Audit 376797

FY End
2025-06-30
Total Expended
$817,522
Findings
1
Programs
6
Organization: City of Elizabeth City (NC)
Year: 2025 Accepted: 2025-12-22

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1165874 2025-003 Material Weakness Yes I

Programs

ALN Program Spent Major Findings
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $370,163 Yes 1
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $338,715 Yes 0
66.468 DRINKING WATER STATE REVOLVING FUND $46,391 Yes 0
15.904 HISTORIC PRESERVATION FUND GRANTS-IN-AID $25,000 Yes 0
16.070 Law Enforcement Mental Health and Wellness Act $20,950 Yes 0
16.726 JUVENILE MENTORING PROGRAM $16,303 Yes 0

Contacts

Name Title Type
MWM9ANGYMEB7 Brian Lewis Auditee
2526217353 Danna Layne, CPA Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of federal and State Awards (SEFSA) includes the Federal and State grant activity of the City of Elizabeth City under the programs of the federal government and the State of North Carolina for the year ended June 30, 2025. The information in this SEFSA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards ( Uniform Guidance) and the State Single Audit Implementation Act. Because the SEFSA presents only a select portion of the operations of the City of Elizabeth City, it is not intended to and does not present the financial position, change in net position or cash flows of the City of Elizabeth City.
Expenditures reported in the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the costs principles contained in the UG, wherein certain types of expenditures are not allowable or are limited as to reimbursements.
The City has elected not to use the 10-percent de minimus indirect cost rate as allowed under the UG.
NC Department of Environmental Quality-Division of Water Infrastructure for the fiscal year ended June 30, 2025. State Revolving Loan, $523,864.

Finding Details

The Compliance Supplement states that all contracts have received prior approval. The City failed to obtain contracts per the City's purchasing policy. The City's purchasing policy states that any expenditure for goods and services over $50,000 requires a contract. Two fo the four purchases by the grant funds exceeded $50,000. No contract was suuplied for the software purchases of $76,439 and $251,739.