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Restoring Transparency at the Indiana Economic Development Corporation

Following media and lawmaker concerns about transparency and the usage of taxpayer dollars at the Indiana Economic Development Corporation (“IEDC”), the Office of the Secretary of Commerce of the State of Indiana conducted a series of internal reviews into the group. The reviews revealed allegations of ethics violations and self-dealing, potential conflicts of interest (“COIs”) and gaps in governance and compliance oversight. FTI Consulting was engaged to conduct a thorough forensic analysis into flow of funds, commingling of funds and financial oversight at the IEDC and to assess internal controls, policies and processes to identify areas for improvement and recommend enhancements to address gaps and mitigate risks.

Our Impact

FTI Consulting’s review revealed significant governance and compliance gaps at the IEDC and its affiliated entities, including a lack of transparency into how state funds are spent and inadequate policies and procedures and compliance with those policies that exposed the state to a heightened risk of favoritism and misuse of public funds.
During the forensic review, some entities proactively initiated immediate policy reforms and remediation efforts, including instituting new travel and donation policies, stronger COI procedures and enhanced procurement controls to enhance transparency and accountability.
The Governor’s Office initiated changes at the IEDC, after which the IEDC began addressing gaps in governance and strengthening policies and procedures based on our recommendations.

Our Role

FTI Consulting examined more than $1.4 billion in IEDC disbursements over a two-year period and identified 45 unique findings and observations related to governance, COIs, compliance and financial oversight.
Under heightened scrutiny involving public funds in a politically charged environment, we streamlined fragmented data, reconciled complex fund flows and evaluated COI disclosures to identify risks that had not been fully recognized or reported.
Our investigation revealed instances of lavish spending of public funds, including high-profile events, private flights and stays at luxury hotels.
We translated our detailed findings into clear, strategic insights and recommendations for state leadership, legal counsel and oversight bodies.