Naval Academy Athletic Association

The Naval Academy Athletic Association is a private, nonprofit, voluntary association. In contrast to athletic associations at other service academies, which are nonappropriated fund activities of the federal government, the Naval Academy Athletic Association is not under the direct jurisdiction of either the Academy or the Navy. This report discusses (1) the Association's organizational status and the Naval Academy's control over it and (2) financial benefits realized by the Academy from the Association's 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.