Oranga Tamariki service delivery deputy chief executive Shaun Brown said the ministry began increasing staff numbers in January last year and no longer relied on volunteers to run the house.
"Will St now has a staffing structure that includes 12 full-time and six casual kaimahi (staff), including a team leader, the residential home workers, youth workers, night attendants and casual residential workers," Mr Brown said.
At the time of the report, the whare was run by volunteer house parents.
"Two new, paid residential home worker roles that cover the functions performed by the house parents have been put in place."
The practice of housing of young people under care and protection orders at the home was also criticised in the report.
Mr Brown said the practice was only used in urgent situations and a safety and risk assessment was carried out in each case.
"In the five years that the Will St home has been primarily caring for rangatahi with remand status, out of a total of 119 admissions, there have been 11 admissions of rangatahi with care and protection status only."
The report also raised issues related to budget, such as workers paying for food or activities for young people, and receiving reimbursement weeks later.
The current food budget was adequate and funding had always been in place for young people to access community activities, Mr Brown said.
Speaking to the Otago Daily Times yesterday, Children's Commissioner Judge Frances Eivers said it was "completely inappropriate" for children under care and protection orders to be placed in a remand setting.
Although she noted the genuine care of house parents, the facility was designed for young people with "offending behaviours".
She had been assured by Oranga Tamariki that a new budget model had been introduced which should eliminate the need for staff to spend their own money and rely on reimbursement, she said.
"While this is good news, my team and I will be keeping an eye on this issue."