Controller audit identifies $4 million misuse at Human Rights Commission | The Locally Times
The September 2025 audit found the agency bypassed purchasing rules to fund personal business ventures.
The San Francisco Controller’s Office identified $4 million in misused public funds within the Human Rights Commission in a September 16, 2025, audit. The report states the commission bypassed city purchasing rules to direct money toward ineligible expenses and personal business ventures associated with former Executive Director Sheryl Davis. ## Policy Changes The city expanded its nonprofit oversight framework from three components to four on December 2, 2025, to coordinate monitoring and prevent the circumvention of procurement regulations. The city also established the Office of the Inspector General in October 2025 to investigate public corruption and fraud. Alexandra Shepard began her term as the city’s first Inspector General on October 28, 2025. ## Budgetary Context The San Francisco Municipal Transportation Agency (SFMTA), the department that manages city transit, faces a $307 million budget deficit projected to reach $430 million by 2030. The agency warned that up to 20 Muni routes could be eliminated if it does not secure additional funding. The $4 million identified in the Human Rights Commission audit represents funds that were unavailable for other city programs. ## Restitution Status City records do not specify the current status of restitution efforts or potential criminal proceedings related to the $4 million. The audit documents the disregard of purchasing rules, but public filings do not state if the city recovered any funds or if legal actions against the former executive director are underway. ## Key Questions **What was the $4 million used for?** The September 16, 2025, audit found the funds were spent on ineligible expenses, including personal business ventures of former Executive Director Sheryl Davis.