Audit: N.C. A&T money went to relatives

RALEIGH — An annual audit of North Carolina A&T State University found that relatives of university employees received 27 percent of the scholarships reserved for the Bookstore Scholarship Fund for needy students.

State Auditor Les Merritt released a report Friday that found three scholarships totaling $10,392 were distributed. The report says there was no formal policy defining eligibility requirements.

Merritt says the university should create a clear policy saying employees should not be allowed to award scholarships to themselves or immediate family members.

“Need-based scholarships should have clear guidelines and be awarded equitably based on the needs of students,” Merritt said in a news release.

A message left for a university official after hours Friday was not immediately returned.

Auditors also found two questionable trips charged to a vice chancellor’s discretionary account totaling $4,769.

The report also noted poor management of student accounts, unallowable costs paid from state appropriations, deficiencies in financial reporting, and employees circumventing internal controls. Some students were not billed for their medical insurance, and there were some grants not accounted for.