Anchorage Daily News

WASILLA -- In the wake of a critical audit and other questions about a former executive director's expenses, the Greater Wasilla Chamber of Commerce is tightening controls on spending.

Two people -- the board treasurer and a bookkeeper -- will sign off on any future expenditures, replacing the executive director's sole authority to spend the chamber's money, said Dave Baker, a chamber board member and Wells Fargo vice president.

This after a City of Wasilla review over the summer revealed significant problems with the way the chamber spent a two-year, $100,000 grant to the chamber to start up a convention and visitors' bureau.

Ultimately chamber and city officials agreed last month, the chamber misspent roughly $29,000 of that grant and owed the city that amount as a result.

Among the red flags that surfaced: A $12,500 raise for former Executive Director Cheryl Metiva just weeks after the grant was authorized in 2007, as well as multiple travel expenses for Metiva including a trip to Pittsburgh late last year -- several months before chamber officials started an internal investigation that revealed the organization was having major financial troubles.

Metiva could not be reached for an interview. Her previous e-mail address and cell phone number have been disconnected, and the current chamber director did not respond to an e-mail asking for contact information.

All told, during a two-year period ending in June, the chamber potentially misspent up to a third of the expenditures evaluated by a city consultant as part of a review of the $100,000 grant.

All but eight of 68 transactions selected for a closer look had some kind of problem, according to the analysis by Anchorage accounting firm Mikunda, Cottrell & Co. Inc.

QUESTIONED SPENDING

The accountant called roughly $9,400 in spending "questionable" in terms of complying with the city's contract, which prohibited spending money on general building improvements at the chamber's Alaska Railroad depot headquarters.

The contract also barred using grant money for items such as computers or furniture unless it was strictly for the visitor's bureau and not for the chamber too.

Another $2,636 appeared to violate a city provision that no more than $10,000 of the grant could fund miscellaneous expenses such as travel, personal expenses or convention fees, according to the consultant's report.

The chamber also failed to provide supporting documentation for roughly $3,600 in expenses.

According to the report, Metiva made several trips using the grant money, including a four-night stay at the Baranof Hotel in Juneau for a state travel industry convention, the trip last November to Pittsburgh for a national convention, and what she called a "staff familiarization tour" of Seward that involved $62 stay and a $30 meal at the Anchorage Marriott in August 2008.

She also spent $1,000 rewiring the chamber, paid $1,000 at Home Depot for flower beds and interior paint, and paid multiple membership dues -- more than $3,000 alone to the National Tour Association.

The grant money also paid for a $65 ride from Alaskan Splendor limousine service for a ride home to Wasilla from the Anchorage airport, according to the report.

THE PAY RAISE

The $29,000 owed by the chamber covers various discrepancies as well as the $12,500 bonus for Metiva, said Wasilla Mayor Verne Rupright. While the contract allowed the chamber to use up to $25,000 on employee pay, the chamber failed to document any board decisions authorizing the raise, Rupright said. Plus the money -- ostensibly to reward her for working on the grant -- came just weeks into the job.

"Who gets paid on a job before the work is done?" he said. The chamber did start a bureau Web site and mail out packets to prospective tourists.

The City Council last month offered to let the chamber to repay the money owed through in-kind sponsorship of community events instead of cash, city and chamber officials said.

That means putting together Fourth of July fireworks, parades -- traditionally, the role of the chamber until the city took on those duties a few years ago.

The arrangement reflects the chamber's cash-strapped condition.

Last January a newly elected board of directors turned fresh scrutiny on the chamber's finances.

In April chamber members learned the depth of the chamber's money woes: the chamber had little more than $4,000 to last the rest of the year. It was spending $10,000 a month, much of it on salaries to Metiva and another staffer.

Five of seven board members resigned in May, several later citing concerns about Metiva's spending habits. Metiva was placed on paid administrative leave in May.

That same month she asked for even more money from the city, according to an e-mail sent Rupright and the City Council.

Metiva requested another $50,000 over the next two years after learning the city's budget didn't include money for a visitor's bureau.

"The GWCC has not only met all the requirements of our original contract with the City of Wasilla... I believe we have exceeded expectation," Metiva wrote.

FOCUS ON SOLVENCY

In late June a largely new board voted unanimously to keep her on because any spending improprieties were done under the watch of at least some board members.

But in an e-mail July 10, Metiva e-mailed word of her plans to resign effective July 17.

At the time she blamed her decision in part on the media and meddling board members.

July 17 is also the date on a cover letter that Mikunda, Cottrell & Co. sent with its report.

The city did not renew the chamber's contract to run the visitor's bureau, which expired in July.

The chamber still plans to run some kind of visitors' bureau, Baker, the chamber board member, said. But plans for that, and any long-term projects, will wait until upcoming board elections wrap up next month.

"The chamber right now is focused on being solvent, which we are," he said.

Find Zaz Hollander online at adn.com/contact/zhollander or call 352-6711.

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