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

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.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Nov 07, 2011
Accession Number
ADA555175

Entities

People

  • Patricia A. Marsh

Organizations

  • Office of the Inspector General, U.S. Department of Defense

Tags

Communities of Interest

  • Space

DTIC Thesaurus Topics

  • Air Force
  • Business Administration
  • Commerce
  • Contracts
  • Department Of Defense
  • Electronic Mail
  • Engineering
  • Financial Management
  • Management Personnel
  • Money
  • Naval Personnel
  • Network Protocols
  • Procurement
  • Schools
  • Students
  • United States
  • United States Naval Academy

Readers

  • Defense Financial Management and Audit.
  • Military Leadership and Professional Education.
  • Military Mobilization and Reserve Forces Studies.