Maryland Audit Finds Issues With Legal Contracts

The Office of Legislative Audits uncovered deficiencies in how the Attorney General tracks outside legal spending.

Updated on Oct. 21, 2026 in Criminal Justice

Maryland Audit Finds Issues With Legal Contracts

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The Maryland Office of the Attorney General faced scrutiny after an audit revealed significant gaps in oversight regarding outside law firm contracts and a costly case management system. Between 2022 and 2026, the agency spent nearly $63 million on outside counsel without centralized monitoring procedures.

Why it matters

The audit highlights systemic failures in financial transparency and project management within a major state agency. These oversights prevented proper accountability for millions in taxpayer funds and resulted in a costly, partially implemented software system.

The audit, spanning June 2022 to May 2026, revealed that the Maryland Office of the Attorney General failed to disclose vendor issues to the Board of Public Works. The office plans to establish a central contract repository by the end of 2027.

The players

Maryland Office of the Attorney General

This state agency is responsible for providing legal representation and advice to Maryland government departments.

Office of Legislative Audits

This agency conducts audits to ensure state government units are financially accountable and efficient.

Board of Public Works

This board oversees capital projects and procurement for the state of Maryland.

The details

Auditors identified that the agency spent $1.8 million on a case management system that remains unimplemented in one division, then failed to report these issues when requesting a $475,000 contract renewal. The agency lacked tools to oversee payments and failed to collect status reports from the vendor.

Timeline

  1. June 2022 to May 2026: Period covered by the audit of legal contracts.

  2. June 2023: Original deadline for resolving case management system issues.

  3. June 2025: Expiration of the initial case management system contract.

  4. April 2026: Date of status assessment for the case management system.

  5. October 20, 2026: Release date of the legislative audit report.

Legal Context

This audit marks a departure from standard state procurement protocols regarding transparency and vendor oversight. It highlights a critical gap between state legislative mandates and the actual execution of contract monitoring by executive agencies.

The findings underscore a potential waste of taxpayer funds, prompting requirements for the agency to issue new guidance for contract tracking by 2027. Residents may see increased scrutiny regarding how state agencies handle large-scale service contracts and project oversight.

The takeaway

Taxpayers should look for updates on the central contract repository to see if the agency succeeds in its 2027 reform goals. Enhanced oversight of state agency contracts is necessary to prevent recurring costs on stalled infrastructure and software projects.

Further reading

For additional context on the state oversight process, visit the Maryland Criminal Justice section.

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Do you trust local government agencies to manage tax-funded contracts effectively?