Auditors discovered 7 registered sex offenders living in homes that had been approved for guardianship, with ten children living in those environments.
A state audit released on September 12th, 2025, has found that Maryland’s Social Services Administration (SSA) repeatedly failed to protect children in its care between May 2020 and May 2024, allowing them to live in unsafe environments, miss essential medical care, and, in hundreds of cases, be placed in hotels under unlicensed supervision.
The fiscal compliance review, conducted by the Office of Legislative Audits, marks the third consecutive time the agency has received an “unsatisfactory” accountability rating. Auditors said SSA failed to resolve six of eight findings from the prior audit, some of which have persisted since 2008.
“This is a broken agency,” said Sen. Clarence Lam, D-Anne Arundel and Howard counties. “Some core functions and systems aren’t functioning properly and haven’t been in place for years.”
Children in Unsafe Homes
Among the most alarming findings, auditors discovered seven registered sex offenders living in homes that had been approved for guardianship, with ten foster children residing in those environments. In another case, a sex offender employed at a group home was later charged with new crimes against children, and one vendor supervising foster children in hotels employed a man convicted of murder in 1990.
“These are children who are under the care and guardianship of the state and deserve every protection we can give them,” said Del. April Rose, R-District 5. “The findings of this audit are not just disgusting and infuriating, but absolutely heartbreaking.”
Missed Health Care
Auditors also uncovered widespread lapses in medical oversight. More than 1,600 foster children—53 percent—missed required dental exams, with some going nearly seven years without care. At least 640 children, or one in four, did not receive annual medical checkups. State law requires such exams to safeguard children’s health, yet the audit concluded SSA lacked the systems to ensure compliance.
Hotel Placements
Between 2020 and 2024, SSA placed 280 children in hotels instead of licensed foster homes, with 82 of those children living there for periods ranging from three months to two years, of which 23 children were still in a hotel as of July 2024.
The practice cost taxpayers $10.4 million, as unlicensed vendors charged more than $1,200 per day to supervise children.
“As a foster care survivor, I’m just heartbroken to know that these things are still occurring, especially when they can be stopped,” said Del. C.T. Wilson, D-Charles County. “Instead of giving them our best, we’re giving them our worst.”
Management and Financial Failures
The audit also revealed a cascade of financial mismanagement. SSA failed to recover $34.5 million in provider overpayments and was fined nearly $700,000 for not meeting federal foster care standards.
The agency missed out on at least $2.6 million in federal reimbursements by not applying and may have lost up to $23 million more due to untimely or incorrect eligibility determinations.
Auditors also cited widespread problems with the agency’s case management system, CJAMS, which failed to flag inaccurate or missing data.
In fiscal year 2024 alone, 2,719 child abuse and neglect investigations were overdue, including 1,762 in a single jurisdiction. SSA also failed to report these overdue cases to the General Assembly as required by law.
Calls for Reform
Maryland Department of Human Services Secretary Rafael López acknowledged the gravity of the findings, saying reforms are underway, including stronger monitoring, updated policies, and new technology systems. Lawmakers from both parties have demanded immediate action.
“This is a complete failure of the state’s most basic responsibility,” said Del. Wayne Hartman, R-Worcester County. “Complete negligence is the only way to describe it.”
The entire 70 page PDF file audit can be read by clicking Here – Department of Human Services – Social Services Administration
