Commerce responds to audit of shuttered Digital Navigator program
Within a month of taking office, Ferguson Administration leadership spotted issues in the program, which is now shut down
OLYMPIA — Following an audit of the now-closed Digital Navigator Program highlighting issues under past leadership, the Washington State Department of Commerce is sharing its response and reforms that have been underway since Governor Bob Ferguson took office and appointed new leadership.
Governor Ferguson appointed Joe Nguyễn as Director of Commerce in December 2024. Between taking office in January 2025 and the end of the program in June 2025, Commerce’s new leadership under Director Nguyễn made sweeping changes. Within a month of taking office, Commerce leadership identified issues in the Digital Navigator Program and paused further payments to the lead contractor.
Nguyễn and the new leadership at Commerce took immediate steps including working with the contractor to attempt to get them into compliance with the terms of the grant. Commerce immediately moved to improve internal controls on all agency grants. Commerce took the additional, unprecedented step of reaching out to the program’s subgrantees – trusted community organizations performing the work whose reimbursements were put at risk by the accounting failures of the lead contractor – and offering to directly contract with them to ensure they had the opportunity to be paid for documented work.
In addition, new staff is in place overseeing these types of programs, including a new director of the State Broadband Office.
The audit identified the same issues the Ferguson Administration raised: The $92.5 million program, which ran from 2022-2025, did not follow state-recommended contract management practices for itself or program grantees, including processes and oversight for awarding grants, grantee performance, and reimbursement. While the audit covered the program’s full operation from 2022 through June 2025, the auditor noted she was “heartened by the commitment to accountability shown by the agency’s new leadership.”
The audit helps lay out a roadmap for more extensive reforms, many of which are already underway. For example, Commerce created a Compliance and Contracts Division to provide improved oversight of the agency’s more than 8,000 contracts.
“Our agency must ensure accountability,” said Interim Commerce Director Sarah Clifthorne. “We quickly identified issues with how Commerce had been handling this contract, and moved immediately to improve our practices. This includes new internal controls and audit functions. I’m proud of the work we’ve done over the past year and look forward to making our agency even stronger and more accountable to the public.”
Commerce is adding more technical assistance and enforcing consistent standards for contracting, competitive processes, vetting standards, and compliance and performance management. It is also enforcing significant reimbursement oversight.
What was the Digital Navigator Program
The Digital Navigator Program was established to expand equitable access to online services. The program was operated by three main grantees, one of which was the Equity in Education Center (EEC), for the $21 million Digital Navigator Program from September 1, 2023, to June 30, 2025. Digital Navigators were trusted members of community groups who helped people, including recent immigrants, refugees, people who are in or leaving incarceration, people with disabilities, seniors, and others. EEC subcontracted with 39 community groups across the state to do the work.
In February 2025, shortly after agency leadership learned that EEC was reimbursed for $10.7 million that lacked proper documentation, Commerce immediately paused further payments. Commerce staff worked with EEC, including weekly meetings attempting to bring EEC into compliance. Last summer, Commerce took the unprecedented step of offering direct contracts with EEC’s 39 subcontractors to ensure they had the opportunity to be paid for documented work.
“Our current initiative across the agency to create consistent, transparent, and accountable risk assessments and other contracting standards will streamline the experience of contracting with Commerce for community groups in the future”, said Clifthorne. “Communities across Washington expect consistent and fair rules to access public funds. Although this audit specifically reviewed one program, the lessons learned apply broadly across Commerce.”
What’s next for Commerce
Commerce will make the first formal update on its progress in its next accountability audit to the Washington State Auditor’s Office this summer.
Commerce is currently implementing the following improvements:
- Risk-based monitoring: All contracts require a monitoring plan that must be substantially complete before signing, aligning with federal regulations and statute. All monitoring plans will be in place prior to contract signing to set clear expectations for all parties.
- Expanded oversight: Exceptions to standard requirements require additional higher-level review and will be centrally tracked across Commerce.
- Standardized procedures: Implement consistent contract management procedures that assign risk levels, define required documentation, and ensure monitoring plans are executed.
- Resource development: The Contracts and Compliance Division is collaborating across the agency to create consistent templates, guidance, and training resources for staff and grantees.
- Training and technical assistance: Commerce will offer, and require for some positions, training on risk assessment, ledger review, Contract Management System use, and compliance practices.
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