Massive KCRHA Forensic Audit Scandal: $13M Missing and Exposed

By The PNWindependent Investigative Team April 23, 2026

FEDERAL WAY, WA — The long-awaited KCRHA forensic audit was released this week, confirming a catastrophic fiscal collapse within the agency. According to the KCRHA forensic audit, the King County Regional Homelessness Authority is currently facing a $44.7 million deficit and has failed to account for $13 million in public funds. The 60-page evaluation, conducted by Bellevue-based firm Clark Nuber P.S., paints a picture of an organization in total administrative collapse.

Tracing the Missing Millions: Key Findings of the KCRHA Forensic Audit

The most explosive revelation in the KCRHA forensic audit is the $13 million that the agency simply cannot account for. This financial “black hole” includes:

• $8 Million in “Ghost” Receivables: The agency claims it is owed $8 million for services rendered, but auditors found zero documentation to prove these debts exist.
• $4.26 Million Administrative Deficit: Despite massive public infusions, the agency burned through its operating budget, including $1.26 million in interest charges because they were forced to borrow against the King County investment pool.

“Informal Channels” and Credit Card Abuse

The KCRHA forensic audit highlights a shocking reliance on “informal channels” to manage public money. Multi-million dollar accounting discrepancies were frequently “resolved” via chat messages rather than formal documentation. The abuse of Purchasing Cards (P-Cards) was even more blatant:

• 100% Failure Rate: Every single P-Card transaction sampled in the KCRHA forensic audit contained compliance exceptions.
• Shadow Budgeting: Staff bypassed normal contract oversight to spend $1.1 million on P-Cards for large housing payments that should have been subject to public bidding.

The Interim Grift: Executive Overspend

While the agency struggled to pay providers, the KCRHA forensic audit notes that it spared no expense on its own leadership. The agency paid $450,000 for just 11 months of an interim CFO’s services—nearly double the permanent position’s salary. This executive-level spending occurred while the agency was failing to submit invoices to the City of Seattle for up to 16 months late.

Calls to Dismantle the Agency Following the KCRHA Forensic Audit

The fallout from these findings has been swift and severe. Seattle City Councilmember Maritza Rivera didn’t mince words, calling the results of the KCRHA forensic audit proof of “egregious mismanagement” and formally demanding a plan to dismantle the agency entirely. Councilmember Bob Kettle echoed the sentiment, describing the audit as proof of an “epic and consistent failure of leadership.”

For residents in Federal Way and the Greater Seattle area, the question remains: Why is a redundant middleman agency losing $13 million while local shelters and direct-service providers are forced to beg for crumbs?

PNWindependent Take: Tracing the money always leads to the same place: a lack of respect for the taxpayer. When the KCRHA forensic audit shows an agency spending $450k on a CFO who can’t find $13 million, it’s not a mistake—it’s a heist. It’s time to stop the “failed experiment” and return accountability to the people.