NCCU Assistant Provost Alleged of Improper Expenditure Authorizations

State Auditor's investigative findings have been referred to the US Attorney's Office.

February 17, 2008

DURHAM COUNTY NC NEWS -- The Assistant Provost and Associate Vice-Chancellor of Academic Affairs at North Carolina Central University (NCCU), Dr. Franklin B. Carver, is alleged to have inappropriately authorized graduate assistant contracts and honoraria for unauthorized individuals. Additionally, Dr. Franklin B. Carver has been stripped of his duties as Assistant Provost and Associate Vice-Chancellor of Academic Affairs, but Carver still retains his faculty position at NCCU.

According to an investigative audit conducted by the Office of the State Auditor and released on February 12, 2008, Carver improperly authorized nine payments, totaling $36,041, Seven of those payments were cashed with a total value of $15,341. Two remaining payments valued at $20,700 were authorized or issued but never cashed. All of these improper expenditure authorizations were from United States Department of Health and Human Services funds associated with the Minority Biomedical Research Support and the Overcoming Racial Health Disparities grants.

Furthermore, according to the report, an undergraduate student indicated the Assistant Provost, Dr. Franklin B. Carver, directed her to cash a University check, keep $500, and pay the balance to him, so the Assistant Provost could make payments on his credit card. She also indicated the Assistant Provost asked her to obtain Social Security numbers from other individuals. The undergraduate student complied with his request, providing those numbers to the Assistant Provost and he subsequently provided her with University checks made out to these individuals. In addition, the undergraduate student indicated the Assistant Provost directed her to ask the individuals to cash the checks and return most of the funds to him. One of these individuals stated he cashed two $2,000 checks, kept $500 from the first check and $250 from the second check, and returned the balance to the student.

Other individuals who received unauthorized payments were the Assistant Provost's nephew and the nephew's girlfriend. The girlfriend said the Assistant Provost's nephew told her the University owed him money for lawn services and a University check was written in her name because he had misplaced his identification card. She said the two of them collected the check written to her and cashed it at a check cashing company.

The Office of the State Auditor further reviewed the 2003 and 2004 statements of the credit card issued to the Assistant Provost by the University. The results of that review found delinquency charges, a notice of account cancellation, and a notice to assign the account to a collection agent. Therefore, these findings lend credibility to the original complaint filed with the Office of the State Auditor asserting that Assistant Provost Dr. Franklin B. Carver's actions were inappropriately taken to help make his credit card payments.

Further findings in the report found two employment forms initiated by the Assistant Provost for an unqualified student that contained false authorization signatures. One of the forms verifies student enrollment in the graduate school and potential payments on the graduate assistant contracts of $21,664. Based on the statements from the Assistant Director of the Scholarships and Financial Aid Office, it appears an attempt was made to bypass the Scholarships and Financial Aid Office by false pretense.

Other false documentation was found authorizing honoraria payments that included false information. Three forms stated individuals had "Dr." as their title, which when questioned by auditors said they did not hold a doctoral degree. A letter found in the University's records was addressed to the Assistant Provost from one of the individuals who received payment. The individual indicated she had never seen the letter and was misrepresented as having a doctoral degree and having the title "Director of the Centre for Biodiversity and Conservation Biology." Additionally, she claimed the signature on the letter was not her signature. All of the honoraria forms containing false information were approved solely by the Assistant Provost Dr. Franklin B. Carver.

In response to the Investigative Audit by the Office of the State Auditor, NCCU has promised to review its procedures to ensure that they are in compliance with federal and state regulations and where appropriate, make the necessary adjustments to further reduce the possibility of fraud. Consistent with state statutes, the University will require the Assistant Provost to repay the funds. The University will continue to coordinate with appropriate law enforcement authorities to determine whether the Assistant Provost's conduct constitutes a violation of North Carolina General Statutes or other regulation or law. In addition, the University should take appropriate disciplinary action against the Assistant Provost.

The findings of the State Auditor's investigative audit of the Assistant Provost and Associate Vice-Chancellor of Academic Affairs, Dr. Franklin B. Carver, have been referred to the US Attorney's Office Middle District, District Attorney for North Carolina Judicial District 14 and the North Carolina State Bureau of Investigation.

The State Auditor Leslie Merritt made the following comment regarding the North Carolina Central Investigative Review:

"North Carolina Central University has a solid reputation and I hope that the actions of one individual do not taint the positive work they are doing to educate North Carolinians. Through the course of this investigation, the incoming Chancellor, Dr. Charles Nelms, has been supportive and proactive in drilling down to the root-cause of these findings. I have full confidence in Chancellor Nelms' ability to put these issues in the past and lead NC Central forward with continued academic excellence in the coming generations."

County NC News has provided you with a copy of the North Carolina Central Investigative Review.

Finally, it really makes me wonder what is actually being taught within our public educational system? Sadly, today a person struggles through years of costly schooling to earn a doctorate, only to find others falsifying these credentials as if they were achievement awards from a stationary store. Ethics people, ethics.