NC A&T audit reveals misuse of student financial aid

NORTH CAROLINA A&T STATE UNIVERSITY

The Office of the State Auditor has issued criminal referrals after confirming an audit by North Carolina A&T State University found $5 million in student financial was improperly directed without evidence of merit or need.

Criminal referrals have been issued after audits found improper use of student financial aid at North Carolina A&T State University.

School officials contacted the Office of the State Auditor after discovering irregularities in how $5 million was directed to students without evidence of merit or need for financial assistance. The agency confirmed the findings and alerted to the State Bureau of Investigation. The state report also outlines recommendations to improve how aid is approved. 

“Through our investigations, we at the State Auditor’s Office seek to hold individuals accountable for misguided actions,” State Auditor Dave Boliek said in a statement. “What’s been uncovered at NC A&T represents gross misconduct. Given the findings of our investigation, we’ve made a criminal referral to the State Bureau of Investigation, and I have fully informed and updated the Guilford County District Attorney.”

A&T auditors initially discovered the misuse of aid, and the OSA launched a review that found improper payouts through student fees charged for services such as dining, housing, and parking. 

“N.C. A&T identified this problem through our own internal audit process, and I personally contacted State Auditor Boliek because full transparency demands nothing less,” Chancellor James Martin II said. “I am grateful to Auditor Boliek and his team for the thoroughness and professionalism of their review. Our students deserve to know that every dollar they pay is managed with integrity, and the corrective actions we have taken reflect that commitment. We welcomed the Office of the State Auditor's review, we support the referral to the Guilford County District Attorney's Office and State Bureau of Investigation, and we will continue to cooperate fully.”

The investigation confirmed students received funds through connections to former university officials, with more than $780,000 in Administrative Recovery Funds directed to students who were A&T employees, family members of university employees, or had personal or professional connections to the school. Twenty-four students who received more than $238,000 combined were either university employees or family members of university employees. Among the examples cited:

• $73,063 to the former executive director of the Real Estate Foundation’s nephew received.

• $23,052 to an A&T Center for Teaching Excellence External Advisory Board member’s daughter.

• $22,545 to the son of a former part-time English teacher.

• $18,707 to the son of the former associate vice chancellor for campus enterprise.

• $14,888 to the former assistant vice chancellor for business and finance’s daughter.

There was also an instance where an unidentified former vice chancellor for business and finance directed a $49,024 award to an out-of-state student through preferential treatment. The official also authorized $36,654 and $12,000 in tuition assistance for two friends of the same out-of-state student.

The State Auditor’s probe also found a relationship between the unidentified former associate vice provost for enrollment management and former director of financial aid operations that resulted in the former vice provost’s son to remain enrolled despite university policy that would have prohibited him from doing so. The student was found to have received a $10,000 scholarship, which exceeded the $2,000 allowed.

“I appreciate the work of State Auditor Boliek to complete a rigorous investigation, and I appreciate Chancellor Martin bringing forward the concerns originally,” UNC System President Peter Hans said. “The chancellor and his team have been diligently working to correct issues and move forward with transparency and accountability. In this situation, the process worked to set things right again, and that’s why we have layers of oversight in a public university.”

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