The state agency that audits local governments is taking a closer look at the Indianapolis Office of Public Health and Safety for potential financial improprieties.
The State Board of Accounts began looking into the department last month after an internal city audit found that OPHS contracts went to individuals and organizations with significant connections to OPHS employees, according to Wesley Jones, director of the city’s Office of Audit and Performance.
City officials informed the SBOA of its findings in March, Jones said.
“They have more powers than we do, from an investigatory standpoint,” Jones told reporters following a City-County Council committee meeting. “So we felt it was appropriate for them to take a look.”
SBOA officials did not immediately respond to a request for comment. The board generally audits governments to ensure they are following best practices, rules and regulations and makes recommendations to correct issues.
In addition to potential conflicts of interest, the internal audit found OPHS lacked proper oversight of its programs and finances, which it attributed to unclear policies and procedures, high staff turnover and lack of training.
Councilors hear findings
Jones, along with OPHS Director Andrew Merkley, presented the audit’s findings May 13 to the council’s Public Safety and Criminal Justice Committee.
Merkley, who was named OPHS director in March 2025, said the agency has instituted a number of corrective measures to ensure it’s operating under best practices moving forward.
He emphasized that many of the issues identified in the audit, which looked at the books from 2020 through 2025, happened during the COVID-19 pandemic.
“OPHS was uniquely situated at the time to address the pandemic because we were already addressing many of the quality of life challenges exacerbated by the pandemic,” Merkley said. “Because of the emergency and our focus on implementing critical programs through our grassroots partners and strategies, we often did not have the time to stop and think about what needed to be measured or ensure that we evaluated and trained our staff.”
OPHS oversees programs addressing homelessness, violence reduction, and community nutrition and food policy. It was established by Mayor Joe Hogsett, a Democrat, in 2016, as part of his push for criminal justice reform.
‘Where did it all go?’
The audit has councilors wondering whether the federal government could try to claw back any federal funds that OPHS received during the pandemic.
“Hundreds of millions of dollars came through OPHS, and we’re just concerned: Where did it all go?” asked Councilor Dan Boots, a Democrat. “There’s very little documentation. The reporting process was very loose for grants. My experience is, until you see the report and it’s detailed, you don’t see another penny, and that was not happening.”
Merkley said he’s been assured by the city’s Office of Finance and Management that the agency is in compliance with federal funding requirements.
Republicans say the council should have exercised greater oversight over OPHS funding.
“The city was drunk on a lot of money, and we had money burning a hole in our pocket,” said Councilor Josh Bain. “We are here as a direct result of a lack of oversight from this fiscal body.”
A former OPHS employee told councilors that she wasn’t surprised by the report.
“There were no SOPs (Standard Operating Procedures) in place when I was there, and I begged leadership to put those into place because I knew something like this could happen,” said Shonna Majors, who led OPHS violence reduction efforts from 2018 to 2021.
Some Republican councilors want to put a pause on any future funding to OPHS, though it’s unclear if the council will go that route.
City-County Council President Maggie Lewis, a Democrat, said in an emailed statement that the core mission of OPHS “remains critical” to the public health and safety of residents.
“The City-County Council will continue to closely monitor the implementation of these corrective actions to ensure that public resources are managed responsibly and that programs are delivering results for our residents,” her statement reads.
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Peter Blanchard covers local government. Reach him at 317-605-4836 or peter.blanchard@mirrorindy.org. Follow him on X @peterlblanchard.
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