BALTIMORE — A state audit has found that the Maryland Port Administration did not adequately verify millions of dollars in spending tied to major infrastructure and environmental projects, according to a report released in April 2026.
The audit, conducted by the Maryland Office of Legislative Audits, reviewed financial activity between June 2021 and June 2025 and identified significant issues in how the agency reviewed payments and oversaw large-scale projects.
According to the report, the Port Administration did not ensure that payments related to a railway tunnel expansion project were proper or supported by sufficient documentation. Auditors found the agency did not review supporting documentation for certain contractor payments, failed to verify approximately $600,000 in labor charges, and approved $1.4 million in overhead costs that were not provided for in the related contracts.
The project, estimated to cost about $566 million, has already seen more than $184 million paid to contractors. Auditors reviewed a sample of invoices totaling nearly $49.6 million as part of their findings.
In a separate finding, auditors reported the agency did not obtain support or otherwise verify expenditures tied to a federal dredged material management project, for which the state had advanced approximately $77.5 million as of June 2025. The report noted the agency did not conduct periodic audits or obtain sufficient documentation to confirm how funds were being used.
Auditors recommended the agency strengthen oversight by reviewing all required supporting documentation for contractor payments, ensuring labor and overhead rates are properly defined and verified, and conducting periodic audits of federally managed projects.
The Maryland Department of Transportation, on behalf of the Port Administration, generally agreed with the findings and said it plans to enhance its review and documentation procedures.
The audit also included a cybersecurity-related finding, though details were redacted from the public report in accordance with state law.
Read the full audit report for Maryland Port Administration below:
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