Are We There Yet? Improving Governance and Resource Management in Children's Trusts found considerable local uncertainty about what the trusts are required to do by law.
More than a third of directors of children's services said trust partners were unclear about the functions of local arrangements.
Released yesterday (29 October), the report claims central government is partially to blame because evolving policy has spawned "inconsistent" guidance.
Michael Hughes, director of studies at the Audit Commission, said: "It's probably rare to find a children's trust where there hasn't been confusion."
Five years after the Laming Inquiry into the death of Victoria Climbie recommended their creation, the local government watchdog found children's trusts had neither improved outcomes for children and young people nor delivered better value for money in children's services.
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