NC A&T Audit: $5M Aid to Officials’ Relatives

North Carolina A&T State University (NC A&T) is under a criminal inquiry by the State Bureau of Investigation following an audit that uncovered potential mismanagement of financial aid funds. The investigation, prompted by a report from the North Carolina Office of the State Auditor (NCOSA), suggests that over $5 million in financial aid may have been distributed to ineligible recipients, including relatives of university employees.

Millions in Aid Questioned

An Investigative Special Report found that between 2017 and 2025, the university’s Division of Business and Finance disbursed $5 million in Administrative Recovery Funds (ARF) – fees collected from students for services like housing, dining, and parking – as financial assistance. Crucially, the audit revealed a lack of merit or need-based criteria for many of these distributions. A significant portion, over $780,000, was allocated to students who were employed by the university, were family members of university employees, or had other personal or professional connections to NC A&T.

Specific examples highlighted in the report include the nephew of the former executive director of the Real Estate Foundation receiving $73,063, the daughter of a Center for Teaching Excellence advisory board member receiving $23,052, and the son of a former English instructor receiving $22,545. Additionally, the son of a former associate vice chancellor for campus enterprises received $18,707, and the daughter of a former assistant vice chancellor for business and finance was awarded $14,888.

Favoritism and Lack of Controls

The audit also uncovered instances of alleged preferential treatment. The former vice chancellor reportedly authorized tuition assistance totaling $36,654 and $12,000 for friends of an out-of-state student. Furthermore, a discussion between former enrollment management and financial aid officials revealed that the son of the former associate vice provost was allowed to remain enrolled despite policy violations, receiving a $10,000 scholarship award that exceeded the budgeted amount.

State Auditor Dave Boliek stated that these actions created an environment ripe for favoritism. “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,” Boliek said. He emphasized that public university funds intended for other students or programs were instead directed towards individuals with connections to senior officials.

Corrective Actions and Transparency

In response to the audit’s findings, Chancellor James R. Martin II communicated with students about the reported issues and the corrective actions being taken. The Division of Business and Finance will no longer be responsible for awarding financial aid, and scholarships that were wrongfully awarded according to the audit will be immediately discontinued. “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 stated, expressing gratitude for the auditor’s thorough review and commitment to integrity.