OLYMPIA, WA (MyBellinghamNow.com) – A recently released audit found the Washington State Department of Commerce did not properly give grants to qualified applicants.

The report was released in November 2024 as part of the State Auditor’s efforts to look at programs they felt were at the highest risk of fraud, loss or abuse.

The auditor’s office looked at spending of the Behavioral Health Community Capacity Grant from July 2022 through June 2023.

In the audit, they found that the Department of Commerce did not comply with certain requirements for grantees.

In a sample taken of recipients, the office found that none of them were compliant with one or more of the criteria as laid out by the legislature.

The department also approved spending only a fraction of the allocated funds in 2023 fiscal year.

The report also noted that some of the fund allocated were spent on unapproved items like food, snacks and even a phone case.

“Out of over 250 Commerce programs, two were flagged as out of compliance. While this shows that the vast majority are on track, we recognize there’s always room for improvement. Our goal is not just compliance but excellence, and we are committed to addressing these findings and continuously improving to better serve our communities,” Commerce Secretary Joe Nguyen said.

Nguyen was not secretary of the department at the time of the report.