RALEIGH, N.C. — An Investigative Special Report from the North Carolina Office of the State Auditor (OSA) confirmed North Carolina Agricultural and Technical State University (NC A&T) improperly directed $5 million to students as financial assistance without evidence of merit or need-based criteria.
NC A&T had contacted OSA after discovering improper conduct with student financial aid was taking place, and OSA promptly conducted a review of the matter. The examination shows that Administrative Recovery Funds (ARF), which are fees charged to NC A&T students in association with services such as housing, dining, and parking, were used to improperly provide $5 million in financial assistance to students, and that students received funds because of connections to former senior university officials.
Of the $5 million evaluated, more than $780,000 in ARFs was directed to students who were university employees, family members of university employees, or otherwise had a direct personal or professional connection to the university. As stated in the report, 24 students who received more than $238,000 in total were either university employees or family members of university employees. Examples include:
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The former Executive Director of the Real Estate Foundation’s nephew received $73,063 in financial awards.
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An NC A&T Center for Teaching Excellence External Advisory Board member’s daughter received $23,052.
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The son of a former Part-time English Instructor received $22,545.
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The son of the former Associate Vice Chancellor for Campus Enterprise received $18,707.
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The former Assistance Vice Chancellor for Business and Finance’s daughter was awarded $14,888 in funds.
There was also an instance where the former Vice Chancellor for Business and Finance used preferential treatment to award an out-of-state student $49,024. The former Vice Chancellor then authorized tuition assistance of $36,654 and $12,000 for two friends of the same out-of-state student…