Nine New Jersey foster-care charities that receive a combined $40-million in taxpayer funds put $4.2-million of the money into extravagant or impermissible expenditures, according to state audit on which The Star-Ledger of Newark reports.

The auditor for the nonpartisan Office of Legislative Services cited the contractors for billing the state for a holiday party, gifts, fundraising workshops, and bonuses paid to foster families.

Officials with several of the agencies sharply criticized the audit, saying many of the questioned expenditures were approved by state officials, including a country-club holiday party put on by an Atlantic County, N.J., charity at which foster children and families received gift cards and merchandise.