Our objective was to determine the adequacy of National Institute of Standards and Technology's (NIST’s) oversight of MEP to ensure requirements are met. We found that NIST’s inadequate oversight of Hollings Manufacturing Extension Partnership has led to inefficient use of financial resources and concerns that recipients did not comply with key award terms. Specifically, we found NIST did notrequire Centers to use unexpended program income (UPI) during the award period and allowed Centers to retain substantial amounts of UPI from federal financial assistance awards; review executive salaries for reasonableness, resulting in Center executives receiving considerable salaries in excess of limits used by other federal agencies; andaddress potential conflicts of interest amongst recipients.
Open Recommendations
| Recommendation Number | Significant Recommendation | Recommended Questioned Costs | Recommended Funds for Better Use | Additional Details | |
|---|---|---|---|---|---|
| 1 | Yes | $0 | $5,434,263 | ||
| We recommend that the Under Secretary of Commerce for Standards and Technology and Director of NIST change policy to ensure (1) UPI is strategically reinvested into MEP and (2) if UPI is not reinvested into MEP, withhold federal funds until UPI is used to pay down allowable project expenses. | |||||
| 2 | Yes | $0 | $0 | ||
| We recommend that the Under Secretary of Commerce for Standards and Technology and Director of NIST conduct a thorough review of executive compensation for reasonableness as required by Departmental and NIST criteria. | |||||
| 3 | Yes | $0 | $1,454,544 | ||
| We recommend that the Under Secretary of Commerce for Standards and Technology and Director of NIST establish policy limits on executive compensation for MEP, including restrictions on Center and subrecipient salaries. | |||||
| 4 | Yes | $0 | $0 | ||
| We recommend that the Under Secretary of Commerce for Standards and Technology and Director of NIST establish procedures to (1) ensure recipients disclose in writing any potential conflict of interest to NIST consistent with award terms and (2) promptly review any such disclosures. | |||||
| 5 | Yes | $0 | $0 | ||
| We recommend that the Under Secretary of Commerce for Standards and Technology and the Director of NIST review all disclosed related party activities identified by us and previously reported to NIST and take any action deemed appropriate. | |||||
