Responding to recent media inquiry on the amount of state funding to not-for-profit organizations, a spokesperson for Governor Moore said it is “a miniscule amount of the budget every year.”
Since then, another spokesperson for the Governor expressed more interest in pursuing answers to that inquiry and said he is working on gathering that information.
He also cautioned that gathering the information is a labor-intensive process and antiquated technology systems are contributing to the delay.
Whatever answers are eventually made available, questions on transparency and accountability should not and very likely will not go away.
State Comptroller Brooke Lierman recently suggested looking at a new process that would help not-for-profit organizations to succeed, but also ensure that there is accountability that state funds are being spent appropriately. She also recently voted no on a proposal before the State Board of Public Works on a nine-year $300 million state information technology contract. Lierman expressed concern that the agreement risks undermining both competition and transparency in state government contracting.
In any event the matter of transparency and accountability issues are not new.
In 2021, the bi-partisan Office of Legislative Audits in the Department of Legislative Services conducted a comprehensive performance audit to assess the state’s policies for advertising, awarding, and monitoring state-funded grants.
The auditors concluded there was no central control agency authorized to issue statewide grant-related regulations, policies, and procedures, engage in grant oversight, and monitor state agency’s grant-related activities to ensure accountability with grant terms and conditions.
The auditors recommended all state agencies use a centralized grant management system (GMS) to administer and track grant awards and related expenditures. They also recommended uniform financial controls. reporting requirements on conflict-of-interest prohibitions, documentation on grant expenditures and deliverables, and performance progress reports.
In 2020, the Maryland Efficient Grant Application Council (MEGA Council) was established and charged with studying and making recommendations to the Governor’s Grants Office and the Department of Budget and Management regarding the management of grants across Maryland.
Key focuses of the MEGA Council included developing recommendations on uniform grant application forms and financial controls, establishing standardized reporting requirements, recommending timelines for the adoption and implementation of these processes, streamline the grant application process, improve grant administration efficiency, and providing guidance to ensure compliance with state and federal requirements.
While all these proposed recommendations and others to be determined may merit serious consideration, there is one critical missing element – a commitment to timely action on next steps.
That was affirmed last January by State Senator Clarence Lam, former Senate Chair of the General Assembly’s Joint Audit and Evaluation Committee. Senator Lam said addressing grant transparency and accountability issues have “fallen through the cracks.” He also said they should be addressed “sooner rather than later.
The original deadline for the MEGA Council recommendations to be presented to the Governor and the General Assembly was July 1, 2024. Now the deadline is July 1, 2027. There is no guarantee that deadline will not be pushed back again.
That means with no further delays, the earliest the General Assembly will be able to take action on any recommendations from the MEGA Council, as well as earlier recommendations from the Office of Legislative Audits in the Department of Legislative Services, will be in the 2028 legislative session that will convene in January 2028.
Earlier this year, difficult decisions were made on state spending levels and allocations in the state budget. They will almost certainly be the new normal for the foreseeable future.
Now is the time for the Governor, State Comptroller, and the General assembly to embrace the observations of John Kotter In his book A Sense of Urgency. Kotter wrote:
“The single most crucial factor in achieving permanent and meaningful change is a continuous sense of urgency. A true sense of urgency occurs with an acknowledgement that action on critical issues is needed now, not eventually, or not when it fits easily into a schedule. Now means making real progress every single day. Urgent behavior is not driven by a belief that all is well or that everything is a mess but, instead, that the world contains great opportunities and great hazards.”
The Governor, State Comptroller, and General Assembly also can and should do this:
Take whatever steps necessary to expedite the current ongoing research on how much state money has historically been sent to not-for-profit organizations.
Take whatever steps necessary to require every not-for-profit organization that receives state funds to demonstrate how their operations reflect Peter F. Drucker’s observation that “Not-for-profit organizations need management even more than business. Good intentions are no substitute for organization and leadership, for accountability, performance, and results.”
David Reel is a public affairs consultant, public relations consultant, and a not-for-profit organizational governance, leadership and management consultant who lives in Easton.
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