Digital Navigator Program was plagued by disregard for contracting rules, audit finds

A program intended to help underserved people access online services repeatedly failed to follow state guidance – and at times intentionally ignored grant requirements, a new performance audit found: Assessing the Department of Commerce's Management of the Digital Navigator Program (PDF).

Repeated concerns about the Digital Navigator Program led the Office of the Washington State Auditor to focus on the program, which was defunded in 2025. 

“The history of the Digital Navigator Program is a case study in how neglecting the fundamentals of government accountability can sabotage even the most noble goals,” said State Auditor Pat McCarthy. “Looking forward, I’m heartened by the commitment to accountability shown by Gov. Bob Ferguson and new department leadership, which is critical to rebuilding trust in the state’s digital equity efforts.”  

From 2022 to 2025, the Digital Navigator Program within the Department of Commerce awarded $92 million in grants to contractors to provide one-on-one assistance for people with limited access to online services, including job seekers, English language learners and Medicaid clients. Among the performance audit’s findings:

•    Commerce did not consistently use competitive  processes to award or expand its contracts, nor did it properly vet the contractors chosen or their subcontractors 
•    Digital Navigator Program contracts lacked clear, specific information about contractor responsibilities and compliance
•    Commerce did not effectively monitor contractor performance and made payments without documentation of services provided
•    Agency executives in place at the time ignored state rules as well as their own managers’ concerns about these failings.

Without effective management, program staff made questionable choices regarding grants. For example, of 18 qualified grant applications, the agency chose those ranked 1st, 8th and 18th, and did not clearly document its rationale for doing so. Lacking clear eligibility requirements, the program awarded $500,000 to a subcontractor that subsequently closed down after an internal investigation into suspected financial mismanagement.

Communication with contractors was uneven and often verbal, resulting in limited documentation to support agency decisions. Additionally, state ethics laws may have been violated when a program manager accepted a job with a contractor just two months after leaving the agency. State law requires a two-year waiting period. 

The audit reviewed actions taken from October 2021 through July 2025. Gov. Ferguson appointed new department leadership after taking office last year. Ferguson also vetoed continued funding for the Digital Navigator Program in the current biennium.  

In addition to reviewing this program, the State Auditor’s Office published a separate performance audit offering recommendations for a more coordinated and comprehensive statewide digital equity plan. That report and summary materials can be found here: Assessing Washington's Digital Equity Plan (webpage).

The performance audit of the Digital Navigator Program and summary materials can be found on the State Auditor’s Office website at Assessing the Department of Commerce's Management of the Digital Navigator Program (webpage). 

Today’s performance audits follow accountability audits of the Digital Navigator Program in 2024 and 2025 that also identified significant gaps in its oversight, including insufficient documentation for nearly $11 million in reimbursements to a single grantee. 

Media questions: Assistant Director of Communications Adam Wilson, Adam.Wilson@sao.wa.gov, 564-999-0799.