Palm Springs, California, is facing scrutiny over its grant management practices as the City Council prepares to discuss a grand jury report linked to the indictment of Queer Works CEO Jacob Joseph Aaron Rostovsky. The Riverside County civil grand jury released its findings on June 23, highlighting deficiencies in the city’s procedures for processing and monitoring grants and contracts after a thorough investigation.
The report revealed that Rostovsky, 35, allegedly misappropriated over $90,000 intended for mental health services supporting the transgender and nonbinary community. He was indicted on Oct. 16, 2024, facing 53 counts of fraud, grand theft, misappropriation of public funds, insurance fraud, and money laundering. Rostovsky has pleaded not guilty to all charges and was released on bail set at $944,000.
The upcoming City Council meeting on Wednesday will address the grand jury’s conclusions, particularly concerns about how a lack of oversight reportedly led to the city losing more than $70,000 from its universal basic income pilot program. The 27-page report also offers recommendations for improvement, suggesting the city implement comprehensive guidelines for future grants and contracts and introduce annual fraud detection training for employees.
City officials have acknowledged the need for enhanced oversight and policies regarding grant management, emphasizing that the existing framework was insufficient. This recommendation is aimed at preventing similar incidents in the future and restoring public trust.
The council meeting is scheduled to begin at 5:30 p.m. in the City Hall council chamber, located at 3200 E. Tahquitz Canyon Way. Community members are encouraged to participate either in person or by watching the meeting livestream on the city’s YouTube channel.
As the council prepares to deliberate on these critical findings, residents remain concerned about the implications for local funding and services vital to the community.
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