The Indiana Economic Development Foundation has released audited financial reports covering six years, revealing significant expenditures on travel, administrative costs, and other expenses. The reports, disclosed under the directive of Governor Mike Braun, show that the foundation spent $13.2 million between the 2019 and 2024 fiscal years. The foundation is a state-affiliated nonprofit tasked with raising private funds to support the Indiana Economic Development Corp.
(IEDC), entered a spending freeze following the release of these audits. The reports, conducted by Indianapolis firm Katz, Sapper & Miller and Missouri’s former BKD, indicate that $10.9 million was allocated to travel, meals, and entertainment expenses. Beth Gazley, a professor at Indiana University specializing in nonprofit management, commented on the expenditures, stating that the justification of such spending depends on the organization’s mission and goals.
Gazley also emphasized the importance of periodically changing auditors to ensure the integrity of financial assessments. The audits also revealed $1.8 million in administrative expenses, with additional spending categorized under sponsorships and other unspecified expenses. The foundation has not provided further details on these expenditures.
Indiana foundation audit reveals expenditures
While the reports disclosed $11.7 million in donations, the identities of most donors remain anonymous due to privacy requests. Notable donors identified include The Urban Institute, which donated $5,000 in 2021, and the Battery Innovation Center, which contributed $12,000 in 2022.
The Battery Innovation Center has received significant incentive contracts from the IEDC, totaling $18 million between 2015 and 2025. Governor Braun’s administration criticized the foundation for failing to file required audited financial reports with the State Budget Committee for over six years. The reports have been submitted and are now available online.
Additionally, Braun has mandated that the foundation and other state-affiliated nonprofits file Form 990 annually, regardless of whether they had previously been exempt. The foundation lists several prominent contributors, including Indiana’s major investor-owned utilities and other corporate sponsors such as Old National Bank, Pure Development, and Rolls-Royce. These organizations have various service and incentive contracts with the IEDC.
Moving forward, the foundation must ensure that all required reports from the past ten years are posted online by the end of 2025 for public access and scrutiny, as per an executive order from Governor Braun.
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