Feds may end Ohio manufacturing program after audit cites $20.9 million in misspending
Summary
A federal audit found that Ohio mismanaged $20.9 million of federal money meant for a manufacturing job training and support program. The audit recommends stopping Ohio’s funding and recovering the money due to poor oversight and misuse over several years.Key Facts
- Ohio received $20.9 million from a federal program called the Manufacturing Extension Partnership (MEP) over about 10 years.
- The U.S. Department of Commerce’s audit found waste, unauthorized spending, and conflicts of interest by some board members.
- The Ohio Department of Development was criticized for weak oversight of how the money was used.
- Some local groups in Ohio, including those in Cleveland and Piketon, were identified for mismanagement.
- Federal officials paused Ohio’s MEP funding in December after seeing preliminary audit findings.
- Losing funding has caused some local affiliates to consider closing.
- The federal National Institute of Standards and Technology (NIST) is deciding whether to end Ohio’s participation in the program.
- Ohio officials say they have zero tolerance for misuse and are cooperating with efforts to fix problems.
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