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Catholic Community Services of Western Washington

$332 million in revenue, a going concern audit opinion, a $25 million expense surge, a failed ERP system written off for $2.5 million, and a CEO publicly fighting the federal government that provides 90% of the money.

⚖ TBC Intelligence

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Overview

Catholic Community Services of Western Washington was founded in 1918. It is the official human service outreach arm of the Catholic Church in Western Washington. CCS operates 2,500+ housing units across 62 properties. It also runs mental health programs, substance use treatment, family behavioral health services (800 employees), long-term care facilities with a budget exceeding $100 million, and senior and disability services.

By revenue, CCS is the largest homeless services provider in the region. It is also the largest single recipient of KCRHA funding. And almost nobody knows it. The organization operates with a level of public invisibility that is inversely proportional to its scale.

Leadership

Former President Michael Reichert earned a $402,000 salary with $51,000 in additional benefits, totaling $453,000 at a Catholic charity. Three staff psychiatrists each earn over $400,000. Total executive compensation across the organization is $2.8 million.

Jilma Meneses became the new CEO in March 2025. She previously served as Secretary of the Washington Department of Social and Health Services. Communications Director Carolyn Douglas is a former KING 5 TV news anchor.

The hiring pattern is clear: CCS recruits from government and media to manage its public profile. The question is whether that profile management extends to accountability.

The Church-State Problem

The CCS board is composed entirely of Archdiocese of Seattle officials:

Chair: Most Rev. Frank R. Schuster, Auxiliary Bishop of Seattle
Vice Chair: Caitlin Moulding, COO of the Archdiocese of Seattle
Treasurer: Jeannie Crone, CFO of the Archdiocese of Seattle
Corporate Member: Archbishop Paul D. Etienne

This means $19.7 million in public homelessness funding flows through an organization whose board answers exclusively to the Archbishop of Seattle. There is no independent governance. There is no public accountability mechanism outside the church hierarchy.

CCS states that it serves clients "regardless of religious affiliation." That may be true at the service delivery level. But the governance is entirely ecclesiastical. Every dollar of public money passes through a board that reports to a bishop, not to voters or taxpayers.

Financials

CCS is a $320 million organization. It is larger than most people realize and larger than most reporters have bothered to investigate. The most recent fiscal year (ending June 30, 2025) is the first time the auditor has ever questioned whether the organization can survive.

YearRevenueExpensesNet IncomeNet Assets
2025$320.0M$322.0M-$5.0M$97.0M
2024$318.6M$297.0M+$12.8M$102.0M
2023$295.4M$288.1M+$7.3M$89.1M
2022$265.2M$263.2M+$2.0M$133.0M
2021$262.3M$249.9M+$12.4M$134.9M

The FY2025 audit (CliftonLarsonAllen LLP, Bellevue, signed March 27, 2026) issued a going concern opinion for the first time in the organization's history, along with a material weakness in internal controls. Revenue from government grew $15.5M, but private contributions collapsed from $18.9M to $9.5M and expenses jumped $25M. The result was a $5 million loss after three consecutive years of surplus.

What changedFY2024FY2025Delta
Total expenses$297.0M$322.0M+$25.0M
Salaries and payroll$218.0M$243.8M+$25.8M
Contributions (private)$18.9M$9.5M-$9.4M
Legacies and bequests$4.9M$669K-$4.3M
IT subscriptions$1.5M$4.6M+$3.1M
Professional fees$6.9M$10.8M+$3.9M
INFOR ERP write-off$0$2.45M-$2.45M

Payroll accounts for the entire expense increase. 76 cents of every dollar now goes to personnel. The INFOR ERP system (enterprise software for payroll, HR, workforce management, supply chain) was abandoned October 31, 2025 after an independent assessment found major modules were never successfully implemented. CCS wrote off $2.45M and continues to pay the noncancelable subscription.

The Restructuring

Effective January 1, 2024, CCS carved out its King County permanent supportive housing and homeless services operations into a new entity called the Coordinated Care Agency (CCA), operating under the Archdiocesan Housing Authority (AHA). CCS transferred approximately $45 million in equity to AHA. An additional $595,391 was transferred in FY2025.

CCS's homelessness numbers are now split across two entities. Year-over-year comparisons become difficult. The going concern opinion is on CCS, not on CCA/AHA. Whether CCS moved healthier operations into the new entity and left the distressed operations behind is an open question.

Federal Funding Exposure

CCS spent $23.4 million in federal funds in FY2025, down from $26.5 million the prior year. The breakdown:

Federal AgencyAmountPrimary Programs
Veterans Affairs$9,497,535SSVF ($9.2M), Per Diem ($305K)
HUD$6,708,712CoC ($3.1M), CDBG ($1.8M), ESG ($963K), HOME ($730K)
Health & Human Services$6,262,808Aging/Meals ($2.1M), Refugee ($1.9M), Unaccompanied Children ($944K)
Treasury (ARPA)$187,951COVID recovery (winding down)
Other (DOJ, DOT, CNCS, DHS)$723,611Opioid treatment, transit, AmeriCorps, emergency food
Total$23,380,617

CEO Meneses has publicly stated she is war-gaming 10%, 25%, and 50% federal funding cut scenarios. On a $289 million government revenue base, a 25% cut would be $72 million. CCS has no private fundraising infrastructure proportional to its scale. The Archdiocese does not have $72 million to fill the gap.

