As recently as July, foster children in at least three California counties were living in homes and care facilities where registered sex offenders also lived or worked.

That's one of several findings in a new report by the California State Auditor. Stephanie Martin explains.

Stephanie Martin: The audit (PDF), released yesterday, focused on just three of the state's 58 counties -- Alameda, Fresno and Sacramento -- and there found more than 1,000 addresses of registered sex offenders, matching the addresses of licensed foster-care facilities and homes.

Fresno Democratic Assemblyman Henry Perea requested the audit. At a press conference yesterday, he expressed his shock at what it revealed.

Assemblyman Henry Perea: It is currently not illegal for a sex offender to live in a foster home, or any other state facility where there are children. Now this to me, as a young father, is just appalling.

Martin: The audit also showed counties are struggling to meet the state's requirement that inspectors visit community care facilities at least once every five years.

Howard Himes is the incoming director of the Fresno County Department of Social Services. He says his agency welcomed the audit -- and it did find 17 sex offender and foster care address matches in Fresno. But a further investigation found 16 required no action.

Howard Himes: There was either not a sex offender in that home, or they had a complex -- an apartment complex -- that had similar numbers. So really, truly when I say there was no issue, I meant that there was not a sex offender in that home.

Martin: Auditors are now planning a similar review of child protective services in Los Angeles County.