SBCSC Releases Statement on State Audit

The South Bend Community School Corporation has released the following statement regarding the Indiana State Board of Accounts audit report publicly released on March 16, 2026.

The audit reflects financial activity and internal control practices during the period July 1, 2022 through June 30, 2023. The findings relate to internal controls and compliance processes during that prior operational period.

The district has already taken steps to strengthen financial oversight, internal controls, and compliance practices, and continues to build on those efforts.

Below is the district’s full statement:

OFFICIAL STATEMENT OF THE SOUTH BEND COMMUNITY SCHOOL CORPORATION REGARDING 2022–2023 STATE AUDIT

The South Bend Community School Corporation issues the following statement regarding the Indiana State Board of Accounts audit report publicly released on March 16, 2026.

The audit reflects financial activity and internal control practices during the period July 1, 2022 through June 30, 2023. It is important to emphasize that the findings referenced in recent media coverage relate to this prior operational period and do not reflect the systems, procedures, and oversight measures currently in place within the Corporation.

The audit identified concerns related to inadequate internal controls and lack of compliance with statutory requirements for certain contracts during that time period. The Corporation acknowledges these findings.

Importantly, well before the issuance of the audit report, the Corporation’s current administration and finance leadership had already begun implementing comprehensive reforms to strengthen financial governance, internal controls, and compliance practices. These actions were undertaken as part of a broader effort to modernize systems, improve accountability, and align operations with best practices.

Those proactive steps include the development and implementation of a comprehensive Internal Control Manual, the establishment of formal procedures requiring legal review of all contracts and agreements, the completion of the first district-wide asset inventory in the Corporation’s history, and the strengthening of financial oversight and compliance practices across departments. These reforms were already underway and directly address the issues identified in the audit.

The audit findings reinforce the importance of these efforts and validate the direction the Corporation has taken to strengthen its financial systems and governance structure.

As a result of improved financial management and stronger operational discipline, the Corporation has been able to make historic investments in its employees, including increasing starting teacher salaries to among the highest in the region, providing significant wage increases for bus drivers, increasing compensation for paraprofessionals and support staff, and implementing improved administrative compensation structures. These outcomes reflect a direct connection between stronger financial oversight and the Corporation’s ability to invest in the people who serve South Bend students.

The South Bend Community School Corporation remains committed to accountability, transparency, and continuous improvement. The Corporation will continue to build on these reforms to ensure long-term financial stability and continued progress for students, staff, and the community.