The Controller shall audit the accounts, operations, and activities of all boards, commissions, officers, and departments of the City and County charged in any manner with the custody, collection, or disbursement of funds, as provided by Section 3.105 of the Charter. The Controller shall monitor the level and effectiveness of services rendered by the City and County as provided in the Charter and shall also make all investigations and reports provided for by ordinance.

(Bill No. 424, Ord. No. 9.0621(C.S) Sec. 1; amended by Ord. 55-24, File No. 230973, App. 3/22/2024, Eff. 4/22/2024)

SEC. 10.6-1. MONITORING OF NONPROFITS CONTRACTING WITH THE CITY.

New Ordinance Notice

Publisher's Note: This section has been AMENDED by new legislation (Ord. 192-25, approved 10/16/2025, effective 11/16/2025, oper. 1/1/2026). The text of the amendment will be incorporated under the new section number when the amending legislation is operative.

(a) By November 1, 2024, the Controller shall adopt Citywide standards that departments must comply with when contracting with nonprofit organizations. The standards shall include requirements that contracts with nonprofit organizations include performance measures; guidance for how departments should engage contractors in the development and monitoring of such measures; regular financial and performance reporting requirements applicable to nonprofits; standard reporting timeframes and expected elements for ongoing departmental monitoring of nonprofits; a process departments must follow when entering into and managing their contracts with nonprofits and reporting monitoring results to the Controller; and recommendations for departments with the goal of making it easier for nonprofits to do business with the City. The Controller shall have discretion to revise these standards as the Controller deems necessary to achieve the goals of standardizing and ensuring adequate Citywide programmatic and performance monitoring of nonprofit organizations and clarifying departments’ obligation to appropriately monitor their contracts with nonprofits.

(b) The Controller shall be responsible for administering a Citywide nonprofit contractor corrective action policy to ensure compliance with City funding requirements, accountability, and reliable service delivery. By November 1, 2024, the Controller shall engage with City departments and nonprofit contractors in a review of current standards for corrective action and issue a Citywide policy that establishes clear procedures for identifying areas of concern or poor performance by nonprofit contractors. The policy may include, among other things, specific procedures for identifying nonprofit contractors in need of technical assistance, multi-departmental coordination, and/or escalation protocols including but not limited to audits of nonprofit performance or financial practices.

policy that establishes clear procedures for identifying areas of concern or poor performance by nonprofit contractors. The policy may include, among other things, specific procedures for identifying nonprofit contractors in need of technical assistance, multi-departmental coordination, and/or escalation protocols including but not limited to audits of nonprofit performance or financial practices.

(c) By November 1, 2024, the Controller shall complete a review of the publicly available information the City has about its nonprofit contracted services, including spending, performance, and types of services provided. At the conclusion of the review, the Controller shall issue a report to the Mayor and the Board of Supervisors recommending any policy changes that the Controller concludes would improve public access to this information in the future. Concurrent with the November 1, 2024 report, the Controller shall publish a directory webpage documenting where and how to access existing public information about nonprofit contracted services. The Controller shall maintain and update this directory webpage as additional public information is made transparent through the recommendations in the report, including information gathered by the Controller through the annual review required in subsection (d) below.

(d) Each fiscal year, beginning with Fiscal Year 2025-2026, the Controller shall conduct a review of department compliance with the Controller’s established contract monitoring standards and shall submit a report summarizing the review to the Mayor and the Board of Supervisors. The Controller may limit the annual review to specific departments, service areas, or contracts as the Controller deems appropriate to achieve the goal of ensuring adequate Citywide programmatic and performance monitoring of nonprofit organizations.

