A new audit is highlighting serious concerns with the state’s oversight of thousands of children in the foster care system.
The report is from the Michigan Office of the Auditor General. It found the Michigan Children’s Institute (MCI), the state agency charged with taking care of foster kids when a judge terminates a child’s parental rights, was actively keeping track of fewer than half of those cases.
“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 and conducted only limited monitoring activities for the MCI ward children it had identified,” the audit said.
In its preliminary response, the agency that oversees MCI, the Michigan Department of Health and Human Services (MDHHS), disagreed with the findings. It argued MCI partnered with other parts of the foster care system, including local offices, other MDHHS workers and private agencies, to meet its duties.
“MCI fulfills the statutory requirement to review investigative assessments,” MDHHS said. “Reviews of these investigative reports occur at varying intervals including when adoption or medical consent decisions are being made.”
“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,” the agency said in a written statement.
During an audit period from October 2023 through May 23, 2025, auditors found those requests only came up for 2,200 of the more than 5,000 children in state care. MCI said that doesn’t mean other kids weren’t being watched.
“While not every investigative report is reviewed absent from a precipitating event, MCI consistently reviews relevant documentation and frequently conducts additional inquiry,” the preliminary response said.
But the Auditor General’s Office disagreed that it met legal responsibilities. The office doubted how often MCI was checking in on kids outside of when questions arise.
“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 audit read.
The report also raised concerns that the agency didn’t consistently review homes after children were placed. Regarding medical care, at times, children underwent nonemergency procedures without MCI consent.
Other issues involved non-secure access to personal data and adoption decisions being made without full authority. In 55% of adoption approvals made at the county level, the local director hadn’t received permission from the MCI superintendent.
The agency agreed with those findings and will work to make sure county directors get a sign-off when needed. It says it has hired a consultant to help review decisions.
“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 statement added.
It has roughly two months to come up with a plan to address the findings.
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