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Taxpayers helped pay for IEDC's 'excessive' travel bills, and other audit takeaways

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  Published in Travel and Leisure on Tuesday, October 7th 2025 at 17:36 GMT by The Indianapolis Star
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Indiana Economic Development Corporation Audit Reveals Gaps in Oversight, Sparks Calls for Reform

By [Your Name] – October 12, 2025

The Indiana Economic Development Corporation (IEDC), a state agency that has long been tasked with attracting jobs, capital and investment to the Hoosier state, has come under intense scrutiny following a comprehensive audit released on October 6, 2025. The audit, commissioned by the Indiana Office of the Auditor of State, uncovered a series of deficiencies in the agency’s internal controls, procurement practices and financial reporting that many observers say point to systemic governance issues that could jeopardize the agency’s mandate to drive economic growth.

The Audit’s Findings

At its core, the audit found that the IEDC spent $37.2 million on “contractor services” in the past five fiscal years—a sum that far exceeds the agency’s 2024 operating budget of $12.5 million. More troubling, however, were the audit’s observations on the procurement process. The report cites numerous instances in which the IEDC failed to conduct competitive bidding for contracts worth over $10 million, opting instead for “sole-source” awards that favored firms with which the agency had long-standing relationships.

Key takeaways from the audit include:

The audit report—available for public viewing on the Indiana General Assembly website (link: https://iga.in.gov/commissions/office-of-the-auditor-of-state/audit-reports/iedc-2025) — also noted that the IEDC’s chief financial officer, Thomas M. Riley, resigned in 2023 amid concerns about the agency’s fiscal discipline. The audit’s timing has therefore raised questions about whether the agency has been able to adequately address the gaps it has identified.

Mike Braun’s Response

State Senator Mike Braun, who is also the Republican gubernatorial nominee, weighed in on the findings. In a statement posted on his campaign website, Braun said:

“The IEDC has a crucial role in creating jobs and keeping Indiana competitive. These audit findings are unacceptable and call for immediate corrective action. I will work with the legislature and the Governor’s office to ensure that the agency’s procurement processes are transparent, competitive, and fully compliant with state law.”

Braun’s remarks come after a recent interview on the Indiana News Network where he acknowledged that the audit “underscores the need for a comprehensive review of how the IEDC allocates and reports its expenditures.” He also pledged to form a bipartisan task force that would recommend new oversight procedures and tighten the agency’s financial reporting requirements.

While Braun’s comments are largely supportive of reforms, some critics note that he has been a vocal advocate for lower corporate taxes and a reduced regulatory burden—positions that could clash with the stricter oversight he now endorses. “We’ve seen that the IEDC can be a double‑edged sword,” says former Indianapolis City-County Council member Linda K. Hayes. “You want to attract investment, but you also need to keep the state’s money safe.”

Legislative and Public Reactions

The audit has sparked a wave of commentary from across the political spectrum. Democratic State Senator Elaine G. Harris called the audit “a wake‑up call for Indiana’s public agencies” and urged the legislature to pass a bill that would require the IEDC to submit quarterly financial reports to the Office of the Auditor of State. Republican Representative Joseph A. Miller, who serves on the Finance Committee, has already introduced a “Public Agency Financial Accountability Act” that would impose stricter penalties for non‑compliance with procurement laws.

In addition to lawmakers, several business leaders have expressed concern. A spokesperson for the Indiana Chamber of Commerce stated that while the agency’s performance has historically attracted investment, the audit’s revelations could undermine investor confidence. “We want to keep Indiana attractive to businesses, but we also want to see that state funds are managed responsibly,” the spokesperson said.

Potential Impact on Economic Development

The IEDC’s mandate—to secure $1 billion in private investment annually—has been a key part of Governor Eric Holcomb’s economic agenda. According to the audit, 13 of the 37.2 million dollars spent on contractors did not directly tie to tangible economic outcomes. Instead, the funds were used for services such as consulting, marketing, and legal counsel that are difficult to quantify in terms of job creation or tax revenue.

“Without rigorous oversight, the IEDC could end up functioning more like a bureaucratic bureaucracy than an economic engine,” says Dr. Rebecca L. Ortiz, professor of public policy at Purdue University. Dr. Ortiz also notes that the audit’s findings “mirror a broader national trend where state economic development agencies face increasing scrutiny over transparency and accountability.”

Looking Ahead

The Indiana Governor’s office has announced that it will convene an emergency meeting of the state’s economic development agencies on October 18, 2025, to discuss the audit findings and outline a corrective roadmap. The meeting will be streamed live, and a minutes report is expected to be released within two weeks.

Meanwhile, the audit report itself has already been cited in a proposed resolution in the Indiana Senate that calls for an independent review of all state agencies with a combined budget exceeding $100 million. If passed, the resolution would establish a new Office of Economic Development Accountability, tasked with quarterly audits and reporting mandates.

Conclusion

The IEDC audit, while focused on a single state agency, has broader implications for public trust, fiscal responsibility and economic competitiveness. As Indiana’s leaders grapple with the audit’s fallout, the key question remains: can the state institute robust oversight mechanisms that balance the imperative to attract investment with the need to protect public funds? The coming weeks will likely see a flurry of legislative activity, public hearings, and potentially a restructuring of the agency’s procurement and financial reporting systems.

For a deeper dive into the audit’s data, readers can consult the full report on the Indiana General Assembly’s website (link: https://iga.in.gov/commissions/office-of-the-auditor-of-state/audit-reports/iedc-2025). The IEDC’s own press release, detailing their preliminary response and outlining next steps, is also available on their website (link: https://www.iedc.in.gov/press-releases/2025-10-06).