Inspector General finds gaps in Montgomery County Police financial controls, flags unpaid camera citation revenue and travel approval lapses

The Montgomery County Office of the Inspector General reported this morning that a proactive audit of the police departmentmanagement services bureau found weaknesses in how the department handles citation revenue, vendor approvals and purchasing-card transactions.

"We found that the county was paying for enforcement services without ensuring that the county had in fact received all owed revenues," Megan Davey Lamarsi, inspector general for Montgomery County, told the Audit Committee. Lamarsi said the audit covered July 1, 2020, through June 30, 2023, and resulted in six findings and 10 recommendations.

Lamarsi said two findings focused on citation revenue handling tied to the countyautomated traffic enforcement contract. She told the committee the county received more than $10,000,000 in citation revenues in fiscal 2023 but the police department did not consistently reconcile amounts reported by the camera contractor with funds deposited to the county, and accepted contractor invoice credits without independent verification. The inspector general recommended formal policies and documented reconciliation procedures to ensure the county receives and records all owed revenue.

The audit also identified a large backlog of unpaid citations. Lamarsi said there were more than 110,000 unpaid citations in fiscal years 2021through2023 worth about $5,100,000, and nearly 500,000 unpaid citations dating to 2007 totaling about $22,900,000.

Assistant Chief Frank, speaking for the Montgomery County Police Department, acknowledged staffing shortfalls in the management and budget unit that handles invoice review and said several employees left the unit after the audit. "We are working to fill those positions," he said, adding that the department has offered an M3-level position and is moving to hire follow-on staff to improve oversight.

Findings 3 and 4 described procurement and vendor-registration gaps: the audit found the department had paid vendors who were not in the countyvendor registration system and that some payments violated the countyaccounts-payable policy for purchases above the $10,000 contracting threshold. Lamarsi said finance has already reviewed legacy vendors and the county has adjusted policy in response to the audit.

Findings 5 and 6 concerned purchasing-card (P-card) use and transaction support. Lamarsi told the committee that 33% of reviewed nonlocal travel P-card transactions lacked required approvals and that many transactions lacked adequate documentation or approver review. The inspector general recommended standardized approval procedures, improved approver training and stricter documentation requirements.

Committee members pressed the department on whether more resources are needed to implement recommendations and how the county can verify contractor data. Council Member Katz asked, "How and how fast?" about corrective timelines and whether the department needed additional resources beyond personnel. Lamarsi and Assistant Chief Frank said the county is demanding better contractor reporting and developing a dashboard and reconciliation processes to make oversight easier.

The audit team separated the traffic-enforcement contract for a second, targeted review because red-light and speed-camera billing differ and require additional testing, Lamarsi said. Assistant Chief Frank said the department has begun demanding more detailed reports from the contractor and is working on a dashboard to enable reconciliations.

The inspector general and council members emphasized follow-up. Lamarsi said the office tracks recommendation status (one recommendation closed, seven in progress, two unresolved) and urged continued check-ins with committee members so the council can monitor implementation.

Next steps: the inspector general said the county will develop written procedures for reconciliations, vendor registration and P-card approvals; the police department said it is hiring to restore capacity and will work with finance and the grants office to align policies. The committee asked the inspector general for periodic updates on the departmentresponses and the separate camera-contract audit currently underway.