FAC Explorer

Finding 1165874 (2025-003)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2025-12-22
Audit: 376797
Organization: City of Elizabeth City (NC)
Auditor: NUNN BRASHEAR & UZZELL P A

AI Summary

  • Issue: The City did not obtain required contracts for purchases over $50,000.
  • Trend: Two out of four purchases funded by the grant exceeded the $50,000 threshold without contracts.
  • Follow-up: Ensure compliance with the purchasing policy by obtaining contracts for all future expenditures over $50,000.

Finding Text

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.

Corrective Action Plan

Training for grant manager and all employees of the purchasing division will be mandatory. Grant manager to review all City grants, ensuring that the City complies with each grant agreement's terms. Purchasing Manager will review current purchase order procedures to ensure purchase orders are not approved when formal contracts are required.

Categories

Procurement, Suspension & Debarment

Programs in Audit

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