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King County Washington home

Strengthening financial stewardship

Learn more about the work DCHS is doing to be stronger stewards of public funds.

DCHS is strengthening how we oversee public dollars. Take a look at all we’ve accomplished and what’s to come.

Actions to date

Prior to 2024, DCHS had begun taking steps to strengthen financial stewardship, including growing our Contracts & Procurements team, and launching Agiloft, a system for centralized and standardized solicitation, contracting, and invoicing processes and documentation across the department. Since then, our work has continued.



July 2024

Formation of Fiscal Contract Compliance & Program Monitoring Workgroup to increase fiscal contract compliance and program monitoring consistency.

May 2025

Fiscal and finance staff complete anti-fraud trainings, with additional anti-fraud trainings to come for all DCHS staff.

June 2025

DCHS submits a budget proposal to the Executive Office, requesting an increase in staffing and technology tools to strengthen financial stewardship.

July 2025

New Contract Compliance Monitoring Policy clarifying roles, timelines, and procedures for program and fiscal compliance monitoring.

September 2025

DCHS forms cross-divisional workgroups, decision-making processes, and communication channels to drive change as we implement the audit recommendations and broader department-wide policy shifts.

September 2025

DCHS hires a financial external consultant to identify areas of improvement and help strengthen internal infrastructure.

October 2025

Best Starts for Kids brings on a fiscal compliance lead that is actively working on trainings and supports.

October 2025

The Children, Youth, and Young Adults Division hosts a training on document review for Best Starts for Kids contract and fiscal management staff.

October 2025

Approximately 40 Best Starts for Kids contracted providers participate in a fiscal management best practices training.

October 2025

The Veterans, Seniors, and Human Services Levy Summit holds a financial management training for approximately 30 service providers.

October 2025

At the King County Council’s request, DCHS submits three separate reports detailing next steps being taken to implement the audit recommendations and additional actions to strengthen financial stewardship.

October 2025

DCHS and Public Health – Seattle & King County (PHSKC) launch a cross-departmental workgroup to identify opportunities for efficiencies in compliance monitoring.

November 2025

External consultant completes an assessment and gap analysis of DCHS’s contract set up and governance, post-award contract and invoice management, accounting and reporting, fiscal compliance, and technical assistance and capacity building. A phased implementation plan will now be developed.

November 2025

After completing investigation of 11 of the 19 potential improper payments referred to DCHS by the auditor, the investigation is now with the Ombuds Office. DCHS continues to collect documentation on the rest of the eight payments to send to the Ombuds.

December 2025

DCHS hires Contract Management Best Practices Manager to support with development and implementing consistent policies and procedures.

December 2025

DCHS finalizes the hybrid payment model risk assessment. This model is a type of contract where DCHS pays a set amount at a point of time based on contract budgets. The assessment will inform future mitigation steps.

January 2026

DCHS completes an internal review of all potential improper payments identified by the auditor and has referred them to an external investigator managed by the King County Ombuds Office.

March 2026

DCHS launches three provider trainings to support community-based organizations

March 2026

DCHS implements nine new policies and procedures to strengthen internal controls:

  1. Enforcement of current Terms and Conditions involving subcontract review and approval
  2. General invoice verification and processing
  3. When a contract amendment is needed
  4. Managing stipend payments
  5. Managing prepaid card logs
  6. Addressing over or underspend for contracts using the hybrid payment model
  7. When a contract termination is warranted and how contracts should be terminated
  8. What entities DCHS can contract with
  9. Managing documentation related to contracts and invoices 

April 2026

DCHS launches department-wide Anti-Fraud Training

Status update: Responding to the audit

What does each status step mean?

  1. Developed
  2. Established
  3. Trained
  4. Implemented
  5. Complete

  • Developed: Policies, procedures, trainings and job aids for staff are developed and approved.
  • Established: Policies, procedures, roles and responsibilities are established across staff and contracted providers.
  • Trained: Staff and providers are trained on new policies and procedures for contract compliance, fiscal compliance, and fiscal stewardship.
  • Implemented: Staff and contracted providers are using new policies and procedures enforced by the department.
  • Complete: The King County Auditor's Office considers the Recommendation complete. No additional action needed at this time.

This section will be updated at the beginning of each quarter.

Recommendation 1

Fiscal management

The Department of Community and Human Services should develop, document, and implement a strategy to strengthen internal controls for financial management that includes, at a minimum, 1) a clear vision of how financial stewardship relates to program goals, and 2) the role of compliance, fiscal, and program staff in supporting fiscal stewardship.


Status

  1. Developed
  2. Established
  3. Trained
  4. Implemented
  5. Complete

DCHS worked closely with an external consultant to complete a current state assessment and gap analysis.

DCHS is now finalizing work to ensure recommendations from the King County Auditor’s Office and Council are fully integrated. This will include how DCHS will strengthen its’ infrastructure, improve internal controls, and ensure accountability to fiscal and program goals.


Recommendation 2

Fiscal management

The Department of Community and Human Services should work with Public Health – Seattle & King County to develop, document, and implement a plan to identify opportunities for efficiencies in the financial oversight of organizations funded by both departments.


