COLUMBUS — Although the state auditor has found that private foster-care agencies have spent money on such things as fuel for a private jet, sporting events and show horses, the state appears to be backing off a proposed regulation to require more stringent auditing.

        The decision came after the Ohio Association of Child Caring Agencies on March 4 filed a lawsuit, challenging a new state regulation that would require foster-care agencies to pay for an annual audit from an independent firm.

        “It was so extreme, inclusive and expensive that it pushed us over the edge,” said Penny Wyman, executive director of the association. “We believe that with the number of children who need treatment — taking that money out of that pool is irresponsible.”

        The lawsuit claims public money paid to foster-care agencies is private after the agencies are paid and shouldn't be subject to public accountability.

        “We hope the court will decide what is private money and what is public money,” Ms. Wyman said.

        State Auditor Jim Petro strongly disagrees.

        At the request of the Department of Job and Family Services, Mr. Petro's office has performed audits of 25 randomly selected foster care agencies since 1999.

        The audits have raised questions about more than $2 million worth of spending by the agencies that receive money from local, state and federal grants that have specific rules for how the money can be used.

        His office on Friday released two new audits that questioned more than $95,000 in spending by a foster-care agency, including money spent on cigarettes, diet pills and what he termed inflated salaries.

        “They're arguing in their suit that this is private money. We disagree,” Mr. Petro said. “They are accountable for spending the dollars as dictated by law.”

        The audit questioned $34,899 from the St. Joseph Treatment Center in Montgomery County and said most of it was for “unallowed and undocumented costs.” The center is one of several that works with Hamilton County.

        Mr. Petro emphasized the more stringent audits, which he urged the department to accept, are an important requirement because they are critical to holding agencies accountable.

        One of the first agencies audited was Lighthouse Youth Services Inc. of Cincinnati. It had the best audit in the state — $3,120 in expenses was all that was questioned out of a $13 million budget.

        “You can't do any better than that,” said Bob Mecum, the executive director.

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