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 ought to be targeted on making certain the authority has the instruments and tradition for fulfillment.
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 latest State Auditor’s Workplace operations audit cited issues with KCRHA’s funding mannequin and provided suggestions for reform.
One factor that must be mounted is the continual scarcity of funds to offer providers to the hundreds of unsheltered folks, in keeping with the audit.
The audit checked out KCRHA’s 2023 operations. Regardless of a price range of about $200 million on the time, the company, created in 2019 to deal with homelessness, discovered itself working within the pink for a number of months that yr. That’s unacceptable.
KCRHA should pay its suppliers for providers earlier than it might probably request reimbursement from its granting companies. “The time it takes KCRHA to obtain this reimbursement varies based mostly on how lengthy it takes to submit the request and the granting companies to course of it. On account of the funding mannequin, there’s a vital timing hole between when the Authority pays suppliers and receives money, leading to a detrimental money stability for components of the yr,” the audit discovered.
When a checking account goes detrimental however bills are nonetheless paid, further fees accrue. For KCRHA, it went within the pink for March, April, Could and December of 2023, and it was assessed overdraft curiosity charges totaling $34,456 — cash that would have been higher used to assist unhoused folks.
The state auditor cited different issues with the company’s operations, together with: In 2023, bills have been $173,158,265, but complete income was $172,639,035.
Whereas the KCRHA earned curiosity for constructive money balances, it paid extra in curiosity expense for its detrimental money balances.
The auditor’s workplace additionally beneficial 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 companies to develop an environment friendly and efficient assessment 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 deal with the money circulation challenges highlighted within the state audit findings.
At a time when the U.S. Supreme Courtroom has allowed municipalities to place the squeeze on homeless folks, a robust and efficient KCRHA is required. That can require higher stewardship of public {dollars}.
