A Virginia program that helps teenage dropouts return to school is at risk of losing its federal funding, according to a state audit. The three-year review of the Virginia National Guard Commonwealth ChalleNGe found about $120,000 in questionable transactions involving state, federal and private funds, according to an audit of the state’s Department of Military Affairs.

The money apparently was taken by a program employee who had access to a petty cash account and other funds and could write checks and make deposits without effective supervision, the audit showed.