Audit Reveals Oversight Issues in Michigan’s Foster Care System
Michigan’s foster care system is under scrutiny following a report by the Michigan Office of the Auditor General, which highlights significant oversight shortcomings. The report specifically points out that the Michigan Children’s Institute (MCI) is actively monitoring less than half of the foster care cases under their jurisdiction.
According to the audit report, the MCI, responsible for the guardianship of children whose parental rights have been terminated, has not conducted sufficient monitoring activities. The report states, “MCI had not identified and/or carried out any monitoring activities to help ensure its guardianship role and responsibilities were fulfilled for over half of all MCI wards.”
Despite these findings, the Michigan Department of Health and Human Services (MDHHS), which oversees MCI, disagrees with the audit’s conclusions. The MDHHS contends that MCI works collaboratively with various entities, including local offices and private agencies, to fulfill its responsibilities. “MCI fulfills the statutory requirement to review investigative assessments,” stated MDHHS, noting that reviews occur at different intervals, particularly during adoption or medical consent deliberations.
MDHHS affirmed its commitment to the welfare of children in its care, expressing in a written statement, “The Michigan Department of Health and Human Services (MDHHS) cares deeply for the children it serves and remains committed to promoting their safety, stability and permanency.”
During the audit period from October 2023 to May 2025, it was found that only 2,200 of the over 5,000 children in state care had their cases reviewed. MCI responded that while not every report triggers a review, it consistently evaluates relevant documentation and often conducts further inquiries.
The Auditor General’s Office, however, remained unconvinced about MCI’s compliance with legal obligations, expressing concerns about the frequency of their case reviews. “Without identification of MCI wards and/or consistent monitoring procedures, we question MCI’s ability to ensure it is always consulted and/or is appropriately notified of significant case activity for all MCI wards,” the report stated.
Further issues identified in the audit include inconsistent home reviews post-placement, noncompliance with medical consent procedures, and unsecured access to personal data. Notably, 55% of adoption approvals at the county level were made without the required consent from the MCI superintendent.
MDHHS acknowledged these gaps and committed to ensuring that county directors obtain necessary approvals. The department has engaged a consultant to review decision-making processes. The statement from MDHHS added, “MDHHS also has taken steps to strengthen adoption consent processes through improved authorization procedures, better conflict-of-interest monitoring, updated consent timelines and increased staffing to ensure timely and well-supported consent decisions.”
The department has approximately two months to develop a corrective action plan in response to the audit’s findings.
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