MCPS illegally spent over $1 million in the 2023-24 fiscal year, according to a recent report from the Montgomery County Office of the Inspector General (OIG). The OIG investigates fraud, waste and misuse of funds across Montgomery County Government Organizations.
“During our review, we found inconsistencies in the application of and compliance with procurement law, regulation, and procedures,” the report stated. “We also found issues with MCPS’s record-keeping practices associated with the purchasing process and identified inconsistencies and deficiencies in their Procurement Manual and Financial Manual.”
According to the report, seven vendors were paid more than the spending limit in the FY23-FY24 without evidence of Montgomery County Board of Education authorization. These findings went unnoticed due to the vendors being paid piecemeal in increments that added up to over $25,000.
The OIG found that the problem stemmed from MCPS’s lack of a system that could track payments to vendors, which violates MCPS’s own policy. Since the district cannot easily monitor how much each vendor receives, several purchases went past the $25,000 approval threshold without being reviewed by the board of education, violating state law. Most notably, McDaniel College Inc. was paid over $675,000 without board authorization, though the report did not specify what McDaniel College Inc. was paid for.
The OIG also found multiple cases in which MCPS employees were hired and paid as ‘independent contractors’, including nine current employees, two retirees and one case that violated the district’s own financial manual.
“There is no reasoning why they shouldn’t be transparent with funds, especially those that come from the public,” social studies teacher Mitch Joy said.
The OIG’s findings raised new questions about how the school system tracks money and how long these issues may have gone unnoticed. If an MCPS teacher is being paid under the table, not through MCPS payroll, and as a contractor, it would be illegal and infringe on the legitimacy of a school.
Major funding issues have continued to plague MCPS, such as last year when it was revealed that the construction of Woodward High School had a $39 million budget deficit and a 198 million dollar permit being pulled from the remodeling of Northwood High School.
“[The report] also found issues with MCPS’s record-keeping practices associated with the purchasing process and identified inconsistencies and deficiencies in their Procurement Manual and Financial Manual,” according to MCPS’ Review of Procurement Practices.
Due to the report, MCPS has agreed to several changes in its tracking of payments. The district must publish updated procurement and financial manuals by February 2026, which would clarify spending rules and improve transparency.
A statement on Nov. 17, MCPS claimed the report reflected “practices that predate the current MCPS administration.”
MCPS has also agreed to create a new tool to track spending toward the $25,000 threshold later this month. The goal is to prevent payments from slipping through without proper oversight.
