FINANCIAL MANAGEMENT POLICY MANUAL

Section II:
BUDGET POLICY FOR OPERATIONS
075520 GENERAL
The classification of an MWR activity as Mission Sustaining (Category A),
Basic Community Support (Category B) or Business (Category C) generally
governs applicability of appropriated fund (APF) and nonappropriated fund
(NAF) support. In general, Category A and Category B activities depend
largely on appropriated funds, with nonappropriated funds used as a
supplement to maintain operations when necessary. Category C activities are
primarily dependent on nonappropriated funds to sustain operations. All costs
directly related to the sale of merchandise or services and to the internal
management (e.g., NAF financial management, NAF personnel management,
NAF forms, NAF payroll documents and time clocks/sheets) of NAFIs should
be financed using nonappropriated funds, regardless of category of activity.
Both appropriated and nonappropriated funds required to support military
MWR programs must be identified in annual budgets.
(Change 57)
075521 DIRECT OPERATING COSTS
1. OPERATIONS OF CATEGORY A (MISSION SUSTAINING) ACTIVITIES.
Category A activities are generally financed with appropriated funds
(APF). Nonappropriated funds (NAF) may be used to supplement
appropriated funds and must be used for the following:
a. costs associated with NAF employees assigned to Category A
activities;
b. costs incurred related to the sale of goods and services; and
c. costs related to the internal management of NAFIs.
2. OPERATIONS OF CATEGORY B (BASIC COMMUNITY SUPPORT)
ACTIVITIES.
Category B Activities are also generally financed with appropriated funds.
Nonappropriated funds may be used to supplement appropriated funds and
must be used for the following:
a. costs associated with NAF employees assigned to Category B
activities;
b. costs incurred related to the sale of goods and services;
c. costs related to the internal management of NAFIs; and
d. royalty payments for music and theater.
Financial Management Policy
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