Finding Text
Criteria: Per review of loan agreement, the Academy is required to set aside funds monthly until an amount of
$619,824 is accumulated 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 does not have a Reserve Account as required by the loan agreement.
Effect: As of June 30, 2022, the Academy should have had $216,938 set aside in a Reserve Account.
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 create a
Reserve Account to be in compliance with the loan agreement.