AR 215-1 - Soldier Support Institute - U.S. Army

Army Regulation 215–1 

Morale, Welfare, and Recreation 

Military Morale, 

Welfare, and 

Recreation 

Programs and 

Nonappropriated 

Fund 

Instrumentalities 

Rapid Action Revision (RAR) Issue Date: 6 October 2008 

Headquarters 

Department of the Army 

Washington, DC 

31 July 2007 

UNCLASSIFIED

Contents—Continued 

Budget revisions • 16–15, page 122 

Section V 

Nonappropriated Fund Instrumentality/Entity Banking and Investments, page 122 

Concept • 16–16, page 122 

Cash on hand • 16–17, page 122 

Local banking • 16–18, page 122 

Uninsured deposits • 16–19, page 124 

Reporting of local bank deposits • 16–20, page 125 

Central banking • 16–21, page 125 

Army Banking and Investment Fund investments • 16–22, page 125 

Army Recreation Machine Program • 16–23, page 126 

Section VI 

Reports, page 126 

Introduction • 16–24, page 126 

Applicability • 16–25, page 126 

Requirements • 16–26, page 126 

Appropriated fund accounting manual • 16–27, page 127 

Integrated Facilities System • 16–28, page 127 

Consolidated execution report • 16–29, page 127 

Nonappropriated fund reports • 16–30, page 129 

Personnel Strength Report • 16–31, page 129 

Employees’ Compensation and Benefits Report • 16–32, page 131 

Chapter 17 

Property Management, page 131 

Section I 

Separate Record-keeping, page 131 

Commingling • 17–1, page 131 

Appropriated and nonappropriated funds property management • 17–2, page 131 

Section II 

Appropriated Funds Property, page 131 

Guidelines • 17–3, page 131 

Issue and receipt of property • 17–4, page 132 

Section III 

NAF Property, page 132 

Controls • 17–5, page 132 

Issue and receipt of property • 17–6, page 132 

Acquisition and property records • 17–7, page 132 

Nonavailability of appropriated fund property • 17–8, page 133 

Property transferred to the Government • 17–9, page 133 

Loans of property • 17–10, page 133 

Property management functions • 17–11, page 133 

Receiving procedures • 17–12, page 133 

Inventories • 17–13, page 134 

Losses • 17–14, page 134 

Disposition of property • 17–15, page 134 

Section IV 

Other dispositions, page 135 

Recycling • 17–16, page 135 

Abandoned personal property • 17–17, page 135 

AR 215–1 • 31 July 2007 

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Precious metals • 17–18, page 136 

Auto skill unique items • 17–19, page 136 

Firearms and ammunition • 17–20, page 136 

Salvage • 17–21, page 136 

Calibration • 17–22, page 136 

Chapter 18 

Audits, Reviews, Inspections, Investigations, and Management Controls, page 136 

Audits and reviews • 18–1, page 136 

Inspections • 18–2, page 137 

Investigations • 18–3, page 137 

Key management controls • 18–4, page 138 

Chapter 19 

The U.S. Army NAF Risk Management Program, page 138 

Section I 

Introduction, page 138 

General • 19–1, page 138 


Administration • 19–3, page 138 

Section II 

The Risk Management Program, page 139 

Policy • 19–4, page 139 

Insurance programs • 19–5, page 139 

Review of insured exposures • 19–6, page 139 

Loss and accident prevention • 19–7, page 140 

Foreign insurance coverages • 19–8, page 140 

Insurance requirements for concessionaires and contractors • 19–9, page 140 

Claims against users • 19–10, page 140 

Section III 

Financial Requirements, page 140 

Premiums • 19–11, page 140 

Funding • 19–12, page 141 

Section IV 

Tort Program, page 141 

Tort claims and approval procedures • 19–13, page 141 

Tort claims • 19–14, page 142 

Investigation of claims: fund manager’s/entity administrator’s role • 19–15, page 142 

Claims by employees • 19–16, page 143 

Contract claims • 19–17, page 143 

Payment of claims • 19–18, page 143 

Section V 

Claims Against Family Child Care Providers, page 143 

Establishment of Family child care Tort Claims Program activities • 19–19, page 143 

Claims • 19–20, page 143 

Reporting requirements • 19–21, page 143 

Private insurance • 19–22, page 143 

Section VI 

Property Program, page 144 

Property program coverage • 19–23, page 144 

x AR 215–1 • 31 July 2007


Valuation of assets • 19–24, page 144 

Exclusions • 19–25, page 144 

Property claims • 19–26, page 145 

Section VII 

Buildings and Contents, page 148 

Coverage • 19–27, page 148 

Building requirements • 19–28, page 148 

Buildings insured • 19–29, page 149 

Insurance for buildings, improvements, and betterments • 19–30, page 149 

Building valuations • 19–31, page 149 

Insured contents • 19–32, page 150 

Contents valuation • 19–33, page 150 

Perils insured • 19–34, page 150 

Perils excluded • 19–35, page 150 

Claims • 19–36, page 151 

Limits of liability • 19–37, page 151 

Section VIII 

Other Exposures, page 151 

Docks, wharves, and piers • 19–38, page 151 

Watercraft • 19–39, page 152 

Recreational animals • 19–40, page 152 

Other insurance • 19–41, page 152 

Special events insurance • 19–42, page 152 

Section IX 

Information Systems, page 152 

Property covered • 19–43, page 152 

Property excluded • 19–44, page 153 



Limit of liability • 19–47, page 153 

Deductible • 19–48, page 154 

Section X 

Vehicles, page 154 

Types of vehicles • 19–49, page 154 

Vehicles insured • 19–50, page 154 




Section XI 

Aircraft Hull, page 155 

Types of aircraft covered • 19–54, page 155 


Application • 19–56, page 155 

Valuation • 19–57, page 155 



Property excluded • 19–60, page 155 

Claims procedures • 19–61, page 155 

Deductible • 19–62, page 156 


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Section XII 

Fidelity Bonds, page 156 

Applicable protection • 19–63, page 156 






Section XIII 

Money and Securities, page 157 

Money, securities, and collateral damage • 19–69, page 157 




Section XIV 

Cargo Shipment Program, page 157 





Application procedures • 19–77, page 158 


Section XV 

Workers’ Compensation, page 159 

Recipients • 19–79, page 159 

Authority • 19–80, page 159 



Benefits • 19–83, page 160 

First reports by employees • 19–84, page 161 

First reports by employers • 19–85, page 161 


Use of military medical facilities • 19–87, page 162 

Modified Duty/Return to Work Program • 19–88, page 162 

Coverage for Korean Nationals • 19–89, page 163 

Coverage for other foreign nationals • 19–90, page 163 

Section XVI 

Unemployment Compensation, page 163 

Administration • 19–91, page 163 

Verification of benefit costs • 19–92, page 163 

Assessment of costs to nonappropriated fund instrumentalities/entities • 19–93, page 163 

Appendixes 

A. References, page 164 

B. Morale, Welfare, and Recreation Board of Directors, page 180 

C. Tip Allocation/Reporting Requirements, page 181 

D. Appropriated Fund and Nonappropriated Fund Funding Authorizations, page 183 

E. Construction Funding for Nonappropriated Fund Instrumentalities Facilities, page 192 

F. Standard Nonappropriated Fund Number, page 194 

G. Cash Inventory and Retail Sales Accountability (Controls and Procedures), page 195 

xii AR 215–1 • 31 July 2007


H. Copyright Clearance Procedures, page 200 

I. Tour Directors, Guides, and Escorts, page 202 

J. Army Flying Activities, page 203 

K. Awards Program, page 213 

L. Golf Course Coverage, page 214 

M. NAFI/Entity Asset Losses, page 216 

N. Management Control Evaluation Checklist, page 220 

Table List 

Table 3–1: Listing of centrally administered DA NAFIs, page 6 

Table 5–1: APF and NAF expenses, current year (and 3 prior years), page 20 

Table 5–2: Remote and isolated garrisons approved by DOD, page 21 

Table 6–1: Coordinating garrisons, page 30 

Table 6–2: Responsibility for MWR support to military missions in foreign countries, page 32 

Table 6–3: Paperback book kits, page 33 

Table 6–4: Magazine subscriptions, page 33 

Table 7–1: MWR patronage authorizations, page 34 

Table 8–1: Activities within the service areas, page 50 

Table 8–2: Framework for youth sports and fitness programs, page 51 

Table 8–5: U.S. national sports governing bodies, page 76 

Table 15–1: Reference on use of APFs, NAFs, and private funds for MWR construction, page 114 

Table 19–1: Depreciation guide, page 146 

Table 19–2: Building costs, per square foot, page 149 

Table 19–3: Straight line depreciation, page 150 

Table 19–4: Workers’ Compensation claim forms, page 160 

Table B–1: MWR BOD, page 180 

Table D–1: Funding Authorizations, page 184 

Table E–1: Construction funding authorizations, page 192 

Figure List 

Figure 3–1: MWR programs, page 8 

Figure 3–1: MWR programs—Continued, page 9 

Figure 8–1: Technical and safety restricted equipment, page 45 

Figure 8–2: Program alignment, page 60 

Figure 16–1: Sample local banking letter of authorization, page 124 

Figure 16–2: Format for MWR Personnel Strength Report, page 130 

Glossary 


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Chapter 1 

Purpose, Principles, and Objectives 

1–1. Purpose 

This regulation establishes policy, prescribes procedures, and assigns responsibilities for Army Morale, Welfare, and 

Recreation (MWR) programs and nonappropriated fund instrumentalities (NAFIs) encompassing the garrison MWR 

operating entities and includes NAFIs of the Department of Defense (DOD) established in accordance with Army 

policies herein. 

1–2. References 

Required and related publications and prescribed and referenced forms are listed in appendix A. 

1–3. Explanation of abbreviations and terms 

Abbreviations and special terms used in this regulation are listed in the glossary. 

1–4. Responsibilities 

Responsibilities are listed in chapter 2. 

1–5. Authority 

Army NAFIs/entities, NAFIs operated by the Army for DOD agencies, and MWR programs are established, maintained, 

and disestablished under sole authority of this regulation. Department of Defense policies contained in DOD 

Directive (DODD) 1015.2 and DOD Instructions (DODIs) 1015.10, 1015.13, 1015.14, and 1015.15 are implemented in 

this regulation. 

1–6. Exclusions 

a. The Army and Air Force Exchange Service (AAFES) is a joint service NAFI operated and established by 

authority of the respective service Secretaries. It is exempt from the provisions of this regulation unless otherwise 

specified herein or in AAFES policies. 

b. The following funds and related activities are exempt from the provisions of this regulation unless stated 

otherwise in other applicable regulations or herein. The appropriate governing regulation, where applicable, is indicated 

in parentheses. 

(1) Army Emergency Relief funds (AR 930–4). 

(2) Prisoner of war funds. 

(3) Patient trust funds. 

(4) Prisoner personal deposit funds. 

(5) Donor deposit funds. 

(6) Funds established for the benefit of civilian employees of the Corps of Engineers. 

(7) Contractor and subcontractor funds on Department of the Army (DA) garrisons, including funds established for 

contractor employees and concessionaire funds. 

(8) Funds of labor union locals, veterans’ organizations, banks, and credit unions. 

(9) All funds accounted for under U.S. Treasury symbols and resources acquired with appropriated funds (APFs), 

such as the Trust Revolving Fund Account and Army Commissary Surcharge Fund. 

(10) Funds established by private organizations (POs) authorized to operate on Army garrisons (AR 210–22). 

(11) U.S. Military Academy (USMA) Cadet Mess Ration Fund and personal trust funds (AR 210–3). 

(12) U.S. Soldiers’ and Airmen’s Home personal trust funds. 

(13) Funds generated by blind vendors operating under authority of the Randolph-Sheppard Act (AR 210–25). 

(14) Chaplain’s Nonappropriated Funds (AR 165–1). 

(15) The U.S. Army Nonappropriated Fund Employee Retirement Plan Trust. 

(16) The U.S. Army Nonappropriated Fund Employee 401(k) Savings Plan Trust. 

(17) Department of the Army Welfare Fund (AR 230–3). 

(18) Informal funds (AR 600–20). 

(19) Civilian Welfare Funds and Post Restaurant Funds (AR 215–7). 

1–7. Nonappropriated fund instrumentality structure 

Nonappropriated fund instrumentalities are classified into six program groups and further classified into three funding 

categories. Chapter 3 outlines the NAFI structure. 

1–8. Concept 

a. The Army MWR program is a quality-of-life program that directly supports readiness by providing a variety of 


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community, Soldier, and Family support programs, activities, and services. Included are social, fitness, recreational, 

educational, and other programs and activities that enhance community life, foster Soldier and unit readiness, promote 

mental and physical fitness, and generally provide a working and living environment that attracts and retains quality 

Soldiers. 

b. The range of MWR programs offered at Army garrisons is based on the needs of authorized patrons who work 

and reside there. Programs are managed by garrison commanders within the framework of authorized and available 

APFs and nonappropriated funds (NAFs). Nonappropriated funds are those funds that are locally generated by MWR 

programs or provided by Region directors and/or the Army Morale, Welfare, and Recreation Fund (AMWRF). 

c. Each MWR program is classified by category. Categories are determined by their effect on the military mission 

and their ability to generate revenue. Chapter 3 outlines the three categories of MWR programs. 

1–9. Principles 

a. Morale, Welfare, and Recreation programs are designed to meet the needs of the garrison community. This 

includes Soldiers, units, retirees, civilian employees, and Families. 

b. Morale, Welfare, and Recreation programs are prioritized based on their impact on readiness. 

c. Morale, Welfare, and Recreation programs support readiness, well being, recruiting, and retention of highly 

qualified Soldiers. 

d. Nonappropriated funds are returned to Soldiers, their Families, and other authorized patrons by providing needed 

MWR programs, services, and capital improvements. 

e. Program management is based on long-range planning, generation of NAF resources, and application of authorized 

APF resources to meet current operating requirements while providing for reinvestment in programs, facilities, and 

equipment. 

1–10. Objectives 

The MWR program— 

a. Supports combat readiness and effectiveness. 

b. Supports recruitment and retention of quality personnel. 

c. Provides leisure time activities, which support a quality of life commensurate with generally accepted American 

values. 

d. Promotes and maintains the mental and physical wellbeing of authorized personnel. 

e. Fosters community pride, Soldier morale, and Family wellness and promotes unit esprit de corps. 

f. Eases the impact of unique aspects of military life, such as frequent relocations and deployment. 

Chapter 2 

Responsibilities 

2–1. Secretary of the Army 

The Secretary of the Army (SA) will— 

a. Establish, maintain, and disestablish Army NAFIs/entities. This authority is delegated within the Army as 

provided for in this regulation (chap 3) and other pertinent regulations, with the exception that authority to establish 

joint NAFIs is not further delegated. 

b. Coordinate on joint service matters with the Under Secretary of Defense for Personnel and Readiness. 

c. Designate the Assistant Chief of Staff for Installation Management (ACSIM) as the Army Staff (ARSTAF) 

proponent and focal point for all MWR programs and NAFIs. 

d. Designate financial oversight of APF and NAF to the Assistant Secretary of the Army for Financial Management 

and Comptroller (ASA(FM&C)), and responsibility for MWR, NAFIs/entities, and personnel to the Assistant Secretary 

of the Army for Manpower and Reserve Affairs (ASA(M&RA)). 

2–2. The Assistant Chief of Staff for Installation Management 

The Assistant Chief of Staff for Installation Management (ACSIM) will— 

a. Serve as the ARSTAF proponent for MWR and related programs, NAF and APF management of MWR programs 

and NAFIs, and Armywide MWR and NAFI policy. 

b. Exercise ARSTAF supervision over the Installation Management Command (IMCOM) and Family and Morale, 

Welfare and Recreation Command (FMWRC) in matters pertaining to Army MWR APFs and NAFs and NAFIs. 

c. Endorse, promote, and ensure compliance of Army MWR baseline standards. 

d. Articulate funding requirements identified by Army MWR baseline standards to the Secretary of the Army, DOD, 

and Congress. 

2 AR 215–1 • 31 July 2007

2–3. The Commander, Installation Management Command 

The Commander, Installation Management Command (IMCOM) will— 

a. Act as single integrator and synchronizer with IMCOM Regions, the ARSTAF/ACSIM, FMWRC functional 

proponents, and major Army commands (MACOM)s, as needed, to resolve execution issues. 

b. In coordination with FMWRC, assist in the development, integration, and reporting of Army MWR baseline 

standards. 

c. Fund all MWR manpower authorizations, contractors, and requirements coded as MWR Utilization, Support and 

Accountability (USA) Uniform Funding and Management (UFM) funding practice reimbursable (in the appropriate 

Management Decision Evaluation Packages (MDEPs), to include Child Development Services (QCCS), Youth Services 

(QYDP), Soldier MWR (QDPC), and HQ overhead (QMIS). 

d. In accordance with this regulation and DOD 7000.14–R, volume 13, fund authorized NAF accounting costs (for 

NAFIs/entities) incurred in support of MWR operations. 

e. Comply with congressional and DOD guidance to fund valid APF requirements with APFs through maximum use 

of MWR USA or UFM funding practices. 

f. Promote and evaluate consistency, efficiency, predictability, and best business practices of MWR programs across 

IMCOM Regions. 

g. Distribute congressional authorizations and appropriated fund monies for MWR programs in coordination with 

FMWRC. 

h. Provide oversight, management, and accountability for MWR programs. Ensure adherence to applicable law and 

DOD/HQDA policies and regulations. 

i. Receive and allocate NAF resources generated by other than direct garrison operations, to include items such as 

Army Banking and Investment Fund interest, garrison share of AAFES revenue, Army Simplified Dividend, or Army 

Recreation Machine Program (ARMP) revenue, in accordance with published financial management guidance. 

j. Manage MWR Funds, as required. 

k. Uniformly implement MWR programs and policies. 

l. Review and approve APF budgets and provide program objective memorandum (POM) submissions to ensure 

installations’ assess requirements and to promote equitable distribution of resources. 

m. Approve installation-generated NAF budgets and submit them in accordance with annual budget guidance. 

n. Track and analyze program performance and budget execution relative to established MWR baseline and 

Installation Status Report III standards. 

o. Conduct accreditation, certification, inspection, and assistance programs for garrisons; use interregional program 

specialists and FMWRC assets where appropriate; and regional proponent support for fire, engineers, and safety for 

Regional Child and Youth Evaluation Teams. 

p. Develop centralized NAF contracting support where and when feasible and provide oversight of NAF procurement 

offices. 

q. Provide oversight and accountability of the MWR program centrally managed management information systems 

(MISs). 

r. Execute MWR Management Control Program and Risk Management Program in accordance with AR 11–2. 

s. Coordinate, review, and approve garrison NAF major construction requirements and capital purchases and minor 

construction (CPMC) above garrison approval level in accordance with chapter 15 of this regulation and AR 420–1. 

t. Coordinate, review, and approve garrison military construction, Army (MCA) designs and projects to ensure 

compliance with Army standard designs and best practice principles. 

u. Support MWR requirements for deployment/mobilization and contingency operations, to include designation of 

emergency essential (E–E) civilians, as appropriate. 

v. Establish working group or executive committee for MWR program oversight. 

w. Serve as proponent for MWR MCA requirements in coordination with the engineers. 

x. The Installation Management Command Southeast Region will support the Army National Guard and USAR for 

unit fund actions and will effect necessary liaison to accomplish this support. 

y. The Installation Management Command Northeast Region will coordinate funding requests for MWR programs of 

Army school commandants. 

2–4. Garrison commanders 

Garrison commanders will— 

a. Ensure adherence to applicable law and DOD/Headquarters (HQ) DA policies and regulations. 

b. Plan, manage, fund, and operate MWR programs and services based on Army baseline standards. 

c. Develop annual NAF budgets and manage APF MDEPs (QCCS, QYDP, QDPC, and OSD funding) and NAF 

resources. Ensure programs and activities are managed and operated on a sound financial basis, are in compliance with 

Army policy, and are consistent with established financial performance, program performance, and facility standards 

and MWR baseline standards. 

AR 215–1 • 31 July 2007/RAR 6 October 2008 

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d. Conduct annual program reviews, customer needs assessments, and annual updates to the MWR 5-year garrison 

plans and strategic business plan. 

e. Ensure personnel are properly trained in customer service and program specific competencies. 

f. Coordinate with servicing Civilian Personnel Advisory Center (CPAC) to ensure that NAF employees and 

organizations receive timely support. 

g. Perform NAF procurement as authorized by policy in AR 215–4 and other applicable policies. 

h. Execute CPMC projects in accordance with approved NAF budget. 

i. Employ public affairs and marketing and advertising resources to inform population about MWR programs. 

j. Identify APF requirements based on DOD/Army/MWR program baseline standards for inclusion in the garrison 

base operations budget. 

k. Plan, develop, and submit MCA requirements. 

l. Prepare and update plans for operation during mobilization and contingency. 

m. Plan for MWR support during mobilization, wartime, and contingency operations. 

(1) Validate garrison and unit MWR personnel requirements identified in the E–E civilian program. 

(2) Resource and assist units in the identification and procurement of MWR/athletic and recreation (A&R) deployment 

kits. 

n. Enforce use of MWR centrally managed MIS (see chap 13). Implement, operate, and provide technical support 

for approved MWR management information systems. 

o. Support all military units, provide normal garrison support for tenant organizations, and provide support for the 

USAR, National Guard, and Accessions Command. Outside the continental United States (OCONUS) may support 

other Government agencies. Implement interservice support agreements, when required. 

p. Provide authorized local administrative and logistical support to FMWRC concert series and other touring groups 

and shows scheduled through Armed Forces entertainment outlined in AR 215–6. 

q. Review inspection results and accidents involving MWR activities, programs, and patrons and initiate corrective 

action as necessary to prevent personal injury and property damage. 

r. Ensure statutory labor relations obligations are met, where applicable, in implementation of this regulation. 

2–5. Commander, Family and Morale, Welfare and Recreation Command 

The Commander, Family and Morale, Welfare and Recreation Command (FMWRC) will— 

a. Develop program guidance, standards, and procedures to implement approved Army policies. 

b. Manage all aspects of the MWR Board of Directors (BOD) process including planning, in-process reviews (IPRs), 

notifications, execution, and follow up. 

c. Sit on or designate a representative to sit on the AAFES and other BODs, as directed. 

d. Develop plans, strategies, programs, policies, and operating guidance for the management and administration of a 

full range of MWR programs (see chap 3, fig 3–1). Create and coordinate the MWR programs’ strategic plans. 

Disseminate guidance through the IMCOM for synchronization, integration, and implementation. 

e. Develop organization and operation agreements or memorandum of agreement (MOA) to define procedures and 

responsibilities for management, oversight, and support of MWR programs in coordination with the IMCOM. 

f. Support commanders of deployed units with MWR planning and/or execution of MWR in accordance with FM 

12–6 (see chap 9). 

g. Formulate and promulgate best business practices in coordination with IMCOM. 

h. Serve as the point of contact (POC) for congressional and higher HQ inquiries. 

i. Develop and execute public affairs, command information, media relations, and marketing and advertising plans. 

j. Administer and execute MWR internal review and management control programs in accordance with ARs 11–2 

and 11–7. 

k. Act as the primary action and liaison official for external audits of MWR programs. 

l. Continually review the MWR programs to quantify and profile requirements. 

m. Research, test, evaluate, and establish alternative business strategies and identify ways to improve business 

processes and program practices. 

n. Support IMCOM with management and technical assistance. 

o. Develop and execute career management strategies and programs to develop Career Field 51 employees and 

provide input and recommendations for CF 34 (Librarians) and CF 27 (Housing Management), and operate the MWR 

Career Referral Program. 

p. Operate and administer health, life, retirement, savings, and other benefit programs for NAF employees. 

q. Develop and deliver training for MWR program managers. Centrally fund training approved for inclusion in the 

MWR Master Training Program. 

r. Administer and execute NAF major construction (MC) program to include category C public private ventures 

(PPV). 


s. Develop standards and exercise oversight for the NAF procurement program (AR 215–4). 

t. Execute NAF procurement in accordance with applicable laws and regulations. 

u. Develop accreditation, certification, and inspection programs for MWR programs for IMCOM implementation. 

v. Develop program standards, benchmarks, outcome criteria, and operating guidance for management of MWR 

programs for IMCOM implementation. 

w. Operate the Armed Forces Recreation Centers (AFRCs) and ARMP. 

x. Oversee, manage, and control the Army MWR MISs and the MWR Configuration Control Board process. 

y. Manage MWR financial management process and provide necessary information for IMCOM synchronization of 

resources and issues. 

z. Operate and administer common support NAF financial management functions such as banking, investment, and 

insurance and establish investment oversight groups for each activity that invests NAFs. 

aa. Administer the Army MWR and Army Recreation Machine (ARM) trust funds. The AMWRF is the successorin-interest 

to IMCOM Regions and other designated NAFIs. 

ab. Review and approve requests for establishment of all Army NAFIs/entities and DOD agencies requesting NAFI 

establishment under the Army’s policies and appoint advisory groups for DA-level NAFIs. 

ac. Serve as the POC for joint service policy pertaining to the AAFES, to include recommending policy to the 

ACSIM for, and publication of, applicable joint service regulations. Serve as DA POC for and represent the Army on 

joint service committees and working groups, to include DOD MWR committees. Serve as executive agent responsible 

to the OSD for the annual consolidated MWR Financial and Personnel Management Report (see chap 17, sec VI). 

ad. Serve as DOD POC for DODI 1015.9 and Army POC for funding Boy and Girl Scout programs overseas. 

ae. Designate Army representatives to the Inter-Service Sports Committee, the U.S. Olympic Committee, the 

Amateur Athletic Union, and other national sports governing bodies as appropriate and direct and control Army 

participation in interservice, national, and international events and Army World Class Athlete Program (WCAP) (see 

chap 8). 

af. Obtain copyright and royalty clearances, as required, for Armywide sponsored entertainment events. 

ag. In coordination with the U.S. Army Soldier Support Center and U.S. Army Training and Doctrine Command 

(TRADOC), develop MWR doctrine, policy, and operations procedural guidance for mobilization, contingencies, and 

wartime. Delineate unit/individual responsibilities. 

ah. Produce the U.S. Army Soldier Show. 

ai. Develop specifications and standards for procurement and distribution of library materials and administer a 

supplemental acquisition program. 

aj. Integrate Army Pest Management Program requirements into Army MWR programs and NAFIs in accordance 

with AR 200–5. 

ak. With regard to NAFs, act as Army proponent for all aspects of NAF financial management, to include— 

(1) Publishing annual NAF budget guidance. 

(2) Reviewing IMCOM consolidated IMCOM Region budgets. 

(3) Providing primary oversight for NAF accounting procedures in coordination with Defense Finance and Accounting 

Service (DFAS). 

(4) Publishing and submit appropriate reports and trend analyses as required or necessary. 

(5) Maintaining NAF database for management information. 

(6) Establishing liaison with DFAS on accounting policy and systems. 

a l . W i t h r e g a r d t o A P F s a n d i n a c c o r d a n c e w i t h A r m y P l a n n i n g , P r o g r a m m i n g , B u d g e t E x e c u t i o n S y s t e m 

guidance— 

(1) Orchestrate the development of Armywide MWR POM requirements. 

(2) Coordinate with IMCOM to ensure baseline standards and Army priorities are addressed. 

(3) Serve as functional POC for all MWR in MDEP, POM, and military construction processes. 

(4) Present and defend POM requirements to Installation Program Evaluation Group (and others as appropriate). 

(5) Work directly with IMCOM, ACSIM Resource Integration Office, and ARSTAF to ensure MWR issues are 

appropriately addressed and recorded in applicable databases. 

(6) Assist the IMCOM with maintaining the Army MWR programs’ priority list of unfinanced requirements. 

(7) Recommend to the Army Budget Office (ASA(FMC)) and IMCOM the allocation of resources by MDEP and 

IMCOM Region/garrison. 

(8) Monitor the execution of MWR MDEP resources. Take appropriate action to ensure programming, budgeting, 

and execution objectives are met. 

(9) Publish and submit appropriate reports and trend analyses as required or necessary. 


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2–6. Heads of Headquarters, Department of the Army agencies and commanders of Army commands, 

installations, and activities 

The heads of the above agencies, commands, installations, and activities need to have knowledge of AR 340–21, and 

AR 25–55. 

Chapter 3 

Nonappropriated Fund Instrumentality Structure 

NAFIs and their programs are classified into one of six program groups. Within each group, programs are further 

classified into one of three funding categories. The funding categories are the basis for APF and NAF authorizations in 

appendix D. 

Section I 

Nonappropriated Fund Instrumentality Groups 

3–1. Program Group I: Military morale, recreation and welfare programs 

All military MWR programs, to include Child Development Services and School Age Care, are included within this 

group. Policies pertaining to these programs are contained throughout this regulation and AR 608–10. Military MWR 

programs are classified into three funding categories outlined in section II of this chapter. 

3–2. Program Group II: Armed Forces exchanges 

Policies pertaining to this group of NAFIs are contained in AR 60–20. Exchanges are classified as a category C 

program. 

3–3. Program Group III: Civilian morale, recreation and welfare programs 

Policies pertaining to this group of NAFIs are contained in AR 215–7. Civilian MWR programs are classified as a 

category C program. 

3–4. Program Group IV: Lodging Program supplemental mission funds 

Army Lodging is an APF mission. The Army Lodging Program Supplemental Mission Fund is a NAFI and receives 

APF and NAF support comparable to a category C program. 

3–5. Program Group V: Supplemental mission funds 

Policies pertaining to this group of NAFIs are contained in this regulation and various other regulations identified in 

chapter 5. These programs are APF mission programs. Supplemental mission funds are accounted for as NAFs and 

receive funding support comparable to category C programs. Nonappropriated fund instrumentalities in this group 

include, but are not limited to— 

a. School Lunch Program. 

b. Museums. 

c. Vehicle Registration Fund. 

d. Cadet Restaurant. 

e. Athletic Association Fund. 

f. U.S. Disciplinary Barracks. 

g. Stars and Stripes. 

h. Military Treatment Lodging Facilities. 

3–6. Program Group VI: Special purpose central funds 

These funds are sole providers of a consolidated NAF function, such as construction, accounting, procurement, 

personnel administration, employee health and life insurance, and risk management. These are HQ-level programs. 

Expenses of these funds are generally recovered through premiums or assessments charged or offset against earnings 

prior to distribution. These funds are authorized the same APF and NAF support authorized for category C programs. 

Centrally administered NAFIs are shown in table 3–1. 

Table 3–1 

Listing of centrally administered DA NAFIs 

NAFI: Army Morale Welfare and Recreation Fund 

SNN: BA1 

Scope: Ultimate successor-in-interest to all Army operating NAFIs. Major financing agent to Army NAFMC program. 

6 AR 215–1 • 31 July 2007/RAR 6 October 2008

Table 3–1 

Listing of centrally administered DA NAFIs—Continued 

NAFI: Army Medical/Life Fund 

SNN: BAA 

Scope: Repository of the assets of the U.S. Army NAF Group Insurance Plan. Collects group health, life, and dental insurance premiums 

from NAF employees and employers; contracts with various providers of coverage on behalf of NAF employees; pays premiums and service 

fees to direct providers of health, dental, and life insurance coverage on behalf of NAF employees; pays claims expenses and direct and 

indirect general administrative expenses of health and dental insurance incurred by the plans; and provides general administrative services 

to the plans. 

NAFI: Army Banking and Investment Fund 

SNN: BA9 

Scope: Provides a centralized banking and investment vehicle for NAFIs. 

NAFI: Army Central Insurance Fund 

SNN: BAC 

Scope: Supports the NAF Risk Management Program, a centralized property and casualty insurance program for U.S. Army NAFIs/entities. 

NAFI: Hospitality Cash Management Fund 

SNN: BAJ 

Scope: Provides centralized cash management for Armed Forces Recreation Centers and finances capital purchase and minor construction 

requirement and other investment initiatives. 

NAFI: Army Recreation Machine Fund 

SNN: BA8 

Scope: Provides amusement and gaming machine entertainment to authorized patrons, from which profits are used to fund the MWR 

program worldwide. 

NAFI: Hale Koa Hotel Armed Forces Recreation Center, Honolulu, Hawaii 

SNN: BKD 

Scope: Provides a first-class, full-service hotel and adjunct recreational facilities and programs at affordable prices for eligible patrons. 

NAFI: Edelweiss Lodge and Resort, Garmisch, Germany 

SNN: ZED 


NAFI: Dragon Hill Center and Lodge, Seoul, Korea 

SNN: KGD 


NAFI: Armed Forces Recreation Center–Orlando (Shades of Green), Orlando, Florida 

SNN: IDD 


NAFI: Army Lodging Fund 

SNN: BAF 

Scope: Successor fund to all IMCOM Region lodging funds and garrison lodging funds where there is no IMCOM Region lodging fund, which 

accounts for charges collected from occupants of official travel lodging facilities. The Army Lodging Fund cross-levels garrison lodging fund 

resources to centrally fund Armywide transient lodging requirements. 

Section II 

Funding Categories 

The degree to which APF support is authorized for MWR programs and other NAFIs is based on DOD categorization, 

a designation based on their relationship to readiness and ability to generate revenue. The general purpose and scope of 

each category are explained in the following paragraphs. A listing of MWR programs by category is at figure 3–1. 


7

Figure 3–1. MWR programs 


Figure 3–1. MWR programs—Continued 

3–7. Category A: Mission-sustaining programs 

Considered essential to sustaining readiness, these programs generally enhance and promote the physical and mental 

well being of Soldiers. Programs in this category have little or no capacity for generating NAF income and are 

supported almost entirely with APFs. 

3–8. Category B: Community support programs 

These programs are closely related, in terms of supporting the military mission, to those grouped in category A. They 

satisfy the basic physiological and psychological needs of Soldiers and their Families and provide, to the extent 

possible, the community support systems that make military garrisons temporary hometowns for a mobile military 

population. These support programs will receive substantial amounts of APF support, but differ from those programs in 

category A, in part because of their ability to generate NAF revenues. That ability to generate revenues is limited, 

however, and in no case may they be sustained without substantial APF support. 

3–9. Category C: Revenue-generating programs 

These programs have less impact on readiness. They offer desirable social and recreational opportunities. Programs in 

this category have the capability of generating enough income to cover most of their operating expenses, but they lack 


9

the ability to sustain themselves based purely on their business activity; consequently, they receive limited APF 

support. Chapter 5 addresses funding for category C MWR programs located at remote and isolated sites, funding for 

base closures, and funding as a result of special security conditions. 

Section III 

Establishment, Consolidation, Revalidation, and Disestablishment 

3–10. Establishment 

a. Prior to requesting establishment of new NAFIs or for the operation of garrison MWR operating entities (garrison 

MWR programs) (also referred to as entities of NAFIs), consideration will be given to the accessibility and capabilities 

of existing exchange service, on-base commercial or civilian community MWR alternatives, as well as current and 

planned MWR programs of adjacent military service installations. 

b. Nonappropriated fund instrumentalities and entities of NAFIs will be operated only when local community 

programs do not meet local garrison requirements or when they are not cost effective. Nonappropriated fund instrumentalities 

and entities of NAFIs must be financially viable and comply with cash management policies. MWR programs 

must meet funding standards outlined in chapter 16. 

c. Morale, Welfare, and Recreation programs are available to all authorized patrons of the military departments and 

to units, individuals, and DOD agencies located on the installation. Tenants receive MWR services from the host 

installation or community and will not duplicate those services. Exceptions by tenant activities may be granted under 

agreements between the host and tenant commands. DODI 4000.19 applies to inter-Service and intradepartmental 

support. 

d. Requests for establishment of NAFIs and for the operation of garrison MWR operating entities may be submitted 

with the information below through command channels to the Commander, Family and Morale, Welfare and Recreation 

Command (IMWR-PO), 4700 King Street, Alexandria, VA. 22302–4419: 

(1) The name of the NAFI or garrison MWR operating entity and the individual directly responsible for the NAFI/ 

entity; mailing address and telephone number; type of council (governing or nongoverning); and the successor fund, 

discussed in chapter 16. 

(2) A broad statement of the NAFI’s/entity’s purpose, a list of supported programs, and certification that there is no 

conflict with Federal laws, Status of Forces Agreements (SOFA), treaties, or applicable regulations. 

(3) A statement explaining why the proposed NAFI/entity cannot be included within an existing NAFI/entity. 

(4) A description of programs to be provided, an explanation of items to be sold, and a statement that servicing 

AAFES outlets cannot provide the needed support. 

(5) Operating, capital expenditure, and cash budgets and balance sheet projections for the first year. 

e. The FMWRC will review each request for suitability; validate the requirement (according to applicable criteria); 

and approve establishment of the NAFI/entity by assigning a standard NAFI identification number (SNN) in accordance 

with appendix F. The SNN is used for all subsequent correspondence and reporting. After receipt of approval— 

(1) The responsible official formally establishes the new NAFI/entity with a written, local announcement explaining 

the purpose, governing regulations, name of the NAFI/entity, effective date of establishment, the SNN, name of the 

successor fund, and programs to be supported. Copies of all related correspondence are included in the command’s file. 

(2) An employer’s identification number for the new NAFI/entity is obtained from the Internal Revenue Service 

(IRS). 

f. The IMCOM Region will request SNNs for newly established garrison MWR operating entities and is responsible 

for overseeing garrison MWR programs. 

g. DOD organization and Army Staff level NAFIs not under the oversight of an IMCOM Region will submit 

documentation described above through command channels to FMWRC at the above address. 

h. Under extreme limited circumstances, FMWRC may operate and manage garrison MWR programs and facilities 

and establish those programs/facilities as separate NAFIs. Family and Morale, Welfare and Recreation will assume 

operation of garrison programs only when the Army as a whole benefits. 

i. A list of centrally administered DA NAFIs is at table 3–1. 

3–11. Consolidation 

a. Effective 1 October 2002, all installation MWR funds were consolidated under IMCOM Regions. Morale, 

Welfare and Recreation programs at the garrison level are entities of the IMCOM Regions. The garrison MWR 

operating entity is provided an SNN to account for receipts, disbursements, and any other accounting functions. 

b. Responsible officials may consolidate NAFIs/entities at any time by forwarding the following information 

through the appropriate chain of command to FMWRC at the address in paragraph 3–10: 

(1) The name and SNN of the NAFI/entity to be disestablished. 

(2) The name and SNN of the surviving or succeeding NAFI/entity with the effective date of consolidation. 


3–12. Revalidation 

a. A needs and continuation assessment will be performed every 3 years in conjunction with developing the garrison 

MWR 5-year plan (see chap 15). Only those NAFIs/entities that continue to support the purpose for which established, 

and those NAFIs/entities that cannot be supported by other means for which a documented and continuing need still 

exists, will be revalidated. 

b. Nonappropriated fund instrumentalities/entities may be validated simultaneously or one-third assessed annually to 

comply with the revalidation at least once every 3 years. 

c. The fund manager/entity administrator will submit to FMWRC at the address in paragraph 3–10 (through 

command channels) documentation validating the continued requirement for NAFIs/entities. Documentation is retained 

at the garrison level until the next 3-year review. Documentation will validate that— 

(1) Nonappropriated fund instrumentalities/entities are conducting intended programs, activities, and operations. 

(2) Continuation is supported by use, or programs are supported by other means, and 

(3) If there is unnecessary duplication, some or all of the programs will be consolidated. 

3–13. Disestablishment 

a. Nonappropriated fund instrumentalities/entities of NAFIs will be disestablished for any of the following reasons: 

(1) Inactivation, realignment, or closure of a command. 

(2) Determination that the NAFI/entity will be consolidated with another NAFI or another the garrison MWR 

operating entity, or the purpose for which it was established has been completed and it is no longer justified. 

(3) By direction of appropriate authority (depending on the NAFI or entity function). 

b. When appropriate authority determines that a NAFI/entity will be disestablished, the following actions are 

necessary: 

(1) Restrict or control expenditures to preclude unnecessary spending. 

(2) Notify vendors and collect outstanding accounts receivable and pay or make final settlement on accounts 

payable, in conjunction with the supporting contracting office. 

(3) In coordination with the supporting contracting office, cancel or reduce future commitments through contract 

renegotiation or cancellation. 

(4) Prepare and execute an employee separation or transfer plan in coordination with servicing NAF Human 

Resources Office. Ensure that employees are kept informed. 

(5) Arrange for a terminal audit, disposition, or transfer of NAF property according to chapter 17, and turn in any 

APF property for which the NAFI fund manager/entity administrator is responsible. 

(6) Identify and notify the successor fund of disestablishment and request any necessary instructions related to the 

above actions. Cash assets will transfer to the successor fund. 

(7) Notify FMWRC of disestablishment and the SNN on the duty day following the effective date, through the 

appropriate chain of command. 

