FINANCIAL MANAGEMENT POLICY MANUAL

nonappropriated funds (NAF) will be administered according to sound
financial management practices in an economical, efficient, and businesslike
manner. Although NAF are not authorized and appropriated by the
United States Congress, they should be subject to the same protection as
appropriated funds. Policy on fiduciary responsibility and administrative
control of appropriated funds (APF) is provided in paragraph 073200.
Administrative controls will be established for NAF similar to those
established for APF. These controls shall be administered in a manner
consistent with those established for APF where practicable to prevent
waste, loss, or unauthorized use of NAF.
5. BUDGETS.
a. General.
Budgets are prepared to provide operating managers and commanders
with financial data to be used in management decision-making. The
organizational level reflected in the budgets is determined by program
managers. Such budgets will show separately the total program by
anticipated appropriated and nonappropriated resources. The
budgetary process includes consideration of feasible alternatives when
there are choices as to how program goals and objectives may be
obtained. While budgets may be prepared in formats considered most
appropriate by program managers, the types of budgets required are
outlined in subpars. b, c, and d.
b. Operating Budgets.
Operating budgets are prepared to project income and expense and to
permit comparison and analysis of projected data with actual data.
c. Capital Budgets.
Capital budgets are prepared to show the projections for acquisition,
renovation, and expansion of fixed assets. The source of funding must
be indicated.
d. Cash Budgets.
Cash budgets are prepared to show the existing cash resources,
anticipated cash receipts and disbursements, and to forecast cash
balances on specified dates. Cash budgets must be in alignment with
the operating and capital budgets.
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074726 NORTH ATLANTIC TREATY ORGANIZATION
INFRASTRUCTURE
1. SCOPE.
Financial Management Policy
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