$32.99 Stuffed Flounder, Fast and Loose Spending by Elizabeth City Officials Uncovered in Investigative Report

The North Carolina Office of the State Auditor (OSA) has releasedan investigative reporton the City of Elizabeth City, identifying thousands of dollars of food expenditures and noncompliance with purchasing policies by city employees and the former City Manager.

Following an allegation received by the State Auditor's Tipline, OSA investigated Elizabeth City's use of procurement cards (P-Card), which function as government credit cards. OSA reviewed $79,166 worth of P-Card purchases by city employees, and $14,640 worth of P-Card purchases by the former City Manager. Food purchases investigated include:

• $705 at Sugarcane Grill and Lounge for brunch for the American Defense Team.
• $505 at Waterman's Grill for a team dinner, including eight orders of Stuffed Flounder costing $32.99 each.
• $447 at Jersey Mikes for the Capital Budget Retreat.
• $318 at Sagos on the River for a finance team lunch for a successful audit.
• $231 at Colonial Cafe for an administrative assistant appreciation breakfast.
• $180 at Firehouse Subs for Administrative Professionals Day.
• $147 at Toyama Japanese Restaurant for a finance meeting.
• $137 at Toyama Japanese Restaurant for a budget meeting lunch.
• $133 at Bojangles for the Capital Budget.
• $415 at Chick-fil-A for the Fire Department's live burn training.
• $338 at Electric Garden for a wellness program event.
• $272 at IHOP for administrative assistant day breakfast.
• $154 at In & Out Café for a finance meeting lunch.

While purchases of food are not explicitly prohibited, OSA found both the former City Manager and city employees violated Elizabeth City's Purchasing Manual when making P-Card purchases. Violations include but are not limited to:

• Not including evidence of supervisory review or approval.
• Exceeding the $500 purchase limit.
• Not providing itemized receipts to support purchases.
• Employees not submitting monthly purchasing logs.
• Employees not including signature of a supervisor or department head on purchasing logs.

"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. "Our investigation shows that tighter controls are needed on the use of government credit cards in Elizabeth City. We've delivered that recommendation to the city's management, and will remain active in our mission to bring accountability to government in North Carolina."

OSA also found that Elizabeth City has had five Finance Directors since August 2022, no permanent director as of September 2025, and has spent over half a million dollars on contractors to assist the Finance Department over the past two years. The report includes 11 recommendations for Elizabeth City officials to take, as well as an official response from the City Manager.