Palm Springs, CA
In a press release to the community, the City of Palm Springs has put out a statement and information related to the indictment of Queer Works CEO Jacob Rostovsky.
They wrote:
“The City of Palm Springs fully supports the Riverside County District Attorney’s efforts in investigating and indicting Mr. Jacob Rostovsky for allegedly defrauding the taxpayers of our city, our county and state out of hundreds of thousands of dollars. The 53-felony count indictment includes fraud, grand theft, and misappropriation of public funds. While the City recognizes that all criminal defendants are presumed innocent until proven otherwise, we are deeply concerned by these charges, particularly the misuse of taxpayer dollars, and will cooperate fully with the investigation to ensure accountability.
While the indictment includes allegations involving various government entities, including Riverside County and the State of California, we recognize that six of the felony counts explicitly refer to the City of Palm Springs’ Universal Basic Income Pilot Program. The City is committed to ensuring full accountability for public funds and has already taken significant steps to prevent such incidents from occurring in the future.
Proactive Measures Taken by the City of Palm Springs:
In light of the allegations, the City has implemented a number of stringent protocols to enhance oversight and accountability for the management of public funds. These include:
- Elimination of Lump-Sum Payments: Grants exceeding $75,000 will no longer be distributed in lump sums. Instead, funds will be paid through a reimbursement process or split into multiple payments contingent on progress reports and financial documentation.
- Mandated Regular Reporting: Organizations receiving city funds will be required to submit regular progress reports and invoices. Funds will only be released upon receipt and verification of this documentation.
- Enhanced Vetting Process: All new organizations requesting funds will be required to meet strict eligibility criteria, including good financial standing and compliance with local, state, and federal laws. This includes submitting financial audits, tax documentation, and verification from multiple oversight bodies.
- Independent Audits: Organizations receiving over $75,000 in city funding must submit an independent audit annually to ensure financial transparency.
- Designated Oversight: City staff members will be assigned to oversee each grant or contract, ensuring compliance with reporting requirements and financial reviews.
- Staff Training: City staff responsible for managing grants will undergo enhanced training on best practices for financial oversight, reporting, and fraud prevention.
The City of Palm Springs remains dedicated to upholding the highest standards of transparency and fiscal responsibility. We will continue to work closely with the Riverside County District Attorney’s Office and other involved agencies to ensure that those who defraud the public are held accountable and brought to justice.”
