STATE AUDIT FINDS NCCU
HAD OVER $45 MILLION IN
FINANCIAL REPORTING ERRORS
By Cash Michaels
Contributing writer
Despite its recent enrollment success, North Carolina Central University (NCCU) in Durham has reportedly had some financial reporting problems over the past few years, according to a new report issued by the NC State Auditor’s Office.
Beyond chronicling over $45 million in financial statement errors for the fiscal year ending in June 2024, NCCU’s financial reporting problems have been growing, the audit found.
Some of those issues included:
- 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.
"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."
Despite the significant total of the NCCU financial statement errors, Auditor Boliek maintains that the HBCU is not in any financial trouble. NCCU’s new chancellor, Karrie G. Dixon, has vowed to put new fiscal controls in place to ensure that that the audit reporting error do not reoccur.
“Our team is confident in the new leadership team’s ability to put the University on a positive trajectory,” said Auditor Boliek in the report. “With the right people in the right positions, NCCU’s financial reporting should improve.”
In a statement, the university concurred.
“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.”
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DEMOCRATIC BILLS SEEK
TO RAISE MINIMUM WAGE TO $22/hr
By Cash Michaels
Contributing writer
It’s been 15 years since North Carolina’s minimum wage has been raised for the state’s grassroots workers, even though the cost of living has steadily gone up. If House Democrats have their way, North Carolina’s minimum wage will rise from $7.25 per hour to $22.00/hr.
Democratic House members Pricey Harrison (D- Guilford), Carolyn Logan (D-Mecklenburg), Marcia Morey (D-Durham), and Aisha Dew (D-Mecklenburg) are the primary sponsors of House Bill 339, the Economic Security Act.
According to the bill’s language, HB 339 is “An act advancing economic security for all in North Carolina by increasing the state minimum wage to twenty-two dollars per hour, adjusted for inflation annually; mandating equal pay for equal work; requiring paid sick leave, paid family medical leave, and workplace safety…”
If passed, the bill would become effective Jan. 1, 2026.
HB 339 was introduced March 11th, and has been referred to the Rules, Calendar and Operations of House Committee.
In the state Senate, SB 326, also titled the Economic Security Act, and sponsored by Democratic Senators Natalie Murdock (Chatham, Durham), Julie Mayfield (Buncombe) and Lisa Grafstein (Wake), filed March 19th, would, is passed, also raise North Carolina to $22.00/hr, effective Jan. 1, 2026.
Past that date, the NC Commissioner of Labor would determine how much the minimum wage would be raised annually.
SB 326 has similar language to HB 339, except that it also would require “…the fair assessment persons with criminal histories by “banning the box”” and “…repealing public employee collective bargaining restrictions."
The Senate bill has also been referred to the Rules and Operations of the Senate Committee for further debate.
With Republicans in the majority in both houses, it seems unlikely that either measure will be ultimately ratified, especially given Republican opposition to raising the minimum wage on both the state and federal levels.
Republicans say having to pay workers a high minimum wage increases the cost of doing business, and does not give workers with little skills the incentive to work harder to earn more.
“Raising the minimum wage hurts the poor…” The Joint Economic Committee of Republicans said in it’s 1996 The Case Against a Higher Minimum Wage.
“It takes away jobs, keeps people on welfare, and encourages high school students to drop out. Policymakers should be clear on the consequence of higher minimum wages.”
Democrats and supporters of raising the minimum wage counter that grassroots workers need a living wage that they can feed their families with, keep pace with inflation, and argue that too many have to work two and three jobs in order just to pay rising rents and put food on the table.
“We know these Americans. We depend on them,” said Pres. Barack Obama in 2014. “The workers who’d benefit from a minimum wage increase often work full-time, often in physically demanding jobs. They average 35 years of age. Most low-paying jobs are held by women.”
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