A report released Monday by the Montgomery County Office of the Inspector General found inconsistencies in how Montgomery County Public Schools handled its procurement process during fiscal years 2023 and 2024.
To keep schools running, the Procurement Division in Montgomery County Public Schools oversees buying classroom supplies, non-capital construction related material and acquiring system wide services, among other purchasing tasks. All these purchases had to be made under strict procurement laws. In the last two fiscal years, those purchases were roughly around $200 to $300 million annually.
OIG Findings
The OIG found there are no standard procedures on how MCPS staff should document purchases, and required records are often incomplete or scattered across multiple systems. Staff often relies on personal judgment or unofficial processes, leading to inconsistent practices.
Some of the key findings in the report state MCPS ignored Maryland law and its own regulations by making purchases over $25,000 without Board of Education approval. Additionally, seven vendors received payments above the threshold in FY23 and FY24 with no evidence of Board authorization.
Tracking Expenses and Employment Issues
MCPS lacks a system to track or aggregate vendor payments, causing purchases to slip past required oversight. Additionally, the OIG found multiple cases where MCPS employees were hired as independent contractors. Nine employees were paid as suppliers, two retirees were paid as contractors as well. And one lacked required approval, in violation of MCPS’ Financial Manual.
MCM reached out to the MCPS Communications Office for comment but had not received a response by the time this story was ready to publish.
OIG Report Conclusion
The Office of the Inspector General concluded its report with a memorandum sent in October to MCPS Superintendent Dr. Thomas W. Taylor. It found significant gaps in oversight and a lack of internal controls needed to comply with procurement laws. The OIG warned the current systems exposes MCPS to the risk of waste, mismanagement, and potential fraud.
MCPS Response and Timetable
In response, MCPS Superintendent Dr. Thomas Taylor agreed to the key findings and described some actions the school system is taking.
Here is a portion of the response from Dr. Taylor sent out late Monday afternoon:
“As the new superintendent, I am frustrated to continue to discover operational challenges that originated prior to this administration and should have been corrected long ago. Accurate processes and strong internal controls are not optional—they are fundamental. Our community’s trust depends on our discipline, and so does my own confidence in our work moving forward. We will address these findings directly, we will correct the underlying systems, and we will stay with this work until it is done—because it must be done.”
MCPS will work to publish updated Procurement and Financial Manuals by February of 2026. A tool to track spending toward the $25,000 approval threshold will be created by December of 2025. It will implement controls to prevent employees from being hired as contractors.
OIG Next Steps
All recommendations from the OIG are currently being evaluated by Montgomery County Public Schools. The verification, correction, and implementation process is underway. The OIG will oversee each phase to ensure that changes are completed properly and that taxpayers’ dollars are protected.
