From Sfchronicle · · 1m 30s
San Francisco nonprofit MEDA faces city funding risk
San Francisco's MEDA nonprofit risks losing city funding after reporting employee self-dealing.
In brief
San Francisco's MEDA nonprofit risks losing city funding after reporting employee self-dealing. San Francisco's MEDA nonprofit faces potential loss of city funding due to alleged employee self-dealing and financial control gaps. Originally reported by Sfchronicle.
MEDA nonprofit flagged for financial risks
Mission Economic Development Agency, known as MEDA, received a letter from the controller's office notifying it of being at highest risk of financial instability.
Employee self-dealing allegations
MEDA reported an employee made unauthorized expenses and engaged in self-dealing, but the controller found a gap in internal controls requiring increased oversight.
MEDA's financial health concerns
The controller's letter identified nine other financial health concerns including potential errors in financial statements and costs not matching budget documents.
MEDA's response to issues
MEDA's executive director said the nonprofit has worked closely with the controller's office since April to address concerns and is now in better shape than recently.
City funding at stake
MEDA may lose millions in city funding if it fails to address financial issues, with the controller assigning it a tier 3 designation for serious financial concerns.
Board committee delays loan vote
A Board of Supervisors committee delayed voting on a $22 million loan agreement with MEDA after the Chronicle revealed the self-dealing allegations.
MEDA's future outlook
MEDA's executive director expects the nonprofit to quickly emerge from the tier 3 designation as it works to strengthen financial management and internal controls.
What matters most
San Francisco's MEDA nonprofit faces potential loss of city funding due to alleged employee self-dealing and financial control gaps.
