CBOs: Tenderloin Housing Clinic Potential Non-Compliance With MOCI And MOH Grant Terms and Conditions

posted this morning on ProSF document clearing house

Importance: High

Dear Mr. Herrera, Mr. Rhorer, and Mr. Shoemaker:

As you can see by the e-mail below, the Tenderloin Housing Clinic does not provide financial reporting as required in their contracts with the City which state, “Within sixty (60) days following the end of each Fiscal Year, Grantee shall deliver to the City and unaudited balance sheet and related statement of income and cash flows for such Fiscal Year, all in reasonable detail acceptable to City, certified by an appropriate financial officer of Grantee as accurately presenting the financial position of the Grantee.”
This statement appears to be vital in that many of the funding decisions made by the City are made within the first quarter of the year. At the time of these decisions, the only audited statements that would be available would be those for the previous fiscal year. For example, the audited 2009 financial statement for the Tenderloin Housing Clinic will not be available until April of this year. That means that decisions in 2010 regarding funding were based on an unaudited report for the Fiscal year ending 30 June 2008. The audited financial report of 2008 contained several areas of concern that have been brought to your attention in previous e-mail.

Without these unaudited balance sheets and statements, the City does not have the means to assess the current financial status of the grantee nor can the City be assured that any outstanding issues from the most recent audited report were addressed prior to the release of additional funding. It would seem that, especially in such circumstances noted in the Tenderloin Housing Clinic’s audited financial report for the Fiscal year ending 30 June 2008, thorough review of the unaudited balance sheet and statements would be an important due diligence step for each of the grantors to undertake before awarding additional grants or continuing payment on ongoing grants.

In the case of the Tenderloin Housing Clinic, this statement appears in several contracts that I have seen with the City totaling approximately $10 million in City funding. I am not in possession of all the City’s contracts with the Tenderloin Housing Clinic. With 15,000 City employees recently given pink slips, the City should do all in its power to insure that the limited funding available is being appropriately distributed and appropriately managed.

As Dennis Herrera stated in BeyondChron, “the City expects its grantees to live up to their obligations.” Shouldn’t this apply to the Tenderloin Housing Clinic as well?

With Kind Regards,

Rita O’Flynn 415-386-8224 Cell: 415-260-7608

> Date: Tue, 16 Mar 2010 11:43:09 -0700
> From: Wynne@thclinic.org
> To: rita_august@msn.com
> CC: cityattorney@sfgov.org; Randy@thclinic.org
> Subject: RE: The requested items in pdf: Sunshine Ordiance Request for Immediate Disclosure
>
> Ms. O’Flynn,
>
> We do not provide unaudited financial statements to our City funders. These are not required by our contract. We do however provide audited financial statements after the audit is complete and a final profit and loss information by project to each project oversight team within 60 days of the close of the fiscal year. These are required by our contracts.
>
> Please revise your request to list out exactly which THC contracts that you would like to see the final profit and loss information for.
>
> I am attaching the audited financial statements for the requested years.
>
> Please note that I will not be able to provide any of the requested profit and loss reports for the projects you that you may identify going forward until I am back from vacation, April 7, 2010.
>
> Wynne Tang,
> Director of Finance
> 415-885-3286 x111
>
>
> CONFIDENTIALITY NOTICE: This document is intended for the use of the party to whom it is addressed and may contain information that is privileged, confidential, and protected from disclosure under applicable law. If you are not the addressee, or a person authorized to accept documents on behalf of the addressee, you are hereby notified that any review, disclosure, dissemination, copying, or other action based on the content of this communication is not authorized. If you have received this document in error, please immediately reply to the sender and delete or shred all copies.
>
>
> >>> Rita August O’Flynn 3/16/2010 9:04 AM >>>
>
> Dear Mrs. Tang:
>
>
>
> Please provide copies of the unadited statements certified by a finacial officer of THC from the fiscal years ending 30 June, 2008, 2007, 2006, and 2005 provide by THC to MOH and HSA or, if not prepared, please state so.

From: Rita August O’Flynn [mailto:rita_august@msn.com]
Sent: Thursday, February 18, 2010 3:53 PM
To: pamela.tebo@sfgov.org; cityattorney@sfgov.org
Cc: auweia1@gmail.com; home@prosf.org; jack.song@sfgov.org; Mark O’Flynn; matt.dorsey@sfgov.org; districtattorney@sfgov.org
Subject: Further Potential Non-Compliance of Tenderloin Housing Clinic With an HSA Grant

Dear Ms. Tebo and Mr. Herrera:

Pursuant to section 16.21 of a grant agreement between the Human Services Agency and the Tenderloin Housing Clinic( dated 1 July 2008 to “provide eviction prevention to the elderly and disabled)” which states, ” SERVICES PROVIDED BY ATTORNEYS any services to be provided by a law firm or attorney must be reviewed and approved in advance by the City Attorney. No invoices
for services provided by law firms or attorney, including, without limitation, as subcontractors of Contractor, will be paid unless the provide received advanced written approval.

According to the e-mails received from your respective offices, neither HSA nor the City Attorney can document that THC obtained pre-approval from the City Attorney prior to providing legal services under this. Furthermore,while the Tenderloin Housing Clinic has implied use of HSA funds in the matter of O’Flynn vs Suval (see BeyondChron article, Newsom Administration Seeks to End Funding for Ellis Act Eviction Defense by Randy Shaw‚ Feb. 03‚ 2009), HSA is unable to produce any invoices for any matters concerning THC’s legal services as they attempted to prevent the eviction of Susan Suval, (CUD-08-626772, O’Flynn vs Suval). This raises serious questions regarding the use of this funding.

Surely this alarming lack of records on the part of HSA and the City Attorney regarding THC’s complaince with grant agreements warrants investigation, however the e-mails below received from your respective departments offer no plans for follow up or reasons for not doing so.

Therefore, I kindly ask what the are the intentions of your departments regarding THC’s potential violation of their grant agreements with the City outlined in this and other e-mail I have provided to you and, if no action is planned, please provide the reasons why.

With Kind Regards,

Rita O’Flynn 415-386-8224 Cell: 415-260-7608
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04-01-08_THC_Fiscal_&_Compliance_Monitoring_Report.pdf