COLUMBIA — The Greater Cayce West Columbia Chamber of Commerce confirmed a state investigation into their spending but denied any wrongdoing in an Oct. 15 letter.
The letter, signed by Chamber Chair Lindsey Miles, reinforced the organization’s “commitment to transparency, accountability, and lawful financial stewardship.”
Miles confirmed the Tourism Expenditure Review Committee, South Carolina’s sole oversight authority for tourism-related expenditures, initiated an investigation into the chamber last month.
According to a letter from TERC Chairman Ed Riggs, the investigation was triggered by a complaint that the chamber “has not been spending accommodations tax revenues in accordance with S.C. Code Ann. 6-4-10(3).”
Miles called the complaint "anonymous and unsupported," based on unsubstantiated allegations that the chamber may have misallocated accommodations tax revenue on non-tourism related activities.
Miles said the chamber provided TERC with “detailed documentation and financial reports outlining how A-Tax funds were used to promote tourism in the region,” including documents that had previously been submitted to Cayce.
On June 3, the Cayce City Council voted 3-to-1 vote to send all $44,000 of the tax money to the Chamber for the 25-26 fiscal year — a break from earlier years in which the money was split between the chamber and two local tourism organizations, Experience Columbia and Capital City/Lake Murray Country.
The move caused friction between the majority of the council and Mayor Elise Partin, who said at the time of the vote that she was unaware other council members were going to end funding to the two tourism agencies. She questioned whether the chamber could provide the same level of tourism promotion and called out its lack of reporting from previous years.
“We need those dollars to bring people into the community, and I have no data that says we get that from the chamber,” Partin said after the vote. “I don’t have any of the data to say what kind of return on investment we’re getting.”
According to the law, organizations are required to submit itemized expenditure reports showing how they spent the money awarded to them, including invoices. That’s because the funds can only be spent to promote and advertise tourism to the city who awarded the money.
“We have complied with the law, submitted regular reports, and used all funds solely to promote tourism and support our local economy,” Miles wrote. “We welcome oversight and are cooperating fully with the state to ensure complete transparency.”
Miles said the chamber’s budgets are approved by its board, which is composed of 20 local businesses. The chamber’s finances are reviewed by the internal Finance and Audit Committee, she added.
According to documents obtained by The Post and Courier, in the last three years the chamber submitted profit and loss statements in place of expenditure reports to the city of Cayce. The profit and loss statements do not differentiate between how the group spent funds awarded by Cayce and funds from other municipalities. While the report breaks down expenditures into categories such as “Advertising - TV” and “Advertising - Web,” it doesn’t provide invoices for how much each ad cost, nor does it list any vendors for those ads.
But in a follow-up email to The Post and Courier, the chamber said the city of Cayce never asked them to break down the cost of each individual advertisement or provide the name of the vendor, nor did they ask them for receipts. Regardless, the chamber said it has that information on file.
And the chamber said it included examples of advertisements it would create to promote the city as part of its 93-page application seeking city funding.
“We do not know why Cayce left that out of their submission,” the chamber said, referring to the city not providing the advertising examples in its report to TERC.
The chamber’s report also failed to provide any data on the effectiveness of its advertising and promotion — a statistic Cayce’s council specifically requested, according to documents obtained by The Post and Courier. Cayce’s Accommodations Tax Grant 30% Financial Report asks recipients to submit two years worth of data tracking total tourist attendance, broken down into local tourists and those who traveled from more than 50 miles away, along with hotel rooms and overnight stays booked as a result of the promotion.
The chamber left that section blank because the group uses the accommodations funds for operation expenses, excluding payroll.
“We are a visitor center with the goal to ultimately put heads in beds,” the chamber said in its follow-up statement. “Within the law, accommodations funds can be used toward operational expenses for a visitor center as long as they are promoting tourism in the area.”
An earlier version of this article incorrectly stated the Tourism Expenditure Review Committee was within the S.C. Department of Revenue.