The Washington State Department of Commerce faced scrutiny in a recent audit that found improper grant allocations to qualified applicants. Released in November 2024, the audit was part of the State Auditor's effort to identify programs susceptible to fraud and mismanagement. It examined the Behavioral Health Community Capacity Grant from July 2022 through June 2023 and discovered that all sampled recipients failed to meet essential compliance criteria set by the legislature. Furthermore, the audit revealed that only a fraction of the allocated funds for the 2023 fiscal year were approved for spending. Notably, the report highlighted that some funds were misused for unapproved expenses, such as food and snacks, raising concerns about financial oversight.

Commerce Secretary Joe Nguyen, who was not in office at the time of the report, expressed the department's commitment to addressing these findings and striving for excellence. He emphasized that while two out of over 250 programs were flagged, the majority remained compliant. This audit raises important questions about the management of state grants and the effectiveness of oversight mechanisms.