Feds may end Ohio manufacturing program after audit cites $20.9 million in misspending

A recent audit has revealed that a federal manufacturing program in Ohio, known as the Manufacturing Extension Partnership, may be discontinued due to mismanagement and spending issues. The U.S. Department of Commerce's Office of Inspector General found that the Ohio Department of Development failed to properly oversee the $20.9 million in funds allocated through the program over a decade.

This report highlights unauthorized spending and self-dealing by board members of the program's local affiliates. The audit recommends that the National Institute of Standards and Technology, which oversees the federal partnership, consider ending Ohio's funding permanently and attempt to recover the money. The Ohio MEP Center had already faced the suspension of its funding in December, which led to several affiliates announcing plans to close.

The program's funding was set to expire at the end of next month, regardless of the audit's outcome. State officials have been awaiting the audit's completion since last fall, and the federal government has paused millions of dollars in MEP funding following the preliminary findings.