If you are in California and she is in Pennsylvania, I would just get out of it altogether because I'd be afraid I didn't understand the whole family dynamic/scope of any problem from just phone contact. I don't know how illegal it is for someone to sleep in their own home at any time, even with young children; one does it at night? And drinking at home is not illegal either. Many parents put their children down in front of TVs and do their own thing (clean house, work at home, etc.). Very hard to prove "neglect" (if her husband woke her when he got home, maybe the kids are allowed to wake her if they want something).

Maybe call and speak to her husband and tell him you are tempted to call and report and tell him you don't feel he is doing anything to ensure his children's welfare, see what he replies to that?