By Erica C. Barnett
On this week’s 🚨emergency episode🚨 of Seattle Nice, we discussed a damning new forensic report into the King County Regional Homelessness Authority’s finances, which revealed that the agency could not account for millions of dollars in public funds.
As I reported earlier today, the audit revealed that the KCRHA couldn’t account for $8 million; it also revealed an “administrative overspend” of more than $4 million, on top of a previously reported programmatic overspend of more than $6 million. Beyond the missing money, the repord raises serious concerns about the KCRHA’s accounting practices and use of restricted funds, some of which may have been used for unauthorized purposes.
We discussed what Sandeep described as the “overlapping failures” early in the agency’s history, when the founding CEO, Marc Dones, established a culture in which lived experience of homelessness took primacy over traditional government qualifications, a practice that pushed many of the people who had been managing homelessness contracts at the city of Seattle out and set the agency on a path of lackadaisical record-keeping, few formal financial controls, and accounting practices that included reconciling funds over chat, email, and constant revisions to Excel spreadsheets, rather than traditional government accounting practices.
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A number of elected officials at the city and county have already called for the dissolution of the KCRHA, expressing outrage at the audit findings. That process, if it happens, will be long and arduous, and could spell the end of the much-touted “regional approach to homelessness,” which was the ostensible reason the KCRHA was created in the first place.
But as we also discussed, the city and county—the KCRHA’s two primary funders—also bear some responsibility for letting the agency’s finances and accounting get so out of hand and allowing their bank accounts to fall so far into the red. The KCRHA has long served as a bit of a punching bag for its primary funders, but it was it set up to struggle from the very start, when the city and county signed an agreement creating the agency that did not give KCRHA its own funding source, making it basically a pass-through agency that was occasionally allowed to do side missions—like the ill-fated “Partnership for Zero,” which was supposedly going to end unsheltered homelessness downtown.
The KCRHA’s board will meet at 3:00 on Friday, when it will hear from both agency CEO Kelly Kinnison and Clark Nuber, the agency hired by the city and county to do the forensic report. The public can tune in to the meeting on Zoom.
