BALTIMORE — A newly released legislative audit found major payroll problems within the Maryland Transit Administration.
According to the report issued May 21, the MTA kept over 90 terminated employees on their payroll from anywhere between two weeks and three-years after being fired.
The audit specifically covers the period between July 1, 2020 and June 30, 2023.
During that time frame auditors sampled 15 terminated employees.
Turns out nine of them received nearly $5,500 in compensation following their departures.
Auditors highlighted similar issues that went unaddressed in two prior reports dating back to November 2018.
In response the MTA said they would "utilize services with a [Third Party Administrator] who will conduct ongoing comprehensive claims audits of all healthcare TPA claims paid and services provided. But MTA doesn't expect to carry out that plan until December 30, 2026.
Other concerns raised in the report centered on $174.7 million in healthcare spending for active employees and retirees.
Auditors determined MTA paid out millions in claims without first verifying patient eligibility.
The report also flagged the agency for lack of transparency when it came to publicly posting $495 million in contracts and awards.
On occasion the MTA reportedly took more than two years to publish some of the contracts.
One other financial Red Flag was a $600,000 spike in MTA Call-a-Ride taxi services used for vulnerable populations.
The agency allegedly allowed contractors to be reimbursed $40 per trip, up from $25, without proper authorization or customer acknowledgment.
Word of this came from a referral via the fraud, waste, and abuse hotline accusing taxi companies of charging maximum rates regardless of mileage.
In their response, MTA called the finding "not factually accurate," issuing this explanation.
"MTA did not increase taxi company reimbursement rates. The maximum amount subsidy rate was increased from $25.00 to $40.00 per trip during the COVID-19 pandemic. Ride sharing companies do not use written receipts. They use technology to collect the same information in lieu of written receipts. The change in subsidy from $25.00 to $40.00 did not constitute a change in contract terms and did not change the reimbursement rates. This did not constitute a significant change in the scope, schedule or contract amount and thus did not require a formal contract modification or approval by the Board of Public Works in accordance with COMAR 21.02.01.04C (1)(f)."
The full audit can be read below.
