Feds may end Ohio manufacturing program after audit cites $20.9 million in misspending
- A federal audit found that Ohio mismanaged $20.9 million received through the Manufacturing Extension Partnership over a decade.
- The audit criticized the Ohio Department of Development for poor oversight and identified unauthorized spending and self-dealing by local affiliates.
- The U.S. National Institute of Standards and Technology may consider terminating Ohio's funding permanently and trying to recoup the mismanaged funds.
- Several local affiliates have announced plans to close due to the loss of funding, which was paused following the audit's preliminary findings.
- MAGNET, one of the affiliates, disputes the audit's findings and claims inaccuracies that misrepresent their operations.
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. The U.S. Department of Commerce’s Office of Inspector General released an audit that 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 unauthorized spending and self-dealing by board members of local affiliates. It specifically criticizes the Ohio Department of Development’s oversight and recommends that the U.S. National Institute of Standards and Technology consider terminating Ohio’s funding permanently and try to recoup the money.
The audit also found that several local affiliates, including the Manufacturing Advocacy and Growth Network in Cleveland, had incurred unnecessary expenses, such as promotional events and marketing costs. Additionally, it highlighted issues with the improper allocation of funds to Cincinnati’s TechSolve, which had failed past performance reviews.
In response to the audit, MAGNET CEO Ethan Karp contested the findings, stating that the agency had not been given a chance to review the report before its release and claimed inaccuracies that misrepresent their operations. The Ohio Department of Development stated it has a zero tolerance for fraud and is cooperating with the audit process.
联邦可能结束俄亥俄州制造业项目，审计指出2090万美元的错误支出
一项长期以来由联邦资助的俄亥俄州制造业项目，提供就业培训和技术支持给公司，如果联邦官员遵循新审计的建议，可能会被永久关闭。美国商务部监察长办公室发布的审计指出，俄亥俄州在十年内通过制造业扩展合作伙伴关系管理不善2090万美元的资金。
报告指出了浪费和滥用的混合情况，包括未经授权的支出和地方附属机构董事会成员的自我交易。它特别批评了俄亥俄州发展部的监督，并建议美国国家标准与技术研究院考虑永久终止俄亥俄州的资金，并尝试追回这些资金。
审计还发现，包括克利夫兰的制造业倡导与增长网络在内的几家地方附属机构产生了不必要的支出，例如促销活动和营销费用。此外，审计还强调了对辛辛那提的TechSolve不当分配资金的问题，该机构在过去的绩效评估中未能通过。
对此，MAGNET首席执行官Ethan Karp对审计结果表示质疑，称该机构在报告发布前未能获得审查机会，并声称存在误导其运营的错误信息。俄亥俄州发展部表示，针对欺诈行为有零容忍政策，并正在配合审计过程。