The administration of the programme was judged 'poor', with uncertain prospects for improvement.
The inspectors said there was little evidence of partnership working and services were not providing value for money. They recommended the council writes a timetable for developing a five-year strategy that identifies the roles of partners.
Supporting People is the government's programme for local delivery of housing related support services to
Supporting People Lincolnshire strategic co-ordinator Jonathan Cope said: 'Clearly the report is a disappointment. However, the partnership agrees that this has been an important wake-up call for all involved in the Supporting People programme in Lincolnshire.'
He added: 'Members of the partnership have been working since the inspection to put in place action plans to make the programme operate more effectively in the future.'