BALTIMORE — A recently completed legislative audit of Baltimore City Community College (BCCC) raises several red flags.
One major revelation accuses BCCC of awarding approximately $264,000 in financial aid to 145 students who are believed to be fake.
"This often involves AI-powered bots that mass-apply to colleges, create fake accounts, and submit fake assignments to maintain the illusion of enrollment long enough to receive financial aid refunds," the audit states.
While auditors allege a lack of record keeping, it was BCCC in May of 2024 who reportedly flagged a number of suspicious registrations.
"BCCC identified students registered for the same courses multiple times, registered for multiple courses that did not require prerequisites, or that had no prior test history," the audit reads.
Yet still, apparently without even knowing it, BCCC issued financial aid despite no further authenticity verification.
"BCCC was unaware that it had awarded and disbursed these funds until we brought it to their attention," the audit continues.
In response, BCCC said they agreed with the audit's finding, sharing reforms they're implementing.
"BCCC is implementing a centralized tracking process for all accounts identified as potentially fraudulent. This process requires documentation of review actions, status, and resolution outcomes. Financial aid disbursements are restricted for all flagged accounts through system and manual holds until identity, enrollment, and eligibility are verified and all conflicting information is resolved," BCCC wrote. "In addition, BCCC is establishing formal procedures to ensure that suspected fraud cases are evaluated for referral to the U.S. Department of Education Office of Inspector General."
As result of the potential loss in funds, it's possible BCCC will have to reimburse the federal government from whom a lot of it was allocated.
"BCCC will coordinate with the Office of the Attorney General, the U.S. Department of Education, and the Maryland Higher Education Commission (MHEC) to determine whether any federal or state funds associated with identified accounts must be returned," BCCC wrote. "For accounts determined to involve improper or fraudulent activity, BCCC will ensure if applicable that all required adjustments are made, including reversal and return of Title IV funds in accordance with federal requirements."
Financial aide wasn't the only problem found in the audit.
There were also payroll issues, which allowed for ex-employees to be paid even after their departure.
Five such former employees received approximately $29,000 in payouts despite having left BCCC well prior.
According to the audit, at least one individual stayed on the payroll 1,526 days (50 months) after they'd left the college.
BCCC, in their response, agreed, vowing to implement "a formalized separation process to ensure that employees are timely and accurately removed from the payroll system upon termination."
A majority of the audit's findings are repeat violations from prior reviews that went uncorrected.
The latest audit can be read below.
