Community Services Minister Linda Burney today said DoCS' response in the case of the 12-year-old was inadequate, but said it was "stretched'' by ``other competing cases'' involving neglect and abuse.
The girl's mother let the child's older boyfriend move into their home when she was 11, and reportedly allowed the two to sleep in the same bed.
When the girl's father, who was separated from her mother, found out about this he pleaded with DoCS staff to do something but they failed to act, Dubbo MP Dawn Fardell said.
He took custody of his daughter in March after his ex-wife was placed in a mental health unit, which was when he discovered she was pregnant, Ms Fardell told NSW Parliament in March.
"The father is beside himself," she said.
DoCS this morning acknowledged it had been aware of the girl's case.
"DoCS had received reports about this girl previously," a spokeswoman said.
"Because of more urgent cases, the department took some action to investigate this case, but acknowledges more intensive casework could have been done."
Community Services Minister Linda Burney said: "I'm of the view, as is the department, that there should have been more strident intervention than happened," she said.
"This is a very difficult family dynamic and I'm advised that at the time the father made the call raising his concerns, in terms of other competing cases, it was determined there were other cases.
"My advice is there were some very severe neglect and abuse cases being dealt with at the time."
She said an extra $520 million would be allocated to child protection in today's state budget in response to the department's resource constraints.
DoCS was now working closely with the family, and would provide counselling and parenting services for the girl and "look at the best options for the baby", the DoCS spokeswoman said.
The girl's father and his partner would raise the baby, Ms Fardell said.
She said the girl's father had also claimed his daughter's boyfriend had "a history" and was "known to all the services".
Police were unable to intervene because the girl did not want the matter investigated, a spokeswoman said.
"The girl was interviewed by police in the presence of her father, however she declined to cooperate with the investigation," she said.
Police were informed of the situation on March 31, she said.
About only a tenth of cases reported to the DoCS helpline were followed up with a visit by a caseworker, an inquiry into the Department of Community Services found last year.
A thorough review of the department last year by Justice James Wood revealed it was being swamped by calls to its helpline.
Justice Wood's inquiry found almost 303,000 calls were made to the DOCS helpline in 2007-08, almost doubling from 159,643 in 2001-02.
A large number of these cases were not appropriate for reporting to DoCS, and had diverted resources away from needy cases, Justice Wood said.
"Too many reports are being made to DoCS which do not warrant the exercise of its considerable statutory powers,'' Justice Wood said in the report.
"As a result, much effort and cost is expended in managing these reports, as a result of which the children and young people the subject of them receive little in the way of subsequent assistance, while others who do require attention from DoCS may have their cases closed because of competing demands on the system (that is, insufficient resources).''
Almost 100,000 - or about a third of calls - reported to the DoCS helpline in 2007-08 were made by police under mandatory reporting guidelines, the report found. Police told the Wood inquiry they lacked the expertise to distinguish serious cases from less urgent ones.
In its response to the Wood inquiry, the State Government has proposed that only children at risk of "significant harm'' will be reported to the DoCS helpline, leaving specialist "wellbeing units'' in health, education, housing and police departments to deal with less serious cases.
The changes were to take effect from January 1 next year.
with AAP