Improper Financial Aid Distribution Uncovered at NC A&T University
The North Carolina Agricultural and Technical State University (NC A&T) finds itself in the spotlight following a revealing audit. An Investigative Special Report by the North Carolina Office of the State Auditor (OSA) has exposed the misallocation of $5 million in student financial aid without adhering to merit or need-based criteria.
The issues came to light after NC A&T itself notified OSA about potential irregularities in student financial aid distribution. An audit was promptly conducted, revealing that Administrative Recovery Funds (ARF), derived from student fees related to housing, dining, and parking, were misused to allocate financial aid. Notably, aid recipients were often connected to former university officials.
Within the $5 million scrutinized, over $780,000 was allocated to students with personal or professional ties to the university. The audit found that 24 students, who collectively received more than $238,000, were either university employees or relatives of employees, including:
- The nephew of a former Executive Director of the Real Estate Foundation, who was awarded $73,063.
- A daughter of an NC A&T Center for Teaching Excellence External Advisory Board member, receiving $23,052.
- The son of a former Part-time English Instructor, awarded $22,545.
- The son of a former Associate Vice Chancellor for Campus Enterprise, with $18,707 in funds.
- $14,888 to the daughter of a former Assistance Vice Chancellor for Business and Finance.
Additionally, the former Vice Chancellor for Business and Finance reportedly favored an out-of-state student with $49,024, and subsequently authorized $36,654 and $12,000 in tuition aid for two friends of this student.
“Through our investigations, we at the State Auditor’s Office seek to hold individuals accountable for misguided actions,” commented State Auditor Dave Boliek. “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. I want to thank NC A&T Chancellor Martin for working with the State Auditor’s Office and for the corrective actions being taken on this matter.”
“I appreciate the work of State Auditor Boliek to complete a rigorous investigation, and I appreciate Chancellor Martin bringing forward the concerns originally,” stated UNC System President Peter Hans. “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.”
“NC A&T identified this problem through our own internal audit process, and I personally contacted State Auditor Boliek because full transparency demands nothing less,” said NC A&T Chancellor James R. Martin II. “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 report also highlighted dealings between the former Associate Vice Provost for Enrollment Management and the former Director of Financial Aid Operations. Their discussions allowed the former Associate Vice Provost’s son to remain enrolled at the university against standard policy, alongside a $10,000 scholarship, far exceeding the $2,000 budgeted for that award.
Following these revelations, OSA has referred the matter to the State Bureau of Investigation. The audit report includes 15 recommendations for improving the financial aid process and details the steps NC A&T is taking to enhance its operations.
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