Proposes a change to city law: Changing the the city's operating rules to increase the minimum grant award amount requiring Board of Supervisors approval for acceptance and expenditure from $100,000 to the greater of $1,000,000 or the federal single audit threshold amount set by the United States Office of Management and Budget, starting October 1, 2026.
Ordinance amending the Administrative Code to increase the minimum grant award amount requiring Board of Supervisors approval for acceptance and expenditure from $100,000 to the greater of $1,000,000 or the federal single audit threshold amount set by the United States Office of Management and Budget, starting October 1, 2026; require Board of Supervisors approval of a grant increase only if it raises the grant to the approval threshold for the first time or increases a previously-approved grant to either 110% or more of the previously-approved amount or $200,000 or more above the previously-approved amount; authorize the Controller to make rules governing the acceptance and expenditure of any grants or grant increases that do not require Board of Supervisors approval; exempt gifts of legal services and litigation-related expert services from the requirement that department obtain Board of Supervisors approval to accept gifts valued above $10,000; and make other non-substantive organizational changes to the sections of code relating to cash revolving funds and acceptance and expenditure of grant funds.
How it got here
This legislation originated from a need to update the grant approval thresholds in the Administrative Code to reflect current federal standards and streamline the approval process.
In June 2020, the City Administrator advised City departments to provide lease relief measures to support tenant retention and business continuity due to the COVID-19 pandemic.
Currently, the Board of Supervisors must approve acceptance and expenditure of any grant of $100,000 or more, with the Controller able to adopt rules for smaller amounts.
Supervisors Mandelman and Dorsey introduced the ordinance to amend the Administrative Code to increase the minimum grant award amount requiring Board approval from $100,000 to the greater of $1,000,000 or the federal single audit threshold.
The ordinance was assigned under the 30-day rule for further consideration by the Budget and Finance Committee.
The Budget and Finance Committee reviewed the ordinance during their meeting, discussing its implications and recommendations.
The Budget and Legislative Analyst provided a report outlining the objectives of the ordinance, including the proposed changes to grant approval thresholds.
The ordinance is set to become operative on October 1, 2026, pending further actions by the Board of Supervisors.
Reconstructed from attached documents & the official record
