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King County audit finds potential fraud
The King County Auditor's Office released some disturbing financial findings of four youth programs that received money from the Department of Community and Human Services, saying they uncovered potential fraud, waste and abuse when it came to their grants.
KING COUNTY, Wash. - The King County Auditor's Office released some disturbing financial findings from a county agency, pointing out potential fraud, waste and abuse.
The auditor’s investigation looked at the Department of Community and Human Services (DCHS) and the grants they doled out to four local youth programs.
The independent agency says they uncovered improper payments, potential fraud and a lack of oversight when it came to contracts or grants awarded.
"The Department of Community and Human Services took on a lot of risk with public money without putting in a safety net," said King County Auditor Kymber Waltmunson.
Waltmunson’s office looked at four programs: Family Intervention and Restorative services, Liberation and Healing from Systemic Racism, Restorative Community Pathways and Stopping the School-to-Prison Pipeline.
The four programs are tied to dozens of organizations that received money.
On Tuesday, FOX 13 spoke with King County Council member Reagan Dunn who called for the audit two years ago.
"It’s kind of a disaster. I mean there is a lot of funding going out the door, it’s not controlled, there is evidence of fraud, waste and abuse potentially causing me significant concern as a policymaker," Dunn said.
Auditors found that in some cases, documents were altered to support reimbursements. They also found that unapproved subcontractors were given funds through cash withdrawals. The investigation found other questionable documentation.
The backstory:
The grant budget for DCHS has increased significantly over a short amount of time.
In 2019, they gave out $22 million in community grants. The funding went up to $1.8 billion by 2023 and 2024.
Editor's note: It was originally reported that funding went up by $1.5 billion. After review, the Auditor's Office found that DCHS awarded more than $1.8 billion. "The change in figures does not affect the findings and conclusions in the report," the Auditor wrote in a memo.
FOX 13 asked Waltmunson’s office if they could estimate a dollar amount that was lost to potential fraud and abuse. They say DCHS lacked sufficient documentation to get a reliable estimate. But the agency is working with auditors to identify improper payments to get a better understanding of the impact.
Although there is no exact dollar amount, Dunn says it is safe to assume that millions of dollars have been lost to potential fraud and misuse.
What's next:
Dunn introduced legislation on Tuesday to hold the agency accountable and to fix the current system.
"It will implement best practices used around the country," Dunn said.
Dunn says he expects the legislation to pass full council in about a month.
FOX 13 reached out to DCHS to get a response to the audit. They did not immediately get back to us on this story.
The future of the four youth programs is unclear at this time.
The full audit can be found on the King County website.
The Source: Information in this story came from the King County Auditor's Office, the Department of Community and Human Services and King County Councilmember Reagan Dunn.
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