FINANCIAL MANAGEMENT POLICY MANUAL

to prevent waste, loss and unauthorized use. There are penalties
for misuse of APF and NAF funds. Violations by personnel
subject to the Uniform Code of Military Justice are punishable
under Section 892, Article 92.
d. APF may be used through USA procedures to support an MWR
nonappropriated fund instrumentality (NAFI) for NAF
expenditures if the original transaction was an appropriate APF
charge, unless specifically prohibited by law or regulation.
Commanding Officers are accountable for the implementation of
the USA practice, which requires that the APF support must be
obligated prior to the NAF expenditure.
4. PROCEDURES
a. A Memorandum of Agreement (MOA) established between the
MWR Director, the Base Comptroller, and the Commanding
Officer will outline the MWR services that are eligible for APF
support that will be funded using the USA practice. (See
paragraph 5b for further discussion of the MOA.)
b. All APF for base operations support, to include that provided
through the USA practice, will continue to be included in APF
budget exhibits, installation accounting records, and financial
reports.
c. APF provided to the MWR NAFI through the USA practice will
not exceed the actual cost of providing the services. For example,
APF support provided for equipment purchased, as identified in the
MOA, will be limited to the actual cost of the equipment and will
not include any overhead or administrative costs.
i. APF must be used for a bona fide need of the current fiscal
year, and must be obligated prior to the NAF expenditure.
The USA practice cannot be used to extend the availability
of the APF.
ii. The USA practice shall not be used to circumvent
regulations concerning the timely obligation of funds.
Therefore, during the last two months of the fiscal year,
funds provided through the USA practice are limited to no
more than 20 percent of either the total annual APF
obligations supporting the NAFI or the budgeted USA
practice support, whichever is less.
d. Funds provided through the USA practice shall not be used to
circumvent prohibited uses of either APF or NAF. That is, the
initial expenditure of NAF must relate to the MWR mission and, to
Financial Management Policy
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