FINANCIAL MANAGEMENT POLICY MANUAL

applicable to MWR activities. The Chief of Naval Operations (CNO) and the
Commandant of the Marine Corps (CMC) are responsible for detailed policy
and coordination of MWR programs within their respective Services. Further,
within the Navy, the Chief of Naval Personnel (CHNAVPERS) acts as an
agent for the CNO and the Commander, Naval Supply Systems Command has
been assigned technical management responsibility for the Navy Exchange
System (including temporary lodging facilities). Within the Marine Corps,
MWR program responsibility has been assigned to the Morale, Welfare, and
Recreation Support Activity (CMC(MW)).
(Change 57)
075511 DEFINITIONS
1. NONAPPROPRIATED FUNDS (NAFs).
Nonappropriated funds consist of cash and other assets received by NAFIs
from sources other than monies appropriated by Congress. They are to be
used for the collective benefit of military personnel, their dependents, and
authorized civilians who generated them. While they are considered
government funds, they are separate and apart from funds which are
recorded in the books of the United States Treasury.
2. NONAPPROPRIATED FUND INSTRUMENTALITY (NAFI).
A NAFI is an organizational entity that performs a government function.
It acts in its own name to provide or to assist other DoD organizations in
providing MWR programs. As a fiscal entity, it maintains custody of and
control over its nonappropriated funds. NAFIs may be established for
each MWR activity or for larger segments of a program via the "single
fund" concept. NAFI contracts are U.S. Government contracts; however,
they do not obligate appropriated funds of the United States. Policies
governing NAFIs are contained in SECNAVINST 5401.2. NAF and
NAFI also apply to certain resale activities and other authorized
organizations designated as morale support activities which operate
independently from MWR programs/activities.
3. NONAPPROPRIATED FUND INSTRUMENTALITY (NAFI) EMPLOYEE.
NAFI employees are persons employed by a NAFI and compensated from
nonappropriated funds. While considered government employees, NAFI
employees are governed by different laws and regulations than are civil
service employees.
4. MWR FACILITY.
An MWR facility is a building, structure, land area, or other real property
used for MWR purposes.
Financial Management Policy
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