The Atlanta Journal-Constitution reports that auditors also found lax and inconsistent practices by government regulators. State officials say they're moving quickly to correct those issues.
The audit is scheduled to be released Friday. The newspaper said it obtained an advance copy.
The Childcare and Parent Services program helps low-income parents with child care costs and also subsidizes child care for foster children after school and in the summer.
Among concerns cited by auditors: 699 people received $2.4 million in combined child care subsidies in 2010-2011, although records show that each was exceeding the income eligibility requirements by an average of $5,366.