Dozens of Fresno arts and culture organizations awaiting funds from a city-funded grant program remain in limbo nearly two months after an alleged $1.5 million embezzlement scandal came to light.
City officials this week had no new information on the investigation into an ex-employee of the Fresno Arts Council, a decade-old nonprofit that was contracted by the city to administer an annual arts and culture grant program funded by the Measure P sales tax.
Fresno Arts Council said it was “the victim of unauthorized financial transactions resulting in the loss of agency funds” on Friday, Feb. 6. Fresno Police Department and the FBI are investigating the case, which city sources told The Bee centers on a former operations manager.
Parks, Recreation and Arts Commissioner Jose Leon Barraza asked city park staff during a monthly commission meeting Monday night if there was an update on the city’s attempt to recoup any of the estimated $1.5 million of missing taxpayer funds.
“I don’t have that information, I’m sorry,” said Shelby MacNab, assistant director of the Parks, After School, Recreation, and Community Services (PARCS) department.
“Do we have any new information as to what happened with the money that got lost?” Barraza asked.
“No, we don’t, at this time,” Macnab said.
Aaron Aguirre, PARCS department director, said the department has received limited information given the ongoing law enforcement investigation.
“Details are pretty limited as far as what we’re receiving (from law enforcement),” he said. “We have not been updated — it’s still in the active investigation process. So I don’t think we’re going to have the information to share with you, unfortunately, at this time.”
Fresno PD Spokesperson Lt. Larry Bowlan said that as of Wednesday, he had no new information to report and that no arrests or arrest warrants have been issued by Fresno PD.
‘What is the city’s plan moving forward?’
PARC Chair Kimberly McCoy asked how the city would make sure that grantees who have yet to be paid their awarded grant funds during the ongoing investigation.
About 33 organizations and artists are still awaiting payment from the previous grant cycle.
McCoy said many of these small nonprofits rely on these grant funds and they may be forced to shut their doors the longer payment is withheld from them.
“I don’t want the public to get a bad taste in their mouth about the arts and cultural portion of the Measure P because it really is a good thing,” McCoy said.
City Manager Georgeanne White said in February that it would take at least a month for the city to start paying artists after the city took over administration of the grant funds upon cancelling its contract with Fresno Arts Council effective Feb. 20.
“We are working actively to work through the next steps for the grantees who have not been paid, those who have been paid, and we’re working with our risk and legal departments expeditiously,” MacNab said.
The PRAC Commission voted Monday to recommend the hiring of three new positions in the PARCS department to oversee the Expanded Access to Arts and Culture Grants program: a project liaison/program administrator, a community outreach specialist and a community coordinator.
McCoy and Barraza voted against the item after several community members and artists urged the city to prioritize hiring a Cultural Affairs Director to oversee the program. The item that ultimately passed with five supporting votes.
Previously, there was no staff in the parks department dedicated to this administrative function, MacNab said.
The item will appear before Fresno City Council on March 26 for adoption before the jobs can be posted.
Commissioners also approved a resolution to establish the Expanded Access to Arts and Culture Subcommittee to oversee grant guidelines as the city moves the program in-house.
The Fresno Bee
Melissa Montalvo is The Fresno Bee’s accountability reporter. Prior to this role, she covered Latino communities for The Fresno Bee as the part of the Central Valley News Collaborative. She also reported on labor, economy and poverty through newsroom partnerships between The Fresno Bee, Fresnoland and CalMatters as a Report for America Corps member.