Audit exposes procurement fraud in US city government

Elizabeth City audit reveals misuse of procurement cards by ex-manager

An audit has uncovered irregularities in procurement card usage by city employees and the former city manager of Elizabeth City. The state auditor's office recommended stricter controls following the investigation, which was triggered by a tip to their hotline.

The audit found that purchase limits were exceeded by city employees and the former city manager, Montre Freeman. Freeman made purchases totalling $7,066, with some exceeding the $500 limit. Evidence of supervisor review or approval was also missing in many of these transactions. The city has had five finance directors in the last two years and spent over $500,000 on contractors to assist the Finance Department. The state auditor made 11 recommendations to improve the city's procurement practices, including tightening controls on procurement card usage and ensuring proper documentation of receipts and purchasing logs.

Freeman, who served as city manager until recently, also used a procurement card for per diem expenses instead of following proper procedures. This is a violation of state regulations regarding the use of government credit cards.

The state auditor's office has recommended stricter controls on the use of government credit cards in Elizabeth City following an audit that uncovered irregularities in procurement card usage. The city has been advised to implement 11 recommendations to improve its procurement practices. The former city manager, Montre Freeman, was found to have made purchases that exceeded limits and lacked proper approval or documentation.