‘I am shocked and outraged’: $13 million in public funds unaccounted for in King County homelessness agency

Seattle city leaders are calling for major changes after a forensic investigation found $13 million in public funding unaccounted for at the King County Regional Homelessness Authority (KCRHA), according to a post from the Seattle Mayor’s Office.

The mayor’s office said the city will be pursuing immediate corrective action.

“Addressing homelessness is my highest priority, and I have serious concerns about KCRHA’s management of city funds,” Seattle Mayor Katie Wilson said in a statement. “We need to take swift action to protect public dollars. All options are on the table.”

What the King County homelessness agency investigation found

The investigation, which reviewed the agency’s operations from 2021 through July 2025, found millions of dollars unaccounted for and a negative cash position of nearly $45 million, according to Seattle City Councilmember Bob Kettle.

While Wilson said $13 million was unaccounted for, Kettle cited $8 million.

“The report identifies approximately $8 million in unreconciled receivables,” Kettle told KIRO Newsradio via email. “These amounts relate to services that were delivered but require further reconciliation within the accounting system. Work is actively underway, and a substantial portion has already been identified and is progressing toward resolution.”

Meanwhile, KCRHA offered its own breakdown, pointing to $8 million in unreconciled receivables, $6.4 million in budget reclassifications, and a $1.3 million reporting discrepancy. The agency said no evidence of fraud or misuse of funding was identified.

“We take these findings seriously,” KCRHA CEO Kelly Kinnison said in a statement to members of the Governing Board. “Many reflect conditions that I was hired to address and have been working on — and the audit provides important clarity that will help guide our next phase of strengthening KCRHA’s financial systems and organizational performance.”

Seattle council members demand KCRHA overhaul

Seattle City Councilmember Maritza Rivera wants the agency dismantled.

“I am shocked and outraged after seeing the results of the forensic evaluation of the King County Regional Homelessness Authority, which I just received today,” Rivera said in a statement. “It shows an egregious mismanagement of funds and an unacceptable lack of financial accountability.”

Kettle said the findings show systemic leadership failures and a need for stronger regional oversight and accountability.

“The results of the recent King County Regional Homelessness Authority audit are damning. It shows an epic, and consistent, failure of leadership at the top of the agency — especially at its start,” Kettle said in a statement. “It also reveals the failure of leadership of the county and city. The audit reveals troubling systemic issues that can no longer be ignored if we are to address the homelessness and public safety crisis in Seattle effectively.”

The KCRHA investigation was launched due to operational and financial issues at the agency, including leadership turnover, late payments, findings from the State Auditor, unverified accounting of cash advances, cash flow challenges, and overspending on administrative resources, according to the mayor’s office.

Contributing: Frank Lenzi, KIRO Newsradio

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