The Indiana Economic Development Foundation has disclosed more than $13 million in expenses over six years, according to audited financial reports released Thursday under the orders of Governor Mike Braun. The state-affiliated nonprofit is responsible for raising private funds to support the Indiana Economic Development Corp. (IEDC).
The reports covering financial activities from 2019 to 2024 reveal that the foundation spent $13.2 million, with $10.9 million allocated to travel, meals, and entertainment. These expenses include international economic development trips taken by previous governors. Another $1.8 million was spent on administrative costs, and over $200,000 went towards sponsorships.
Nearly $300,000 was also categorized as “other” expenses, though the foundation did not specify the details. Despite the substantial sums involved, the foundation had not filed the required annual audited financial reports with the State Budget Committee for six years. Gov. Braun’s administration called out this lapse in an April 9 news release.
The foundation cured the lapses two weeks later, making the reports available online.
Foundation discloses $13M in expenses
Indianapolis’ Katz, Sapper & Miller audited the most recent three financial reports, whereas Missouri’s former BKD conducted the previous audits.
Nonprofit management specialist Professor Beth Gazley from Indiana University highlighted the importance of periodically changing auditors to maintain objectivity. The reports disclose about $11.7 million in donations but do not reveal donor identities, complying with rules that allow foundations to redact names if anonymity is requested. However, some donors like the Urban Institute and the Battery Innovation Center have been identified.
The Battery Innovation Center’s CEO, Les Alexander, defended the transparency of their donation, emphasizing its role in supporting state collaborations. Gov. Braun has reported potential improprieties to Indiana’s Office of Inspector General amid allegations of self-dealing.
He has mandated that the foundation file annual Form 990 returns, regardless of exemptions, detailing funding sources and expenditures. All required reports dating back ten years must be posted online by the end of 2025 for public access. The IEDC and foundation share the same staff and governance, which raises further questions about their spending and effectiveness.
The newly implemented measures aim to enhance transparency and accountability, ensuring that the funds are spent in alignment with the foundation’s mission.
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