MARYLAND (WBFF) — A new state audit is raising serious questions about how Maryland spends and oversees taxpayer dollars, finding tens of millions of dollars were wasted on a procurement system that auditors say didn’t work.
According to the audit from the Office of Legislative Audits (OLA), Maryland spent $32.5 million on the eMaryland Marketplace Advantage (eMMA) system — a platform designed to modernize how state agencies solicit bids, manage contracts, and process payments.
However, instead of saving money and streamlining procurement, auditors concluded the system produced “incomplete and inaccurate State procurement records” and failed to function as intended, despite years of development and implementation.
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The contract for the system was ultimately terminated, but auditors said the problems didn’t end there.
Because of severe accounting and record-keeping issues left behind, the state hired an outside accounting firm for an additional $1.6 million to determine the actual balances on outstanding contracts.
Taxpayer advocate David Williams called the findings alarming.
“It’s very concerning,” Williams said. “There could be deeper problems within the state when it comes to the actual projects that this program was supposed to help, and that could lead to a lot of waste, fraud, and abuse in the system.”
Auditors also found the state never attempted to recover damages or impose penalties that were reportedly allowed under the contract.
“They just can’t throw up their arms and say they’re not going to recover any of this money,” Williams said. “There has to be a process.”
Williams stressed the audit comes as Maryland faces another billion-dollar budget shortfall next year, despite lawmakers approving $1.6 billion in new taxes and fees earlier this year.
“In January, when you hear state officials talking about the deficit, I want folks to look back on this audit,” Williams said.
Beyond issues within the new system, auditors pointed to longstanding managerial concerns. The report found at least $2 million in uncollected fees, along with weak spending oversight, missing records, and improperly approved contracts.
In response, the Maryland Department of General Services said it generally agrees with the audit’s recommendations, but disputed auditors’ conclusion that the eMMA system did not function as intended.
Auditors pushed back, reaffirming their findings after reviewing the agency’s response and stating they “continue to believe our finding is accurate based on the facts presented.”
Williams warned the audit could be a sign of broader problems.
“What else is happening within the state where tens of millions of dollars are being wasted?” he asked.
This could just be the start of other audits that show other programs aren’t working.”
The OLA said it will continue monitoring corrective actions taken by the agency and will keep lawmakers informed of any unresolved issues.
Read the full audit below:
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