 An Equal Opportunity Employer MIFID
UNIRIDLED .

August 22, 2017
Page 2

For the reasons set forth above, I hereby determine, pursuant to KRS that the
amendment to PSC shall remain effective as originally approved by the University.

Sincerely,

William M. Landrum Secretary
Finance and Administration Cabinet

cc: Tracy Gritton