Ongoing audit delays loans for cash-strapped Muncie schools
MUNCIE, Ind. (AP) — An ongoing audit of Muncie Community Schools has delayed a $12 million state loan the financially struggling central Indiana school district needs to continue its recovery.
State-appointed emergency manager Steve Edwards told school board members last week that the loan has been delayed by a forensic audit that's needed to identify potential misuse of $10 million in bond proceeds the district received several years ago.
Indiana's state examiner hired accounting firm Crowe Horwath in May to conduct the audit.
The Star Press reports that the $12 million loan was authorized by the Legislature and Gov. Eric Holcomb under legislation authorizing Ball State University to take over governance of the school district.
The district's emergency management team is scheduled to discuss the loan Tuesday with members of an Indianapolis law firm.