A new audit of Indianapolis' Office of Public Health and Safety found six high-risk problems with how the agency manages its programs and spending — including conflicts of interest involving current and former staff, missing documentation on most contracts and no formal way to measure whether programs are working.
The city’s public health office, established in 2016, oversees programs focused on homelessness, violence reduction, and behavioral health. The office’s budget has grown by 75% from 2020 to 2025 — now totaling more than $33 million.
The audit was conducted by the Office of Audit and Performance, an internal city office that reports to Mayor Joe Hogsett's administration.
The review raised concerns about potential conflicts of interest. Several contracts were awarded to vendors with close ties to current staff — including one vendor who was employed by the agency at the time. Those relationships were not disclosed, and auditors found no documentation showing safeguards were in place.
Auditors also flagged a $75,000 grant awarded in November 2024 to a local private school's tuition-free summer program for underserved youth. The grant began under a former OPHS director who sits on the executive leadership of the school's partner organization that operates the camp. Auditors said the arrangement created "a perceived conflict of interest that could cause reputational harm to the office."
The audit found widespread problems with contract oversight. In 84% of contracts reviewed, invoices were missing documentation, incomplete, or didn’t follow contract terms — including inconsistent billing schedules, weak supporting records, and delayed payments.
Auditors also found that 51% of contracts lacked sufficient programmatic documentation, meaning the agency couldn't fully show what services vendors had actually delivered.
The agency lacks formal processes to evaluate whether its programs are effective, auditors said, meaning outcomes are not consistently measured or used to guide decisions. Staff also told auditors there is no standard process for addressing vendors who fail to meet contract requirements.
Mayor’s office, council member responds
In a joint statement, the Mayor's Office and OPHS said the mayor initiated the audit last year and that agency leadership supported the review as a chance to strengthen internal controls. The statement also defended the office's results, pointing to emergency food assistance for nearly 10,000 people when SNAP benefits were temporarily paused last fall.
"Indianapolis residents deserve accountability and action — and that is exactly what Mayor Hogsett and the Office of Public Health and Safety are delivering," the statement said.
Andrew Merkley, appointed OPHS director by Hogsett in March 2025, leads the office. The agency said updates to financial policies and processes were underway before the audit was completed.
Those changes include:
- Establishing standard operating procedures for contracts and programs
- Developing public-facing data dashboards
- Creating a digitized approval process for invoices and payments
- Working with the city’s purchasing division to expand procurement and ethics training for staff
The Marion County Republican Party is calling on the City-County Council to freeze funding until those issues are addressed.
City-County Councilor Michael-Paul Hart says he wants clearer data on the office’s effectiveness before supporting additional funding.5
“I really don't want to give them another cent on programmatic expenditures until they can get their operations efficient to begin with — instead of just throwing money at it and saying, ‘Yep, good luck,’” Hart said.
Farrah Anderson is an investigative health reporter with WFYI and Side Effects Public Media. You can follow her on X at @farrahsoa or by email at fanderson@wfyi.org.
