PHILADELPHIA — A Pennsylvania government audit says bonuses paid out by organizers of last year’s Democratic National Convention in Philadelphia didn’t violate terms of a $10 million state grant so they don’t have to be repaid.

Auditor General Eugene DePasquale said Monday the grant agreement with the Department of Community and Economic Development didn’t require the Democrats to use up their privately raised funds before spending the state subsidy. DePasquale says “the confusing nature of nonprofit law” and payments to bid and host committee members are leading him to refer his findings to the Internal Revenue Service.

The Democratic auditor general says the $10 million went for venue rental, event production and construction.

Democratic former Gov. Ed Rendell (ren-DEHL’) was host committee chairman and approved $1.037 million in bonuses to staffers and interns.