3–14. Transfers of nonappropriated fund instrumentalities/entities 

a. Transfers between Army commands or other DOD components. Normally, all associated NAF assets will be 

transferred intact from the losing command to the gaining command, unless otherwise mutually agreed. 

b. Command inactivation. Assets at locations scheduled for inactivation or closure will be transferred to the 

successor NAFI or disposed of as provided in chapter 17. 

c. Disputes. When disposition of NAF assets cannot be mutually agreed upon between the gaining and losing 

organizations, the commands involved will refer the matter through appropriate channels to FMWRC for— 

(1) Determination in cases involving transfers between Army commands. 

(2) Representation by the Army in negotiations with organizations of other DOD components. 

Section IV 

Nonappropriated Fund Instrumentality Fund Managers/Entity Administrators 

3–15. Duties 

Nonappropriated fund instrumentality fund manager/entity administrators may be responsible only for financial management 

or for both financial management and overall program management. They are either assigned or appointed by 

the official with oversight responsibility. Garrison MWR operating entity administrators are assigned or appointed by 

the garrison commander (or designee). Because duties include command supervision, positions may be funded from 

APF. All fund managers/entity administrators have legal and fiduciary responsibilities, which are described throughout 

this regulation and DOD 7000.14–R, volume 13, and must monitor NAFI/entity programs and ensure compliance with 

internal management controls. 


11

3–16. Absence and permanent change of fund managers/entity administrators 

a. Accountability. When a fund manager/entity administrator is absent more than 30 days but not more than 60 days, 

an assistant or acting manager/administrator will assume responsibility for cash, other negotiable assets, and all 

nonexpendable property. 

(1) Assistant fund manager/entity administrator. When designated in writing by the fund manager/entity administrator, 

an assistant manager/administrator may be assigned to perform designated tasks continually. An assistant manager/ 

assistant administrator may be designated as acting in the temporary absence of the manager/administrator for not more 

than 60 days. 

(2) Acting fund manager/entity administrator. An acting manager/acting administrator may be designated in writing 

by the fund manager/entity administrator or next higher authority. 

(a) If an assistant fund manager/assistant entity administrator has not been appointed, or if the manager/administrator 

so requests, an acting manager/acting administrator is appointed in writing in the absence of the fund manager/ 

entity administrator for more than 5 days, but not more than 60 days. 

(b) An acting manager/acting administrator is appointed between the departure of the outgoing manager/administrator 

and the arrival of the incoming manager/administrator, but for not more than 60 days. 

b. Change of fund manager/entity administrator. 

(1) Prior to any planned change of managers/administrators, fund accounts and property will be transferred from the 

outgoing to the incoming manager/administrator per the following: 

(a) The central accounting officer (CAO) will prepare and furnish to the outgoing manager/administrator as of the 

transfer date all current financial statements (to include balance sheet and operating statements), the latest bank 

reconciliation statement, and a current record of property and merchandise. The outgoing manager/administrator will 

verify the financial records, data, and other information furnished by the CAO; conduct a complete inventory of assets; 

investigate any discrepancies; adjusts records, as necessary; and complete an inventory statement. 

(b) The incoming manager/administrator will assist the outgoing manager/administrator in reconciling records, sign 

for all verified assets and liabilities, and assume accountability and responsibility for the fund/entity from the outgoing 

manager/administrator. This is done within 30 days following the appointment of the new manager/administrator and 

may be made conditional pending verification by a formal audit. 

(2) If death or incapacity causes replacement of an incumbent manager/administrator, the NAFI/entity oversight 

official or garrison commander will follow the process in AR 735–5. A board of officers will be appointed to inventory 

all assets and liabilities of the fund/entity and recommend appropriate action. A new manager/administrator will then 

be appointed and sign for assets and liabilities from the board of officers. 

Section V 

Councils 

3–17. Purpose and functions 

Nonappropriated fund instrumentalities administered at DA and IMCOM Region levels are not required to have 

councils. Councils are required for separate Garrison NAFIs and garrison MWR operating entities. Nonappropriated 

fund instrumentality/entity oversight officials or garrison commanders (or designees) appoint council members in 

writing and establish the council as either governing or nongoverning, based on the following: 

a. Nongoverning councils. 

(1) All MWR NAFI and garrison MWR operating entity councils are nongoverning and function only in an advisory 

capacity, representing interests and concerns of authorized patrons and NAFI/entity management. 

(2) Subcommittees or ad hoc groups may be formed to represent consumer groups for specific MWR programs. 

b. Governing councils. Governing councils will govern, direct, and exercise general supervision through the fund 

manager and ensure proper financial management based on management reviews. They will also direct the overall 

operation of the NAFI. 

3–18. Council membership 

Council members generally will represent the interests and viewpoints of the military community. 

a. Membership. Governing council membership is limited to active duty military personnel to include reservists on 

extended active duty, and full-time DOD civilian employees. Nongoverning councils may also include military retirees 

and Family members. 

b. Chair. A governing council will be chaired by the senior ranking active duty military or full-time civilian 

employee (APF or NAF). A nongoverning council will be chaired by the senior active duty or full-time civilian 

employee or as determined by the membership, when delegated by the senior ranking member. 

c. Council composition. Councils will include at least four voting members plus the NAFI fund manager/entity 

administrator, who is a nonvoting member. Suggested membership of garrison MWR operating entity councils 

includes— 

(1) The garrison commander as chair. 


(2) Director, FMWR (or equivalent). 

(3) Director of Resource Management (DRM). 

(4) Director of Engineering and Housing (DEH). 

(5) Director of Contracting. 

(6) Director of Reserve Component. 

(7) The local exchange manager. 

(8) Selected senior commanders. 

(9) The Command Sergeant Major. 

(10) A Family member representative. 

3–19. Meetings 

a. At a minimum, a council meeting will be held annually. The frequency of meetings will be determined by the 

chairperson (quarterly meetings are recommended). A majority of the voting membership constitutes a quorum for the 

conduct of official business. Minutes will be provided to the responsible commander or designee for approval or other 

action. 

b. As determined locally, any Army official or patron representative with an interest in the fund/entity may attend 

council meetings as an observer or adviser. Such persons may include NAF contracting, audit, inspection, financial 

management personnel, and others who represent authorized patron groups. When discussing actions impacting or 

concerning other quality of life/well being programs, responsible individuals may be invited and may contribute. 

Chapter 4 

Nonappropriated Fund Instrumentality Legal Status 

Section I 

Authority 

4–1. Nonappropriated fund instrumentalities 

a. Every NAFI is legally constituted as an “instrumentality of the United States.” The term “NAFI” includes entities 

at the garrison level, hereafter referred to as garrison MWR operating entities or simply entities (previously the 

installation MWR fund). Funds in NAFI/entity accounts are Government funds, and NAF property, including buildings, 

is Government property. However, NAFs are separate from APFs of the U.S. Treasury. They are not commingled with 

APFs and are managed separately, even when supporting a common program. 

(1) Each NAFI/entity will operate under the authority of the U.S. Government in accordance with applicable Federal 

laws and departmental regulations. 

(2) Because NAFIs/entities operate under the authority of the Federal Government, they are entitled to the same 

sovereign privileges and immunities as the Federal Government accorded by Federal law. 

(3) Applicable DOD directives and implementing Army regulations are binding on NAFIs. 

b. Nonappropriated fund instrumentality/entity programs and facilities will be operated, maintained, and funded as 

an integral part of the personnel and readiness program. 

4–2. Administration 

Nonappropriated fund instrumentalities/entities will— 

a. Be administered by military or civilian personnel acting in an official capacity. 

b. Account for and report financial operations through command and department channels. 

c. Be subject to review by Congress. 

d. Expend resources to support MWR programs, primarily the programs from which NAF revenues were derived. 

e. Employ, discharge, and otherwise administer NAF personnel in accordance with AR 215–3 and this regulation. 

f. Engage in contractual relationships in accordance with DODI 4105.71, DODD 4105.67, and AR 215–4. 

g. Derive revenue from fees and charges paid by authorized patrons of MWR programs, other NAFIs/entities, and 

nongovernmental sources. 

h. Be considered integral and essential to the conduct of the military mission. 

4–3. Nonappropriated fund employees 

Nonappropriated fund employees are Federal employees within the Department of Defense, but are not subject to many 

personnel laws administered by the Office of Personnel Management (OPM) for APF employees. Unless otherwise 

specifically stated, 5 USC 2105(c) explains this status and identifies the OPM-administered laws that cover NAF 


13

employees. Funding NAF employees through the MWR USA/UFM funding practices will not change the Federal 

employment status of NAF employees. 

Section II 

Fiduciary Responsibility (10 USC 2783) 

4–4. Nonappropriated funds 

Nonappropriated funds are Government funds entitled to the same level of protection as funds appropriated by the 

Congress of the United States. NAFs will be used for the collective benefit of authorized patrons who generate them. 

These funds are separate and apart from funds recorded in the books of the Treasurer of the United States. 

4–5. Individual responsibility 

There is an individual fiduciary responsibility to use NAFs properly and prevent waste, loss, mismanagement, or 

unauthorized use. This responsibility will extend to all DOD personnel, to include members of the Armed Forces and 

APF and NAF civilian employees. 

4–6. Violations 

Reporting of suspected violations at the lowest organizational level possible is encouraged. However, reports may be 

made to senior management, organizational inspectors general, or to the Defense Hotline. Garrison commanders will be 

responsible for prompt detection, proper investigation, and appropriate corrective action. NAF employees and applicants 

for employment in NAF positions will be protected from reprisal for making certain disclosures, as described in 

10 USC Section 1587. 

a. Garrison commanders will take appropriate administrative action against present and former personnel responsible 

for violations. Where evidence indicates criminal conduct, garrison commanders will refer the matter to the appropriate 

criminal investigative organization. 

b. Penalties for violations of waste, loss, mismanagement, or unauthorized use of NAFs apply to military and APF 

and NAF civilian personnel and include the full range of statutory and regulatory sanctions, both criminal and 

administrative. 

(1) Under 10 USC 2783, penalties for substantial violations of statutes and regulations governing the management 

and use of NAFs by civilian NAF employees will be similar to those provided by law for misuse of appropriations by 

APF personnel. Investigative procedures for loss of NAF assets and property are outlined in this regulation. 

(2) Penalties for substantial violations of statutes and regulations governing the management and use of APFs by 

military personnel and APF civilian employees of the U.S. Government are addressed in 31 USC 1350. 

(3) Military personnel will be subject to the Uniform Code of Military Justice. 

Section III 

Tax Requirements 

4–7. Federal taxes 

a. Taxes on articles or services must be paid by the entity upon which the taxes are levied, whether or not the 

articles or service may be furnished for the use of, or the sale in, NAF programs. However, in general, there will be 

provision for exemption from these taxes when the articles or services are sold to a NAFI/entity for resale outside the 

United States and its territories on alcoholic liquors tax, beer tax, and tobacco tax. 

b. Nonappropriated fund instrumentalities/entities are exempt from payment of Federal income taxes and are not 

required to file returns. 

4–8. Federal income and employment taxes 

Nonappropriated fund instrumentalities/entities will withhold Federal Insurance Contribution Act (FICA) and other 

taxes in accordance with controlling law. 

4–9. Alcoholic beverage taxes (Internal Revenue Code of 1986) 

Federal wholesale or retail dealer taxes will be paid annually, by 1 July: $500 is levied for wholesale operation and 

$250 for retail. A NAFI/entity will be liable for only one tax, regardless of how many sales outlets operated. Only the 

wholesale tax will be paid when conducting both wholesale and retail operations. Details and forms needed to pay 

taxes are available from Department of the Treasury, Bureau of Alcohol, Tobacco, and Firearms, ATTN: Revenue 

Division, Room 5000, 650 Massachusetts Avenue, NW, Washington, DC 20226. 

4–10. NAFI/entity employment relationship (for tax purposes) 

a. Many individuals are considered to be employed by a NAFI/entity for the purposes of Federal income and 

employment taxes, although they are not considered NAF employees for other purposes (AR 215–3). Both Federal and 


employment taxes will be withheld when the NAFI/entity has the legal right to control the method and result of the 

services performed. 

(1) Generally, individuals who offer their services to the public are independent contractors and not employees (such 

as physicians, lawyers, dentists, construction contractors, public stenographers, and auctioneers, engaged in the pursuit 

of an independent trade, business, or profession). Sporting officials and instructors under contract with a NAFI/entity 

may be employees of the NAFI/entity for Federal income and employment tax purposes (FICA and all other taxes paid 

by the NAFI/entity are added to the contract cost). Under these circumstances, individuals will be notified that, for 

Federal income and employment tax purposes, they will be treated as NAF employees regardless of the provisions of 

AR 215–4. 

(2) DOD 7000.14–R, volume 13, chapter 8, lists common law rules that are used by local offices of the staff judge 

advocate (SJA) to characterize employment relationship to identify appropriate taxes to be withheld and paid. 

(3) An individual who disputes the employment relationship may appeal directly to the IRS. Pending the final IRS 

decision, the individual will be treated as an employee or independent contractor, as determined by an SJA using the 

common law factors. 

b. Reporting independent contractor payments to the IRS will be in accordance with DOD 7000.14–R, volume 13. 

4–11. Taxes on employee tips 

a. Withheld compensation includes allowances for tips received by employees of food and beverage programs, as 

specified in appendix C. Addresses for requesting IRS publications and forms are found in DOD 7000.14–R, volume 

13. 

(1) Nonappropriated fund employees receiving tips in the amount of $20 or more in any month must report tip 

income to the employing NAFI/entity using IRS Publication 1244 and IRS Form 4070 (Employee’s Report of Tips to 

Employer) or a locally prescribed equivalent. Reports will be filed by the 10th of the month following the month in 

which tips were earned. 

(2) Each NAFI/entity employing more than 10 food service employees will file IRS Form 8027 (Employer’s Annual 

Information Return of Tip Income and Allocated Tips). See appendix C and the Tip Allocation and Tip Reporting 

Manager’s Guide found at www.armymwr.com. 

b. Federal income and employment tax records will be retained by the NAFI/entity for 4 years. 

4–12. Reporting prizes 

Nonappropriated fund instrumentalities/entities involved in awarding cash or merchandise prizes to individuals participating 

in contests or other such competitions will report awards in accordance with DOD 7000.14–R, volume 13, 

paragraph A1007. 

4–13. Annual reports to the Internal Revenue Service 

Returns made on IRS Forms 1099–MISC (Miscellaneous Income) and 1096 (Annual Summary and Transmittal of U.S. 

Information Return) for a calendar year will be filed with the appropriate IRS district by each NAFI/entity on or before 

28 February of the following year. A copy of IRS Form 1099–MISC will be sent to the person receiving payment from 

the NAFI/entity not later than 31 January of the year following payment from the NAFI/entity. Addresses for 

requesting IRS publications and forms are found in DOD 7000.14–R, volume 13. The contracting officer must provide 

proper information about the taxpayer to their servicing accounting office through the submission of an IRS Form W–9 

(Request for Taxpayer Identification Number and Certification) and provide the form with contractual documents. 

4–14. State and local sales and use taxes 

a. Nonappropriated fund instrumentality/entity operations are not subject to direct taxation by State or local tax 

authorities, except when specifically authorized by Federal statute. Nonappropriated fund instrumentalities/entities will 

cooperate with State and local officials to the degree that such cooperation is not construed as a submission to State 

and local regulations and control and such cooperation does not adversely affect MWR programs. 

b. Nonappropriated fund instrumentality/entity retail sales are not subject to State sales and use taxes, except for the 

sale of tobacco products and soft drinks through vending machines. 

(1) Sale of tobacco products exempt from State tax is limited to packs or equivalents for on-premises consumption. 

(Only the AAFES and commissary sales stores sell in bulk.) Other sales of tobacco products in the United States, 

including all vending machines sales, require payment of State sales tax. 

(2) Over-the-counter sales of soft drinks for immediate consumption at MWR snack food operations are exempt 

from State tax. (Only the AAFES outlets sell in bulk.) State sales taxes are paid for vending machine sales in the 

United States. 

c. The sale of State tax-free alcoholic beverages will be in accordance with chapter 10. 

d. State taxes on gasoline or other motor fuels measured by sales, purchases, storage, or use will be collected and 

paid under the provisions of 4 USC 104. 


15

e. Most tax questions are fact specific, are complex, and require close examination of State or Federal statutes and 

case law by the local SJA. 

f. Leaseholds on military installations held by PPVs may be subject to State or local taxation. 

4–15. State and local income taxes 

State and local income taxes will be withheld from NAF civilian employee compensation when an agreement to such 

withholding has been mutually agreed to between the Federal Government and the affected State or local government. 

The servicing NAFI/entity CAO will withhold taxes where such agreements exist. State and local taxes will be 

withheld from the pay of enlisted personnel compensated from NAFs for work performed during off-duty hours. 

4–16. U.S. Government tax exemption certificates 

Generally, NAFIs/entities use Standard Form (SF) 1094 (U.S.Tax Exemption Certificate) to establish and document 

tax-exempt status. SF 1094 is used only for transactions where the State and local tax is $10 or more. 

4–17. Foreign taxes 

It is OSD policy (DODD 5100.64) to secure, to the maximum extent practical, effective relief from all foreign taxes 

where the economic burden would, in the absence of such relief, be borne by the NAFI/entity. Therefore, NAFIs/ 

entities located in foreign countries will not pay to, nor collect for, any foreign country or political subdivision any tax 

unless the United States has consented to levy collection by treaty, convention, or executive agreement. 

4–18. Concessionaire and contractor-operated programs 

Concessionaire and contractor-operated programs are private businesses and not instrumentalities of the United States. 

Nonappropriated fund instrumentality/entity privileges and immunities herein do not apply to such concessionaires or 

contractors. Concessionaire-operated activities on a garrison are subject to State and local sales use taxes. 

4–19. Private organizations 

Private organizations (POs) are not instrumentalities of the Federal Government. There are no contractual and/or other 

arrangements between NAFIs/entities and POs to avoid the imposition of host country, State, or local taxes on PO 

transactions, or to authorize NAFI/entity support beyond that authorized by statute, DODI 1000.15, DOD 5500.7–R, 

paragraph 3–211, or AR 210–22. 

4–20. Communications with taxing authorities 

a. Except as provided for in this chapter, all matters involving attempts to impose taxes upon or to require collection 

of taxes from NAFIs/entities by the Federal Government, a State, the District of Columbia, a possession of the United 

States, Puerto Rico, or a foreign nation, or any political subdivision thereof, will be reported in detail prior to any 

payment or collection, through the local staff judge advocate (SJA)/command judge advocate to Department of the 

A r m y , O f f i c e o f T h e J u d g e A d v o c a t e G e n e r a l , A T T N : D A J A – K L T , 1 7 7 7 N o r t h K e n t S t r e e t , R o s s l y n , V A 

22209–2194. 

b. Nonappropriated fund instrumentalities/entities will not conduct negotiations with taxing authorities without the 

express authorization of the Judge Advocate General (TJAG) through the installation SJA. 

Chapter 5 

Funding 

Morale, Welfare and Recreation programs are resourced from either APFs or NAFs or a combination of both. NAF 

expenditures for valid MWR purposes are not an augmentation of appropriations. 

Section I 

Appropriated Funding 

5–1. Appropriated funds 

The basic financial standard for all categories of MWR programs is to use APFs to fund 100 percent of costs for which 

authorized. Chapter 16 outlines DOD minimum standards and addresses additional Army supplemental standards issued 

annually in budget instructions disseminated by FMWRC (IMWR-FM). Additionally, specific authorizations for APF 

support to MWR are contained in appendixes D and E and elsewhere in this chapter. The following also pertains to 

APF support provided to MWR programs: 

a. Direct appropriated fund support. Direct APF support represents the funding MDEP that is under the budgetary 

purview of the Director, FMWR. These MDEPs include QDPC, QCCS, and QYPD. Such support is generally limited 

to categories A and B MWR programs. Appropriated fund support for the various elements of resource is detailed in 

appendix D. All APF support to MWR programs is reportable (see chapter 16). 


. Indirect appropriated fund support. Indirect APF support is normally received through use of basic garrisonwide 

services, such as those provided by the Director of Public Works (DPW) for utilities and grounds and facility 

sustainment, restoration, and modernization (SRM). The nonreimbursed portions are reportable as support to MWR 

programs through DFAS accounting systems (see chap 16). 

c. Common Morale, Welfare and Recreation support. Common MWR support is part of the management overhead, 

whereby APF support is authorized to fund the management, administration, and operation of more than one MWR 

program or activity, and where such support is not easily or readily identifiable to a specific MWR program or to 

solely category C MWR programs. Such support includes functions of executive control and essential command 

supervision (ECECS), central accounting, civilian personnel office, common warehousing, central procurement, central 

marketing, and other such consolidated functions. Appropriated fund is identified and reportable to FMWRC (see chap 

16). Family and Morale, Welfare and Recreation Command will prorate the management support among the three 

MWR program categories. 

d. Other services. Other services include incremental or incidental APF support to MWR programs. Other services 

include those services associated with protecting health and safety and are commonly supplied and provided as a 

command function to all installation employees and organizations and are not reportable as APF support to MWR 

programs (see appendix D for examples of other services). 

e. Identifiable support. Appropriated fund support is identifiable through various APF intra-agency or interagency 

personnel or manning authorization documents, common metering devices, or through engineering, accounting, financial, 

or statistical procedures, methods, and standards. 

f. Support agreements. Nonappropriated fund instrumentalities/entities and installation/garrison support elements will 

enter into agreements on the type of support required and resources to be expended. Appendix D and this chapter are 

used to determine whether services are to be APF or NAF funded. When a service is not authorized APFs, but the 

support element provides the service, the NAFI/entity will reimburse the Government for such service based upon the 

support agreement or independently contracts and pays for the service. 

5–2. Utilization, support, and accountability 

a. The MWR USA funding practice is applicable to MWR entities not participating in UFM (para 5–3). The MWR 

USA funding practice is designed to give more flexibility to garrison commanders to effectively maintain and improve 

quality of life for Soldiers. Garrison commanders and APF and NAF resource managers may execute an MOA to use 

NAFs to provide APF-authorized services in support of MWR programs, with subsequent payment to the NAFI/entity 

for these services from APFs. (Sample format is found in the MWR USA budget guidance issued annually by FMWRC 

and found at web site www.armymwr.com.) The MWR USA funding practice can be used to finance personnel 

services, supplies, furniture, fixtures and equipment, routine maintenance, and other operating expenses for those 

program groups identified in paragraph 5–2b. Appropriated funds for this purpose will be limited to the operating 

accounts. MWR USA may not be used for construction (MCA). 

b. The MWR USA funding practice may be used only for MWR programs (Program Group I), as listed in the 

annual MWR USA budget guidance published by FMWRC, the exchange service (Program Group II), Stars and Stripes 

(Program Group V), and U.S. Military Academy mixed-funded athletic or recreational extracurricular programs 

(Program Group V). Specifically excluded are programs of civilian welfare funds, non-MWR Family programs (Army 

Community Services, Army Family Team Building, Army Family Action Plan, Family Advocacy Program), Fisher 

Houses, Vehicle Registration, Army lodging, veterinary services, recycling, sale of abandoned personal property, all 

other supplemental mission programs, and all other non-MWR garrison functions. 

c. Responsible commanders will ensure that— 

(1) Morale, Welfare and Recreation USA funds are spent only for items/services authorized to be provided from 

APFs, in accordance with appendix D of this regulation and AR 570–4. 

(2) An MOA is executed and approved by the responsible commander prior to the obligation and/or payment of 

APFs to a NAFI/entity. 

(3) Both APF and NAF budgets are revised and approved in accordance with applicable provisions, prior to the 

obligation and/or payment of APFs to a NAFI/entity. 

(4) Appropriated funds are promptly obligated in accordance with the terms of the MOA once funding authorization 

documents (FADs) are received. 

(5) Nonappropriated fund accounting and budgeting procedures as outlined in the annual NAF budget instructions 

are followed. 

(6) Memorandum of agreements and applicable budgets are revised as necessary if program requirements and/or 

circumstances change during the fiscal year. 

(7) The provisions of 31 USC 1341 and 10 USC 2783 regarding fiduciary responsibility for both APFs and NAFs 

are fully followed. 

d. Nonappropriated fund financial management and accounting offices will— 

(1) Ensure that the NAF accounting policies and procedures prescribed in the annual NAF budget instructions are 

implemented. 


17

(2) Refer to the appropriate IMCOM Region and/or FMWRC any questionable expenditure of MWR USA funds for 

resolution. 

e. A MOA will be executed outlining in narrative the MWR programs to be supported, the services to be provided 

to the MWR program by the NAFI/entity on behalf of the government, the amount of payment for such services (not to 

exceed the cost of providing the services), and the obligation and payment schedule (monthly/year-to-date) for the 

MWR USA funds. This MOA will be signed by the DRM and the Director, FMWR (or equivalent), approved by the 

responsible commander, and forwarded to the responsible IMCOM Region for review. The MOAs for IMCOM Region 

headquarters and DA elements will be forwarded to the next staff level for review. The NAFI/entity will bill for 

expenses prior to the execution of the MOA. 

f. All funds provided under the MWR USA funding practice, which will not be obligated by the NAFI/entity before 

the obligation authority of the source appropriation expires, will be promptly identified to the APF resource manager. 

This action will allow those funds to be obligated for other requirements. 

g. MWR NAFI/entity positions not participating in the UFM and encumbered by APF employees will not be 

converted to NAF positions. Vacant APF positions may be converted to NAF positions and the MOA may be modified 

to include those services to be provided by the NAFI/entity. However, if an unencumbered APF position is converted 

to NAF or contract, it will not be converted back to an APF position. This does not preclude hiring a temporary NAF 

employee paid for by USA Income during the time required to fill the APF position. The temporary NAF employee 

holding the APF position will be terminated upon appointment of an APF employee to the existing position. When a 

vacant APF position is converted to NAF or a temporary NAF employee is hired pending fill of the APF position, the 

associated personnel dollars will be transferred to operations dollars to pay the NAFI/entity for the services provided. 

h. APFs, and therefore MWR USA funds, will not be authorized to support any resale/revenue generating program 

or activity, even within category A or B programs. This does not include those programs or activities that charge only 

nominal user fees to recoup NAF expenses. 

i. All APF support to be provided under the USA funding practice in accordance with the terms of the MOA will be 

executed in elements of resource 25FC (MWR Utilization, Support, and Accountability (USA)-Non-Pay, and 25FD 

(MWR USA–Pay). All APFs for base operations support, to include that provided through the MWR USA funding 

practice, will continue to be included in APF budgets, garrison accounting records and financial reports, and in exhibits 

and reports submitted to the Congress according to DOD 7000.14–R and DODI 1015.15. 

j. APFs will be obligated on DD Form 2406 (Miscellaneous Obligation Document). These obligations will be based 

on the MOA, which is the supporting document for the DD Form 2406. 

k. Each NAF position included under the USA funding practice must be a position authorized to be supported with 

APFs in accordance with chapter 14 and appendix D of this regulation. Each such position will be annotated on the 

NAF Personnel Requirements Document (PRD) as APF-authorized/eligible to be supported by USA income. NAF 

personnel costs eligible to be supported by USA income will include salaries, benefits, and incentives authorized in 

accordance with AR 215–3. NAF positions eligible to be supported under the USA funding practice are not limited to 

vacant APF positions, which are converted to NAF. Historically, there have been numerous NAF positions authorized 

to be supported with APFs but for which no space authorizations were available. These positions will be annotated on 

the NAF PRD as APF authorized/eligible to be supported by USA Income and included under the USA funding 

practice, subject to funding constraints. 

l. The APF tables of distribution and allowances (TDA) will be annotated as follows for positions that are either 

converted to NAF or privatized: 

(1) Authorization converted to NAF under USA funding practice: 

(a) Child care, CW. 

(b) Youth Services, AW. 

(c) Other MWR, UW. 

(2) Authorization privatized: 

(a) Child care, CZ. 

(b) Youth Services, AZ. 

(c) Other MWR, BZ. 

m. The DOD/OPM Interchange Agreement regarding portability will permit both APF and NAF employees to apply 

for all vacancies. When employees move between the APF and NAF employment systems, the provisions of portability 

may apply, depending on the break in service between the two systems. Management will request use of this authority 

each time they recruit for a position. 

n. If an APF position is vacated, it may either be filled as an APF position or converted to a NAF position under the 

MWR USA funding practice. The APF resignee or retiree may apply for the NAF position, as well as all other 

interested, qualified, and eligible applicants. An employee who accepts Voluntary Early Retirement Authority of 

Voluntary Separation Incentive Pay and then accepts a NAF position within 5 years after the date of separation will be 

required to repay the entire amount of separation incentive. Additionally, an employee who receives separation pay will 

not be eligible for NAF employment for a 12-month period beginning on the effective date of the employee’s 

separation. Waivers of these reemployment restrictions can be granted. 


o. FMWRC will issue annual financial management procedures detailing accountability for APFs executed through 

the MWR USA funding practice. 

5–3. Uniform funding and management 

a. UFM is the merging of APFs with NAFs for the purpose of providing MWR support services using NAF rules 

and procedures, thereby reducing duplication of effort and providing better visibility on MWR program costs. UFM 

allows for the immediate obligation, accrual, expense, and disbursement of APF prior to goods or services being 

acquired by the NAFI/entity supporting the eligible programs. UFM also allows for the transfer of APF and NAF to be 

based on an established MOA between NAFIs/garrison MWR operating entities and Army resource managers. 

b. The practice of UFM will result in no increase or decrease to the funding of MWR. UFM will focus on the direct 

APF support the Government provides for MWR (primarily MDEP QDPC, QCCS, and QYDP). Other support, termed 

indirect, will continue to be provided with no change to the accounting and reporting procedures. 

c. Authority for UFM is 10 USC 2491. It is limited to MWR programs as defined in chapter 3, this regulation, and 

the exchange service and Stars and Stripes. P.L. 108–375 expanded applicability of UFM to the military services’ 

academies’ athletic and recreational extracurricular programs. Other well-being programs, such as Army Community 

Service (ACS) may not currently benefit from UFM. 

d. UFM will involve preparation of a MOA between the APF resource manager and the MWR manager outlining 

the APF-authorized MWR to be performed by the NAFI/entity garrison, the APF funding, and the up-front payment 

schedule. 

(1) The MOA will serve as the basis for creating the APF obligation and forwarding the money to the NAFI/entity. 

(2) MWR management will employ NAF rules and procedures in execution of the services authorized APF and 

funded per the MOA. 

e. Expenditures authorized APFs and paid in accordance with the UFM process will be recorded in a specially coded 

department on the NAF financial statement. 

f. At year end, the MWR expenses authorized APFs must equal or exceed the UFM income. Any recorded expenses 

excess to the amount of APFs provided as a result of the MOA will be termed APF shortfall. 

g. The following general UFM human resource guidance will apply: 

(1) Vacant MWR U.S. citizen APF positions will convert to NAF and be filled under NAF staffing and policy 

procedures (AR 215–3). Exceptions to this are certain positions retained as APF to fulfill statutory return rights 

obligations until the statutory obligation no longer exists. 

(2) All permanent MWR APF employees may voluntarily convert to NAF in their current position and will be 

formally offered an opportunity to do so. APF employees in temporary positions cannot convert. 

(a) When an APF employee voluntarily converts to NAF under UFM, the employee’s rate of base pay will be set at 

a rate within and not to exceed the pay band to which assigned that is equal to the rate of pay (including locality pay, 

special salary rates, and so on) being received as an APF employee immediately before conversion. 

(b) Pay for wage grade (WG, WL, WS) employees voluntarily converted to NAF Federal Wage Scale positions will 

be fixed at the highest available step within grade that does not exceed the previous wage grade rate of pay. Incentive 

payments will continue for converted APF employees under the same conditions and time limitations as if they had not 

converted. 

(c) APF employees converting to NAF who are serving on overseas transportation agreements will retain the 

entitlements and obligations specified therein related to tour dates and return move funding. 

(d) Once an employee converts, he/she is subject to the rules and regulations that apply to NAF personnel (AR 

215–3). 

(e) The offer to convert to NAF is indefinite. APF employees will not be removed from their position because they 

elect not to convert to NAF. 

(f) Conversion will be without a break in service and will not entitle an employee to severance pay, back pay, or 

separation pay under 5 USC Chapter 55, Subchapter IX, or be considered an involuntary separation or other adverse 

personnel action entitling an employee to any right to benefit under such title, or any other provision of law or 

regulation. 

(3) Specific additional guidance is contained in Uniform Funding and Management–Army Implementation Guidance 

at www.armyufm.com. 

5–4. Remote and isolated sites 

a. The primary criterion for requesting remote and isolated designation is that the garrison has category C MWR 

programs and is unable to maintain financial self-sustainment of these programs. Category C MWR programs (includes 

exchanges and excludes golf courses grounds maintenance) will then be granted an exception to APF funding policy, 

allowing them to receive APF operating support on the same basis as category B MWR programs. 

b. Garrisons must submit the following documentation: 

(1) Installation information. The following installation information is required: 


19

(a) Garrison and location. 

(b) City/state/country. 

(c) Continental United States (CONUS)/OCONUS. 

(d) IMCOM Region area. 

(e) Tour length (12, 24, 36 months). 

1. Accompanied. 

2. Unaccompanied. 

3. Student. 

(f) Installation population. 

1. Military 

2. Civilian. 

3. Family members. 

4. Total. 

(2) Financial capability and performance. 

(a) List all current category A and B MWR programs, with both APF and NAF expenses for current year and 3 

prior years, as outlined in table 5–1. 

APF expenses NAF expenses Total % of APF expenses 

Table 5–1 

APF and NAF expenses, current year (and 3 prior years) 

MWR program Minimum APF authorized 

standard 1 funding 

Category A 85% 

(List all category A programs) 

Category B 65% 

(List all category B programs) 

Notes: 

1 Per DODI 1015.10 (Encl 7). 

(b) Provide a balance sheet for NAF expenditures for the current year and 3 prior years. 

(c) Provide an income/loss statement for category C MWR programs for the current year and 3 prior years. 

(d) Include a capital improvement plan to include equipment, construction, and NAF major construction for the 

current year and 3 prior years. 

(3) Assistance provided. Provide the degree of assistance provided from the IMCOM Region or higher headquarters 

(FMWRC). Assistance includes monetary or staff visits, to include dates, amounts, projects, and results. 

(4) Management review and support. Explain how category C programs are being managed to meet community 

needs within local constraints, for example— 

(a) Adequately capitalized. 

(b) Impacting the garrison MWR operating entity. 

(c) Not overbuilt for military community needs. 

(5) Alternative category C programs. List installations and/or local communities with distances from subject 

installation/site. Explain applicable problems such as— 

(a) Cost prohibitive (high cost/tourist area). 

(b) Language/culture barrier. 

(c) Extreme year-round or seasonal environmental conditions exist that would prevent off-base recreation. 

(d) Distance problems. 

(e) Security restrictions or conditions that would seriously impact use of on-base or off-base category C MWR-type 

programs. 

c. Additionally, garrisons will document and explain any extenuating circumstances that seriously hinder the 

operation of the garrison’s category C MWR programs, to include where applicable— 

(1) Geographic separation. Installations or sites with fewer than 3,000 active duty military personnel assigned that 

are at least 30 minutes commuting time (during normal driving conditions) from a civilian community or other military 


installation that has three or more different category C-type programs, with one or more being a bowling center, golf 

course, or marina. 

(2) Customer fluctuation. Population fluctuates because of significant temporary increase or decrease in personnel 

assigned for training or other temporary purposes. 

(3) Environmental factors. Some environmental factors will prevent category C MWR programs from being profitable, 

such as— 

(a) Currency fluctuation. 

(b) Logistic support. 

(c) Personnel (local labor issues). 

(d) Security (special security conditions that seriously impact use of on-base or off-base category C MWR-type 

programs). 

(e) Short tour location (fewer than 36 months accompanied; fewer than 24 months unaccompanied; reason installation 

is designated as short tour). 

d. Garrisons may submit documentation requesting remote status, which requires OSD approval, through their 

IMCOM Region and IMCOM HQ to the Commander, Family and Morale, Welfare and Recreation Command, 4700 

King Street, Alexandria, VA 22302–4419. 

e. Garrison commanders at locations currently designated as remote and isolated will continually review the 

justification for remoteness. When circumstances change substantially and the criteria for their remote designation are 

not met, garrison commanders will advise FMWRC of the change and request deletion from the remote designation 

listing at table 5–2. 

Table 5–2 

Remote and isolated garrisons approved by DOD 

Country 

Garrison 

Germany East Camp Grafenwoehr (to be removed end of FY 2007) 

Italy 

Japan 

Korea 

Saudi Arabia 

The Netherlands 

Hohenfels Training Area 

South Camp Vilseck 

Camp Darby 

Akizuki Ammunition Depot 

Torii Station 

Sagami General Depot 

Sagamihara Housing Area 

Camp Zama 

Camp Jackson 

Camp Hialeah 

Camp Humphreys 

Camp Henry 

Camp Walker 

Camp Casey 

Camp Hovey 

Camp Red Cloud 

Camp Stanley 

Camp Carroll 

Camp Long 

Camp Eagle 

Yongin 

K–16 

All garrisons 

598th Transportation Terminal Group 


21

Table 5–2 

Remote and isolated garrisons approved by DOD—Continued 

Country 

United States 

Garrison 

Kilauea Military Camp (KMC) 

Fort Wainwright 

Fort Greeley 

Yuma Proving Ground 

Fort Irwin 

Pohakuloa Training Area 

White Sands Missile Range 

McAlester Army Depot 

Dugway Proving Grounds 

Fort McCoy 

Pine Bluff Arsenal 

Sierra Army Depot 

5–5. Base realignment and closure and Global Defense Posture Realignment 

a. Base realignment and closure locations— 

(1) At designated base realignment and closure (BRAC) locations, category C MWR programs may be considered 

“remote and isolated.” This means that category C MWR programs (excluding golf course grounds maintenance) may 

be authorized the same funding as category B MWR programs (see app D) using available APFs. The timing of such 

authorization will be determined by the garrison commander, in coordination with the IMCOM Region, in order to 

provide essential needs and support a reasonable level of service to the remaining population. 

(2) Conversion of a position from NAF to APF will be prohibited after the closure announcement. 

(3) APFs may finance costs that are a direct result of an approved BRAC action. Those costs will include, but are 

not limited to, permanent change of station (PCS) for NAF employees, NAFI/entity unemployment and severance 

payments associated with NAF personnel, and facilities construction. NAFI/entity realignment and closure costs are 

authorized funding from all BRAC accounts, not only the Reserve Account. NAFs are prohibited from funding the 

disposal of excess or surplus property disposal or unemployment compensation resulting from a BRAC action. 

(4) Policies on the disposition of NAF personal property and proceeds from the sale of NAF personal property are 

addressed in chapter 17. 

(5) Proceeds from the sale of NAF real property or facilities transferred or disposed of in connection with the 

closure or realignment of a military installation are deposited in a Reserve Account created by 10 USC 2687. These 

funds may be used without further appropriation for the purpose of acquiring, constructing, and improving real property 

and facilities for NAFIs/entities. 

(6) The IMCOM Region as successor NAFI will monitor the closing of the installation to ensure the prudent 

expenditure of NAF and disposition of property. A terminal audit will be performed to identify the amount of residual 

NAF assets or liabilities to be transferred to the successor NAFI. The terminal audit will also identify the book value of 

NAF assets, the proceeds of which transfer or disposal will be identified for future claims against the Reserve Account. 

NAF contracts will be terminated, as necessary, through the supporting NAF contracting office. 

(7) Continued operation of MWR programs to serve the remaining active duty population at installations that have 

closed is addressed in chapter 8 (sec III). 

(8) More specific information on MWR BRAC related actions is contained in FMWRC guidance on Army BRAC 

installations. 

b. Global Defense Posture Realignment locations— 

(1) IMCOM Directors and garrison commander will make final decisions on whether to continue to deliver MWR 

programs at overseas closing locations (areas other than the 50 United States and the District of Columbia) in order to 

provide services to the remaining population. 

(2) When it is determined that MWR programs be continued at overseas closing locations, category C MWR 

programs (includes AAFES and supplemental mission NAFIs) are authorized the same level of APF support as that 

authorized for category B MWR programs. Available APFs may be used for manager personnel; custodial and 

janitorial service; printing and reproduction, supplies, equipment, Internet operations, data automatic, and sustainment 

and restoration to keep facilities in good working order (see app D and glossary of terms). 


(3) APF support is not authorized for functions related to the sale of merchandise or services. APFs authorized for 

categories A and B MWR programs will not be diverted to support category C MWR programs. 

