# San Francisco nonprofit MEDA faces city funding risk

> San Francisco's MEDA nonprofit risks losing city funding after reporting employee self-dealing.
- Title: San Francisco nonprofit MEDA faces city funding risk
- Summary: San Francisco's MEDA nonprofit risks losing city funding after reporting employee self-dealing. San Francisco's MEDA nonprofit faces potential loss of city…
- Keywords: meda, san francisco, city funding, self-dealing, affordable housing, controller's office, mission district, news, local, San, Francisco, nonprofit
- Source: Sfchronicle — https://sfchronicle.com/sf/article/meda-housing-nonprofit-controller-watch-list-22486496.php
- Read time: 1 min
- Topics: meda, san francisco, city funding, self-dealing, affordable housing, controller's office, mission district, news, local
## 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.
## Key takeaway

San Francisco's MEDA nonprofit faces potential loss of city funding due to alleged employee self-dealing and financial control gaps.