DURHAM, N.C. — In a stunning revelation that has rattled trust across Durham’s academic and civic landscape, a state audit released Thursday accused North Carolina Central University (NCCU) of financial misreporting to the tune of more than $45 million. The audit, issued by the office of State Auditor Dave Boliek, describes the university’s financial records as “grossly inaccurate,” marking one of the most severe fiscal assessments of the historically Black university in recent memory.
The findings arrive at a moment of transformation for the institution—one that has long served as a cornerstone of Black academic excellence and civic leadership in the Bull City. And while the numbers are damning, the context is complex—and the path forward, cautiously hopeful.
A Cascade of Errors, Years in the Making
The 79-page report, meticulously compiled by the North Carolina Office of the State Auditor, found material weaknesses and a breakdown of internal financial controls stretching across multiple fiscal years. Among the most egregious errors were:
• An $8.3 million overstatement in expenses for supplies and services due to misclassification.
• A $4.9 million overstatement in reported cash balances resulting from inaccurate journal entries.
• Dozens of additional misstatements totaling more than $45.3 million, calling into question the accuracy of NCCU’s financial position as reported in previous years.
The errors, according to the audit, did not result in financial loss or evidence of fraud, but they raise serious concerns about oversight and management culture under prior leadership. The misstatements could have led to “uninformed decisions by financial statement users,” the report said, and may have impacted how funding bodies, donors, and federal grant institutions evaluated the university.
Read the full audit report from the NC Office of the State Auditor here: https://www.auditor.nc.gov/
Leadership in Transition: A New Chancellor, A New Chapter
In June 2024, the University of North Carolina System Board of Governors appointed Dr. Karrie Dixon as the new chancellor of NCCU. Dixon, a respected figure in North Carolina higher education and former Chancellor of Elizabeth City State University, inherits a campus at a crossroads. Her arrival, though coincidental to the audit’s release, has already triggered strategic recalibration.
In a written response to the audit, university officials acknowledged the errors and said steps are underway to restore confidence. These include:
• Revamping the financial evaluation process for personnel.
• Hiring new fiscal leadership with external auditing experience.
• Creating stricter internal control protocols for journal entries and classification standards.
“By implementing and monitoring these strategies, university management can enhance the reliability and accuracy of their financial reporting processes, even during challenging periods,” the university’s statement read.
A Pattern of Deficiency—and a Wake-Up Call
This is not the first time NCCU has faced scrutiny for financial reporting. Previous audits in 2021 and 2023 flagged issues with record-keeping and compliance but stopped short of identifying material misstatements. This latest report, however, crosses that line.
State Auditor Dave Boliek—a Republican and former member of the UNC Board of Governors—underscored the gravity of the findings but urged the public not to conflate accounting lapses with institutional insolvency.
“These findings should not signal that the university is in financial trouble,” Boliek said in a press briefing. “NCCU has a proud tradition of providing a higher education experience that prepares its students for success across a wide spectrum of careers. That tradition should continue.”
Community Reaction: Concern, Context, and Confidence
In Durham’s bustling neighborhoods and among alumni nationwide, reactions ranged from disappointment to guarded optimism.
“It’s disheartening, absolutely. But it’s also an opportunity,” said Dr. Jamila Carter, an NCCU alumna and current faculty member at a neighboring university. “HBCUs have operated under systemic financial pressure for decades. This is a moment to get it right—not just for compliance, but for our legacy.”
Historical underfunding of HBCUs by state legislatures has long contributed to structural challenges in governance and administration. A 2023 study by Forbes reported that HBCUs collectively have $12.8 billion less in endowment funding than predominantly white institutions (PWIs). North Carolina’s public HBCUs, including NCCU, Elizabeth City State, and Winston-Salem State, have all documented budgetary challenges stemming from inequitable funding streams.
Why This Matters
North Carolina Central University, founded in 1910 by Dr. James E. Shepard, has educated generations of Black leaders in law, education, business, and the arts. It is a civic institution in Durham and a cultural beacon across the South. Any misstep here reverberates far beyond the spreadsheet.
For Bull City Citizen, this story is more than numbers. It is a mirror reflecting the realities of managing public trust, the challenges of transition, and the resilience of Black institutions. It is a reminder that Durham’s story—like that of its crown jewel, NCCU—is still being written, with ink that is bold, unflinching, and grounded in accountability.
What’s Next
As NCCU begins the work of rebuilding its financial house, all eyes will be on the chancellor’s office, the UNC System, and the North Carolina General Assembly. Transparency, collaboration, and sustained investment will be key.
“Accountability is not a punishment—it’s a promise,” said Bull City Citizen’s Editor-in-Chief Marla Easton. “We will continue reporting on this story, because we believe in the power of our institutions to evolve—and we believe our readers deserve nothing less than the truth.”
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