Audit finds Seattle homelessness agency can’t account for $13 million

King County Executive Girmay Zahilay and Seattle Mayor Katie B. Wilson on Wednesday demanded answers from the King County Regional Homelessness Authority, or KCRHA, about the missing and overspent public funds. An audit published last week showed that the KCRHA could not account for roughly $13 million in public funds, despite the fact that it had only been around for roughly five years. Roughly $8 million seemed to have fallen through the cracks of the agency’s books, the audit said. The agency also had a $4.26 million operating deficit, including $1.26 million in interest charges believed to be unrecoverable. The mayor and county executive emphasized that they remained committed to addressing homelessness while also maintaining accountability for taxpayer funds.

What does the KCRHA have to say about the audit? The agency, which says it seeks to end homelessness in the Seattle area using equity and social justice principles, insisted that the audit did not find evidence of fraud or misuse of funds, but still made it clear that the agency had work to do on its bookkeeping and financial management. The agency said it was working with the city of Seattle and officials in King County to address the issues discovered in the audit.

How are officials trying to address the problems found in the audit? Zahilay and Wilson demanded that, within 30 days, the agency show documented improvements to its systems for handling employee reimbursements and approvals for expenditures and invoices. The officials also ordered the agency to address inconsistencies in its financial records. Additionally, they ordered the agency to freeze all hiring and discretionary spending and establish a financial review committee.

Dig deeper: Read Addie Offereins’ report in WORLD Magazine about the Trump administration’s new strategy for addressing homelessness.