Audit: Baltimore City Community College gave over $260K to ‘ghost students,’ other issues

BALTIMORE (WBFF) — A new Maryland state audit is raising concerns about accountability and oversight at Baltimore City Community College (BCCC), after auditors identified more than $260,000 in financial aid awarded to potential “ghost students.”

The findings are part of a sweeping review covering December 2020 through June 2025 that uncovered a series of financial management problems, including questionable contracts, unused purchases, and payroll errors affecting former employees.

According to the audit, BCCC distributed approximately $264,000 in financial aid to 145 individuals that auditors classified as possible ghost students. The college had flagged suspicious enrollments in May 2024 after identifying students registered repeatedly for the same classes despite having no testing history.

However, auditors found that financial aid was still awarded to those students.

The report states that BCCC was not fully aware of the extent of the issue until auditors raised concerns during their investigation. As a result, the college could potentially be required to reimburse the federal government for improperly distributed aid.

The audit notes that ghost student fraud schemes have become increasingly common nationwide, often involving AI-powered bots that submit mass college applications, create fake student accounts, and maintain the appearance of enrollment long enough to collect financial aid refunds.

The ghost student issue was only one of several findings highlighted by auditors.

Among the concerns:

• A $263,000 contract for hospitality training services.
• More than $500,000 in equipment purchases that auditors found were never used.
• Over $638,000 in vendor payments that were not consolidated, which auditors said circumvented oversight and transparency requirements.
• Nearly 900 former employees who were not removed from payroll systems for at least two weeks after leaving their jobs.

Auditors found that 71 former employees received payments after separating from the college. Five of those individuals continued receiving regular payroll deposits totaling roughly $29,000, payments the audit said BCCC “could not readily justify.”

The review also identified inadequate controls over corporate purchasing card activity.

Del. Steve Arentz, the lone House Republican on the Maryland’s Joint Audit and Evaluation Committee, called several findings “egregious” and said repeated audit issues point to broader accountability problems.

He noted that some deficiencies identified in the report had appeared in previous audits, raising concerns about whether corrective actions are being enforced.

“If you do this in another business, another industry, you’re fired,” Arentz said.

When asked why taxpayers should trust state government to be good stewards of public funds, Arentz offered a blunt assessment.

“I don’t see how they could have that faith, to be honest with you,” he said.

Baltimore City Community College said it agrees with the audit findings and is taking steps to strengthen oversight and internal controls. The institution says it is working to address the deficiencies identified and improve accountability in the months ahead.

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