Fayetteville State University employees are under investigation for unapproved purchases and misuse of university-issued credit cards.

According to an investigative audit from the North Carolina Office of the State Auditor (OSA), staff members in Fayetteville State University's Office of Strategic Communication (OSC) used FSU-issued travel cards and purchasing cards for undocumented and unallowed credit card purchases totaling $692,239 during 2022 and part of 2023.

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The misspent amount of $692,239 includes:

  • $575,123 spent in purchasing cards, unallowable per university policy
    • $84,469 spent in travel card purchases, unallowable per university policy
      • $322,743 on P-card and T-card purchases without sufficient documentation

        The total of $692,239 comes from the three items above, excluding $290,096 worth of purchases that were both unallowable per university policies and did not have sufficient documentation.

        Additionally, more than $165,000 in university funds was paid to employee-owned businesses. The investigation revealed employees did not disclose the businesses in which they had a financial interest.

        The auditor’s report said unallowed payments were made between Jan. 1, 2022, and Aug. 31, 2023. The purchases were made with cards assigned to the university’s former associate vice chancellor for the Office of Strategic Communications, the former director of digital strategy and the assistant vice chancellor for marketing and creative services, the report said. The report didn’t identify the employees.

        Joy Cook was the associate vice chancellor for strategic communications during that time period, according to a university release announcing her hiring. Morgan Osley Pratt served as director of digital strategy during that time, according to university documents. Tina Raines was named assistant vice chancellor for marketing and creative services in November 2022. The university's directory lists her as director of marketing and strategic communication.

        Cook this month was named director of communications for the North Carolina House Democratic Caucus. She has since resigned from the position, Amanda Eubanks, the executive director of the House Democratic Caucus, said in a statement. Cook and Raines didn’t immediately respond to messages seeking comment late Tuesday. Efforts to reach Pratt were unsuccessful.

        The audit report alleges the associate vice chancellor and the director of digital strategy used travel cards to pay consultants nearly $72,000. The investigation revealed the two spent more than $1,000 so they could arrive early and fly first class to a conference in New York City. They spent hundreds of dollars at a spa during the first day of the conference, the investigation suggests.

        Additionally, the report indicates the director of digital strategy spent hundreds of dollars on a plane ticket for her young son to accompany her on a trip to Orlando, Florida.

        In total, the former associate vice chancellor, the former director of digital strategy and the assistant vice chancellor for marketing and creative services within the OSC spent more than $322,000 on undocumented purchases, the report states.

        The University released a statement saying:

        “When the University evaluated its findings, we discovered that Tina Raines, assistant vice chancellor for marketing and creative services, adapted to using her purchasing card to pay invoices for expenses she did not incur, totaling approximately $12,000 of the $692,239. As noted in the University’s response to the audit, one of the corrective steps FSU took to address this was to provide the AVC for Marketing and Creative Services individual counseling on procurement card usage, retraining on procurement card policies, and participation in compliance training provided by the Office of Risk and Compliance.”

        FSU submitted a statement to the state auditor's office calling the findings "egregious and disturbing," noting it "acted quickly and decisively" to fix the issues.

        FSU agreed to hire internal auditors and issue campus-wide training on how to use purchase and travel cards.

        The State Bureau of Investigation will receive a copy of the audit to determine if there is sufficient evidence to pursue criminal charges.

        Editor's note: An earlier version of this story incorrectly stated the total spent in travel and purchase cards was in excess of $1 million. The story has been revised to indicate listed spending amounts are included in the total of $692,239.