Report finds MCPS spent $1M without Board of Education approval

MONTGOMERY COUNTY, Md. - Just one month after Montgomery County Schools Superintendent Thomas Taylor says the system is running out of money, the Office of Inspector General says MCPS violated state law spending some of the money they have left.

On October 14, Taylor said to the school board in a presentation that it was time for "hard truths" regarding budget problems for the school district. 

READ MORE: 'Hard truths': Montgomery County superintendent calls out problems within district

A report released Monday says MCPS broke state law and its own rules for procurement – essentially, when the government spends taxpayer and student money on non-capital projects, things that are typically lower-cost and short-term projects. 

The report examined procurement practices between October 1, 2022, and September 30, 2024, finding $1 million was spent without board approval. The report does not reflect the exact dates for each payment. 

Dig deeper:

There are procurement laws to ensure MCPS is a "responsible steward" of taxpayer dollars. The OIG says MCPS broke state law by making $1 million in purchases without Board of Education approval.

One procurement rule at issue — the board is supposed to approve purchases over $25,000. That helps prevent fraud, so someone doesn’t make an under-the-table deal to pass off government contracts to a friend or for a kickback.

The $25,000 threshold also triggers a competitive bidding process to make sure MCPS gets the best deal and increases their bargaining power.

The Inspector General identified seven suppliers receiving over $25,000 without board approval — totaling over one million dollars. One problem — at least two of these companies received multiple payments under $25K but adding up well over that threshold. MCPS didn’t catch or anticipate the aggregated total.

The backstory:

This comes just two weeks after the State Board of Education tossed out a $168 million contract for electric buses, calling it "unreasonable" and "illegal."

"I’m glad that they’ve gotten out of this contract," said Montgomery County Council Will Jawando. "They’re seeking money back from the folks. We’re going to keep monitoring it as the fiscal agent here and the county council, but it’s the right thing here. We need to move in that direction. But you need to do it in a way that’s monitored with a good partner where we don’t lose money."

MCPS agreed with the recommendations made by OIG to fix these problems, including creating an expenditure report to flag when suppliers are approaching the $25,000 threshold.

What's next:

FOX 5 DC has reached out to MCPS for further comment but have not yet heard back.