NEW YORK - A tough report by the state's inspector general is heavily criticizing the city university system, saying it lacks fiscal oversight and raises serious questions about its management.

The preliminary audit singled out several CUNY expenditures, noting that Brooklyn College spends $36,000 per year on a part-time housekeeper for its president, noting that the money could have provided full annual scholarships for up to six students.

The report recommends centralizing its budget policies in order to reduce the potential for abuse.

In a statement, City University Chancellor James Milliken says he will take the report's recommendations very seriously.