Controller's Office staff, the City Services Auditor and city performance staff briefed the Citizens General Obligation Bond Oversight Committee on Feb. 10 about recent bond transactions, planned issuances and audit work.

Mark Dela Rosa, director of audits for the Controller's Office, reported ongoing public integrity reviews and said the office plans to issue a public integrity deliverable related to contracts involving Duane Jones and affiliates, noting the contractor was criminally charged in August 2023. Dela Rosa said the office is coordinating with the City Attorney on related investigations.

Controller staff reported that the city recently priced and closed a Geo Bond transaction for multiple authorizations, which supplied approximately $552 million in proceeds across 2018 Seawall bonds, 2020 Easter bonds and 2019/2024 affordable housing bond programs. The staff update said the sale produced competitive bidding and an overall blended interest cost in the mid‑4% range.

Staff outlined a near‑term plan that includes a small issuance (not to exceed $40 million) for the past affordable housing program expected to price and close in March, and potential spring issuances to begin deploying proceeds from the November 2024 Proposition B (Vibrant, Healthy and Safe San Francisco) ballot measure and additional 2020 Health & Recovery bond proceeds. Staff clarified a previously reported percentage of proceeds issued for the 2020 Health & Recovery bond (the actual proceeds issued are lower than the authorization because some projects were not ready when proceeds were first sold).

The City Services Auditor reported continued compliance and performance audits, cybersecurity testing, and a geobond expenditure audit of the 2019 affordable housing bond due in spring; that audit will be followed by the 2020 Health & Recovery geobond expenditure audit.

Natasha Mihal (City Performance Director) summarized recent nonprofit contract monitoring guidance and annual reports, noting roughly 70% of nonprofits monitored had no findings; a smaller group of nonprofits will be subject to corrective action plans.

Committee members discussed audit sequencing and requested a schedule showing planned geobond expenditure audits and expected start/completion dates. Staff agreed to provide a forward plan and to consider consolidating closeout reporting for largely expended bond programs to reduce repetitive presentations.