The Indiana Department of Education asked state auditors to review the enrollment at the South Bend Community School Corporation's Rise Up Academy following a complaint that students were not receiving an adequate education.

An investigative report released Thursday by the State Board of Accounts found that the South Newton School Corp. enrolled Illinois children between 2014 and 2020 but reported those out-of-state students to the Indiana Department of Education as residents of Newton County, Indiana.

The Indiana State Board of Accounts described the states per-student public school funding formula as an inherent risk because it incentivizes a school corporation to increase enrollment. The higher the student count, the more state funds a school receives.

Indiana wants Daleville Community Schools to repay $2.2 million in state funds connected to the inflated student enrollment at two shuttered virtual schools the district authorized.

An investigation by the Indiana State Board of Accounts says a quest to maximize profit at two virtual charter schools led its leaders to inappropriately collect more than $68 million in tax dollars by inflating student enrollment numbers for years.

In some instances pointed out by the Indiana State Board of Accounts city officials replied that they didn't follow some state-mandated procedures because they weren't aware of them.

The Indiana State Board of Accounts has asked retired Superintendent William Pfister and retired Assistant Superintendent Richard Sopko repay the northwestern Indiana school district for overpayments to their annuities, plus overpaid bonuses, salaries and other compensation.