Boston, MA – The Massachusetts Office of the Inspector General released a scathing report on Boston Public Schools’ (BPS) procurement practices, concluding the district wasted at least $857,261 in public funds through illegal or improper contracts spanning 2019‑2024. Inspector General Jeffrey Shapiro said the district failed to follow basic procurement law, sound business operations, and good‑governance principles.
Key findings and examples
The report details a series of schemes that allowed vendors to receive hidden markups and bypass city residency rules. Highlights include:
- Use of “passthrough” accounts that added a 10%‑19% markup on invoices, resulting in more than $600,000 routed through five vendors and over $75,000 in extra markups.
- Payments to vendors without proper contracts or after contract ceilings were reached, then re‑routing those invoices through a second vendor that added a markup before billing BPS.
- Specific cases: $164,489 owed to Boston Mechanical and $54,481 to Homer Contracting were funneled through vendor ENE, which pocketed $24,673 and $10,587 respectively as passthrough fees.
- Use of a sole‑source contract to purchase goods already available through existing sources, and a contract with environmental firm Tighe and Bond that added a 10% markup on Department of Environmental Protection licensing fees.
Shapiro noted that BPS Division of Operations appeared to be aware of, or participated in, the conduct. The inspector general also found the district ignored earlier warnings from the Boston Finance Commission, an independent watchdog.
District response and next steps
BPS issued a statement thanking the IG office for its review and emphasizing recent reforms. Superintendent Mary Skipper and the new operations leadership have reportedly streamlined payment and contracting systems, removed individuals implicated in the misconduct, hired new procurement leaders, and reduced reliance on sole‑source contracts. The district plans to implement a 10‑day pause on payments to vendors for non‑essential goods and services while it finalizes preparations for the upcoming school year.
The report includes 25 recommendations. BPS and the City of Boston have pledged to develop a plan to fully adopt those recommendations, aiming to restore transparency and protect taxpayer dollars.
Why this matters to families
For Boston families, the misuse of public funds directly impacts the resources available for classrooms, transportation, and special‑education services. Ensuring that every dollar is spent wisely aligns with the community’s desire for fiscal responsibility and high‑quality education.
While the inspector general’s findings are serious, the district’s acknowledgment of the problems and commitment to corrective action offers a path forward. Continued oversight will be essential to guarantee that future contracts adhere to state law and the principles of good governance.
Looking ahead
The IG’s investigation underscores the importance of robust internal controls in large public institutions. As BPS works to implement the recommended reforms, parents and taxpayers will be watching closely to see whether the district can rebuild trust and ensure that school budgets serve students rather than inefficient contracting practices.
Original reporting: NBC10 Boston — read the source article.
