A Feb. 5th, 2026 federal compliance audit by the Indiana State Board of Accounts, covering the period from July 1st, 2022 to June 30th, 2023, has raised questions about how the South Bend Community School Corporation spent public money on community organizations, finding the school district could not provide basic records showing what services were delivered in return for the payments.
The audit identified “material weaknesses” in the district’s financial controls and pointed to a broader breakdown in oversight tied to agreements with several local groups.
At issue are payments tied to memoranda of understanding with Mamas Against Violence, LTIA (Let’s Turn It Around) and Kingdom Life Christian Cathedral, including at least $38,400 in federal pandemic relief funds. Auditors also identified an additional $149,870 in questioned payroll costs under the district’s Title I program, where employee contracts and pay rates could not be verified. In total, the audit found at least $188,270 in questioned costs.
Auditors found the district could not show the agreements were formally reviewed or approved by the school board, nor could it produce itemized invoices, service records or other required documentation to support the spending.
Instead, the district provided internal paperwork, including purchase orders, handwritten claim forms and copies of checks, without corresponding records from the organizations.
As a result, auditors found officials could not determine what work, if any, had been performed.
They also found no documentation verifying student participation or that students benefited from the programs tied to the payments.
The organizations named in the report describe their work as youth outreach and violence prevention, but auditors found no records to substantiate those claims either.
The report does not allege wrongdoing by the organizations but highlights gaps in how the district selected, approved, and monitored outside groups receiving public money.
The findings follow earlier reporting by Redress South Bend, which found that South Bend Common Council member Karen White received nearly $100,000 from the school corporation between 2018 and 2024 without formal contracts or written agreements on file. Payments were made to Council member White and to an entity identified as Reaching Higher Grounds, according to district records.
District officials told Redress South Bend, in response to our public records request, that they could not locate documentation explaining the services tied to payments made to Karen White.
The audit also identified broader financial management issues, including unreconciled accounts, reporting errors involving millions of dollars in federal programs and weaknesses in payroll oversight.
Although auditors found the district complied with federal program requirements overall, they recommended stronger approval processes and complete documentation for all expenditures.
The audit leaves the central question unanswered: What did the public receive in return for the $188,270?
Logan Foster
Logan Foster founded Redress South Bend and reports on local government and public records in South Bend and St. Joseph County. He is 31 years old and is majoring in finance. He is a Cleveland sports fan and a longtime season ticket holder of the Cleveland Cavaliers.
