North Carolina A&T State University is facing a criminal inquiry by the State Bureau of Investigation after an audit found that more than $5 million in financial aid may have been distributed to ineligible recipients, including family members of university employees, The Carolina Journal reported.
An Investigative Special Report by the North Carolina Office of the State Auditor (NCOSA) found the HBCU’s Division of Business and Finance distributed funds as financial assistance without evidence of merit or need-based criteria between 2017 and 2025. Administrative Recovery Funds (ARF), fees charged to Aggies for services such as housing, dining, and parking, were used to provide $5 million in financial assistance to students, some of whom had connections to former senior university officials.
Out of the massive amount, over $780,000 went to students employed by the Greensboro-based HBCU, family members of university employees, or had a personal or professional connection to NC A&T.
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, and the son of a former part-time English instructor received $22,545.
In addition, the son of the former associate vice chancellor for campus enterprises received $18,707, and the daughter of the former assistant vice chancellor for business and finance was awarded $14,888.
The audit also revealed controversial moves by the former vice chancellor, authorizing tuition assistance of $36,654 and $12,000 for two friends of an out-of-state student. Per a discussion between the former associate vice provost for enrollment management and the former director of financial aid operations, the former associate vice provost’s son was able to remain at the school despite a policy that prevented him from remaining enrolled.
Instead, the family member received a $10,000 scholarship award, exceeding the $2,000 budgeted amount of said scholarship.
According to AfroTech, State Auditor Dave Boliek, in his report, said the moves set the students up 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.“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.”
As the report went public, Chancellor James R. Martin II sent communications to students about what was reported and how the school is correcting the wrong, stating the Division of Business and Finance will no longer award financial aid and will “immediately discontinue” awarding scholarships to students who the audit revealed were wrongfully awarded.
“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 continued. “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.”RELATED CONTENT: North Carolina A&T Taps Queen Latifah As Graduation Keynote Speaker