5–6. Special security conditions 

a. Additional APF support is authorized for garrisons to continue their category C MWR programs (excludes golf 

courses) during force protection conditions (FPCON) at CHARLIE and DELTA. APF support to categories A and B 

programs will not be diverted for this purpose. Such garrisons may not be capable of self-sufficiency because of special 

security conditions, such as continued threat of terrorist attack, civil disorder, political unrest, or criminal activity, that 

prevent authorized personnel from using on and off-base recreation facilities. 

b. The level of additional APF support authorized to be provided during such periods will be limited to the 

minimum necessary to ensure program availability. The APF support is further limited to civilian personnel with 

garrison management and supervisory functions of the program with the exception of personnel directly and primarily 

involved in resale; utilities and rents; and custodian and janitorial services (see appendix D). 

c. Additional APF support is authorized to operate category C MWR programs only during such periods as 

necessary to help sustain their capability to generate NAFs to support category B MWR programs and to maintain 

force readiness. The purpose is not to subsidize category C MWR programs to preclude a financial loss. Additional 

APF support will be absorbed within current resources. APF support to categories A and B MWR programs will not be 

diverted for this purpose. If costs are covered by other contingency funds, this authority may not be implemented. 

d. This authority is available only to programs located on an installation designated under FPCON CHARLIE and 

DELTA by the combatant commander, military service chief, or equivalent DOD civilian. Individual installations may 

upgrade their FPCON; however, they are not eligible for additional APF support unless the FPCON upgrade is ratified 

by the combatant commander, military service chief, or DOD civilian exercising equivalent authority. The APF 

authority will be discontinued at the end of the same fiscal year quarter during which the designated FPCON is 

disestablished or downgraded. 

e. APF support will be reported in the annual report on APF support to MWR programs by element of expense in 

Schedule A to APF and NAF Expense Summary required by DODI 1015.15 (encl 7, att 4). 

Section II 

Nonappropriated Fund Funding 

5–7. Army Morale, Welfare and Recreation Fund 

See paragraph 16–8, this regulation. 

5–8. Region oversight morale, welfare, and recreation funds 

a. Region single MWR funds. This is a separate region NAFI, which consolidates all garrison funds within the 

region, as well as centralized functions for the garrisons within the region, such as procurement, financial management, 

civilian personnel, marketing, and so on. Defense Logistics Agency (DLA) NAFIs will remain separate NAFIs, as well 

as specific supplemental mission NAFIs. 

b. DLA MACOM oversight and single MWR funds. These are MWR funds established by HQ, DLA, to include DLA 

garrison MWR funds, which are excluded from the IMCOM Region structure. DLA directors will assume the same 

responsibilities as those for IMCOM Region directors (see chap 2). Policies in this regulation will apply to DLA MWR 

funds and programs. 

c. Responsibility. The Region single-fund management will provide oversight of garrison MWR operating entities, 

including the MWR operating programs and, when necessary, Region single-fund management may subsidize unprofitable 

garrison MWR operating entities, to include cross-leveling funds of MWR fund NAFIs within or among the 

regions. 

d. Army-level requirements (ALR) self-sufficiency exemption (SSE) requests. Region directors may submit ALR SSE 

requests to FMWRC. An SOP on the ALR SSE program will be issued separately by FMWRC via the MWR Web site, 

www.armymwr.com. 

5–9. Garrison morale, welfare, and recreation operating entity 

a. The garrison MWR operating entity is an integral part of the IMCOM Region single MWR fund. The term refers 

to the group of MWR programs offered at the installation that fall within the garrison commander’s responsibility 

(previously referred to as the “installation MWR fund”). 

b. Garrison-level NAFs will be generated primarily by local sales of goods and services and user fees and charges. 

c. NAFs generated by each MWR program will be pooled into the IMCOM Region single MWR fund and allocated 

to MWR programs based on garrison priorities and the provisions of this regulation. 

5–10. Supplemental missions 

a. Supplemental mission funds/NAFIs are quality of life adjuncts to APF mission programs, other than those 


23

ecognized as MWR programs. NAFs generated and the expenditure of those NAFs is restricted to the purposes of the 

supplemental mission fund/NAFI. Supplemental mission NAFs will not be used to support the training, lodging, food 

service, security or other functions of the official mission. Expenditure of supplemental mission NAFs is authorized to 

support the operational functions of the supplemental mission, such as procurement of items for resale and management 

of NAF resources. More specific authorized expenditures of supplemental mission NAFs may be described in separate 

regulations (for example, AR 608-1, app J, Family Readiness Groups). APF support to the APF mission for which 

these supplemental mission funds/NAFIs are designated is not APF support to MWR. 

b. NAFs generated by SMs will not be used to subsidize MWR programs, nor will NAFs generated by MWR 

programs be used to subsidize SMs, unless authorized elsewhere in this regulation or other regulations. 

c. Some SM funds are consolidated within the IMCOM Region single MWR fund and some are established as 

separate NAFIs. Accounting for SM funds as part of the IMCOM Region reduces overhead expenses in the operation 

of a separate NAFI. At some garrisons, the school lunch program and museum funds are consolidated within the 

IMCOM region single MWR funds; at other garrisons, they are separate NAFIs. 

d. Examples (the list is not all-inclusive) of SMs funds accounted for within the IMCOM Region single MWR fund 

are— 

(1) ACS (see AR 608–1), which includes voluntary gifts and donations received by ACS activities from private 

sources. 

(2) Veterinary services (see AR 40–905), which are fees paid by pet owners to cover the cost of supplies, drugs, and 

veterinary treatment for the prevention and control of diseases or conditions, which may cause a community health 

problem. The separate user fee added to each transaction is deposited to the U.S. Treasury. 

e. Examples (the list is not all-inclusive) of SM NAFIs excluded from consolidation into the IMCOM Region single 

MWR fund include— 

(1) Army Lodging Funds, which are service charges and fees generated through official travel lodging activities as 

well as through housekeeping services for unaccompanied personnel housing. Funds accrue to separate lodging NAFIs. 

(2) Fisher House Funds, which are fees, gifts, contributions, and other revenue in support of Fisher Houses, an 

extension of medical treatment facilities. 

(3) Vehicle registration funds, which are fees charged to overseas military and civilian personnel to offset costs of 

providing registration and licensing of POVs and NAF vehicles. This service is in accordance with SOFAs. 

(4) USMA funds (see AR 210–3), which includes fees charged for and associated with USMA extracurricular 

activities (Army Athletic Association and Cadet Activities). 

(5) Fort Leavenworth U.S. Disciplinary Barracks Fund, which is income from the sale of goods and services 

resulting from inmate vocational training programs. 

(6) USAREUR Statutory Accident Insurance Fund, which includes the Workers’ Compensation Insurance Program 

and which reimburses the German Government for the German workforce. 

(7) The U.S. Military Academy Prep School. 

(8) Army Historical Museum Funds (see AR 870–20), which includes the Carlisle Barracks Museum and Omar 

Bradley funds. Voluntary contributions or donations, service charges, dues, gift shop revenue, and other income. 

(9) Soldier and Family Assistance Center (SFAC) Donations Fund, which is the central fund for deposits of 

monetary (checks and money orders) gifts/donations. These supplemental mission NAFs are used to provide quality of 

life services, items, and supplies in support of the Warriors in Transition and their Families and for which APFs are not 

authorized to provide. 

5–11. Private property 

Private property such as boats, recreational vehicles, horses, and aircraft owned by individuals and located on Army 

garrisons will be charged fees to cover expenses for services such as storage, utility use, boarding, and the like, 

including overhead expenses. 

5–12. Resale operations 

Except those required to sell at cost, MWR resale operations are self-sustaining, NAF funded, and managed according 

to this regulation (see chap 12). 

Section III 

Authorized and Prohibited Uses of Nonappropriated Funds 

5–13. Authorized use 

Appendix D addresses authorized uses of APFs. MWR NAFs are used only to pay for, or defray the cost of, a wide 

range of MWR programs or functions integral to the functions for which the NAFI/entity was established, unless 

specifically stipulated otherwise in this regulation. Funds from supplemental mission NAFIs support only the requirements 

for which they were established. In all cases, NAFs are used judiciously and not as a matter of convenience. 

MWR NAFs may be expended for authorized APF MWR-related purchases under the DOD MWR USA/UFM funding 


practices (paras 5–2 and 5–3). Otherwise, NAFs will not be used when APFs are available (see appendix D on APF 

authorizations). In addition to authority for using NAFs and prohibitions stated elsewhere in this regulation, the 

following apply: 

a. Awards. 

(1) IMCOM Region directors or their subordinates may authorize the use of APFs to purchase trophies and similar 

devices for award to Soldiers and units according to criteria in AR 600–8–22 (chap 11) for— 

(a) Their excellence in accomplishments and competitions, which clearly contribute to the increased effectiveness or 

efficiency of the military unit. 

(b) Competition in intramural and athletic competitions. 

(2) NAFs may be used to pay cash awards or to purchase savings bonds, equivalent securities, trophies, plaques, or 

other items to recognize civilian and military excellence in athletic or nonathletic competition and proficiency in 

recreational programs or to acknowledge unusual accomplishment supporting special events, as follows: 

(a) Cash, savings bonds, or equivalents will not be awarded in connection with amateur sports competitions when 

prohibited by the cognizant national sports governing body. 

(b) Events and competition that include prizes or trophies will be officially established, announced in advance, 

conducted within a stated period of time, and have uniform eligibility criteria. 

(c) All individuals or organizations supported by the sponsoring NAFI/entity will be given an equal opportunity to 

participate. When limitations are established, such as grade limitations for Soldier-of-the-Month competitions, additional 

programs such as Noncommissioned Officer of the Month will be established to include those segments of the 

community previously excluded. 

(d) Eligibility to participate will be limited to authorized patrons of the sponsoring NAFI/entity unless the garrison 

commander authorizes participation by members of the local community or others to foster community relations. 

(e) The total value of prizes, in cash or any other form, will not exceed $500 for individual, team, or unit awards 

unless higher limits are approved at the IMCOM Region level. FMWRC may approve higher limits for awards for 

specific garrison, IMCOM Region, or Armywide competitions conducted by FMWRC. 

(3) Awards honoring volunteers or gratuitous service personnel at volunteer recognition ceremonies may be purchased 

with NAFs. 

b. Mementos. Mementos (not to exceed $200) may be purchased for presentation to distinguished military and other 

visitors in recognition of their contributions to the Army’s MWR program (or NAFs of non-MWR NAFIs, when 

recognition is related to the purpose for which the NAFI was established). 

c. Incentive awards programs. Such programs for NAF employees are outlined in AR 215–3. 

Note. Incentive awards programs for APF employees are outlined in AR 672–20. APF employees and military personnel are 

excluded from the NAF awards programs but are eligible to participate in the NAF suggestion program and may be nominated for 

award of The Order of the White Plume. 

d. Food and beverages. 

(1) The purchase of food and beverages (to include alcoholic beverages) is authorized from NAFs for distinguished 

visitors, official guests, and others as outlined below. Use of NAFs to defray associated costs (linens, cleaning costs, 

master-of-ceremony fees, entertainment, and decorations) entailed with hosting MWR events and distinguished persons 

is an authorized NAF expense. The following NAF expenditures must support the MWR program and be in keeping 

with rules of protocol and in the best interest of the Army. 

(a) Recognition celebrations in honor of individuals providing voluntary services to missions, which support 

Soldiers and their Family members. 

(b) MWR events open to the entire military community and approved by the garrison commander. Alcoholic 

beverages provided at these events are limited to malt beverages and wine. Events should be of a traditional historical 

or military nature. Dignitaries from the local community may be invited to the MWR event to promote good 

community relations. 

(c) Luncheons, dinners, and special occasions hosting officially invited distinguished visitors or honoring military 

personnel for unique MWR accomplishments, when approved by the garrison commander. NAFs will be used to pay 

food and beverage (including alcoholic beverages) costs of the person being honored and guests accompanying the 

person being honored. All other attendees are required to pay. 

(d) Distinguished visitors officially invited to participate in service school functions, including a limited number of 

students and faculty, and service school students attending receptions, graduation events, and other special occasions. 

Approval by the service school commandant or superintendent is required. 

(e) Receptions or meals provided to registered attendees in conjunction with authorized Army MWR worldwide 

conferences. 

(2) Per diem for meals (or receptions if considered meals) provided per paragraphs 5–13d(1)(c), (d), and (e) will not 

be claimed on the travel voucher if in a temporary duty (TDY) status. 

(3) See program policy in chapter 8 for authorized expense accounts for the purpose of food and beverages. 

e. Civilian employee awards celebrations. Nominal celebratory expenses and refreshments for MWR civilian 


25

employee awards celebrations are authorized with NAFs, subject to the following or similar procedures. Garrison 

commanders must prescribe local procedures and they must withstand the test of public scrutiny. 

(1) Refreshments will be limited to coffee, tea, juice, and/or soft drinks, and fruit, cheese and crackers, and donuts, 

cookies, and/or cake. Banquets, luncheons, or meals are not authorized. 

(2) Celebrations will be infrequent, no more than quarterly, and include a number of employees receiving awards for 

the previous period. 

(3) NAF expenses will be kept to a minimum, commensurate with the frequency of the occasion. 

(4) Monies are budgeted for the ceremonies, within each program. 

(5) Celebrations are limited to MWR program employees, recognizing them for improvements in customer relations, 

customer service, winner of sales contests, and employee of the month, quarter, or year. These celebrations will be 

geared to the program-level employee, rather than garrison, IMCOM Region, or DA-level (ECECS) employees. 

(6) Annual appraisal certificates may be presented, but should not be the basis for holding such celebrations. 

(7) See paragraph 5–14h for prohibited use of NAFs. 

f. Hosting Army Soldier Show. NAFs may be used for expenses involved in hosting the Army Soldier Show. 

Specific hosting requirements are issued annually by FMWRC. Expenses may include lodging, refreshments, and 

meals. 

g. Personalized printed material. NAFs may be used only to purchase business cards used by MWR managers, 

marketing personnel, or other MWR personnel who need to exchange or distribute business cards in the performance of 

their jobs. 

h. Memberships. Professional, trade, or civic association membership dues and fees may be funded with NAFs. 

Membership must benefit the MWR program or NAFI mission and be in the name of the organization (MWR program; 

NAFI; or position, such as Director, MWR), not that of any individual. AR 360–1 prescribes the use of APFs for 

command memberships that support MWR programs. 

i. Professional accreditation. NAFs may be used to pay the cost for NAF employees to obtain and renew 

professional credentials, including expenses for professional accreditation, State-imposed and professional licenses, 

professional certification and examinations to obtain such credentials, when beneficial to the NAFI/entity and subject to 

the following: 

(1) Payment of expenses will not be an entitlement. Continued payment of expenses associated with licenses and 

certification will be discretionary and not guaranteed. 

(2) Priority for payment of expenses associated with licenses and certification and related expenses will be given 

when it is required by appropriate local, State, or Federal Government authority to perform the work required by an 

employee’s position. 

(3) This authority does not apply to payment for academic degrees or fees for membership in professional societies 

or associations. 

(4) Payment will be made on a reimbursable basis upon the successful receipt of the credential. Reimbursement is 

made through completion of SF 1164 (Claim for Reimbursement for Expenditures on Official Business) and will be 

paid from the NAFs used to pay other pay and benefits of the NAF employee. Reimbursement of expenses is not 

retroactive. The employee requesting reimbursement under this authority must have written approval from the appropriate 

approving official prior to incurring the expense. 

(5) An annual report will be required by the Office of the ASA(M&RA) to evaluate the effectiveness of this 

program. The report will be submitted by IMCOM Region through appropriate channels to the Office of the Deputy 

Chief of Staff, G–1 (DCS, G–1) and include, at a minimum, the amount of payments made by job series and grades, 

and race and national origin, and credentials obtained. The Modern Defense Civilian Personnel Data System will be 

modified to provide essential data for program evaluation. 

j. Personnel costs. 

(1) Salary and benefits. NAF personnel-related costs for NAF employees or contracted services will be paid in 

accordance with AR 215–3 and AR 215–4. 

(2) Extra pay. The payment of commissions, fees for services, or any other extra remuneration to NAF employees is 

described in AR 215–3. Restrictions on advance pay for foreign nationals will be waived when such payments are 

permitted by applicable agreements. 

k. Unit funds. Unit funds will be used for the collective benefit of all unit members for off-duty recreational 

purposes as outlined in this regulation. They also may be used to purchase unit histories and related materials for 

presentation to all unit members and new members when they join; for distinctive insignia, when APFs are not 

authorized by AR 670–1; and welcome home celebrations (see para 8–29). Policy on unit fund dividends is contained 

in chapter 6. 

l. NAF limited-term leasing of recreational facilities. 

(1) NAFs may be used to contract for limited-term leases of condominiums, campsites, or other types of recreational 

facilities at off-site locations, for use by authorized MWR patrons for recreation during off-duty times (military units, 

groups, or individuals). 


(2) Lessor will not be exempt from local property taxes, based on immunity as a NAFI/entity. Neither the NAFI/ 

entity nor its patrons are subject to State or local use taxes as a consequence of subleasing to authorized users (see AR 

215–4). 

(3) The lessor must retain liability insurance for injuries or loss occurring on or in leased property. 

m. Reimbursement of volunteer incidental expenses (10 USC 1588). Volunteers may be authorized reimbursement 

for certain incidental expenses in the course of providing voluntary services. Volunteer incidental expenses may be 

paid from available APFs or budgeted NAFs. The commander or official in charge of the sponsoring organization 

accepting the voluntary services will determine that reimbursement is necessary to obtain the voluntary services and 

that the amount to be reimbursed is reasonable in amount and in relation to the value of the voluntary services 

provided, following coordination with the responsible resource manager. Voluntary services may be provided to 

programs providing services to members of the armed forces and their Families, to include, but not limited, to Family 

programs and Family readiness, child and youth services, library and education, religious, housing referral, employment 

assistance to spouses of such members, and MWR. AR 608–1 provides more detailed guidance on determining whether 

to reimburse the volunteers with APFs or NAFs. It also provides guidance on when volunteers are considered 

employees of the Federal Government and the NAFI/entity. Chapter 13 of this regulation provides additional policy on 

volunteers. Funding may be provided on an equitable basis and in accordance with the following: 

(1) Reserve Component (RC) volunteers. To satisfy volunteer reimbursement requirements, the Director, Army 

National Guard (ARNG), and the Chief of Army Reserve may submit ALR SSE requests annually for the subsequent 

fiscal year (see chap 16) to FMWRC for review and approval. Regional Readiness Commands and State Adjutants 

General will be responsible for the accountability of reimbursement expenses in their geographic area. 

(2) Child care for volunteers. Available APFs will be authorized for child care expenses of volunteers. Budgeted 

NAFs may be used only when certified that APFs are not available. NAF expenses may be reimbursed by one of the 

following reimbursement methods, dependent upon the availability of child care: 

(a) Those using alternate child care or approved Family child care (FCC) (see definitions for both in AR 608–10) 

may be reimbursed from petty cash funds using accounting controls described in appendix G of this regulation and 

DOD 7000.14–R, volume 13 (app A). The reimbursement amount will not exceed the appropriate child development 

center (CDC) hourly rate or approved range of FCC fees for equivalent care. 

(b) Those using the CDC will sign for services rendered at the CDC on their agency specific sign-in sheet. The signin 

sheet will be attached to the daily activity report (DAR) and forwarded daily to the CAO for accounting as an 

interactivity expense transfer. Copies of sign-in sheets will be sent to the user agency monthly at a minimum for 

reconciliation. Programs using interactivity expense transfer will ensure that funds are available to cover child care 

expenses. To verify hours eligible for reimbursement, volunteers will be given a voucher to present to the CDC when 

their child is picked up. Child care over and above the time indicated on the voucher will be the responsibility of the 

volunteer. 

(c) Responsibility for resolving discrepancies between CDC sign-in sheets and actual hours contributed rests with 

the sponsoring organization. To prevent abuse, sponsoring organizations will review sign-in sheets and follow up on 

discrepancies. 

(3) Training. Funding will be authorized for volunteer training to include enrollment expense, travel, and per diem, 

held at another site, if it is determined that the supported organization would benefit from the offsite training. 

(4) Funding for travel. APF and NAF funding for travel will be in accordance with the JFTR and Secretary of the 

Army Travel Policy Army Directive 2005–01. Generally, when a volunteer spouse or other qualified individual is 

selected to serve as a member of the delegation to an official conference concerning Army Family programs or quality 

of life/well-being issues, the organization that is sponsoring the conference may authorize the sending command to 

issue invitational travel orders (per diem authorized) for that volunteer’s travel if certain conditions apply. Those 

conditions are detailed in Army Directive 2005–01. 

(5) Telephone bills. Reimbursement for long-distance telephone calls made as a result of volunteer duties will be 

authorized if documented and approved in advance. 

(6) Mileage and parking. Use of a POV to perform volunteer duties is a reimbursable expense. Current Government 

rates (see the Joint Travel Regulations (JTR)) will be used. Necessary parking fees incurred in the course of performing 

voluntary services is a reimbursable expense. A receipt is required to receive reimbursement. 

(7) Newsletters. Family readiness groups may use Government printing supplies and equipment and APF for postage 

for command authorized newsletters containing information that is otherwise unofficial, when the local commander 

determines that its dissemination may improve morale or esprit de corps. An unofficial item may be included only if it 

is not otherwise prohibited by DOD 4525.8–M, it does not exceed 20 percent of the printable space used for the 

official items, there are no increased costs to the Government, and it does not include personal wanted/for sale 

advertisements. (Newsletter content is official when it is educational, promotes unit cohesion, and is related to unit 

mission, Family readiness group programs, and Family and unit readiness.) (Unofficial information is nonmission 

related and more personal in nature, such as birth announcements, anniversaries, birthdays, recipes, fund raising for 

private organizations, and other similar events.) NAFs or funds generated by Family readiness groups may be used for 


27

mailing unofficial newsletters and to mail newsletters containing official information when APFs are authorized but 

certified not available. 

(8) Food and beverage. Refreshments and other food and beverage furnished to volunteers normally are not 

considered incidental reimbursable expenses except— 

(a) Volunteer spouses of Soldiers authorized to use APF dining facilities may be reimbursed with NAFs for the 

difference between the discounted and standard meal rate charged at APF dining facilities. 

(b) If a volunteer from the local area is providing a service in support of an official conference concerning Army 

Family programs or quality of life/well being issues, the costs for food and beverage, with the exception of alcoholic 

beverages, may be reimbursed by the organization sponsoring the conference. (JTR, para C2400–B, may be used in 

establishing the “local area” for this purpose.) The costs of the food and beverages will not exceed Government per 

diem and be provided only on the day(s) of the voluntary service. 

(c) As with other payments to volunteers, prior approval of the reimbursement by the sponsoring organization 

officer or official in charge will be required as outlined in paragraph 5–13m. 

(9) Recognition. Contributions and achievements may be acknowledged through appropriate recognition celebrations 

funded with NAFs. Recognition programs may include presentation of mementos, nonmonetary awards, certificates, 

and identifying insignia, and the purchasing of food and beverages for those persons being recognized. 

n. Child care for Family members of military personnel attending installationwide newcomer orientations. Reimbursements 

of child care expenses for Family members of military personnel attending installationwide newcomer 

orientations may be funded from locally available NAFs. NAF reimbursement methods are the same as for child care 

for volunteers (see para 5–13m). 

o. Foster Grandparent Program (APF and NAF funding). 

(1) Use of APFs for Foster Grandparent Program participants will be limited to Family advocacy cases involving 

suspected or substantiated child abuse or neglect and only when the Family Advocacy Case Review Committee 

determines that— 

(a) Foster grand parenting is required to prevent further abuse or neglect or as part of an ongoing program of 

treatment. 

(b) The parents or guardians of the child are unable to pay the cost of such services. 

(2) Garrison commanders may authorize use of local NAFs in situations where APF use is not authorized. 

p. Commercial printing. NAFs may be used for commercial printing of material containing commercial advertisements 

and commercial sponsorship (see chap 11). 

q. Programs closely associated with MWR programs. Limited MWR NAFs will be authorized to enhance the 

delivery of non-MWR programs closely associated with MWR programs or morale of Soldiers, Families, or DOD 

civilians. NAFs will be authorized only when APFs are not authorized. Historically, NAFs are used to support such 

programs as Army Family Team Building, Army Family Action Plan, Soldier of the Year, Commandant’s school 

activities, overseas scouting, reimbursement of volunteer incidental expenses, and Army Community Service. Examples 

of limited NAF expenditures include mementos, hosting, recognition celebrations, nonmonetary awards, distinctive 

clothing, food locker items, and promotional items. 

r. Promotional items. NAFs will be authorized to purchase promotional items used in marketing MWR programs. 

Promotional items include T-shirts, pens, hats, key chains, mugs, seasonal promotional greeting cards sent by MWR 

organizations, and other items of a single nominal value. Promotional items may be inscribed with the name of the 

activity or an MWR program, but they cannot be personalized (names of individuals). 

5–14. Prohibited uses 

a. Public scrutiny. NAFs will not be used for any purpose that cannot withstand the test of public scrutiny or which 

could be deemed a misuse or waste of Soldiers’dollars. 

b. Authorized APF expenditures. NAFs will not be used to pay costs in acquiring items or services authorized to be 

paid from APFs when APFs are available (except under DOD MWR USA/UFM funding practices, see paras 5–2 and 

5–3). However, NAFs may be used— 

(1) When the appropriate official certifies in writing that authorized APFs cannot satisfy the requirement. 

(2) When functions, programs, and activities to be funded with NAFs are integral to the functions for which the 

NAFI/entity was established, unless otherwise specified elsewhere in this regulation. 

c. Support of POs. NAFs or NAF assets will not be transferred to POs as dividends or other distributions. NAFIs/ 

entities will not provide NAF financial assistance in the form of contributions, repairs, services, dividends, or other 

donations of money or other assets to private organizations or individuals unless authorized by other regulations, DOD 

policies, or law. For assistance to Scouting organizations, see DODI 1015.9. 

d. Distributions to charities. NAFIs/entities will support only those programs and functions for which the NAFI/ 

entity is organized. NAFIs/entities do not contribute to or engage in fundraising activities for charities, foundations, and 

similar organizations nor collect or disburse donations of private or personal nature. 


e. Real property. Purchase of real property (land, buildings, and other fixed improvements) will be limited to the 

acquisition of commercially owned buildings on Government property. 

f. Garrison MWR operating entity revenue deposits. Revenues generated from a defined MWR program will be 

deposited in accounts at the IMCOM Region and used only for reinvestment in the MWR program, unless otherwise 

authorized in this regulation. 

g. Supplemental mission income or expenses. Supplemental mission programs may be accounted for in the Region 

single MWR fund. The income generated by supplemental mission programs may be used only to support the specific 

program or function for which the account was established including their NAF capital expenditures and fund 

management overhead. Other MWR NAFs will not be transferred to or expended from supplemental mission accounts, 

and supplemental mission NAFs will not be expended for the MWR mission. As an example, donations designated for 

ACS may be deposited in the Region single MWR fund ACS supplemental mission account. The amount deposited 

will be used only to support the ACS mission and other MWR NAFs are not used to supplement the ACS account 

(unless authorized elsewhere in this regulation.) 

h. Food and beverages. NAFs will not be used to pay for refreshments or meals for any person except as described 

in this regulation. 

i. Non-MWR functions. 

(1) NAF payment for any expense involved in a change of command or retirement ceremony, command representation, 

protocol function, scholarships, free mailing or postage, unit ceremonies, or any other specific benefit for select 

individuals or groups will not be authorized. 

(2) Items for retirements, funerals, or other such personal-type events will not be purchased with NAFs. 

(3) NAFs will not replace or supplement appropriations for public affairs, medical, religious, or other activities or 

programs that are outside the purposes for which the NAFI/entity was established. 

(4) NAFs will not be used for costs of employees who are not performing duties directly related to the NAFI/entity 

function or mission. 

j. No proprietary interest. Individuals, units, organizations, garrisons, or installations do not have proprietary interest 

in NAFs or NAFI/entity assets. 

k. Personal items. NAFs will not be used for personal items, such as memo pads including personalized memo pads 

used at work, or personal greeting cards. 

l. Personal loans. NAFs will not be loaned to individuals, either in cash or as an advance payment of wages or 

allowances, except as provided for in AR 215–3. 

m. Payments to individuals. Cash, securities, or other NAF assets will not be paid to individuals, except for awards 

and other recognition programs provided for in this and other regulations. Payments to individuals for service contracts 

or for costs associated with administering the NAF personnel system prescribed in AR 215–3 are not considered 

payments to individuals. 

n. Contracts. 

(1) NAF contracts with military or civilian APF or NAF employees will be prohibited except as authorized by AR 

215–4. Common law rules to determine whether an individual is an independent contractor are in DOD 7000.14–R, 

volume 13. 

(2) NAFs and NAF contracting personnel and procedures will not beused for APF purchases. NAF contracting 

offices cannot obligate APFs. 

o. Sale of drug paraphernalia. NAFIs/entities will not purchase, distribute, or sell any material, device, or equipment 

that is known to be used in conjunction with illegal, illicit, or prohibited drugs of any type. 

p. Dual funding. NAFs will not be used to— 

(1) Duplicate or augment authorized individual or unit awards financed from APFs. 

(2) Augment APF construction (see chap 15). 

q. Political activities. See AR 360–1 pertaining to election year policies. 

(1) NAFs will not be used directly or indirectly for any personal service, advertisement, e-mail, telephone call, 

letter, printed or written matter, or other communication intended or designed to influence any public official. This 

prohibition does not apply to NAF personnel communicating with or preparing correspondence in response to requests 

from such officials or preparing requests for legislation or appropriations that are necessary in the conduct of official 

business. 

(2) NAFs or MWR facilities will not be used by any candidates for public office, political assemblies, or meetings 

and/or any other activity that could be construed as politically oriented. 

r. Uniform items. NAFs will not be used to purchase any military uniform item (except as authorized in para 5–13), 

including band uniforms or other articles of individual or organizational military equipment. 

s. Military medical treatment facilities services. NAFIs will not pay for the initial emergency medical treatment after 

an on-the-job injury (or illness) (see para 19–87), for physical examinations required as a condition of employment or 

f o r p r e d e p l o y m e n t p h y s i c a l s f o r N A F e m p l o y e e s . P a y m e n t f o r n o n e m e r g e n c y s e r v i c e s i s a p e r s o n a l f i n a n c i a l 

responsibility. 


29

t. APF support. NAFs will not be used instead of authorized APF support as a matter of convenience. 

u. Other. See appendix D for other specific NAF prohibitions. 

Chapter 6 

Unit Funds 

6–1. Guidelines 

a. Generally, installation unit personnel will receive MWR support through participation in MWR programs at the 

installation to which they are assigned or attached or from the coordinating garrison. Separate unit funds will not be 

authorized for units attached to an installation; however, at IMCOM Region direction, those units may receive direct 

monetary NAF support through the garrison MWR operating entity. Garrison commanders may determine the amount 

of NAF support. Such support will be applied equitably to all units or personnel within the installation. NAF support 

provided to installation units is referred to as “unit activities” and will be accounted for within the garrison MWR 

operating entity. 

b. Separate unit funds may be established, managed, and administered at the unit level for— 

(1) Isolated and deployed active Army units (to include RC units when activated for 30 or more days) and full-time 

support (FTS) RC personnel physically located at such a distance from the nearest military installation that requiring 

the use of garrison MWR facilities by Soldiers assigned or attached to the unit would be unreasonable or impractical. 

(2) RC units or personnel on annual training (AT). 

c. The general criteria for expenditure of unit funds and AAFES dividends (NAFs) include-— 

(1) Unit funds must be used for the collective benefit of all unit members for off-duty recreational purposes as 

prescribed by this regulation. 

(2) All unit members must have the opportunity to participate in the activity supported with unit funds. 

(3) Activities must relate to the MWR of the unit members. Family members (and guests) may participate at the 

discretion of the unit members. 


a. Units within CONUS (area of responsibility) that are validated by Southeast Region for payment of isolated or 

remote full-time support dividends will submit their request for unit fund dividend payment, in accordance with 

instructions issued by the Southeast Region, to the coordinating garrison as listed in table 6–1. 

Table 6–1 

Coordinating garrisons 

Fort Lewis 

Fort Irwin 

Fort Huachuca 

Fort Carson 

Fort Riley 

Fort Sill 

Fort Hood 

Fort McCoy 

Installation 

Washington 

Oregon 

Idaho 

Montana 

California 

Nevada 

Arizona 

New Mexico 

Colorado 

Utah 

Wyoming 

Kansas 

Nebraska 

South Dakota 

North Dakota 

Oklahoma 

Arkansas 

Texas 

Wisconsin 

Minnesota 

Iowa 

Michigan 

Area of responsibility 


Table 6–1 

Coordinating garrisons—Continued 

Fort Leonard Wood 

Fort Polk 

Fort Knox 

Fort Campbell 

Fort Rucker 

Fort Drum 

Fort Meade 

Fort Dix 

Fort Lee 

Fort Bragg 

Fort Jackson 

Fort Stewart 

Fort Buchanan 

Missouri 

Illinois 

Louisiana 

Kentucky 

Indiana 

Ohio 

West Virginia 

Tennessee 

Alabama 

Mississippi 

New York 

Connecticut 

Rhode Island 

Maine 

Vermont 

New Hampshire 

Massachusetts 

Maryland 

Pennsylvania 

District of Columbia 

New Jersey 

Delaware 

Virginia 

North Carolina 

South Carolina 

Georgia 

Florida 

Puerto Rico 

Virgin Islands 

Units in South America 

b. There is no requirement that units request or accept NAF support. Units will not request or accept NAFs from 

more than one source. 

c. Coordinating garrisons will request reimbursement from the responsible IMCOM Region (Southeast Region for 

the 48 contiguous States, Puerto Rico, and the Virgin Islands). Other IMCOM Regions will prescribe applicable unit 

fund dividend policy and procedures. 

d. Accounting policy and reporting procedures are prescribed in DOD 7000.14–R, volume 13. 

e. Unit fund councils, governing or nongoverning, may be established at the discretion of the unit commander. 

Composition will be representative of the unit and will include a chairperson and recorder. 

f. The fund manager is the unit commander or an appointed nonvoting designee who signs and approves DA Form 

2 1 0 7 ( N o n a p p r o p r i a t e d F u n d R e c e i p t a n d D i s b u r s e m e n t V o u c h e r ) a n d o t h e r r e q u i r e d p r o p e r t y a c c o u n t a b i l i t y 

documents. 

g. When two or more unit funds are established at a single location, a single unit fund manager may be designated 

to administer each unit fund separately, as directed by the respective participating units. 

h. Unit funds will be exempt from the Army Banking and Investment Program. 

i. Upon disestablishment of a unit fund, all assets will revert to the fund/entity from which the unit fund received 

support. 

j. If the Region single MWR fund resources are not available to support isolated or RC unit requirements, the 

governing IMCOM Region may request support from the AMWRF. Funds derived from other than Federal NAF 

sources as described above (Region MWR single fund, AMWRF) are not subject to the provisions of this regulation 

and are not commingled with Federal NAFs. 

6–3. Reserve Component’s unit funds and Army and Air Force Exchange Services dividends 

a. The Garrison Operating MWR Entity will not purchase items for the exclusive benefit of RC personnel without 

reimbursement from the unit fund; however, standard items of equipment and supplies requested by unit commanders 

are hand receipted without charge. 


31

. FTS personnel will receive the same NAF support given to active Army units in isolated status. 

c. Activated units or personnel will receive the same NAF support given to regular Army units or personnel. 

d. Annual training 

(1) Units training at an installation having a garrison MWR operating entity will receive unit funds from that entity. 

(2) If AT is conducted at an isolated location, remote from an installation with MWR facilities, unit funds may be 

requested from the coordinating garrison upon completion of the training. 

(3) Units with members training on a year-round, modular, or fragmented program that does not entail calling the 

entire unit to AT may request unit funds at the end of the fiscal year from the coordinating garrison, unless otherwise 

directed by the Army Reserve Command. 

(4) Units that cannot fully use unit funds during AT may retain remaining funds for use at home stations. 

e. RC installations on which AAFES operates facilities may receive AAFES dividend payments using the Army 

simplified dividend formula. 

f. Oversight and accountability for NAFs transferred from Federal entities (AMWRF, AAFES dividends, Region 

single funds, or garrison MWR operating entities) to the RC bank account will be the responsibility of the RC. 

6–4. Active duty support elements 

Army readiness groups, RC advisory groups, and Reserve Officer Training Corps (ROTC) instructor groups not located 

on an installation may be considered isolated units and request NAF support as outlined in this section. Strength 

reporting for dividend computation will be prescribed by the responsible IMCOM Region. 

6–5. Assets of Reserve Component units released from active status 

a. Unit funds of RC units released from active duty will remain in unit custody upon return to inactive duty and are 

accounted for as required by DOD 7000.14–R, volume 13. 

b. Property purchased with unit funds of RC units while on active duty may be retained by the units upon return to 

inactive duty or disposed of as prescribed in chapter 17. Property purchased or owned by a garrison MWR operating 

entity or other garrison NAFI and loaned to RC organizations will be returned to the loaning organization. 

6–6. Support of other service elements 

a. Joint service and other DOD elements located on Army installations are entitled to benefits, privileges, and use of 

garrison MWR facilities on the same basis as any Army element. Per capita funding distributions will count personnel 

of tenant organizations on the same basis as personnel of the parent installation. Any request by a DOD element to 

establish or continue a separate NAFI/entity on an Army installation will be forwarded by the garrison commander, 

with appropriate recommendation, through the parent IMCOM Region and IMCOM HQ, to FMWRC at the address in 

paragraph 3–10d. 

b. Army organizations located on installations of other services are entitled to benefits, privileges, and access to 

MWR facilities on the same basis as the host service. For this reason, they cannot be considered isolated units eligible 

to establish separate unit funds. 

6–7. Support of military missions in foreign countries 

a. Military personnel are assigned to military missions such as Defense Attaché Offices, Security Assistance Offices, 

and Military Liaison Teams or are permanently assigned as Technical Assistance Field Training personnel. Responsibility 

for the geographical areas by military departments (MILDEP) is outlined in table 6–2. 

Table 6–2 

Responsibility for MWR support to military missions in foreign countries 

Geographic area Responsible MILDEP Responsible IMCOM Region 

U.S. European Command (includes Russia) Army Europe Region 

U.S. Southern Command Army Southeast Region 

U.S. Forces Korea Army Korea Region 

U.S. Pacific Command (minus U.S. Forces 

Korea) 

U.S. Joint Forces Command 

U.S. Central Command 

U.S. Northern Command (includes Canada 

and Mexico) 

Navy 

Navy 

Air Force 

Air Force 


. When military personnel providing support to military missions in foreign countries are assigned to the above 

geographical areas, the responsible IMCOM Region for the geographical area will provide the requested MWR support. 

A geographic area of responsibility map can be found at www.defenselink.mil/pubs/sof/current.pdf, which can assist in 

determining which countries are in the responsible geographic area. 

c. Using the Unified Command as the geographical area of responsibility is not intended to imply that funding 

support for MWR will be provided to the Unified Command or its subordinate commands/units, or that funds will be 

distributed through the Unified Command. 

d. The Marine Corps will provide MWR support for all Embassy Marine Guard personnel. 

e. The primary fund source for MWR support to military missions in foreign countries will be APF, with the 

exception of unit funds (NAF). Budget requirements (both APF and NAF) will be initiated and provided by each unit 

through normal channels to the responsible IMCOM Region and an information copy provided to the Unified 

Command. 

(1) Unit funds (NAFs) will be used for off-duty leisure activities that promote unit cohesion and are based on an 

annual per capita allocation per permanently assigned military person. Rates are published by FMWRC in the annual 

ALR program guidance found at www.armymwr.org, under Operations, Financial Management, Documents, Standard 

Operating Procedures, Army Level Requirement Standard Operating Procedures. Units may request NAF support from 

the responsible IMCOM Region, with a copy furnished the Unified Command. Elements within countries will not 

receive NAF from more than one MILDEP. NAFs are not used to support MWR programs that are authorized APFs. 

(2) APF support will be the responsibility of the IMCOM Region designated in table 6–2. APFs will be the source 

of funding if MWR programs are nonexistent or not available from a nearby U.S. installation or host country. 

Authorization for APF support is at appendix D. The APF requirement is based on the below standards for MWR 

support. 

f. Standards for MWR APF support 

(1) Physical fitness. Military personnel will have access to fitness facilities, equipment, and programs, which support 

cardiovascular, endurance, flexibility, and strength conditioning to maintain fitness. When activities are not available at 

the assigned unit or duty station, access to physical conditioning alternatives will include the use of a nearby U.S. 

military installation or host country fitness facility within the surrounding civilian community. If other U.S. installations 

are not available and an agreement is not feasible on a “no fee” basis for use of host country facilities, 

membership will be authorized from APF in the name of the unit for all assigned military personnel. 

(2) Libraries. Military personnel will have library support for such items as paperback book kits, magazine kits, and 

online periodical/newspaper services where Internet capability exists. 

(a) The standard for paperback book kits varies by group size (table 6–3). 

