Alabama Governor Kay Ivey has removed all 18 members of the International Motorsports Hall of Fame (IMHOF) Commission after an audit uncovered missing cars and money. A new commission has already been appointed as the museum remains under scrutiny.
The IMHOF was established in 1983 and includes a wide variety of historic NASCAR race cars, as well as some other notable vehicles.
However, an October audit found no fewer than 35 violations. For example, over $200,000 in 'misspent' funds connected to a former employee, which is currently being investigated by the attorney general’s office. No criminal charges have been filed at this time.
Additionally, there were many other issues that have nothing to do with the ex-employee, including two donated vehicles that are reportedly missing: A 1969 Dodge Charger Daytona and a 2001 Pontiac Firebird Firehawk 10th Anniversary Convertible. The museum recorded them as being sold, but there is no relevant documentation to serve as a proof of sale.
Among those removed were Gerald Dial, who worked as the museum chairman and had been at the museum for over 40 years. According to the audit, Mike Raita, who previously worked as the executive director at the IMHOF up until early 2024, purchased a 1968 Camaro Convertible Pace Car from the commission for $15,000, and that this followed over $22,000 in repairs to the vehicle. Raita’s wife purchased a 1998 F-150 from the commission for $1,000 as well.
You can find the full report and findings from the audit, as provided by the Alabama Legislature, HERE. Additionally, below you can find a list of all 35 violations found during the audit:
- The Commission failed to implement policies and procedures that require segregation of duties including reviews and approvals of activities pertaining to the receiving and disbursing of money
- The Commission failed to design and implement controls requiring a sufficient review of bank account and credit card transactions, as a result expenditures were made that were either unallowable or not documented in a manner that allowability could be determined.
- The Commission failed to design and implement controls requiring a sufficient review of payroll transactions and as a result an employee overpaid herself.
- Cash received for sales was missing and not deposited to the bank accounts of the Commission.
- The Commission failed to dispose of nonconsumable personal property properly.
- Commission money was improperly deposited into the personal account of a Commission member.
- The Commission failed to design and implement controls to ensure all public funds and property were handled by the Commission and not its related foundation, and that all property or proceeds from the sale of such rightfully owned by the Commission were accounted for after sale.
- The Commission failed to maintain a listing of historic vehicles and memorabilia in its possession.
- The Commission did not maintain an updated list of nonconsumable personal property owned by the Commission and other information related to the property as required.
- The Commission failed to design and implement controls requiring contracts involving Commission operations to be approved by a majority of a quorum of Commission members and documented in official meeting minutes prior to execution. In addition, there were no controls in place to ensure the related financial transactions were properly supported.
- The Commission failed to design and implement controls requiring contracts involving Commission operations to be approved by a majority of a quorum of Commission members and documented in official meeting minutes prior to execution. In addition, there were no controls in place to ensure professional service contracts require that items and/or services are documented as having been received prior to making payment.
- The Commission did not obtain and maintain appropriate adequate supporting documentation for certain transactions.
- The Commission did not have proper documentation to verify employees’ rates of pay.
- The Commission paid sales tax to multiple vendors although exempt from taxation in accordance with the Code of Alabama 1975, Section 41-9-474.
- The Commission failed to collect and remit sales tax from gift shop sales in accordance with the Code of Alabama 1975, Section 40-23-2(1).
- The Commission did not keep proper meeting minutes to document all official actions of the Commission.
- The Commission did not have proper controls over cash collected at events.
- The Commission did not have proper controls over cash receipts and deposits
- The Commission did not have proper controls over certain leases and lease payments.
- The Commission did not have proper controls over inventory purchased for resale.
- The Commission did not have proper controls in place to ensure appropriations were properly recorded, tracked, and expended lawfully.
- The Commission’s general ledger was not an appropriate reflection of the Commission’s financial activity.
- The Commission has not complied with certain provisions of Executive Orders issued by the Governor.
- The Commission failed to implement policies and procedures that require the bank accounts to be properly reconciled.
- The Commission did not have proper internal controls over petty cash funds.
- The Commission did not comply with Section 93 of the Constitution of Alabama 2022 by paying expenses of its related foundation.
- The Commission did not ensure the proper bank accounts were held in the Commission’s name in the Security for Alabama Funds Enhancement (SAFE) program.
- The Commission failed to comply with the Code of Alabama 1975, Section 25-1-3, because it did not review the employment status of individuals employed by the Commission.
- The Commission did not have clearly defined policies and procedures relating to payroll and personnel matters
- The Commission failed to comply with the Alabama Open Meetings Act.
- The Commission failed to properly notify the Secretary of State of Commission member vacancies in accordance with the Code of Alabama 1975, Section 36-14-17(c).
- The Commission failed to go through the Chief Procurement Officer for purchases or request delegation of authority as required by the Code of Alabama 1975, Sections 41-4-110 through 41-4-179.
- The Commission did not comply with the Code of Alabama 1975, Title 39, by awarding several public works projects without obtaining sealed bids and adhering to other Title 39 requirements pertaining to advertising and bonding.
- The Commission did not report all expenditures to the Comptroller for inclusion in the state expenditures database in accordance with the Code of Alabama 1975, Section 41-4-65.
- The Commission failed to require and obtain vendor disclosure statements from vendors in accordance with the Code of Alabama 1975, Sections 41-16-82 and 41-16-85
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