State Auditor’s Office Finds Tuition Waiver Oversight Issues at Valley City State University

An audit of Valley City State University (VCSU) for the biennium that ended on June 30, 2025, has found the campus did not consistently follow its own procedures for documenting and approving waivers. Tuition waivers reduce the amount a student pays. When waivers are granted, the university must cover the cost through other funding sources, which can include general fund appropriations. Without proper documentation, taxpayers may be supplementing tuition for waivers that lack clear eligibility support.
 

Cultural Diversity Waiver
VCSU awarded $192,965 in cultural diversity waivers to 131 students during fiscal years 2024 and 2025. Our team found the campus did not have required applications, approvals, essays, or documentation showing meetings with the Director of Diversity and Inclusion. Because documentation was missing, we could not confirm whether any of the students were eligible.
 

Rural Teacher Support Program Waiver
VCSU awarded $73,050 in rural teacher support waivers to 64 students. Our team found there were missing applications, no verification that students worked for a North Dakota school district, and missing approvals. 
 

In both waiver programs reviewed at VCSU, proper documentation and monitoring were not in place. Because of these issues, our team could not determine whether the waivers were issued to eligible students or achieved their intended purpose.
 

The full audit report can be downloaded here.

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