(b) The standard for magazine subscriptions varies by group size and titles are determined by customer surveys 

(table 6–4). 

Table 6–3 

Paperback book kits 

Group: 1–25 

Titles: 10 per month 

Group: 26–75 

Titles: 25 per month 

Group: 76 or more 

Titles: 40 or more per month 

Table 6–4 

Magazine subscriptions 

Group: 1–50 

Kits: 1 kit (1 copy each of 5 titles) per month 

Group: 51 or more 

Kits: 2 kits (2 copies each of 5 titles) per month 

(3) Recreation. Military personnel will have Internet access to recreation information, tickets (for example airline 

tickets), and tours (for example, local tours and attractions). Military personnel will have access to movies for unit and 

personal viewing through video rental or checkout and theaters where available. Equipment for movie viewing is 

authorized from APF. 

g. Armed Forces Radio and Television Service (AFRTS) issues digital satellite receiver decoders, to receive and 

unscramble the AFRTS signal, for use by authorized members at shared sites (Marine Corps houses, embassies with 


33

DOD staff, and deployed locations) for use in an office or a common-use area. Funding for the downlink, associated 

installation, and maintenance for circuit distribution will be the responsibility of the IMCOM Region supporting the 

geographic area in which the AFRTS system will be installed. If authorized members (active duty military and DOD 

civilian employees assigned overseas and their accompanying Family members) are not eligible to receive an AFRTSissued 

decoder, they may purchase a decoder that will provide access to AFRTS programming after gaining approval 

from the AFRTS (see DOD 5120.20–R). The IMCOM Region may provide APFs to purchase AFRTS equipment, 

which includes satellite dishes and decoders, for DOD military and civilian personnel on missions in foreign countries. 

This equipment is the property of the Federal Government and appropriate methods and policies regarding accountability 

of Government equipment apply (see chap 17). 

Chapter 7 

Patronage 

7–1. Eligibility 

a. MWR programs will be established primarily for Armed Forces military personnel. 

b. Ready Reserve members have the same priority as AD military personnel. Gray area retirees (retired reservists 

under age 60) have the same priority as regular Army retirees for use of category C MWR programs only. Eligible 

Family members may participate in MWR programs whether or not accompanied by the sponsor. Family members and 

guests of first priority patrons assume the same priority. 

c. If MWR facilities cannot accommodate all authorized patrons, the garrison commander will determine specific 

use priorities. Such priorities are based on priorities establish in table 7–1. 

d. Guests must be accompanied by authorized patrons and may participate in MWR programs, purchase items 

incidental to participation, and consume food and beverages while on the premises. Guests include those participants at 

functions arranged by an authorized patron. Otherwise, guests are not authorized resale purchases. Garrison commanders 

(or designees) will approve local rules governing the number of guests and the frequency of use at specific 

facilities. 

e. DOD organizations stationed or tenanted on an Army installation will be afforded the same facility use privileges 

as those afforded personnel on the Army installation. 

f. Military club membership and reciprocal patronage of military clubs are outlined in chapter 8. 

g. Access to military exchanges and their programs (for example, package beverage stores) will be in accordance 


h. Patron eligibility criteria and priority of use are contained in table 7–1. 

Table 7–1 

MWR patronage authorizations 

Active duty (AD) military personnel and Families (includes U.S. Coast Guard) 

Category Unlimited Category C 

Members of the RC and Families (includes Ready Reserve (to include Scholarship/Contract 

ROTC Cadets) and National Guard, and their Family members) 

Delayed Entry/Delayed Training recruits 

Cadets of Armed Forces academies (USMA cadets have first priority at USMA) 

Commissioned Corps of the Public Health Service and Commissioned Corps of National 

Oceanic and Atmospheric Administration and their Family members 

Retired military personnel from active duty and Family members. Retired from the Reserves 

with pay and retired without pay (gray area) 

Retired from the Reserves with pay and retired without pay (gray area) 

Veterans with 100% service-connected disability, honorably discharged 4 

Medal of Honor recipients 4 

Unremarried surviving spouses (and Families) of military personnel who died while on AD 

or in retired status 4 

Unremarried former spouses (and other Family members) who were married to the military 

member for at least 20 years while the military member was on AD 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 


Table 7–1 

MWR patronage authorizations—Continued 

Category Unlimited Category C 

Orphans of military members, when not adopted by new parents, under 21 years of age (or 

over if not capable of supporting themselves, or 23 years of age if they are in full-time 

study) 

U.S. DOD APF/NAF civilian employees (includes AAFES) and Coast Guard civilians and 

their Family members stationed outside the United States 

Local national or host country DOD civilian employees and Families at the discretion of the 

overseas commander, provided space is available and subject to host country agreements 

U.S. Federal employees when assigned in areas outside the United States 

Medical personnel under contract to the Army during periods they are residing on the installation 

Military personnel of foreign nations and their Families when on orders from the U.S. 

Armed Forces, or in overseas areas when the overseas commander grants privileges in the 

best interest of the United States 

Paid members of the American Red Cross, United Service Organization, and other POs as 

authorized by DOD issuances, when assigned to U.S. Armed Forces outside the United 

States 

U.S. employees of firms under contract to DOD working on the installation, assigned outside 

the United States 

U.S. DOD APF/NAF civilian employees (includes AAFES) and Coast Guard civilians and 

retired DOD and Coast Guard civilians and their Family members 

DOD contract personnel or technical representatives who work full time on the installation. X 1 

ROTC cadets (other than those above) when participating in field training X 1 

Former POWs and spouses of current prisoners of war or service members missing in action 

and their Family members 

X 1 

4 

Non-DOD Federal employees working on the installation X 1 

Foster children of military personnel, exchange students residing with Families of military 

personnel who are their sponsors, and “au pairs” residing with Families of military personnel 

Individuals who have distinguished themselves in direct association with or in support of 

X 1 

the Army (may include foreign nationals overseas) 4 

Leaders in the local community designated by the garrison commander and recertified annually 

Members of the general public at MWR infrequent/open events, at garrison commander’s 

discretion 

Members of the general public on a contining basis subject to criteria below. Does not apply 

to MWR bingo programs. Approval required from ASA(M&RA). Documentation is submitted 

to FMWRC (ATTN: IMWR-PO-P), 4700 King Street, Alexandria, VA 22302–4419. 

(Documentation will include detailed justification of how criteria below are met.) 

Notes: 

1 Based on local demand and capacity and at garrison commander discretion; purchase of food, beverages, and tobacco for on-premises consumption only; 

purchase of merchandise incidental to MWR participation. (APF and NAF personnel employed by MWR programs and their Family members may purchase 

resale merchandise and services, without restrictions, from MWR program resale operations (not exchanges).) 

2 Does not include child care facilities or military exchanges. 

3 Subject to the following criteria: Adequacy of facilities and underutilized; written agreements from local Government officials, other appropriate community 

leaders indicating they have no objections to expanded use of military MWR programs, and there is no opposition from the local business or local Government 

community; beneficial to military members/civilians in the community; and no conflict exists as determined by the local SJA with Federal, State, or local 

laws, or international agreements. 

4 Club membership dues may or may not be charged, at garrison commander’s discretion. 

X 

X 

X 1 

X 

X 

X 

X 

X 

X 1 

X 2 

X 1 

X 1,3 

X 1,3 

7–2. Other users 

a. Other individuals and local and State Governments may be given limited access under the following terms, in 

accordance with this and other applicable regulations: 

(1) Persons hunting and fishing on Army property where authorized under terms of Cooperative Plan Agreements 

for Conservation and Development of Fish and Wildlife Resources and those using other outdoor recreation facilities 

and programs under terms of established cooperative agreements. See also paragraphs 8–25b(4) and (6) and 8–25j 


35

pertaining to public access to Government land and water resources and hunting and fishing, and Golden Age 

passports. 

( 2 ) P a r t i c i p a n t s i n o r s p e c t a t o r s a t m u s i c a n d t h e a t e r p r o d u c t i o n s , s p o r t i n g e v e n t s , s p e c i a l e v e n t s s u c h a s 

Volksmarches, and other MWR programs open to the local community to foster public relations, when their participation 

is an enhancement (see table 7–1, footnotes 1 and 3). 

(3) Local and State Government use of categories A and B MWR programs with excess capacity under established 

memorandum of understanding (MOU) or partnership agreements. Such use must be mutually beneficial to both the 

garrison and the local community, in compliance with applicable law and regulations, and will not increase costs to the 

Army as a result of such use unless the agency/institution of the local or State Government subsidizes the additional 

costs. 

b. Non-DOD groups will be authorized to use MWR facilities subject to the limitations set forth in DOD 5500.7–R, 

AR 210–22, AR 600–29, and this regulation. Routine MWR patronage (programs, facilities, or services) by members 

or potential members of non-DOD groups will be authorized only when the individuals qualify as authorized patrons. 

c. Conflicts between this chapter and any agreement between the United States and foreign government will be 

resolved in favor of the agreement. 

7–3. Identification 

a. Garrison commanders will ensure patrons are identified as authorized patrons prior to using any MWR program. 

Proof of eligibility must be presented. 

b. The common access card, issued to active duty military personnel, Selected Reserve, DOD civilian employees 

(both APF and NAF), and other eligible personnel, will be used for identification purposes. 

c. AR 600–8–14 prescribes identification cards for retired military personnel; Family members; Reserve personnel 

other than the Selected Reserve; and others not authorized the common access card. 

d. Identification of Delayed Entry/Delayed Training Program recruits will be by DD Form 4–1 and 4–2 or 4–3 

(Enlistment or Reenlistment Agreement–Armed Forces of the United States) and a picture ID card. 

e. DA Form 1602 (Civilian Identification) may be used as identification for retired DA civilian employees and 

Family members of current and retired DA civilian employees. Current and retired DA civilian employees may request 

issue of DA Form 1602. 

f. Identification for exchange students and au pairs will be a locally developed card or the commander or designee 

may issue a limited duration letter of access (similar to letters issued for exchange service use by agents to purchase for 

eligible incapacitated patrons.) 

g. A locally developed card or letter may be used to identify individuals or groups of individuals who are granted 

access to MWR facilities per table 7–1 and who are not eligible for identification cards prescribed above. 

7–4. Misuse of program privilege 

a. Patronage rules will be displayed at all MWR facilities. 

b. Patronage privileges will be suspended, terminated, or denied if the garrison commander (or designee) determines 

it to be in the best interest of an MWR program, the garrison/installation, or the Army. The garrison commander has 

the authority and discretion to determine when and how such privileges will be affected. Abuses for which MWR 

privileges may be suspended or terminated by the garrison commander (or designee) may include, but are not limited 

to, the following: 

(1) Using MWR facilities to make or repair items for personal gain. 

(2) Distributing merchandise purchased at an MWR program to unauthorized persons, whether or not for a profit. 

(Using such items as gifts of a personal nature is permissible.) 

(3) Personally profiting from the use of MWR merchandise or services. 

(4) Stealing merchandise or other assets. 

(5) Presenting bad checks intentionally or repeatedly and failing to make restitution on dishonored checks or other 

indebtedness owed an MWR program. 

c. Investigative procedures into NAFI/entity losses or misuse of the MWR privilege are described in this regulation 

and are used to determine revocation of MWR privileges. The length of revocation or total denial of MWR privileges 

will be a local decision. Chapter 18 addresses investigations of NAF losses. 


Chapter 8 

Military Morale, Welfare, and Recreation Programs 

Section I 

Operations 

8–1. General program operations 

The mission of MWR is the common thread linking category A, B, and C programs, with the designation of the 

specific program into these categories based on the focus and level of service provided by the program. Basic programs 

focusing on well-being of the military service member are included in category A. Programs offering basic services for 

the military community are provided in category B. Programs normally paid for by the customers that add to the 

variety of services within the community are provided in category C. Listing of MWR programs by category is at 

figure 3–1 of this regulation. APF support authorized for each category is explained in chapter 5 and appendices D and 

E of this regulation. Additionally, Internet web sites may be used to enhance, or as an extension of, a viable MWR 

program. 

8–2. Combining programs 

Complementary programs that provide basic support to military members (category A) and the military community 

(category B) may be located in the same outlet with programs that enhance these programs (category C). Resources 

required for efficient execution of these programs, such as activity management and facilities, should be based on the 

predominant attributes of the composite program. 

8–3. Baseline standards 

Each fiscal year, baseline standards approved by the MWR BOD are issued to HQ IMCOM by FMWRC memorandum 

requesting that the Garrisons conduct annual assessments against these standards and submit results of the assessment 

to FMWRC. These standards are found at www.armymwr.org/home/Show_file.asp?fileID=183. In addition to these 

standards found herein and issued separately for specific programs, guidelines will be used to manage MWR operations. 

Additional sales accountability, cash, key, inventory, and other controls are at appendix G. 

8–4. Overseas operations 

All operations overseas will be subject to SOFAs and other applicable international agreements. 

Section II 

Descriptions 

8–5. Amusement/vending machines 

a. Description. The term “amusement machine” as used in this chapter does not include slot machines or other 

mechanical, electrical, or electronic machines that enable players to receive monies. This section does not apply to any 

machines operated by ARMP (see para 8–8). For applicable Randolph-Sheppard (State-licensed operation) criteria, see 


b. Guidelines. Management controls for amusement and vending machine operations will focus on control of access 

to the machines/cash boxes and cash collection procedures, whether or not contractor owned or serviced. Controlled 

access and collection will apply when the garrison MWR operating entity receives a share of the revenue or the 

collection is done only with entity personnel. Where the entity receives a fee per machine, personnel will monitor 

machine locations and track contractor overall revenue and/or units sold. Under no circumstance will cash boxes or 

merchandise cabinets be emptied or serviced without an impartial observer. 

c. Machine malfunctions. Customers will be reimbursed from the petty cash fund for losses due to inoperable 

machines. 

d. Locking devices. Concessionaire-owned machines will have at least two locks: one to access the machine, and one 

NAFI-owned lock to access the cash box. The concessionaire may provide another locking device on the cash box so 

that both a NAFI key and a concessionaire key are required to open it. The following key controls will be written into 

the concessionaire contract: 

(1) Keys will be controlled to restrict access to cash boxes and internal control devices. 

(2) Keys will remain in the custody of the Director, FMWR or installation key control officer appointed in writing. 

Keys will be assigned to an impartial observer when required for cash collections or service calls by the concessionaire. 

The person responsible for key control will maintain an up-to-date key register. 

e. Sales accountability. Analysis will be made to project amusement and vending machine receipts. 

(1) One method is to use counter metering devices on cash collection boxes. Fund managers/entity administrators 

will require contractors to install coin counters. 

(2) Another method is to inventory products placed in the machines at sales value. When machines are restocked, 


37

the value of the restocked merchandise at sales price will be equal to the expected cash receipts. Actual cash collection 

adjusted for refunds because of malfunctioning machines will be compared to expected receipts and any significant 

variances investigated. 

(a) Cash collections will be made at least once each week, unless sales are anticipated to be less than $50 per 

machine; for these lower sales, collections may be made twice a month. Collection figures will be furnished immediately 

after collections to the CAO prior to accounting close-out for the month. 

(b) If additional collections are needed, the Director, FMWR determines the frequency based upon keeping accumulated 

receipts to a minimum; anticipated sales; risk factor for loss of receipts; insurance factor; collection costs in 

personnel and time; and interest earned on money deposited. 

(3) The garrison commander or representative will appoint an impartial observer to sign for keys and participate in 

collections. The observer (or the fund/entity representative when collecting cash from NAFI-owned machines) will be 

briefed on procedures and accompanies concessionaire employees collecting cash from concessionaire-owned machines. 

The fund/entity representative will not need to accompany the concessionaire and impartial observer when both 

a NAFI lock and a concessionaire lock are on the coin boxes. 

(4) The Director, FMWR (or designee) will maintain an inventory of NAFI-owned and concessionaire-owned 

machines and State-licensed operations (AR 210–25), to include the serial numbers and location of each machine. 

Records will be updated when machines are changed or rotated. Inventories will be confirmed by garrison operating 

MWR entity personnel on a random, periodic basis. A machine will never be removed, rotated, or substituted without 

approval or before a final cash collection is made. The cash collection team will always have a current inventory. 

(5) DA Form 4083–R (Vending or Amusement Machine Collections) will be used to document cash collected in 

accordance with DOD 7000.14–R, volume 13. 

(6) If the actual cash varies from the meter readings, the concessionaire and NAF/entity observer will check for 

mechanical malfunction or tampering. If this does not resolve the discrepancy, the disputes clause of the contract will 

govern. 

(7) Receipts will be divided at the time of collection between the activity representative and the concessionaire, 

based upon the percentage established in the contract, or if based upon a flat fee, payments may be made by the 

concessionaire on a monthly basis. 

(a) Machine inventory records will be the basis of payment—for example, $X per machine, per month or more 

frequently, consistent with the collection schedule. 

(b) Contracts may call for a review of the flat fee amounts as often as reasonable, until the number, type, and 

location of machines become static. Pro rata payments will be authorized for machine changes. 

(c) Contractor furnished monthly revenue and/or units sold reports or other required documentation will be used to 

make future flat fee adjustments. 

(d) A 100 percent verification of all machines, types, and locations will be made by NAFI/entity personnel at the 

beginning, end, or renewal of a contract. 

8–6. Armed Forces Entertainment 

This program will provide free professional entertainment to Armed Forces personnel overseas (see AR 215–6). 

8–7. Armed Forces Recreation Centers 

a. Description of mission. The centrally managed, Army-operated AFRCs are joint service facilities. They provide 

quality, wholesome, affordable, Family-oriented vacation recreation opportunities to authorized patrons (including 

official travelers) of the total Defense force. AFRCs support readiness, retention, and well-being objectives. AFRCs 

employ best business practices to operate in a financially self-sufficient manner (funding operating expenses, debt 

service, and capital reinvestment requirements). The AFRCs are prepared to execute contingency support operations as 

directed by appropriate commanders. 

b. Facilities. 

(1) AFRCs include— 

(a) Edelweiss Lodge and Resort, Garmisch, Germany. 

(b) Hale Koa Hotel, Honolulu, Hawaii. 

(c) Dragon Hill Lodge, Seoul, Korea. 

(d) Shades of Green, Orlando, Florida. 

(2) To be designated as an AFRC, the facility must meet the following criteria: 

(a) Be centrally managed and operated by the Department of the Army (FMWRC). 

(b) Offer quality accommodations, standard to progressive food and beverage programs, full-service facilities, and 

recreation at affordable prices in a resort-type setting. 

(c) Operate under the mission requirements contained in paragraph 8–7a. 

(3) General managers of the above AFRCs are considered garrison commanders and fund managers (because 

AFRCs are individual NAFIs) for purposes of this regulation. 


(4) AFRC facilities may provide a broad range of MWR programs and services similar to those provided on an 

installation. Individual programs and services operated by AFRC facilities will retain the appropriate MWR categorizations 

per this regulation and OSD policy (DODI 1015.10). Specific APF authorizations for the Edelweiss Lodge and 

Resort are provided in 10 USC 2491b. 

c. Guidelines. In addition to the general policy governing the administration and management of Army-operated 

AFRCs contained in this regulation, each Army-operated AFRC has its own operational guidelines issued periodically 

by FMWRC. Conflicts between AFRC operational guidance and this regulation will be resolved case by case in favor 

of AFRC guidance only when fully staffed as appropriate, legally reviewed, and approved by the ACSIM or other 

appropriate authority, as exceptions to this regulation. 

(1) Use of AFRC facilities for conferences, temporary duty lodging, and other official functions will be authorized 

only when official activities do not interfere with the assigned MWR mission. 

(2) Expense accounts may be established for AFRCs in accordance with guidance issued by FMWRC. 

(3) AFRCs may offer a full range of MWR programs, including lodging, food and beverage services, and entertainment 

and may have— 

(a) Resale activities, which may include alcoholic beverages by the drink, tobacco products in less than carton 

quantities, essential toilet articles, magazines and newspapers, and promotional and souvenir items. 

(b) Contracted entertainment and concessionaire services in accordance with AR 215–4 and this regulation. 

(c) Check cashing and currency conversion services to authorized patrons. 

(d) Credit to registered guests, payable in full prior to checkout or through commercial credit card services. 

(e) Recreational equipment operations, including vending and amusement machines, using equipment purchased or 

leased. 

8–8. Army Recreation Machine Program 

a. Description. The ARMP consists of ARMP-operated gaming and amusement machines, Internet-based entertainment; 

wireless cafes; and related services and support. ARMP is based on centralized policy, management, administration, 

operation, and control at the Department of the Army level (FMWRC). The general manager of the ARMP is 

considered a garrison commander and fund manager (because ARMP is a central separate NAFI) for the purposes of 


b. Command support. The installation is required to provide command support, market data, facility locations for 

gaming and amusement machines and Internet placement, office space, staff support, phone lines, mail support, and 

other logistical support required for operation. 

c. ARMP SOPs. SOPs governing ARMP operations will be developed and published by ARMP and will be binding 

on all ARMP employees and program participants. 

d. Gaming machines. Gaming machines include slot machines and electronic gaming devices that provide a payout 

to players based on chance and not skill. Direction and management supervision of all Army gaming machine 

operations is vested in the ARMP, a FMWRC element. 

(1) Installation. Gaming machines may be installed and operated in overseas Army MWR programs in accordance 

with this regulation. They may be installed and operated in non-Army (AAFES, other services) operations, as agreed to 

by MOA between ARMP and the requesting program, unless prohibited by local laws, SOFAs, and other local 

agreements. 

(2) Prohibited facilities. Gaming machines are prohibited in CYS facilities and cannot be operated on Federal 

property in the United States and U.S. Territories and Possessions. 

(3) Payout. Not less than an average of 93 percent of machine play will be returned to patrons as payout. The Army 

NAFI will retain 10 percent of the net drop (after automated cash machine fills, malfunctions, machine directed 

payouts, reportable jackpots) at the time of the cash collection to offset MWR program operating expenses unless 

specified differently by MOA. This will be treated as revenue by the NAFI where the machines are located. Amount 

retained at the time of the drop for non-Army MWR programs will be governed by the applicable MOA. 

(4) Gaming machine authorized and not authorized players. Gaming machine players include adult patrons and bona 

fide guests of the MWR program. Those not authorized to play include— 

(a) Local or third-country nationals when prohibited by local laws, unless otherwise permitted by SOFA or other 

agreements. 

(b) Persons under 18 years of age, except active duty military, unless prohibited by local laws, SOFA agreements, 

and other local agreements. 

(c) ARMP employees and their immediate Families. 

(d) MWR program managers, management employees, and their Families in the facility where employed, where 

sponsor is employed, or in a facility managed/supervised by an individual (for example, the Director, FMWR in MWR 

facilities). 

(e) Non-managerial MWR program employees and their Families in the facility where employed. 

(f) Others prohibited by the IMCOM Region, garrison commander, or representative. 


39

(5) Gaming machine payout claims. For any machine condition that requires the MWR program to pay money due a 

patron such as a machine directed payout, a short payout due to machine malfunction, acceptance of a patron’s coin or 

currency without permitting play, or any other conditions where payment is due a patron, the MWR program 

representative will verify the patron’s claim, document the machine condition, and reimburse the patron from the MWR 

program’s gaming machine change fund (other MWR program operating funds are not used to reimburse patrons) in 

accordance with ARMP SOP. Properly completed patron payment documents will be retained by the MWR program as 

part of the MWR program’s machine change fund records and reimbursed by ARMP during subsequent cash 

collections. Incomplete or incorrect payment documentation will not be reimbursed by ARMP. 

(6) Control keys. The use of multiple keys to access machines with exposed funds or access compartments within 

machines containing funds is an integral part of the ARMP internal control system. The multiple key/participant 

process is primary factor in safeguarding funds and limiting the possibility of waste, fraud, and abuse. It will be used at 

all times when stands or machines with exposed funds or compartments within machines containing funds are entered. 

All participants must be briefed before reporting for duty, including review of the ARMP SOP and applicable parts of 

appendix G of this regulation. The responsible commander (or designee) will designate a key control custodian. Key 

control procedures will be strictly enforced at all levels. Unused keys will be locked in secured key containers and 

signed for on a key control register when issued. Keys will not be kept overnight by individuals except with written 

approval from the GM, ARMP. The following keys will be used: 

(a) The MWR program machine door key used during machine maintenance will open one of two locks located on 

the machine door. Cashless machines without coin hoppers will not require an MWR key. 

(b) The ARMP machine door key will be used to open the machine door. Both an ARMP and MWR key will be 

required for opening machines with coin hoppers containing coins. Both keys will be operated at the same time. 

(c) The command or MWR stand door key used during coin cash collection will open one of the two locks located 

on the stand door. 

(d) The ARMP stand door key, the second key needed to open the stand door, will be used simultaneously with the 

command stand door key during coin cash collection to open the door. 

(e) The ARMP coin drop box key will be used to remove the coin drop box from the stand and to open the box after 

it is taken out of the stand. 

(f) Any machine box or container used to store accepted currency will have two locks installed. ARMP will 

maintain control of the one of the two locks and the MWR or command will maintain the other. 

(g) Duplicate keys for the ARMP, an MWR program, or command will be secured and controlled separately from 

the working key used to support machine operations. 

(7) Lost keys. Lost keys will be reported immediately to the ARMP field office. Proper authorities will conduct 

investigations of loss in accordance with chapter 18 of this regulation, and a copy of the final report will be forwarded 

to the ARMP. Machines may be shut down until locks are changed by the ARMP. MWR program representatives will 

witness the changing of locks. The MWR program will incur all costs, including labor, related to the replacement of 

locks or keys if the loss results from their negligence or poor key control. 

(8) Key inventory. The ARMP must inventory all keys semi-annually. The ARMP will control hand receipts, and 

accountable parties will update hand receipts every 6 months. The local command will provide an independent 

inventory team every 2 years for a key inventory. Additional inventories will be conducted by ARMP in accordance 

with SOPs. 

(9) Cash collection. Cash will be collected by a cash collection team that includes, at a minimum, a representative 

from the activity and one from ARMP. (Under no circumstances will cash collections be conducted unless an ARMP 

representative and a location representative are present.) 

(a) Based on volume of play, collection frequency will be adjusted at the discretion of the ARMP in coordination 

with the local commander. ARMP field office managers will establish and coordinate all collection schedules with 

MWR program managers and commanders who make facilities and representatives available. 

(b) Keys will be issued to the collection team and will be secured and/or accounted for at all times. Both collection 

team members will record and verify meter readings unless an electronic data collection system is used. The team will 

observe and verify each machine coin and currency count. Coin and currency counts for each machine will be recorded 

and verified as prescribed by the ARMP SOP. 

(c) Monies collected will be counted in a secure area out of the presence of patrons. Machine areas will be closed to 

patrons during collection by closing the room or roping off the area. If this is not possible, collections will be made 

during non-operating hours. For currency counts, the MWR representatives must provide a lockable secure area for 

counting currency, access by anyone other than the collection team is prohibited. 

(10) Cash deposits. The following is required for cash deposits: 

(a) The Machine Activity Report (MAR) (see ARMP SOP) for calculation of the cash collection and receipt of 

funds from the ARMP cash collector will be signed by the MWR location representative. 

(b) The amount of deposit will be imprinted on sequentially numbered ARMP bank deposit slips with an inked 

stamp, and appropriate copies will be retained by the ARMP representative. Both collection team members will verify 

and initial the deposit slips. 


(c) The MWR program must deposit ARMP funds no later than 1 working day after the collection. 

(d) An armed guard escort will make deposits in excess of $5,000 (see appendix G). 

(e) In exceptional cases and as approved by the ARMP GM, ARMP staff may make bank deposits using procedures 

specified by ARMP Controller. 

(11) Documents. All original collection and deposit documents will be forwarded to ARMP field office. 

(12) Keys. All keys will be returned to the key control custodian prior to the end of each day. 

(13) Command representatives. The local command will provide command representatives for periodic cash collection 

observations. Observations will be made at least once per quarter at selected locations. The local command will 

coordinate with the local ARMP field office after the observations have been completed and communicate any issues 

identified during the cash collections to the ARMP field office manager. 

(14) Internal controls. The ARMP will provide effective control and accountability of funds through its system of 

internal controls during the drop process and through subsequent independent analysis. The controls will include use of 

the two-party drop team to prevent theft, periodic unannounced FMWRC internal review observations of cash 

collections to ensure adherence to ARMP SOPs, and systematic reviews of each cash collection to reconcile cash and 

coin counts with documented meter readings. All variance exceptions to established parameters will be researched, 

evaluated, and reconciled. Additionally, where resources permit, regular rotation of cash collectors and technicians will 

be practiced. 

(15) Machine maintenance. The ARMP field office will schedule machine maintenance and will coordinate the 

schedule with MWR programs. Maintenance is based on a route system; MWR program manager will ensure that 

facilities and facility representatives are available when maintenance is scheduled. The MWR program manager will 

notify ARMP personnel immediately when there are any existing or potential machine problems and when facility 

renovations, closures, or re-openings are decided upon. 

(a) MWR program and ARMP representatives will be present at all times during any machine maintenance where 

the technician has direct access to machine funds. As required, if the MWR program representative cannot accompany 

the technician or is called away, machines will be locked and maintenance stopped until the MWR program representative 

returns. 

(b) The ARMP technician will record meter readings, type of malfunction, and extent of repairs per the ARMP SOP. 

(16) Management controls. 

(a) ARMP accounting, cash collection, and maintenance functions will be segregated from those of other MWR 

programs. 

(b) The FMWRC will provide a quality assurance/management review program to detect, deter, and prevent fraud, 

waste, and abuse. The assurance/management review program strengthens management and operational practices and 

ensures effective management controls. 

e. Amusement machines. Amusement machines include video machines, pinball machines, crane machines, coinoperated 

pool tables, dedicated simulators, CD jukeboxes, digital jukeboxes and such other machines that do not 

provide a payout. Amusement machine services include purchase of the latest industry amusement games, on-site 

management and maintenance, cash collections, internal controls, and shared revenues. The expense of operating the 

program will be borne by the ARMP. The ARMP may install and operate amusement machines in MWR programs 

(categories A, B, and C) at the request of the garrison commander. They may be installed and operated in non-Army 

(AAFES, other services) operations, as agreed to by MOA between FMWRC and the requesting program, unless 

prohibited by law. Participation in the Army’s amusement machine operations will be authorized case by case by 

business-based analyses of an installation’s vendor-operated amusement machine operations versus Army-operated 

amusement machine operation potential. All Army installations as well as other military services and the AAFES may 

participate. 

f. Internet-based entertainment; wireless cafes; and related services and support. When pay per use unofficial 

Internet services (for example barracks, Internet services or wireless hot spot service) are to be provided, NAF contract 

procedures will be used. These services are authorized to utilize all recognized (TCP/IP) Internet applications for 

unofficial purposes including but not limited to web browsing, web hosting, Voice over IP, unofficial e-mail, video 

mail and streaming audio/video. After prior coordination with the DOIM/frequency manager, access to DOIM wired 

infrastructure and frequency spectrum will be granted to MWR programs to support these nonofficial services, paid or 

free, when it does not conflict or inhibit other official U.S. Army functions. Access to commercial unlicensed 

frequencies is to be granted as long as there is no interference with official frequencies or uses and the equipment 

adheres to FCC regulations or similar local national specifications when installed. When requested by MWR, DOIM 

frequency managers will direct that other unofficial uses of these frequencies be terminated if it interferes with 

approved MWR implementation at the same frequency. 

8–9. Arts and crafts 

a. Description. 

(1) The arts and crafts program offers educational, self-development activities that advance technical knowledge and 

skills and offer opportunities for creative growth. This is accomplished through individual participation in arts and 


41

crafts processes, to include fine arts, crafts, and industrial/vocational arts. Participants will develop manual dexterity, 

self-confidence, visual acuity, safety awareness, and knowledge/skills directly transferable to military occupational 

specialties (MOS). 

(2) The Army Artist Program is sponsored by the Center of Military History in conjunction with installation arts and 

crafts directors. Specific functions of this program are detailed in AR 870–20. 

b. Guidelines. 

(1) Arts and crafts community workshop core activities will be organized based on their relationship to raw 

materials, technical processes, the mastery of specialized techniques, and the use and handling of specific tools and 

equipment. 

(2) The arts and crafts program will offer opportunities to develop both mind and hand in the creation of objects for 

personal use and also the sense of self-fulfillment. Facilities will not be used, in any way, with the intent of personal 

profit or to support a private business or other non-Government organization. 

(3) Basic core activities detailed in program guidance issued by the FMWRC include— 

(a) Drawing and painting. 

(b) Photography. 

(c) Woodworking and industrial arts. 

(d) Art metal and jewelry. 

(e) Pottery and ceramics. 

(f) Fibers, decor, and special crafts. 

(g) Sculpture and 3–D design. 

(4) A variety of structured programming methods will be used to stimulate self-help efforts, including— 

(a) Formally scheduled classes. Instruction will be scheduled 2 or more months in advance and designed to interest 

groups of individuals. 

(b) Individual instruction and assistance. 

(c) Demonstrations at community fairs, festivals, and other special events to stimulate interest in new techniques, 

tools, and equipment and promote patronage. 

(d) Group workshops/seminars of special interest. 

(e) Contests to recognize individual talent/skills. 

(f) Rotating exhibits of patron and recognized artists’ work displayed in arts and crafts centers or other prominent 

locations. 

(g) Specialty programs, craft fairs, festivals, art shows, and related tours/field trips to enhance community life. 

(h) Self-directed, open shop use of equipment, tools and workspace, independent of professional staff instruction. 

(Supervisory personnel may be consulted only for advice or assistance.) 

(5) Installation health/safety precautions and practices will be adhered to as prescribed in installation and Army 

guidance; safety practices and environmental standards will be followed in accordance with installation and Army 

waste management policies. 

(a) Staff instructors will monitor and enforce all health/safety regulations. 

(b) Directors will serve as consultants to help select tools, materials, and activities that are compatible with 

participants’ maturation level and sound health and safety practices. 

(c) Youth under age 14 will be accompanied by a responsible adult, unless they are enrolled in a program designed 

specifically to meet their developmental level (motor skills and maturation rate). 

(d) Youth age 16 and older will be authorized to use the woodworking shop independent of their sponsor with a 

valid DA Form 3031 (Qualification Card for Use of Arts and Crafts Center Equipment) (see paragraph 8–9b(10). 

(6) Support of Army medical, educational, environmental, Army Community Service programs, and other Army 

non-MWR functions will be authorized. 

(7) A Soldier representative of units may be appointed by the unit commander and trained to make trophies, picture 

frames, and other needs for their unit. Customary fees for materials are paid by the unit. 

(8) Normally, activities for youth will be different from and not compatible with activities for adults; specialized 

programs designed for youth will be conducted separately to accommodate developmental levels, motor skills, and 

maturation rates. 

(9) Craft mobiles equipped with craft materials, tools, and supplies will support field training areas and personnel at 

isolated or remote locations. 

(10) Before using power tools or other specialized equipment, patrons will demonstrate proficiency (proper and safe 

operation) to the satisfaction of the instructor or manager. A DA Form 3031 will be issued to the patron when 

proficiency is established and a record is kept at the center. Specialized work areas and equipment will be available 

only when qualified staff is present to enforce health/safety practices. 

(11) Specialized merchandise of supplies, component parts, and related materials needed for the fabrication, construction, 

or repair of personal projects may be sold. 


(12) Staff members will not accept payment, including payment of gratuities, for personal service or work done by 

staff members. Payments for goods and services will be paid only to the arts and crafts program. 

(13) Fees and user charges will be imposed for certain operational functions, including— 

(a) Use of ceramic molds, ceramic firing, lockers, and specialized tools. 

(b) Registration for workshops, classes, exhibits, competitions, crafts fairs/festivals, and other programmed events. 

(c) Use of slide copiers, copy stands, lighting equipment, casting equipment, grinders, and planers. 

(d) A percentage of sales from exhibitions of area artists’ works. 

(14) Category of users (civilian, military, Family members) by program functions used and hours of participation 

will be maintained routinely. 

c. Army contests. 

(1) Major Army contests, which are held annually, are described below. Contests will be conducted in accordance 

with FMWRC guidance. Eligible patrons will participate at installation, IMCOM Region, and Army levels. Installations 

that do not have access to an IMCOM Region level contest may forward winning entries directly to the Army level for 

interim level judging. 

(a) The Arts and Crafts contest will encompass both fine art works and traditional crafts works and is judged in two 

groups: Group 1 is for novice or amateur participants (individuals whose art skills have not been gained in formal 

education leading to college credit or degree; and Group II is for accomplished or experienced participants (individuals 

who have gained art skills through formal courses leading to credit in college or art schools, or received awards in 

professional competitions). The U.S. Army Arts and Craft Contest Entry Form is available at local arts and crafts 

facilities or from FMWRC. Judging categories for two-dimensional art works will be drawings (pencil, brush, pen and 

ink, crayon, chalk, scratchboard); prints (etchings, lithographs, lino-cuts, wood block, silk screen); water base painting 

(acrylic, water color, gouache, tempera); oil base painting, and mixed media. Judging categories for three-dimensional 

crafts works are ceramics, wood, metals and jewelry, fibers (and textiles), glass, and mixed media. 

(b) The All-Army Photography Contest encompasses three classes of work (black and white prints, color prints, and 

short films). Entries will be judged in two divisions (active duty Soldiers and other participants). Photo contest entry 

forms and technical rules are found in the FMWRC Photo Contest Guide, which is available at local arts and crafts 

facilities or through FMWRC. 

(2) U.S. Government Bonds or award checks for Army level competition are as follows: 

(a) First place, $300. 

(b) Second place, $200. 

(c) Third place, $100. 

8–10. Automotive skills 

a. Description. The automotive skills program offers facilities, equipment, technical instruction, skilled assistance, 

and problem-solving services. Industrial/vocational experiences offer a self-help alternative to commercially available 

repair garages. Patrons can reduce their automobile repair costs through hands-on participation in mechanical processes 

and develop skills, which sustain morale, enhance self-development, and expand recreational opportunities. Performing 

incidental repairs and maintenance for a fee may be done as a resale operation of the automotive skills program. Such 

incidental repair services may be established on a space available basis and when it does not interfere with use of the 

skills program. If demand exists beyond incidental repair and maintenance, a separate category C automotive service 

garage may be established per guidance below. 

b. Guidelines. Individuals have opportunities to repair, maintain, and replace parts on their personal vehicles and 

other machinery. Skilled and knowledgeable instructors will teach specialized techniques for using and handling 

specific tools and machines. 

(1) Professional instructors will provide competent diagnostic and other technical assistance, instruction, tools, 

equipment, and guidance. Activities will be planned to stimulate new interests and progressively increase user 

competence for a range of participants from beginners to accomplished individuals. The variety of structured methods 

includes— 

(a) Formal classes scheduled two or more months in advance, including both basic and advanced instruction to meet 

varied technical interests. 

(b) Individual instruction and assistance in all automotive skills areas. 

(c) Demonstrations at festivals and other community events to stimulate interest in new techniques, tools, and 

equipment, and to promote patronage. 

(d) Workshops/seminars for patrons and staff, conducted by commercial vendors, offer special interest processes and 

skills development opportunities and promote learning of technical and detailed procedures. 

(e) Self-directed individual use of basic shop equipment, tools, and workspace, independent of staff instruction or 

assistance. 

(2) Staff instructors will monitor and enforce all health and safety regulations at all times and are available for 

assistance as needed. Shop managers will ensure that all patrons demonstrate proficiency in proper and safe use of 


43

equipment used. To ensure safety and security, a minimum of two employees will be within the building whenever the 

shop is open. Specialized equipment will be used only when qualified staff members are present to instruct and 

supervise users. DA Form 3031–1 (Qualification Card for Use of Automotive Crafts Shop Equipment) is required to 

operate specialized equipment. 

(3) Automotive skills centers will have four distinct functional work areas, at a minimum: 

(a) A general repair area with a minimum of 55 percent of the bays equipped with installed vehicle lifts. 

(b) A tool and equipment issue and control room with secured storage for hand and power tools, supplies, and 

materials. 

(c) A room or area for machine tool and bench work space, separated from areas with movement of vehicles. 

(d) A technical reference area where computers, fiche, and print material are used. 

(4) Administrative control areas will be centrally located in the facility or colocated in a manner having visual 

access to operational areas. Facility design suggestions will be included in Design Guide (DG) 1110–3–126. 

(5) The construction, repair, or maintenance of military equipment, GSA vehicles, and all other APF furnishings and 

vehicles, is prohibited. 

(6) Authorized use criteria include—. 

(a) Procedures established to ensure that owners accompany their vehicles at all times while the vehicle is in the 

facility. 

