FINANCIAL MANAGEMENT POLICY MANUAL

occupied and of equipment used. Personnel directly and primarily
involved in resale must be NAF employees.
2. ARMED SERVICES EXCHANGES AND RELATED ACTIVITIES.
Although the exchanges have a high degree of mission essentiality, they
have been placed in Category C because of their significant ability to
generate revenue. In general, exchanges must be completely self-
sustaining. Civil service personnel may not be assigned to exchanges.
However, active duty military personnel are authorized in sufficient
numbers for military exchanges to provide a trained cadre to meet wartime
and deployment requirements, and for provision of security, when not
otherwise available overseas. Custodial and janitorial services must be
provided using NAF. Costs incurred by military exchanges in managing,
distributing, selling and after-sale servicing of military clothing and other
appropriated funded items are reimbursable from appropriated funds.
3. PRIVATE OWNERSHIP.
Privately owned items may not receive financial support from either
appropriated or nonappropriated funds. Private ownership support
includes that provided to privately owned recreational vehicles, boats,
aircraft, or horses that are operated, maintained, moored, or stabled by
MWR activities. Such support will be provided on a reimbursable basis
only.
4. REIMBURSEMENTS.
Appropriated funds may not be used to reimburse a NAFI. This does not
preclude any government activity from contracting with the NAFI for
services, functions, or goods that the NAFI is in a unique position to
provide, (e.g., catering an official event), or when there are organizational
or functional reasons which make it impractical for the required services,
functions, or goods to be furnished by other than a NAFI. A DD 1155
form or other appropriate contractual document should be used when
contracting with a NAFI.
5. ACTIVITIES OPERATING UNDER NAVY WORKING CAPITAL FUND
PROCEDURES.
MWR activities receive from and provide services to DON Navy Capital
Working Fund (NWCF) activities, which are unrelated to the industrial
mission. These non-industrial functions, primarily common support and
personnel services, are not part of the NWCF cost of operations. Such
work and/or services are financed directly from applicable appropriated or
nonappropriated funds, based on actual costs comparable to Resource
Management System (RMS) practices.
Financial Management Policy
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