Audit: Tennessee Department of Children's Services failed to investigate sexual abuse reports

The Tennessee Department of Children's Services failed to adequately investigate dozens of reports of sexual abuse and sexual harassment allegations in its state residential facilities in 2021, according to a scathing state Comptroller report released this week.

The state audit also found DCS ignored dozens of additional reports of alleged consensual sexual activity between residents, which DCS officials allegedly deemed not worthy of internal investigation due to the consensual nature of the activity.

"Although these acts were not considered sexual abuse or sexual harassment, they may indicate a lack of supervision at the facilities, which the department has a duty to investigate," the audit states.

"If DCS does not address all potential sexual abuse, sexual harassment, and lack of supervision allegations within all facilities, then they cannot be sure they are providing a safe, humane, and secure environment for all children under DCS’s care, especially those that live in non-juvenile justice focused facility settings."

The department countered that in residential facilities, DCS refers sexual abuse allegations between children ages 13 and 17 directly to law enforcement. But DCS did not follow up with those cases after referral.

The audit marks an additional blow to the beleaguered department, which is currently grappling with critical staffing and placement issues.

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The comptroller's office examined a cross-section of 2021 cases, when the department was under the leadership of former Commissioner Jennifer Nichols. Gov. Bill Lee replaced Nichols earlier this fall, installing Margie Quin, a former Tennessee Bureau of Investigation official, to lead the agency.

On Wednesday, Quin and her team as well as auditors from the Comptroller's Office testified before a legislative committee about the findings. Quin pledged to evaluate and make changes to the department and its processes.

"The Department of Children's Services has its challenges that go back several years," Quin told the committee. "I'm here to find answers. Some of that will be difficult."

DCS Deputy Commissioner of Child Protective Services Carla Aaron said some sexual abuse investigations into DCS-contracted facilities fell through the cracks because the unit responsible for the investigations used a different software system than the one used by caseworkers. Aaron said the department was working with Vanderbilt University on improvements to the system.

DCS Chief Information Officer Meghann Stacey then explained the two systems should be merged by the third quarter of 2023.

Auditors also told the committee that the department was not in compliance with the federal Prison Rape Elimination Act (PREA) as it related to juvenile facilities. It found the department used outdated PREA policies, did not monitor all facilities for compliance during 2021, and that there were delays in both initiating and conducting investigations.

The 164-audit delves into myriad issues within the department, several of which the comptroller notes have been continually flagged over the years by state authorities and audits.

"Without committing to a robust strategic planning and risk assessment process, management hinders their ability to address the root cause of and to fix systemic issues that have plagued DCS for years," the audit states.

DCS failures contribute to child safety concerns

The audit, released Tuesday, found DCS is "struggling" to adequately care for the thousands of children in its care through foster and residential facilities, and repeated management failures jeopardize the "safety, permanency, and well-being of Tennessee’s most vulnerable children."

These findings were bolstered by a concerning incident outlined in the report, in which one employee was investigated 22 times by DCS' internal Special Investigations Unit but continued to work with residential children until the employee was criminally charged with aggravated assault.

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The employee in question, who was not named in the report, was flagged for a high-level review in late 2020 and the SIU had noted "safety concerns" related to excessive use of force and injuries to children requiring medical treatment.

The SIU couldn't substantiate the abuse reports, though, and the employee briefly left DCS employment in 2020.

He was then hired by a different DCS provider, working directly with children, and was again referred for investigation for another six incidents.

In March 2022, after a number of children escaped from a Nashville-based residential center, the employee allegedly chased and fired a weapon at the kids, according to the audit. The employee was indicted and criminally charged with aggravated assault and reckless endangerment with a deadly weapon.

"Current management indicated that SIU did not feel that this individual posed any new safety concerns up until the March 2022 incident, despite management’s access to prior SIU investigative results where SIU had noted safety concerns," the audit states.

Longstanding issues with the department's data system were also outlined in the audit. The department has spent $125 million in state and federal funds in recent years to shore up the failing system, but it continues to contribute to problems with case management.

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Quin last month requested $69.3 million in next year's budget to overhaul the system, in addition to $11.4 million for private provider case management as DCS struggles to keep its head above water due to the staffing shortages. The department is also seeking more money to raise staff salaries in an effort to stem a flow of departures from the department, which reported a 47.7% turnover rate for first-year case managers in fiscal year 2023.

Other findings in the audit include:

• In 92% of sexual abuse cases that fall under a significant federal rape law, DCS did not move "through the investigative process in a timely manner";
• Children remained in abusive and/or unsafe locations as case managers struggled to conduct "timely investigations;"
• Some children in state custody experienced significant delays in vital medical and dental screenings due to DCS' outdated computer and filing systems;
• Case workers fail to make "essential monthly supervision contacts" with children, families and school providers in probation cases;
• Background check processes for employees and volunteers were disorganized.

“The crisis at the Department of Children’s Services is widespread and well-documented," Sen. Heidi Campbell, D-Nashville, said in a statement in response to the audit. "There is no excuse for inaction, halfhearted fixes or more delay. The department’s top responsibility is to keep children out of harm’s way and we will sound the alarm until the state lives up that promise.”

Lee's office did not respond to a request for comment.

Josh Keefe contributed to this report.

Reach Melissa Brown at mabrown@tennessean.com.