Audit finds creative accounting and “conspiracy” led to waste at SHA Reporter

A recent state audit points to millions of dollars in cost overruns coupled with attempts to hide the figures by the State Highway Administration.

The Office of Legislative Audits uncovered what is characterized as a conspiracy to skirt the law in a new report, including allegations that contractors on state highway projects often used creative accounting to to transfer unspent funds to other projects.

The report released in the past few days also points to sloppy documentation and efforts to avoid approval by the Board of Public Works to modify contracts.

An earlier audit in July detailed potentially criminal cases.

But the more recent one backed away from that finding.

Maryland’s Comptroller Peter Franchot said, “What the audit describes is basically a conspiracy between the state bureacracy and the private sector vendors to hide money from the Board of Public Works’ scrutiny.”

More than $11 million dollars was moved around, according to the audit.

State Transportation Secretary Beverly Swaim Staley told that she has been trying to correct the problems.


  1. 1

    That's the best news I've read all day!!

    Comment by Baltimore Florist — December 6, 2011 @ 2:52 pm

  2. 2

    Why no criminal charges? Someone had to sign for the transfer of moey from one contract to another.

    Comment by Resident of MD — December 9, 2011 @ 8:47 am

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