Today, King County Executive Girmay Zahilay and Seattle Mayor Katie Wilson released the following statement after the independent financial monitoring firm they jointly directed be embedded in the King County Regional Homelessness Authority (KCRHA) completed its initial reconciliation of the agency’s financial records:
“Earlier this year, we required stronger oversight and independent financial monitoring at KCRHA to get clear answers about the agency’s finances and address longstanding failures in financial management. Today’s findings are a direct result of that work. The $17 million unrecoverable balance is unacceptable, and the County and City are working together to address repayment while protecting critical services for people experiencing homelessness.
“We have already required corrective action, brought in independent financial monitoring, and worked with the Governing Board to establish additional approval requirements for hiring, discretionary spending, and new financial commitments. This reconciliation is an important step toward a reliable accounting of KCRHA’s finances. Our work continues to strengthen controls and ensure corrective actions are carried through.
“These findings reinforce why we announced a plan in July to stabilize, right-size, and reset KCRHA. We are preparing to return administration of locally funded service contracts to the City and County beginning in January 2027, while preserving KCRHA’s essential regional functions. Next, we will bring regional partners together to chart a stronger path forward. That work must establish clear responsibilities, stronger accountability, and measurable results for people experiencing homelessness and the public.”
Background
The forensic evaluation released in April revealed concerns about KCRHA’s internal controls and fiscal management. In response, Executive Zahilay and Mayor Wilson required KCRHA to submit a Corrective Action Plan, detailing how the agency would address the findings.
That plan was submitted in May. The County and City’s assessment of the agency’s plan found that it lacked clear timelines and deliverables. In response, Executive Zahilay and Mayor Wilson announced that the county and city would jointly embed a financial monitoring firm into the agency.
The monitoring firm, Turning Point Strategic Advisors, began their work in July as part of the “stabilize” effort announced in the Executive and Mayor’s three-part plan. One of their early tasks was improving internal controls and reconciling financial records back to 2021 to understand where the unreconcilable and negative cash balances came from.
Read Turning Point’s evaluation here.