A major shake-up is under way at the City University of New York following a scathing report that found lax spending and management practices, sources said.
The sources said Jay Hershenson, the vice chancellor of university relations for 32 years and secretary to the board of trustees, has been eased out of that position.
A popular fixture with deep ties to the university’s network of supporters, Hershenson was reassigned as vice president of communications and marketing at one of CUNY’s campuses, his alma mater, Queens College.
General counsel is stepping down.
More changes are expected, according to sources familiar with the overhaul.
“To say that there is a lack of faith in the current CUNY administrative structure would be an understatement,” said a source.
Insiders said other top CUNY officials could be departing as well.
Chancellor James Milliken also is said to be on shaky ground, according to the sources.
The moves come after a report by state Inspector General Catherine Leahy Scott last month revealed mismanagement, financial waste and potential corruption.
Hershenson was not named in the IG report.
It also comes as Gov. Cuomo has sought to assert more influence to get a better handle on spending at both CUNY and the State University of New York.
He has pushed to merge administrative and back off functions, and He recently appointed his state budget director, Robert Mujica, to serve on CUNY’s board of trustees.
Cuomo is trying to get a better handle on CUNY and SUNY’s management and spending and has pushed to merge administrative and back off functions.
CUNY board Chairman Bill Thompson requested the IG probe after it was revealed that Lisa Coico, president of City College, one of CUNY’s flagship campuses, spent $150,000 in university funds on personal expenses.
Coico abruptly resigned in October and her actions are being probed by the feds.
The IG report found little oversight of CUNY foundations, which were tapped for club memberships and parties for school officials, the report said.
The report also targeted the CUNY board for awarding a golden parachute to former Chancellor Matthew Goldstein worth $3 million over six years without “clearly defined” duties.
“Goldstein left his chancellor position in July 2013 and was permitted to take a study year at his then-Chancellor salary of $490,000 before assuming the chancellor emeritus position in 2014,” the report said.
The report also said hundreds of thousands of dollars were spent on “duplicative” lobbyists.
Thompson, the CUNY board chairman, declined to comment.
Chancellor Milliken issued a statement, saying:
“We take the report from the Inspector General very seriously, and I am working closely with the Board of Trustees to promptly address the recommendations. We also remain focused on important new initiatives to increase access, improve graduation rates, and help our graduates get good jobs.”