Committee orders Controller review, trims JCYC grant amid reporting discrepancies

The San Francisco Board of Supervisors’ Budget & Finance Committee on Oct. 25 voted to send two contract amendments from the Department of Children, Youth and Their Families to the full Board and asked the Controller to examine financial controls after significant data discrepancies.

Chair Supervisor Connie Chan moved to reduce the "not to exceed" amount for the Japanese Community Youth Council (JCYC) Opportunities for All amendment by $400,000, lowering the total to $13.3 million from the previously reported $13.7 million. The committee approved the amendment and forwarded item 1 to the full Board without a recommendation; item 2 (a YMCA truancy-intervention amendment) was forwarded with a positive recommendation.

The Budget and Legislative Analyst reported that initial DCYF grant submissions indicated roughly 800 participants in fiscal year 2022, while the Human Rights Commission reported more than 2,200 participants. The BLA said JCYC’s payroll records showed payments for many more youth than JCYC had reported under the grant line items, and that hours per participant for the last two fiscal years were not included in the department’s file. Because about $13 million has been dispersed under the umbrella of Opportunities for All, the BLA recommended a financial audit by the Controller’s Office to test transactions and assess whether financial controls are sufficient.

Amiho Gomes, DCYF director of strategic initiatives, explained that timing and work-order transfers across fiscal years — and a decision to extend many grant agreements during the pandemic — caused delays and mismatches between grant records in DCYF’s grant-management system and JCYC payroll reporting. Gomes said JCYC had been directed by the Human Rights Commission to pay more youth than were captured in DCYF’s CMS reporting and that other community-based organizations also pay youth as part of the broader initiative, which complicates a single grant-based accounting view.

Devin McAuley, controller citywide budget manager, said the Controller’s audit division has a robust schedule but would review the BLA recommendation and follow up with the committee.

Public commenters, including Tracy Gallardo from District 10, urged prompt reimbursement to JCYC and praised the program’s reach, while at least one speaker accused behind-the-scenes corruption and urged restored trust.

The committee’s action ordered the Controller review and moved the two contract amendments to the full Board for final action. The department also noted an RFP issued in summer 2023 to restructure program management, with anticipated results and procurement awards expected in 2024.