Worcester County Public Schools (WCPS) leadership provided a detailed public response to a recent state audit during the March 17 Board of Education meeting, offering expanded explanations of the findings and outlining corrective actions already underway.
The audit, issued February 23 by the Maryland Department of Legislative Services (DLS), identified seven (7) findings, including four related to cybersecurity that were redacted from the public report, but overall down from 19 findings in the 2017 audit. By comparison, Worcester’s latest audit had fewer findings than the most recent audits available for neighboring Somerset County Public Schools resulting in 11 findings (2025) and Wicomico County Public Schools that had 8 findings (2020). These audits are available on the Maryland DLS website.
WCPS officials emphasized that the state accepted the district’s response, “We reviewed the response to our findings and related recommendations, and have concluded that the corrective actions identified are sufficient to address all issues.”
Audit Findings: What Was Identified
Hiring Compliance for Positions Involving Minors
The audit found :“WCPS did not always perform a newly required screening for positions involving direct contact with minors.”
Auditors reported that required screenings had not been completed for several employees during the review period. The screening requirement referenced in the audit stems from Maryland law (HB 486), which requires school systems to:
- Obtain disclosures from applicants regarding past misconduct
- Contact prior employers who employed the applicant in positions involving minors
WCPS agreed with the finding and outlined immediate corrective action. The district detailed several changes:
- Required screening must now be completed and documented before final employment clearance
- Human Resources must conduct a centralized review prior to assignment
- Additional training has been implemented for HR staff
- Periodic reviews of hiring files will be conducted to ensure compliance
During the March 17 presentation, WCPS emphasized that screening safeguards were already in place, including:
- Fingerprinting and Criminal Justice Information System checks
- Reference checks
- Participation in the state “Rap Back” monitoring system
The presentation further clarified the specific issue: “WCPS sends the required employer reference forms to prior child-serving employers and verifies responses.” The audit finding centered on documentation and tracking of this required outreach, not the absence of background checks themselves. School officials noted that while this outreach had always been conducted, sometimes prior employers had not responded within the required 20-day period.
Transportation Payments and Fuel Tax Treatment (Repeat Finding)
One of the most significant findings involved payments to bus contractors:
“Certain elements of bus contract payments could not be supported or did not consider available fuel tax credits.” This was a repeat finding from the prior audit.
The finding included two separate issues:
1. Unsupported Maintenance Cost Rates
Auditors found that WCPS did not base per-mile maintenance payments on documented cost data. They recommended, “use actual bus operating costs as a basis for establishing contractor rates…”
2. Fuel Tax Inclusion
Auditors also recommended: “exclude fuel excise taxes from contractor payments (repeat).”
Because contractors may qualify for fuel tax exemptions or refunds, including those taxes in reimbursement formulas can increase total payments.
Financial Context of the Finding
The audit previously estimated that approximately $1 million in additional payments occurred over multiple years due to fuel tax treatment. Spread across roughly five fiscal years, that equates to about $200,000 per year. According to WCPS, there are 67 bus contractors. ~$200,000 ÷ 67 contractors ≈ $2,985 per contractor per year This figure is an average estimate based on audit totals, not an identified overpayment to any specific contractor.
WCPS did not dispute the finding and instead explained how payments are structured, “Proposed bus contractor rates are developed through a meet and confer process with the Worcester County Bus Contractors Association and approved by the Board of Education.” This process establishes standardized rates rather than individualized cost reimbursement.
Regarding fuel taxes, WCPS stated: “Not all Maryland school systems exclude federal and state excise fuel tax…” Officials indicated the Board may revisit this issue in future negotiations.
Oversight of Healthcare Third-Party Administrator (TPA)
The audit found “WCPS did not adequately monitor the performance of its TPA to verify the propriety of amounts paid and compliance with performance measures.” This was also a repeat finding.
WCPS agreed and stated it will:
- Conduct quarterly invoice and contract comparisons
- Establish a formal independent review process
The district also clarified that the TPA contract is held by Worcester County Government.
Procurement Concerns Referred to State Prosecutor
The audit referenced, “Questionable procurement activity involving a management employee, which DLS referred to the Office of the State Prosecutor (OSP).” The report emphasized, “A referral to the OSP does not mean that a criminal act has actually occurred or that criminal charges will be filed.” A separate report on this matter appears to be pending and is outside the scope of this audit.
Cybersecurity Findings Withheld
Four findings related to cybersecurity were redacted from the public report under state law; these were reviewed in closed session. However, officials noted that one of the cybersecurity incidents noted within the audit (p. 11) was in reference to the widespread PowerSchool breach, and as noted, the school system both publicly acknowledged the breach and made every effort to support PowerSchool’s response to impacted individuals.
Overall Takeaways
During the March 17 meeting, WCPS leadership emphasized that:
- All findings were acknowledged and addressed
- Many issues involved documentation, methodology, or oversight structure
- Corrective actions are already implemented or underway
The state audit also concluded that WCPS’s corrective actions are sufficient to resolve the findings.
What Happens Next
WCPS is expected to:
- Consider potential changes to transportation payment formulas
- Continue monitoring hiring compliance procedures
- Coordinate with county government on healthcare oversight
