The Grayson-Carter County Tourism Bureau is working to remediate the organization after irregular transactions were flagged in June that suggested possible misuse of funds.
The former treasurer resigned from his position on the board on Friday, June 28, after multiple expenditures that were not approved by the board came to light. Chris Perry, the board’s treasurer and spokesman, said the amount is unknown.
The announcement was made Wednesday evening.
“My first reaction was, how could that happen,” he said, detailing the incident in Carter County Fiscal Court on Wednesday. “I’m embarrassed.”
Kentucky State Police confirmed to The Daily Independent that they are investigating a former member of the committee.
Perry said board members discussed the issue at a special meeting on June 28 and reviewed multiple bank statements that they had received. He requested statements from the date the accounts were opened to the present.
“We obtained them and at the special meeting we looked at them and realized there were some expenditures that we had not approved as a board,” he said. “I also reported to the board that I had met with the treasurer and accepted his resignation and submitted it to the board.”
Perry said the tourism board will move forward with closing the accounts and will appoint Perry as interim accounting officer at its regular monthly meeting on Monday, July 1, “to be responsible for opening new accounts and closing old accounts.”
“And I did just that, instituting a provision on new accounts requiring two signatures on checks and banning the use of debit cards on the accounts altogether.
“No board members have access to debit cards,” he said, something that wasn’t done even before COVID-19.
The justices appeared to sit with stunned expressions as Perry delivered the news to the courtroom, some asking no questions, others wanting to know why no one noticed the possible embezzlement by members of the tourism board.
“I want to know why this has gone on for so long and nobody has caught it at the commission,” said 3rd District Magistrate Judge Millard Caudle.
Pictured is 3rd District Magistrate Judge Millard Caudle.
Austin Johnson / Daily Independent
“(It) was under my supervision and I was too trusting,” Perry added.
Perry said he recently learned that some invoices he thought had been paid hadn’t actually been paid. He said he’s “digged into that in the last few weeks” and now has invoices from everyone they know who owes money.
Commitments were made to the Carter County Fair and the Shriners, but the board did not have enough funds to cover the commitments already made.
“The check from Carter Caves was not enough to cover the amount we committed to earlier this year, we sponsored a rodeo at the fair last year and it was a huge success for the fair.
“They asked us to do it again this year, and it was about $12,000. Also, the Shriners have approached us about helping with some of the advertising and entertainment costs, so we have to find a way to pay for that.”
Perry said there are many properties currently not paying the 3% tax and suggested a way out of this predicament.
“You’d be amazed at the number of motels in this county that haven’t paid taxes in almost a year. Not only have they not paid us, they haven’t paid the city of Grayson. We also have Airbnbs and campgrounds that don’t pay taxes in this county,” Perry said.
“The only two campgrounds in the county that have fees are Carter Cave and Grayson Lake,” he said, noting that those areas are state land. All campgrounds, public or private, “are required to pay a fee,” he said.
Mr Perry said he was counting on the tax to help keep the tourism bureau afloat. Letters were sent to people known to have not paid the tax.
“Hopefully it will ignite a fire in their hearts,” he said.
“Once these payments are made the tourism board will be in good standing again. In the meantime the board would like me to contact the bank and secure a line of credit so that we can repay the amounts we have committed,” Perry said.
The bank agreed to provide a line of credit to the tourism bureau, and Perry said it had “nothing to do with the fiscal court or the county. It’s all done in the name of tourism.”
Carter County Attorney Brian Bays and Perry told the Daily Independent that residents should not lose sight of the commission’s sense of responsibility to Carter County residents.
Carter County Attorney Brian Bays is at Thursday’s special meeting.
Austin Johnson / Daily Independent
“The Tourism Commission has done some really great things in this county,” Perry said. “Having led the largest tourist attraction in the county (Carter’s Caverns), I can tell you that we’ve seen the Tourism Commission at its best.”
“I was lucky to have some cheques coming in at the courthouse so I was able to put them in my account and get over my overdraft and get myself out of trouble,” he said.
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Email: ajohnson@dailyindependent.com
