Last year, the King County Auditor’s Office released a report showing the need for stronger financial oversight at DCHS and identified 19 contracts for further review. Since then, DCHS has not only implemented stronger oversight and internal controls over public dollars, but the department—in partnership with King County’s Finance and Business Operations Division (FBOD)—has now confirmed that no public funds were lost to fraud among the 19 contracts.
Following Clark Nuber’s independent forensic review of the 19 contracts valued at $12 million, an estimated $320,000 in potential improper payments were identified for further review. After reviewing the payments, DCHS found:
- A total of $10,564 in potential fraud from two of the 19 organizations. DCHS disallowed these costs and did not pay them, ensuring no public tax dollars were lost. The Ombuds Office referred both cases to law enforcement.
- DCHS owes a total of $150,248 to six provider organizations. These expenses were billed to DCHS, but payments were paused during the Clark Nuber investigation to ensure a thorough review.
- A total of $57,817 will be recouped from four provider organizations due to a lack of documentation demonstrating costs were allowable under the contract. DCHS will begin the process for recouping these funds this month.
- For the remaining nine organizations, the contracts require no further action and are closed.
“Since last year, DCHS has acted swiftly and transparently to strengthen our financial controls, address identified payments with potential issues, and ensure public funds are properly accounted for,” said Dr. Susan McLaughlin, director of DCHS. “We are committed to continuous improvement, holding ourselves accountable when we fall short, and being responsible stewards of public funds.”
According to the King County Auditor’s Office, the department has “made significant progress on audit recommendations.”
Services funded by DCHS reach more than half a million people in King County each year. From housing and behavioral health care to early education and support for veterans, immigrants and people with disabilities, the department provides critical services across the region.
To learn more about the work DCHS is doing to strengthen oversight, visit our webpage: Strengthening financial stewardship.