(b) Use of facilities and installed shop equipment to repair and maintain NAF vehicles (which are garrison NAF 

property) only during nonpeak hours of operation. This will not interfere with self-help activities. All associated costs 

will be charged to the work center account of the MWR program to which the vehicle is assigned. The tasks of repair, 

maintenance, diagnosis, inspection, and modification will be done by personnel paid from garrison MWR operating 

entity accounts other than the automotive skills program accounts. Staff personnel may inspect and advise on the 

technical aspects of the work. 

(c) A valid motor vehicle registration in the name of the user or a member of the immediate Family for vehicles or 

boats in the facility. As an exception, authorized users may inspect vehicles they contemplate purchasing and perform 

mechanical work on the vehicle to bring it up to inspection requirements. A written document must be presented to the 

automotive skills program manager or staff assistant indicating that the vehicle is being inspected for purchase and that 

the authorized user plans to perform mechanical work on the vehicle to bring it up to inspection authority standards. 

The authorized user and the owner of the automobile must sign the document. The automotive skills program will 

retain the document for 3 years. 

(d) A responsible adult accompanying youth under age 14, unless the youth are enrolled in a program designed 

specifically to meet their developmental level (motor skills and maturation rate). 

(7) Retail sales may include related materials, supplies, and component parts needed for the fabrication, construction, 

or repair of personal projects and vehicles. 

(8) When classes do not interfere with the normal automotive skills programs, continuing education classes or 

similar skills developing programs may be offered for a fee to authorized patrons. 

(9) Staff members will not accept payment, including payment of gratuities, for personal service and repairs. 

Payments related to goods and services will be paid only to the automotive skills program. Fees and charges for 

technical services and shop use may be collected regardless of the status of the staff member performing the service. 

Examples of authorized fees and services include— 

(a) Diagnostic services, engine analyzers, meters and computer information retrieval system. 

(b) Registration for workshops, classes, exhibits, competitions, car shows, and other programmed events. 

(c) Fees for the use of vehicle lifts, disc drum lathes, wheel balances, valve grinders, tire balances, wheel alignment 

equipment, spray booths, battery chargers, lockers; automobile storage lots; and welding equipment and other specialized 

machinery. Equipment listed as technical and/or safety restricted and optional (figure 8–1) will not affect the 

application of a user fee nor will it control whether or not there are user fees for other equipment within the automotive 

skills center. 

(d) General and specialized repair bays, car wash facilities, and vacuum equipment. 

(e) Parking and storage of authorized POVs (see appendix G). 

(f) Use of and purchase from OCONUS automotive skills stripping yards (not authorized in CONUS). 

(10) Automotive skills personnel may perform services only when all of the following conditions are met: 

(a) Patron/user is within the automotive skills facility when and where service is performed. 

(b) The service/process is approved by the garrison commander (or designee) as an authorized service and is listed 

on the fee chart displayed in the shop. 

(c) The service/process is classified as technical and/or safety restrictive (figure 8–1). 

(11) Those services that require “restricted equipment” (fig 8–1) will be performed by only trained automotive skills 

personnel. The automotive skills manager may authorize specific patrons “hand on” operation of “optional restricted 

equipment” (fig 8–1). The manager may restrict us of the equipment identified in figure 8–1 to only automotive skill 

staff personnel as determined by the available equipment and the trained staff availability at the garrison. 


(12) U.S. Forces retirees may be permitted to use automotive skills facilities to repair American automobiles at 

OCONUS locations, subject to special arrangement with host nation officials. 

(13) Control and management of hazardous waste and other controlled materials will be in accordance with Army 

safety and waste management policies and locally prescribed procedures. These will apply to all categories of users as 

well as employees. 

(14) Use or possession of alcoholic beverages or any controlled substances in or around the automotive skills 

facilities is prohibited. Anyone appearing to be under the influence of an intoxicant or to have impaired abilities will 

not be allowed to remain in the area. 

(15) Neither facilities nor equipment will be used with intent for personal or commercial profit. 

(16) Operating personnel will be provided means whereby users may identify them as staff. 

(17) Labor and supplies used within a category B incidental services garage will be NAF-funded (resale or services). 

Equipment purchased with APFs may be used in resale of incidental services on an availability priority after use by the 

automotive skills program and where it is not cost effective to purchase a second piece of the same equipment. 

(18) Category C automotive service garages may be established only after complying with the resale policy in 

chapter 12 and in accordance with table D–1, where there is a market demand and an assessment confirms viability. 

Additional operational guidance will be issued by FMWRC. 

Figure 8–1. Technical and safety restricted equipment 


45

8–11. Better Opportunities for Single Soldiers 

a. BOSS provides opportunities for active duty Soldiers, with emphasis on the single (and unaccompanied) Soldier, 

to participate in physical, self-development, leisure, and educational activities. Specific responsibilities of the IMCOM 

Regions and garrison commanders are detailed in DA Circular 608–06–1. 

b. A BOSS committee will be established at each installation to furnish Soldier input to the garrison commander, 

who uses committee recommendations as the basis for improving single Soldier MWR programs and enhancing Soldier 

wellbeing. 

c. The BOSS committee will consist of single or unaccompanied Soldiers representing individual units. The elected 

executive committee members of the BOSS committee will be approved and supported by the installation command 

sergeant major. BOSS committee members will participate in a BOSS training program, will be able to attend meetings 

frequently, and will be given an opportunity to brief the chain of command. Each committee will develop its own SOP. 

d. In addition to recreation and other MWR issues, committees will address all aspects of Soldier life. Well-being 

issues outside the purview of MWR will be dealt with by the chain of command. The BOSS committee will identify 

issues and requests action to resolve them. Issues that cannot be solved at the installation level will be submitted to the 

installation Army Family Action Plan (AFAP) coordinator, who will ensure that the issues are addressed through the 

installation AFAP conference process. 

e. The installation BOSS program manager will be a MWR recreational professional. MWR issues will be addressed 

by the BOSS program manager, who assists the BOSS committee in directing all well-being issues to the chain of 

command. 

f. A variety of structured events, to include those planned and conducted by BOSS, may be offered within MWR 

facilities, including those for which fees may be charged. 

g. Fees from BOSS events will be deposited into the garrison MWR operating entity or NAFI of the appropriate 

IMCOM Region. 

h. More specific information on the BOSS program will be issued separately by FMWRC. 

8–12. Bingo 

MWR programs may sponsor or conduct bingo games for entertainment and to raise funds for the sponsoring NAF/ 

entity, subject to the following: 

a. Legal review. Bingo operations will be reviewed in advance by the SJA for legal sufficiency. Operations in 

CONUS will conform to State and local requirements, unless conducted on an installation under exclusive Federal 

jurisdiction. Overseas, international agreements will apply. 

b. Prohibitions. 

(1) Contractor-operated bingo programs (contractor control, sale of bingo cards, awards of bingo prizes) are 

prohibited. This will not preclude the MWR program from contracting for bingo-related services (bingo “callers”) on a 

fixed-price basis. 

(2) Pull-tab bingo is prohibited. 

c. Participation. Participation will be limited to authorized MWR patrons and bona fide guests, within the following 

parameters: 

(1) Volunteers serving as callers or monitors, MWR managers, the Director, FMWR, direct-line supervisors, 

employees working the bingo activity, and their immediate Family members may not play. Employees who are not 

working directly in the bingo activity, but who are otherwise employed by the sponsoring MWR program may play 

bingo. 

(2) Garrison commanders may impose additional local restrictions as considered appropriate. 

(3) Employees assigned to one or more MWR programs may participate in bingo sponsored by an unrelated 

program if they are otherwise eligible. 

(4) Members of the general public authorized to use an MWR facility in accordance with notes 1 and 3 of table 7–1 

will not be authorized to participate in MWR bingo. 

d. Prizes. 

(1) Bingo prizes may consist of cash or merchandise. The annual value of bingo prizes will not exceed 90 percent of 

the sponsoring program’s projected annual income. In no case will individual game jackpots exceed $100,000 in any 

combination of cash and merchandise. Other expenses will be limited to not more than 10 percent of income. At a 

minimum, bingo operations will break even. Accounting procedures, to include accrual of bingo prizes, are in DOD 

7000.14–R, volume 13. 

(2) Cash prizes will be paid from a bingo cash prize fund. The Director, FMWR will determine the size of the fund. 

Cash prizes for a single game totaling more than $2,500 will be awarded by check, or by combination of cash and 

check (cash payment is limited to $2,500). 


(3) When there is more than one winner of a single prize, cash will be divided equally among winners and award of 

merchandise prizes will be determined by coin toss. 

(4) Only personnel employed by or assigned to the sponsoring MWR program may control and award bingo prizes 

or sell bingo cards. 

(5) Prizes will be procured in accordance with NAF purchasing procedures. 

(6) The following guidelines govern verification and distribution of prizes: 

(a) Winners will present their winning card(s) for verification. Winners will sign their name and provide their social 

security number (SSN) or alternate identifying number (for example, tax exempt number) on the Bingo Activity Sheet 

when the amount of the winning for a single game is above the IRS reporting limit. Identifying information other than 

the SSN may be required when the amount of the winning card is under the IRS reporting limit. 

(b) The above subparagraph also applies in the case of paper bingo cards. In addition to the identifying information, 

each winner will write and sign their name and the dollar amount or description of the prize won on the back of the 

paper card. Other identifying information may be required. 

(c) Guests with winning cards will provide the sponsor’s identifying information. 

(d) All winning cards, after verification of the win, will be final and the bingo game will then be closed. Delayed 

claims of winning cards by bingo players will not be recognized. 

(e) All verified winning cards will be turned in to the bingo payout cashier who verifies that the information above 

is listed, and checks that the amount or description of the prize is correct. Payout may occur after either floor 

verification or cashier verification. For cash prizes, the cash total of all winning cards will be reconciled with the bingo 

petty cash voucher and the Bingo Activity Ledger. The winning cards (or serial numbers from electronic cards) will be 

attached to the bingo petty cash voucher or other official document. 

e. Advertising. Advertisements and other bingo-related information will not be mailed through the U.S. mail unless 

bingo is authorized or not otherwise prohibited in the State where it is held. 

f. Cash controls. Cash received during bingo programs will be controlled and accounted for as follows: 

(1) All bingo cards, regardless of type, will be prenumbered and date stamped, except for throwaway or punch-out 

cards issued in numerical order. 

(2) A two-part, prenumbered, color-coded theater ticket or guest check will be issued for each card sold. Procedures 

are— 

(a) Tickets of a single color will be issued in numerical sequence for each bingo card sold. When cards are sold in 

multiples at a special price, a different ticket color will be used and issued in numerical sequence for each card sold. 

One portion of the ticket will be given to the patron with the other portion retained by the cashier. 

(b) The serial number of each bingo card sold and the total sale amount will be recorded on each guest check. The 

original of the guest check will be retained by the cashier and a copy given to the patron. 

(c) At the end of the bingo games, the MWR program manager, or a designated representative, will reconcile cash 

receipts, less cash payoffs and expenses, with the cash register tape and reconcile the tape with the number of tickets or 

guest checks issued. Discrepancies will be noted and explained in writing, after which the Bingo Activity Report will 

be prepared in accordance with DOD 7000.14–R, volume 13. 

g. PO operated bingo. POs may conduct bingo games in MWR facilities under provisions of DOD 5500.7–R. When 

so authorized, the organization will operate the games, including card sales, cash control, and prizes. The MWR 

program bingo caller may call games, subject to reimbursement by the PO to the MWR program. POs will adhere to 

management controls applicable to bingo operated by the MWR programs. 

8–13. Bowling 

a. Description. Bowling center activities may include bowling leagues, open bowling, tournaments, instructional 

programs, exhibitions, youth services-sponsored events, locker rentals, and child care services for bowling center 

patrons in accordance with AR 608–10. Pro shops and other bowling-related resale services may be established based 

on market demand. This includes food and beverage service, alcoholic beverages, ball drilling, amusement machines, 

and billiards, and so on. 


(1) United States Bowling Congress (USBC) certification specifications and standards cover the following: 

(a) Bowling lanes, automatic pinsetting machines and related equipment will be installed, repaired, and maintained 

in accordance with the USBC certification specifications and standards. 

(b) USBC sanctioned leagues and tournaments will conform to the rules and regulations. 

(2) Bowling groups or clubs that do not wish to have sanctioned leagues and tournaments will not be required to do 

so. However, non-USBC sanctioned leagues or tournaments may not use any of the products or services offered by the 

USBC to leagues, tournaments, or the bowling center. 

(3) A record of pinsetter readings for each lane will be maintained. Lines will be accounted for as bowled, 

promotion, warmup, mechanical failure or testing, or walk-a-ways (left without paying). Lines bowled and paid will be 

reconciled to lines bowled and cash received. A record of lines bowled will be kept by open, league, tournament, and 


47

other play. A record of league lines bowled will be kept by adult, senior, junior, and other. Records of lines lost 

because of mechanical failure or testing will be kept by the pinsetter repairers. Any differences are explained. 

(4) Installation bowling centers holding membership in recognized bowling associations may host leagues/tournaments 

sponsored by these associations, if league/tournament locations rotate among other area civilian facilities. At no 

time may an Army bowling center solicit a non-DOD league or tournament. 

(5) Bowling managers may have monthly expense accounts to assess market trends in the bowling industry. Policy 

outlined in paragraph 8–24 for military club managers’ personal expense accounts will apply to bowling managers. 

(6) At the discretion of the garrison commander (or designee), the Director, FMWR and the Community Operations 

Division (COD) chief or equivalent counterparts, bowling center manager, and their full-time assistants may be exempt 

from paying open bowling lane fees. This exemption will apply to official use only and not to personal use. 

(7) Bowling management will be trained as outlined in the Army Civilian Training, Education and Development 

System (ACTEDS) for Career Field 51. 

8–14. Casino games 

Casino games played at Monte Carlo or Las Vegas events are conducted by MWR programs for authorized patrons and 

their guests, subject to the following: 

a. Plans for casino events will be reviewed in advance by the SJA for legal sufficiency. Casino games conducted in 

CONUS will conform to State and local requirements, unless conducted on installations under exclusive Federal 

jurisdiction. The use of slot machines (mechanical, electronic, or video), roulette wheels, and other gambling devices 

(see 15 USC 1171 et seq) are prohibited in CONUS. Overseas, international agreements apply. 

b. Only play money or chits will be authorized for use as bets; there is no use of legal currency. After play money 

or chits are purchased by patrons, they may not be exchanged for legal currency. Legal tender or chits may be used to 

purchase food, beverage, and other items sold at the event. 

c. Employees of the sponsoring MWR program, their Families, and volunteers assisting in the games may not take 

part in any game or accept any prize. 

d. An MWR program may conduct up to four casino events a year. Overseas IMCOM Regions may establish higher 

limits as necessary to meet customer demands. POs, when authorized under the provisions of DOD 5500.7–R and AR 

210–22, may conduct one casino event a year. When a PO sponsors a casino event, it will repay the host MWR 

program for all expenses; the organization retains only earnings, less the amount to cover MWR expenses. If the MWR 

program operates food and beverage sales, then the MWR program will retain all income from such sales. 

e. Reputable and experienced persons conducting casino games may be contracted by the servicing contracting 

office for the MWR program or employed as authorized by AR 215–3. 

f. At the end of the games, prizes will be awarded to players with the most and fewest winnings or an auction is 

conducted, permitting players to bid their winning chits or play money on items purchased specifically for the event. 

The cost of prizes will not exceed 90 percent of ticket sales after operating expenses are deducted. 

g. Casino games will not be publicized through the mail. 

8–15. Child and Youth Services 


(1) Child and Youth Services (CYS) is a “seamless delivery” system consisting of four services: Child Development 

Services (CDS); School Age Services (SAS), Youth Services (YS), and CYS Liaison, Education, and Outreach 

Services (CLEOS). Each service has associated programs. For CDS, these programs are CDCs and FCC homes. For 

SAS, these programs are School-Age Centers and Camps. For YS, these programs are: Youth Centers/Teen Centers 

and CYS Sports and Fitness (S&F). For CLEOS, these programs are Youth Education Support and Outreach. These 

programs operate in accordance with P.L. 104–106, sec. 568 (Military Child Care Act); P.L. 106–65, sec. 584; and AR 

608–10, in addition to this regulation. 

(2) The CYS organizational structure’s “seamless delivery” system will be implemented at the installation level to 

include CDS, SAS, YS, and CLEOS. CYS will be managed under a single CYS coordinator, who will ensure the most 

efficient and effective use of CYS financial, capital, and personnel resources by leveraging and sharing facilities/fields, 

equipment, staff, funding, transportation, and program materials. The “seamless delivery” system ensures that all CYS 

program staff work under the same pay structure, training, and performance standards regardless of individual program; 

the staff works across CYS program areas; procedures and policies are coordinated across CYS program areas; staff 

meetings and training opportunities are offered across CYS; and CYS staff communicates and plans child/youth 

transition from one program setting to another. 

(3) In order to ensure continuity and predictability of services to CYS patrons Armywide, it is essential that parents 

provide child/youth social security numbers (SSN) as part of the CYS registration/reregistration process. The Army 

requires all CYS patron records to include the child/youth Social Security number in connection with the implementation 

of the automated Child and Youth Management System. 

b. CDS. For additional requirements pertaining to CDC and FCC programs, see AR 608–10 and the current 

procedural guidance issued by FMWRC (IMWR–CYS). Certain regulatory requirements for outreach care within 


CLEOS programs (formerly known as Supplemental Programs and Services) are addressed in AR 608–10, as well as in 

the section noted below. 

c. SAS. SAS programs are directed to school age children (generally ages 6 to 10 years or in grades one through six 

(or five, depending on local elementary school configuration). School-age children will be enrolled in the SAS program 

during parental duty hours and will not be in self-care during weekday, school-out, vacation and/or summer out-ofschool 

time. Until such time as integrated into this section, see current program guidance issued by FMWRC 

(IMWR–CYS). 

d. CLEOS. CLEOS encompasses both Youth Education Support (YES) and Outreach programs. Within YES, the 

program components consist of the CYS School Liaison Officer, Youth Education Liaison, and CYS Instructional 

Activities. Within Outreach, the program components consist of Parent Liaison, Community Liaison, Registration and 

Referral, and Outreach Care and Supervision Options. Until such time as integrated into this section, see current 

program guidance issued by FMWRC (IMWR–CYS). 

e. YS. 

(1) Description. YS offers a range of positive activities for middle school youth and teens that promote healthy 

development and ease transition to adulthood. YS includes Youth Centers supporting the Middle School/Teen (MS/T) 

Program (ages 11 to18 years) and the S&F Program (ages 3 to18 years). YS programs encompass a variety of safe, 

supervised alternatives (weekdays during out of school hours, evenings, and weekends) that— 

(a) Promote positive attitudes and reinforce Army core values. 

(b) Offer youth opportunities to build skills and feel competent in both competitive and noncompetitive situations. 

(c) Empower youth to contribute to their community. 

(d) Foster the development of life skills and avocations. 

(e) Foster the development of technological aptitude and competence. 

(f) Instill values associated with the pursuit of sports and recreational activities, particularly self-discipline, perseverance, 

and decision making. 

(g) Enhance or reinforce educational learning opportunities for children and youth through individual and group 

activities. 

(h) Foster the development of leadership, sportsmanship, and teamwork skills. 

(i) Reduce the likelihood of situations (for example, home alone) and behaviors that put youth at risk. 

(j) Provide a variety of opportunities for parental and command involvement. 

(k) Minimize parental lost duty time related to youth misconduct. 

(2) Scope and applicability. The goal of YS is to raise the quality of baseline service delivery across the board and 

eliminate disparity gaps among child and youth programs. This service delivery includes MS/T programs and youth 

S&F programs, whenever offered as a part of or on behalf of installation CYS. 

(3) Operating requirements. 

(a) Youth, regardless of age, who are in grades 1 through 12 and whose sponsors are eligible to use MWR programs 

may participate in YS programs. Garrison commanders are given the authority to permit child and youth from the 

civilian community to participate in Army-sponsored YS programs on a space available basis when it is in the best 

interests of the Army, the installation, and the community. 

(b) For programming purposes, activities are organized to meet the “age appropriate” needs of the following groups 

or comparable local school grade breakouts: Grades one through three; four through five; six through nine; and ten 

through twelve. 

(c) Youth programs that encourage flexibility and choice will be locally determined based on youth interests, Family 

needs, and community circumstances. Age-appropriate activities and support services are offered in four service 

delivery areas. Installations must show a balance of activities provided across the four service areas: Sports, Fitness, 

and Health Options; Life Skills, Citizenship, and Leadership Opportunities; Arts, Recreation, and Leisure Activities; 

and Mentoring, and Intervention, and Education Support Services (see table 8–1). Installation CYS S&F program offers 

nine core program options and several locally determined “elective” options for children and youth ages 3 through18 

years (see table 8–2). 


49

Table 8–1 

Activities within the service areas 

School-age services 

*Individual/group sports and fitness activities 

Teams 

Lessons 

Skill building clinics 

Nutrition education 

Health services 

“Pick up” sports 

Special Olympics 

Tournaments 

Noncompetitive physical activities 

*Pre-Teen Council 

*Youth sponsorship 

*Community service 

*Workforce preparation 

*Youth technology labs 

Ecology 

Civic experiences 

Life skill workshops and classes 

Character education 

Youth organizations (4–H, Scouts, YMCA, and so on) 

*Self-directed activities (formerly open recreation) 

Skill-building classes 

Educational tours 

Individual and group lessons 

Camping and “challenge” experiences 

Recreational trips 

Social events and clubs 

Competitions 

Cultural Arts 

*Homework centers 

Home alone skills 

Child/youth abuse protection 

Mentor programs 

Tutoring 

Sports, fitness, and health options 

Middle school/teens 

*Individual/group sports and fitness activities 

Teams 

Lessons 

Skill building clinics 

Nutrition counseling 


“Pick up” sports 

Special Olympics 

Tournaments 

Noncompetitive physical activities 

Life skills, citizenship, and leadership opportunities 

*Youth Council 

*Youth sponsorship 

*Community service 

*Workforce preparation 

*Youth technology labs 

Youth leadership forums 

Civic experiences 

Life skill workshops and classes 

Character education 

Youth organizations (BGCA, 4–H, Scouts, and so on) 

Youth entrepreneur “businesses” 

Youth exchange programs 

Arts, recreation, and leisure activities 

*Self-directed activities (formerly open recreation) 

Skill-building classes 

Educational tours 

Individual and group lessons 

Specialty camps 

Recreational trips 

Social events 

Competitions 

Cultural arts 

Youth organizations (BGCA, 4–H, Scouts, YMCA, and so on) 

Snack bar/cyber cafes 

Mentoring, intervention, and education support services 

1 Homework centers 

Home alone skills 

Child/youth abuse protection program 

Mentor programs 

Tutoring 


Table 8–1 

Activities within the service areas—Continued 

Conflict resolution training 

Peer mediation 


Parent and youth activities 

Personal safety 

Substance abuse prevention education 

Conflict resolution training 

Peer mediation 

Health and counseling services 

Parent and youth support groups 

Personal safety 

Substance abuse protection education 

Youth crime and violence protection 

Juvenile board 

Notes: 

1 Indicates baseline program 

Table 8–2 

Framework for youth sports and fitness programs 

Team sports 

*Baseline activities (minimum of 2 additional locally selected baseline 

activities) 

*Soccer 

*Baseball/T-ball 

*Basketball 

Softball 

Hockey (ice and/or roller) 

Swimming 

Bowling 

Double Dutch 

Football (flag and/or tackle) 

Lacrosse 

Cheerleading 

Volleyball 

Water polo 

Team handball 

Fitness and health 


activity) 

*Nutrition counseling/education 

*Health promotion classes/events 

Aerobics 

Swimming laps 

Weightlifting 

Biking 

Fitness trails/challenge courses 

Hiking 

Individual sports 

(Minimum of 3 locally selected activities) 

Gymnastics 

Tennis 

Martial arts 

Golf 

In-line skating 

Bowling 

Racquetball 

Track 

Wrestling 

Ice skating 

Swimming 

Table tennis 

Skiing 

Archery 

Outreach 


activity) 

*Intramurals (SAS, MS/T) 

*Motor skill activities (CDC, FCC, SAS) 

*Skill building clinics (SAS, MS/T, community) 

*MWR partnerships (for example, golf, bowling, WCAP) 

School partnerships 

Community sports leagues 

“Pick-up” sports (youth and school age centers) 

Outdoor adventure experiences 


51

(d) The establishment of a youth sponsorship program will be required at each military installation to facilitate the 

integration of youth of installation personnel into new surroundings when moving to that military installation as a result 

of a parent’s PCS (P.L. 104–106). 

(e) As a category B MWR program, APFs are authorized and will be used to the maximum extent available (see app 

D). The charging of annual registration and/or activity fees will be mandated to recoup NAF program expenses. The 

annual registration fee will be confirmed in conjunction with yearly publication by FMWRC of the CYS Fee Guidance. 

The registration fee will be collected by CLEOS for all CYS programs and these funds will be used to support all CYS 

programs. 

(4) Staffing requirements. Youth will be supervised at all times by a combination of paid YS employees and adult 

volunteers. A 1:15 paid-adult- (employee/contractor) -to youth ratio will be required for before and after school, 

school-age care options, and MS/T and S&F programs, regardless of location. The following staffing requirements will 

apply to YS programs: 

(a) A 1:15 paid-adult- (employee/contractor) -to-youth ratio will staff program activities (excluding instructional 

classes, organized team sports, and occasional special events that involve parents or other adults as chaperones, for 

example at dances). Teen employees and volunteers may supplement, but not substitute for, adult employees. 

(b) Youth team sports programs will follow the adult-to-youth ratios defined by the national governing body rules 

for each sport and may use volunteers to meet the ratios. 

(c) Overnight camps will follow the American Camping Association adult-to-youth ratios and use adult employees/ 

contractors to meet the ratios. Teen employees and volunteers may supplement, but not substitute for, adult employees. 

(d) Adult employees/contractors will staff instructional classes according to professionally accepted practice, with 

additional consideration given to the ages and skill levels of the participants and the type of instruction being provided. 

(e) A 1:15 adult- (employee/contractor) -to-youth ratio will be used for special events (such as dances, lock-in), 

trips, and tours. Adult volunteers may supplement paid employees to meet a 1:8 adult-to-youth ratio. 

(f) A minimum of a 1:10 adult- (employee/contractor) -to-youth ratio will be maintained for all high-risk activities 

(that is, where greater than normal risk might result because of the unpredictable nature of the activity itself) in order to 

ensure the safety and well being of participants. Lower ratios of 1:6 (more adults per youth participants) may be 

necessary and should be determined locally. High-risk activities include, but are not limited to, swimming, rappelling, 

white water rafting, and high rope activities. 

(g) Personnel employed in administrative and support positions, such as Youth Center Director, School-Age Services 

Director, Training and Program Specialist, and clerical, maintenance, supply, and food service employees, will not 

be counted in determining staff supervision ratios. 

(5) Training. 

(a) Youth staff will be trained and competent to handle the age group to which they are assigned. All personnel will 

be trained according to an individual development plan, which outlines and documents required CYS Foundation 

Training or CYS transition training requirements. The CYS foundation training individual development plans and CYS 

transition training individual development plans will be the Child and Youth Personnel Pay Program official training 

records for all child and youth employees. Foundation training refers to the beginning or “baseline” training, normally 

completed during the first 18 months of employment. Transition training refers to training specifically designed to 

accommodate employees with background skills entering the CYS system from outside the Army, completed during 

the first 12 months of employment. 

(b) The Army has selected the National Alliance for Youth Sports (through its National Youth Sports Coaches 

Association (NYSCA)) as the certifying organization for Army Youth S&F programs. Each installation CYS S&F 

program will become a sanctioned NYSCA chapter, authorized to provide training in order to fulfill all requirements 

for NYSCA certification of coaches. Individuals who serve as Army Youth S&F coaches must complete all requirements 

to obtain and maintain NYSCA certification. 

(6) Staff responsibilities. 

(a) All youth programs will be professionally managed (that is, at least a director or an assistant director must be 

available) during operating hours, regardless of the location. At least one professional staff person will be available to 

provide immediate support to subordinate staff at all times. Minimum staffing will be two, even if 15 or fewer children 

are in attendance. 

(b) All staff members, contract instructors, and regularly scheduled volunteers will be screened in accordance with 

AR 215–3, AR 608–10, and the latest FMWRC guidance. 

(c) Staff, conditionally appointed, will be subject to completion of local pre-employment background checks, and 

line of sight supervision (LOSS) must be in place. The use of video monitoring equipment in youth occupied areas 

monitored by a cleared employee also will satisfy the LOSS requirement. Permanent employment will be contingent on 

favorable Criminal Investigation Division (CID), National Agency Check, or National Agency Check with Written 

Inquiries, and State Criminal History Repository inquiries. 

(d) Staff will ensure that risk management procedures including LOSS, accountability mechanisms, and child abuse 

prevention practices are in place to protect the health, safety, and well being of youth at all times. 

(e) Youth staff (management and direct services employees) work schedules will reflect the prime operating hours 


of the installation youth program, including the youth center. Such time periods will include after school, evenings, and 

weekends during the school year, and during the workday in summer, vacation, and holiday periods. 

(7) Staff outreach. 

(a) Youth staff will participate in relevant installation/community groups such as the Human Resource Council, 

Family Advocacy Case Review Committee, Mayoral Program, Juvenile Case Management Team, Special Needs 

Resource Team, and Installation Volunteer Advisory Council. 

(b) Organization and command membership in professional, trade, civic, and other such organizations will be 

authorized in accordance with chapter 5, this regulation, and AR 360–1. 

(c) Youth sports personnel may participate in activities sponsored by local affiliates of national governing bodies 

listed in table 8–5. Contracting for officiating services is prescribed in paragraph 8–27. 

(d) YS programs will form on and off post partnerships and collaborations with schools, MWR programs, Family 

support programs, chaplains, military police, and national youth organizations to deliver programs more effectively. YS 

will be an active member of the Boys and Girls Club of America, have 4–H Clubs, and implement programs 

promulgated by the National Alliance for Youth Sports. See chapter 7 pertaining to agreements with State and local 

governments and contact FMWRC (IMWR–CYS) regarding MOUs with national youth organizations. 

(8) Activity locations. Activities for youth may be conducted on or off post in youth centers, teen centers, MWR 

facilities, community and DOD Education Activity Schools, and MWR and religious education facilities through 

partnerships with MWR staff and chaplains. Activities will include the eight baseline programs noted in table 8–1 as 

well as S&F program activities listed in table 8–2. These baseline programs for youth establish predictability of 

services and promote youth development and include individual/group sports and fitness activities, self-directed leisure 

activities, homework centers, computer labs, youth sponsorship, workforce preparation, community service, and youth 

councils. Baseline programming and the youth S&F programs are the means for putting skills from the four service 

areas into practice. 

(9) Separate activities. When a Youth Center includes both SAS and MS/T programs, activities for school-age 

children and middle school youth and teens will be generally conducted separately by— 

(a) Scheduling different time blocks for each age group within the same facility. 

(b) Designating specific areas for each of the age groups (school age, middle school and teens) within the Youth 

Center or other facility. 

(c) Operating a stand-alone teen center. 

(10) Self-directed activities. Self-directed activities (formerly open recreation) will be made available to the general 

youth population and as a program option of after-school programs for school-age children as well as middle school 

youth and teens. 

(11) CYS Annual Report (RCS CSGPA 1731). Each installation and separate military community that conducts any 

C Y S p r o g r a m w i l l c o m p l e t e a n d s u b m i t a C Y S A n n u a l R e p o r t c o n s i s t i n g o f t h e f o l l o w i n g t o p i c a l e l e m e n t s : 

demographics, staffing, profile, food service, and an information paper. FMWRC will disseminate the report requirements 

to IMCOM Regions. Installations will complete the report and transmit it electronically through the IMCOM 

Region. It is due to FMWRC on or about 15 September (closeout date for data being 30 July). 

(12) SAS Annual Report (RCS CSGPA 1734). CYS staff is responsible for providing program data to the SAS 

coordinator to complete the SAS annual report. 

(13) CYS Program Review Board. A CYS Program Review Board may be established to address or make recommendations 

on situations and issues that include multiple proponents, or on CYS operational issues (such as program 

eligibility) that can be broadly interpreted. 

(14) Compliance. Programs must comply with applicable statutory requirements and DOD policies. Youth program 

procedural guidance issued by FMWRC (IMWR–CYS) will supplement policy guidance contained herein and other 

regulations applicable to youth programs. 

8–16. Community recreation center programs 

a. Description. CRC programs and services support the overall MWR mission and are directly related to readiness 

by delivering individual and group activities during peacetime, mobilization, contingency, and wartime operations. 

Eligible participants include active duty and retired military, DOD civilians, and their Family members (see table 7–1 

for a complete patronage breakdown). These programs will be planned by leisure service professionals and provide 

individual physical, mental, and social benefits. 

b. Programs. CRC programs and services will offer a variety of customer-driven, staff-directed, and self-directed 

recreation programs. Programs will be delivered in the recreation center, community activity center, and other facilities 

or are nonfacility based. Customer-driven programs are activities identified by the user and include current recreation 

program trends. 

c. Guidelines. Programs and services may include, but are not limited to— 

(1) Instructional and skill development classes that teach new skills or develop existing skills. 

(2) Special events such as exhibits, lectures, tours, festivals, plays, cultural exchange activities, and organization 

days. 


53

(3) Competitions and tournaments. 

(4) Special interest clubs and group meetings include examples such as gardening, photo, drama, computer, chess, 

and recreation clubs (excluded are military clubs discussed separately in this chapter and POs, which are governed by 

DOD 5500.7–R, DODI 1000.15, and AR 210–22). 

( a ) C l u b s w i l l b e o p e r a t e d a s p a r t o f t h e C R C p r o g r a m t o i n c l u d e b u d g e t i n g , p r o c u r e m e n t , a n d p e r s o n n e l 

administration. 

(b) A club representative designated by the program manager may collect fees or charges for an event; however, any 

ongoing activity or facility operation that handles funds is staffed by a CRC employee. 

(5) All property purchased or provided by the Government is Government property. 

(6) Equipment checkout for on and off-premises use. 

(7) Central point for information and referral for recreation opportunities. 

d. Construction. CRC facilities will be constructed or modified to meet the interests and uniqueness of the 

community and will be located in high traffic areas. (Central locations on the installation where community service 

functions, troop billeting, the main exchange, and other MWR operations are found.) Facility interiors should reflect 

contemporary design trends. 

(1) Guidance for redesigning or renovating existing structures as CACs is in DG–1110–3–142 and definitive plans 

issued by FMWRC. Guidance for designing Recreation Centers is in DG 1110–3–132. 

(2) Facility construction must be developed as part of the MWR 5-year plan. 

e. Operating hours. Operating hours will be established based on user leisure time and as determined by the 

installation. 

f. Fees and charges. CRC programs and services may assess fees to supplement program cost. The following are 

examples of activities that could charge an appropriate fee: 

(1) Instructional classes offered by a contract instructor. 

(2) Special events. 

(3) Contests and tournaments. 

(4) Food and beverage snack bar operations. 

(5) Services provided by the CRC staff to include support for private club meetings, receptions, retirements, and 

promotion parties. 

(6) Equipment for off premises use. 

(7) Special interest recreation clubs. 

g. Funding. Programs and services that are delivered in a CAC will be funded according to the program category 

(category A, B, or C) and each program retains its own program code. 

h. Alcohol consumption. See chapter 10. 

i. Reimbursement of volunteer incidental expenses. See chapter 5. 

j. Unit recreation. Unit recreation activities will be planned and conducted by unit personnel in unit areas. CRC 

personnel will assist units by— 

(1) Coordinating recreation programs for the unit. 

(2) Training military personnel designated by the unit commander as the unit A&R officer or NCO to assist in 

program development and delivery, and selecting and procuring supplies and equipment. 

(3) Participating in mobilization planning and training. 

k. Contractor operations, concessionaire contracts, and other agreements. To maintain, expand, or enhance MWR 

opportunities, these contracts or agreements may be used for, but are not limited to, operating on-post programs, resale 

concessions affiliated with established operations, offering special events, and instructor services. 

l. Agreements. Written cooperative agreements for authorized MWR patrons and their Family members to use offpost 

programs and facilities may be negotiated with local municipal recreation agencies to provide the most costeffective 

program delivery. Off-post facilities and programs will be surveyed to determine suitability, accessibility, and 

affordability for patrons. For additional patronage information, see chapter 7. 

m. CRC tournaments and contests sponsored by FMWRC. 

(1) General. 

(a) Rules for tournaments held at installations will be under the discretion of the installation facility program 

manager. United States Chess Federation (USCF) sanctioned tournaments must be conducted in accordance with the 

rules of the national governing body (USCF) or a like organization. 

(b) Active duty Soldiers, including National Guard and Reserve Component Soldiers on active duty are eligible. 

Soldiers must have their responsible commander’s approval. 

(c) As sponsor, FMWRC will fund expenses of the host installation and participants’ travel and per diem to the 

program. FMWRC will issue instructions annually covering all aspects of the program. 

(2) All-Army Chess Tournament. The annual All-Army Chess Tournament is the entry level chess tournament for the 

U.S. Army and may lead to the participation in the Inter-service and NATO International competition. The tournament 


will be sanctioned by the USCF and players must be members and will receive a USCF rating following the 

competition. 

(a) Participants must be U.S. active duty Soldiers, including Army National Guard and Army Reserve Component 

Soldiers on active duty, who have served 90 days or more. Each Soldier must complete DA Form 4878 (Army Chess 

Tournament Application) along with a memorandum of concurrence from their unit commander stating their eligibility 

during tournament play dates. Also accepted will be online applications at www.armymwr.com under Community 

Recreation Centers. 

(b) DA Form 4878 is found on the MWR Web site, www.armymwr.com, then click on the Recreation Center page. 

Fax to the number listed on the Web page or address to Commander, Family and Morale, Welfare and Recreation 

Command, ATTN: IMWR–CR, 4700 King Street, Alexandria, VA 22302–4418. 

8–17. Entertainment (performing arts) 

a. Description. The entertainment program provides diverse, demand-driven activities such as, but not limited to, 

music, unit entertainment activities, special events, theater, the United States Army Soldier Show, the All-Army Soldier 

Showband (USA Express), and the Parade of American Music. 


(1) General. 

(a) Activities will be supervised directly by an entertainment program manager, who is also the installation 

copyright control officer, and a staff of professional specialists. 

(b) Potential revenue-generating activities may encompass a variety of events such as offering individual or group 

classes and workshops, which may result in a standalone music event or as a component of another event that assists 

the command MWR mission. Sources of revenue generated by the entertainment program may include ticket sales, fees 

and charges, corporate sponsorship, and locally initiated special events. Entertainment personnel will support revenue 

generation at other MWR programs by providing artistic, professional, logistical consultation, and support. 

(c) Commercially produced music events may be used at any location, including field training areas, remote or 

distant locations. 

(d) Permanent, dedicated rehearsal and performing areas will be required to facilitate activities. 

(2) Musical activities. 

(a) Musical activities organized for individuals or groups may include stage movement and dance, vocal and 

instrumental music, rehearsals, classes and jam sessions, which may result in public performances of variety shows, 

concerts, recitals, competitions, pageants, specialty acts, support to holiday events, unit organizational day, and similar 

types of activities. 

(b) Copyright and royalty clearance policy in this chapter will be used for all music events. 

(c) Music activities may be conducted in a variety of facilities and locations. Every effort will be made to ensure 

noise control and accountability of equipment, particularly when space is shared. 

(d) Self-directed Soldier or other community bands will support entertainment and special event activities. 

(e) Activities not operated in community complexes include— 

1. Unit entertainment centers, designed to accommodate music and theater-type activities and events such as bands, 

variety shows, and competitions in troop housing areas not located close to community support complexes. 

2. Show mobiles, designed and equipped to transport and present musical and theatrical productions in field training 

areas or other locations. 

(3) Special events. Special events are large-scale activities for the entire community. Expertise in entertainer 

selection and logistical coordination of special events is an integral function of the entertainment program. Events 

include, but are not limited to— 

(a) Major entertainment, such as large-scale concerts that showcase professional entertainers. They may be produced 

locally or by an independent production company. 

(b) Local community carnivals, holiday festivals, patriotic celebrations, circuses, and major sporting events. 

(c) Posting IMCOM Region and DA-sponsored events, which showcase talents of Army personnel. (Logistical 

requirements for DA-sponsored events are issued by FMWRC.) Army-sponsored events include— 

1. The United States Army Soldier Show, a large-scale musical variety show that showcases talented Soldiers, tours 

throughout the world. Shows presented by Soldiers will be held at military and civilian locations. Installation 

entertainment program managers will coordinate logistical requirements. 

2. The annual United States Army Battle of Bands competition, which is the culmination of efforts that promote the 

creation of Soldier bands. These bands may be nominated by respective IMCOM Regions to compete at the Army 

level. 

