ALBANY -- The state Comptroller's Office has cleared one company in its probe of how taxpayer money intended to attract and retain nurses who care for very sick children was actually spent.

Comptroller Thomas DiNapoli says his auditors found Stafkings Healthcare Systems of Binghamton has accounted for its use of $254,000. In September, Stafkings was one of three companies DiNapoli said inappropriately used Medicaid funds.

Stafkings President Daniel King, who disputed the accusation, says DiNapoli's auditors quickly found the funds were spent properly. He says such a mistake is understandable with a new, complex program.

DiNapoli says Monday his office continues to review spending by the other two companies: Pioneer Homecare Corp. of the Bronx and Jos-El Inc. of Valley Stream.