OIG's Evaluation of MEP's Economic Impact Reporting Process Also Identified Instances of Noncompliance at Centers, Led to NIST Action

The National Institute of Standards and Technology’s (NIST’s) Hollings Manufacturing Extension Partnership (MEP) is a national network of 51 MEP Centers—in all 50 states and Puerto Rico—providing any U.S. manufacturer with resources to improve production processes, upgrade technological capabilities, and facilitate product innovation. NIST makes federal financial assistance awards in the form of cooperative agreements to state, university, and nonprofit organizations to operate the Centers.

This report provides additional results identified during our evaluation of MEP economic impact reporting (OIG-24-037-I), as well as actions taken by NIST in response to our work. Specifically, the report provides details on two specific instances in which our work prompted NIST to conduct its own review and issue notices of material noncompliance to Centers.

First, we found that the California Center and its subrecipient did not accurately report program income. Second, we found that the Maryland Center’s use of state grant funds was unallowable and not properly reported. Our findings in both cases led to NIST issuing the Centers notices of material noncompliance.

We made four recommendations to help NIST recover amounts owed by these Centers, ensure that the California Center and its subrecipients accurately report program income, and ensure that the Maryland Center correctly uses funds on other NIST awards.