OLYMPIA, Wash. — State auditors said they found more than 60 instances where Washington state agencies failed to document how the state dispersed more than $1 billion, potentially.
The audit focused on how the state spent almost $37 billion in federal aid between July of 2020 and the end of June 2021.
“This is significant. This is huge,” said Washington state Auditor Pat McCarthy.
Auditors said they found examples where the agencies “did not have adequate internal controls and did not comply with federal requirements.”
One dozen state agencies were identified in the audits, including the Department of Social and Health Services, the Office of the Superintendent of Public Instruction, and the Department of Transportation.
While the state received billions of dollars in federal assistance to provide pandemic relief, auditors looked at programs involving non-COVID funding as well.
McCarthy said in one case, the state might have to pay back part, if not all of $271 million in payments reportedly made to low-income families to help pay for child care. McCarthy said the Department of Children, Youth, and Families could not provide documentation guaranteeing the funds were paid, or dispersed to the right people.
“The verification that we need is, that it did go to those families, and it did assist those families with the ability to have childcare because of that allocation of funds” said McCarthy.
When asked if the state might have to pay some, or all of the $271 million back to the federal government, McCarthy said, “It’s always a possibility.”
She said that decision would be up to the federal government.
A spokesperson for the Department of Children, Youth, and Families said it is “unlikely” the state would have to return the funds.
“We track child care provider funds under the level necessary to meet federal requirements,” said spokesperson Jason Wettstein.
Wettsein said the agency ensured recipients were eligible
He said the state does not have staffing to meet the higher standards the State Auditor’s Office recommended, but that could change.
Wettstein said it would require an increase in state funding, though.
“DCYF is considering submitting a decision package request to the legislature to meet the higher standard recommended by the SAO (State Auditor’s Office),” said Wettstein.
A spokesperson for Gov. Jay Inslee said the governor encourages agencies to engage with the auditor’s office when they make recommendations and find ways to improve processes.
“We’re pleased to see DCYF being proactive in engaging the auditor’s office report and recommendations,” said Gov. Inslee's spokesperson, Mike Faulk.
McCarthy said auditors did not find any evidence of fraud with the federal money.