3. The All-Army Soldier Showband and “USA EXPRESS,” selected from the Army’s Battle of Bands, which 

comprises active duty Soldiers, tours Army clubs. The Army entertainment program manager will be responsible for 

logistics. 

(4) Theater activities. 


55

(a) Theater activities provide entertainment produced locally or by means of contracted community or professional 

theater organizations. 

(b) Theater activities include, but are not limited to, script reading groups, revues, thematic and variety shows, plays, 

musicals, festivals, dinner theater presentations, and theatrical competitions supported by instructional workshops on 

stage and backstage theatrical skills. 

(c) Rehearsal, set construction, performance, and secured technical equipment storage space are required to ensure 

accountability of all production-related equipment. Facility designs may be based on DG 1110–3–120. Conversion and 

use of shared space may be done to ensure isolation from other activities and to prevent acoustical or functional 

interference with other operations. 

(d) Theater activities may be conducted where food and beverage is offered as part of the event. Operational 

guidelines on dinner theater type operations are issued by the FMWRC. 

(e) The scope and variety of theater events will be based on market demand and the availability of installation 

resources, corporate sponsorship, and revenue potential of activities, including admission fees. 

(f) Army bands will not furnish theatrical musical support where admission fees are charged (see ARs 220–90 and 

360–1). Soldiers assigned to Army bands will not be prohibited from participating in activities as individuals in their 

off-duty time. 

(g) Organizational memberships in recognized professional organizations for staff development are in accordance 

with chapter 5. If organizational memberships are required for entry into national level competitions, the garrison will 

budget for and funds membership fees for the organization and related expenses. 

(5) Copyright and royalty clearance. Administration of copyright clearance and associated royalty and performance 

material fees and charges is the responsibility of the entertainment program manager or copyrights control officer 

designated by the Director, FMWR. 

(a) A copyright clearance is obtained prior to any public performance of any work (including music, video, film, 

and original works) regardless of the type of facility or location, on or off the installation, or whether an admission fee 

is or is not charged. To perform or display a work “publicly,” according to 17 USC 101, means to perform at a place 

that is open to the public or at any place where a substantial number of persons outside the normal circle of Family and 

social acquaintances are gathered or to transmit or communicate to the public by means of any device or process. Once 

a work has been cleared for a specific date, there is no future use without a new clearance. Clearances are requested on 

DA Form 3238 (Request for Copyright Clearance on Musical or Dramatical Works). 

(b) The FMWRC coordinates installation copyright clearance requests. This includes developing terms and conditions 

with each copyright owner or agent, acting as an intermediary between the installation and the owner or agent, 

and paying the established royalties and related fees. 

(c) Commercial entertainment contracts will clearly state that the producer is responsible for obtaining all copyright 

clearances and paying all royalty, rents, and related fees unless otherwise specified. The entertainment program 

manager, or facility manager for performances conducted at any other installation facility, ensures that the producer 

holds all necessary clearances and licenses and that terms and conditions permit performance on the installation. Copies 

of all copyright clearances or licenses are forwarded no later than 8 weeks prior to the scheduled audition date to Army 

Entertainment, FMWRC, ATTN: IMWR–SR–E, Copyrights and Clearance, P.O. Box 439, Fort Belvoir, VA 22060. 

(d) The audio or video recording, filming, or duplication of electronic copyrighted works performed in Army 

facilities will require permission and granting of licenses by the copyright owners or agents, and may involve licensing 

fees or additional royalty payments. Policy governing copyright permission is provided as follows: 

1. Recording or use of recordings of copyrighted works for publicity and similar uses may be authorized by the 

leasing agent. Permission is requested on the copyright clearance request and is received prior to use. 

2. The videotaping, filming, or audio recording of a cleared performance, and the duplicating or copying of a 

copyrighted work and subsequent use will not be authorized without a license obtained from the appropriate agent. 

Permission is difficult to obtain and is not frequently granted. When permission is granted, it is generally subject to a 

substantial royalty and to restrictions regarding its use. 

3. Copyrighted works or performances will not be filmed, videotaped, or recorded without appropriate permission or 

under the assumption that license will be granted. Video taping a work for historical records may be authorized. The 

intent to video for historical records will be requested on DA Form 3238, as an attachment to section I, in the 

Rehearsal/Production Materials Requested section. This request also pertains to videotaping for publicity purposes. 

4. A detailed request for permission to film, record, or duplicate copyrighted works must be forwarded to FMWRC 

at the address in paragraph 8–17b(5)(c) no later than 8 weeks prior to the audition date of the work that is proposed to 

be filmed, taped, or recorded. Requests must include all information that is pertinent to the request. 

(e) Clearance procedures are explained in appendix H. 

(f) Copyright restrictions exist. Numerous copyright owners occasionally make copyrighted works available to 

entertainment program activities at substantial discounts or on a royalty-free basis. Works obtained under noncommercial 

utilization or on a royalty-free agreement may require a clearance. A work offered in the past as royalty-free may 

have changed status. A clearance will be submitted to FMWRC in all cases regardless of what one source may state. 


1. Use of musical arrangements obtained from records or tapes of performances that charge direct or indirect 

admission fees will not be authorized without the appropriate copyright clearance. 

2. Music obtained from royalty-free sources may be performed in dinner theaters, cabarets, and similar activities. 

However, a clearance will be submitted to ensure the royalty-free status is current. This pertains to such events whether 

an admission fee is charged or not. 

3. Music used in performances for which admission is charged or that is performed by paid, professional entertainers 

in Army facilities or under Army sponsorship will not be procured or otherwise furnished by the Army on a royaltyfree 

or discounted basis. This provision also applies to unofficial activities of Army bands. 

(6) Parade of American Music competition. Each February, the Parade of American Music is observed by a 

nationwide competition to support and encourage performance and the creation of original music works by American 

composers and musicians. Annually, the FMWRC issues entry information. DA Form 3680 (Parade of American Music 

Entry Form for Army Participants) will be used for performance entries; DA Form 3680–1 (Parade of American Music 

Entry Form for Army Composers) will be used for composer entries. 

8–18. Entertainment, commercial 

MWR programs may book professional entertainment that meets the standards of this regulation and the military 

community. Garrison commanders will take into account the nature of the target audience and language or behavior by 

performers which may be inappropriate for that audience. When necessary, signs or other advisories will be used to 

inform attendees that the performance is intended for adult audiences and may contain material that may be offensive 

to some individuals or inappropriate for individuals under 18 years of age. Nudity is prohibited; however, appropriately 

costumed performers such as topless male Polynesian and Native American dancers are permitted. 

a. Competition. Because the selection of an entertainer is based in large part on customer preference, competition 

generally is not required. This, however, does not permit the exclusive use of one entertainer or individual. When there 

is more than one agent or individual who can provide equivalent quality and at comparable prices in a given 

geographical area, the sources will be rotated. 

b. Contracts. 

(1) Verbal contracts are prohibited. 

(2) The Director, FMWR may approve commercial entertainment contracts in amounts not to exceed $25,000. The 

garrison commander (may be delegated) will approve commercial entertainment contracts in amounts that exceed 

$25,000. 

(3) Entertainment contracts will be issued in accordance with AR 215–4. 

(4) Entertainment contracts that exceed a NAF contracting officer’s warrant will be accomplished by the FMWRC 

NAF Contracting Directorate. 

(5) When required by State or local laws, contracts will be negotiated only with licensed agents. 

(6) Entertainers will not receive free food, beverages, lodging, transportation, or other considerations unless specified 

in the contract as part of this remuneration. 

(7) A contract will not be entered into between an MWR program and a Government employee or any organization 

substantially owned or controlled by one or more Government employees, unless the MWR program’s needs cannot 

otherwise reasonably be met. The Joint Ethics Regulation (DOD 5500.7–R) and AR 215–4 will apply. 

c. Other requirements. 

(1) Copyright clearances will be obtained before the performance date, as prescribed in this chapter. 

(2) When practical, performers will be auditioned by program managers at no cost to the MWR program. 

(3) Performances will be monitored by the manager on duty. A written evaluation of each act will be submitted to 

the contracting officer and serves as the CAO receiving report. 

(4) Payments will adhere to the following criteria: 

(a) When the entertainment contract specifies that entertainers are to be paid immediately after a satisfactory 

performance, checks will be issued by the CAO in advance and held by the responsible manager until entertainers have 

satisfactorily completed the performance. 

(b) All or part of a payment may be withheld in the event of substandard or objectionable performance or other 

contract violation. The contracting officer and SJA will be consulted immediately. Every effort will be made to 

negotiate a settlement before payments of any kind are made. 

(c) Payments may be made by purchase card or convenience check in accordance with the applicable threshold and 

if specified in the contractual document. 

(5) Garrison commanders and the public affairs office (PAO) will be advised of incidents or acts by performers that 

may attract unfavorable comment, controversy, or publicity. On the first working day following the incident, the 

responsible manager will provide a report that specifically addresses— 

(a) The nature and extent of substandard or objectionable performances or other contract violations. 

(b) Offers of gratuities or bribes, if applicable. 

(c) If applicable, references made by performers that may offend followers of any faith, acts, gestures, or remarks 


57

that tend to mock physical handicaps or that ridicule the U.S. Government, the military services, or any individual or 

racial, religious, ethnic, or national group. 

(6) The installation PAO will be informed in advance of event publicity arranged by performer’s agent. 

8–19. Golf 

a. Description. The Army golf program offers recreational golf, open play, tournaments, and services such as golf 

instruction, golf resale, food and beverage services, catering, and other golf-related activities for eligible patrons. 


(1) The United States Golf Association (USGA) rates Army golf courses in the United States; handicaps are 

computed in accordance with the USGA system. 

(2) Appropriate local procedures will be established to reserve a reasonable number of weekend, weekday, and 

holiday starting times for active duty and RC Soldiers. 

(3) Local provisions for storage and use of privately owned golf cars will be approved by the garrison commander 

(or designee). The following conditions will apply: 

(a) Owners will carry liability insurance for golf car use and storage and sign a liability release. Copies of the 

insurance policy and liability release will be kept on file at the golf course. Failure to retain adequate and current 

coverage will result in removal of the golf cars. 

(b) Privately owned cars will not be repaired or maintained by golf course employees. 

(c) Fees and charges will be prominently displayed. Posted storage charges will be assessed to offset any expenses 

incurred. Trail fees will be charged to each user, owner, or driver; additional charges for guest riders are at the 

discretion of the garrison commander. Storage and trail fees will be waived for disabled individuals who must use golf 

cars modified specifically to accommodate their disability. 

(4) Golf managers may have monthly expense accounts to assess market trends in the golf industry. Accounts must 

be reasonably related to the needs of the MWR program. Policy outlined in paragraph 8–24 for military club managers’ 

personal expense accounts will apply to golf managers. 

(5) Golf Course managers and their full time assistants may be exempted from paying greens fees and from golf car 

rental when necessary to perform their official duties in accord with DOD 5500.7–R. This exemption will not apply to 

personal use. 

(6) To reduce damage to greens, practice tees, golf cars, carpets, and wooden stairs, metal spiked golf shoes will not 

be worn on Army golf courses. 

(7) Procedures will be established to notify players and suspend play when lightning or other severe weather is in 

the vicinity. 

c. Activities. 

(1) Golf activities may include— 

(a) Lessons, open play, league play, tournaments and golf outings, and special groups such as juniors and seniors. 

(b) Hosting of interservice golf tournaments. 

(c) Handicapping services. 

(d) Driving ranges and miniature golf. 

(e) Locker, equipment, and golf car rental. 

(2) Pro shops and other golf-related resale and services may be established based on market demand. This includes 

food and beverage service (including alcoholic beverages), golf club fittings and repair, and amusement machines. 

(3) When supported by a cost benefit analysis, installations may contract for the services of golf professionals under 

the provisions of AR 215–4. The contract may allow the golf professional to share in earnings from the sale of 

merchandise, golf car and equipment rentals, and golf lessons. First-line golf course managers are eligible to receive 

income from golf instruction under management incentive plans. In addition, revenue-sharing may be developed for 

NAF employees who also provide golf instruction. See AR 215–3, paragraphs 9–8a and b for policy on management 

incentive plans and revenue sharing, and paragraph 6–8e for policy on establishing performance standards. 

d. Reciprocal privileges. Reciprocal privileges among Army golf courses are established so that Army golfers may 

experience play at other Army golf courses on a reciprocal basis. 

(1) Local policy, such as restricting reciprocal patrons to space available play, may be established to ensure that 

reciprocal privileges do not negatively impact on the installation golf program. 

(2) With IMCOM Region approval, garrison commanders may assess reciprocal patrons a discounted daily greens 

fee if the commander determines that reciprocal privileges are adversely affecting the golf course’s ability to generate 

revenue. 

(3) Reciprocal privileges will be granted by issuance of a prenumbered advance greens fee card that includes name, 

grade (if applicable), and the period for which the card is valid. 

(4) Active duty Soldiers and members of the RC and their Family members who have paid advance greens fees at 

their military installation will be granted reciprocal privileges at any Army golf course, subject to limitations in 

paragraph 8–19d(1) and (2). 


(a) Army personnel who reside on an installation other than the one to which assigned may pay advance fees at 

their place of residence or assignment. 

(b) Army personnel and members of the RC assigned to a duty station with no golf course or not assigned to an 

Army installation may pay advance greens fees at the Army golf course nearest their work or residence. 

(5) Other eligible patrons will be granted reciprocal privileges at Army golf courses that are located over 50 miles 

from their home course, subject to limitations in paragraph 8–19d(1) and (2). 

(a) Retirees will pay advance green fees at the Army golf course nearest their residence as determined by 

appropriate documentation containing the individual’s current address. 

(b) DOD civilians will pay advance greens fees at the installation of employment if regulation nine-hole or larger 

courses are available. If they are not available, advance greens fees may be paid at the installation nearest their 

residence or work location, subject to local patronage policy. 

(c) Eligible patrons on temporary duty will be granted reciprocal privileges for 14 calendar days at the duty location. 

Regular or advance green fees will be paid, beginning on the 15th day. 

(6) Other eligible patrons who choose to pay advance greens fees at an Army golf course different from the one 

closest to their place of assignment or residence waive their right to reciprocal privileges at the Army golf course 

nearest their residence. 

(7) Golf managers will maintain separate records of the number of rounds played by reciprocal patrons for market 

analysis, assessment of fees and charges, and budget preparation. 

e. Integrated pest management program. 

(1) Each Army golf course will develop a comprehensive integrated pest management program that minimizes 

reliance on chemical applications to control pests and weeds. 

(2) Golf course employees (golf course superintendent or designated groundskeeper) whose duties include the 

application of chemicals must be a DOD-certified pesticide applicator. Their duties include, but are not limited to, the 

supervision of mixing and application of chemicals, providing guidance on proper use as to type and quantity, and 

ensuring that the storage of chemicals meets proper storage and safety requirements. They will inform the golf course 

manager of the type of chemicals being applied so that appropriate safety warnings may be displayed for patrons and 

employees when necessary. 

(3) The program will ensure that chemicals are stored, safeguarded, used, and disposed of in accordance with 

applicable Federal, State, and local regulations and host nation directives for MWR golf courses located OCONUS. 

8–20. Gyms/physical fitness centers/field houses 

a. Description. These facilities provide programs and activities that promote healthy lifestyles. 

b. Physical fitness facilities. The terms “gyms, physical fitness centers, and field houses” are used interchangeably in 

this regulation. Physical fitness programs develop the cardiovascular fitness, strength conditioning, flexibility, and 

recreation of DOD personnel. Physical fitness facilities are the hub of the installation-level sports and fitness program, 

access to which is vital to fitness throughout the Army community. Fitness classes and exercise programs/instructions 

also may be offered in these facilities (see para 12–8, which addresses fees charged). 

(1) New facility placement and designs. New facilities will be located in or near troop housing areas or in other 

areas conducive to maximum use. 

(2) Construction standards (design-build). Physical fitness facilities (building category code 74028) standards 

include separate office, service, locker rooms (with saunas) and storage areas, and a combination of the listed 

functional areas/modules below (indoor pools are accounted for separately under building category code 74072, Indoor 

Swimming Pool): 

(a) Gym module, to include indoor multiple purpose courts and spectator area. 

(b) Indoor jogging track (one per installation). 

(c) Structured activity module, to include racquetball courts. 

(d) Fitness module, to include resistance training area and cardiovascular training area. 

(e) Exercise module, to include a multiple purpose exercise area. 

(f) Administrative office space. 

(g) Lobby. 

(h) Support module, to include laundry and storage. 

c. Fitness extension services. Mission commanders may use APF contracts for organizational memberships in local 

commercial or municipal fitness facilities when military facilities are not available or adequate. Examples include a 

gymnasium, community center, or recreation center complex with running tracks, athletic fields, shower/locker facilities, 

and swimming pools for aquatic training. Prior to authorizing contracts, mission commanders will conduct an 

assessment to confirm that— 

(1) Commuting distance to the nearest military installation would cause an unreasonable hardship on affected 

personnel. 

(2) There are no free opportunities in the civilian community where assigned.. 


59

d. Youth use. All participants are expected to conduct themselves in a reasonable, responsible, and prudent manner 

in accordance with facility rules and regulations. Youth may use adult indoor physical fitness centers only under the 

following provisions: 

(1) Soldier programs must not be displaced. 

(2) Children 12 years old and under may not use mechanical cardiovascular equipment, or strength, sauna, or steam 

rooms or jacuzzi areas at any time. 

(3) As a Family member, children and youth (15 years old and under), not otherwise prohibited in paragraph 

8–20d(2), must be actively participating in the same activity and under the direct supervision of a parent or guardian. 

(4) Youth must be a participant in a special program, organized and conducted by CYS, schools, or other authorized 

youth organizations. 

(5) Children of kindergarten age and older will use gender-appropriate showers, locker rooms, and bathrooms. 

8–21. Leisure Travel Services 

a. Description. Leisure travel is any travel that is not paid for or reimbursed by APFs or NAFs. Leisure Travel 

Services (LTS) provide information and access for personal travel and travel related services at representative industry 

or discount prices. The installation LTS manager will be the central information and referral source for leisure travel 

programs and activities conducted on installations or sponsored by installation organizations or agencies. Functions are 

listed at figure 8–2. The LTS functions consist of services provided under one or the other of two subprograms: 

Commercial Travel Services (CTS), and Information, Tickets and Reservations (ITR). 

Figure 8–2. Program alignment 


(1) CTS. CTS include the booking and sale of reservations on behalf of eligible patrons on common carriers, and 

other arrangements in support of travel, for example lodging and vehicle rentals. Commercial travel services are those 

that are available to the general public on a scheduled basis. These include reservations and ticketing on airline, rail, 

and bus. The installation MWR program will be responsible to the extent CTS are available at the installation. Where 

feasible, CTS may be provided to eligible patrons via local NAF contract, by qualified MWR NAF employees, or via 

Internet Web site maintained by FMWRC or the local NAFI/entity. Where the installation uses Web-based service as 

its means of providing service, ITR or other MWR employees will be trained to assist military members in navigating 

Internet sites to acquire services, and to assist individuals without credit cards to pay for transactions using a dedicated 

NAF Purchase Card under the Government Smart Pay Program. 

(a) The office that handles commercial travel, whether supported by a contractor or MWR program, may receive 

payment in the form of a commission from the travel supplier as compensation for selling and booking the travel 

arrangements. Because the amount of commission will vary, and in some cases, no commission may be paid, a 

transaction fee may be charged as consideration for making a reservation on behalf of the patron. In the event a 

transaction fee is added to the cost of travel, the fee will not exceed 80 percent of the average transaction fee charged 

by travel agencies in the nearest civilian community. An installation MWR program may receive a share of the 

transaction fee from the contractor but only in cases where the revenue is needed to off set NAF expenses for delivery 

of the service. It is the obligation of the local LTS program manager to ensure that Soldiers are charged the lowest 

possible price for travel arrangements. If CTS are provided by an MWR program, no transaction fee will be added to 

the basic cost of the travel arrangement in excess of the amount needed to off set actual NAF costs to deliver the 

service. The NAF goal of providing leisure CTS will be “service over profit.” 

(b) Local CTS contracts will not imply or delegate any right of exclusivity to the contractor. The Army reserves the 

right, always, to inform and provide its members of best values and alternative sources of travel services. 

(c) Installation NAFIs/entities will provide information to their patrons concerning alternative sources of travel 

services—for example via Internet Web sites and telephone reservation centers. Installation NAFIs/entities will promote 

and publicize the availability of Army or local installation Web sites that provide information and sales of travel 

services. A dedicated Web site will be established and maintained by FMWRC for this purpose. Where feasible, sales 

resulting from the Web will result in a concession fee. Concession fees generated from online sales will be paid to the 

NAFI/entity identified by a purchaser at time of the sale. 

(d) At training installations, the MWR program working in coordination with the Basic Training/Advance Individual 

Training coordinator(s) and the installation LTS provider are responsible to ensure support for the annual year-end 

exodus movement. Minimum support will consist of counseling travelers, processing individual requests for tickets, 

accepting payment, and issuing all necessary travel documents to the traveler. 

(e) Under terms of an APF contract awarded by Surface Deployment and Distribution Command, the official travel 

contractor will be required to make personal/leisure travel arrangements in conjunction with official travel, and 

Emergency Leave travel arrangements. Arrangements for leave in conjunction with official travel are limited to pointto-point 

transportation, vehicle rental arrangements, and lodging. As a convenience to the customer, the official travel 

contractor may also make travel arrangements for Family members not named on the travel orders but who wish to 

accompany the individual who is authorized to perform the travel. 

(2) ITR offices. These offices provide incidental travel and travel-related services, other than those defined as 

commercial travel. These authorized services include information about activities and venues located both on and off 

the installation; event and attraction tickets, including those sold via contracted kiosks; web site and telephone 

reservation centers; group and individual travel arrangements; drive travel arrangements; lodging arrangements; vehicle 

rental arrangements; and other advance sales or registration services that support installation NAFIs/entities. Conditions 

of discounted individual tour, travel, and ticket arrangements are usually referred to by industry as frequent individual 

traveler arrangements. These arrangements seek to provide the economic benefits of group sales to support a class of 

individual customers. 

(a) ITR offices will make available for sale to authorized patrons, tickets to off-post attractions such as entertainment 

programs, sports events, theme parks, and other commercial programs that have broad appeal to the military 

community. Tickets may be sold to customers from staffed offices and/or using one or more components of a virtual 

ticket office (VTO). 

1. Tickets may be acquired by ITR offices for resale via consignment agreements in accordance with AR 215–4; 

prepaid purchase; ordering through a central ticket distribution program operated by and for DOD components; or by 

issuing military travel vouchers (MTVs) supplied by FMWRC for prepaid admission to attractions that participate in 

the program. ITR NAF operating expenses are expected to be offset from markups included in the end-price paid by 

the customer. 

2. Self-service ticketing systems may be installed at installations under provisions of a VTO, to include direct 

customer purchase via a Web site, or at a telephone reservation center. A fee will be paid to NAFIs/entities from all 


61

sales. VTO services are provided by an Army NAF contract administered by FMWRC. Fees from VTO sales will be 

paid centrally and dispersed to each NAFI/entity via the ABIF. 

(b) Group tours, cruises, and other types of package vacation arrangements may be sold by ITR offices under terms 

of Army or other DOD service preferred provider agreements. 

(c) Hotel reservations may be made by ITR on behalf of authorized patrons who request such service. NAFIs/ 

entities may accept commission payments from the lodging property for reservations in accordance with standards of 

the trade, provided there is a formal agreement between the property (or hotel chain) and the NAFI/entity that 

authorizes such payment. Alternatively, prepaid arrangements may be made under the MTV program, where the 

property has agreed to accept the MTV under “net” payment terms (noncommissionable). The ITR office may provide 

hotel reservation service to any authorized incoming traveler requesting such assistance, provided such referral is 

voluntary and not directed by installation authorities. 

(d) An ITR office may operate as an additional registration and advance sales outlet for any NAFI/entity-sponsored 

program or event. This provision does not prevent other NAFI/entity operations from managing their own sales or 

registration processes separately or in coordination with the ITR office. 

(e) In the ITR operating environment, modern electronic communications in the form of e-mail, Internet access, 

civilian telephone, and electronic facsimile machine are essential tools necessary to acquire information, make and 

confirm reservations on behalf of customers, and otherwise provide a timely response to the requirements of customers 

and suppliers. All operating offices will be expected to have ready access to each of these media in order to effectively 

serve their patrons. 


(1) Guidelines for tour directors, guides, and escorts are contained in appendix I of this regulation. In the event an 

accident or other incident occurs on any group tour sponsored or arranged by the ITR office and which results in 

personal injury or death, the FMWRC program manager will be notified by the local ITR manager or individual in 

position of equivalent responsibility within 3 calendar days of the incident. 

(2) Army preferred provider agreements that require payment of concession fees from travel sales will direct such 

payment in the form of an electronic fund transfer to the Army MWR Fund. To receive fee distribution from any Army 

travel services contract, NAFIs/entities must participate in the Army Banking and Investment Fund (ABIF). Fees 

generated at sites where there is no bona fide NAFI/entity, or where the NAFI/entity does not participate in the ABIF, 

will be retained by the AMWRF. Fees from any central Army travel services agreement will be recorded under 

program code “KD” or “LS” (FMWRC will provide information in annual budget instructions). 

(3) Only authorized NAFI/entity patrons may use LTS to arrange activities for POs of which they are members. 

When a PO arranges a group travel event for its members through an off-post source, it may not advertise or solicit 

sales on the installation to nonmembers of the PO. Where arrangements for a PO-sponsored tour have been made 

through the commercial travel office or ITR, the PO may, at its option, open the tour to nonmembers who are eligible 

patrons of NAFIs/entities. 

(4) Overseas, the United Services Organization (USO) may operate tour programs when authorized by the overseas 

IMCOM Region. Such authority must be specified in a written MOU or other formal agreement between the USO and 

the IMCOM Region or the garrison MWR operating entity. All tour and travel-related services not identified in the 

agreement are the responsibility of the LTS program and may not be offered by the USO without a change to the 

agreement. 

(5) With concurrence of the local Director, FMWR , the CTS provider and ITR office may provide limited logistical 

support to friends and Family members of Army personnel who are invited to attend graduation or other official 

ceremonies conducted at an installation. Services may include commercial travel arrangements, local lodging arrangements, 

and other amenities offered as a courtesy to these guests. 

(6) Acceptance of commissions and fees will be subject to the terms and conditions of contracts issued in 

accordance with AR 215–4. Override payments based on agreements with favored vendors are prohibited. 

(a) FMWRC may negotiate contracts or marketing agreements on behalf of NAFIs/entities, with national or regional 

travel service providers and attractions. Prices, rates, services, or commissions will be stipulated in the agreements. 

Agreements are posted to a secure Web site; authorized MWR managers will be provided a user identification and 

password to acquire access to the secure site to download new agreements, prices, and timely information. A summary 

of active agreements is available from the Management Links on the Business Programs (FMWRC) at www.armymwr.com. 

Installations may establish local or regional agreements to augment the FMWRC agreements. 

(b) Army NAFIs/entities will be encouraged to participate in central ticket distribution programs operated by DOD 

components without a formal contractual agreement or purchase request. Authority to participate must be approved by 

the NAF financial manager or other supervisory authority in the NAFI/entity chain of command. 

c. Event tickets. Tickets accepted by a NAFI/entity, including those received on consignment, may not be withdrawn 

from sale or reserved for individuals based on their rank or official government position (military or civilian). In all 

cases, all military personnel will be provided an opportunity to purchase tickets on an equal basis (see also para 12–8). 


8–22. Library and information services 


(1) General libraries. General libraries are the central information resource for the military community providing the 

tools and services to impact mission readiness, support life-long learning, enable literacy, and enhance the military 

community’s well being. Services include, but are not limited to administration, public services (that is, borrower 

services, interlibrary loan access, reference/research services, and programming), mission support/Army initiatives, 

educational support, and technical services. Libraries offer in-depth reference/research services (electronic and traditional 

formats) to include referral to other installation and DOD programs/collections. They offer a full range of 

information technology to access information and perform management functions. They also offer Internet access for 

customer use, and participate in consortia, networks, resource sharing cooperatives and regional or nationally sponsored 

bibliographic databases. Libraries are subject to standards of regional educational accrediting associations, the American 

Council on Education, and the Military Installation Voluntary Educational Review, which review and accredit 

colleges and universities offering classes on Army installations. General libraries are directed by professional librarians, 

are a part of the overall Army Library Program, and are operated in accordance with the following standards: 

(a) DOD MWR Library Standards. 

(b) Army MWR Library Baseline Standards. 

(c) American Library Association standards and practices. 

(d) Association of College and Research Libraries standards. 

(e) Special Libraries Association standards. 

(f) Appropriate industry standards. 

(2) Mission. General libraries sustain readiness by contributing to joint knowledge superiority while concurrently 

supporting research, outreach, education, training, well-being, and life-long learning. 

(3) Library system. A library system is a group of libraries supporting a common mission. On installations having 

two or more libraries, one is designated as the main library and all others are branch libraries. If there is only one 

library, it is designated as a main library. Where technical, academic, or other special libraries are located on the same 

installation, the general library should develop formal agreements as necessary to form a mutually supportive library 

system. All libraries will take advantage of new technologies to support information requirements. A library system 

includes some or all of the following: 

(a) A main library may be either the headquarters of an installation library system or the sole general library on the 

installation. Main libraries provide complete services to users as well as overall administrative and technical services 

support for the system. A main library may also be a consolidated library that supports various elements and 

requirements of the installation to include MWR and education. 

(b) A consolidated library has merged various installation/activity missions to form one supportive program. Various 

missions supported in a consolidation include, but are not limited to, academic, technical (research and training), offduty 

education, and MWR. An alternative to a fully consolidated library is consolidation of any one of the following 

library elements: management, facilities, functions (for example, technical processing). As with all other activities, a 

consolidated library requires adequate dollars for staffing, resources, and facilities. 

(c) A branch library operates under direction of the main library staff and has a separate permanent staff, facility, 

and permanent base collection. Normally, a branch library is established in a hospital, a remote billet area, a housing 

area, or a location which supports an education center. 

(d) A field collection is established where the number of personnel or lack of facilities, preclude the establishment 

of a library. Field collections are directly supported by a library/library system; materials are exchanged on a regular 

basis. Normally, field collections do not have a permanently assigned staff. 

(e) A bookmobile is a mobile unit providing library services to personnel isolated from the main library. Bookmobiles 

operate on a regular advertised schedule and have a designated collection and staff. 

(f) Paperback book outlets are established to distribute paperback books from kits received through the Army 

centralized acquisition program. 

(g) Office collections are publications issued by main libraries to offices that have a recurring need for specific 

reference items. 

(h) A regional reference center is a library designated to receive additional materials from the centralized acquisition 

program. Regional reference centers offer extensive interlibrary loans and books-by-mail service for the military 

community, military region, and TDY personnel. Before serviceable material previously purchased by FMWRC is 

withdrawn from a collection, titles must be approved by FMWRC. 


(1) Procedures for establishment and disestablishment of libraries are in AR 735–17. 

(2) Library standards are issued separately by DOD and FMWRC. 

(3) The Privacy Act systems notice for Library Borrowers’/Users’ Profile Files (A0215–1 DAPE) is available on 

line at the DOD Privacy Act Systems of Records Notices. User information is released only after a review of the 


63

equest by the appropriate Freedom of Information Act or Privacy Act adviser to ensure that the request complies with 

provisions of AR 340–21. 

(4) Provision of library service to prisoners at Army confinement or correctional facilities will be in accordance with 


(5) Library materials made or acquired and preserved solely for reference and copies of documents preserved only 

for convenience or reference are not included within the statutory definition of the work “record” and therefore are 

exempt from records management policies (AR 25–1, paragraph 8–2f(1)). This includes machine-readable items such 

as floppy disks, microfilm, microfiche, databases, CD–ROMs, and e-mail. 

(6) Library materials and equipment acquired for use in Army libraries are exempt from visual information 

equipment and records management provisions of AR 25–1, paragraph 7–2b(15). This includes still and motion media 

systems, computer graphic equipment, and conference room presentation systems. 

(7) Historical materials are protected in accordance with AR 735–17 and AR 870–5. 

(8) Registered first-class or numbered insured mail is used for the mailing of books and other materials that are one 

of a kind, rare, out of print, irreplaceable, or exceed $200 in value. AR 25–51, paragraph 2–32, authorizes the use of 

express mail under limited conditions. Other library material is transmitted by third- or fourth-class mail, depending on 

the weight and type of material. 

(9) The Central Book Acquisition Program (RCS CSGPA1701), supported by FMWRC, provides a continuing 

selection of general reading material and reference titles in all formats, including online databases for Army libraries. 

(a) Publications are selected on the basis of broad appeal and reference applicability and supplement local requirements. 

Installation librarians budget for and procure items required to respond to unique installation or community 

needs. 

(b) Paperback book kits are selected and procured monthly for isolated units, hospitals, confinement centers, 

contingency operations, and units on maneuvers and exercises. 

(c) Procedures for requesting books through the central acquisition program are issued annually by FMWRC. 

(10) FMWRC may request reports from libraries, as required. 

(11) Federal copyright law reserves to copyright owners the exclusive right to reproduce and distribute their works. 

Libraries and archives may make and distribute single copies of copyrighted material in response to requests from 

patrons or other libraries when the material is for private study, scholarship, or research. To implement this exception, 

libraries located in the United States or its territories or OCONUS display a warning notice. The warning sign is 

printed on heavy paper or other durable material in type at least 18 points in size and displayed near copying machines 

or equipment to inform users of copyright restrictions. Unsupervised copying equipment in libraries where patrons 

make copies for themselves will display the following notice: “The making of a copy may be subject to the Copyright 

Law” and “NOTICE–Warning concerning copyright restrictions—the Copyright Law of the United State (Title 17, 

United States Code) governs the making of photocopies or other reproductions of copyrighted material.” 

(12) There will be no censorship in Army libraries. Materials will cover different views of controversial subjects. 

Garrison commanders will encourage and promote the availability of books, periodicals, and other media, which 

present a wide range of viewpoints on public issues (AR 600–20, para 5–9). 

(13) Staffing and training are benchmarked against industry practices and the DOD Core Library Standards as stated 

in the Library MWR Baseline Standards (para 8–3). Position classification and job qualifications are based on Office of 

Personnel Management Job Qualification and Position Classification Standards for Libraries. Recruitment for librarian 

vacancies at the mandatory DA referral grade levels (GS–11–15 for librarians) is filled through referral lists obtained 

from the servicing CPAC. The area of consideration for these vacancy announcements must be at least DA-wide (AR 

690–950, para 2–4, table 1–2). For further information, see AR 690–950, chapter 3. Minimum training requirements for 

librarians include one annual training session at national/regional conferences or workshops. Training at either Military 

Librarians Workshop or Army Library Training Institute will meet that requirement. 

(14) Unofficial network services (Internet access) for library patrons, for example, Family members, retirees, will be 

in accordance with AR 25–2, paragraph 4–20b(2), and chapter 7 of this regulation. 

(15) Libraries will be constructed or modified to meet DOD library standards, provide for functionality in use of 

materials and equipment, and be located in high traffic areas. Facility interiors will reflect contemporary design trends. 

Guidance for designing or renovating existing structures is in the UFC 4–740–20, DG–1110–3–110, and DC TI 

800–01, appendix D. 

(16) Policies applying to all Army libraries are found in AR 25–97. 

8–23. Movies 

This program provides free-admission motion picture entertainment to isolated or deployed military personnel and 

civilians. 

8–24. Food, beverage, and entertainment programs on military installations 

a. Description. MWR food, beverage, and entertainment (FB&E) programs encompass all MWR food operations 

such as military clubs (membership and nonmembership), FB&E operations, and snack bar operations in MWR 


facilities such as bowling, golf, and recreation centers. MWR FB&E programs are an integral part of the commander’s 

overall food service programs and assist the commander, along with AAFES and subsistence/troop feeding, in meeting 

the food service needs of the installation’s assigned or visiting personnel. 

b. Military clubs. Military clubs are primarily membership programs and include officer, NCO, enlisted, and 

community clubs. 

(1) Mission. The mission of military clubs is to— 

(a) Sustain Soldier morale and well-being, which contribute to high performance combat effectiveness. 

(b) Provide a constructive social alternative. 

(c) Support the Army goal of readiness and retention by providing an installation focal point for social activities and 

military events that foster unit camaraderie, esprit de corps, and cohesiveness. 

(d) Satisfy market demands of the total Army Family by providing services such as food and beverage, entertainment 

and recreational activities, check cashing and currency conversion, where applicable and supported. 

(e) Provide alternative feeding facilities to supplement troop dining facilities. 

(f) Meet installation mobilization, emergency, protocol, and hosting requirements. 

(g) Meet the need for command-sponsored events and social function requirements of an installation and its 

personnel. 

(h) Provide alternative feeding facilities at OCONUS locations where host nation eating facilities (kantines) are not 

available to feed local and third country nationals. 

(2) Club management. 

(a) The establishment of separate clubs for officers, NCOs, and enlisted personnel will depend on installation and 

market demand. Community clubs will be established to serve two or more categories of patrons, such as NCOs and 

enlisted personnel, and may include equivalent grade civilians. 

(b) IMCOM Regions and garrison installation contingency plans will include provisions for club use as additional 

feeding facilities during mobilization and emergencies. 

(c) Installations may contract or execute an MOA with the garrison MWR operating entity for clubs to provide troop 

feeding service for emergency situations and when troop dining facilities are not available. 

(3) Membership. Membership will be voluntary. Individuals will not be required to give reasons for declining or 

ending membership. 

(a) Patronage eligibility is defined in chapter 7. 

(b) The assessment of membership dues is optional. 

(c) When spouses are eligible for membership in different clubs because of rank or grade, each may join the club for 

which eligible. When both spouses are eligible for membership in the same club, each may become a member or one 

may join as a sponsor. 

(d) Persons with dual eligibility, such as a retired NCO who is also a DOD civilian with the equivalent grade of an 

officer, may join any club for which they are eligible. 

(4) Suspension. Garrison commanders (may be delegated) may suspend a member’s privileges if a member violates 

the DOD 5500.7–R or the conditions of membership set by regulation or club house rules. Temporary suspension of 

privileges will comply with house rules. 

(5) Dues. 

(a) When dues are charged, a separate membership dues structure for officers, NCOs, and enlisted personnel may be 

established. 

(b) Clubs that charge membership dues will issue club membership cards that verify that dues have been paid and 

show the issuing club, cardholder’s name, and expiration date. Refer to table 7–1 for authorized patronage. 

(c) Clubs will issue numbered club cards, keep a list of cardholders, and annually update the list for accuracy and 

currency. 

(d) When dues are charged, members will be charged for the month in which they join, but not the month in which 

they leave the installation or end their club membership. Members are refunded prepaid dues based on reassignment 

orders or letters of resignation. 

(e) Dues will be billed at the end of the month for the subsequent month. 

(f) The Director, FMWR and community operations division (COD) chief or equivalent counterparts, club managers, 

and their full-time assistants will be exempt from dues. 

(6) Reciprocal privileges. 

(a) Members will be afforded reciprocal privileges at all Army installations under the same conditions as host club 

members, except that credit will be limited to commercial credit or bank cards accepted by the host club. 

(b) Reciprocity will not apply to host club special events and promotions such as membership nights, discount 

coupons, or local recognition programs, unless approved by the garrison commander (or designee). 

(c) Persons who are members of clubs that do not charge dues will not be entitled to reciprocal privileges at clubs 

that charge dues, unless permitted by intraservice or local joint service agreements. 


65

(d) Membership cards are the primary means of identifying persons eligible for reciprocal privileges. 

(7) Use by nonmembers. Nonmembers may use club facilities if one of the following conditions applies: 

(a) Guests of members (persons not eligible for membership who have been extended a specific invitation by a 

member). The member assumes full responsibility, including payment for services and products received. 

(b) Personnel in a transient status or on TDY for less than 30 days. 

(c) ROTC cadets, when visiting an Army installation in an official status or as approved by the garrison commander 

(or designee), cadets, and midshipmen of the Service academies. 

(d) Nonmembers assigned to or employed by the installation who are authorized MWR patrons. Normally, use is 

limited to food service and common areas during established dining hours when considered by the garrison commander 

in the best interests of the Army. However, nonmembers may also be granted access to ancillary activities offered by 

membership clubs, such as tennis courts and swimming pools, subject to space availability and assessment of usage 

fees, at the garrison commander’s discretion. 

(e) Nonmembers attending command-sponsored functions. 

(f) Official installation guests. 

(g) Attendees at private functions hosted by a member. This includes functions such as weddings, receptions, 

birthday parties, and other celebrations. See chapter 7, this regulation, for other participants at functions arranged by 

club members. 

c. FB&E operations. These include FB&E theme operations, name-brand dining, catering operations, meeting/ 

conference-type operations, and snack bars. These operations may be incidental to the operation of other MWR 

programs. FB&E operations are nonmembership operations. 

