BALTIMORE (WBFF) — A Baltimore nonprofit run by a Maryland lawmaker received more than $100 million in taxpayer dollars while auditors repeatedly flagged problems with its financial reporting and internal oversight, according to a Spotlight on Maryland investigation.

Del. Dana Stein, a Baltimore County Democrat, has worked as the executive director of Civic Works for roughly two decades while serving in the statehouse. Civic Works, which has received about $145 million in taxpayer funding since 2016, runs workforce, housing, environmental and community revitalization programs, primarily in the Baltimore area.

Stein earns more than $200,000 annually at Civic Works and has served in the General Assembly since 2007. He chairs the Maryland House environmental subcommittee. Civic Works receives government funding for programs involving weatherization, energy efficiency, clean-energy workforce development and environmental projects.

Stein insisted he goes through the proper process of reporting conflicts of interest to the State House and recusing himself from relevant votes. Meanwhile, critics say that State House policies are not enough to prevent Stein from taking advantage of his legislative influence over billions of taxpayer dollars, especially amid ongoing audit struggles at his organization.

A Spotlight on Maryland analysis of the nonprofit’s federal single audits—the annual audits required for organizations that spend at least $750,000 in federal funds—shows Civic Works received about $145 million in taxpayer funding between 2016 and 2025. Government funding averaged about $14.5 million per year and accounted for roughly 80% of the organization’s support during that period when stacked against private donations.

Audits show that federal funds were passed through to Civic Works by an extensive list of agencies within the Maryland and Baltimore City governments.

In 2006, the year before Stein took office, Civic Works received $1.9 million in government grants, according to IRS tax filings. By 2016, Civic Works received $8.2 million in government grants—a roughly 330% increase over a decade.

IRS tax filings from Civic Works show Stein earned about $96,000 in 2014 and approximately $231,000 in 2024—an increase of about 140%.

Maryland Del. Brian Chisholm, an Anne Arundel County Republican, questioned the ethics of Stein making more than $200,000 at a taxpayer-funded nonprofit as he works in the State House. He also questioned how Stein could manage tens of millions of taxpayer dollars while he worked full-time as a lawmaker for roughly a quarter of the year.

“I think it’s a waste of taxpayer money, in my opinion, because I don’t see the return on investment,” he told Spotlight on Maryland. “I would assume they’re political payoffs It goes back to the dawn of time when we first got into politics and power. How do you influence politics? You influence with money.”

What the audits found

The most recent single audit, covering fiscal 2025, reported a significant deficiency in financial reporting at Civic Works—a repeat finding from the previous year. Auditors said Civic Works had to correct more than $2.2 million in financial records after auditors identified errors in the organization’s financial records. Civic Works told auditors it implemented new grant-tracking and financial reporting procedures in response.

Auditors also determined the nonprofit did not qualify for the federal government’s low-risk auditee designation.

The 2024 audit identified both a significant deficiency and a material weakness, a more severe audit finding. Auditors said the organization’s initial federal expenditures schedule omitted programs, misclassified expenditures and left off about $1 million in federal spending before it was corrected. Auditors again determined Civic Works did not qualify as a low-risk auditee.

The pattern stretches back years. In 2023, auditors reported a material weakness involving lease accounting and financial reporting that resulted in a restatement of prior-year balances. In 2021, auditors reported a material weakness involving revenue recognition and accounting, resulting in another financial restatement.

In 2019, auditors identified a significant deficiency involving federal grant compliance after required documentation for an employee background check could not be produced. In 2017, auditors reported a significant deficiency after required federal grant reports were submitted without documented review.

Linda Parsons, a professor at The University of Alabama focused on nonprofit accounting, said the repeated audit findings, paired with a determination that Civic Works is not a low-risk auditee, show the organization should not continue to receive taxpayer dollars.

“I would be particularly careful with this organization if I were providing grant funding,” she told Spotlight on Maryland. “What I see is that a lawmaker with influence and power in the granting process is moving increasingly large grants to an organization with which that lawmaker is affiliated, and that there’s trouble with the reports that are overseeing the use of those grants.”

Chisholm agreed that Civic Works should not receive any more taxpayer money.

“I think they need to be looked at with a fine-tooth comb. Why are you failing so many audits, and do you actually deserve the millions of dollars?” he told Spotlight on Maryland. “The funding should dry up at some point because you can’t prove that you’re spending the public’s money in a responsible way.”

Civic Works responds

A spokeswoman for Civic Works emailed Spotlight on Maryland a statement on behalf of the organization and Stein, emphasizing that the lawmaker takes necessary steps to ensure there is not a conflict of interest between his two jobs.

