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Jacksonville Ethics Office approves KHA CEO’s for-profit business venture with conditions

Kids Hope Alliance CEO Saralyn Grass
Kids Hope Alliance CEO Saralyn Grass Kids Hope Alliance CEO Saralyn Grass

JACKSONVILLE, Fla. — Action News Jax has learned the City of Jacksonville’s Ethics Office and Office of General Counsel have reviewed and approved a disclosure form for secondary employment submitted by the CEO of the city’s Kids Hope Alliance, with conditions.

There had been a question whether CEO Saralyn Grass might have a conflict of interest due to her private for-profit company founded with her husband.

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But the Ethics office, and the OGC, determined there are no conflicts of state or local ethics law under a “self-imposed restriction” that neither Grass or her husband will offer services getting funding from the City of Jacksonville.

The Ethics office said in part:

“Dr. Grass and her husband have agreed they will not accept or provide services to any clients (1) that are receiving or applying for any funding from the City of Jacksonville and (2) on matters/cases related to the City of Jacksonville. They have included this restriction on the website for Verdant Synergies.”

The Kids Hope Alliance (KHA) is the city agency responsible for distributing tens of millions of dollars in grants for youth programs in Jacksonville. KHA has a previously scheduled board meeting set for Wednesday, where she will be under scrutiny.

According to the agenda, board members are expected to discuss both “expectations and evaluation” of Grass.

Ethics review sparked by business dealings

Action News Jax first uncovered two weeks ago that Grass had failed to file mandatory secondary employment paperwork after forming a business with her husband.

That business arrangement raised potential conflict of interest concerns, triggering an ethics review by the city’s Office of Ethics and General Counsel, which remains ongoing.

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Further, Grass came under fire for not notifying the board about a recent Office of Inspector General investigation into the agency. This has fueled concern about communication lapses and leadership accountability.

“Where does that money go?”

City leaders are also requesting more oversight into KHA’s financial practices. Charles Barr, Chair of the Duval County GOP and a member of the city’s Taxation, Revenue, and Utilization of Expenditures (TRUE) Commission, is calling for a new audit of the Kids Hope Alliance, which has approximately a $50 million budget.

“What I want to know is, where does that money go?” Barr asked at a meeting on October 9, two days after Action News Jax’s first report.

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The last audit of KHA was conducted in 2021, and it wasn’t fully resolved until last month.

Now, Barr wants to ensure that the agency’s grant processes, and contract monitoring are functioning properly and that taxpayer dollars are being used efficiently and transparently.

He has requested a KHA representative attend the TRUE Commission’s next meeting on November 6 to explain the agency’s procedures and financial oversight measures.

What’s next?

Wednesday’s KHA board meeting is at 9:30 a.m. Grass’ Secondary Employment form now goes to the Mayor’s Office and Employee Services for final approval.

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