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.
