Alabama Governor Kay Ivey removed all 18 members of the International Motorsports Hall of Fame (IMHOF) commission after an audit revealed missing cars and money. A new commission has already been appointed while the museum remains under surveillance.
The IMHOF was established in 1983 and includes a wide variety of historic NASCAR race cars, as well as a few other notable vehicles.
However, an October audit found as many as 35 violations. For example, more than $200,000 in “misspent” funds linked to a former employee, which are currently under investigation by the Attorney General’s Office. No criminal charges have been filed at this time.
Additionally, there were numerous other issues that had nothing to do with the ex-employee, including two donated vehicles that were believed to be missing: a 1969 Dodge Charger Daytona and a 2001 Pontiac Firebird Firehawk 10th Anniversary Convertible. The museum recorded them as being sold, but there are no relevant records that could serve as proof of sale.
Among those fired was Gerald Dial, who worked as the museum’s president and had worked at the museum for more than 40 years. According to the audit, Mike Raita, who previously worked as executive director of IMHOF until early 2024, purchased a 1968 Camaro Convertible Pace Car from the commission for $15,000, immediately after repairs to the vehicle exceeded that amount. Raita’s wife also purchased a 1998 F-150 from the commission for $1,000.
You can find the full report and audit findings, as provided by the Alabama Legislature, HERE. Additionally, below is a list of the 35 violations found during the audit:
– The Commission failed to implement policies and procedures requiring segregation of duties, including review and approval of activities related to the receipt and disbursement of funds.
– The Commission failed to design and implement controls requiring sufficient review of bank account and credit card transactions, resulting in expenditures that were either unacceptable or not documented in a manner that could determine eligibility.
– The Commission failed to design and implement controls requiring sufficient review of payroll transactions and, as a result, an employee overpaid herself.
– Cash received for sales was missing and not deposited into the Commission’s bank accounts.
– The Commission failed to properly dispose of non-consumable personal property.
– Commission money was inappropriately deposited into the personal account of a Commission member.
– The Commission failed to design and implement controls to ensure that all public funds and property were managed by the Commission and not its associated foundation, and that all property or proceeds from the sale thereof rightfully belonging to the Commission were accounted for after the sale.
– The Commission failed to maintain a list of historic vehicles and memorabilia in its possession.
– The Commission has not maintained a list of non-consumable personal property owned by the Commission and other property-related information as required.
– The Commission has failed to design and implement controls requiring that contracts involving Commission operations be approved by a majority of a quorum of Commission members and documented in official meeting minutes prior to execution. Additionally, there were no controls in place to ensure that related financial transactions were properly supported.
– The Commission has failed to design and implement controls requiring that contracts involving Commission operations be approved by a majority of a quorum of Commission members and documented in official meeting minutes prior to execution. Additionally, no controls were in place to ensure that professional services contracts require that items and/or services be documented as having been received before payment is made.
– The Commission failed to obtain and retain appropriate and adequate supporting documents for certain transactions.
– The Commission did not have the appropriate documentation to verify employee pay rates.
– The Commission paid sales tax to several sellers despite being tax-exempt under Alabama Code of 1975, Section 41-9-474.
– The Commission failed to collect and remit sales tax on gift shop sales in accordance with Alabama Code of 1975, Section 40-23-2(1).
– The Commission failed to maintain appropriate meeting minutes to document all official Commission actions.
– The Commission did not exercise adequate controls over the cash collected during the events.
– The Commission did not have adequate controls over collections and deposits
– The Commission did not exercise adequate controls over certain leases and rent payments.
– The Commission did not have adequate controls over inventory purchased for resale.
– The Commission did not have appropriate controls in place to ensure that funds were correctly recorded, tracked and spent legally.
– The Commission’s general ledger does not adequately reflect the financial activity of the Commission.
– The Commission did not comply with certain provisions of the decrees issued by the governor.
– The Commission failed to implement policies and procedures requiring bank accounts to be properly reconciled.
– The Commission did not have appropriate internal controls over petty cash funds.
– The Commission failed to comply with Section 93 of the 2022 Alabama Constitution in paying the expenses of its associated foundation.
– The Commission failed to ensure that appropriate bank accounts were held in the Commission’s name under the Security for Alabama Funds Enhancement (SAFE) program.
– The Commission failed to comply with Section 25-1-3 of the Alabama Code of 1975 because it failed to examine the employment status of persons employed by the Commission.
– The Commission did not have clearly defined policies and procedures regarding payroll and personnel matters.
– The Commission failed to comply with Alabama’s open meetings law.
– The Commission failed to properly notify the Secretary of State of vacancies among members of the Commission, pursuant to Alabama Code of 1975, section 36-14-17(c).
– The Commission failed to go through the Purchasing Director for purchases or request a delegation of authority as required by the Alabama Code of 1975, Sections 41-4-110 through 41-4-179.
– The Commission failed to comply with Alabama Code 1975, Title 39, by awarding several public works projects without obtaining sealed bids and adhering to other requirements of Title 39 relating to advertising and bonding.
– The Commission failed to report all expenditures to the Comptroller for inclusion in the State expenditure database, pursuant to Alabama Code of 1975, Section 41-4-65.
– The Commission failed to require and obtain disclosure statements from providers pursuant to Alabama Code 1975 Sections 41-16-82 and 41-16-85.
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