KPMG recommends financial oversight, integration and performance metrics for county social services; supervisors press on staffing and implementation

KPMG presented the highlights of a county‑commissioned operational and financial review of San Luis Obispo County’s Department of Social Services during the Board of Supervisors meeting on June 2, 2026. The consultant team said its report contains 24 recommendations and roughly 85 individual action items aimed at improving fiscal oversight, aligning services with partner agencies and standardizing performance measurement across programs.

The review praised the department’s continuous‑improvement committees, collaboration with community‑based organizations and progress on a new homeless management information system, KPMG partner Bill Zizek said. But the firm identified gaps in program‑level financial visibility, contract oversight and the metrics used to evaluate contractor performance, and it recommended using the county’s upcoming ERP implementation to establish program‑level accounting and dashboards, centralize contract management responsibilities and shift contract measures toward outcomes rather than volumes.

“Leadership needs clearer, more consistent visibility into how funds are used, how contractors are performing and where accountability sits,” KPMG said. The firm also urged co‑locating Department of Social Services staff at high‑need sites, deploying mobile navigation and intake services, and adopting a shared performance‑management framework across adult protective services, child welfare and participant services.

Supervisors used the presentation to drill into scope and implementation. Supervisor Gibson asked whether the department agreed with consultant estimates that in one employment category 40–50 positions could be reduced from about 172 positions and whether contracts could be cut by 25–35 percent. Director of Social Services Devin Drake said department leadership reviewed and responded to the draft report and worked with the executive office to produce an implementation plan; he said the implementation plan reflects the department’s responses and that specific staffing or contract decisions would be considered only after further analysis and board direction.

Board members pressed on specific operational items cited in the presentation: an $8 million grant application for encampment resolution funding, how outreach partners (ECHO, CAPSLO and 5 Cities Homeless) would be engaged, and the timing and funding for mobile service vans. Deputy Director Linda Belch said the van’s buildout depends on state equipment and some additional funding, and that outreach partners are already involved in budget and proposal development.

Members of the board and KPMG emphasized the need for phased implementation and close board oversight. The executive office said it would develop a tracker, review progress with department leadership monthly, and provide periodic updates to the board (quarterly or semi‑annual was discussed). Supervisor Paulding asked the executive office to return with a clearer implementation timeline and suggested regular staff reports to track accomplishments against the consultant’s recommended short, medium and long‑term items.

The board did not take a policy vote to adopt KPMG’s specific staffing or contract recommendations during the June 2 meeting. Instead, the discussion concluded with direction for the executive office and department leadership to refine the implementation plan, assess resource needs and report back, so any staffing or contracting changes would come to the board for authorization.

What’s next: county staff and the executive office will use the consultant’s implementation plan as a starting point, bring resource requests and a timeline back to the board, and run a progress tracker for future updates.