An audit discovered that a former employee of the Tennessee State Museum stole more than $60,000 from taxpayers.
Authorities began investigating the cash shortage in February.
According to investigators, the unnamed administrative assistant used a scheme to falsify 26 invoices totaling nearly $50,000.
Investigators also discovered the employee also used a rental car for more than a year and billed the Tennessee State Museum more than $12,000.
The former employee admitted that she improperly charged the rental fees to the museum after her personal vehicle broke down.
During the investigation, it was determined the administrative assistant was a convicted felon who was on parole for theft of property over $60,000. Museum officials said they were unaware of her conviction when she was hired in April 2011.
She has since been terminated from her position at the Tennessee State Museum.