An independent audit of the Mission Economic Development Agency (MEDA) found a "material weakness" in its financial controls after a former employee allegedly created unauthorized vendors and invoices for IT services, Mission Local reported.
The audit, completed Sept. 30 by Aprio, covers fiscal year 2025. After it, the San Francisco Controller's Office placed MEDA in Tier 3, a heightened level of oversight for city-funded nonprofits.
Financing vote delayed
A city financing agreement worth up to $22.2 million was delayed from Oct. 21 and is now scheduled for Wednesday, Oct. 28, according to Focal News.
Executive director Luis Granados said the problems have been resolved. MEDA said it was the victim of a crime and that its insurer covered the losses.
MEDA has more than 1,300 affordable housing units. It laid off 12 staff in April and earlier secured a $37.8 million refinance.