Dover, Delaware — Children in the custody of Delaware’s Division of Family Services have been sleeping in state office buildings that have no showers, no on-site security and no formal rules for how the stays are run, according to a special report State Auditor Lydia E. York released Oct. 14. The same report found the state’s spending on out-of-state placements climbed from about $2.3 million to more than $3.6 million in three years.
A hotline tip about children sleeping on office floors
The review began with a complaint to the auditor’s fraud hotline on Dec. 12, 2024. According to the report, the tipster alleged that youths in the care of the Department of Services for Children, Youth and their Families (DSCYF) were sometimes required to sleep on the floor of Division of Family Services office space under poor conditions, and that the department regularly sent juveniles to out-of-state facilities at high cost.
Auditors toured three offices the report identifies as emergency placement sites: the Churchman’s office in New Castle, the Milford Riverwalk Center and the Silverlake Barratt Building in Dover. The review covered fiscal years 2023 through 2025.
What auditors found inside the offices
The report lists a series of risks for children placed in the offices. There are no shower facilities, so children must travel to another facility or a foster home to bathe. None of the three sites had on-site security personnel or metal detectors, and the Milford office had no active camera monitoring. Because children can leave with staff permission, auditors warned they could obtain drugs or run away.
Staff told auditors about past altercations with youths staying in the offices that led to police contact and medical care for employees. The report also found that medications were stored in areas with inadequate security and that the agency had no formal process for tracking or handing out medication.
Division overtime reached $1.7 million in fiscal 2025, and the report says the office stays add to that cost. Auditors concluded that the temporary and emergency placement process “lack formal structure” and that the absence of a written protocol “increases the risk of physical and emotional harm” for both children and staff.
Delaware has more work to do to build a holistic system that addresses all of the needs of youth in State care.
Lydia E. York, Delaware State Auditor, Oct. 14 news release
Out-of-state costs rose while the caseload held steady
In fiscal 2025, DSCYF had agreements with 27 out-of-state facilities, mostly on the East Coast, and 30 youths were placed out of state during the year. Spending on those placements was about $2.30 million in fiscal 2023, $2.44 million in 2024 and $3.63 million in 2025. Auditors noted that the number of youths in custody stayed the same over that period while lengths of stay varied and contract rates went up.
The report found DSCYF “currently lacks a formalized policy for youth in out-of-state care” and that the out-of-state placement process is not officially documented, which auditors said increases operational, legal and compliance risk.
York told Delaware Public Media she would consider it a problem if even one child had to stay in an office, and said the core issue was capacity.
What the state says comes next
The report says DSCYF is repurposing a cottage on its Faulkland Road campus as temporary housing and that a $6 million line in the fiscal 2026 capital bond bill will renovate a 12-bed facility in Georgetown, with completion estimated for July 2027. Auditors recommended written policies for emergency placements, including an on-call schedule and rules separating boys from girls and youths with criminal charges from those without, standardized medication handling, and periodic cost reviews of out-of-state contracts. DSCYF sent a management response on Oct. 9, which is included as an attachment to the report.
A pattern of children with nowhere to go
Auditors noted that states such as New Mexico, Oregon, Tennessee and West Virginia face the same problem. What stands out in this report is how little was written down: no formal protocol for office stays, no formal policy for children sent out of state, and no count of how many children spent the night in a state building. When an agency removes a child, it takes on the duty to house that child safely. Families who want to understand what that duty means can start with FAN’s guide to foster care system problems.
Key facts
- Report: Delaware State Auditor Lydia E. York, “Youth Care and Placement Special Report,” released Oct. 14, 2026.
- Triggered by a Dec. 12, 2024, fraud hotline complaint that children in DFS custody slept on office floors.
- Three DFS offices used for emergency stays: New Castle, Milford and Dover. None has showers or on-site security.
- Out-of-state placement spending: about $2.30M (FY2023), $2.44M (FY2024), $3.63M (FY2025).
- 30 youths were in out-of-state placements in FY2025, at 27 contracted facilities.
- A 12-bed Georgetown facility, funded with $6M, is expected to open around July 2027.
Sources
- Delaware Office of Auditor of Accounts — Delaware DSCYF – Youth Care and Placement Special Report (2026-10-14)
- State of Delaware News — State Auditor Reviews In-Office Stays, Out-of-State Placements for Youth under State Care in Special Report (2026-10-14)
- Delaware Public Media — Auditor report notes increased costs for out-of-state placements for kids, challenges with capacity (2026-10-18)
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