Criticism of child protective services in New South Wales in the wake of two scathing reports by the office of the auditor general has continued, with AbSec labelling the findings "alarming, but in no way surprising".

On Thursday, two reports found the Department of Communities and Justice (DCJ) does not monitor the wellbeing of children in out of home care, failed to effectively safeguard the rights of Aboriginal children in contact with the child protection system, and were not complying with legislated principles for the protection of First Nations children.

AbSec - the NSW Child, Family and Community Peak Aboriginal Corporation - said the reports "perfectly reflect the experience of AbSec and its various members when dealing with the child protection system".

Chief executive John Leha told National Indigenous Times the "system has been designed to prioritise removal of Aboriginal children from their families, rather [than] invest in the early supports that families need".

"Instead of all the money that goes to out-of-home care we need to see more resources to keeping them out of care in the first place. We need to keep families together and bring more of our children home," he said.

He called for the full implementation of all the recommendations by the audit office, as well the implementation of all 126 recommendations from the Family Is Culture (FIC) review, released in 2019.

"It's been nearly five years since Professor Megan Davis provided her FIC report and not enough has been done to act upon it," Mr Leha said.

"Had the FIC recommendations been implemented; we would not be seeing the continuing failure to safeguard the rights of Aboriginal children and their families. The Audit Office points to systemic failure at eliminating racial bias in assessment, practice, governance, and accountability."

Greens MP and spokesperson for Justice, Sue Higginson said: "Heartbreakingly, there is nothing new in these reports."

"We have known for years the way the DCJ is failing our most vulnerable children, especially First Nations children," she said, noting it has been five years since the FIC report.

"(The report) is a roadmap to reform the harmful system separating First Nations families on an industrial scale.

"Both major parties recognised in parliament the importance of its recommendations, but no government has taken serious action since its publication."

On Thursday, the NSW government said the DJC will accept, or accept in principle, all recommendations in both reports.

NSW Minister for Families and Communities Kate Washington said the government was working to prepare the system, however, "there are significant issues in every direction, so it's going to take time to deliver the outcomes children and young people deserve."

Of the 14,000 children in OOHC as of June 2023, 45 per cent were Aboriginal.

AbSec and Higginson have been vocal in their criticism of the DCJ and the use of out-of-home-care (OOHC), as well as alternative care arrangements (ACAs), with AbSec have called for an immediate halting of the latter.

An interim report in May, authored NSW Advocate for Children and Young People, Zoë Robinson, highlighted shocking cases of neglect, sexual assault, and children being exposed to rampant drug use whilst being placed in ACAs.

In February, a new "restoration taskforce" was created to oversee efforts to see as many Indigenous children returned to their families from the child protection system as is deemed safe.

At the time, Minister Washington said the government was "committed to reducing the over representation of Aboriginal children in the child protection system, in partnership with Aboriginal leaders, stakeholders and communities".

On Thursday, Mr Leha said AbSec and Aboriginal Legal Service NSW/ACT are currently negotiating a partnership agreement to redesign DJC policy, practice and assessment approaches in engagement with Aboriginal families.

"Aboriginal children, families, communities and Aboriginal community-controlled organisations deserve nothing less than a fundamental transformation of the child protection and care system," he said.

"We need a system that is built on the right to self-determination, one that is not leading us down the path of another Stolen Generation."