The Ohio Manufacturing Extension Partnership (MEP), a long‑standing program that provides job training and technology assistance to small manufacturers, is at risk of losing its federal funding. The U.S. Department of Commerce’s Office of Inspector General released an audit covering 2017‑2024 that identified $20.9 million in waste, abuse and unauthorized spending.
Audit findings and recommended action
The audit faults the Ohio Department of Development for inadequate oversight and points to self‑dealing by board members of six local affiliates that received the money. Specific affiliates cited include the Manufacturing Advocacy and Growth Network in Cleveland and the Ohio State University South Centers in Piketon.
Among the questionable expenses are $2.3 million spent on events, marketing and sponsorships, such as $62,954 for promotional T‑shirts and nearly $100,000 for a conference and groundbreaking ceremony hosted by MAGNET. The report also highlights $6.6 million in sales of personal protective equipment (PPE) during the COVID‑19 pandemic, generated from $1 million in pandemic relief funds. The audit says NIST, the agency that oversees the federal partnership, was unaware of this spending and that MAGNET should have reported the revenue, potentially reducing its federal allocation.
Local impact
Federal officials paused MEP funding in December, prompting complaints from Ohio elected officials who view the affiliates as vital training centers. The pause has already forced several affiliates—TechSolve in Cincinnati, FastLane in Dayton and the Center for Innovative Food Technology in Toledo—to announce suspensions or closures. MAGNET remains operational after receiving a $500,000 grant from the Burton D. Morgan Foundation, but it has laid off roughly half its staff and sharply reduced services.
State response
Mason Waldvogel, spokesman for the Ohio Department of Development, said the state has “zero tolerance for fraud, waste and abuse” and is cooperating with the audit. He pledged to review and, if necessary, revise financial reports and strengthen oversight of subrecipients.
MAGNET CEO Ethan Karp contested the audit, claiming the agency was not allowed to review the report before release and that the findings create a “false and unfair picture.” He indicated the PPE effort was carried out at the request of Governor Mike DeWine and that no profit was made.
Potential outcomes
The audit recommends that the National Institute of Standards and Technology (NIST) consider permanently terminating Ohio’s MEP funding and seek to recoup the misspent funds. NIST has said it is reviewing all recommendations, including termination.
If the funding is ended, Ohio could lose a key resource for small‑ and medium‑sized manufacturers that has existed since the 1980s. The program’s regional nonprofit affiliates provide apprenticeships, operational advice and technical assistance that help bring new products to market.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
