NASHVILLE (AP) — An audit by the state comptroller's office alleges that Community Health Network Inc. lost or misspent more than $1.2 million over a three-year period, including $700,000 from state funds.

Savannah-based Community Health Network provides technology services for other not-for-profit medical providers, like remote transmission of scans, images and tests.

The audit released Thursday said former CEO Keith Williams and former assistant director Paul Monroe falsified grant invoices and reports, and misused proceeds from a nearly $600,000 state grant to pay for software. They are also alleged to have been paid $90,000 in unauthorized salary and benefits.

Williams resigned in January 2010 and Monroe was terminated shortly after. Neither could be located for comment.

The comptroller's office forwarded the results of the audit to state attorney general's office.