Today, the North Carolina Office of the State Auditor (OSA) released its financial statement audit of North Carolina Central University (NCCU). The audit shows NCCU had over $45 million in financial reporting errors for the year ended June 30, 2024.
"Part of what makes our university system so great is we hold the institutions to high standards and strive to bring the very best out of our public universities," said State Auditor Dave Boliek. "NCCU’s financial reporting fell far short of the standards expected of our high education institutions, but I’ve had productive meetings with university and UNC system leadership and have confidence NCCU is on a better path."
The Auditor's Transmittal highlights that NCCU's financial reporting issues have grown over the years. Specifics for the year ended June 30, 2024, which can be found on pages 66-67 of the report, include:
- Supplies and services expense was overstated by $8.3 million because losses from the disposal of capital assets were misclassified, which also understated other nonoperating expenses by the same amount.
- Scholarships and fellowships expense was understated by $1.2 million because revenues related to the UNC System’s Project Kitty Hawk partnership were not recorded correctly, which also understated state and local grants and contracts revenue by the same amount.
- Cash was overstated by $4.9 million because of inaccurate journal entries, which also overstated beginning net position by the same amount.
- Noncapital contributions were overstated by $4.8 million because donated capital assets were misclassified, which also understated capital contributions by the same amount.
- Federal grants and contracts were overstated by $3.7 million because of inaccurate journal entries, which also understated nongovernmental grants and contracts by the same amount.
- Restricted nonexpendable net position was overstated by $2.6 million, restricted expendable net position was overstated by $3.6 million, and unrestricted net position was understated by $6.2 million because of errors in the calculations.