Inspectors said leaders in Bury were found to lack rigour in their evaluation of the strengths and weakness of support in the local area, and displayed a "worrying degree of complacency".
"There has been a misplaced attitude that provision for children and young people who have special educational needs and/or disabilities was good," states a letter outlining the findings of a joint Ofsted and CQC visit.
"It is only with the arrival of a number of newly appointed leaders that there is less delusion about the reality of the situation."
However, inspectors said that not all leaders share the accurate view that the new leaders have - a situation that has "hindered the pace of reform".
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