The council has promised to implement a number of changes to provide better leadership and financial management.
It has pledged to restructure the social work services management team and has agreed to set up an internal but independent group to scrutinise social services from now on.
Other measures include cost control procedures, retraining of managers in organising budgets and better use of information systems.
Managers will also be told to communicate better with social workers.
The independent audit by Price Waterhouse Cooper conducted last year showed a number of problems.
Auditors uncovered several flaws and weaknesses including spending plans being set based on historic and unreliable information and ineffective team co-operation between the social work director John Alexander and his managers.
The report also highlighted concerns that there were only three people from finance monitoring 50people with budget responsibilities.
Dumfries and Galloway Council has admitted serious problems in its social work department after a report highlighted concerns over its financial management.
The audit found its budget has been mismanaged leading to a huge overspend.
The projected overspend is £760,000, and it would have been more but councillors had already agreed earlier to an extra £600,000.
Accountancy technicians will be brought in to help sort out the problem, either from the council's own finance department or an external consultant.
Councillors will meet to discuss the financial management of social services in Dumfries and Galloway.
Members of the Council's Social Work Committee will be presented with a report compiled by external auditors, which revealed a series of failings.
The investigation was carried out following worries about a series of overspends and local MP Russell Brown says the department isn't fit for purpose.