Accession Number:

ADA555175

Title:

U.S. Naval Academy Officials Did Not Adhere to Contracting and Gift Policies

Descriptive Note:

Audit rept.

Corporate Author:

INSPECTOR GENERAL DEPT OF DEFENSE ARLINGTON VA

Personal Author(s):

Report Date:

2011-11-07

Pagination or Media Count:

61.0

Abstract:

We determined whether the U.S. Naval Academy USNA and its supporting organizations were properly disbursing, recording, accepting, and reporting donations, gifts, and nonappropriated funds NAPs. From January 1 through December 31, 2010, USNA received 381 monetary gifts, totaling 5.7 million, and 153 in-kind gift donations, valued at 25.1 million. USNA officials did not have adequate processes for disbursing, recording, accepting, and reporting gifts and NAPs. Specifically, the Naval Academy Business Services Division NABSD Director improperly contracted for a short motion picture and television commercials. This occurred because the USNA Deputy for Finance Deputy did not provide proper oversight of the contract and NABSD did not have a contracting officer. As a result, the NABSD Director wasted about 3.5 million. USNA may have augmented its budget by 3.5 million and may have committed a potential Antideficiency Act violation. The USNA Museum Director did not properly record all of its in-kind gifts into its inventory system and never conducted a complete inventory. This occurred because Museum officials did not have policies and procedures in place for recording in-kind gifts. As a result, inventory was vulnerable to loss and theft. The Deputy accepted over 184,000 of in-kind gifts from an alumnus without obtaining the proper authorization and failed to inventory the gifts. This occurred because he bypassed the Navy gift receipt process. The acceptance gives the appearance of impropriety, and failing to inventory increases the risk of loss or theft. The NABSD Director inappropriately accepted 343,208 in corporate sponsorship funds. This occurred because the Deputy did not provide adequate oversight. As a result, the NABSD Director retained unauthorized funds. Also, the Deputy and USNA Comptroller did not review USNA Foundation monetary gifts to determine whether they were received from prohibited sources.

Subject Categories:

  • Administration and Management
  • Economics and Cost Analysis
  • Humanities and History

Distribution Statement:

APPROVED FOR PUBLIC RELEASE