(The Center Square) – Procurement card programs at a historically Black college in North Carolina reviewed by the state auditor were inconsistent in administration, including noncompliance with procurement usage.
Transactions at Fayetteville State University lacked supportive documentation, including approvals, and some transactions were not in compliance with purchasing requirements, says the analysis from the office of first-term Republican state Auditor Dave Boliek.
In the audit presentation, he wrote in part, “By not consistently managing procurement card and travel card programs, inappropriate, unauthorized, or prohibited purchases may occur and go undetected, increasing the risk of fraud, waste, abuse, and misuse of school resources.”
Auditors reviewed 662 P-Card transactions for $576,000 during an audit period from July 1, 2025, to Feb. 28 where 6,002 transactions totaling $2 million were processed. Auditors found 107 transactions totaling $85,954 with untimely review; 68 transactions totaling $14,727 not reviewed; 63 transactions totaling $22,952 missing a business purpose; 33 transactions totaling $7,799 missing supportive receipts; 23 transactions totaling $3,212 getting automatic approval; and five transactions totaling $3,659 for nontravel-related purposes.
Fayetteville State’s 109 P-Cards had 2,562 transactions totaling $896,444 during the audit period, and the 188 T-Cards had 3,440 transactions totaling $1,117,348. For P-Cards, top categories of spending were in restaurants and fast food ($100,898), grocery stores ($48,751) and computer software stores ($45,776), with Lowes ($35,226) and Walmart ($28,648) the top merchants. For T-Cards, top categories of spending were in hotels ($421,683), restaurants and fast food ($158,055) and airlines ($143,655), with Delta Air ($77,119) and Marriott ($56,998) the top merchants.
Oversight, monitoring and training of usage requirements top the list of recommendations from the auditor’s office. Also recommended are reviews and updates to configurations, workflow settings and strengthened enforcement of requirements in accordance with compliance.
Fayetteville State Chancellor Darrell Allison provided the response within the audit, saying in part it agreed with findings and would be switching to a single-card purchasing program and eliminating the Travel Card and Procurement Card programs.
Allison wrote, “Through enhanced monitoring, compliance reviews, training, documentation requirements, periodic workflow validations, and implementation of the One-Card program and Emburse platform, the university is taking proactive steps to address the identified findings, strengthen accountability, and reduce the risk of future noncompliance.”
Fayetteville State in 2026-27 has more than 7,000 students. The state budget passed this summer for fiscal year 2027 appropriates $16.5 million to the university; tuition, mandatory fees, auxiliary services, grants and private gifts supply the rest of operational costs.
Fayetteville State, according to the United Negro College Fund Economic Impact Report, generates $169 million in economic impact locally and regionally.
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