The North Carolina Office of the State Auditor has released a report that shows Elizabeth City government employees and the former city manager spent thousands of dollars on meals for meeting participants.
After a call was made to the State Auditor’s Tipline, OSA investigated Elizabeth City’s use of procurement cards, which function as government credit cards. OSA reviewed nearly $80,000 in P-Card purchases by city employees and almost $15,000 by the former City Manager.
Those food purchases investigated include more than $700 at Sugarcane Grill and Lounge for brunch for the American Defense Team, and $500 at Waterman’s Grill for a team dinner, including eight orders of Stuffed Flounder costing $32.99 each.
While purchases of food are not explicitly prohibited, State Auditor Dave Boliek said both the former city manager and city employees violated Elizabeth City’s Purchasing Manual.
He said there was no evidence of supervisory review or approval, some meals exceeded the $500 purchase limit, itemized receipts were not provided, and employees didn’t submit monthly purchasing logs signed by a supervisor or department head.
Boliek said the investigation shows that tighter controls are needed on the use of government credit cards in Elizabeth City.
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.
