State arts agency confirms audit as it probes Fresno Arts Council in aftermath of Measure P scandal

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The State-Local Partners program provides general operating support and technical assistance to designees. Local partners, such as the Fresno Arts Council, can request up to $75,000 per year for the two-year grant activity period, according to the website of the California Arts Council.

The California Arts Council did not immediately respond to a request for information on whether the Fresno Arts Council has received funding through the State-Local Partners program.

The California Arts Council also did not respond when asked if the audit is about finances at the Fresno Arts Council, including the expenditure of state funds, and/or involves an investigation into the organizational health of the Fresno nonprofit.

The health of the Fresno Arts Council could be a subject of inquiry because of the embezzlement scandal. Last week, on Sept. 8, City Manager Georgeanne White said the Fresno Arts Council refuses to give the City embezzled Measure P money that PayPal has reimbursed to the Arts Council. Suliana Caldwell, the former operations manager at the Arts Council, embezzled $1.82 million using her PayPal account from 2022 to early 2026.

The Munro Review asked White on Wednesday for an update: Has the Arts Council since last week returned all or any portion of the money the City says it is owed? She responded with an email that consisted solely of a zero sandwiched between two hyphens: “-0-”.

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On the advice of City Attorney Andrew Janz, White declined to say on Sept. 8 whether the City plans to sue the Arts Council. Waste, attorney for the Arts Council, said on Sept. 8 that he was in communication with the City Attorney’s Office and that he looked forward “to resolving these issues to both sides’ satisfaction.”

Meanwhile, the U.S. Attorney’s Office recently disclosed that the FBI has traced the $1.82 million. Approximately $1.17 million came from the City’s Measure P arts grants program, and approximately $642,000 came from accounts owned by the Arts Council. So far, PayPal has reimbursed the Arts Council approximately $900,000, which is more than the $642,000 that the Arts Council lost from its non-Measure P accounts.

The Arts Council had in its possession the City’s Measure P taxpayer funds because it was administering the competitive arts grants for the City.

PayPal has not responded to questions from The Munro Review, including why it’s reimbursing the Fresno Arts Council, whether it intends to reimburse the entire $1.82 million and why it’s not working with the City of Fresno, as City Manager White alleges.

In a related development, The Munro Review asked on Monday, Sept. 14, for a copy of the Fresno Arts Council’s bylaws and a meeting schedule for its board of directors. Attorney Waste responded: “My client will not be responding to this or any other communication. Nor will I respond to any future e-mail. We all respect that you are just doing your job, so please note that this is not intended as a personal slight.