Ex-director of music hall must pay back $64,719

TUSCUMBIA — The state Department of Examiners of Public Accounts has ordered the former executive director of the Alabama Music Hall of Fall to repay $64,719 for expenditures that did not include sufficient documentation.

An audit conducted by the state agency was released Friday. It cites numerous instances of noncompliance with state laws and regulations by former AMHOF Executive Director Sandra Killen and the seven- member board.

The board placed Killen on unpaid administrative on March 6.

The audit findings originally ordered Killen to repay $114,637, but after a meeting between Killen and the auditors, the amount was reduced by $49,917, the report states.

“The amount of unrelieved charges totaling $64,719.98 remain due and unpaid and, as a result, the report will be certified to the office of the attorney general for collection,” the report states.

“I am of the opinion that the executive director has provided evidence to constitute just cause for partial relief of the charges in the amount of $49,917,” Chief Examiner Rachel Laurie Riddle stated in an order contained in the audit. “The executive director failed to show just cause why the remaining charges in the amount of $64,719 should not be paid. Therefore, relief is denied for $64,179 of the charges.”

On the advice of her attorney, Killen would not comment on the findings.

Board Chairwoman Judy Hood issued a statement Friday.

“The Alabama Music Hall of Fame Board of Directors is committed to addressing all issues identified in the audit and is scheduled to meet on May 28 to begin that process,” Hood said. “As part of its response, the board also plans to seek legal guidance and representation from the attorney general’s office to help ensure these matters are resolved promptly and appropriately.”

The audit states that “a review of the board’s expenditures for fiscal years 2023 and 2024 revealed 334 bank transactions totaling $76,731.19, and 242 credit card transactions totaling $36,706.18 for which there was no documentation provided, the transaction appeared to be unallowable, or the documentation provided was not sufficient to determine whether the board had expended funds for an allowable purpose.”

Examples of the deficiencies include:

• Expenditures totaling $14,709 were made to restaurants and eateries for which inadequate or no documentation was provided to support the eligibility and purpose of the expenditures.

• Expenditures of $38,766.16 were made to individuals described as musicians or labors for which adequate documentation was not provided.

• Expenditures totaling $12,286.06 were made to instate hotels without documentation to determine if the amount was allowable under state law or without invoices being provided to support the payment.

• Expenditures totaling $43,982.81 were made to other vendors for which inadequate or no supporting documentation was provided to support either the eligibility or public purpose of the expenditures, which included “flower delivery, clothes, concert and theater tickets, gifts for employees of the Alabama Music Hall of Fame Board, donations to local entities and a massage.”

The audit also called out the board members for deficiencies of their own.

• The board failed to update information about the board on the Secretary of State’s website and failed to notify the Secretary of State of board vacancies in accordance with the Code of Alabama.

• The board failed to notify the Secretary of State of upcoming board meetings, held virtual meetings without the necessary requirements, and failed to ensure minutes were signed as required by the Code of Alabama. The audit states those issues initially occurred in 2013.

• The board failed to meet quarterly as required and two members of the board do not meet the requirements of their appointed seats in accordance with the Code of Alabama.

• Donations and/or sponsorships to local schools, youth sports leagues or other local entities were made without board approval.

• The entity (AMHOF) failed to maintain a listing of artifacts and memorabilia in its possession and failed to ensure the items were protected by insurance coverage.

• The entity failed to submit Records Disposition Authority Reports in accordance with requirements, and destroyed records that were not obsolete and did not qualify to be destroyed according to the Records Disposition Authority.

Another deficiency cited in the audit involves $600 longevity payments to employees who have been with the hall of fame for at least five years.

One employee who had worked for the AMHOF for more than five years did not receive the $600 longevity payment while an employee was paid $600 for two years without accumulating five years active state service, resulting in a $1,200 overpayment.