(e) Starting with Fiscal Year 2024-2025, nonprofit organizations that received a total of at least $750,000 in funding from the City in a fiscal year must submit to the City an audited balance sheet and the related statement of income and cash flows for that fiscal year within six months after the end of the fiscal year, certified by an independent accounting firm as accurately presenting the financial position of the organization. The Controller shall establish procedures and deadlines for submission of such audit materials to the City and distribution of such audit materials to City departments, provided that March 31, 2026 shall be the deadline for the submission of the audit materials for Fiscal Year 2024-2025. This subsection (e) does not limit the authority of the City, through the Controller or any other part of City government, as otherwise authorized by law, to conduct a fiscal review or require alternate documents demonstrating sound financial controls in the absence of an audit, including for nonprofit organizations receiving less than a total of $750,000 from the City within a fiscal year.

-2025. This subsection (e) does not limit the authority of the City, through the Controller or any other part of City government, as otherwise authorized by law, to conduct a fiscal review or require alternate documents demonstrating sound financial controls in the absence of an audit, including for nonprofit organizations receiving less than a total of $750,000 from the City within a fiscal year.

(f) The Controller shall publicly issue on its website a draft version of any proposed policy, standard, or guidance required in subsections (a), (b), and (e) of this Section 10.6-1, and shall provide an opportunity for members of the public to review and provide written comments about the draft for at least 15 days prior to final adoption. In the public review process, the Controller shall make good-faith efforts to ensure community involvement and racial equity in its outreach efforts. Outreach and engagement for public review shall include engaging organizations, regardless of size, with a focus on fostering the growth of new, smaller institutions reflecting the experiences of historically underserved communities, including but not limited to African American communities, Asian American communities, disabled communities, Latinx communities, LGBTQIA+ communities, Native American communities, Pacific Islander communities, and women.

(Added by Ord. 55-24, File No. 230973, App. 3/22/2024, Eff. 4/22/2024)

(Former Sec. 10.6-1 added by Ord. 175-71, App. 7/8/71; repealed by Ord. 313-00, File No. 001908, App. 12/28/2000)

The department, board, or commission that has management and control of, or jurisdiction over, any leased property is responsible for ensuring that all tenants are paying the correct rent to the City. The Controller is hereby authorized to audit departments to ensure that they are adequately managing their leases. The cost of such audits shall be borne by the respective department, board, or commission.

Pursuant to Section 3.105 of the Charter, the Controller is authorized and directed to conduct audits, at regular intervals, of all leases of city-owned real property where rent of $500,000 or more a year is to be paid to the City. Any department board, or commission may elect to have audits conducted or contracted to be conducted by the Controller. The cost of each such audit shall be borne by the department, board or commission that has management and control of, or jurisdiction over, the leased real property. Within 30 days after the completion of each such audit, the Controller shall file reports of the audit with the Mayor and the Board of Supervisors and shall deliver a copy of the report to the department, board or commission that has management and control of, or jurisdiction over, the leased real property. The department, board or commission shall take corrective action to comply with the audit recommendations and shall report to the Controller on the action taken within 45 days of the receipt of the audit report and at the end of each six months thereafter until the matters disclosed by the audit have been resolved.

(Added by Ord. 323-86, App. 8/8/86; amended by Ord. 313-00, File No. 001908, App. 12/28/2000; Ord. 166-13, File No. 130541, App. 8/2/2013, Eff. 9/1/2013)

Under authority of Charter Section 3.303 and Sections 26920, 26921 and 26923 of the Government Code of the State of California, the Board of Supervisors, by a four-fifths vote, hereby directs that the Controller of the City and County of San Francisco shall perform an audit of all accounts of money coming into the hands of the Treasurer and express an opinion attesting to the accuracy of the treasury records relative to the amount and type of assets in the treasury at least once each quarter, or more frequently at the Controller's discretion.

(Added by Ord. 6-90, App. 1/5/90)

SEC. 10.7.

(Bill No. 424, by Ord. No. 9.0621(C.S.), Sec. 2; repealed by Ord. 313-00, File No. 001908, App. 12/28/2000)

SEC. 10.7-1.

(Amended by Ord. 6976, App. 3/12/76; repealed by Ord. 313-00, File No. 001908, App. 12/28/2000)