Inspector general: small Kaiser grant was transferred to PTA contrary to MCPS policy; funds returned to school

The Audit Committee heard an OIG investigation into allegations that grant funds awarded to Sergeant Shriver Elementary were improperly transferred to the school’s PTA.

Inspector General Ms. Lamarzi said the grant — a small award under $5,000 from the Kaiser Permanente Thriving Schools Initiative — had been awarded to the school, extended because of the pandemic, and later transferred to the PTA. MCPS policy, the OIG said, does not permit transferring district grant awards to a private nonprofit; the OIG found that practice was counter to policy and that the funds remained unspent in a PTA lockbox when the OIG concluded its review.

"We did not substantiate allegations of financial misconduct," Ms. Lamarzi said, but the OIG reported a policy violation for transferring the funds out of district control and recommended that the money be either returned to Kaiser or spent under MCPS direction. MCPS finance confirmed the funds were returned to the school’s account.

District officials said the case highlighted training and communication gaps. Robert Riley said the grants chapter of the financial manual exists and that the district will send a grants memo and increase training so grants flow through the budget and finance office and are spent according to grant provisions.

Council members asked whether central office monitors small grants and whether ongoing training will be mandatory; MCPS said training for new principals and grant managers exists and that the district intends to broaden ongoing training though mandatory recurring training was not yet adopted.

The committee asked MCPS to report back on specific changes to grant oversight and whether training will become mandatory for those responsible for grant administration.

Provenance: OIG presentation and MCPS confirmation during the Audit Committee meeting.