North Carolina’s Tribal Alcohol Beverage Control Commission (TABCC) has completed a probe of allegations of financial mismanagement within its board. The probe is investigating reports of consistent misconduct by one of the board’s members while consuming alcohol at Harrah’s Cherokee Casino.
The Eastern Band of Cherokee Indians Office of Internal Audit and Ethics filed damning documents in November 2022. This has led to the resignation of TABCC Chairman Pepper Taylor, while TABCC Commissioner Shannon Ross’ job is also under serious threat.
The Eastern Band of Cherokee’s audit reviewed internal controls at the TABCC dating from November 2, 2022. It showed that official debit card transactions for food and beverage purchases totaled $76,421 over 15 months and $133,039 on travel and training in the same period.
The findings also showed that the TABCC’s five commissioners were responsible for 63% of travel and training expenses, while the remaining 37% was divided between the organization’s seven alcohol law enforcement agents.
The internal audit also found that 71% of travel expenses did not comply with a policy stating that travel costs must be reconciled within five days of return. Additionally, the TABCC made $213,074 in donations and sponsorships without documenting alcohol education, as it is legally required to do.
The summary of the audit was extremely indicting, showing that the TABCC, which had a budget of $2.46m in 2022, was operating without bylaws or a formal governance structure. There was no management for fiscal policy and no legitimate process for adding vendors to the accounting system.
Since its establishment in 2009, the TABCC has gone from serving one customer – the Harrah’s Cherokee Casino, NC – to regulating alcohol sales across Tribal lands and operating a liquor store with eight employees.
