The U.S. Naval Academy wasted $3.5 million by improperly contracting for the production of a short film and six commercials, according to an audit by the Defense Department’s inspector general’s office released Thursday, the Associated Press reports. The military college also wrongly accepted more than $184,000 in gifts such as wine and fancy crystal from an alumnus between 2005 and 2007, as well as $343,208 in corporate sponsorship funds, the audit found. The audit says the academy may have circumvented Congress by using non-appropriated funds for the film and commercial contract, and that it needed a better system for making sure that monetary gifts didn’t come from prohibited sources such as entities doing business with the Navy…