MEMPHIS — A City of Memphis audit dated Jan. 23, 2026, accused Shelby County Commissioner-elect LaShanta Rudd of improperly using more than $10,000 in grant funding. The audit findings state Rudd has been banned from receiving future City of Memphis grant funds.

The funding was awarded to Rudd's nonprofit, Serving In Christ Outreach. Auditors found the money was used to purchase a used 2015 Nissan Sentra for $5,000 and spend $48.98 on an oil change for a 2007 Honda Odyssey. The audit also stated that another $2,600 in public funds was unaccounted for.

The investigation covered the period from July 1, 2024, to June 30, 2025. During Fiscal Year 2025, the nonprofit received more than $13,000 in city grants. The memo alleged the use of funds for building maintenance, including flooring, HVAC duct cleaning, and a security door. "We noted expenses for residential repairs (flooring, HVAC duct cleaning, security door), a vehicle purchase, including registration, vehicle maintenance and other noncompliant activity," the memo stated. "We determined that these expenses should be reimbursed to the City."

Serving In Christ Outreach has received over $88,000 in municipal funding since its founding in 2010. The Memphis City Council annually awards approximately $2.5 million in grants to various nonprofits. Rudd won the District-10 Democratic primary by a 15-point margin in May 2026. No Republican or Independent candidate filed for the August general election for Shelby County Commission District 10, which covers parts of Orange Mound, Cooper Young, Castalia Heights, and the Memphis Airport area.