Tennessee’s Department of Children Services (DCS) neglected to initiate prompt and adequate investigations on child abuse cases due to deficiencies in leadership and oversight, according to an Audit by the Tennessee Comptroller of the Treasury.
The Tennessee Comptroller of the Treasury’s Performance Audit Report on the department found several flaws regarding department management and agency tasks. DCS was audited between September 1, 2022 and September 30, 2025. Auditors said they looked for program effectiveness, efficiency, compliance with provisions of laws, and more.
DCS’s job is to protect children and youth as the state’s child welfare agency. They are tasked with relocating children from unsafe environments, while also ensuring adequate and safe placement while they in state care. The agency also investigates child abuse and neglect allegations.
“Management must strengthen its investigative oversight of Child Protective Services to ensure staff meet key timelines for investigating child abuse and neglect,” the report said.
The comptroller found that administrative delays contributed to inaccurate reporting on child deaths and near-death experiences. These included delayed supervisory and physician reviews.
Many of these deficiencies stemmed from high caseloads and misunderstanding of company policies. Auditors also found staff exhibited sympathy towards alleged perpetrators.
“Staff hesitated to substantiate non-severe cases due to concerns about the impact on the alleged perpetrator’s livelihood,” the report said. “For example, substantiating a dirty foster home could result in a foster parent, who may also be a registered nurse, losing both roles.”
As a result of these shortfalls, Special Investigation Unit (SIU) investigations are affected. This often leaves children susceptible to “unsafe or potentially abusive” situations.
The audit recommended management put an emphasis on an “investigative mindset” when training personnel. This would highlight evidence-based decision-making and more thorough documentations.
Auditors advised investigators to be subject to established benchmarks for “completing and documenting cases.” Management should also consistently review cases and document their findings, while also providing input to stop “recurring problems.”
DCS management agreed these recommendations should be implemented and since being notified says it has initiated case quality reviews, strengthened timeliness and thorough documentation training, and conducted routine supervisory reviews.
While DCS has seen improvements regarding its transitional housing, auditors found they have not fully met “oversight responsibilities for hard-to-place” individuals.
“Children who are the hardest to place often arrive at settings only intended to keep them safe for a single night, a ‘home’ that is not truly a home,” the report said. “Many of these children are older youth with histories of trauma, repeated placement disruptions, or complex behavioral and medical needs that few foster families can manage.”
The report found that while these are meant to be “short-term” options, many children stay in these “crisis settings” for weeks and months.
Auditors noted this a problem not unique to Tennessee, and DCS acknowledged the inequity.
DCS said addressing the issue requires “significant planning, staff resources, and leadership attention.”
“Despite these challenges, DCS has responded with every tool available within its fiscal, staffing, legal, and regulatory constraints,” the report said. “The use of these settings is a last resort, driven by a national crisis in placement availability and the increasing complexity of behavioral and mental health needs among children in custody.”
DCS has employed “specially trained” residential case managers to help the transition process, while also implementing a real estate plan to better children’s experience.
The agency also partners with TennCare and other groups to bridge gaps and create new programming.
After the comptroller’s 2022 audit, DCS began to correct errors related to its transitional housing as well. However, auditors found that the agency does not consistently monitor incident patterns. The comptroller’s office noted recurring problems during site visits conducted between February 2025 and April 2025. These concerns involved supervision of children and youth and the amount of time they stayed in “temporary settings.”
“We also identified new concerns related to overcrowding — missing or incomplete supervision records — and inconsistent reporting, including insufficient staff training on incident reporting,” the audit said.
These issues can cause inadequate and stable housing environments, the comptroller’s office said. Auditors recommended DCS implement a strong review process of transitional housing, while also ensuring compliance with safety standards.
DCS management concurred, and said these transitional settings are seen as a “last resort, driven by a national shortage of appropriate placements.”
“DCS is implementing structured day-to-day operations to improve safety, services, and stability for youth who remain in these settings,” the audit said.
