Seattle News

05-03-2026

Zahilay strengthens financial oversight in King County after grant scandal

King County Executive Girmay Zahilay, the county’s highest elected official and chief administrator, announced the creation of a new internal auditor position and a package of measures aimed at strengthening oversight of the county’s finances. The steps respond to a high-profile audit last year that found serious failures in the management of hundreds of millions of dollars in grants in the Department of Social and Human Services, resulting in unauthorized payments and possible fraud.

As part of the reforms, in addition to hiring an internal auditor who will start work at the end of March, a special “sub-cabinet” is being created to boost accountability and compliance. New internal controls over the distribution of grant funds will be introduced and the training program for staff who oversee contracts will be expanded to cover ethics and fraud prevention. Zahilay stressed that the new auditor will work proactively with all departments to identify potential risks.

The executive described these changes as part of a response to the county’s ongoing budgetary challenges, which in recent years have moved from one deficit to another. The budget’s vulnerability—largely funded by property and sales taxes plus federal and state transfers—stems from its sensitivity to economic downturns. At the same time, major expenditures such as health care, social services, public safety and transportation are mandatory and difficult to cut. Zahilay said that while the county will eventually need to seek new revenue sources, it must first demonstrate responsible spending, identify savings opportunities and deliver concrete results. His directive also requires each department to conduct a comprehensive review of its budget.

Last year, the county’s projected general fund deficit exceeded $150 million and was resolved only after state officials allowed increases in local taxes. Zahilay noted that the next two-year budget cycle will again face a projected deficit, so the new oversight measures are intended to rebuild trust and ensure systemic resilience.

Based on: Zahilay creates new King County auditor position and oversight controls