North Carolina A&T audit shows millions improperly distributed
North Carolina A&T, a major HBCU, is facing scrutiny after a state audit found the university improperly distributed $5.1 million in scholarship and financial aid funds over an eight-year period.
The findings were presented Thursday by North Carolina State Auditor Dave Boliek during a Board of Trustees Risk Management, Audit and Compliance Committee meeting in Greensboro.
Boliek said the investigation uncovered serious misconduct tied to financial assistance. According to the audit, some students received aid because of personal ties to university employees instead of merit or financial need.
Improper aid at North Carolina A&T
The report said more than $5 million from the administrative recovery fund was used for student assistance. Those funds are typically meant for emergencies or other university-related costs.
Boliek said there was no formal policy allowing that money to be used for tuition support. He also said many of the awards went to out-of-state students, student employees, or relatives of employees.
"These funds were awarded without merit or any needs-based criteria," Boliek said.
He added that some students gained an unfair advantage because of who they knew. That meant money that could have supported other students or campus needs was redirected elsewhere.
HBCU leaders respond to audit
The audit also found weak internal controls and poor oversight. Boliek described the situation as "a bit of a financial mess" and issued 15 recommendations to improve accountability and prevent similar problems in the future.
North Carolina A&T officials said Chancellor James R. Martin II brought the issue to the auditor's office during a routine financial audit. University leaders also said they have fully cooperated with the investigation.
"It's entirely unfair to our students here," Martin said.
Officials said the employees tied to the improper actions are no longer with the university. Boliek said North Carolina A&T has already started taking corrective steps.
Still, the findings raise major questions for the HBCU about scholarship oversight, fairness, and how trust is maintained with students and families.
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