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Posted: 5:40 p.m. Tuesday, Nov. 27, 2012

Inspector General questions $255,000 in grant spending

By Laura A. Bischoff

Columbus bureau

COLUMBUS —

The state inspector general is calling into question $255,730 in spending from a $1 million workforce training grant administered by a coalition of groups in southwest Ohio.

Inspector General Randy Meyer issued a 20-page report on Tuesday that details a lack of documentation, questionable spending and other problems with the Constructing Futures project.

The project, which was funded with federal stimulus money from January 2010 to June 2011, created pre-apprenticeship programs in the building trades that would provide remedial education, job training and other support services to Ohioans. In southwest Ohio, a coalition headed by the Laborer’s Local 265 JATC won a $998,976 grant. Although it was federal stimulus money, the grant was administered by the Ohio Department of Job and Family Services.

The inspector general is charged under state law to act as a fiscal watchdog over federal stimulus spending in Ohio. Meyer’s office reviewed Constructing Futures grants given in northwest, central and southwest areas of the state.

Investigators found a lack of documentation proving participants attended training classes but were paid stipends or given gift cards anyway and three organizations in the coalition failed to account for the staff time they charged to the grant. Investigators questioned two building rental arrangements and cell phone services.

The report said the Department of Job and Family Services, which experienced staff turnover during the grant period, gave conflicting information to grantees about what was allowed or prohibited and failed to properly monitor the administration of the grant money as it was being spent.

Meyer’s office recommended that state officials review the $255,730 in questioned costs and request repayment where appropriate. The inspector general referred the report to the U.S. Department of Labor and State Auditor Dave Yost for consideration. It also sent it to the Ohio Bureau of Workers’ Compensation and state Department of Taxation for review of issues of whether the coalition groups may have improperly classified contract workers.

Ohio JFS spokesman Ben Johnson noted that the individuals named in the report are not state employees. “We appreciate the inspector general bringing this to our attention and we will work to resolve the matter,” he said.

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