An update from PRC CEO Chuan Teng

Dear Friend,

I hope this letter finds you in good health and high spirits. For PRC, the past ten months have been a dynamic time of transformation, one in which we have become a stronger, more resilient, and more effective organization. As we embark upon the new fiscal year, I am pleased to report on the progress we have achieved and share exciting opportunities in the year ahead.

Strengthened Financial Condition 
Since last fall, PRC has undergone an ambitious endeavor to strengthen the organization’s financial condition. In this pursuit, we have scrutinized expenses, renegotiated leases and vendor contracts, and reduced costs wherever possible. In January 2023, we completed the successful transfers of two under-utilized and under-funded residential programs to another provider. These transfers completed the organization’s planned restructuring and also significantly simplified operations and reduced overall expenses.

Importantly, the savings we achieved were realized without reducing staff salaries. In fact, last March, we implemented a 4% salary increase for all staff except for select executive leaders. The organization will continue to make critical investments that prioritize staff compensation to address sector-wide staffing shortages and uphold its commitment to fair and competitive wages.

Completed Financial Analysis and Sustainability Plan
With help from the City Controller’s Office, PRC completed a detailed financial analysis of the organization and its programs. Based on this analysis, we partnered with our largest funder, the San Francisco Department of Public Health (DPH), to correct long-standing, underfunded contracts. We also developed a financial sustainability plan to establish a sustainable, cost-neutral organizational model to deliver the most critical behavioral health and social services programs for people affected by HIV, substance use, or mental health issues in San Francisco.

Grew Capacity for Finance, Operations, and Compliance
Over the past several months, PRC received several capacity-building grants to enhance functions within its finance and operations departments. Important investments were made to hire a new Real Estate Asset Manager, Director of Contract Compliance and Data Systems, and a seasoned Consulting Chief Financial Officer with over two decades of experience working for the City and County of San Francisco. As a result of these investments, the organization has developed and implemented a new contract management database, initiated the upgrade of its financial management system to Sage Intacct, and completed capital needs assessments for the majority of its properties.  

Transformed Lives
Amidst all of this progress, PRC continues to empower 5,000 people annually to create positive transformation in their lives through housing, mental health, and substance use treatment, legal advocacy, workforce development, and emergency financial assistance. Additionally, PRC through the Black Leadership Council, continues to advance health equity policies and is co-sponsoring their first bill AB 85 (Weber), which will require health plans to include coverage for social determinants of health screenings, as well as other policies that advance health, wealth, housing, and education for Black and low-income communities of color.

Opportunities Ahead
In the year ahead, PRC is undertaking several new initiatives, including growing its housing navigation services and diversifying funding streams through new revenues from the state and private institutions. We believe these changes are necessary to respond to the humanitarian crisis of homelessness, adapt to state-wide behavioral health policy reforms, as well as ensure long-term organizational sustainability. As always, we will guide strategic decision-making with the goal of improving client experience and creating greater community impact.
 
We are in a much better, stronger, and more effective place than we were last fall, all due to the hard work of our dedicated staff and board members – we’re thrilled to announce a new appointment with Tamarah Prevost, Partner at Cotchett Pitre & McCarthy LLP – as well as the commitment of our partners and the generous support of our community. We cannot say thank you enough.

In gratitude,

Chuan Teng
PRC CEO