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 Post subject: Re: 611 to be Retired?
PostPosted: Tue Jul 09, 2024 9:24 pm 

Joined: Wed Jan 20, 2016 1:15 pm
Posts: 1718
Excellent read - I love how they told the reporter that the meeting was only open to members so they bought a $35 membership! That says it all right there.


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 Post subject: Re: 611 to be Retired?
PostPosted: Wed Jul 10, 2024 9:49 am 

Joined: Sun Aug 22, 2004 5:19 pm
Posts: 2698
Location: Sackets Harbor, NY
Very well written. It raises lots of troubling issues. One of them is that the VMT Board is in discussions with the FRA regarding allegations that the "point man" in charge of seeing to it that the locomotive was in compliance with all FRA regulations failed.

Another interesting " tell " is that all 6 Board members who quit were the ones who were responsible for the highly successful 611 BB excursion program and from the article it's obvious that they got precious little support or thanks from the others.

I'm sure there will be more. Ross Rowland


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 Post subject: Re: 611 to be Retired?
PostPosted: Wed Jul 10, 2024 2:16 pm 

Joined: Sun Aug 22, 2004 1:51 pm
Posts: 11847
Location: Somewhere east of Prescott, AZ along the old Santa Fe "Prescott & Eastern"
Latest from the Roanoke Times/roanoke.com, though behind a paywall:

https://roanoke.com/news/local/governme ... 7b4f6.html

I'll cut down what a mate forwarded to me from this article:

Quote:
Resigned board members are questioning finances at the Virginia Museum of Transportation, and are calling for an audit to clear any smoke from the old train station in Roanoke.

Meanwhile, executives at the museum on Norfolk Avenue say there is no substance to the former board members’ claims, and the derailment is merely a matter of personal disagreement.

Six people on the 17-member museum board of directors resigned during the annual meeting in June. For executive vice president and museum board spokesperson Tom Cox, it was an unexpected turn of events.

*snip*

“In my eyes, you need to have an audit,” Miller said. “It really needs to be undertaken by an outside party.”

Cox said the museum is either audited or reviewed by Anderson & Reed accountants on an annual basis, although it’s been a few years since the last audit.

“Generally we alternate… just because of the expense involved, and the time,” Cox said. “The review, it’s a whole lot more than a cursory examination… The review, as I see it, it stands for itself.”

He said the board at its next meeting will decide whether to conduct a review or a full audit for the fiscal year that ended June 30.

*snip*

Between the six board members’ resignations – read aloud during the annual meeting in June – and hundreds of pages worth of meeting and financial documents provided by the museum to The Roanoke Times on Friday, a lot has come forth in the past week.

“There are discrepancies between the financials provided to the media and the financials obtained by the board,” Miller said. “They may not be major discrepancies, but there are discrepancies.”

Miller showed places where financial numbers allegedly differed, such as with a large order of merchandise placed ahead of the Norfolk & Western J Class 611 steam engine excursions that happened in Goshen last fall. The museum owns the engine and organized the event on the property of its departed president, Will Harris.

Among the 611 merchandise, museum staff ordered roughly 6,000 hats themed to the beloved steam engine, but sold fewer than 1,000 hats during the excursions, according to documents. Miller showed documents where the museum’s cost to purchase each hat varied by almost $6 per piece, depending on which document.

But Cox denies any issue, and says all the numbers add up. The financial situation for nonprofits is a lot more complicated than what shows on a few forms, Cox said.


This is a long and contentious article, but I don't think it covers much that hasn't already been batted about here.


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 Post subject: Re: 611 to be Retired?
PostPosted: Wed Jul 10, 2024 3:53 pm 

Joined: Sun Aug 22, 2004 5:19 pm
Posts: 2698
Location: Sackets Harbor, NY
At the very least it's now obvious that a formal audit of the books will be demanded by the state to answer the questions being raised by some of the directors who resigned.

Another issue that obviously needs to get resolved is the matter of the ongoing discussions with the FRA regarding the " point man's" failure to keep the locomotive in compliance.

More to come for sure. Ross Rowland


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 Post subject: Re: 611 to be Retired?
PostPosted: Wed Jul 10, 2024 6:49 pm 

Joined: Sun Aug 22, 2004 7:25 pm
Posts: 2472
Location: The Atlantic Coast Line
wesp wrote:
Here’s a different opinion on this story.

I’ve been a board chair three times in my volunteer life.

If I am president of a non profit board, joined by five of my colleagues with concerns listed here, I’d be holding an executive session with the board and the staff and taking steps to correct the underlying issues.

Wesley


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 Post subject: Re: 611 to be Retired?
PostPosted: Wed Jul 10, 2024 11:03 pm 

Joined: Wed Mar 23, 2022 11:00 pm
Posts: 179
Another new member for the board. He has 20 years in rail equipment restoration and has worked as a short line railroader, plus he has been a VMT volunteer since 2015

https://www.facebook.com/share/p/vnkNKY3vYn7Pr52s/


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 Post subject: Re: 611 to be Retired?
PostPosted: Thu Jul 11, 2024 12:30 am 

Joined: Fri Mar 26, 2010 11:43 am
Posts: 777
First question...where are 5000 hats in boxes. Answer that question and the other questions might start answering themselves.

As for $6 difference, that's nothing...plain mass made cheap engineer hats are significantly cheaper then custom made hats...


