The King County Office of the Ombuds has released an independent review uncovering significant fiscal mismanagement and potential criminal activity within several community-based programs. The report, conducted by Clark Nuber, P.S., identifies $690,617 in questioned costs across 16 of the 19 community partners reviewed.

The review was initiated following the 2025 Audit of the Department of Community and Human Services (DCHS), which first identified serious deficiencies in contract oversight and financial controls. The investigation focused on four specific youth and diversion programs: Family Intervention and Restorative Services, Liberation and Healing from Systemic Racism, Restorative Community Pathways, and Stopping the School-to-Prison Pipeline.

According to the Ombuds Office, the findings indicate that waste, fraud, or abuse likely occurred in certain instances. Specific evidence pointing toward possible fraud, forgery, or the attempted theft of funds will be referred to law enforcement for further investigation. Detailed discrepancies found in the review include:

• Stipends paid for unapproved activities.
• Unsupported cash withdrawals and costs incurred outside of contract periods.
• Potentially altered documents and missing financial documentation.
• Conflicts of interest and general poor financial management.

“This report confirms exactly what I was afraid we’d find when I started calling for an audit all the way back in 2023,” said King County Councilmember Reagan Dunn, who first flagged these programs for scrutiny. “These programs can’t just be left to operate on their honor – they need oversight and regular scrutiny to ensure taxpayer dollars actually reach the people they are intended to help”.

In response to the ongoing concerns, the King County Council has already taken steps toward reform by unanimously passing Dunn’s DCHS grant oversight legislation, which mandates stricter financial controls, risk assessments, and contractor monitoring.

Looking forward, Councilmember Dunn is collaborating with Executive Girmay Zahilay and other colleagues to establish an Inspector General Division dedicated to detecting and responding to fraud and abuse. Additionally, new ethics reform legislation has been introduced to strengthen conflict-of-interest rules and require the resolution of such conflicts rather than simple disclosure.

“There is still much more to do, and I look forward to working... to strengthen oversight, recover public funds, and ensure King County has the tools it needs to protect taxpayer dollars,” Dunn concluded