Governor taps ‘crisis and transformation’ consultant for $800,000 IEDC forensic analysis

By: Leslie Bonilla Muñiz

Indiana Capital Chronicle

For The Republic

INDIANAPOLIS — A Washington D.C. firm that specializes in serving clients “facing crisis and transformation” has been tapped for an “independent forensic audit” of the embattled Indiana Economic Development Corp. (IEDC), Gov. Mike Braun’s office announced Wednesday.

The quasi-public entity is the subject of allegations, revealed in Indiana Legislative Insight reporting last month, of self-dealing, unreported side gigs and more. Just three days later, Braun promised a forensic audit.

In such audits, financial records are examined for any illegal activity and can serve as evidence in court. But the contract with FTI consulting is called “Forensic Review & Support Services” — and one provision says it isn’t an audit.

“While FTI’s work may include an analysis of financial and accounting data, the services will not include an audit, compilation or review of any kind of any financial statements or components thereof,” it reads.

Braun’s office didn’t immediately respond to a request for clarification.

The contract, worth up to $800,000, began May 13 and lasts one year. The consultant agreed to discount its standard hourly rates for all staff assigned to the project to a “blended hourly rate of $595.”

Commerce Secretary David Adams said last month that the forensic audit would be paid for by IEDC funds. Adams’ role includes serving as IEDC’s leader, but legislation taking effect July 1 separates the positions.

The review will be conducted “in cooperation with” the Indiana Office of Inspector General and the IEDC, governor’s office spokesman Griffin Reid said in a statement Thursday.

FTI Consulting will begin work “immediately,” Reid said.

“We do not anticipate any additional updates until completion of the audit,” he added.

— The Indiana Capital Chronicle covers state government and the state legislature. For more, visit indianacapitalchronicle.com.