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Council halves VIP allocation after staff finds contractual violations; quarterly reporting required
Summary
Council reduced the city’s Violence Intervention Prevention (VIP) allocation after staff reported an unauthorized $900,000 advance to a provider and other reimbursement and conflict‑of‑interest problems; the resolution passed unanimously with a requirement for quarterly reports.
The San Bernardino City Council voted unanimously to reduce the city’s Violence Intervention Prevention (VIP) allocation after staff detailed contract compliance problems with at least one cycle‑4 provider.
Angelica, the city’s VIP coordinator, told the council staff had identified several problems in the city’s Cycle 4 VIP program including: an unauthorized advance of roughly $900,000 made to a provider (described in staff materials as Hope Culture or an affiliate) that the city says contravened the program’s cost‑reimbursement contract terms; personnel‑cost documentation that appeared to claim the same employee time to multiple contracts; and a concern that a former city VIP manager appeared as a paid consultant to a provider while still employed by the city, creating a potential conflict of interest.
Staff said the city had repeatedly notified the provider of the problems in July, August, September and October 2023 and sought documentation and reconciliation of the advanced funds. The coordinator reported that the provider did not comply with repayment requests, and finance staff and program managers began reconciling invoices and disallowing ineligible charges where documentation was insufficient.
In light of the findings and to preserve the city’s ability to administer remaining VIP funds and meet state reporting requirements, staff recommended reducing the local VIP allocation from approximately $3.8 million to $1.89 million and requiring stronger oversight. The council approved that recommendation and added a condition requiring quarterly progress and financial reports to the council. Staff told the council the change will not prevent the city from applying for future VIP cycles; the state offered a short no‑cost extension and staff said it has the state’s patience while San Bernardino reconciles its invoices and budgets.
Ending: The council’s resolution reduces the active local VIP allocation and adds ongoing reporting requirements; staff will continue the local reconciliation and said they will work with providers still under contract to align invoices and recover any disallowed costs.
