Finding Text
Criteria: Per review of loan agreement, the Academy is required to set aside funds monthly until an amount of $619,824 is set aside in a Reserve Account. Condition: The Academy does not have sufficient funds in the Reserve Account in accordance with the loan agreement. Context: The Academy did not transfer funds during the year as required in the loan agreement. Effect: As of June 30, 2025, the Academy should have had $402,886 set aside in a Reserve Account. The actual balance as of June 30, 2025 was $341,338. Cause: Management oversight. Recommendation: We recommend the Academy implement effective controls to ensure compliance with the loan agreement. Views of Responsible Officials and Planned Corrective Action: We concur. The Academy will implement a process to ensure reserve deposits are made timely..