(The Center Square) – A federal agency issued a scathing report on the use of federal funds by the Ohio Department of Development, questioning $20 million in costs and identifying $5 million that could be “put to better use.”

The funds were allocated by The National Institute of Standards and Technology in the Department of Commerce, which oversees the Hollings Manufacturing Extension Partnership

MEP centers “provide manufacturers with services and access to resources to enhance growth, improve productivity, and expand capacity,” according to the federal government.

The federal audit concluded that Ohio “did not report accurate financial results to NIST, and did not make sure that expenses were allowable.

“ODOD did not effectively monitor subrecipients’ compliance with award terms and performance and did not report on subrecipients as required,” the audit said. “ODOD did not verify the accuracy of the Ohio MEP Center’s economic impact data.”

ODOD has received almost $52 million in federal funds since 2016, according to the report.

The audit recommended that the federal government “Determine whether additional enforcement action, including but not limited to termination of ODOD’s award renewal, is warranted due to repeated and significant noncompliance and overstatement of performance.”

The state of Ohio is taking the audit report seriously, Brian Bohnert, spokesman for the ODOD told The Center Square.

“We have zero tolerance for fraud, waste and abuse – and we expect the programs we administer, and the organizations that receive public funds through those programs – to meet the highest standards of accountability and compliance,” Bohnert said.

ODOD “will continue to work with NIST to address the report’s recommendations, including reviewing and, where necessary, revising financial reports to ensure they are current, accurate and complete,” Bohnert added.

ODOD, a cabinet-level state agency, is run by Lydia Mihalik, an appointee of Republican Gov. Mike DeWine in 2019.

This story originally appeared on thecentersquare.com.