Swain chamber, TDA finances called into question

Board appoints Mary Anne Baker as director

BY JESSI STONE N EWS EDITOR

Swain County commissioners are going to be giving more consideration to who they appoint to county boards after hearing a long list of grievances from a member of the Tourism Development Authority.

Ed Ciociola, treasurer for the Swain County Tourism Development Authority, recently told county commissioners that something needs to change in the longstanding ties between the county’s chamber of commerce and the TDA.

Since taking over as the TDA board treasurer last year, he said he and other board members have found a number of “grave discrepancies” while reviewing the budget and expense reports from the chamber of commerce.

After becoming treasurer, Ciociola said he took part in meetings with TDA auditors who made it clear the chamber and TDA accounts were “too intertwined” and said the separate entities should keep their finances separate even though the two have shared office space and staff in the past. The TDA is a quasi-governmental agency that is tasked with spending room tax revenue to promote tourism while the chamber of commerce is a Downtown Bryson City. SMN photo private nonprofit that supports its paying business members.

However, he said some of the board members have not been open to the suggestion and unwelcoming of newer board members trying to understand the processes. He added that often it’s the same people rotating back and forth from the chamber board to the TDA board who are accustomed to the arrangement and don’t appreciate it being questioned.

“It seems like most people don’t know much about the TDA — what we do or how we are funded. There’s no training sessions for new (board) members and there’s a big learning He said these alleged discrepancies can curve. Questions from new members have be found in the monthly billings and disbeen met with condescending replies,” bursement requests the TDA receives from Ciociola said. “I would ask, ‘Why is the the chamber each month, and the more he chamber paying our bills and getting reimlooked into the reports, the more problems bursed? Why can’t we just pay our bills he found. As a volunteer board member, directly? Responses typically fall into a simiCiociola said it became clear it was too much lar theme, ‘that’s the way we have always to correct on his own and sought assistance done it.’” from TDA staff and the county’s finance

director.

“There’s so many different ways the TDA is being incorrectly billed through the chamber,” he said. “The chamber bills the TDA for chamber expenses and since it’s lumped into a large request, it’s so hard to spot.”

Ciociola claimed the chamber payroll account, which is entirely funded by the TDA, had a $22,000 surplus F

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when he started, and that the chamber had He said these problems have caused a been billing the TDA for the cost of their lot of misinformation in the community storage unit. He also cited examples of concerning the TDA’s affairs, and he per“wasteful spending” — the chamber was sonally has been portrayed as a villain tryspending $1.75 each time staff mailed out a ing to damage the chamber. visitor guide. After a little research, Ciociola “Now the entire TDA is being villainized said the TDA was able to buy a bulk mail by chamber loyalists as trying to damage permit from the post office, moved the the chamber when, in fact, we are trying desperately to make

“I am not making any judgment as to the them a self-sufficient, independent organireason for these grave discrepancies. zation that is selffunded through a

Whether it was deliberate, negligent or number of increased just inefficiency, we are far more revenue sources,” he said. “Every year you concerned with correcting the situation than assigning any blame or logic.” as a board have to make tough decisions about who sits on the — Ed Ciociola board and now it’s more important than ever and will decide mailing in-house and now only pays 71 the direction of the TDA’s future.” cents per visitor guide — saving the TDA Ciociola said many of the board memthousands of dollars. bers have big goals for the TDA to start

“The chamber would bill the TDA for hosting more events, going after more expenses that had already been paid. We grants and building new tourism-related would have to look at every expense on a infrastructure to benefit tourists and resireimbursement request and hope we could dents. He said he also wants to see more recognize something we remembered paying areas represented on the TDA board, previously,” he said. “The TDA would pay including the Nantahala Gorge and Deep for something, through the chamber, like Creek. Christmas trees. The chamber would then The TDA board is already making major sell the trees after the season and keep the changes. During a May 13 Zoom board money. The chamber would run an event, meeting, the TDA board voted to make buy items for the event that they would sell Mary Anne Baker executive director of the for a profit and requisition the TDA for the TDA. Baker has worked for the TDA as the same items they sold for a profit.” social media manager since 2017, but Karen

The list of claims went on — Ciociola Proctor Wilmot has been the TDA director said the TDA would pay for a service or for many years. At the same time, she’s also product and it would be canceled or been director of the chamber of commerce. returned but the chamber would keep the During a May 27 TDA meeting, the refund instead of returning it to the TDA. board approved its budget in a 3-2 vote. When a conference was canceled, reservaThe budget did not include money to protion money was refunded to the chamber vide Wilmot’s salary as it has in the past. and not given back to the TDA. He said he Swain County Commissioner Roger found one reimbursement request for Parsons said he attended the last TDA $7,600 and it turned out to be the overdue board meeting and agreed board training is balance on the chamber’s credit card even definitely a need. though the listed expenses were only for “These boards are a reflection of the $1,500. board of commissioners,” he said. “We

“And there are more examples, well docshould look at appointments carefully and umented in the county finance office,” he when we appoint the members they are able said. “We shouldn’t have to work this hard to go through a training process.” continually correcting other people’s misCommissioners have three TDA takes. It distracts from the actual, producappointments coming up soon and agreed tive work of the TDA.” to go through an interview process moving

Ciociola said the TDA board asked the forward. chamber to submit a request for services so Commissioner Kenneth Parton agreed, we could legitimately pay them for services saying he wants the commissioners to also performed on behalf of the TDA, but that spend additional time talking about the the numbers the board got back were TDA priorities. “unsustainable” — $45 an hour to answer “I think we can spend (the money) betthe telephones, $41,900 for downtown ter than just on marketing and tourism,” he flower pots (even though the contractor’s said. “We sure don’t need more fighting — bid was $33,800), $59,100 to mow the grass it shouldn’t cause more problems.” on county property, $82,000 in manageDuring the commissioners’ June 11 ment fees and an additional $21,000 in meeting, County Manager Kevin King said operational costs. he was working to develop policies and pro

“I am not making any judgment as to cedures for county-appointed boards to the reason for these grave discrepancies. present during its next meeting June 25. Whether it was deliberate, negligent or just The commissioners will be interviewing the inefficiency, we are far more concerned with 11 people who’ve applied for the TDA board correcting the situation than assigning any starting at 1 p.m. June 18 before making the blame or logic,” he said. appointments June 25.

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