A new audit finds non-profits hired by the state to find foster homes for abused children have misspent more than $12 Million in state funds between 2010 and 2011.

The office of legislative services found that the department of children and families spent over $39 million on contracts to care for 522 children. Of the 20 organizations hired, 12 of them had spent millions on employee bonuses, holiday parties, and some did not remit taxes owed back to the state. Stephen Eells is state auditor.

“We found some of those provider contract costs weren’t always related to the program, they weren’t reasonable, and really some of the divisions fiscal monitoring of those contracts we just didn’t feel was adequate.”

Eells says they are recommending that the department end the contracting program and keep all cases in house, and says they will be following up to ensure its recommendations are followed.