The state is preparing to award a half-million-dollar grant to an after-school program that government auditors accused of misusing nearly $200,000 in public funds.

SCO Family of Services, an extended school day provider, collected $194,320 in expenses from the Education Department that were unrelated to its programs, according to state Comptroller Tom DiNapoli.

Auditors said the Long Island-based provider misspent $90,348 to pay staff who worked when the program was not running, $3,173 for an adult aerobics class, and $2,670 on disc-jockey services.

DiNapoli faulted SCO for not adequately monitoring two contracts.

An SCO spokeswoman said the organization is taking the audit “very seriously.”