(1) FB&E theme operations. These may include restaurants, lounges, high-energy night clubs, sports bars, and the 

like. They respond to market demands of the installation by providing high-quality food, beverages, and entertainment. 

Such operations are similar to franchise operations in that they employ a high degree of standardization of menu, decor, 

equipment, franchise uniforms, and operational procedures. FB&E theme operations provide brand recognition through 

uniforms, logos, and identifiable trademarks. FB&E theme operations are established only after a positive market 

assessment and are governed by an MOA signed by the garrison commander, the IMCOM Region Director, and 

FMWRC. 

(2) Name-brand dining. See also paragraph 12–2 on resale authority). 

(a) Name-brand casual dining. These include national and regional name-brand, full-service restaurant franchises 

with an average guest check of over $10 and have multiunit operations, centralized marketing, and promotion 

capability and either have or are developing widespread product recognition within the market. These restaurants may 

be freestanding or located in MWR facilities on the installation. “Full service” means offering traditional table service 

with wait staff and/or bar service. Installations desiring an assessment for a name-brand casual dining operation will 

submit a request through their IMCOM Regions to FMWRC prior to commencement of any form of negotiations with 

the name-brand casual dining operation. FMWRC reserves the right to approve or deny any such request following the 

assessment based on the overall impact of the proposed facility on total food sales at the installation. Installations may 

not enter into agreements without the written approval of both the IMCOM Region and FMWRC. 

(b) Name-brand fast food. These include operations within a MWR facility. Installations desiring an assessment for 

a name-brand fast-food operation will submit a request through their IMCOM Regions to FMWRC. AAFES and 

FMWRC will conduct a joint assessment in accordance with the name-brand fast-food MOA. 

(3) Catering operations. These operations provide catered food and beverages as required on the installation. The 

mission of catering is to respond to the needs of protocol, hosting, command-sponsored events, the social functions of 

the installation, and authorized patrons. Catering is accomplished as follows: 

(a) The operation will be centralized on an installation and may be located in a stand-alone facility or collocated in 

another facility such as a community activity center or conference center, or other MWR program. 

(b) The operations located in APF Government buildings, such as conference or community activity centers, will 

pay their pro rata share of utilities. 

(c) Authorized patrons who are members of non-DOD organizations may use catering operations for their organization 

events. 

(4) Snack bars incidental to operation of other programs. Snack bars are food service operations featuring a variety 

of prepared or short-order menu items such as bottled beverages, sandwiches, chips, salads, and pizzas. Machinevended 

and brand-name fast-food operations are not considered as part of snack bars. Generally, services are given by 

an attendant rather than a waitress (no table service). They are operated in conjunction with other MWR programs or 

events such as a bowling center, sports program, or recreation center. Revenues will be attributed to the MWR program 

with which the snack bar is collocated and operated. Technical supervision will be furnished by a qualified food 

service management specialist. 

(5) Meeting rooms/conference-type operations. These operations are normally associated or housed with FB&E 

programs or military clubs. They are authorized to host conference-type activities based on— 

(a) Space availability. 


(b) Patronage, fees and charges, and funding will be in accordance with this regulation. 

(c) Reservations will be in accordance with a locally-developed SOP. 

(d) Meeting rooms/conference-type operations are not intended to act as or replace full-time garrison conference/ 

training facilities. 

d. Policies applicable to all FB&E programs. 

(1) Programs. Installations may operate one or more MWR FB&E programs, depending on need or demand. 

Specific programs may run concurrently or alternately within one facility or in separate facilities. 

(2) Contracting. The installation may use APFs to contract or execute an MOA with the garrison MWR operating 

entity for use of FB&E operations under the authority of 10 USC 2492. MWR FB&E operations, particularly military 

clubs and catering operations, may be in a unique position to respond to installation/command needs for protocol, 

hosting, and command-sponsored events. In many instances, luncheons may be justified on a sole source basis (the 

distinguished visitor’s time is limited, there is insufficient time for transportation to and from an off-post facility, and 

other similar circumstances). 

(3) Animal policy. The only animals permitted in FB&E program facilities will be service animals and animals that 

are part of entertainment programs. Such animals will be controlled by their masters at all times. 

(4) Family members and prizes. FB&E program managers, employees, and their immediate Families and guests will 

not take part in or accept prizes at FB&E program events where cash or other prizes are awarded. 

(5) Alcoholic beverage control. The administration, control, and operation of alcoholic beverage programs will be in 

accordance with chapter 10 of this regulation. 

(6) Check cashing policy. Garrison commanders may authorize membership and nonmembership clubs and other 

FB&E operations to cash patron personal checks. Garrison commanders will determine from authorized patrons 

outlined in table 7–1 which patrons are eligible to cash checks. FB&E operations cashing patron personal checks will 

post a sign indicating patrons authorized to cash checks. Check-cashing controls are in appendix G. 

(7) Private sector sales promotions. Vendors and sales representatives may conduct sales promotions and present/ 

giveaway items in FB&E programs. This may include events such as wine and cheese tastings, fashion shows, product 

displays in conjunction with an event, and direct sales as authorized by this regulation. DOD 5500.7–R applies to all 

promotional giveaways. 

(a) If the event is initiated by a FB&E operation, a request for proposals describing the desired promotion will be 

issued to qualified vendors or sales representatives, in accordance with AR 215–4. 

(b) Vendors and sales representatives desiring to conduct sales promotions will submit a written request including 

the name of the firm and its representatives; the type of event; the product to be promoted or sold; the proposed date, 

time, and place; and a brief description of the method of presentation. 

(c) If products are to be consumed during the event, they will be provided from the FB&E program inventory and 

charged to the vendor at wholesale prices or provided by the vendor or sales representative at no cost. When products 

are furnished in advance, they will be considered inventory and accounted for at zero cash value on stock record cards 

separate from items normally stocked. Stock record cards and issue transfer documents will be maintained in accordance 

with DOD 7000.14–R, volume 13. After the promotional event, the FB&E program will either return all unused 

merchandise to the vendor or buy the merchandise at a price established in advance and stated in the contract. 

(d) If products displayed during the promotion are to be sold directly to the patron, a short-term concession contract 

or purchase order will be used to define terms and conditions. Provisions will specify, at a minimum, the respective 

responsibilities, obligations, and liabilities of the FB&E program and the vendor and the fee or percentage of sales to 

be paid by the vendor to the FB&E program. 

(e) The following information will be kept on file for 3 years after each promotional event: date and type of 

promotion; amount and type of goods consumed; amount and type of goods added to the inventory or returned to the 

vendor; and number of patrons participating, and their reaction to the items offered. 

(f) Promotions conducted under commercial sponsorship agreements will be in accordance with chapter 11. 

(8) Non-DOD groups. Subject to the patronage requirements in chapter 7, non-DOD groups may conduct events at 

clubs, including other FB&E operations that maintain food and beverage operations. Such events will be arranged by 

authorized MWR patrons, who are also members of the group conducting the event (dinner, meeting, or party). 

Fundraising events must satisfy the requirements of DOD 5500.7–R and AR 600–29. Any solicitation must comply 

with DOD 5500.7–R and AR 210–7. Participation will be limited to the members of that group, their Family members, 

and invited guests. Promotions involving alcoholic beverages will be supervised by the FB&E program manager. 

(9) Clubs and other FB&E operations openings. Special promotions to mark openings of new or renovated clubs, 

other FB&E operations, or snack bar facilities may involve giveaways or reduced price activities subject to the 

following: 

(a) A “soft opening” promotion (training employees in preparing and serving food and beverages and determining 

customer preferences) will be conducted 7 to 10 days before the scheduled grand opening. Attendees may include a 

limited number of specifically invited club members or patrons, as applicable, representing a broad spectrum of the 

membership or patron base, as applicable. Food will be sold at not less than cost; beverages are sold at the normal 

price. 


67

(b) A “grand opening,” celebrating the first day of regular business is open to the entire military club membership or 

all authorized patrons if the opening involves a nonmembership FB&E operation, plus invited guests from local 

community and civic organizations and local media when a formal opening ceremony, such as a ribbon cutting, takes 

place. Food and nonalcoholic beverages may be offered at reduced prices or no charge. Alcoholic beverages are sold at 

normal prices. 

(10) Promotional items. Consistent with provisions of chapter 13 and DODD 5500.7–R, clubs and other FB&E 

operations may accept items of small value from vendors (such as swizzle sticks, napkins, coasters, place mats, tent 

cards, glassware, and trays). Clocks, lights, and other items with vendor logos commonly furnished to similar activities 

in the private sector to promote products may be used in the FB&E facility. Controls will be implemented, as needed, 

to preclude preferential treatment or conflicts of interest between vendors and FB&E program personnel using these 

items. These controls will ensure that authorized vendors are given equal chance to provide available items. When 

accepted by program personnel, these items are described, valued, and accounted for in accordance with DOD 

7000.14–R, volume 13. Vendors will not retain any rights over promotional items. 

(11) Vendor relations. 

(a) Within the provisions of DOD 5500.7–R, management will schedule meetings with commercial vendors and 

sales representatives as needed to discuss products and plan events. Sales representatives may not use clubs and other 

FB&E program facilities for personal reasons unless they are authorized patrons. 

(b) Visits are recorded in a visiting sales representative register kept on file in the contracting or Director, FMWR’s 

office for reference during inspections and audits. The representatives’ names and company affiliations, times, dates, 

places, nature of meetings, and other appropriate comments are included. 

(12) Personal expense accounts. Club or other FB&E program managers and their immediate supervisors may have 

monthly expense accounts to assess market trends and other hospitality operations. These accounts are administered as 

follows: 

(a) Annual expenditures will not exceed amounts designated in approved budgets. The Director, FMWR will 

authorize and approve expense accounts and will establish monthly dollar limitations that will not be carried forward 

into the next month. Expenses will be recorded in the month in which they were incurred and charged to the operation 

to which the individual is assigned. 

(b) Expense accounts will not be used to purchase alcoholic beverages. 

(c) Reimbursable expenses are limited to expenses for which actual receipts are received; the date, nature of the 

expense and location are documented; and the signature of the individual claiming the expense verifies accuracy. 

(d) Reimbursement is approved by the individual’s immediate supervisor, payable either by check to the individual 

who incurred the expense or by use of a NAF purchase card when expenses are incurred. 

(e) Expenditures will be relevant to an employee’s responsibilities. 

(13) Other expense accounting. The following are special expenses: 

(a) Food or beverages rejected by a customer and replaced with other items will be charged to General Ledger 

Account 653 (Customer Rejected Goods Expense). 

(b) Expenses related to sampling meals, testing the quality of food, or providing food and beverages without charge 

will be charged to General Ledger Account 652 (Promotion Expense). 

(14) Background checks. CID background checks will be performed prior to hiring club or FB&E program 

management personnel and central cashiers. 

(15) Certification. Club and FB&E program management personnel will participate in a club management certification 

program and attain certification by the fifth year of employment. 

(16) Packaged beverage sales. Packaged beverages are ordinarily sold exclusively by AAFES package beverage 

stores. Exceptions are as follows: 

(a) Garrison commanders may authorize the incidental sale of packaged malt beverages and wine coolers for offpremises 

consumption provided there is no installation package beverage store or there is a valid need for a source of 

packaged malt beverages or wine coolers outside the operating hours of the installation package store. Prices charged 

for packaged beverages will be no less than those charged by AAFES or local, private sector commercial sources. 

(b) Sales of beer by the keg will be controlled by party contracts. 

(c) Sales of beer or wine cooler six-packs across the bar for off-premises consumption at bar retail prices will not be 

restricted. 

(d) Packaged malt beverages sales may be included in catering contracts. 

(17) Food and beverages from other than FB&E operations. No member, guest, or group will be permitted to bring 

food or beverage into a MWR FB&E facility for consumption on the premises. Exceptions are— 

(a) Box lunches at swimming pools and tennis courts. 

(b) Wedding cakes and other specialty food items provided by the host of a private party or reception. Conditions 

will be specified in the party contract. 

(c) Food and nonalcoholic beverages for consumption by employees during scheduled meal periods. 


8–25. Outdoor recreation 

a. Description. The outdoor recreation program provides structured and recreation activities and instruction. It offers 

diverse, healthful, vigorous, and comprehensive outdoor recreation programs while conserving and protecting wildlife, 

forests, wetlands, and other natural resources. 


(1) The installation outdoor recreation director will plan, develop, coordinate, and direct all outdoor recreation 

programs and facilities of the installation and provide technical expertise and advice to the garrison commander. 

(2) High priority will be given to challenge-type activities that contribute to physical fitness and military skills. 

Examples are mountain climbing, rappelling, kayaking, skiing, and swimming. 

(3) An installation outdoor recreation plan will be developed in accordance with chapter 15 and TM–5–803–12. 

(4) Installations with land and water areas suitable for public recreational use and enjoyment have controlled public 

access in accordance with AR 200–3. Access will be subject to safety and military security requirements and will not 

impair the military mission or recreational use by military community members. 

(5) Fees may be charged to recoup all or part of any NAF costs associated with providing “checkout” of APF 

outdoor equipment and for all category B outdoor recreation programs and activities, to include those used by units, 

youth programs, and all other installation activities (see chapter 12 and subparagraph g, below). Fees may be charged 

for participating in or use of any category C outdoor recreation program and activity; and for rental of equipment used 

in these programs, such as trailers for overnight use; and rental of non-program related equipment, such as lawn 

mowers. 

(6) The America the Beautiful - National Parks and Federal Recreational Land Pass is Congressionally authorized 

and provides access to and fee discounts at parks and recreational areas managed by the Federal Government. This pass 

replaces the Golden Age and Golden Access passports; however, these passports may be honored until the expiration 

date on the passports. Associated fees may include, but are not limited, to boat launching, camping, and parking. 

Commanders are encouraged to honor provisions of this pass when presented by MWR patrons. Information on and 

provisions of the pass can be found at http://www.npsgov/fees_passes.htm. 

(7) Outdoor recreation directors will coordinate directly with installation safety directors to establish safety education 

and training programs appropriate to the type and level of programs offered. 

(8) Outdoor recreation directors will ensure that all activity leaders hold the appropriate national instructors certification 

for the activity they are conducting. 

(9) Recreation vehicle (RV) storage, to include boats, trailers, motor homes, and similar outdoor recreation vehicles/ 

equipment, is authorized. A fee is authorized for this service. 

(10) The paragraphs that follow provide an explanation of the programs, activities, operations, and facilities 

representative of the outdoor recreation programs. 

c. Boating. Boating includes watercraft powered either manually or mechanically for both fresh and salt water areas 

(examples of the range of boats include semivee, jon, bass, sailboats, rowboats, canoes, kayaks, Boston whalers, 

paddleboats, and powerboats). Before participating, patrons are required to meet applicable local, national, Federal, 

and/or State requirements, safety standards, licensing, and/or course certification. 

d. Cabins/cottages/cabanas/trailers, plus tent camping. All these may be offered at Army recreational vehicle parks 

and recreation campgrounds (RV/CG). 

(1) Buildings, land, water areas, and equipment maintained with APFs or NAFs will not be continually reserved for 

exclusive or priority use by individuals or groups. Reservations are made on a first-come, first-served basis, regardless 

of rank or grade. 

(2) Homesteading is strictly prohibited. Installations may establish daily, weekly, or monthly reservation/contract 

periods, at the conclusion of which the next eligible patron on a waiting list must be accommodated. Commanders may 

authorize a length of stay up to 60 consecutive days during peak season and 90 days during nonpeak season. 

Commanders may authorize renewals of these reservations/contracts, on the day of expiration, as long as existing 

reservations/waiting lists will be accommodated by future departures. Personnel on extended stays must comply with 

local and State law relative to taxation, vehicle registry, and other residence issues. 

(3) Outdoor recreation staff may reside onsite when required for security or program management reasons. Permanent, 

onsite housing for military managers/staff is considered on-post housing, and Family housing or barracks 

furnishings are authorized. Civilian employees and military personnel drawing quarters allowance will be charged rent 

comparable to similar housing in the civilian community. 

e. RV/CG. RV/CG operations are categorized as either small or large. 

(1) Small RV/CG primarily support camping or participation in other outdoor recreation programs. They have 

minimum or intermediate levels of campground development (gravel or stabilized surface roads, single or multiple 

potable water outlets, electrical hookups, and optional showers and wash house). These RV/CGs are defined as pads, 

designated campsites, and “Kamp” cabins/cabanas with limited utilities. 

(2) Large RV/CG are primarily stand-alone operations with staff dedicated to RV/CG operations. They have 

maximum levels of development (paved surface roads, individual potable water sites, individual electrical hookups, 


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individual sewage hookups, bathhouse, and so on). They are defined as pads, designated campsites, and cabanas with 

utilities. 

f. Equipment checkout centers. These centers are also known as “equipment resource centers” or “operations 

centers.” They are the focus for installation outdoor recreation programs but serve only one phase of the overall 

program. The staff organizes and conducts programs and educational, safety, and instructional classes; organizes 

specialized tours; coordinates equipment facility maintenance; stores RVs for private owners; coordinates outside 

maintenance and renovation projects for parks, picnic areas, marinas, archery, skeet, and trap ranges; and operates 

checkout and resale operations. Equipment available for checkout ranges from backpacks and fishing equipment to 

tents and boats. 

g. Flying activities. 

(1) Army flying activities offer recreational flying opportunities on off-duty time, teaching or improving aeronautical 

skills, and developing an awareness and appreciation of aviation requirements, safety, and techniques. Appendix J 

outlines specific policies and reporting requirements. 

(2) Flying activities will prepare and submit an annual status report using DA Form 4909 (Army Flying Activity 

Annual Status Report) to FMWRC per appendix J. 

h. Garden plots. Areas on an Army installation designated by the Facilities Engineer for use as garden plots by post 

residents. Guidelines for assignments of plots will be developed by each installation. 

i. High adventure. These programs offer a degree of challenge and risk, either real or perceived (to include mountain 

climbing, rock climbing, hang gliding, parachuting, flying, rappelling, kayaking, and white water rafting). Participants 

will receive a safety briefing. Liability waivers are required per paragraph 13–17. 

j. Hunting and fishing. These programs promote the recreational pursuit of fish, fowl, and small and large game, 

with emphasis on introductory hunting, fishing, and shooting activities. The following guidelines will apply: 

(1) Fishing, hunting, and trapping will be in accordance with AR 200–3. 

(2) Hunting and fishing programs will operate within MWR oversight and conduct game harvest procedures and 

objectives in accordance with installation Facilities Engineer and applicable local, Federal, or host nation government 

policies. 

(3) Hunting and fishing events organized by military or civilian organizations will be coordinated in advance by the 

military or civilian organization with the outdoor recreation program office or the DPW, as applicable. 

(4) The facilities engineer will be responsible for the biological aspects of wildlife management (to include stocking 

fish and game, maintaining habitats and feed plots, and determining and measuring the harvest). 

(5) All hunters on Army property must have completed a hunter safety course or the equivalent, required by AR 

350–19 prior to issuance of an installation hunting permit. Where States do not require a hunter safety course, 

installations will conduct semiannual hunter safety courses and publicize the requirement or publicize where the 

courses are offered. 

(6) Special State permit fees may be collected for hunting and fishing permits on military installations and will be 

used exclusively for conservation and management programs developed in coordination with the regional office of the 

U.S. Fish and Wildlife Service and the appropriate State wildlife management agency (see AR 200–3 and the Army’s 

policy guidance for Fish and Wildlife Conservation Fund, 21X5095, dated 8 January 2002). Funds collected are 

deposited to the Wildlife Conservation, Military Reservation, Army account, 21X5–95, and used only on the installation 

where collected. Installations will specify how funds are used. Fees will be used for the protection, conservation, 

and management of fish and wildlife, including habitat restoration and improvement, biologist staff and support, costs, 

and related activities, as stated in the Fish and Wildlife Cooperative Plan, but for no other purpose. 

(7) Funds required to support hunting and fishing fee collection administration will not exceed 10 percent of the 

annual revenues. All collections and planned expenditures will be reported in the Reimbursable Programs Tracking 

System prior to the beginning of each fiscal year, in accordance with the aforementioned guidance. Budget submissions 

will be approved by ACSIM, Office of the Director of Environmental Programs, and coordinated for FAD distribution 

with the Army Budget Office before obligations are incurred. Obligations incurred during the year do not exceed the 

budget authority granted (FAD authority) and any unobligated balances remaining from previous fiscal years. 

(8) The cost of printing and issuing permits is funded from fees collected but will not exceed 10 percent of 

collections. Personnel expenses will be limited to functions associated with issuing permits and wildlife management. 

Requests for exceptions to the provision will be forwarded to Assistant Chief of Staff for Installation Management, 

ATTN: DAIM–ED–N, 600 Army Pentagon, Washington, DC 20310–0600 

(9) In addition to the hunting and fishing permit fees, activity fees may be established to defray NAF expenses 

incurred. Examples of expenses include management of organized hunts and lotteries to determine who may hunt or 

fish, transportation to and from hunting stations, construction and maintenance of hunting stands, and prizes for fishing 

derbies. Fees will be assessed in conjunction with the sale of hunting and fishing permits. Hunting and/or fishing 

program cards will be issued and be required for participation in all or selected hunting and/or fishing programs or 

events. Recreational activity fees will be deposited in the garrison MWR operating entity. 

(10) Open house activities on National Hunting and Fishing Day, the fourth Saturday in September, will be 

authorized as a means by which to recognize Americans who contribute to the conservation of our natural resources, 


acquaint the public with the Army’s hunting and fishing programs, and promote resource conservation. Promotional 

material is available at www.nhfday.org. 

k. Marinas. Marinas are berthing facilities that house either Government-owned boats or privately owned boats, or 

both, and provide resale services. 

(1) Community recreation marinas or boat operations will provide boats for water skiing, fishing, sailing, and paddle 

or pleasure boating for a daily service fee. The berthing of private boats (not to exceed 35 percent of available berths) 

is authorized. There is no APF or NAF support for private boat services. Food and related equipment outlets will be 

operated as category C MWR programs. 

(2) Other marina operations offering more than 35 percent of available berths to authorized private boat owners will 

be operated as category C MWR programs. 

l. Motor sports. Motorized sports are recreation activities that involve motorized vehicles such as snow machines, 

personal watercraft (jet skis), all-terrain vehicles, and related motorized vehicles. 

(1) Motorized recreation equipment will not be authorized unless a risk assessment has been conducted and 

approved by the garrison commander. 

(2) Users will have valid certification to operate as designed by that State in which the installation is located. All 

users must pass a safety course conducted by the outdoor recreation staff prior to usage. 

(3) Full personal protective equipment will be worn at all times, to include helmet, protective eye covering, or 

whatever is required locally by the safety office. 

m. Nature centers. Indoor and outdoor nature centers display animal and plant life to increase the educational and 

environment awareness levels for the general public. 

n. Parachuting. Installations with suitable ground and aircraft resources may establish and maintain sport parachuting 

programs for sport parachuting instruction and related activities for eligible patrons. Establishment as a PO will not 

be authorized. Policy on parachuting programs is outlined below. 

(1) Programs will be operated in accordance with SOPs that meet requirements and standards specified in the 

Federal Aviation Regulations (FAR), parts l, 65, 91, and 105; the United States Parachute Association (USPA) 

Skydiver Information Manual (SIM) (to include Section 2, Basic Safety Requirements, contained therein); and applicable 

Army policies and procedures. 

(2) Instructors will hold a current USPA instructor rating, method specific (static line, accelerated free fall, and 

tandem). If an USPA-certified instructor is not available, an individual holding a USPA Class D license and 

jumpmaster rating will be appointed as an instructor when recommended by the installation sport parachuting safety 

officer and approved by the garrison commander. 

(3) All jumpmasters will hold a current USPA jumpmaster rating. 

(4) Equipment used will be maintained and inspected by FAA-certified riggers and in accordance with FAA 

standards. All participants will provide a statement of physical fitness, as required by SIM, part 4.08. 

(5) Military aircraft made available for Army parachute jumping will be limited to those that have been tested and 

approved for military parachuting. Jumps from aircraft that are owned, leased, or rented by Army flying activities are 

prohibited. Use of commercial aircraft is authorized if aircraft is FAA certified and supports sport parachuting. 

(6) Procedures used in rigging aircraft for sport parachuting will be no less safe than those prescribed for military 

parachuting in FM 3–21.220. 

(7) Surplus personnel parachutes and related air items obtained from a Defense Reutilization and Marketing Office 

(DRMO) must be certified airworthy prior to use by an FAA-certified rigger. 

(8) Training programs will be administered by rated instructors as defined in this regulation. The levels and types of 

training offered are based on the availability of qualified instructors. 

(9) Day and night sport parachute jumping in all USPA options, subject to the availability of qualified instructors, 

jumpmasters, and ground safety personnel, may be offered. 

(10) Demonstrations and the performance of public relations events, in accordance with this and other Army 

regulations (see, for example, AR 360–1), is authorized. 

(11) Resale of merchandise necessary or incidental to sport parachuting programs, operation of MWR snack bars, 

and similar food and beverage operations will be subject to policy in this regulation. 

(12) Use of military aircraft will be at no additional expense to the Army. The scheduling of military aircraft for 

sport parachute jumps must coincide with either scheduled flights or aircrew training requirements. Sport parachuting 

missions will not be used as a basis for exceeding programmed flying hours. 

(13) Garrison commanders may loan Army equipment, including military parachutes and air items, to sport parachuting 

programs if use of operational units for training and mission requirements are not precluded. 

(14) Surplus equipment, including parachutes and air items, may be obtained from a DRMO at reduced or no cost. 

(15) Requests to establish sport parachute programs will be submitted through command channels to the address 

below. Requests will include the number of projected users and a breakout of the patrons by category; estimated 

growth potential; a list of installation and community facilities available for use; the source and proposed use of 


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program funds and the source of aircraft support; and, finally, the point of contact: Commander, Family and Morale, 

Welfare and Recreation Command, ATTN: IMWR–CR, 4700 King Street, Alexandria, VA 22302–4418. 

(16) Garrison commanders (or designees) will appoint an installation sport parachuting safety officer (ISPSO). 

Where possible, the ISPSO is a USPA safety and training advisor. The ISPSO supervises all aspects of sport 

parachuting safety within the command or installation and is a member of the installation safety council, reporting 

directly to the installation safety officer. 

(17) Each program has a sport parachuting safety officer (ASPS0), subject to approval of the ISPSO and the USPA 

conference director. The ASPSO is responsible for the sport parachuting safety program, to include— 

(a) Certification of student parachutists’ advancement from static line to free-fall jump qualifications. 

(b) Ensuring that instructors are qualified in accordance with this regulation and that jumpmasters hold a current 

USPA jumpmaster rating. 

(c) Appointing a drop zone safety officer (DZSO) to control sport parachuting operations at a specific drop zone 

(each DZSO must hold a USPA class C or higher license or, if no C license or above qualified individual is available, 

the ISPSO may authorize a B license holder to act as the DZSO). 

(d) Ensuring compliance with USPA basic safety requirements and maintenance of equipment by FAA-certified 

riggers in accordance with applicable FAR. 

(18) Jumpmasters will control all jumps and discuss each jump with participating parachutists before boarding the 

aircraft, ensuring that each understands the type of jump to be made and is familiar with aircraft exiting procedures. 

(19) Instructors will plan and conduct the training of student parachutists in accordance with FAR and USPA 

requirements. 

(20) Equipment will satisfy requirements outlined in SIM, Section 2 and Section 8, paragraph 8–3. Additionally, 

students will wear military or commercial boots that extend above the ankles (no hook laces). Licensed, qualified 

persons may wear foot gear that covers the foot only. Tennis or running shoes are acceptable; sandals will not be worn. 

Hard helmets, such as hockey helmets or equivalents will be worn, except that USPA license holders and tandem 

students may wear soft helmets. Gloves and appropriate warm clothing will be worn if the temperature at jump altitude 

is below 40 degrees Fahrenheit. Shatterproof goggles and a functional altimeter will be worn on all jumps. All students 

will use automatic deployment devices. A light, visible for a minimum distance of 3 miles, and an illuminated altimeter 

will be used on all night jumps. 

(21) In case of injuries or fatalities, the provisions of AR 600–8–1, AR 385–10, and AR 385–40 prescribe actions to 

be taken. The DZSO will assist in the investigation of nonfatal accidents. The ASPSO and a FAA-certified rigger will 

assist in fatal accident investigations. Completed accident investigation forms will be attached to the Army accident 

investigation report. These forms may be obtained from U.S. Parachute Association at U.S. Parachute Association, 

1440 Duke Street, Alexandria, VA 22304, with a copy of the report provided to the Army Risk Management Insurance 

office (IMWR–FM–I), 4700 King Street, Alexandria, VA 22304–4418. 

(22) The program manager will safeguard, supervise, and administer the program and maintain records of jump 

activity by date, time, place, and jumps by category of patron; and comply with all operational and reporting 

requirements contained in this regulation and DOD 7000.14–R, volume 13. 

(23) Eligible patrons must be at least 16 years of age to participate. The parent or legal guardian of any person 

under the age of legal majority will give written consent before the Family member may participate. 

o. Parks, picnic areas, and playgrounds. These areas are used for diverse recreation activities, ranging from natural, 

underdeveloped areas to large facilities and areas including lakes, picnic pavilions, playing fields, amphitheaters, 

miniature golf, and nature centers. 

p. Rod and gun centers. These centers promote safe hunting, fishing, and shooting, and offer opportunities to 

develop and improve skills. Included are trap and skeet, archery, rifle, and pistol activities. They may offer other 

related services (such as instruction, hunting and fishing license sales, and snack and center related resale operations). 

The following rules apply: 

(1) Physical security of firearms, ammunition, and explosives will comply with AR 190–11 and AR 710–2. 

Established inventory accountability procedures and appropriate measures to preclude loss, theft, or accidental destruction 

will be used. Monthly physical inventories of all firearms, by serial number, and all ammunition and explosives 

will be conducted in accordance with DOD 7000.14–R, volume 13. A joint physical inventory of all firearms, 

ammunition, and explosives will be conducted upon any change of center manager. These provisions apply equally to 

firearms and ammunition owned by the center and those privately owned and stored in MWR facilities. 

(2) Centers located in the United States, its possessions, and Puerto Rico that import firearms or ammunition directly 

from a foreign dealer or manufacturer will be subject to a Federal firearms tax of 10 percent on pistols and revolvers 

and 11 percent on all other firearms and all ammunition, in accordance with Federal law (26 USC 4181). 

(3) Centers that sell firearms or ammunition, or transfer firearms or ammunition to other MWR programs, are 

licensed as dealers by the Federal Bureau of Alcohol, Tobacco, and Firearms (ATF). Applications for dealer licenses 

are coordinated through the installation Staff Judge Advocate (SJA) and submitted to the servicing ATF regional office 

which maintains license application forms and issues dealer’s licenses and renewals. Both the Gun Control Act of 1968 


(18 USC 921–928) and the ATF regulations implemented by Title 27, Code of Federal Regulations, Part 478 (27 CFR 

478), impose these requirements. 

(4) Firearms may be loaned or rented to eligible patrons for use in associated shooting. Ammunition provided to a 

patron as part of the rental fee for a firearm is not considered a sale and does not require a dealer’s license. 

(5) Sales of firearms are limited to eligible patrons who are residents of the State in which the installation is located. 

(For purposes of this regulation, military personnel permanently assigned to the installation are considered residents. 

Otherwise, exceptions are coordinated with the SJA or regional ATF office before the sale is made.) Rifles, shotguns, 

and ammunition are not sold to persons under 18 years of age; handguns and handgun ammunition are not sold to 

persons under 21 years of age. For all firearm purchases, patrons must complete ATF F 4473 (Firearms Transaction 

Record) to verify that they do not fall in the categories listed below. Failure to tell the truth about any category is a 

felony and punishable as a Federal offense. Firearms and ammunition of any kind will not sold to— 

(a) Anyone under indictment for or convicted of a crime punishable by imprisonment for a term of more than one 

year. 

(b) Fugitives from justice. 

(c) Unlawful drug users. 

(d) Any person adjudged mentally defective or a person who has been committed to a mental institution. 

(e) Illegal aliens. 

(f) Anyone with denounced citizenship. 

(g) Anyone receiving a dishonorable discharge. 

(h) Persons with a disqualifying misdemeanor conviction of domestic violence pursuant to the Lautenberg Amendment 

to the Gun Control Act of 1968, 18 USC 922. 

(6) Sale and use of firearms and ammunition overseas will comply with the provisions of status of forces and other 

applicable international agreements. Overseas IMCOM Regions will ensure that controls and restrictions on the sale of 

firearms and ammunition are at least as stringent as those that apply to CONUS installations and include appropriate 

procedures in implementing guidance. Otherwise, sales of firearms and ammunition will conform to the laws of the 

State in which the installation is located and to Federal legislation. Appropriate local practices are developed in 

coordination with the installation SJA. 

(7) The sale of alcoholic beverages is authorized on a case-by-case basis and only when approved by FMWRC, with 

concurrence through command channels. A risk assessment must be completed by the command with all local safety 

precautions addressed prior to submission to FMWRC. See paragraph 10–3 for policy on by-the-drink sales. Food and 

other beverages may be sold. Resale merchandise will be limited to items that are related or incidental to hunting, 

fishing, archery, and target shooting. 

(8) All firearms transactions will be recorded on ATF F 4473. These records will be kept permanently at each 

shooting/rod and gun center and are subject to examination or inspection by ATF agents. Sales will be recorded in 

chronological order and numbered consecutively. The servicing ATF regional office will be notified of planned 

disestablishment or consolidation of any MWR program holding a ATF dealer’s license. Notification will be made at 

least 30 days prior to planned disestablishment or consolidation. For disestablished programs, all required ATF records 

referenced herein will be furnished to the regional ATF office. If consolidation with another MWR program, records 

will be transferred to that program. 

(9) Records of invoices for any ammunition received and sales receipts for all ammunition sold (27 CFR 478.125) 

will be retained for at least 2 years. Sales records for handgun ammunition and ammunition that is interchangeable 

between rifles and handguns will be maintained separately in a bound book, in chronological order, by date of sale. 

The bound book will not be required for sale of shotgun ammunition or ammunition suitable for use only in rifles 

generally available for purchase. 

q. Special interest groups. The development of special interest groups is encouraged, particularly for specialized, 

outdoor recreation programs such as archery, scuba, rock climbing, hunting, equestrian activities, fishing, and skiing. 

Emphasis is on instruction and introductory activities, which encourage novice participation. 

r. Equestrian programs. Equestrian facilities house either Government-owned/-leased or private mounts or both and 

offer resale services. Community recreation stable operations offer a range of services, to include lessons, trail rides, 

hayrides, and stagecoach rides for a service fee. The boarding of private mounts, not to exceed 35 percent of available 

stable space, for a fee is authorized. When the 35 percent limitation is exceeded, stables will operate as a category C 

MWR program. Veterinary service will be governed by AR 40–905. 

s. Trails. Trails include both developed and undeveloped areas used for walking, hiking, biking, cross-country 

skiing, and related MWR programs. 

t. Water programs. 

(1) Water-based programs embrace a broad range of fresh and salt water-oriented activities to include swimming, jet 

skiing, water skiing, scuba, boating, snorkeling, claming, and related activities. Lessons, instructional programs, and 

resale outlets may be offered. Participants and instructors will complete pertinent training/certification per activity to 

meet local, national, or State requirements. 

(2) The Director, FMWR , in coordination with the installation safety office, will determine whether to provide 


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lifeguards at water-based programs, such as at beaches and lake areas, by having a risk analysis conducted in 

accordance with AR 385–10 to determine the specific hazards for the area. This applies in CONUS and OCONUS. 

Such hazards might include tide, current, undertow, dropoff, hidden underwater boulders. Appropriate controls will be 

established to lower the risk to an acceptable level. Control measures will provide for the protection of those personnel 

using recreational beaches and lake areas. The local SJA will advise on the effect that the local tort law has on the 

water safety measures. Paragraph 8–28 outlines policy for swimming pools. To ensure a high level of safety awareness, 

the following must be implemented as a minimum: 

(a) Signs stating “No Lifeguards—Swim at Your Own Risk” must be conspicuous. 

(b) Signs listing water safety requirements will be displayed. 

(c) Available lifesaving equipment such as ring buoys and reach poles. 

(3) See paragraph 8–28 for training and rescue and safety equipment required for guarded coastal beaches. 

u. Winter programs. Winter programs include a wide range of activities: cross-country and downhill skiing, ice 

fishing, tobogganing, ice skating, ice climbing, and related activities. Services such as repair, ski waxing, equipment 

maintenance, lessons, and tours for a fee may be included. 

8–26. Raffles 

Raffles may be conducted to raise funds for MWR programs, subject to the following: 

a. Raffle proposals will be reviewed in advance by the SJA for legal sufficiency. Raffles conducted in the United 

States must conform to State and local laws, unless conducted on installations under exclusive Federal jurisdiction. 

International agreements will apply overseas. 

b. Advance written approval from the garrison commander will be required. 

c. Unless otherwise approved by the appropriate IMCOM Region, the total retail value of all prizes awarded from 

the garrison MWR operating entity during any one fiscal year may not exceed $20,000. Individual prizes may not 

exceed a retail value of $15,000. 

d. Raffle tickets, advertisements, and other raffle-related information will not be mailed through the U.S. mail unless 

raffles are authorized or not otherwise prohibited in the State in which held. Advertisements or other raffle-related 

information will not be broadcast on any radio or television station, and all promotions, ticket sales, and drawings will 

take place on the sponsoring installation. 

e. Prize winners are advised of potential liability for Federal, State, or foreign taxes. 

f. Purchasers come under these criteria: 

(1) Only eligible patrons 18 years of age or older may participate. 

(a) When the general public is invited to participate in an installation event and a raffle is part of the event, the 

public may purchase raffle tickets if authorized by law. 

(b) Local nationals in overseas areas will not participate. 

(2) Raffle tickets will not be resold or given to other than eligible individuals. 

(3) Participation is voluntary. Coercive tactics to increase sales, such as making repeated solicitations or keeping 

lists of nonparticipants are prohibited. 

g. Issuance of raffle tickets, stubs, and related documents will comply with AR 340–21. 

h. Raffles will be structured to ensure that the sponsoring program at least breaks even. 

i. The maximum number of tickets offered for sale will be stated on raffle tickets. 

8–27. Sports and fitness 

a. Description. Installation and unit-level intramural programs are designed for broad-based participation in a full 

range of individual and team intramural programs consistent with patron interest, availability of suitable facilities, unit 

missions, and climate. There are opportunities to enhance individual morale and unit esprit de corps, promote 

teamwork and cooperation, engage in competitive recreation, and to encourage individuals to attain and sustain high 

levels of physical fitness and physical readiness. Emphasis will be on group participation in unit and intramural sports 

with wide appeal, such as softball, volleyball, flag football, basketball, running, skeet, and soccer. Programming will 

includes instruction, practice, and competition at all skill levels, starting with beginners. 


(1) Participation. 

(a) Garrison commanders may allow Soldier participation in organized sports and athletic training programs, for 

fitness purposes. 

(b) Other authorized patrons and Family members may participate in organized intramural sports leagues only when 

not enough military personnel are available to form teams for intramural league play. Such persons will not participate 

with military personnel in contact sports competition, such as boxing, martial arts, wrestling, handball, rugby, or 

football (with the exception of flag football leagues employing and enforcing strict noncontact rules, in accordance 

with the National Intramural Recreation and Sports Association). 

(c) Children eligible to participate in CYS sports programs will not be eligible to participate in intramural programs. 


(d) Mixed participation by men and women in installation intramural programs will be subject to garrison commander 

discretion. Separate programs for each gender may be conducted. (This does not prevent the conduct of 

programs that lend themselves to mixed competition.) When there are separate programs, in any sport, participants will 

be assigned according to gender, and teams may not compete against teams of the opposite gender. 

(e) Teams or individuals representing the Army will not participate in any sports event or exhibition where there is 

unlawful discrimination involving participants, administrators, or spectators because of race, color, religion, sex, 

national origin, disability, or age. 

(2) Activities of local affiliates of national governing bodies. Athletic/intramural program managers and installation 

directors of sports and fitness may participate in activities of local affiliates of national governing bodies. 

(3) Sports officiating. 

(a) Sports officiating opportunities are open to all qualified applicants. 

(b) Paragraph 13–12 outlines procedures for acquiring MWR goods and services with APFs. Decisions will be made 

in advance to use APFs for sport officiating services. 

(c) The use of off-duty personnel or Government employees as sports officials will comply with Government 

regulations regarding the employment of off-duty military or civilian personnel as Government contractors, as specified 

in DOD 5500.7–R and ARs 215–3 and 215–4. 

(d) The local SJA will review each contract regardless of dollar amount. 