Status

  1. Developed
  2. Established
  3. Trained
  4. Implemented
  5. Complete

A joint DCHS and Public Health – Seattle & King County workgroup is currently mapping existing financial monitoring and risk assessment processes and identifying areas for efficiencies. The group is now working on implementing a joint strategy, with completion planned for June 2026.


Recommendation 3

Fiscal management | Contract management

The Department of Community and Human Services should develop, document, and implement a plan to offer ongoing anti-fraud training for all staff. At a minimum, this training should include information on the impact of fraud, why people commit fraud, how to identify it, and how to report it.


Status

  1. Developed
  2. Established
  3. Trained
  4. Implemented
  5. Complete

DCHS developed anti-fraud training for department staff. The training incorporates input from King County’s Finance and Business Operations Division, Public Health – Seattle & King County, and key DCHS staff.

The training has now been launched, and all department staff are required to complete it by December 31, 2026


Recommendation 4

Fiscal management

The Department of Community and Human Services should conduct and document the results of a risk assessment of its hybrid payment model that specifies how its response appropriately mitigates the risks of fraud and improper payments.


Status

  1. Developed
  2. Established
  3. Trained
  4. Implemented
  5. Complete

DCHS has completed a risk assessment and finalized strategies for mitigating risk by introducing a centralized process to review, approve, and track hybrid payment model utilization and oversight and establishing reconciliation standards.


Recommendation 5

Contract management

The Department of Community and Human Services should develop, document, and implement a plan to monitor the effectiveness of the Best Starts for Kids capacity-building program in improving the financial capacity of grantees and use monitoring results to inform Recommendation 6.


Status

  1. Developed
  2. Established
  3. Trained
  4. Implemented
  5. Complete

Data collection activities began in 2022 and are being led by evaluators in Public Health Seattle-King County. The scope is defined and reports have set deliverable dates. Supplemental data collection focused specifically on fiscal capacity building has begun. A report responsive to this recommendation is expected by June 30, 2027.


Recommendation 6

Fiscal management | Contract compliance

The Department of Community and Human Services should develop, document, and implement a plan for effectively communicating to grantees their role in financial stewardship and how they are supported and held accountable to that role.


Status

  1. Developed
  2. Established
  3. Trained
  4. Implemented
  5. Complete

DCHS launched the Provider Trainings Series on March 31, 2026. These trainings are now available for all DCHS contracted providers.


Recommendation 7

Contract management

The Department of Community and Human Services should enforce contract requirements related to subcontractors by ensuring, at a minimum, that 1) it has issued written approval for all subcontractors, 2) subcontracts contain language required by contract, and 3) it takes action to correct any improper payments that may have occurred related to unapproved subcontracts.


Status

  1. Developed
  2. Established
  3. Trained
  4. Implemented
  5. Complete

DCHS developed a Subcontract Review and Management Procedure and job aids with clear and standard steps and expectations for how contract managers should enforce and document contract requirements, including for subcontracting.

Job aids include guidance on how to determine if an entity is acting as a subcontractor, checklist for subcontractor and subcontract review, email templates, and tools for contractors.


Recommendation 8

Contract management | Contract compliance

The Department of Community and Human Services should develop, document, and implement clear and consistent policies and procedures for:

  1. invoice validation including, at a minimum, a) guidance on allowable and reasonable costs and b) staff duties to request and review supporting documents for high-risk costs, like subcontracts, stipends, and prepaid cards
  2. contract amendments
  3. stipend payments
  4. prepaid card logs
  5. when contract payments exceed actual expenditures
  6. contract termination
  7. funding eligibility of for-profit businesses as both grantees and subcontractors on community grants
  8. documentation management including, at a minimum, the appropriate system(s) for collecting and storing documentation that is used to validate invoices and comply with contract terms

Status

  1. Developed
  2. Established
  3. Trained
  4. Implemented
  5. Complete

All policies and procedures and associated training courses, have been developed in response to this recommendation. Staff and supervisors involved in procurements and contract management are receiving training and implementing.


Recommendation 9

Contract management

The Department of Community and Human Services should develop, document, and implement checklists that help ensure staff adhere to all policies and procedures established in Recommendation 8.


Status

  1. Developed
  2. Established
  3. Trained
  4. Implemented
  5. Complete

DCHS hired a Contract Management Learning and Development Manager in January 2026. This dedicated staff has worked with cross-divisional staff to develop trainings, checklists and other job aids to support the implementation of the policies and procedures. This work will continue as additional contract management policies and procedures are developed.


Recommendation 10

Contract management | Contract compliance

The Department of Community and Human Services should develop, document, and implement a comprehensive staff training plan that covers policies, procedures, and checklists from Recommendations 8 and 9.


Status

  1. Developed
  2. Established
  3. Trained
  4. Implemented
  5. Complete

DCHS’s Contract Management Learning and Development Manager has developed and delivered multiple staff training courses on the policies and procedures. DCHS intends to develop and implement more comprehensive training for staff and supervisors with contract management responsibilities.