Cut-price cars, pay rises and trips by foster care charity execs face scrutiny

A New South Wales charity tasked with finding foster homes for children is facing serious allegations of misusing taxpayer funds, including a significant pay rise and an overseas trip for its chief executive. The organization, which receives millions under state government contracts to support over 100 children, is the subject of a confidential forensic audit ordered by the Department of Communities and Justice (DCJ).

The audit, covering operations from October 2022 to June 2025, revealed that the charity's chief executive received a pay increase from $181,761 to $300,574 in the financial year ending 2024, a 65% jump. This occurred in the same year the executive was allegedly awarded a $120,000 pay rise without formal approval. Additionally, the audit flagged nearly $41,500 spent on a sabbatical to the US and Europe for the chief executive, and about $8,600 for a trip to New Zealand involving the chief executive, deputy chief executive, and board chair. These travel expenses were among over $98,000 flagged as potentially non-compliant.

Beyond travel and salary concerns, the audit uncovered that $1.6 million in funds was not properly accounted for due to under-reporting interest income, overcharging for services, and failing to document asset sales. Taxpayer money was also allegedly spent on Airbnb stays, rugby league sponsorships, parties, and alcohol. The DCJ is investigating five other organizations holding similar contracts, with three facing contract non-renewal and three others subject to new conditions.

The DCJ initiated the audit following a "high volume of complaints" regarding the chief executive, "financial impropriety, and a perceived lack of board oversight." The findings raise significant questions about the oversight and accountability of charities entrusted with public funds meant to support vulnerable children and young people.