Audit: Naval Academy wasted $3.5M on contract

By BRIAN WITTE | November 10, 2011 | 5:55 PM EST

ANNAPOLIS, Md. (AP) — An audit by the Pentagon's inspector general finds the U.S. Naval Academy improperly contracted for the production of a short film and TV commercials and wasted about $3.5 million on the contract.

The audit released Thursday also says the academy accepted gifts without proper authorization and inappropriately took in $343,208 in corporate sponsorships. The audit also found the academy accepted monetary gifts without reviewing to see if the gifts came from prohibited sources.

The audit was a follow up to a 2009 audit by the Navy's inspector general's office.

Cmdr. William Marks, a spokesman for the academy, says the military college has been addressing the concerns raised in the initial report. Marks says academy officials are confident procedures have been put in place to avoid future discrepancies.