By Adam Pagnucco.
Montgomery County Inspector General Megan Davey Limarzi has issued a memorandum of investigation finding that the county’s police department has misused state grant money. Her memo begins:
The Office of the Inspector General (OIG) recently concluded an investigation into allegations that the Montgomery County Department of Police (MCPD) expended funds received through a Maryland Police Accountability, Community, and Transparency Grant Program (PACT) to pay for services that had not been received.
We found that MCPD’s Management and Budget Division director (MBD director) instructed staff to process an invoice for $396,000 to purchase 30 months of professional services that were to be received after the conclusion of the grant period, despite having been informed on several occasions that contractual work paid for with State grant funds had to be completed within the designated grant period. MCPD’s prepayment for services violated the county’s accounts payable policy and was contrary to the Maryland Governor’s Office of Crime Prevention and Policy’s (GOCPP) intended use of PACT grant funding.
In July 2022, MCPD applied for a state grant to purchase body worn cameras and associated software. In September 2022, the county received $498,060 from the state for FY23 and the grant agreement specified that “grant funds be encumbered, obligated, or expended by June 30, 2023.”
Nevertheless, “On June 29, 2023, MCPD processed a $396,000 payment to a vendor using PACT funds for services that were to be received after the expiration of the grant.” That was exactly one day before the grant money had to be used. The OIG found evidence that MCPD officials were aware of the time restrictions associated with the grant. The OIG wrote:
An MCPD staff member told the OIG that on June 27, 2023, they advised the MBD [Management and Budget Division] director that all contractual work must be completed by the end of the performance period. During this discussion the MBD director continued to press the issue and expressed a willingness to risk an audit finding in order to utilize the grant funds to pay for work outside the grant performance period. Notwithstanding the cautionary advice received by the staff member, the MBD director emailed the IMTD [Information Management and Technology Division] director later that same day with instructions to submit the invoice for processing. The invoice was marked as approved by the IMTD and MBD directors, resulting in a $396,000 payment to the vendor being processed on June 29, 2023, without any of the services having yet been provided to the county.
The OIG found that this violated both state grant requirements and county policy requiring that departments “request payment of supplier invoices only after the supplier has delivered the designated goods or services.”
The OIG communicated its findings to the county’s chief administrative officer and the state and wrote, “We recommend MCPD take appropriate action to address employee violations of policy with regard to the expenditure of PACT grant funds. We further recommend that MCPD take steps to ensure adherence with all grant and contract requirements, and the county’s accounts payable policies.”
One issue that the OIG’s memo does not address is why this happened. Why did MCPD sit on grant money for months on end and then only expend it a day before the end of the fiscal year? And why did they – apparently knowingly – violate both state and county requirements on the money? Also, what is the current status of this money? Did it revert to the state, and if so, must county taxpayers backfill it?
And a final question. Will anyone in county government face discipline for this?