DURHAM, N.C. (WNCN) — The North Carolina Office of the State Auditor released its financial statement audit of North Carolina Central University and found that the school has over $45 million in financial reporting errors for the fiscal year that ended June 30, 2024. The audit highlights that N CCU's financial reporting issues have grown over the years. Specifics for the report on the fiscal year (on pages 66-67 of the report) include, among others: Supplies and services expenses were overstated by $8.3 million due to losses from the disposal of capital assets that were misclassified. Scholarships and fellowships expense was understated by $1.2 million due to revenues related to the UNC System's Project Kitty Hawk partnership were not recorded correctly. This 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 the beginning net position by the same amount. "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." Officials with NCCU acknowledged the findings in the report and said that they are fully committed to ensuring "transparency, accountability and effective resource management moving forward." According to university officials, the scope of the audit pertains to a time prior to the current school administration. In a statement, the university said: "Under Chancellor Karrie G. Dixon’s leadership, NCCU is making significant strides to resolve the audit’s concerns. Dixon has a proven track record of strengthening internal controls and improving financial oversight, having achieved clean audits every year at her previous institution. This experience has been instrumental in hiring new leadership and implementing stronger financial practices at NCCU. Since Chancellor Dixon’s appointment, NCCU has taken immediate and proactive steps to bring in new leadership within the Division of Administration and Finance. The team, with decades of combined experience, is committed to the highest standards of financial stewardship. Key appointments include a new chief financial officer and a new controller; ongoing recruiting efforts include new leadership in other key areas in the Division of Administration and Finance to support the new direction. 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. Chancellor Dixon and the NCCU leadership team are committed to fostering a culture of integrity and accountability, ensuring the university continues to thrive as a respected institution of higher learning." You can view the full audit report below: NCCU-AUDIT-REPORTDownload ...read more read less