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 Post subject: Re: 611 to be Retired?
PostPosted: Thu Jul 11, 2024 8:18 am 

Joined: Thu Jan 26, 2012 2:04 pm
Posts: 68
When there is an expenditure past a certain amount of funding it usually requires Board approval. 60k for hats and other items seems to be a large expenditure without the Board permitting it. Was there a position paper to the Board on this expenditure? And who made that decision? A forensic audit of what remains of those wares would also help.

I posted earlier about a business plan or lack thereof. From the outside looking in, it appears there was no business plan, at least none published. This would explain the disappearing engine house project which donors paid into and many other "wouldn't it be nice" concepts that Bev Fitzpatrick and others hawked.

It will be interesting to see further reporting from the Roanoke Times and the ABC affiliate on all of this.

In light of the optics surrounding VMT, Lawmakers in Virginia would have a difficult time granting State Agency Status to the museum.Or, they could just bail them out and grant it.


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 Post subject: Re: 611 to be Retired?
PostPosted: Thu Jul 11, 2024 8:34 am 

Joined: Thu May 24, 2012 1:37 pm
Posts: 2492
Anderson & Reed is a CPA firm. I cannot imagine that much of what would be involved in an 'audit' on a yearly basis would not have been done as 'due diligence' ... let alone as fundamentally ignored as the situation would indicate. I'd be particularly interested in superheater's perspective and opinions on this part of the 'situation'.

While I think a formal audit is in order, it ought to be possible to determine some of the more obvious 'holes' -- for example, precisely how the 'fraudulent wire transfer' occurred, and what has been done on the record to prevent recurrence -- without serious expenditure. I think the question of whether that information, provided in confidence to the State, would be sufficient to "grant State Agency status" would be up to the relevant State agencies to determine.

_________________
R.M.Ellsworth


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 Post subject: Re: 611 to be Retired?
PostPosted: Thu Jul 11, 2024 10:58 am 

Joined: Sun Aug 22, 2004 5:19 pm
Posts: 2698
Location: Sackets Harbor, NY
Common sense would surely indicate that all this negative in-fighting will certainly dim any chance they might have had to become a state agency.

The fact that there is serious questions about how some of the previous state grant monies were spent is alone enough to cause the politico types to run for the exits.

Sad but true. Ross Rowland


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 Post subject: Re: 611 to be Retired?
PostPosted: Thu Jul 11, 2024 11:03 am 

Joined: Wed Jan 20, 2016 1:15 pm
Posts: 1718
Sounds like some of state money was invested, which is not permitted, and they have to return money to a former NS President - guessing that is because of the engine house?


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 Post subject: Re: 611 to be Retired?
PostPosted: Thu Jul 11, 2024 11:34 am 

Joined: Sun Aug 22, 2004 5:55 pm
Posts: 1077
Location: Warren, PA
An observation - but one I don't like to see - is that the Virginia Scenic Railway is still promoting 611 excursions on their web page with no current status update or YEAR mentioned as to when the excursions were announced or available- but clearly 2023 in the header, not 2024's schedule. And the 'buy tickets' button takes you to a page that does not explicitly state that it's not for 611, just the regular diesel-powered excursions.

Feel free to check this out and comment yourself, but considering how, well, uneducated, a lot of consumers are, this just seems borderline misleading. We are following it closely due to our interests here but the ability to just 'buy tickets' online without human interaction has potential for misunderstanding to the population at large.

I remember the grumping about running it on Strasburg, I found that actually a pretty decent experience, considering I never thought I'd see it run again after the 21st Century Steam program ended on NS. I'm glad I made the trip then when I could, which is the moral of the story for almost all steam operations today.


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 Post subject: Re: 611 to be Retired?
PostPosted: Thu Jul 11, 2024 11:46 am 

Joined: Wed Jan 20, 2016 1:15 pm
Posts: 1718
Randy, where are you seeing that? The page I see is very clear “this trip is not scheduled for 2024” when you click “see all routes” it takes you to the other trips.

Nothing about this appears to be misleading at all.


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 Post subject: Re: 611 to be Retired?
PostPosted: Thu Jul 11, 2024 1:48 pm 

Joined: Sun Aug 22, 2004 5:55 pm
Posts: 1077
Location: Warren, PA
Going from here:

https://www.virginiascenicrailway.com/6 ... -virginia/

Which clearly states beginning in 2023... but that's all.

Directly to the 'buy tickets' button...

(which takes you directly into the 'Blue Ridge Flyer' calendar)

which is the normal diesel excursion. I know that, but..

No date disclaimer on the 611 page, and having a 'buy tickets' button there.... I'm not saying it's deliberate design, just a 'whoops....'.

Back in my IT days we referred to this as 'chimp testing' to randomly hit buttons and methods to see if we could find black holes or crashes...


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 Post subject: Re: 611 to be Retired?
PostPosted: Thu Jul 11, 2024 1:55 pm 

Joined: Wed Jan 20, 2016 1:15 pm
Posts: 1718
Oh I see, that’s from “In the News” and was the press release from last year. If you click on “Shenandoah Limited” it clearly says “not operating for the 2024 season.”


This definitely isn’t intentionally misleading, it’s just an old press release but it would be a good idea for them to update the press release with the “not operating for 2024”


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