In July 2025, CCS issued a public statement opposing proposed Congressional cuts to Medicaid and SNAP. This positions the organization adversarial to the administration that controls most of its federal funding. The VA SSVF program alone ($9.2M) serves the current administration's stated priorities. A cooperative posture on veterans could protect that funding. A confrontational posture risks all of it.

The Audit Trail

CCS has now had material weaknesses in three audit years: 2016, 2018, and 2025. The FY2025 audit (signed March 27, 2026) identified four findings:

FindingSeverityDescription
2025-001Material weaknessInternal controls over financial reporting
2025-002Material weaknessInternal controls over federal compliance
2025-003Significant deficiencyFederal compliance
2025-004Significant deficiencyFederal compliance

Prior year findings from Treasury (21), VA (64), and HHS (93) were also noted. The 2024 audit had three significant deficiencies, all repeats from 2023: failure to check vendor suspension/debarment in SAM, payroll allocation errors, and indirect cost calculation errors. CCS submitted corrective action plans. The same errors escalated to material weaknesses one year later.

Board Compensation

Two board members receive six-figure compensation, both marked as "related" parties on the 990: Vice Chair Caitlin Moulding (COO of the Archdiocese) at $254,231 and Treasurer Megan Slivinski at $239,446. Both are Archdiocese employees governing an entity that receives hundreds of millions in public funds. They are not independent overseers.

The Scrutiny Gap

CCS receives tens of millions from KCRHA, the largest single allocation. Its total revenue dwarfs every other homeless services provider in King County. DESC, LIHI, and Plymouth combined do not match CCS in scale.

Yet CCS receives almost zero investigative coverage. The Seattle Times, PubliCola, and local television stations have run dozens of stories on DESC, LIHI, and Plymouth. CCS appears in the coverage primarily as a quote source or a passing mention.

The religious structure may explain this. Reporters are reluctant to scrutinize faith-based organizations with the same intensity they apply to secular nonprofits. The result is a $320 million blind spot in public accountability.

What's At Stake

CCS is not just a homeless services provider. It is the Archdiocese of Seattle's entire social services operation: 4,000+ employees, ~200 programs, 100,000+ people served annually. The organization runs 2,500+ housing units across 62 properties, the largest VA SSVF program in Washington ($9.2M), senior meals ($2.1M), refugee resettlement ($1.9M), and unaccompanied children services ($944K). 49% of employees are covered by collective bargaining agreements expiring June 30, 2026.

If CCS fails, it is not just homeless shelters that close. It is senior meals, veteran services, refugee resettlement, unaccompanied children programs, behavioral health, substance abuse treatment, and long-term care across the entire western half of Washington State. This is the largest potential social services collapse in the state's history.

Key Questions

1. What caused program expenses to jump $20.2 million in a single year? How much of the $25.8M payroll increase reflects new hires versus wage increases? What is the current headcount by division?

2. What is the total cost of the INFOR ERP implementation, including consulting, subscription, training, and the $2.45M write-off? Who approved the project? Was there a competitive bid? What is the remaining noncancelable subscription obligation?

3. Why did private contributions drop from $18.9M to $9.5M? Which donors left and why?

4. What assets and revenue were transferred to the Coordinated Care Agency (CCA) under AHA? Was the restructuring designed to protect assets from CCS's deteriorating financial position?

5. What is the going concern narrative in the FY2025 audit? What specific conditions or events does the auditor cite as raising substantial doubt?

6. Has the Archdiocese committed any backstop funding? What is the contingency plan if federal funding is cut 25% or more?

7. Why did CCS issue a public statement opposing the federal administration that provides 90% of its revenue? Who approved that statement? Was the board consulted?

8. Should hundreds of millions in public funds flow through an organization whose board has no independent members, two compensated directors ($254K and $239K), and no governance structure outside the church hierarchy?

Source Documents

FY2025 Single Audit: CliftonLarsonAllen LLP, signed March 27, 2026. Filed with the Federal Audit Clearinghouse March 31, 2026. Report ID: 2025-06-GSAFAC-0000412681.

FY2024 Single Audit: CliftonLarsonAllen LLP, signed August 1, 2025. Report ID: 2024-06-GSAFAC-0000378729.

990 filings available at ProPublica Nonprofit Explorer (EIN 91-1585652).

TBC Action

On April 12, 2026, The Burnham Civic submitted a formal complaint to the HUD Office of Inspector General citing CCS's going concern opinion, its material weaknesses in FY2025, and the broader pattern of audit failures across the WA-500 Continuum of Care. CCS receives $6.7 million in HUD funds (CoC, CDBG, ESG, HOME) and $9.5 million from the VA. The complaint requests a review of whether KCRHA, as the Collaborative Applicant, has the capacity to monitor subrecipients that are themselves failing federal audits. TBC does not publish reports and wait. We file complaints, we name decision makers, and we follow through until there are consequences.

Accountability Series

Plymouth Housing · DESC · Low Income Housing Institute · KCRHA · HDC

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