The King County Council unanimously approved a motion to evaluate KCRHA’s financial condition and identify possible system improvements.
SEATTLE — King County officials laid the groundwork for potential structural changes to the King County Regional Homelessness Authority after an audit found the agency could not account for $13 million in public funds.
On Tuesday, the King County Council unanimously approved a motion to evaluate KCRHA’s financial condition and identify possible system improvements before any structural changes are made to the agency.
“Since its formation, the number of people living on our streets has nearly doubled,” Councilmember Rod Dembowski said. “Coupled with its repeated inability to get its financial affairs in order, and the serious risk to King County’s budget, investment pool, and taxpayers, it’s clear to me that we must exercise the County’s right to withdraw from the KCRHA as soon as practicable.”
The adopted motion requests reports from County Executive Girmay Zahilay on corrective actions taken by KCRHA, administrative funding shortfalls and options for addressing identified gaps. The reports will also include benchmarks, metrics and accountability measures to guide future decisions on whether to continue, amend or terminate the county’s participation in the interlocal agreement governing KCRHA.
“Withdrawal and transition of services will be handled carefully and in coordination with our partners and stakeholders,” Dembowski said. “Today’s action will facilitate that process. Both the taxpayers and those living unsheltered on our streets deserve better. We should waste no more time – and risk no more public dollars – in fixing this.”
Zahilay’s office is expected to provide an initial briefing in June, followed by a final report by Aug. 1.
The KCRHA is currently drafting a document for the county council that will include a variety of planned, corrective measures, including how it will address issues related to unreconcilable funds and administrative overspend.
In April, an independent forensic evaluation found KCRHA could not account for $13 million in public funds, among a number of other “operational and financial issues at the agency,” according to Seattle Mayor Katie Wilson’s office.
In a statement, KCRHA said the report did not identify evidence of fraud or misuse of funds, and that the findings instead highlight the need for improved financial controls and reporting practices.
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