The October 22, 2014 release of the Wainstein Report[174] alleged institutionalized academic fraud that involved over 3,100 students and student athletes, over an 18-year period from 1993 to 2011 that began during the final years of the Dean Smith era, challenged "The Carolina Way" image.[175] The report alleged that at least 54 players during the Dean Smith era were enrolled in what came to be known as "paper classes." The report noted that the questionable classes began in the spring of 1993, the year of Smith's final championship, so those grades would not have been entered until after the championship game was played.[176] In response to the allegations of the Wainstein report, the NCAA launched their own investigation and on June 5, 2015[177] the NCAA accused the institution of five major violations including: “two instances of unethical conduct and failure to cooperate“ as well as “unethical conduct and extra benefits related to student-athletes' access to and assistance in the paper courses; unethical conduct by the instructor/counselor for providing impermissible academic assistance to student-athletes; and a failure to monitor and lack of institutional control".[178] In October, 2017, the NCAA issued its findings and concluded "that the only violations in this case are the department chair's and the secretary's failure to cooperate."[178]

Established in 1979, the Curriculum in Public Policy Analysis was one of the first undergraduate degree programs in public policy, and a charter member of the national Association for Public Policy Analysis and Management. It was augmented in 1991 by an interdisciplinary PhD Curriculum in Public Policy Analysis. In 1995 the two curricula were combined and began recruiting their own core faculty. In 2001 the combined curriculum became the present Department of Public Policy.

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