Naval Academy Athletic Association:

Organizational Status, Financial Operations, and Oversight

NSIAD-91-291: Published: Sep 24, 1991. Publicly Released: Oct 9, 1991.

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Pursuant to a congressional request, GAO provided information on the Naval Academy Athletic Association (NAAA), a private, nonprofit, voluntary association that provides funds for the Naval Academy's intercollegiate athletic program and operates a gift shop and a tour-guide service at the academy, focusing on: (1) NAAA organizational status and the Naval Academy's control over it; and (2) financial benefits realized by the Naval Academy from NAAA operations.

GAO found that: (1) although NAAA is not under the direct control of the academy, the NAAA constitution, an operating agreement, and a licensing arrangement establish a relationship that allows the academy to exercise extensive control over almost all NAAA activities; (2) a six-member Board of Control, comprised of both academy and NAAA officials, advises the Academy Superintendent on matters relating to the athletic program and reviews NAAA financial operations; (3) the Director of Athletics also serves as the NAAA President and supervises and coordinates midshipmens' participation in intercollegiate athletic events; (4) the Director of Athletics is paid by NAAA and receives no compensation from the government; (5) NAAA surplus revenues provide financial support either to fund the academy's intercollegiate athletic program or to help pay the student body's travel expenses to various athletic events; and (6) in 1989, NAAA athletic-related activities realized surplus revenues of about $151,000, while its other activities realized a surplus of around $420,000, and for fiscal year 1990, the athletic program generated $456,373, and the other activities generated about $500,000.