Arts Commission pauses change to grant advance policy after audit findings, delays implementation one year

The San Francisco Arts Commission on July 7 heard a staff presentation on proposed changes to the department's advanced payment (grant advance) policy and was told the department has agreed with the Controller's Office to delay implementing any changes for one year to give grantees time to prepare.

Deputy Director of Finance and Administration Sarah Hollenbeck told commissioners that a Controller's Office post-audit of the department's nonprofit contracting identified the Arts Commission's historic advance practices as noncompliant with city policies. Hollenbeck said the department negotiated with the Controller's Office over several months and reached an understanding that implementation of any new advance policy would be postponed until the next grant cycle so proposed changes can be included in grant guidelines and communicated to applicants.

Why it matters: the department makes grants that range from roughly $30,000 to several hundred thousand dollars and historically provided initial advances ranging from about 50% to 90% of a grant. Cultural centers and small arts organizations said during public comment that a move to a reimbursement-first model or significantly smaller advances would create operational hardship and could force layoffs,…