In a recent San Francisco County government meeting, Controller Greg Wagner revealed significant actions being taken in response to allegations of financial mismanagement within the Human Rights Commission (HRC) and its associated programs, particularly the Dreamkeeper initiative. Wagner emphasized that while most city programs operate effectively, the controller's office is committed to addressing identified challenges.

The meeting highlighted the initiation of two formal financial audits aimed at ensuring compliance with purchasing processes and grant agreements. One audit focuses on Proposition Q Authority, which allows certain purchases to bypass standard procedures, while the other examines the financial practices of Collective Impact, a community-based organization partnering with HRC. Wagner noted that the findings from these audits are expected to be released in early 2025.

In a proactive measure, the controller's office has also restricted purchasing authority under Proposition Q until the audits are completed, a decision made in collaboration with the Office of Contract Administration. This restriction aims to prevent further misuse of funds during the ongoing investigations.

Wagner detailed the controller's office's continuous monitoring efforts, which include post-audit reports that assess transaction compliance with established financial controls. Recent findings indicated that HRC had made payments outside of approved processes, raising concerns about oversight and documentation. The controller's office is working closely with HRC to improve internal controls and ensure that all financial transactions adhere to established guidelines.

The meeting underscored the importance of maintaining robust fiscal controls across all departments, as similar issues have been observed in other areas, including the police department. Wagner reiterated the necessity for clear segregation of duties in financial transactions to prevent mismanagement and ensure accountability.

As the audits progress, the controller's office aims to enhance transparency and restore public trust in the financial operations of the Human Rights Commission and its partners. The outcomes of these investigations will be crucial in shaping future policies and practices within the city’s financial management framework.