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Audit: Famed HBCU ensnared by $5M in improprieties, including nepotism

(The Center Square) – North Carolina A&T, among the most prominent of the state’s 11 historically Black colleges and universities, has received analysis of $5 million in improper financial assistance in a report it initiated with the state auditor.

Made public by first-term Republican state Auditor Dave Boliek on Thursday, the collective sum was directed without evidence of merit or need-based criteria, the report says. It included $780,000 to students who were university employees, family members of university employees or otherwise had direct personal or professional connection to the institution, Boliek’s office said.

“North Carolina A&T identified this problem through our own internal audit process, and I personally contacted State Auditor Boliek because full transparency demands nothing less,” said Chancellor James R. Martin II. “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. We welcomed the Office of the State Auditor’s review, we support the referral to the Guilford County district attorney’s office and State Bureau of Investigation, and we will continue to cooperate fully.”

Among the findings:

• The nephew of the former executive director of the Real Estate Foundation received $73,063 in financial awards.

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• The daughter of a board member for the A&T Center for Teaching Excellence External Advisory Board 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 daughter of the former assistance vice chancellor for Business and Finance was awarded $14,888 in funds.

• Preferential treatment by the former vice chancellor for Business and Finance awarded an out-of-state student $49,024. Two of the student’s friends subsequently received tuition assistance of $36,654 and $12,000.

“What’s been uncovered at North Carolina A&T represents gross misconduct,” Boliek said. “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.”

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Fifteen recommendations have been given to the university in light of the findings.

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