Troubled federal grants to hurt San Francisco

So far, the city has repaid $2.7 million
April 12, 2008 12:00:00 AM PDT
A recent audit found that San Francisco received federal grants it wasn't supposed to get. Officials surmise that the city will now face a $9.3 million hit to its budget.

The findings by the Justice Department show that San Francisco erroneously received the funds under a federal program that gives money back to local authorities for handling prosecutions on behalf of federal prosecutors.

So far, the city has already repaid $2.7 million after federal prosecutors threatened to sue the city for a reported $5.4 million in grant funds.

That amount was later increased to $5.7 million, with an additional $3.6 million believed to be added on to that figure.

An investigation to find the cause of the mix up is now underway.