The audit suggests that the state has a special relationship with Open Space that it does not have with any other conservation group.

But a federal audit released yesterday suggests that that is exactly what happened.

But the audit suggested that many of the problems were entrenched in State Department procedures and could not be quickly reversed.

The audit suggested that the consultants were paid to make contact with Secretary Pierce and his top aides.

However, a recent audit with DCFS noted this exclusive relationship and suggested that the state provide a bidding process for future contracts.

The audit suggested that thousands of people enrolled in the plan may not be eligible, officials said yesterday.

A federal audit of a sample of the grants suggested that about 1 percent of the $558 million, about $5 million, might have been overpaid.

The audit, released today at a Senate hearing, suggests that the troubles with the Federal Housing Administration funds are far more serious than had been thought.

Saying the authority failed to provide adequate documentation to establish what services residents received, the audit suggests that the money was used to pad the city's budget.

But the audits suggest that contractors are being used for many routine tasks that state workers could presumably handle.