An investigative report issued by the North Carolina Office of the State Auditor (OSA) has called attention to what appears to be a pattern of questionable spending practices within the Elizabeth City government. According to the report, city officials—including the former City Manager—have been loosely handling taxpayer dollars, particularly through the use of procurement cards (P-Cards).
These P-Cards, meant to streamline the acquisition of goods and services for government operations, have been used to quickly cover an array of food-related expenses amounting to tens of thousands of dollars. Among these charges is an eyebrow-raising $32.99 per plate for Stuffed Flounder at a team dinner and a $705 brunch tab at Sagos on the River, as detailed in an extensive review which looked into $79,166 worth of P-Card transactions made by city employees and $14,640 by the former City Manager. In a release from the North Carolina Office of the State Auditor (OSA), the agency listed several instances of spending that strayed from Elizabeth City’s Purchasing Manual.
Among the breaches noted were the absence of supervisory reviews or approvals, going beyond the set $500 limit for individual purchases, the lack of detailed receipts, and the omission of required monthly purchasing logs and signatures from supervisors on those logs. The OSA's findings have led to a call for increased oversight and stricter controls on the use of government-allocated credit cards.
"The State Auditor’s Office is committed to responding to the public’s concerns, and our work in Elizabeth City is an example of that response," said State Auditor Dave Boliek. The investigative report culminated with recommendations intended to urge Elizabeth City's officials to seriously rein in on the government card use and to enhance accountability measures. This suggestion is made all the more pressing by Elizabeth City's revolving door of Finance Directors – five since 2022 – and their reliance on costly contractors for the finance department to the tune of over half a million dollars in two years, as per the North Carolina Office of the State Auditor (OSA).
In a response included within the report, the current City Manager acknowledged the findings and outlined the steps the city is poised to take in response to the OSA's recommendations. These responses detailed a forward path meant to tighten fiscal oversight within the city’s operations.
