Model not found in context; job

Product:
Cognos Controller 85

Symptom:
Error message in Cognos Controller 8.5 when you try to access menu Maintain – Jobs – Define.
(This menu is only available when you use a Cognos Controller database in the New Consolidation Engine mode. You can test with a new empty controller database)

Problem:
Model not found in context; job
Unable to find instance of model of type: job, ttype interface com.cognos.ccr.models.job.JobModel (load=LAST)
Exceptionid=ERR.ANY.WEBSERVICECONNECTIONEXCEPTION.CANNOT_EXECUTE_SERVICE, argument(s)=[http://server.domain.com/cognos8/controllerserver/ccrws.asmx,
010:2e850961-51f1-11df-b404-d5d34bef5812:0650936176]
FAIL: Message: Permission denied source: FrJavaProxyB

Cause:
The Cognos service IBM Cognos Controller Java Proxy is run as local system on the controller application server.

Solution:
Change the IBM Cognos Controller Java Proxy service to run as the same windows account used by the Cognos Controller COM+ service.