RivCo Civil Grand Jury finds Palm Springs lacked proper procedures for vetting and monitoring of grants

RIVERSIDE, Calif. (KESQ) - A Riverside County Civil Grand Jury investigation has revealed serious oversight failures in Palm Springs.

It's from a $700 thousand grant awarded to Queer Works by the City of Palm Springs.

The Riverside District Attorney requested the investigation following the indictment of Queer Works CEO Jacob Rostovsky in October 2024 on 53 felony counts in a fraud scheme involving a Universal Basic Income Pilot Program.

The Grand Jury's report found that the city failed to enforce key terms of its agreement with Queer Works, such as requiring monthly progress reports and financial updates.

Jury members found that city staff lacked fraud training, and that councilmembers relied heavily on Desert Aids Project's endorsement of Queer Works without proper vetting of the non-profit.

The Grand Jury issued ten recommendations, including stricter grant monitoring, mandatory fraud training, and regular independent audits.

The city has already updated some policies, but the report urges full implementation of the recommendations by the end of 2025.

The investigation also found inconsistencies in Queer Works' financial records and concluded the city received no tangible results for its investment.

News Channel 3 has reached out to both the District Attorney and the city of Palm Springs for comment and will continue to follow this story.