Seattle Councilmember Bob Kettle is sounding the alarm after a newly released forensic audit of the King County Regional Homelessness Authority (KCRHA) uncovered a $44.7 million negative cash position and roughly $8 million in transactions auditors could not reconcile. Kettle, who chairs the City Council’s Public Safety Committee, is calling for a fast turn toward tighter financial oversight and far clearer transparency so the agency can reliably keep shelters open and services running.
“The results of the recent King County Regional Homelessness Authority audit are damning,” Kettle said in a council news release, calling out “troubling systemic issues that can no longer be ignored.” According to the Seattle City Council, the evaluation was jointly commissioned by the City of Seattle and King County and carried out by Clark Nuber P.S., covering KCRHA operations from 2021 through July 2025.
Audit findings and financial picture
The council release states that auditors documented a negative $44.7 million cash position as of the end of July 2025, along with about $8 million in transactions they could not reconcile. The Clark Nuber team examined how contributed funds were used and allocated, what was driving the recurring negative cash balance, and whether KCRHA’s accounting and reporting systems were up to the task. The audit’s scope also allows for additional targeted procedures if any suspected malfeasance surfaces, according to the council notice.
These findings stack on top of earlier oversight that had already raised red flags about KCRHA’s accounting controls and reimbursement model. A follow-up by the King County Auditor pointed to ongoing implementation challenges in homelessness program oversight, and outside reporting highlighted prior state-auditor findings about material misstatements and control weaknesses at the authority. Reporting from the King County Auditor’s Office and coverage of those earlier state audits set the backdrop for this latest review.
What this means for shelters and oversight
The timing of the audit lands as KCRHA has already been tightening its belt. The authority announced layoffs last year in response to a projected $4.7 million shortfall and cuts that leaders said would save roughly $3 million annually. FOX 13 Seattle reported on the staff reductions and the agency’s attempt to rebalance operations while keeping payments to service providers intact.
City officials, meanwhile, have signaled they will proceed with a major shelter expansion that will, in part, be handled directly by the City instead of routed entirely through KCRHA as the region digests the audit’s findings. Local reporting has noted that the city and county jointly hired Clark Nuber for the review and are watching the results closely as they decide who will run upcoming shelter procurements and how to bolster oversight. PubliCola and other outlets have laid out how the audit ties into recent shelter-planning moves at City Hall.
Kettle is pushing for a regional strategy “that operates with a defined purpose, compassion, and accountability,” urging the City and County to move quickly on governance fixes and financial controls. KCRHA’s public meeting packets show the authority continuing with regular governing board briefings and budget discussions this year as it responds to oversight findings and updates its financial policies. The KCRHA governing-board materials outline ongoing internal reviews and scheduled briefings.
For now, the audit tightens the timeline for elected officials and KCRHA leadership to explain how public dollars were handled and what concrete steps will keep providers paid and services operating. Kettle’s statement signals that the council intends to press hard for answers as the city, county, and authority sift through the report and decide what happens next.
