Board members reviewed two financial and oversight items: a Department of Corrections audit produced in partnership with the University of Cincinnati, and a Department of Corrections notification that the agency had $12,348 in unspent grant funds for 2023.

Beau said the audit report is rigorous and "hard on every agency in Indiana," but described it as a tool to identify updates and improvements. The board was told it will meet with the Department of Corrections in April to go through audit findings and develop a corrective action plan focused on updating policies and ensuring case managers use current evidence-based assessments. The director noted some recommendations are administrative (for example, formalizing policies on home visits) and that the audit was presented as a draft that will be reviewed with the department.

On grant accounting, staff reported the 2023 unspent grant amount was $12,348. The board heard that the Department of Corrections reduces future grant awards by the unspent amount; in other words, a $12,348 under-spend in 2023 will reduce the following grant allocation by the same amount. Staff said they have been working with their parent organization and grant coordinators to press for stable funding and to minimize repeated reductions that could affect program quality.

Board members asked whether the $12,348 figure is adjusted for inflation or other factors; staff said no increase was applied and that the amount remains $12,348 for the corrective invoice. The chair described the audit results overall as "good news" despite the small unspent balance and said the agency will work on the corrective action plan with the Department of Corrections.