The authority said it accepted the critical joint area review by inspectors published last July, but said the recent annual performance assessment published last December failed to acknowledge steps taken by the authority to improve.
The council's interim chief executive Michael Frater said: "Services we have provided to vulnerable children have not been good enough. We must act on it and are doing so. For example, the county council has already restructured its children's services and conducted a thorough review of our vulnerable children cases.
"However, we were disappointed that Ofsted's recent assessment of our children's services gave little regard to so many of the excellent services we already provide to young people in Surrey and the work we are already doing to improve our services to vulnerable children."
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