BALTIMORE — A legislative audit released on May 21 has uncovered significant payroll discrepancies within the Maryland Transit Administration (MTA). The report reveals that over 90 employees who had been terminated remained on the payroll for periods ranging from two weeks to three years after their dismissal.
The audit, which examines the timeframe from July 1, 2020, to June 30, 2023, included a sample of 15 terminated employees. Of these, nine continued to receive a total of nearly $5,500 in compensation post-termination.
Concerns regarding payroll management are not new for the MTA, as similar issues were noted in two prior audits dating back to November 2018. In response to the latest findings, the MTA announced plans to engage a Third Party Administrator to conduct ongoing audits of healthcare claims, though they do not anticipate implementing this plan until December 30, 2026.
Additionally, the audit raised alarms about the MTA's healthcare spending, which amounted to $174.7 million for active employees and retirees. Auditors found that millions were disbursed without confirming patient eligibility, indicating a lack of oversight.
Transparency issues were also highlighted, with the MTA failing to publicly post $495 million in contracts and awards in a timely manner. Some contracts reportedly took over two years to publish.
Another financial concern was a $600,000 increase in costs for the MTA Call-a-Ride taxi services, which are utilized by vulnerable populations. The audit noted that contractors were reimbursed at rates of $40 per trip, up from $25, without proper authorization. This raised suspicions about potential overcharging by taxi companies.
In response to these findings, the MTA disputed the characterization of the reimbursement rate increase, stating that the adjustment during the COVID-19 pandemic did not constitute a change in contract terms that required formal approval.
Reported by HarborBeat based on WMAR 2 News Baltimore (source).
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