AT A GLANCE
- A state audit found North Carolina A&T State University improperly awarded $5 million in financial aid.
- Some students who received funds were university employees, relatives of employees or had personal or professional ties to the school.
- Chancellor James R. Martin II said senior officials involved are no longer employed by the university.
- The university says its Division of Business and Finance will no longer award financial aid.
State Audit Reveals North Carolina A&T Awarded $5 Million In Financial Aid To Student Relatives Of School Officials
A state audit into North Carolina A&T State University found that millions of dollars in financial aid may have been distributed to ineligible out of state recipients, including students tied to former university officials.
According to a report from State Auditor Dave Boliek, the university directed $5 million in financial aid to students without evidence that the awards were based on merit or need. Officials at the school contacted the auditor’s office after discovering problems in the student financial aid process and requested an investigation.
University Says Officials Involved Are No Longer Employed
Shortly after the audit became public, North Carolina A&T Chancellor James R. Martin II told Boliek that the individuals named in the report no longer work for the university.
“Senior officials directly involved with the improperly awarded scholarships are no longer employed,” Martin told Boliek, adding that the school intends to seek “restitution from the responsible employees.”
In response to the audit, the university said its Division of Business and Finance will no longer award financial aid. The school also said it will “immediately discontinue” awarding scholarships to students who were found to have been wrongfully awarded funds.
“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,” Martin said in a statement. “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.”
Funds Were Tied To Employees, Relatives And Connected Students
According to Boliek’s report, more than $780,000 of the $5 million improperly distributed was tied to Administrative Recovery Funds, which are fees charged to students for services such as housing, dining and parking.
Instead, the audit found that some of those funds were directed to students who were university employees, family members of employees or individuals with a direct personal or professional connection to the university.
“Students got an advantage because of who they knew and who they were connected to,” Boliek said. “Money that otherwise could have benefited a different program or student who qualified instead went to those who had the right connection.”
Also Read: TSU Faces State Investigation Over Financial Mismanagement
Report Details Specific Financial Aid Awards
In total, the audit found that 24 students who received more than $238,000 combined were either university employees or family members of employees.
Among the examples outlined in the report, the nephew of the former Executive Director of the Real Estate Foundation received $73,063 in financial awards. The daughter of a North Carolina 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 report also found that the son of the former Associate Vice Chancellor for Campus Enterprise received $18,707, while the daughter of the former Assistant Vice Chancellor for Business and Finance received $14,888 in student aid.
Criminal Referral Made After Audit Findings
The audit also found that the university’s former Vice Chancellor for Business and Finance used selective treatment to award $49,024 to one out of state student. The same vice chancellor authorized $48,654 to be awarded to two friends of that same out of state student.
The findings prompted Boliek to make criminal referrals related to the audit to North Carolina’s Bureau of Investigation.
“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,” Boliek said.
