State Auditor: NC A&T gave millions to students because of connections, not merit
04/24/26
The North Carolina State Auditor's Office found that millions of dollars in financial aid went to out-of-state North Carolina A&T University students who did not meet certain criteria for it and were tied to former university officials.
According to
State Auditor Dave Boliek's report, NC A&T directed $5 million to students as financial aid without "evidence of merit or need-based" criteria. Officials at NC A&T contacted the State Auditor's Office after discovering misuse of student financial aid was taking place and asked the auditor to look into the matter.
"I personally contacted State Auditor Boliek because full transparency demands nothing less," said Chancellor James R. Martin II. "Our students deserve to know that every dollar they pay is managed with integrity, and the corrective actions we have taken reflect that commitment."
Boliek's report found that of the $5 million that was improperly distributed, more than $780,000 in Administrative Recovery Funds, which are fees charged to students for services like housing, dining and parking, were directed to students who were university employees, family members of employees or "otherwise had 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."
The report indicated that 24 students who received more than $238,000 combined were either university employees or family members of employees. Some of the examples in the report included:
- The former Executive Director of the Real Estate Foundation’s nephew received $73,063 in financial awards.
- An NC A&T Center for Teaching Excellence External Advisory Board member’s daughter 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 Enterprise received $18,707.
- The former Assistant Vice Chancellor for Business and Finance’s daughter was awarded $14,888 in funds.
The report also said there was an instance where the university's former vice chancellor for business and finance used preferential treatment to award an out-of-state student for $49,024. The former vice chancellor then authorized a total of $48,654 to two friends of that same out-of-state student.
Boliek said that he made criminal referrals related to the audit to the State 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.
The report also alleges that after a conversation between the former Vice Provost of Enrollment Management and the former Director of Financial Aid Operations, the former vice provost's son was able to stay at the university despite university policy that would have prevented him from staying. The student also recieved a $10,000 scholarship award, which far exceeded the $2,000 budgeted amount for that scholarship.
The university underwent an audit in 2008 that also found that it had improperly awarded scholarship money to relatives of university employees. In interviews with university officials at that time, auditors discovered that members of the Treasury and Financial Aid departments could request that a scholarship be awarded with no questions asked.
Boliek's report on Thursday outlined 15 recommendations to improve the financial aid approval process, and includes a response from NC A&T outlining steps the university is taking to improve operations.