A third-party forensic audit of the King County Regional Homelessness Authority (KCRHA) has revealed that approximately $13 million is unaccounted for, sparking intense backlash from local officials and renewed calls to dismantle the agency entirely.

The audit, which examined KCRHA’s finances from mid-2021 through July 2025, identified several major financial discrepancies: 8 million in unreconciled receivables $4.26 million in administrative overspending, and $1.26 million in missing investment pool interest. Beyond the missing funds, the agency has struggled with a negative cash position that reached as high as $44.7 million in July 2025.

“Epic Failure” of Leadership

The findings have drawn sharp criticism from both the City of Seattle and King County leadership. Seattle City Council member Bob Kettle described the audit results as “damning,” citing an “epic, and consistent, failure of leadership” at both the agency and government levels.

King County Councilmember Rod Dembowski went further, labeling the KCRHA a “failed experiment” and a redundant "layer of government" that should be dissolved. Dembowski argued that the responsibility for addressing homelessness should be returned directly to the city and county governments. Seattle Mayor Katie Wilson echoed these concerns, stating that “all options are on the table” as the city pursues immediate corrective action to protect public funds.

Operational Chaos and Delays

The audit highlighted systemic mismanagement that extended beyond simple accounting errors. Key findings included:

• Severe Invoicing Delays: The agency was 16 months late in billing the City of Seattle for one period and a year late for a King County billing cycle.
• Lack of Oversight: Over 57% of King County invoices were submitted more than 30 days late, making it nearly impossible for management to monitor cash flow.
• Untracked Funds: "Significant infusions" of advanced cash payments from the City of Seattle were not properly tracked.

The Agency’s Defense

KCRHA CEO Kelly Kinnison, who joined the agency in June 2024, defended the organization in a letter to the Governing Board. She attributed the financial turmoil to “startup conditions,” the pandemic response, and a “highly complex funding model”. Kinnison clarified that the $4.26 million in administrative overspend was a result of budget reclassification rather than inappropriate spending and noted that work is already underway to identify the missing $8 million in receivables.

Next Steps

The KCRHA Governing Board is scheduled to review the full audit findings this Friday, April 24. The agency has been given a May 8 deadline to explain how it will address the findings and must submit a formal plan to fix its accounting records and overspending issues by May 23