State Audit Faults MSDE Oversight, Puts Prince George's County Schools at Risk

A January 22, 2026 audit by the Office of Legislative Audits concluded that the Maryland State Department of Education (MSDE) did not provide adequate oversight of local education agencies' hiring and financial controls, leaving Prince George's County Public Schools and other districts exposed to compliance, safety and funding risks.

Auditors reported that required pre-hire screenings and employer verifications were not consistently performed by some local education agencies. Missing or incomplete background checks raise operational and legal exposure for Prince George's County Public Schools, complicating personnel decisions and potentially affecting student safety and liability for the county.

The audit also identified weaknesses that put federal reimbursements at risk. MSDE and certain local education agencies delayed requests for reimbursement, costing at least millions of dollars in forgone interest. Auditors warned that some funds tied to COVID-era grants are at risk of being lost if documentation and timing issues are not resolved, a development that could reduce the dollars available for classroom supports and pandemic recovery programs in Prince George's County.

Procurement practices drew particular scrutiny. Auditors found roughly $1.2 million awarded without competitive processes. For some of those non-competitive awards auditors could not verify that vendors delivered the contracted goods or services. Because of the lack of documentation, the Office of Legislative Audits referred aspects of the procurement findings to the Maryland State Attorney General's criminal division for further review.

MSDE agreed with many of the audit's findings and pledged corrective steps. Among the measures MSDE proposed are annual attestations from local education agencies certifying compliance with pre-employment screening requirements, and new regulations intended to strengthen statewide monitoring of hiring, background checks and grant accounting. Those steps, if implemented, would change reporting and certification procedures that Prince George's County Public Schools must follow and could trigger closer scrutiny of the county's personnel files and reimbursement practices.

For local residents the audit signals potential changes to how the state enforces school hiring and grant rules, and it raises the prospect of recovered funds or altered funding flows that could affect programs in Prince George's County. Parents, teachers and taxpayers should expect follow-up actions from MSDE and possible inquiries from the attorney general's office. The next developments to watch are the specific regulatory proposals from MSDE, the schedule for required attestations from county schools, and any results from the attorney general's review that could lead to financial recoveries or further enforcement.