“Since his election in 2006, Mr. Stein has regularly consulted with the legislature’s ethics adviser to avoid actual and potential conflicts between his legislative and non-profit roles. He has always followed the ethics adviser’s advice regarding disclosure of potential conflicts and actual recusal on votes. He has disclosed and disclaimed potential or appearances of a conflict and those forms are on the Maryland General Assembly website,” the Civic Works spokeswoman wrote.

“Mr. Stein has followed all advice from the legislature’s ethics adviser regarding recusal from matters that would create a conflict of interest between his legislative and non-profit roles. He does not interact with government officials in matters related to procurements or negotiation of contracts,” she added.

Salary spending increases 100%

IRS filings show Civic Works expanded rapidly in recent years amid audit struggles. The nonprofit reported 286 employees in 2020 and 347 employees in 2024—a roughly 21% increase—while spending on salaries increased from $5.8 million to $12 million—a roughly 100% increase. Payroll accounted for between 58% and 68% of annual spending during those years.

Stein lists his position with Civic Works on his financial disclosure statement. His disclosure also lists the state agencies from which his nonprofit receives funding.

Stein filed a Form D disclaimer of an apparent or presumed conflict of interest this year, noting that while Civic Works has a partnership with BGE, he is “able to participate in legislative action relating to the above fairly, objectively, and in the public interest.”

Since 2013, Stein has filed 25 Form E statements of recusal from voting and other legislative actions due to a reported conflict of interest arising from his employment with Civic Works. However, the last recusal he reported was in 2023, even though his organization received taxpayer dollars from the Maryland government in subsequent years.

‘Accountable to the public’

Parsons said that while Stein may be following legally required conflict-of-interest policies, he still has a concerning level of influence over the grantmaking process.

“The conflict of interest, that to me is probably the most troubling thing,” she told Spotlight on Maryland. “If you have an individual that’s in charge of a nonprofit that’s also elected to office, that’s not necessarily a problem. But when money is steered toward that organization and increasing amounts at all levels, then I would want to know who’s making sure that this is operating properly.”

A spokeswoman for Maryland Gov. Wes Moore’s office emailed a statement to Spotlight on Maryland that emphasized the federal single audits of Civic Works do not assess how state funding is spent. Maryland state agencies, she wrote, have their own individual oversight mechanisms in place.

“The Moore-Miller administration is committed to ensuring every dollar of taxpayer funding is awarded fairly, spent responsibly, and accountable to the public,” Moore’s spokeswoman wrote.

Several agencies within the Maryland government provided written statements to Spotlight on Maryland detailing various individual oversight policies for programs they fund at Civic Works. The Maryland agencies stated that no action has been taken in response to findings in Civic Works’ federal single audits.

$1 lease in Baltimore

Civic Works operates at Clifton Mansion, the former estate of philanthropist Johns Hopkins. The nonprofit has a lease agreement with Baltimore City that allows them to pay just $1 per year to use, maintain and renovate the property.

Additionally, Civic Works has received $13.5 million in taxpayer dollars through the Baltimore City government since August 2022, according to a government database. This included $4.5 million in taxpayer dollars from the Baltimore City Health Department to Civic Works from 2022 to 2024, described in the database as being for “Coronavirus.”

A spokesperson for Baltimore City Mayor Brandon Scott’s office emphasized that the city “employs best practices for grant administration, signing grant agreements that ensure transparency and accountability.”

The spokesperson noted that recent federal audits of Civic Works “identified no material weaknesses or significant deficiencies in internal controls over federal programs, finding that Civic Works complied with all requirements that could have a material effect on its major federal programs.”

The mayor’s office did not respond to additional questions on audit concerns at Civic Works regarding financial reporting and scheduled expenditures for federal awards.

Civic Works is partnered with Baltimore City Public Schools to operate the “Reach! Partnership School,” which prepares students for college and careers. The 2025 federal single audits revealed the organization received $9.7 million from Baltimore City Public Schools that year. Reach is incorporated separately but included in the audits because Civic Works manages the organization.

A spokeswoman for City Schools said they consider federal audit findings as part of their oversight of Civic Works.

“We will continue to monitor the Operator’s progress to confirm that the audit issues have been appropriately resolved,” the spokeswoman emailed Spotlight on Maryland. “City Schools will also continue to review audits and other financial documents to ensure the organization is on track and making progress consistent with its Corrective Action plan and regular contractual requirements.”

Spotlight on Maryland is a joint venture by The Baltimore Sun, FOX45 News and WJLA in Washington, D.C. Have a news tip? Call 410-467-4670 or emailSpotlightOnMaryland@sbgtv.com. Contact Patrick Hauf atpjhauf@sbgtv.comand @PatrickHauf.