City won't have to pay back $245,000 in misused grant funds following 'corrective actions'

The city of Springfield will not be required to pay back the federal government for more than $245,000 in workforce development grant money it spent incorrectly.

The U.S. Department of Labor sent a letter to the city Feb. 11 confirming that 59 of the 376 people who received tuition-free job training through Ozarks Technical Community College through a $3 million America's Promise grant were ineligible for the program.

But regulators found the city had taken necessary steps to make sure all of the participants qualify moving forward, so they don't have to pay the money back.

The city initially reported in December that up to 109 people using $470,000 of the grant weren't eligible, but city spokeswoman Cora Scott said after amending some of the grant requirements, that number turned out to be much lower.

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"We are grateful to the Department of Labor for their assistance in this matter," said Sally Payne, the city's director of workforce development. "Our partnership is strong, and we appreciate the collaboration. We also appreciate the continued support of OTC in this and other workforce development initiatives."

Just five of the 59 ineligible participants are still working on job training, and that tuition is being paid by OTC using other funding sources, according to the letter.

The city received the money in 2016 as part of a grant to provide a pipeline of skilled workers in six medical and pharmaceutical professions.

But late last year, city workforce development and finance employees reported that some people who received the training may not have been qualified to receive it.

After an audit and review, the federal government found