Editors Note: This story has been updated and corrected at the request of the King County Department of Community and Human Services
The King County Office of the Ombuds has released an independent review conducted by Clark Nuber, P.S., identifying $690,617 in questioned costs across 16 community-based organizations. While the report highlights significant fiscal mismanagement, the Department of Community and Human Services (DCHS) clarified that over $370,000 of those funds were withheld and not paid, bringing the actual potential improper payments down to $320,000.
The review followed a 2025 Audit of DCHS that originally flagged deficiencies in oversight for four 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. Officials noted that the findings in this report represent a deeper look into information from last year’s audit rather than entirely new discoveries.
The Ombuds Office determined that waste, fraud, or abuse likely occurred in several instances and will refer specific evidence of possible fraud, forgery, or attempted theft to law enforcement. Specific discrepancies identified include:
- Stipends paid for unapproved activities.
- Unsupported cash withdrawals and costs incurred outside of contract periods.
- Missing or insufficient financial documentation and potentially altered documents.
- Potential conflicts of interest and general poor financial management.
DCHS emphasized that not all of the $320,000 in questioned payments constitutes fraud; some instances may simply require additional documentation for verification. Furthermore, a King County Auditor’s report from April indicates that DCHS has made significant progress over the last year in strengthening internal controls and fiscal oversight.
“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. “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 these ongoing concerns, the King County Council previously passed Dunn’s DCHS grant oversight legislation, mandating stricter financial controls and risk assessments. Councilmembers are now working to establish an Inspector General Division to detect and respond to future fraud and abuse. Additionally, new ethics reform legislation has been introduced to strengthen conflict-of-interest rules, requiring that such conflicts be resolved rather than just disclosed.
“Executive Zahilay also deserves tremendous credit for working with me to reform these processes and restore taxpayer trust in our government,” Dunn added.
