North Carolina A&T State University improperly distributed $5 million to students as financial assistance without evidence of merit or need-based criteria, according to an investigation from the North Carolina Office of the State Auditor (OSA).
Initially, NC A&T contacted OSA after an internal audit discovered misconduct with student aid was taking place. OSA then conducted a review of the matter, finding that, between July 1, 2017 and June 30, 2025, Administrative Recovery Funds (ARFs) — fees charged to students in association with services such as housing, dining, and parking — were improperly used to provide $5 million in financial assistance to students.
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 personally or professionally connected to the HBCU. Some $238,000 of these funds were directed to 24 students who were university employees or family members of employees, including the daughter of the former assistant vice chancellor for business and finance.
The OSA investigation also honed in on actions between the former associate vice provost for enrollment management and the former director of financial aid. According to the investigation, these administrators had a discussion in Fall 2024 in which the director of financial aid placed a hold on the account of the associate vice provost’s son, thereby allowing his son to remain enrolled despite having an outstanding account balance. This student also received an award of $10,000 through the Aggie Club Endowment Scholarship, far exceeding the $2,068.05 budgeted amount for that scholarship in fiscal year 2025.
“Through our investigations, we at the State Auditor’s Office seek to hold individuals accountable for misguided actions,” said State Auditor Dave Boliek. “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. I want to thank NC A&T Chancellor Martin for working with the State Auditor’s Office and for the corrective actions being taken on this matter.”
“NC 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 NC A&T 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.”
