In a statement, Hess said the university would discontinue funding for the foundation and its shared services and facilities positions, calling questionable financial decisions and transactions “concerning but isolated.”
He emphasized that OSU remains on solid financial footing. Hess said university officials are working to support affected employees during the transition.
“Our decision to discontinue funding was necessary as the financial structure of the Innovation Foundation is simply not sustainable,” Hess wrote.
A finding from auditors indicated the foundation depended on money appropriated for the OSU Medical Authority for 96% of its operating costs, according to the audit. In the most recent fiscal year, the Innovation Foundation generated 2% of its revenue independently, according to the audit.
The restructuring extends beyond financial matters. Hess announced that Dr. Jeff Stroup, provost and vice president for strategy at OSU’s Center for Health Sciences, will replace him as CEO of the OSU Veterinary Medicine Authority.
Chief Information Officer Raj Murthy will now report directly to the president in another leadership shift. Hess said this decision reflects the importance of OSU’s technology infrastructure and digital initiatives to the university’s future.
Moving forward, OSU’s three transdisciplinary institutes — the Oklahoma Aerospace Institute for Research and Education (OAIRE), the Hamm Institute for American Energy and the Human Performance and Nutrition Research Institute (HPNRI) — will report to Kenneth Sewell, the Vice President for Research. Sewell will also oversee Cowboy Enterprises and OSU’s One Health Innovation Lab.
Hess also announced OSU is in the final stages of a national search for a new Division of Student Affairs leader. The new leader will report directly to the president, underscoring the university’s commitment to prioritizing student experiences at every level.
“These organizational changes, while significant, reflect our commitment to operational excellence and our focus on enhancing the student experience,” Hess wrote. “Together, we will build on our strong foundation to create an even brighter future for Oklahoma State University and the students we serve.”
The changes are expected to take effect in the coming months as OSU continues to implement the realignment.
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