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

A federally funded Ohio manufacturing program that offers job training and technology support to businesses may face termination if federal officials follow up on a recent audit. This program, known as the Manufacturing Extension Partnership (MEP), received $20.9 million in federal funds over a decade. The U.S. Department of Commerce’s Office of Inspector General audited the program and found evidence of poor oversight, waste, and abuse.

The audit highlights unauthorized spending, as well as self-dealing by board members of the six local MEP affiliates. The U.S. National Institute of Standards and Technology (NIST), which oversees the program, is considering terminating Ohio’s funding permanently and attempting to recoup the money. The audit recommends that NIST take these actions due to the program's failure to uphold financial and ethical obligations.

The Ohio Department of Development, which administers the federal money, has stated that they have zero tolerance for fraud, waste, and abuse and are cooperating with the audit. They also plan to review and strengthen their oversight of the programs they administer.