Lisa Haynes and Jim CatanzaroAt the very least, Chattanooga State President Jim Catanzaro committed a series of policy violations in putting Lisa Haynes in a top administrative position on campus, the Tennessee Board of Regents has found. At worst, the board suggests, he concocted a mock hiring process, the sole purpose of which was to bring Haynes to campus -- in defiance of rules designed to ensure a fair, open hiring process.
TBR's much-anticipated audit, released Monday, confirms faculty suspicions over Haynes' hiring and delivers a sour note to the final weeks of Catanzaro's high-profile, 24-year term as president of Chattanooga State. Earlier this month, he announced he would retire effective Dec. 31.
The 47-page audit was months in the making and also delved into morale and ethics at Chatt State and found that Catanzaro and Haynes racked up more than $23,000 in travel expenses -- including some travel that couldn't be proven to be business-related.
But the bulk of the report concentrated on Catanzaro's hiring of Haynes, who was brought on as senior executive assistant to the president in August 2013 but quickly became a de facto No. 2 on campus. Much of the findings echo Times Free Press revelations in a series of stories on the controversy at Chattanooga State.
In his hiring of the high-paid, controversial administrator, the audit found that Catanzaro:
• Ignored or overlooked the fact that her unofficial transcript did not indicate a college degree was ever conferred;
• Failed to follow policy by not requiring an official transcript;
• Failed to verify the success of Haynes' entrepreneurial work experience;
• Submitted visa documentation before Haynes interviewed for the job or received a job offer;
• Avoided TBR oversight of the hiring process by not submitting Haynes' hiring to the chancellor for approval.
Haynes has said she was unaware of her lack of degree -- a claim auditors said was "difficult to understand" given the fact that she had failed a core required course three times and her transcript showed no degree was granted. She has since received a retroactive degree from her alma mater, though the audit says that doesn't change the fact she was hired without a degree and has lacked credentials for most of her time at the college.
Auditors also uncovered discrepancies over dates and names of companies Haynes claimed to have worked for between her resume and application materials. Misrepresentation of her degree status or work experience could be grounds for immediate termination.
Auditors said these and other findings gave the impression that the president had selected Haynes before the search process began.
"Such an approach to hiring fails to provide a fair, open hiring process and negates the purpose of the search process, which is to seek and hire the best qualified candidate," the audit said.
The faculty twice voted no confidence in Catanzaro this fall after it came to light that Haynes was hired without having earned an official bachelor's degree.
Faculty members claimed Haynes was underqualified and was unjustly put in a high-level position. She traveled alongside the president to meetings far and away. But TBR's review found that not all of her travel was business-related.
The audit said there was not a clear business need for Haynes' $1,691 travel to Barbados from Dec. 28, 2013, to Jan. 13, 2014. There were no meetings scheduled in advance and her trip concurred with Catanzaro's annual vacation to the island. On other joint trips, Haynes and Catanzaro followed TBR policy, but some expenses lacked sufficient documentation, the audit said.
Faculty Senate President Kenneth Goldsmith said the findings appear to confirm faculty suspicions that Catanzaro was not a good steward of college resources. But mostly faculty are relieved to see a report published and are ready to move on.
"It's important that they've published a document so people can see and read for themselves," Goldsmith said.
Catanzaro could not be reached for comment Monday evening, when the audit was released. Haynes is on personal leave until Jan. 19.
In a statement, college spokeswoman Eva Lewis said staff and faculty would continued to serve the needs of the community, the region and the state by providing businesses a well-prepared work force.
"The Chattanooga State faculty and staff will continue to focus on our most important mission: student success," she said.
The Tennessee Comptroller of the Treasury is also investigating the college, though officials haven't said when their review will be completed.
On Monday, TBR Vice Chancellor Warren Nichols announced he would take over as interim president of Chattanooga State on Jan. 1. He told faculty and staff that another interim would likely be appointed in early 2015 before a national search identifies a permanent president.
"In the meantime, I'd like to thank Dr. Catanzaro for his many years of service and his multiple accomplishments that have helped Chattanooga State grow into such a well-respected college," Nichols said. "I trust we can all agree at this time to place all our efforts on moving forward with our mission of helping our students and our community achieve their goals."
Contact staff writer Kevin Hardy at khardy@timesfreepress.com or 423-757-6249.
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