Brant Family and Children's Services/Facebook Workers stand outside a Brant Family and Children's Services building in a 2018 Facebook photo.

TORONTO — A children’s aid society used $865,000 that was meant for foster children’s education savings to cover operating expenses amid a fight with the Ontario government over funding. Foster agencies in Ontario are required to invest money equivalent to a federal child care tax credit into Registered Education Savings Plans (RESPs) for children in their care. Brant Family and Children’s Services (Brant FACS), the children’s aid society in Brantford, Ont., had 317 children in its care in the last quarter of the 2018/2019 fiscal year. Agencies are required to add $160 per month into an RESP for children under the age of six and $60 per month for kids between six and 17. Brant FACS is $865,000 behind in its contributions because it used the money to cover operating costs, according to a review of the agency done by the Ministry of Children, Community and Social Services. It is unclear when the agency stopped contributing to the children’s RESPs. Children’s aid societies are funded by the provincial government to investigate allegations of child abuse and neglect and place children who cannot be cared for at home with foster families or adoptive parents. Brant more than $1 million short every year Brant FACS ran a $1.8-million deficit on its $23.8-million annual budget last year, the report says. Its total debt is $3.5 million. Ontario started its review of the agency this spring, before a dramatic development brought the agency’s fight for more funding into the public eye.

In March, then-executive director Andy Koster slammed the government’s funding model as inadequate. He had just laid off 26 of his staff members in an attempt to save money. Four months later, the entire volunteer board of Brant FACS quit in protest. “We believe that government underfunding has put the safety of our community’s vulnerable children at risk,” board president Paul Whittam said in a press release at the time. Koster was then placed on leave and replaced with a supervisor appointed by Minister Todd Smith.

We believe that government underfunding has put the safety of our community’s vulnerable children at risk. Paul Whittam

The supervisor, Bernadette Gallagher, did not respond to HuffPost Canada’s request for comment until after this article was published. “The report recognizes that Brant FACS has highly committed and competent staff and strong collaboration with the community,” Gallagher said in an email. “We take the report’s recommendations seriously.” A spokeswoman for the ministry said that the government has been working with Brant FACS to see how they can operate within their budget since 2015. “To further assist the society, the ministry completed an operational review to help the board of directors in managing long-term strategic financial planning,” Genevieve Oger said by email. “The review examined all aspects of organizational governance, service delivery and financial management to steer the society on a path of continuous improvement and sustainability, including addressing the agency’s deficit.” Oger did not acknowledge HuffPost’s questions about the children’s RESPs.

Chris Young/Canadian Press Minister of Children, Community and Social Services Todd Smith is seen outside the Legislative chamber at Queen's Park in Toronto on May 27, 2019. Smith appointed a supervisor to take over Brant Family and Children's Services in July.