Audit finds Maryland schools ‘didn’t know how to use’ state funds


Maryland leaders are launching investigations into school systems statewide amid confusion over state funding.Millions of dollars are being sent from the state government to nearly two dozen schools under the Blueprint for Maryland’s Future. A new report by the Maryland Office of the Inspector General found a serious lack of oversight for how the funds are being used, leaving millions unspent or even sent back to the state.”We received a complaint in regards to the use of the funds and that is what initiated our review,” inspector general for education Richard Henry said.The complaint alleged a community school manager “potentially mismanaged” the funds, prompting an investigative audit of eight schools.”What we found was a lot of the schools just didn’t have an idea of how to spend the money. They were reaching out to the Maryland State Department of Education for guidance, and unfortunately, there was no one to provide them the guidance,” Henry said.Inspectors also found that the position for training was vacant. In some cases, school districts were calling a dead phone line.”The school systems took it upon themselves to look for vendors and hire vendors to educate them on how to spend this money,” Henry said.It’s not clear how much money was spent on these vendors.Auditors looked at $233 million in funding from July 2019 through Jan. 31, 2023.”Of those funds, we could identify that $12.3 million which was available to the school systems was not used. In addition to that, we found that the money that had been physically distributed to the school systems, about $1 million, was returned, because again, they just didn’t know how to use the funds,” Henry said.In 2022, Anne Arundel County Public Schools was allocated nearly $3 million, of which 13% went unspent.The same year, Baltimore County Public Schools was given nearly $5.5 million. More than half was unused.Henry said his auditors don’t yet know exactly why the money wasn’t spent.”We have eight individual audits that we’ll be providing in the coming month, and those audits will actually show a little bit further and get into the weeds of why things weren’t spent at the schools we identified,” he said.Henry outlined seven recommendations to MSDE, including pausing the grant program entirely, but state law says the money must keep flowing.Due to a change in state law, the funds will be unrestricted going forward, making an audit of how the money is spent nearly impossible.

Maryland leaders are launching investigations into school systems statewide amid confusion over state funding.

Millions of dollars are being sent from the state government to nearly two dozen schools under the Blueprint for Maryland’s Future. A new report by the Maryland Office of the Inspector General found a serious lack of oversight for how the funds are being used, leaving millions unspent or even sent back to the state.

“We received a complaint in regards to the use of the funds and that is what initiated our review,” inspector general for education Richard Henry said.

The complaint alleged a community school manager “potentially mismanaged” the funds, prompting an investigative audit of eight schools.

“What we found was a lot of the schools just didn’t have an idea of how to spend the money. They were reaching out to the Maryland State Department of Education for guidance, and unfortunately, there was no one to provide them the guidance,” Henry said.

Inspectors also found that the position for training was vacant. In some cases, school districts were calling a dead phone line.

“The school systems took it upon themselves to look for vendors and hire vendors to educate them on how to spend this money,” Henry said.

It’s not clear how much money was spent on these vendors.

Auditors looked at $233 million in funding from July 2019 through Jan. 31, 2023.

“Of those funds, we could identify that $12.3 million which was available to the school systems was not used. In addition to that, we found that the money that had been physically distributed to the school systems, about $1 million, was returned, because again, they just didn’t know how to use the funds,” Henry said.

In 2022, Anne Arundel County Public Schools was allocated nearly $3 million, of which 13% went unspent.

The same year, Baltimore County Public Schools was given nearly $5.5 million. More than half was unused.

Henry said his auditors don’t yet know exactly why the money wasn’t spent.

“We have eight individual audits that we’ll be providing in the coming month, and those audits will actually show a little bit further and get into the weeds of why things weren’t spent at the schools we identified,” he said.

Henry outlined seven recommendations to MSDE, including pausing the grant program entirely, but state law says the money must keep flowing.

Due to a change in state law, the funds will be unrestricted going forward, making an audit of how the money is spent nearly impossible.



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