The HSE has said the special care unit for disruptive children at Ballydowd will remain open on an interim basis, despite HIQA calls for the use of the facility to cease immediately.
The HIQA report warned that children should not be placed in the units until they were brought up to standard.
In a statement, the HSE said the interim measure was important due to the significant increase in referrals for special care services this year.
It said that planning for replacement units was progressing and one of the existing units would be fully refurbished within a fortnight.
The second unit will be refurbished to the HIQA standard by the end of October, according to the statement.
Last November the HSE promised to close the two units at Ballydowd following an earlier inspection report by HIQA, which was highly critical of practices in the units and of their physical condition.
It said this would be completed within timeframes set by the needs of the resident children.
But between then and last month's inspection, there have been five admissions to one of the units and two discharges.
Three girls were still resident there in July.
Inspectors found this unit was unsuitable for the purpose of providing a good standard of special care.
A year ago inspectors found that the special care unit was unable to provide sufficient therapeutic services.
Last month they found this was still the case and that a number of the external professionals interviewed expressed concern about this.
Files on residents were found in an unlocked building on campus as were tools, which could be dangerous if residents accessed them.
Inspectors also said that a number of the 62 staff has not received training in child protection as laid down by the State-approved guidelines 'Children First' and that managers should provide it.
Fine Gael Children Spokesperson Charlie Flanagan has said he supports HIQA's call for the closure of the special care units.
Mr Flanagan said: 'All special care units for children should meet agreed standards. The consequences of unsuitable and inadequate care facilities for vulnerable children have been made painfully clear.
'It is quite simple. If a State facility, especially one involved in the care of children, is repeatedly failing to meet its duty of care towards residents then it should be closed.'
