Chris FrazierN.C. Central University audit reported $45 million in financial reporting errors Thursday afternoon.
According to the N.C. Office of the State Auditor, the audit, which covered the previous fiscal year that ended on June 30, 2024, showed that NCCU’s financial reporting was “grossly inaccurate.”
“Institutions of higher education in North Carolina are expected to meet high standards,” State Auditor Dave Boliek said in the audit, “and NCCU fell far short.”
The document, which is more than 60 pages, listed how multiple misstatements led to inaccuracies.
According to the audit, transactions and disclosures with one NCCU partner, Rural Health Hub, Inc., were not managed properly. Understated were $7.7 million of notes receivable and unrestricted net position.
Beginning net position was also understated by $5.6 million, the salaries and benefits expense was overstated by $1.3 million and supplies and services expense was overstated by $0.8 million, according to the audit.
Other projects and partnerships were also mishandled: Supplies and services expenses had been overstated by $8.3 million; scholarships and fellowships expense had been understated by $1.2 million, according to the audit.
Cash had been overstated by $4.9 million because of inaccurate journal entries, noncapital contributions had been overstated by $4.8 million. The audit also found that federal grants and contracts had been overstated by $3.7 million, with restricted nonexpendable net positions had been overstated by $2.6 million.
Restricted expendable net position had been overstated by $3.6 million, while unrestricted net position had been understated by $6.2 million, according to the report.
In the “Findings, Recommendation, and Response” section, the audit blamed the misstatements on “inadequate internal controls.”
“The financial reporting errors occurred because University management did not ensure that personnel in critical financial reporting positions possessed the necessary knowledge and experience to perform their duties,” Boliek said.
Since the end of the last fiscal year, NCCU has installed Chancellor Karrie Dixon and a new chief financial officer to oversee financial reporting.
In a Thursday press release, NCCU “acknowledges” the findings of the audit, while not providing the community with specifics.
“The leadership team is working closely with the University of North Carolina System office and other stakeholders to implement strong financial controls across campus. Their experience will be crucial in restoring confidence in the university’s financial management.”
Following the announcement of the audit, Eagles took to Fizz to make their reactions known.
“Why am I not surprised?” One Eagle asked.
A debate ensued regarding if it was right for one student to post a Durham County News article on the platform.
“If [the administration is] that concerned,” an Eagle said, “y’all should have been financially responsible.”
