In wake of investigation into potential fraud in county contracts County Council approves creation of Inspector General office

The King County Council on Tuesday approved legislation that will establish a new Inspector General Division within the Office of Public Complaints.

“This new accountability function is a critical step in strengthening our oversight of county-funded programs.” said King County Councilmember Rod Dembowski, who introduced the legislation.

“While rare, any waste, fraud or abuse of taxpayer funds is unacceptable. We must work to prevent it, and when it occurs, hold people accountable.”

Co-sponsored by Councilmembers Reagan Dunn, Sarah Perry, Pete von Reichbauer, Steffanie Fain and Rhonda Lewis, the legislation builds on last year’s King County Council vote approving a comprehensive reform package to overhaul oversight of taxpayer-funded grants within DCHS. 

That action followed an audit and an ongoing investigation by the Office of the Ombuds, which identified widespread oversight failures and potential fraud in county contracts. 

The approved legislation also advances recommendations from a 2025 joint report by the King County Auditor and Ombuds, which identified significant gaps in financial oversight and reporting systems. 

The legislation follows recent efforts by Council to enhance oversight and accountability of county-funded programs including the establishment of a new internal audit function within the Executive’s Office, added funding for the county ethics program, and new budget restrictions on certain DCHS grant programming.

The Inspector General Division will investigate reports of financial fraud and abuse, with the authority to issue subpoenas and pursue recovery of misspent funds. 

The division will be led by an Inspector General Director appointed to a five-year term and supported by dedicated staff, including investigators and administrative personnel.

To ensure transparency and accountability, the Inspector General Division will be required to issue written findings and recommendations when fraud, waste, or abuse is identified, and to submit an annual report to the County Council and Executive. County agencies would also be required to report suspected misconduct through established channels.

The approved ordinance also establishes a centralized King County Fraud Hotline, overseen by the Inspector General Division, creating a single point of access for reporting suspected fraud and improper conduct. 

The legislation also updates county policies by clearly defining fraud, waste, and abuse, requiring standardized inspection language in county contracts and grants, and aligning King County practices with those used by federal Offices of Inspector General and other jurisdictions nationwide.

“It's our duty to ensure that oversight mechanisms are robust and that taxpayer dollars are used effectively and responsibly,” said Councilmember Jorge Barón.

“Today's legislation furthers those goals and demonstrates the strong support from this Council for transparency and accountability across your regional government.”

The Inspector General Division will work collaboratively with the County Auditor and Ombuds, whose roles remain distinct, focusing on performance oversight and administrative misconduct, respectively.

Funding for creation of the new division was included in a supplemental budget approved by Council two weeks ago.