The A & T Register
Wednesday, August 22, 2007


State audit points to mismanaged funds at A&T
8/22/07


GREENSBORO (AP) - Nearly $400,000 in receipts from vending machines, money earmarked for student financial aid and campus debt, went to a spending account of a former chancellor at North Carolina A&T State University, according to a state audit.

The audit, released last week, said the money was spent on commissions for art work, travel by the wife of former A&T chancellor James Renick, alumni events and a $150,000 annuity for an unidentified faculty member.

By UNC system policy, the vending money was supposed to be spent on scholarships, student financial aid, campus debt and student activities.

Renick, who stepped down as chancellor last year, is now a senior vice president at the American Council on Education in Washington. He could not be reached for comment Friday.

The audit caps months of investigation at the university, where several employees have been fired and charged with criminal offenses. A spokesman for the state auditor's office said more charges could be forthcoming. The report has been forwarded to federal prosecutors, the Federal Bureau of Investigation, the State Bureau of Investigation and the Guilford County District Attorney's office.

Copies also went to Gov. Mike Easley.

The audit also found, among other things, that $500,000 in questionable expenses in the university's HBCU Future Engineering Faculty Fellowship Program, funded by the federal Office of Naval Research.

According to the audit, a program manager made improper payments, including more than $66,000 in stipends in one year to her husband, who was in the program. The highest yearly stipend had previously been $23,000. The manager spent 41 nights in hotels during 2005-06 at the program's expense, the audit said, at an average cost of $328 a night.

The manager also hired her daughter and paid for her travel to conferences in Jamaica, California, Nevada and Pennsylvania, according to the audit.

The manager and her husband ran up a $369 restaurant and room service tab during a two-day symposium. "These are serious allegations, said Chris Mears, director of public affairs for the Office of the State Auditor. "Any time you have fraud allegations, it rises to another level."

The audit triggers a 90-day warning period for the campus, which could lose budget flexibility powers if UNC system leaders aren't satisfied with progress at the university.

New chancellor Stanley Battle arrived July 1 at N.C. A&T from Coppin State University in Maryland. Battle was out of town Friday and could not be reached for comment.

Mark Kiel, vice chancellor for development and university relations, said much of the audit's information came from work ordered by former interim chancellor Vic Hackley, who began to uncover problems last year and asked UNC President Erskine Bowles for help.

Bowles then sent in what he termed SWAT teams of auditors and administrators to comb through A&T's books. Jeff Davies, Bowles' chief of staff, said Friday the university had been working for months to straighten things out.

"My sense is that Chancellor Battle is very much on top of the issues there," Davies said, adding that Battle had begun to hire new administrators. "He feels very good about the leadership team in place on the campus. I think this is all about leadership."

quote:

Several employees have been fired and charged with criminal offenses. A spokesman for the state auditor's office said more charges could be forthcoming. The report has been forwarded to federal prosecutors, the Federal Bureau of Investigation, the State Bureau of Investigation and the Guilford County District Attorney's office.

Dang! That's serious shyt!

Okay, they are are still looking for the state HBCU to take down. No success in Florida, I guess they broke camp and moved on to NC.

I don't doubt for a minute that the Aggies will handle this. Looks like the same game plan used on FAMU--tear down the prez who ushered in the progress, put in an intermim who feed the press stories on how bad the predecessor was, publish a bunch of BS about missing dollars.

quote:

Originally posted by BleedingOrangeandGreen:
Okay, they are are still looking for the state HBCU to take down. No success in Florida, I guess they broke camp and moved on to NC.

I don't doubt for a minute that the Aggies will handle this. Looks like the same game plan used on FAMU--tear down the prez who ushered in the progress, put in an intermim who feed the press stories on how bad the predecessor was, publish a bunch of BS about missing dollars.

Huh??

Well, the press is starting to be directed more at Renick than the institution right now. My question is: Will this put a damper on Renick if he decides to pursue the Howard or the UDC jobs?

Understanding how the UNC-System works. He didn't leave because he wanted and I believe he wants to be back in the "college setting"