Ohio manufacturing nonprofits dispute federal audit alleging $20 million misuse
PN Team • 2 months ago
A federal Office of Inspector General audit alleges Ohio's Manufacturing Extension Partnership (MEP) network and the state's Department of Development misused $20.9 million in federal funding over nearly a decade, citing unapproved expenses and weak oversight. OIG recommended seeking recovery of funds and considering ending Ohio's MEP program, which supports small and medium manufacturers with workforce and technology assistance.
MEP branches, including Cleveland's MAGNET, say they were denied a chance to respond before the report's August publication and dispute the vast majority of its findings. MAGNET's CEO Ethan Karp acknowledged one minor error but called most allegations false, including claims tied to $6.6 million in COVID-era PPE sales he says were requested by the state. The Ohio Department of Development says it fully cooperated with the audit and is strengthening oversight. Funding was already paused after preliminary findings last year, prompting layoffs and the closure of MEP branch CIFT. The National Institute of Standards and Technology will now decide next steps.
Sources:
Sentiment
- Ohio Ohio's MEP network and state department are central to allegations of $20.9 million in misused federal funds and possible program termination.
- State governments of the United States State governments broadly are implicated through Ohio's Department of Development being accused of weak oversight in the misuse of federal funds.
- Cleveland Cleveland is mentioned only as the location of MAGNET, which disputes the audit's findings, giving a mild tangential association.