A recent state audit of the University of North Alabama found that the school failed to verify students’ in-state residency properly, in violation of Alabama law.
In its report covering October 1, 2022, through September 30, 2024, the Alabama Department of Examiners of Public Accounts identified a key compliance issue. UNA did not obtain the required residency certifications under state law. That statute governs when students qualify as in-state for tuition purposes and mandates that institutions maintain formal documentation to prove residency.
Without those certifications, students who should have been classified as out-of-state may have been incorrectly charged lower, in-state tuition rates.
The audit was conducted by the Department of Examiners of Public Accounts, while the university’s financial statements for the relevant fiscal years were audited by the private firm Mauldin & Jenkins, LLC.
Residency certification is a routine administrative task. But for the state, it is a key legal requirement that protects the integrity of Alabama’s tuition system.
Public universities charge significantly lower rates to in-state students, and granting those rates to ineligible individuals can reduce expected revenue and misalign enrollment data. In its Institutional Student Profiles from Fall of 2024, the Alabama Commission on Higher Education reported that of 10,204 enrolled students, 7,461 were in-state students.
State law lays out strict rules for how Alabama’s public universities distinguish between resident and nonresident students for tuition purposes. Under the Code of Alabama, individuals who claim in-state status must formally certify that they live at a specific Alabama address, intend to remain there indefinitely, and have stronger ties to Alabama than any other state.
For a public institution, even small compliance lapses can become liabilities, particularly at a time when lawmakers are scrutinizing higher education spending and demanding transparency from state agencies.
The report did not identify fraud or financial misappropriation. Instead, the residency certification points to an oversight in internal controls or in the enforcement of university procedures.
UNA, a regional public university offering undergraduate, graduate and doctoral programs, undergoes regular financial review. Despite consistently clean financial audits, administrative compliance issues such as this can signal the need for improved processes.
The Department of Examiners of Public Accounts expects corrective action.
“The University should implement policies and procedures to ensure residency certifications are obtained for resident students in accordance with the Code of Alabama 1975, Section 16-64-3,” the recommendation reads.
Failure to address the issue could lead to further scrutiny or corrective measures from state oversight bodies.
