The Virginia Museum of Transportation, a prominent attraction in Roanoke, Virginia, has recently concluded a four-month internal investigation into its financial practices, aiming to dispel concerns raised by former board members regarding the museum’s expenditure of funds.
According to museum officials, the investigation, conducted by the law firm Gentry Locke Attorneys, determined that allegations of financial mismanagement were “unfounded.” Accountants from Yount, Hyde, and Barbour, who were also engaged as part of the review, concluded that the Virginia Museum of Transportation “had appropriately complied with its own internal procedures, had properly utilized and accounted for all grant funds, and is generally in a healthy position financially.”
Virginia Museum of Transportation Roanoke exterior building
Ken Lanford, the current board president, affirmed the findings at a recent meeting, stating, “We are doing the right thing here, and money’s getting spent the way it should be.” The internal inquiry was initiated after six board members resigned in June, some expressing apprehension about the financial stability and overall direction of the Virginia Museum of Transportation. A key point of contention among board members was decisions surrounding the excursion of the celebrated Norfolk & Western J-Class No. 611 steam locomotive in the previous fall. Furthermore, some departing members voiced concerns about the allocation of a $500,000 state grant intended for building and exhibit enhancements.
John Danyluk, the attorney from Gentry Locke leading the investigation, detailed in an October letter to the museum board that his firm had meticulously reviewed a range of financial documents. This included bank statements, balance sheets, and meeting minutes to comprehensively assess the museum’s financial dealings. “After thoroughly reviewing all of this documentation, Investigators determined that there were no identifiable issues or concerns with respect to VMT’s handling, spending, or accounting of state grant funds,” Danyluk stated in his letter.
To further bolster the investigation’s credibility, Gentry Locke enlisted the accounting expertise of Winchester-based firm Yount, Hyde, and Barbour (YHB) to conduct a financial review. YHB’s subsequent report, spanning five pages, corroborated the museum’s financial practices. It confirmed that the Virginia Museum of Transportation had appropriately spent and meticulously documented 78 expenditures from the state grant, totaling $175,812 by June 30. These funds were strategically allocated towards enhancing museum exhibits, undertaking essential electrical and plumbing upgrades, and supporting educational programs.
The accounting report also highlighted the museum’s robust financial position, indicating cash and investments totaling $1.4 million by the end of June. This substantial reserve was deemed sufficient to cover the remaining grant expenditures of $324,188, which, according to the Virginia Department of Historic Resources, are required to be spent by the close of the year.
Tom Cox, executive vice president of the board, addressed the situation at a November meeting, acknowledging both support and skepticism. “We appreciate the faith that has been given to us by many. There are many who have not had faith,” Cox remarked. He emphasized the importance of facts for objective assessment, while acknowledging that some individuals might persist in preconceived narratives despite the evidence.
However, some former board members who resigned remain unconvinced by the internal investigation’s findings. Will Ardis, one of the former members, expressed cautious skepticism in an email, stating, “It’s encouraging to see the VMT attempt to clean things up, but it feels like a reaction to controversy, not a true move forward.” Ardis suggested that a financial audit conducted by an entirely external entity would have been more reassuring than a review by a law firm with prior ties to the museum. “While I by no means wish to question the integrity or ability of the organization they used, I believe a true outside source with less prior and future financial incentives may have inspired more confidence,” Ardis elaborated.
Gavin Miller, another former board member, echoed this sentiment, deeming the investigation inadequate and advocating for “a full and independent audit” overseen by an impartial body such as the city or state.
Cox disclosed that the museum incurred costs “in excess of $20,000” for Gentry Locke’s investigation. He expressed the board’s dismay at the mass resignations, but noted that the six vacant positions have since been filled, allowing the Virginia Museum of Transportation to move forward.
Historic steam train N&W 611 Virginia Museum of Transportation Roanoke
The backdrop to these financial concerns includes the popular excursions of the historic steam locomotive No. 611. Several of the resigned board members had invested considerable time and resources into launching these passenger trips in the previous fall. They reportedly felt that other board members and museum leadership underestimated the financial success of these excursions. Over five weekends in October and November, more than 20,000 passengers journeyed aboard the famed 611 from Goshen in Rockbridge County.
Despite the initial success, plans for further excursions in subsequent years were abandoned, a decision that contributed to the internal disputes. Current board members characterized this decision as a costly surprise, while former members defended it as a responsible choice made with broader consensus, including input from Norfolk Southern.
Cox also mentioned that an official from the Federal Railroad Administration (FRA) met with museum leaders in July to address concerns about the 611. According to Cox, the FRA official confirmed that “no exceptions were found,” affirming that the locomotive met all operational standards.
Looking ahead, Cox emphasized the museum’s forward momentum, especially as it pursues becoming an official state agency. A state feasibility study regarding this transition is expected this month. “When people make an allegation that there’s financial malfeasance, there’s nothing else you can do but conduct an independent investigation,” Cox stated, underscoring the necessity of addressing the allegations directly. He acknowledged differing opinions and issues are inherent in any organization, but reiterated that the investigation found no evidence of missing or misappropriated funds.
It’s noteworthy that amidst these events, the law firm Gentry Locke, representing the Virginia Museum of Transportation, sent a “cease-and-desist” letter to The Roanoke Rambler in July, cautioning against publishing further concerns from former board members. While acknowledging the accuracy of the publication’s reporting of former board members’ statements, the letter argued that the overall impression conveyed was misleading and potentially defamatory, particularly concerning the management of state grant funds. Interestingly, ten days after this legal action, Gentry Locke engaged YHB to conduct the financial review. YHB, in their report, affirmed their independence and adherence to ethical standards in their engagement with the Virginia Museum of Transportation.
