WILMINGTON, N.C. (WECT) – A new report from the North Carolina State Auditor’s Office uncovered a “significant deficiency” in Cape Fear Community College’s internal financial controls.
The 2025 Statewide Single Audit, released this week, found CFCC lacked internal controls “to ensure changes in student enrollment status were reported accurately and timely.”
During the audit, CFCC gave out roughly $21.3 million in federal financial aid to nearly 4,000 students. The college did report enrollment status changes accurately and timely during the period, according to the audit, but didn’t have proper oversight in place, including written policies, assigned responsibilities or proper verification procedures.
“Those internal processes and controls are really important with respect to making sure that the aid program is accountable, and that students, for example, who receive aid have a full understanding of what their responsibilities are,” State Auditor Dave Boliek said in an interview with WECT Friday.
The audit said that without proper controls, “there is an increased risk of errors in future reporting.”
WECT requested an on-camera interview with a CFCC representative to discuss the findings and changes made as a result, but instead received an email statement Friday.
“Cape Fear Community College takes its responsibility to manage federal financial aid seriously and works to ensure everything is handled accurately and in compliance with federal rules,” the statement said. “It’s important to note that no errors were identified in the College’s reporting. To clarify, the auditor’s recommendation wasn’t based on the reported information but on internal processes. The College has since implemented the recommended changes to ensure continued alignment with federal requirements.”
If enrollment status changes aren’t reported correctly, students can enter repayment too early or stay in deferment too long, financial aid eligibility could be calculated incorrectly, and CFCC’s eligibility for federal financial aid programs could be at risk, according to the audit. Enrollment status changes include students moving from full-time to part-time, withdrawing or graduating.
The U.S. Department of Education, lenders and loan services rely on the enrollment status data to review compliance with federal financial aid programs and to manage student loan deferments and payment scheduling.
The State Auditor’s Office recommended CFCC implement formal oversight policies to ensure “accurate and timely reporting of enrollment status.” Those recommendations included assigning clear responsibility for overseeing the reporting process, creating a process for reviewing the accuracy and timeliness of data reported and developing written policies that detail how status changes should be identified and submitted.
In response, CFCC implemented multiple changes in January.
The college’s registrar will now provide the Director of Financial Aid with a copy of the enrollment reports for review. The director will then review a sample of students in the report and correct any changes – once a month for enrollment status changes, and once a semester for graduation status changes, according to the audit. Cape Fear Community College also updated its internal written procedures to incorporate that review process.
“We’re confident right now that things seem to be on the right path,” Boliek said. “Our job is not just to point things out, and point fingers. Our job is to identify things and to assist institutions – like Cape Fear Community College – on doing things better moving forward.”
The audit also reviewed a variety of other state entities, including state colleges such as UNC Wilmington, which Boliek said had no issues during the audit period.
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