A longstanding, federally funded Ohio manufacturing program that provides job training and technology support to companies could be shut down for good if federal officials follow recommendations in a new audit. In an audit released this week, the U.S. Department of Commerce’s Office of Inspector General faulted Ohio for poor oversight of $20.9 million it received over a decade through the Manufacturing Extension Partnership. The report identifies a mix of waste and abuse, including what it said was unauthorized spending, as well as self-dealing by board members of the six local affiliates that received the federal money, which is passed through by the state. The report specifically faults the Ohio Department of Development’s oversight, as well as actions by local affiliates, including the Manufacturing Advocacy and Growth Network in Cleveland and Ohio State University South Centers in Piketon.
Audit recommends trying to recoup money from OhioThe audit recommends that the U.S. National Institute of Standards and Technology, which oversees the federal partnership, consider terminating Ohio’s funding permanently and try to recoup the money. “Receipt of federal financial assistance is a privilege. This audit, as well as our prior work, demonstrates that the Ohio MEP Center failed to uphold its financial and ethical obligations, resulting in inadequate oversight and mismanagement of public funds,” the audit says.
