Tennessee Audit Finds Progress at Department of Children’s Services, but Core Safety Failures Persist
The Tennessee Comptroller’s Office has released its 2025 audit of the Department of Children’s Services, citing several improvements since the last review but warning that serious, unresolved problems continue to place children at risk.
The audit identifies eight major findings affecting child safety, abuse and neglect investigations, placement stability, healthcare access, data systems, financial oversight, and facility monitoring. Of the issues raised in the 2022 audit, five were fully resolved, four were partially resolved, and four were repeated, underscoring what auditors described as long-standing structural weaknesses.
Oversight Failures in Abuse Investigations
One of the most serious findings involves the Department’s Special Investigations Unit, which handles allegations of abuse or neglect by individuals in official roles. Auditors found weak management oversight, late and incomplete investigations, missed safety checks, and poor documentation.
The audit also revealed that investigators frequently failed to substantiate allegations even when evidence supported doing so. The unit’s substantiation rate stood at 6 percent, far below the national average of roughly 21 percent.
Similar concerns were identified in Child Protective Services investigations, which account for about 95 percent of all abuse and neglect cases. While some improvements were noted since 2022, auditors found continued failures to meet response timelines, conduct required safety assessments, complete supervisory reviews, and properly document cases.
Delays in Fatality Reporting
The audit found that prolonged investigations, delayed supervisory reviews, and staffing gaps prevented the Department from meeting legal requirements to publish timely information on child fatalities and near fatalities. Autopsy backlogs in West Tennessee, lasting up to two years, further delayed reporting.
For nearly 20 months, the Department lacked a physician reviewer for near-fatality cases, resulting in a complete halt of near-fatality reporting during that period.
Unsafe Temporary Housing for Children
Despite some recent improvements, auditors found that the Department continues to rely heavily on temporary and transitional housing for children with complex needs. These settings included transitional homes and, in some cases, state office buildings.
Conditions documented in the audit included overcrowding, children sleeping on mattresses on floors, damaged and unsanitary facilities, missing supervision logs, and incomplete incident reports. Some children remained in office buildings for more than 100 nights. Auditors noted that temporary housing was used statewide every night during the review period.
Outdated Case Management System
The audit concluded that the Department cannot rely on its current case management system, known as TFACTS. Auditors cited duplicate records, unreliable reporting, weak document controls, and extensive dependence on manual spreadsheets and workarounds.
While the Department is developing a replacement system, the project is already behind schedule, with implementation now projected for October 2026. Auditors warned of significant risks related to data migration, testing, and oversight.
Healthcare Delays for Children in Care
Children in state custody also continue to face delays in receiving required medical and dental screenings. The audit found that 11 percent of medical screenings and 16 percent of dental screenings were late. In test samples, more than one-third of cases lacked documentation altogether.
Where documentation did exist, data entry delays averaged more than three months for medical screenings, raising concerns that children may not be receiving timely care.
Improper Stipend Payments
Auditors found weak oversight of provider eligibility determinations, resulting in stipend payments that did not comply with program rules. In many cases, payments were issued before required agreements were signed, and incorrect payment rates were used for younger children, leading to overpayments and misuse of public funds.
Facility and Detention Center Oversight Gaps
The audit also highlighted critical failures in the oversight of residential facilities and juvenile detention centers. These included medication errors, untreated medical conditions, insufficient staffing documentation, and incidents such as assaults and restraints that were never entered into the state system.
Some county-run juvenile detention centers reported zero incidents over a two-year period, a figure auditors said was not credible. The report noted that DCS lacks strong enforcement authority over publicly operated detention facilities.
Recommendations and Response
The Comptroller’s Office concluded that the Department remains challenged in meeting the needs of children with complex behavioral and mental health issues, particularly those placed in extended temporary housing.
The report recommends continued collaboration with state and federal partners and calls for legislative action to expand DCS authority over publicly operated juvenile detention centers and clarify oversight responsibilities related to the Interstate Compact for Juveniles.
In a statement, the Department of Children’s Services acknowledged ongoing challenges while emphasizing progress since the 2022 audit.
“Turning a ship with more than 3,800 employees does not happen overnight,” the statement said. “While challenges remain, substantial progress has occurred.”
The Comptroller’s Office made clear, however, that until core oversight, staffing, and systems issues are addressed, significant risks to child safety remain.
