According to a report from the Alabama Department of Examiners of Public Accounts, a new state audit is offering a detailed look at internal breakdowns within the organizations that oversees the U.S. Space & Rocket Center.
The report outloned a series of compliance failures tied to financial oversight, construction practices, and use of public funds.
The audit examined the Space Science Exhibit Commission and the Space Science Exhibit Finance Authority from October 2022 through September 2024, identifying seven separate findings tied to violations of state law and internal control weaknesses.
While state audits often highlight isolated issues, the breadth of findings in this report spans multiple operational areas, from day-to-day recordkeeping to larger capital projects.
According to the audit, the Commission did not maintain accurate records of its equipment and property.
“Items listed as active included property that was salvaged, surplused, scrapped, traded, sold, disposed of, or lost, that were never updated to inactive status.”
The audit also found the Commission failed to collect and remit required sales tax from gift shop transactions.
“The Commission failed to collect and remit sales tax from gift shop sales to the Alabama Department of Revenue.”
Auditors noted the Commission did not maintain sufficient documentation to justify employee meal purchases.
“The Commission did not require or maintain adequate documentation detailing how these meals were directly related to the business of the Commission or that the meals were incidental to a meeting.”
The audit further found the Commission did not follow required procedures through the state’s Division of Construction Management and failed to maintain adequate records of project costs.
“The Commission did not go through DCM and follow the steps in place; therefore, documentation required by DCM could not be provided.”
“The issues noted included numerous code violations, improper construction, noncompliance with the Americans with Disabilities Act (ADA), public safety issues…”
The report further states that total project costs could not be determined due to missing documentation.
The report also states the Commission failed to follow Alabama’s competitive bid law on several purchases.
“The Commission expended $30,346.51 for advertising, $54,384.00 for computer kits, and $55,880.00 for used equipment without the use of competitive bids.”
The audit found that some expenditures lacked sufficient supporting documentation.
“Failure to adequately support disbursements can lead to an increased risk that the possibility of errors or irregularities, including misappropriations and fraud, could occur without being detected.”
Auditors also determined that certain funds were used in ways not permitted under Alabama law.
“The Commission made payments from vending machine revenue to the U. S. Space and Rocket Center Employee Association and donated event revenue to a non-profit organization.”
The report also notes a potential ethics issue involving a former employee.
“The Commission notified us of actions by a former employee that may have been conducted for personal benefit.”
A spokesperson for the U.S. Space & Rocket Center said the organization was aware of some of the issues identified in the audit and had already taken steps to address them.
“We were aware of some of the issues in the report, many of which we had reported to the state,” spokesperson Pat Ammons said. “We have already put measures in place to prevent recurrences of similar issues in the future.”
The Space Science Exhibit Commission oversees the facilities and exhibits tied to the U.S. Space & Rocket Center, a major tourism and education destination in North Alabama.
Sherri Blevins is a reporter for 256 Today.
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