The King County Regional Homelessness Authority (KCRHA) is defending itself after a forensic audit found millions in public funds unaccounted for, triggering sharp criticism from Seattle and King County leaders and renewed calls to dismantle the agency.

The audit—commissioned jointly by Seattle and King County—identified between $8 million and $13 million in unreconciled or unaccounted‑for funds, depending on the reporting source, along with overspending, interest charges, and a negative cash position exceeding $40 million.  

Audit Findings: Millions Missing, Controls Weak

Auditors reported:

• $8 million in unreconciled receivables, meaning the agency could not match payments to the correct funding sources. 
• Up to $13 million in public funds unaccounted for, according to the Seattle Mayor’s Office and our news partner FOX 13 News. 

• $4.26 million in overspending, including $1.26 million in interest charges due to a negative balance in the King County Investment Pool.  
• A negative cash position of $44.7 million accumulated between 2023 and mid‑2025. 
• Weak internal controls, especially around gift cards, purchase cards, and reimbursements—areas auditors said were vulnerable to fraud, though no fraud was found.  

The audit covered KCRHA’s operations from its launch through mid‑2025, a period marked by leadership turnover, delayed provider payments, and inconsistent accounting practices.  


KCRHA Responds: “Startup Chaos” and Corrective Steps

KIRO 7 News obtained KCRHA’s first formal response, in which CEO Kelly Kinnison acknowledged the financial problems but argued they stemmed from the agency’s rapid startup and cost‑reimbursement funding model—not from fraud or intentional misuse. 

Kinnison outlined several corrective actions:

• Transaction‑by‑transaction reconciliation to resolve the $8 million receivables gap.
• New pre‑approval requirements for all gift card, purchase card, and reimbursement spending.
• Employee training on financial controls.
• Elimination of five of seven purchase cards to reduce risk.
• A mitigation plan to reduce interest‑driving negative balances.  


KCRHA also emphasized that the audit found no evidence of fraud, a point echoed by FOX 13 News.

Political Fallout: Calls for Dissolution Intensify

The audit prompted immediate and forceful reactions from Seattle leaders.

Seattle City Councilmember Maritza Rivera called the findings “egregious” and said the agency should be dismantled, citing a “history of dysfunction and inefficiency.”  

Seattle Mayor Katie Wilson said the city will pursue “immediate corrective action” and demanded a detailed plan to recover missing funds and fix administrative failures. 
King County Executive Girmay Zahilay said the region must be honest about the system’s failures and insisted on stronger accountability measures.  

KCRHA board member and Seattle Councilmember Dionne Foster told KIRO 7 she still has “remaining questions” about how the agency lost track of so much taxpayer money.  


What Happens Next

Seattle and King County have issued a joint letter of expectations requiring KCRHA to:

• Produce a timeline to recover missing funds
• Correct overspending
• Document and control gift card use
• Strengthen segregation of duties
• Improve reimbursement and accounting processes  


Meanwhile, several Seattle officials are preparing legislation that could begin the process of dissolving the agency entirely.