SEATTLE — Following an audit by the King County Auditor’s Office, concerns about improper payments and fraud have been raised regarding the Department of Community and Human Services (DCHS).
On Tuesday, the auditor’s office shared alarming findings of that audit that started in 2024 with the King County Council.
They indicated that DCHS may have mismanaged funds in the millions, which could lead to potential fraud.
King County Council member Reagan Dunn asked the KCAO to look into the agency and was shocked by the findings.
“Well, it’s a total disaster,” Dunn said.
During Tuesday’s presentation to the county council, King County Auditor Kymber Waltmunson says over the past few years, DCHS’s grant funding increased from $22.5 million to $1.5 billion, and that hundreds of grant recipients were at high risk for fraud.
Which she told council members she was alarmed by that.
“While I feel very positive about the direction that DCHS is moving, I was alarmed by the level of internal control failure that we encounter during this audit,” Waltmunson said.
Principal Auditor Megan Ko explained to county council the reason for their findings was due to a lack of oversight and practices by the agency when it came to granting funds.
“These payments took place in part because DCHS did not have written policies or procedures or best training to inform staff how they should be reviewing and approving expenses,” Ko said.
Councilmember Dunn has introduced legislation that would bring in more oversight to crack down on fraud and waste.
“That is why I just proposed legislation that will adopt best practices for grant management, administration, and training technical assistance that other counties and the federal government use,” Dunn said.
Kelly Rider from DCHS spoke at Tuesday’s meeting about the audit. She says the agency has taken them to heart and is complying with the King County Auditor’s recommendations.
“I will and my team will move with urgency and diligence to stand up the structures that the auditor is recommending,” Rider said. “We have onboarding in place for new contractors. We are developing long-term training programs for our providers and partners,” she said.
DCHS issued a statement on the findings, stating that the pandemic played a role in the outcome of the audit.
“The recommendations highlight areas where we fell short of our own high standards and offer concrete opportunities to improve our practices that we will work on implementing.”
They stated that, in response to the audit, they will bring in an external financial consultant, and they are going to investigate the issue further.
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