Fayetteville State communications staff racked up more than half a million dollars in improper credit card charges from January 2022 to August 2023, according to a report from the state auditor’s office published Tuesday.
The report said that the $692,239 in transactions with insufficient documentation and/or unallowed by university policies included first-class flights, a ride to a New York City spa, hotel charges, food and payments to businesses owned by former FSU employees while they were still employed by the school.
Findings of the investigation are being referred to the State Bureau of Investigation to determine if there is enough evidence to pursue criminal charges, the report said.
The transactions were charged to purchasing and travel cards issued to three FSU employees identified by their job titles in the report. Two of the employees are no longer employed by the university.
University records show the following women served in those roles during the investigation review period: Joy Cook, former associate vice chancellor for strategic communications; Morgan Osley-Pratt, former director of digital strategy; and Tina Raines, who continues to serve as the assistant vice chancellor for marketing and creative services.
Cook was hired as the director of communications for the North Carolina House Democratic Caucus, according to a May 8 press release from the organization, but she resigned last week, House Democratic Caucus director Amanda Eubanks said in an email Tuesday.
“We hired Joy Cook off of her merit and over 20 years of nationally recognized communication experience. Our hiring process is extremely competitive, and her references went through a thorough review and vetting process of which Ms. Cook had exemplary reviews. She has resigned her position, and the House Democratic Caucus is focused on more pressing issues such as funding education and the attack on DEI, which impacts many North Carolinians,” she wrote.
In January, Cook announced that Joy Cook Public Relations changed its name to Trust Communications. On its website, she is listed as the CEO and the company bills itself as a crisis management and public relations firm.
Osley-Pratt’s LinkedIn profile states she is the chief of staff for Trust Communications, where she has worked since November 2020.
Cook and Osley-Pratt did not immediately respond to calls, text messages and emails requesting comment on Tuesday.
Raines, still employed by the university, did not respond to emails and phone calls Tuesday. An automated email response said she was out of the office. University media relations did not immediately return a request for comment regarding the investigation Tuesday.
More:Read the auditor’s report
Breakdown of the improper purchases to purchasing and travel cards
Cook, Raines and Osley-Pratt used purchasing cards for 208 improper purchases totaling $575,123, the report said:
- $464,627 was payments made to individuals, consultants or employees
- $91,340 was for payment of invoices
- $13,650 was for various items that were unallowable per university policy, such as IT hardware or software, travel or gifts
- $5,506 were Amazon.com purchases
Cook and Osley-Pratt used travel cards for 88 improper purchases totaling $84,469, the report said:
- $73,068 was paid for 31 purchases that were not specifically for travel, including:
- $71,792 in payments to consultants
- $1,276 paid via CashApp
- $11,401 were purchases unnecessary for university business, for example:
- $5,395 for 20 purchases for lodging within 35 miles of the university. According to university policy, lodging must involve a travel destination at least 35 miles from the employee’s duty station.
- $1,843 in unnecessary travel expenses while attending a business-related conference in New York City, including:
- $1,009 to arrive in New York City two days before the conference, including $270 in airline change fees and $7,396 for hotel and food charges
- $368 to fly first class to New York City and premium economy on the return trip
- $287 for ride share to and from a spa during the first day of the conference
- $179 for ride share to and from a single dinner
- $299 for a roundtrip airline ticket for the former director of digital strategy’s young son to accompany her on a trip to Orlando, Florida
University cards were used to pay businesses owned by FSU employees
A total of $165,570 was paid to businesses in which Fayetteville State communications employees had a financial interest, resulting in a conflict of interest, the report said:
- $48,733 was paid to a business owned by the former director of digital strategy, Morgan Osley-Pratt
- $5,600 was paid to a business owned by the former associate vice chancellor, Joy Cook
- $56,950 was paid to a business owned by the former copyrighting assistant, Alta Braxton
- $54,287 was paid to a business owned by the former digital content coordinator, Ashley Moore
Fayetteville State director of media relations Devon Smith provided the names of the former copyrighting assistant and former digital content coordinator to The Fayetteville Observer on Tuesday.
State auditor’s recommendations to Fayetteville State
The state auditor recommends that Fayetteville State determine if they should seek reimbursement from cardholders for the improper purchases, according to the report.
The auditor also recommends that the university take action to improve compliance, including periodic random audits to purchases made on university-issued cards, and quarterly email reminders to update their financial disclosure forms, should a conflict arise during the year, the report said.
What was the university’s response?
In a May 14 letter to the auditor from university Chancellor Darrell T. Allison, Allison wrote that the university agrees with the findings regarding the “egregious and disturbing” allegations and seeks to restore payment for the unallowable transactions.
Allison’s letter outlines the steps the university has taken to act on the auditor’s recommendations, including:
- Two of the employees identified in the report, Cook and Osley-Pratt, are no longer employed by the university
- Campus-wide retraining on purchasing and travel card policies
- Hire of a new associate vice chancellor to oversee purchasing and contracts
- Hire of an experienced purchasing manager
- Recruitment of two additional purchasing department positions to be filled by Aug. 1
- Hire of a veteran auditor who serves as the director of internal audit
- Pending hire of an additional internal auditor during the 2024-2025 fiscal year
- Restructuring the communications office so that only one individual will be issued a purchasing card by the end of May
- Assistant vice chancellor for marketing and creative services, Tina Gaines, received counseling on using her assigned card to pay invoices on behalf of individuals who possessed their own card
“We have a high degree of confidence that implementing these corrective actions coupled with stringent and on-going monitoring will sufficiently address the recommendations provided,” Allison wrote.
Allison sent an email Tuesday to the Bronco community to make them aware of the misuse of funds. In it, he highlighted the steps FSU is taking to implement stricter financial protocols. He asked recipients to stand together as the school overcomes the “teachable moment.”
“Continue to represent FSU proudly and thank you for being the best part of Bronco Nation,” he wrote.
This is a developing story and will be updated as new information becomes available.
Reporter Taylor Shook can be reached at [email protected].
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