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KCRHA presents corrective action plan to Seattle committee, asks for outside stabilization support
Summary
King County Regional Homelessness Authority (KCRHA) leaders told the Seattle committee they have submitted a corrective action plan addressing internal control weaknesses found in a Clark Neuber forensic evaluation, requested external stabilization support (consultant or interim CFO) and said a cash analysis will clarify unreconciled receivables (roughly $8 million referenced); KCRHA also set HUD‑readiness and 30/60/90‑day milestones.
King County Regional Homelessness Authority (KCRHA) CEO Kelly Kinison and associate deputy strategy William Towey briefed the Human Services, Labor and Economic Development Committee on June 5 about a corrective action plan KCRHA submitted on May 22 in response to a Clark Neuber forensic evaluation covering 2021–mid‑2025.
KCRHA acknowledged "very serious weaknesses" in financial systems, internal controls and reporting during the 2022–24 period but said the evaluation shows "no evidence of fraud," and that much work to stabilize accounting and reporting is already underway. "There's no evidence of fraud or misuse of funds," Kinison said during the presentation.
KCRHA said the corrective action plan includes more than 70 sequenced milestones. The agency described a two‑phase approach: phase 1 focuses on documenting and implementing policies and controls (30/60/90‑day milestones) and phase 2 will include deeper historical reconciliation. Towey told the committee a top‑level cash analysis to determine the dollar amounts tied to unreconciled receivables will be completed "in the coming weeks," but that contract‑level forensic tracing would be more time‑consuming and expensive.
KCRHA asked for external stabilization support to complete some elements of the plan — ranging from consultants to a temporary CFO — and offered a preliminary ballpark figure. "If we think about the cost of an external CFO and maybe including a year of an accountant, I think we could think about $500,000 over the next 12 months," Kinison said, while stressing the figure depends on scope and procurement approach.
Council members asked how KCRHA will ensure federal funding compliance; KCRHA responded that it is aligning the corrective action plan to COSO and to 2 CFR 200 requirements and targets documentation and evidence ahead of an August 26 HUD submission. Committee members also pressed whether the forthcoming cash analysis will meet city and county contracting standards needed to authorize reimbursements and how much additional historic forensic work is warranted given cost and record quality.
KCRHA leaders said many controls are now in place (monthly closes, controller reviews, contract management improvements via Salesforce) and that some historical reconciliation will require partner participation from the City and County. No formal committee action was taken; KCRHA committed to providing the cash analysis and using a dashboard to report progress to the board and funders.
