This report is the third annual update of the Arkansas Child Welfare System by Arkansas Advocates for Children and Families (AACF). It examines the Division of Children and Family Services’ (DCFS) performance data from January 2000 through March 2007. The data shows that DCFS performed well on many of its indicators in the early 2000s, but began experiencing a significant decline in performance in 2004. This decline corresponded with a state-wide shortage of family service workers in 2004 with 23 percent of positions unfilled. DCFS appears to have turned the corner on its staffing shortage as the percentage of unfilled positions has improved to 11 percent. However, many of DCFS’s performance indicators have not yet shown improvement.