NC A&T Audit Uncovers $5 Million Financial Aid Irregularities, Prompts Criminal Investigation

North Carolina A&T State University is facing a criminal investigation by the State Bureau of Investigation following an audit that revealed more than $5 million in financial aid may have been improperly distributed to ineligible recipients, including relatives of university officials, according to findings released by the North Carolina Office of the State Auditor (NCOSA).

The investigative special report found that the Greensboro-based institution used Administrative Recovery Funds (ARF)—fees charged to students for services such as housing, dining, and parking—to provide financial assistance to students who had connections to former senior university officials.

Details of the Financial Irregularities

The audit identified numerous instances of questionable financial awards, including:

• The nephew of the former executive director of the Real Estate Foundation received $73,063 in financial awards
• The daughter of an NC A&T Center for Teaching Excellence external advisory board member received $23,052
• The son of a former part-time English instructor received $22,545
• The son of the former associate vice chancellor for campus enterprises received $18,707
• The daughter of the former assistant vice chancellor for business and finance was awarded $14,888

In one particularly concerning case, the former vice chancellor authorized tuition assistance totaling $36,654 and $12,000 for two friends of an out-of-state student.

State Auditor Dave Boliek characterized the findings as clear favoritism in his report.

The influence and actions by former senior officials, combined with the lack of internal controls at North Carolina A&T, led to several instances of preferential treatment that resulted in personal advantage and gain. Public university dollars that could have benefited other students or programs were instead directed toward those who had the benefit of having a personal connection with senior officials.

University Response and Corrective Actions

Chancellor James R. Martin II addressed the findings in communications to students, outlining immediate corrective measures. The Division of Business and Finance will no longer award financial aid and will immediately discontinue scholarships to students identified in the audit as having been wrongfully awarded.

Chancellor Martin emphasized the university's commitment to transparency and accountability in his statement.

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. 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.

The State Bureau of Investigation's criminal inquiry is ongoing as the university implements reforms to prevent future irregularities in financial aid distribution.

Originally reported by Black Enterprise.