A U.S. Department of Education audit has found that two school systems in Maryland misspent stimulus funds that were allocated to assist poorer jurisdictions during difficult budget times.  This finding may result in the Maryland State Department of Eduction repaying the federal dollars. As reported by the Baltimore Sun (limited free views available):

The Maryland State Department of Education may have to pay back up to $540,000 in federal money intended to help the state’s poorest schools after a scathing audit found that Baltimore City was one of two school districts that misspent the funds, using the money for dinner cruises, makeovers and meals.

The report, reviewing grant expenses from 2009 and 2010, was conducted by the Office of the Inspector General for the U.S. Department of Education. It found similar misspending in Prince George’s County schools.