The Manitoba government is terminating its agreement with a Brandon company to provide housing for youth in care.

This after a third-party report led to an investigation that discovered "significant'' financial deficiencies.

The government says there were problems with the company's financial management, accounting policy and procedures.

Brightscape says it has just under 30 children in care at 14 homes in the Brandon area, of which 70 per cent are Indigenous, Black or people of colour.