The San Francisco County government meeting on July 4, 2025, focused on the recent audit of United Council, a nonprofit organization previously funded by the city. The Human Services Agency (HSH) requested the audit in response to concerns about United Council's financial practices. The audit revealed 14 recommendations aimed at improving oversight and compliance, of which several have become moot due to significant changes in United Council's funding status.

In February 2025, the controller's office placed United Council on "red flag status," indicating a high risk of instability that could jeopardize service delivery. This designation followed a review by the city's joint nonprofit monitoring program, which assesses the financial health of contractors. As a result of its suspended charitable registry status, United Council is no longer receiving city funds, and all services have transitioned to its fiscal sponsor, the Felton Institute.

The meeting highlighted that five of the audit recommendations are no longer applicable since United Council is no longer a recipient of city funding. However, HSH has successfully implemented six recommendations, including enhanced verification requirements for grant agreements and improved monitoring of service delivery.

Three additional recommendations are in progress, focusing on developing policies for employee enrollment in city-funded programs and determining fee structures for services. HSH is also negotiating a new agreement with the Felton Institute to provide support to United Council, aiming to preserve its ability to serve vulnerable populations in the Bayview area.

Despite the loss of funding, United Council remains under red flag status, which will not be monitored by the city unless the organization stabilizes and seeks to regain funding. The meeting underscored the importance of ensuring that nonprofits with deep community ties are managed effectively to maintain public trust in city services.