MUNCIE — State Examiner Paul Joyce has hired an accounting firm to "identify potential improper use" of $10 million in bond proceeds by Muncie Community Schools.
The "forensic analysis" is also looking at "activity that could negatively alter the bond's tax status under the Internal Revenue Code," according to a contract The Star Press obtained from Joyce's office.
The contract — from April 6 to June 30, 2019, which may be renewed — is with Crowe Horwath, one of the largest public accounting firms in the United States, and was signed by the firm's Tim Berry, from Indianapolis. He's a former state treasurer, former state auditor and ex-chairman of the Indiana Republican Party.
If directed by Joyce, who chairs the State Board of Accounts (SBoA), the accounting firm "agrees to cooperate with the Indiana State Police White Collar Crime Unit," the contract says.
"Mr. Joyce wanted a detailed analysis of the bond issue from when Muncie Community Schools decided to issue the bonds through the current time frame so that he could make a proper decision as to what further steps should be taken," SBoA spokesman Skii Ficklin told The Star Press.
Forensic auditors, who often testify in court, including divorce and criminal proceedings, investigate fraud, waste, asset misappropriation, financial-statement fraud, embezzlement and other matters.