Maryland Correctional Enterprises, which produces and sells goods using prison labor, failed to pursue millions in payments it was owed for the goods and services it sold last year, according to a recent state audit.
The Office of Legislative Audits said that of $12.9 million in accounts receivable the agency held as of June 30, 2023, about $7 million had been due for more than 90 days – with some accounts languishing for more than a year.
MCE failed to send dunning notices threatening legal action or to turn the past-due accounts over to a state collection agency, the June 20 audit said. But the audit also noted that 96% of the past-due accounts – or $6.7 million – were owed by other state agencies that, by law, cannot be turned over to a collection agency.
“It’s pretty clear from this audit that MCE has a fundamental problem in how it is able to do its work and sustain itself. Any other business would have gone under by this point if they can’t invoice and collect on the work from services that they’re doing,” said Sen. Clarence Lam (D-Howard and Anne Arundel).
Click here to read the rest of the article written by Elijah Pittman over at Maryland Matters
