ANNAPOLIS, Md. — A new legislative audit has identified $3.42 billion in unsupported federal revenue entries and nearly $1 billion in potential and known unfunded liabilities across multiple Maryland state agencies following the closeout of fiscal year 2025, according to a report released this month by the Office of Legislative Audits.
The Statewide Review of Budget Closeout Transactions for Fiscal Year 2025, dated December 2025, examined year-end accounting entries made by eight major state agencies responsible for the majority of Maryland’s federal spending. Auditors found that seven of the eight agencies reviewed could not provide sufficient documentation to support large federal revenue accruals recorded at the end of the fiscal year, raising concerns about whether the funds will ever be recovered.
Auditors reported that unsupported revenue entries totaled $3.42 billion, with agencies unable to show that the federal government owed or later paid those amounts. As of October 2025, agencies also could not document receipt of $3.44 billion associated with the questioned accruals…