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The City of Seattle
Resolution
title
A resolution regarding next steps after the forensic evaluation of the King County Regional Homelessness Authority (KCRHA); requesting that the Seattle Mayor and King County Executive take steps to immediately safeguard public funds, determine if it is feasible for KCRHA to adequately address all of the findings in the forensic evaluation, submit a set of next steps on how the City will approach the dissolution or restructure of KCRHA if determined to be necessary, and submit monthly reports to Council.
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Recitals:
In December 2019, as authorized by Ordinance 126021, The City of Seattle (Seattle) and King County entered into the Interlocal Agreement for the Establishment of the King County Regional Homelessness Authority (KCRHA) in order to provide a coordinated, regional approach that would improve the delivery of homeless services and enhance outcomes for those receiving such services.
In November 2024, as authorized by Ordinance 127105, Seattle and King County entered the Amended and Restated Interlocal Agreement (Amended Interlocal Agreement) to streamline the governance structure at KCRHA to improve transparency, coordination, and oversight.
Past audits performed by the Office of the Washington State Auditor have identified the following issues related to internal controls and negative cash balances at KCRHA: 1) the 2023 Single Federal Audit identified significant deficiencies in the design or operation of internal control over major federal programs; 2) the 2023 Accountability Audit Report found that KCRHA's funding model resulted in a negative cash balance at year-end placing its service levels and future obligations at risk; and 3) the 2022 Financial Audit found that KCRHA did not have effective internal controls in place to ensure accurate and reliable financial reporting and that internal controls were inade...
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