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Gov. Mike Braun confirmed Tuesday he is arranging for an independent audit of Indiana Economic Development Corp.’s spending and accounts, just weeks after he ordered more transparency for the agency’s nonprofit foundation.
The Governor’s Office told IBJ it is hiring an outside firm for the audit on the same day that Hannah News Service, which produces Indiana Legislative Insight newsletter, published a sprawling account that raised questions about the IEDC’s relationship with Elevate Ventures, a nonprofit that serves as a venture capital firm for the state agency. The IEDC gives Elevate millions of dollars each year to invest in Indiana-related startups.
IBJ has not independently verified the allegations in Hannah’s report.
In a written statement to IBJ, the Governor’s Office confirmed that it is in the process of finalizing an “independent forensic audit of all Indiana Economic Development Corporation accounting.”
“Hoosier taxpayers deserve clear accountability for how their dollars are spent,” Braun said in the statement Tuesday. “We will take any necessary action to protect taxpayers going forward.”
In a written statement shared with IBJ, Elevate Ventures CEO Christopher Day said public service is at the core of Elevate’s mission. His statement did not address the questions raised in Hannah’s report.
“We have been, and will continue to be, transparent with the IEDC and the Governor’s office in both the work we do and our stewardship of resources,” Day said. “We strongly support the Governor’s focus on accountability and transparency on behalf of Hoosier taxpayers.”
An IEDC spokesperson deferred to the Governor’s Office when reached for comment.
Molly Swigart, spokesperson for Senate Pro Tem Rod Bray, R-Martinsville, told IBJ in a written statement that the senator is “very concerned” about the questions raised in the Hannah News Service report and grateful for the steps Braun has taken to address the issues.
“It is likely there is much more to be learned about what transpired between Elevate Ventures and the IEDC,” Swigart said, “but lawmakers are taking this initial information into consideration as they continue their discussions.”
Sen. Spencer Deery, R-West Lafayette, wrote in a post on X (formerly Twitter) that those involved in economic development should be the biggest advocates of reform and transparency.
Deery’s district would be impacted by a proposed long-haul water pipeline to the IEDC’s LEAP Research and Innovation District in Boone County. He has been a staunch supporter of more guardrails for the agency, authoring this year’s Senate Bill 251, which would’ve added a slew of new transparency measures, including adding an economic development ombudsman who would be tasked with, among other things, investigating mismanagement and misconduct within IEDC and any nonprofit subsidiaries.
That bill died without a hearing.
“A new administration may have bought us time in preventing the proliferation of more problems like this, but the problems will return if the General Assembly fails to codify new expectations for the transparency and accountability of IEDC dollars,” Deery wrote.
Earlier this month, the Governor’s Office singled out the Indiana Economic Development Foundation while announcing an executive order focused on improving the transparency of state-affiliated nonprofits.
The executive order requires all state-affiliated nonprofit foundations and corporations to comply with mandated reporting requirements and catch up on all missed reports within the last 10 years, even if they were granted an exemption.
Hannah News Service’s reports that the move came after Braun, who took office in January, and high-level staffers had difficulty piecing together IEDC’s accounting, proper documentation and a timeline of the agency’s financial moves.
The Hannah report also says the Governor’s Office is freezing key bank accounts and arranging to hire more investigators within the Office of the Inspector General as it continues reviewing IEDC activities.
Hannah News Service is an Ohio-based organization that has an Indiana office with three journalists. It also covers state government in Ohio, Illinois and South Carolina.
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