The King County Regional Homelessness Authority has undergone months of instability and uncertainty. The Times editorial board said last May that because the KCRHA transitioned to new, everlasting management, the Seattle Metropolis Council and the Metropolitan King County Council needs to be centered on making certain the authority has the instruments and tradition for achievement.
A brand new chief was introduced in final September to assist proper the ship. And the Metropolis Council did simply that when it whittled down the levels of decision-making.
Nonetheless, the current State Auditor’s Workplace operations audit cited issues with KCRHA’s funding mannequin and supplied suggestions for reform.
One factor that must be fastened is the persistent scarcity of funds to offer providers to the hundreds of unsheltered individuals, based on the audit.
The audit checked out KCRHA’s 2023 operations. Regardless of a funds of about $200 million on the time, the company, created in 2019 to handle homelessness, discovered itself working within the purple for a number of months that yr. That’s unacceptable.
KCRHA should pay its suppliers for providers earlier than it may well request reimbursement from its granting businesses. “The time it takes KCRHA to obtain this reimbursement varies based mostly on how lengthy it takes to submit the request and the granting businesses to course of it. On account of the funding mannequin, there’s a important timing hole between when the Authority pays suppliers and receives money, leading to a unfavourable money stability for components of the yr,” the audit discovered.
When a checking account goes unfavourable however bills are nonetheless paid, additional costs accrue. For KCRHA, it went within the purple for March, April, Could and December of 2023, and it was assessed overdraft curiosity charges totaling $34,456 — cash that might have been higher used to assist unhoused individuals.
The state auditor cited different issues with the company’s operations, together with: In 2023, bills have been $173,158,265, but whole income was $172,639,035.
Whereas the KCRHA earned curiosity for constructive money balances, it paid extra in curiosity expense for its unfavourable money balances.
The auditor’s workplace additionally really helpful different methods for KCRHA to repair its issues: Amend the present Interlocal Settlement to implement a brand new funding mannequin that may produce constructive money flows; develop a funding plan that leads to ample and constructive money flows and constructive money balances; work with granting businesses to develop an environment friendly and efficient evaluate and approval course of in order that the authority receives immediate reimbursement of grant funds.
A KCRHA spokesperson stated the company is having ongoing discussions with Metropolis of Seattle companions to handle the money move challenges highlighted within the state audit findings.
At a time when the U.S. Supreme Court docket has allowed municipalities to place the squeeze on homeless individuals, a robust and efficient KCRHA is required. That can require higher stewardship of public {dollars}.