(4) Safety. Installation athletic/intramural program managers will coordinate directly with installation safety directors 

to arrange appropriate education and training programs. They will integrate applicable safety practices, prescribed by 

an applicable national governing body, into its athletic program to prevent athletic injuries to participants and collateral 

injuries to spectators. Athletic facilities, equipment, and spectator seating areas will be inspected regularly for adequate 

space and structural soundness. Other safety requirements include these guidelines: 

(a) Professionals in boxing, judo, karate, and wrestling will not participate with amateurs but may act as coaches, 

trainers, officials, and managers. 

(b) All Army sponsored boxers will wear competitive boxing head guards at all levels of competition and a foulproof 

protective cup and fitted mouthpiece when competing in amateur boxing events. A qualified medical doctor is 

required at ringside for matches. 

(c) Eye protection devices approved by the national governing body are mandatory for individuals playing racquetball 

and handball. 

(d) Metal-cleat shoes will be worn only for track and field events. Molded rubber-cleat shoes, all-purpose athletic 

shoes, gym or tennis shoes will be used for all other sports, with the exception of specialized shoes for sports such as 

hockey, sky diving, skiing, and so forth. The appropriate shoe will be on an approved list governing the respective 

sport. 

(5) Instructional programs. Clinics and similar instructional programs for coaches and other unit and installation 

support personnel will be conducted annually. 

(6) Civilian team competition. Competition with civilian teams is permitted subject to the following: 

(a) If the Army team includes professional athletes, commanders conducting competitions will advise, in writing, 

representatives of the other service or civilian teams. Amateur athletes do not lose amateur status as a result of 

membership on any Army team composed partly of professionals, if the competition is for prizes other than cash or the 

equivalent. 

(b) A competition sponsored by the Army on a military installation against a civilian team that includes professional 

athletes will be conducted as an exhibition for entertainment purposes only. Competition against professional athletes 

or civilian teams which include professional athletes may not be sponsored by the Army at a nonmilitary facility. 

(c) A competition on a military installation that involves two or more civilian teams must be sanctioned by the 

national sports governing body or local affiliate having jurisdiction over the sport involved. 

(d) When a competition conducted by civilian organizations involves payment of fees, commanders may approve 

funding and participation if it is sanctioned by a national sports governing body or local affiliate or the sponsor is a 

Federal, State, or local Government agency, an amateur sports organization, or an educational institution. One of the 

above criteria must be met. If the competition is a fundraiser, participation must be in accordance with AR 600–29 and 

DOD 5500.7–R. 

(e) If the event is of local interest only and held within normal commuting distance of the installation as determined 

by the installation, the garrison commander may approve participation. IMCOM Regions may approve events conducted 

beyond normal commuting distance. If the event is of national or international prominence or overseas travel of 

participants from foreign countries is involved, approval will be obtained from FMWRC. 

(f) Before entering Army personnel in any civilian competition, the effect on community relations, consistency with 

the Army Sports Program, and the nature and details of any commercial sponsorship will be considered carefully. 

(7) Organizational teams. When personnel resources permit, commanders may form and train organizational teams 

to provide opportunities for Soldiers with advanced athletic skills to compete in athletic events. Events may include 


75

competitions against touring professional teams, such as the Harlem Globetrotters, and may be held for spectator 

entertainment purposes. 

(8) Locally sponsored sports events terms. The terms “interservice” and “Armed Forces” will not be used in the title 

of locally sponsored sports events. Such terms will be used only for competitions sponsored by the Armed Forces 

Sports Council, a DOD agency. 

(9) Playing rules. Generally, playing rules published by U.S. national sports governing bodies will be used for all 

competitions conducted within the Army. Table 8–5 is a listing of the U.S. national sports governing bodies. 

Otherwise, installations will use rules of any other recognized sports organizations, such as the National Federation of 

State High School Associations, the National Collegiate Athletic Association, the National Intramural-Recreational 

Sports Association, or the United States Slowpitch Softball Association. Overseas commands may use international 

rules, if appropriate. 

Table 8–5 

U.S. national sports governing bodies 

Sport 

Archery 

Badminton 

Baseball 

Basketball 

Biathlon 

Bobsled 

Bowling 

Boxing 

Canoe/kayak 

Cycling 

Diving 

Equestrian 

Fencing 

Field hockey 

Figure skating 

Golf 

Gymnastics 

Ice hockey 

Judo 

Luge 

Modern pentathlon 

Racquetball 

Roller Skating 

Rowing 

Rugby 

Shooting 

Skiing 

Soccer 

Softball 

Speed skating 

Swimming 

National Archery Association 

U.S. Badminton Association 

U.S. Baseball Federation 

USA Basketball 

U.S. Biathlon Association 

Governing Body 

U.S. Bobsled and Skeleton Federation 

U.S. Bowling Congress 

USA Boxing 

USA Canoe and Kayak 

U.S. Cycling Federation 

U.S. Diving, Inc. 

USA Equestrian 

U.S. Fencing Association 

U.S. Field Hockey Association of America (Men’s) U.S. Field 

Hockey Association (Women’s) 

U.S. Figure Skating Association 

U.S. Golf Association (USGA) 

U.S. Gymnastics Federation 

USA Hockey 

U.S. Judo, Inc. 

U.S. Luge Association 

U.S. Modern Pentathlon Association 

American Amateur Racquetball Association 

USA Confederation of Roller Skating 

U.S. Rowing Association 

USA Rugby Football Union (USARFU) 

National Rifle Association 

U.S. Ski Association 

U.S. Soccer Federation 

Amateur Softball Association 

U.S. International Speed Skating Association 

U.S. Swimming, Inc. 


Table 8–5 

U.S. national sports governing bodies—Continued 

Synchronized swimming 

Table tennis 

Taekwondo 

Team handball 

Tennis 

Track and field 

Volleyball 

Water polo 

Weightlifting 

Wrestling 

Yachting 

U.S. Synchronized Swimming, Inc. 

U.S. Table Tennis Association 

U.S. Taekwondo Union 

Team Handball Federation 

U.S. Tennis Federation 

USA Track and Field 

U.S. Volleyball Association 

U.S. Water Polo 

U.S. Weightlifting Federation 

USA Wrestling 

U.S. Sailing Association 

(10) Prohibition against use of drugs by participants. All persons involved in athletic training or competitions will 

be prohibited from using any drugs or medication to improve athletic performance. The consumption of alcohol by 

athletes participating in athletic events or competitions just prior or during the competition is prohibited. This policy 

will apply to all persons who are assigned, detailed, or who volunteer their services to the Army Sports and Fitness 

Program in any capacity whatever (for example, competitors, coaches, administrators). All persons involved in the 

Army Sports and Fitness Program will sign a statement that they understand and will comply with this policy. This 

policy does not apply to opposing civilian teams or individuals competing against Army sponsored teams. 

c. Program levels. Sports and Fitness Program levels are addressed in the paragraphs that follow. See chapters 5 and 

13 and appendix D for additional funding policies. 

d. Unit activities. Comprehensive unit level sports programs will be developed and conducted in accordance with 

local MWR program policy and this regulation. Community recreation fitness staffs will coordinate the use of facilities 

and equipment and set up an extensive intramural athletics program in both team and individual sports. Unit athletics 

are for active duty Soldiers only (to include Army Reserve and ARNG Soldiers when activated) and may be conducted 

during both duty and off-duty time. 

e. Intramural activities. Garrison commanders will develop intramural training programs to supplement unit level 

activities. Intramural athletic programs are usually conducted during off-duty hours between teams on the same 

installation; however, they may compete with teams of other installations when available resources permit. Civilians 

may participate when there are not sufficient military personnel but may not compete above the intramural level. 

f. Installation, regional, and IMCOM Region competitions/events. (The ARNG sports program is governed by 

ARNG policies and regulations.) IMCOM Regions may conduct installation, regional, or IMCOM Region-level 

competitions/events as follow-on to installation intramural athletic programs. This may include athletics that lead to 

departmental, national, or international competition. IMCOM Regions may grant subordinate commands authority to 

place military participants on permissive TDY for assembly and training for a maximum of 30 days prior to a 

championship competition. Individuals or teams representing installations may participate in IMCOM Region or 

regional-level competitions/events if they qualify as follows: 

(1) They have participated in an installation intramural program. Reassignment, permanent change of station, or 

reenlistment will not prevent a Soldier from competing. 

(2) The unit or garrison commander must approve of individual or team participation. 

(3) Local NAFs may be used for travel and per diem expenses at athletic competitions/events hosted by IMCOM 

Regions or installations. Use of local NAFs must be approved by the responsible commander. 

g. Departmental-level and Armed Forces competition. 

(1) Departmental and Armed Forces competitions, conducted periodically in selected sports, offer higher level 

competition for accomplished Soldier-athletes who meet the following criteria: 

(a) Prospective candidates must be on active duty and authorized by immediate commanders to participate. Participation 

in a leave status will not be authorized. Completion of scheduled military training will not be delayed. 

(b) All participants must be amateurs as defined by the appropriate national governing body. 

(c) Minimum qualifications for track and field will be determined by the National B Standards found at www.usatf.- 

org. Golf applications will include individual handicaps certified by a golf course manager or golf home course 

professional. Bowling applications will include scratch averages certified by the bowling center manager or league 

secretary. The minimum average considered is 200 for men and 170 for women in 21 or more league games. 

(d) Trial camp selection will be based on performance in current military and civilian competitions, records, and 


77

eports of the national governing body, recommendations of Sports and Fitness directors or coaches, and athlete 

statements. FMWRC will make selections for departmental and Armed Forces sports programs. 

(e) Army personnel may not represent another service; members of the other services may not represent the Army in 

departmental, Armed Forces, national, or international competitions except as members of a composite Armed Forces 

team. 

(2) The following are criteria for applying to competitions: 

(a) Departmental-level sports competitions, including dates and locations of trial camps and competitions, will be 

announced annually by FMWRC. 

(b) Participants will be selected by FMWRC to train and compete for positions on Army teams. Applications will be 

submitted as discussed below. 

(3) Soldiers of all IMCOM Regions may submit their application through their chain of command to their installation 

sports and fitness director, who will forward them to FMWRC. Applications will be submitted to FMWRC with an 

information copy provided to the respective supporting sports office. Application deadlines will be announced annually 

by FMWRC. 

(4) The application form is DA Form 4762 (Athlete’s Application). The responsible commander’s concurrence is 

indicated on DA Form 4762. 

(5) Costs of planning and conducting trial camps and Armywide competitions will be borne by FMWRC. Transportation, 

travel, and per diem (TDY) costs for Army trials and competitions will be funded as follows: 

(a) Responsible commanders will arrange for transportation to and from the airport of departure for the training site. 

Per diem or miscellaneous expenses are as prescribed in the administrative instructions published for each sport. 

(b) Per diem or miscellaneous expenses while at the training site and return travel to original airport of departure are 

paid by the host installation’s IMCOM Region single MWR fund from NAFs made available by FMWRC. 

(6) Armed Forces competitions conducted periodically by the Armed Forces Sports Council include individuals or 

teams selected by FMWRC to represent the Army. Participation is based on results of Armywide competitions to the 

extent feasible. When not practical, FMWRC will announce separate qualifications, selection criteria, and related 

procedures. 

h. National and international competition. Exceptional Soldier athletes may be nominated by the Armed Forces 

Working Group or selected by national sports governing bodies to participate in prestigious national and international 

competitions. Such competitions include the Conseil International du Sport Militaire competitions, Pan American and 

Olympic Games, world championships, and other international amateur sports events considered suitable by the 

Department of State. 

(1) Policy governing the participation of U.S. Armed Forces personnel in national and international sports competitions 

is derived from DODD 1330.4 and ensures that the United States is adequately represented in international 

competition. 

(2) The U.S. Army Human Resources Command, in coordination with FMWRC, may waive the requirement for 

completion of scheduled military training on a case-by-case basis. 

(3) Athletes notified directly by a national sports governing body or national coach of selection for training or 

competition must immediately inform FMWRC. 

(4) Priority is given to the service team in situations when an athlete is selected to compete in national competitions 

where an all-Army composite team or Armed Forces team is also competing, unless the athlete is on annual leave or 

released by FMWRC. 

(5) An athlete selected for international sports competition inside or outside the United States must obtain a country 

clearance through FMWRC Armed Forces Sports before participating. Overseas IMCOM Regions may grant country 

clearances for their personnel. Detailed information and requirements are in AR 55–46. 

i. Mailing address. Documentation required to be forwarded to FMWRC will be sent to Commander, Family and 

Morale, Welfare and Recreation Command, ATTN: IMWR–CRS, 4700 King Street, Alexandria, VA 22302–4418. 

j. WCAP. The WCAP provides an opportunity for Soldier athletes of world-class caliber to train for national and 

international sports competitions leading to selection to United States national teams. The WCAP is conducted over a 

3-year period prior to the start of scheduled Olympic Games. Participation is limited to athletes who have attained a 

high national ranking in a sport, or have been selected to a U.S. equivalent-level team and must meet established 

selection criteria. Applicants must sign an agreement to incur 1 additional year of their service obligation for each year 

serving in the WCAP program. This is in addition to any other service requirements. This additional service obligation 

will begin either upon release from WCAP or completion of any remaining service requirement, whichever occurs 

later. 

(1) Active component Soldiers. Application packets must contain DA Form 4187 (Personnel Action) and DA Form 

4762 (Athletes’ Application) and applications must be submitted through their chain of command to Commander, 

WCAP Detachment, ATTN: Sports Specialists, Bldg 1662, Fort Carson, Colorado 80913. 

(a) Enlisted personnel must submit a copy of their Enlisted Record Brief; NCOs must submit copies of their three 

most recent evaluation reports (ERs) (this may include academic ERs as well as NCO ERs). 


(b) Officers must submit a copy of their Officer Record Brief and copies of their three most recent ERs (this may 

include academic ERs as well as officer ERs) 

(c) Additional supporting documentation includes— 

1. Two letters of recommendation or endorsement from qualified individuals not related to the applicant (for 

example, coaches, supervisors, academic advisors, counselors, or teachers). 

2. Listings of events with dates, sites, and results; newspaper clippings; civilian resumes, that will permit proper 

evaluation of the individual’s athletic abilities and experience. 

3. Proof of eligibility (U.S. citizen) to represent the United States at the Olympic Games. 

(2) RC Soldiers (USAR and ARNG). 

(a) ARNG application packets will be submitted through the Soldier’s State Adjutant General for review and 

forwarding to FMWRC. 

(b) USAR application packets will be forwarded through the Soldier’s U.S. Army Reserve Command to the USAR 

commander for review and forwarding to FMWRC. 

(c) RC application packets will include applicable forms and all other supporting documentation required in 

paragraph 8–27j(1)(c)1 all forms and information listed in subparagraph a, above. In addition, these packets also must 

include a completed and approved DA Form 1058 (Reserve Component Personnel Actions Request) and a statement by 

the unit commander, approved by the State Adjutant General of the USARC commander, indicating they understand 

and acknowledge that the Soldiers will be placed on active duty through the Olympics and a position will be available 

for the Soldier to return to upon release from WCAP. Additional documentation may be required and can be found at 

www.armymwr.com/portal/recreation/sportsandfitness/application. 

(3) Military training. Enlisted Soldiers must complete basic training and advanced individual training before 

entering the program. Officers must complete the Officer Basic Course. Soldiers scheduled to attend, including those 

en route to advanced civil or military schooling, may enter after completing courses and any Service obligations 

incurred. 

(4) Release of Soldiers from WCAP. WCAP will release Soldier-athletes shortly after the conclusion of the Olympic 

Games for which they are training. WCAP will release Soldiers who do not qualify for the Olympic Games when it is 

known they will not be named to the Olympic team. Soldiers may request release from WCAP at any time. WCAP will 

release Soldiers who do not meet their athletic or military benchmarks. WCAP will release soldiers who sustain injuries 

or ailments which in the professional opinion of qualified medical authority preclude the athlete from being competitive 

at the elite level. Qualified health care professionals will evaluate every injured Soldier-athlete and prescribe an 

appropriate time frame within which to carry out a rehabilitation program. If a Soldier-athlete is unable to train or 

compete because of noncompliance with the prescribed treatment plan, or because medical treatment was refused, the 

Director of Sports Medicine will recommend release from WCAP. WCAP will release Soldiers who fail to uphold the 

standards and ideals of good sportsmanship or military discipline. 

(5) Soldier responsibility. All Soldiers assigned to WCAP will receive and sign a memorandum outlining requirements 

to maintain their military careers while assigned to the program. National rankings and international competition 

will not interfere with normal military progression. All WCAP personnel are Soldiers first. 

k. Presidential Sports Award Program. An incentive for maintaining high standards of individual fitness, this 

program recognizes those having made a commitment to fitness through regular participation in sports. Participation 

may include unit, intramural, IMCOM Region, and departmental sports programs. 

(1) Detailed information is available from the Amateur Athletic Union at Amateur Athletic Union, c/o Walt Disney 

World Resort, P.O. Box 10000, Lake Buena Vista, Florida 32830–1000. 

(2) As this program is self-supporting, a fee for emblems, pins, and certificates must accompany each application. 

Fees will be paid by the participating individual or the IMCOM Regional single MWR fund for active duty military 

personnel, if approved by responsible commanders. 

8–28. Swimming 

a. Description. Army swimming programs promote fitness and recreation. Swimming programs may include learn to 

s w i m , l i f e g u a r d t r a i n i n g , f i t n e s s p r o g r a m s , c o m p e t i t i v e s w i m m i n g , w a t e r s a f e t y , m i l i t a r y s u r v i v a l t r a i n i n g , a n d 

recreation. 

b. Funding. The level of funding will be determined by the functions performed. Aquatic facilities used primarily 

for military aquatics, physical fitness, combat training, and therapy, and aerobic activities (category A) will be 

supported with APF. Recreational aquatic facilities (not attached to or located in a fitness center) that provide modern 

amenities such as sprays and structures and used for lap swimming and other recreational activities (category B) will be 

authorized substantial APF support. Aquatic centers that include commercial grade water theme parks, both indoor and 

outdoor, will receive limited APF support (category C). 

c. Lifeguards, aquatic instructors, and pool staff requirements. 

(1) Certification requirements for swimming pools are current nationally recognized certifications in lifeguarding; 

basic first aid; and cardiopulmonary resuscitation. Current certifications are required for facilities with automated 

external defibrillator and oxygen administration. Lifeguards on coastal beaches must also be specifically trained in surf 


79

escue techniques. Lifeguards on beachfront areas must also be specifically trained in beachfront techniques. The 

following are additional training requirements for lifeguard and aquatic staff: 

(a) One lifeguard or staff member for aquatic facility operations must possess a current Aquatic Facility Operator 

Certification. 

(b) Pool operation and sanitation will be per TB MED 575. 

(c) Prevention of disease transmission orientation will be per 29 CFR 1910.1030. 

(d) Automated external defibrillators will be per TIB 01–12–17. 

(e) Hazardous material (HAZMAT) training, if handling pool chemicals will be per DODI 6050.5. 

(2) Surveillance duty will consist of the following: 

(a) A minimum of two certified lifeguards must be on duty in the facility during all operational hours to perform 

water rescue operations. To determine the total number of lifeguards required for water observation, one lifeguard is 

required every 2000 square feet of water surface or one lifeguard is required for every 120 feet of pool perimeter. 

(b) During structured swimming program, such as competitive swimming, water exercise classes, swim lessons, and 

physical education classes, one certified lifeguard must be on duty. A lifeguard is required to provide surveillance for 

all programs, to include programs that are supervised by an instructor, teacher, or coach with or without certification. 

(c) In addition to subparagraph (a), above, an additional lifeguard is required after the first 150 patrons and each 

additional 50 patrons thereafter. 

(d) All lifeguards on surveillance duty will adjust position by standing, kneeling, walking, or other activity every 5 

minutes to ensure maximum lifeguard vigilance. Lifeguards will have a 10-minute break from surveillance duty every 

hour. Station rotation will be executed between 15- and 30-minute intervals. 

(e) When alcoholic beverages are permitted, enough lifeguards will be added to reduce the swimmer-to-lifeguard 

ratio to 20-to-1 or less. 

(f) Lifeguards will have a proper uniform to include a uniform or distinguishing suit; whistle; first aid fanny pack 

with rescue pocket mask; and disposable gloves (latex or nonlatex). 

(3) Additional training will include the following: 

(a) Each lifeguard will complete a swimming distance of no fewer than 500 yards per duty day. This training is to 

ensure peak physical readiness for safety of all staff and patrons. 

(b) Each military swimming facility will conduct in-service training or onsite rescue training/drills a minimum of 1 

hour each 2-week period of employment. Installations may obtain sample rescue drill procedures from FMWRC. 

(4) Each swimming facility, guarded beach, and waterfront must have the lifeguard equipment listed below accessible 

to staff at all times: 

(a) Back board made of marine-grade wood, polyethylene plastic or other durable plastic, with arm, torso, and leg 

immobilization straps and a separate head and neck immobilization system. 

(b) Rescue tube (one per guard on surveillance duty). 

(c) Automated external defibrillator. 

(d) HAZMAT equipment. 

(e) First aid medical kit with mouth-to-mouth resuscitation mask and disposable gloves (latex or nonlatex). 

(f) Phone. 

(g) Whistle with lanyard. 

(h) Umbrella. 

(i) Hat. 

(5) Each swimming pool facility must have a U.S. Coast Guard approved ring buoy on deck. Ring buoys must have 

at least 40 feet of line and a foot loop or lemon (flotation buoy) to prevent overthrow and loss of the buoy. For guarded 

beach and waterfront areas, each lifeguard station must have a ring buoy. Swimming areas enclosed by a dock must 

have a rescue pole. If reaching and throwing rescues alone will not cover the swimming area, each lifeguard station 

must have a rescue can, board, or boat. 

(6) The following guidelines apply to flotation aids, toys, and aquatic equipment in swimming pools only: 

(a) Properly fitting U.S. Coast Guard approved personal flotation devices, types I, II, or III, are allowed during open 

recreation swim periods. 

(b) Pool or aquatic toys approved by the pool manager may be used during special events. 

(c) Appropriate training devices and aquatic equipment may be used during classes, team practices, or fitness 

training. 

(7) All youth must follow facility rules. Youth may use pools and aquatic centers under provisions below: 

(a) Children 12 years old and under as Family members must be under the supervision of a parent or guardian. 

(b) Children may be participants in a special program organized and conducted by CYS, schools, or other authorized 

youth organizations. 

(c) Children of kindergarten age and older will use gender appropriate showers, locker rooms, and bathrooms. 

(8) Smoking, food, and beverage limitations are explained below: 


(a) Smoking will be prohibited at all indoor and outdoor aquatic facilities to include pools, water parks, and water 

front areas. 

(b) Eating or drinking closer than 10 feet from pool edges is prohibited. 

(c) Glass containers in pool, waterfront, and beach areas are prohibited. 

(9) Water turbidity and clarity will be determined by a turbidity disk or the main drain. The object must be visible 

for the lifeguard to distinguish it at all distances up to ten feet. 

d. Lifeguards at lodging facility pools. Staffing requirements applicable to MWR lodging facility pools, such as 

AFRCs, inns, motels/hotels, cabins, cottages, and Army lodging program facilities where the swimming pool is an 

ancillary activity of the lodging facility are as follows: 

(1) A risk assessment will be conducted to determine risk factors and effective protective measures to control 

identified risk. The risk management process is explained in AR 385–10. The risk decision document will define 

normal operating conditions such as hotel occupancy percentages and demographics of the clientele. When hotel usage 

is outside normal operating conditions, the risk assessment will be revised and the commander will reconsider the risk 

decision. For example, if a high school band convention uses the facility or a large military reunion is scheduled, the 

expected pool usage exceeds normal operating conditions. 

(2) MWR lodging and Army Lodging Program facility pools will adopt the State or country standard for staffing of 

pools associated with lodging facilities located in the State or country. 

(3) Absent any State or country standard, lifeguards will be required. 

(4) An individual trained and certified in cardiovascular pulmonary resuscitation will be required to be on shift and 

available at the lodging facility whenever the pool is open. 

(5) An individual will be designated and trained in pool sanitation, prevention of disease transmission, and 

HAZMAT. 

(6) A written plan on first responder/emergency procedures in the event of patron water incidents will be required. 

(7) The local SJA will advise on the effect that the local State tort law has on the water safety measures. 

(8) The minimum standards below will also apply, with the exception of paragraph 8–28c(8)(b). 

(a) Conspicuous signs stating, “No Lifeguards—Swim at Your Own Risk” and signs listing water safety and pool 

safety requirements, including pool operational hours, will be posted. Signs must be visible from all angles of the pool 

area. Pool access will be prohibited during pool nonoperational hours. The pool will be observed once each hour by the 

lodging facility staff when the pool is operational. 

(b) Signs requiring adults to accompany children under a certain age as determined by the installation child 

supervision policy will be posted. 

(c) Readily available lifesaving equipment will be available, such as ring buoys and reach poles. 

(d) An easily accessible emergency phone will be accessible in the immediate pool area. To prevent abuse, the 

emergency phone should be a “no dial” to the local “911 only” or to the local emergency call center if the 911 number 

is not local. 

(e) A written plan and schedule will be provided to the Safety and Preventive Medicine Offices to ensure the water 

quality checks are performed, pools are kept clean, and filter/chemical equipment are operated and maintained properly. 

e. Lifeguards at outdoor recreation water-based programs. See paragraph 8–25 for safety requirements for outdoor 

recreation water-based programs, such as at beaches and lake areas. 

8–29. Unit-level programs 

Unit-level programs are authorized APF support as category A mission essential programs. They include unit activities 

that maintain mission readiness, improve unit teamwork, and create espirit de corps. Espirit de corps may include such 

activities as welcome home celebrations. IMCOM Regions or unit NAFs may be used for those services not authorized 

APF support (such as food and beverages) or for those services that are authorized APFs and APFs are not available. 

Certification of nonavailability of APFs is required from the APF resource manager prior to use of NAFs. 

Section III 

Operation of Programs at Closed Installations and Unauthorized Programs 

8–30. Closed installation policy 

The following applies to the continued operation of MWR programs after the installation has ceased to have a full-time 

active duty mission. 

a. IMCOM Regions will make the final determination to continue to deliver MWR programs on closed installations 

to serve the remaining active duty population on the former installation and in the immediate area even though the 

installation no longer has a full-time active duty mission. Primary consideration is given to the active duty population. 

However, use by all authorized patrons may be considered based on facility capacity and program requirements. 

b. MWR programs will complement the local community reuse plan and have written local community support from 

the local government(s) in the immediate area surrounding the closed installation. MWR programs may be delivered in 


81

a wide variety of alternatives. In-house MWR owned and operated, arrangements with outside enterprises through 

partnership programs with the surrounding communities, and contracts are all acceptable methods for delivery of MWR 

programs. 

c. The closed installation will be over 20 miles from another installation or a Government-owned or -contracted 

housing area authorized MWR support. If the active installation is fewer than 20 miles from the closed installation, the 

active installation’s MWR program must be able to accommodate the additional patronage from the closed installation. 

d. Construction or expansion of MWR facilities will not be required. Sustainment, restoration, and modernization 

and minor construction on existing facilities will be allowed when justified. Excess capacity will not be artificially 

created through unnecessary continuation of existing programs or construction or modification of facilities. 

e. As with continued operation of all MWR programs, patron demand will be determined by market analysis to 

measure sales, market trends, patron affordability, and the ability to maintain financially viable programs. The scope of 

the program will be commensurate with the remaining active duty force and other authorized patrons in the market 

area. 

f. The requirement for APFs will be commensurate with the size of the active duty population using MWR 

programs. IMCOM Regions will ensure annually that minimum patron requirements are met under this criterion. 

g. When the installation no longer has active duty or reserve personnel remaining on the installation, all MWR 

programs will be closed. 

8–31. Unauthorized activities 

The following programs and activities are not authorized within MWR programs: 

a. Lotteries or sale of lottery tickets. 

b. Pull-tab bingo. 

c. Sale of firearms or ammunition, except in rod and gun programs, outdoor recreation programs, shooting sports 

centers, skeet and trap programs, or other MWR category B programs as determined by the local commander. 

d. Sale or redemption of chit books related to the sale of alcoholic beverages. 

e. Award of coupons for reduced prices on alcoholic beverages or tobacco products. 

f. Sale of State excise tax-free tobacco products through vending machines (see tobacco vending machine policy in 

chapter 13). 

g. Grey area gambling devices. These devices are unlawful under the provisions of 15 USC 1171 and cannot be 

operated on Federal property in the United States and Puerto Rico. Determining factors as to whether a game is a 

gambling device or an amusement machine include— 

(1) If skill alone determines whether or not the player wins, the game is most likely legal. 

(2) If skill plays no part in whether or not the player wins, the game is most likely unlawful. 

(3) In cases where both skill and chance determine the game outcome, the predominance of chance versus skill is 

the determining factor (if the game is chiefly a game of chance, the game is unlawful and considered a grey area 

gambling device.) 

(4) The presence of coin chutes, credit meters, reel strips, and capability of payouts in the form of cash or prizes 

indicates an unlawful grey area gambling device. 

Chapter 9 

Mobilization, Contingency, and Wartime Operations 

9–1. Responsibilities for providing MWR 

a. This section contains responsibilities for MWR during exercises, mobilization, deployment, contingency operations, 

combat, maneuvers, redeployment, and demobilization. More detailed MWR responsibilities for company/ 

battalion, brigade, division, corps, theater, and installation/garrison are outlined in FM 12–6. 

b. MWR support is mission funded during war and other conditions covered in this chapter. MWR programs are 

necessary to maintain physical fitness and to alleviate combat stress by temporarily diverting Soldiers’ focus from 

combat situations. Commanders of deployable units, active Army, and RC will ensure that MWR support for 

mobilization, contingency, and wartime operations is planned in peacetime and included as a priority in the mobilization/deployment 

process. Emphasis on MWR programs may vary with the tactical situation and are adapted to suit 

conditions. At the same time, active duty and deployable USAR and ARNG Soldiers and civilians must believe with 

some degree of certainty that Family members left behind in CONUS or safe havens will receive necessary services. 

c. Unit commanders must assume a major responsibility for their own recreation, especially during early stages of 

deployment. Each unit is responsible for acquiring, assembling, and shipping its own 30-day supply of A&R and 

library book kits as well as operating athletic activities, recreation programs, unit lounges, and AAFES Imprest Fund 

Activities (AIFA). Commanders ensure successful and continuing recreation programs by providing MWR staffing and 

logistical support. 


d. Supporting guidance and MWR responsibilities are in other publications, as follows: 

(1) MWR doctrine, FM 1–0, appendix H. 

(2) Mobilization doctrine, FM 100–17. 

(3) Supporting and procedural guidance for exchange field operations is provided by AAFES. 

(4) Army Mobilization and Operations Planning and Execution System, Appendixes 8 (Family Assistance) and 9 

(MWR) and Annex E (Personnel). 

(5) Child Development Services, AR 608–10. 

9–2. Staffing 

a. Commanders may identify appropriate civilian positions on the MOB TDA to be prepared to deploy into the 

theater of operation to support recreational requirements. Identification of individuals is based on the number of 

personnel available, local requirements after units deploy, and the needs of the deployable unit. Personnel in these 

positions are battle rostered to the brigade or larger sized units. They may deploy with the unit to accomplish higher 

staff MWR responsibilities and will assist unit A&R officers/NCOs in planning and executing MWR programs, supply, 

equipment, procurement, transportation, maintenance, training, and USO liaison and act as DOD touring show 

coordinators. 

b. IMCOM Regions will pre-identify emergency essential MWR specialist positions and will comply with procedures 

set forth in DODD 1404.10 for filling emergency essential (E–E) positions. Once they have determined 

requirements for MWR support in crisis situations, commanders will request MWR support for the deployment through 

the Deputy Chief of Staff, G–3 (DCS, G–3). Tasking orders for emergency essential MWR specialists will be issued 

for the specific job series and grades of the required positions. 

c. For designated MWR civilians, necessary personnel actions will be coordinated with servicing CPAC–NAF. 

d. Division, corps, and Army headquarters will execute recreation programming, financial management, business 

operations, transportation coordination, and supply in support of the MWR deployment mission. The theater Army 

component headquarters, through the theater PERSCOM, will provide administration, logistical, financial, and accounting 

support and management control oversight for MWR programs in the theater. 

e. Until deployed, all associated logistical support and civilian personnel costs will remain the responsibility of the 

parent installation. Once deployed, MWR specialists are battle-rostered to the theater command staff and paid for with 

operations funds, to include special in-theater differentials (hazardous duty). If NAF MWR specialists are used, 

operations funds will repay the NAF account using DOD MWR USA/UFM funding practice rules. This allows 

temporary backfill of the affected position using respective IMCOM Region single MWR funds. 

f. Commanders of deployable/deployed company, battalion, and brigades will appoint an officer or NCO as the unit 

A&R officer/NCO. The unit A&R officer/NCO, assisted by the MWR specialist, serves as the focal point for the unit 

MWR program, responsible for unit MWR supply, equipment, transportation, and training. Upon deployment, the 

MWR specialist and unit coordinator will supervise unit activities and operators (AIFA, unit lounge, recreation area). 

g. MWR recreation personnel (APF or NAF) from installations not affected by deployment may volunteer. Other 

alternatives to MWR specialists include the World-Wide Individual Augmentation System and contract personnel. 

Contracting of additional personnel will be through IMCOM/FMWRC. 

9–3. Training 

MWR specialists will undergo training as coordinated with installation CPAC–NAF and FMWRC. Unit A&R officers/ 

NCOs will be trained by MWR specialists. Training includes recreation programming, operation of unit lounges, and 

establishment/maintenance of corps/division/brigade packages and unit A&R kits. Local AAFES managers furnish 

AIFA materials and training for coordinators and specialists. Other training materials are provided by FMWRC. 

9–4. Kits and other supplies 

a. MWR A&R kit equipment tailored to unit needs are requested for procurement and maintained locally. Items that 

can be deployed with the unit to support unit, self-directed recreation activities include, but are not limited to, music 

listening equipment, cards, board games, balls and bats, volleyballs, badminton, and horseshoes. Some small games and 

athletic equipment are available through normal Army supply channels. Common Table of Allowance (CTA) 50–909, 

table 53, lists recreation kits—athletic, recreation, and small games kits. Corps/division/brigade MWR service-level 

kits, in addition to A&R items, include larger items such as VCRs, TVs, computers, computer games, weights, karaoke, 

and keyboards. All MWR kits are authorized APF expenditures. 

b. Commanders will be responsible for periodic inspection, packaging, and transportation of kits, and assign priority 

in unit loading plans to ensure timely arrival in the theater. Nonexpendable items will be accounted for on unit property 

books as deployable equipment. 

c. Books and periodicals will be provided by the following entities: 

(1) Garrison MWR libraries will provide each deploying unit a 30-day supply of paperback and audio book kits for 

leisure reading, which units transport and distribute. 

(2) FMWRC will provide additional paperback and audio book kits directly to units deployed over 30 days and 


83

magazine/newspaper kits when operations continue beyond 3 months. The method of distribution will be determined by 

FMWRC with input from receiving units. Funding will be provided by the unit for magazines/newspapers. When 

feasible, unit funds will purchase local newspaper subscriptions for direct mail. 

d. Free motion pictures and videos will be provided by AAFES in combat and other remote overseas areas (AR 

60–20). Units will provide TVs, VCRs, and projectors from mission funds. 

9–5. Other programs in contingency and combat operations 

a. Deployed troops receive entertainment in coordination with USO and Armed Forces Entertainment (AFE). After 

deployment, civilian entertainment will be requested by unit commanders through the Senior Army component 

commander in the area of responsibility or the Joint Task Force Commander, who will forward requests to AFE and 

endorse security certification and logistical support for civilian entertainers in deployed areas. 

b. Existing military clubs in the theater will continue to operate if conditions warrant. New ones may be situated in 

secure areas (rest areas and R&R centers) after an MWR program is established. Services will include food, beverage 

(alcoholic beverages, if approved by the theater commander), entertainment, and other recreation, and check cashing 

and currency conversion as determined by the tactical situation. The theater will provide oversight of NAF, management 

controls, and club activities. Goods and services will be procured from the most advantageous source. 

c. Unit lounges may be established in active theaters or areas of operation during mobilization, contingency 

operations, and wartime. Operational and management controls, a theater responsibility, will be established similar to 

those for military clubs. The theater commander may authorize a recreation center to provide food and beverages and 

activities available normally in clubs. SOPs provided by the parent installation will be used in the absence of theater 

guidelines. 

d. To provide Western-style services in a secure area, the following types of rest centers will be authorized: 

(1) Rest areas in theater or corps areas, established by commanders of Army units, give Soldiers a short respite from 

combat or combat support duties. Rotation, including transportation, is normally less than 1 week. Soldiers will have as 

many services as the commander can logistically secure and support. Assets to establish and operate a rest area will 

come from unit resources. 

(2) Based on theater needs, DOD R&R centers may be established. Resorts and other suitable facilities located at a 

reasonable distance from combat areas outside the theater of operation may be identified as R&R destination sites by 

the theater commander. Subsequent to DOD approval of a theater request, program execution is a theater responsibility. 

(3) AFRCs. 

(a) If feasible, existing AFRCs within the theater of operation may be designated to function as rest areas. Existing 

support agreements between FMWRC and appropriate theater commanders will be amended for extraordinary mission 

requirements. TDA support for AFRCs is limited to command supervision; any additional people will be provided by 

the theater commander. 

(b) AFRCs outside the theater of operation may be designated for use as R&R centers. FMWRC equips AFRCs to 

support R&R requirements to include billeting, food and beverage, and Western-style recreational opportunities. 

e. ARMP may continue service within authorized theaters of operation, subject to availability of facilities and 

civilian employees. Upon evacuation of civilian employees, the local commander may assume operational responsibility 

for both machines and operations, once a modified ARMP SOP is provided by FMWRC. Upon suspension of the 

program or closure of facilities, NAFs are deposited or funds and equipment retrograded in accordance with ARMP 

SOP or applicable property disposal regulations. 

f. Commanders will work with the USO to establish USO Service Centers and the AFE for celebrity entertainment. 

The civilian recreator or unit A&R officer/NCO will serve as liaison with USO to support joint MWR services. 

9–6. Financial operations 

a. Garrisons. Any impact to any MWR program as a result of contingency operations (for example, expansion of 

MWR programs because of backfill of reserve units or increase in use of Family programs (youth and child care) or 

decrease in use of MWR programs as a result of deployment) will be mission funded with APFs to the fullest extent 

authorized. IMCOM Regions electing to use their NAF resources to support contingency-impacted MWR programs 

will not be reimbursed from the AMWRF. NAF expenditures are limited to those expenses where nonavailability of 

APFs are certified to, as required by chapter 5, and for resale operations. IMCOM Regions have the flexibility to crosslevel 

NAFs in order to assist severely impacted garrisons. The cross leveling of funds is a balance sheet entry and 

affects cash and fund equity (for accounting purposes, see DOD 7000.14–R, volume 13). 

b. In-theater MWR. All categories of MWR programs will be mission funded with APFs per FM 12–6, chapter 7. 

This does not include resale operations, such as the purchase of alcohol or other merchandise or services for resale. The 

expenditure of NAFs as outlined above will apply. A theater MWR operating entity may be established in accordance 

with chapter 3 and in coordination with the theater Army comptroller. Requests for initial NAF support may be 

requested from FMWRC, through the IMCOM Region, at Commander, Family and Morale, Welfare and Recreation 

Command, ATTN: IMWR–FM, 4700 King Street, Alexandria, VA 22302–4406. Requests will forwarded by the theater 


Army component with an estimate of the total number of deployed Soldiers being supported, justification for the 

request, and the amount of NAF required. A local bank account will be established prior to transfer of NAFs. 

9–7. Garrison services 

a. Garrisons of deployed units will continue to offer basic MWR programs as long as possible during all levels of 

contingency operations/mobilization. Program restructure through reallocating resources, detailing personnel, and 

redirecting ongoing programs toward a larger Family member population may be necessary. Commanders may close or 

curtail programs and reallocate MWR facilities and equipment for tactical use at any time after all other alternatives 

have been considered. If closed, facilities may be reopened and programs reinstated as the situation stabilizes. 

b. Garrison requests to suspend user fees may be approved by IMCOM Regions at any reasonable or appropriate 

point during contingency/mobilization operations. 

c. IMCOM Regions and garrisons, both CONUS and OCONUS, contingency/mobilization plans will be followed for 

restructuring MWR programs by establishment, modification, termination, and/or reestablishment of services. 

(1) Plans will include specific details on the disposition of funds, property, and records; release, addition, or 

diversion of personnel; maintaining essential and prudent management controls; and expansion or increased use of 

facilities. 

(2) OCONUS plans designate E–E civilians; release of noncombatants during noncombatant evacuation operation 

(NEO); a MOB TDA; facility closure procedures; temporary facilities, prepositioned MWR supplies and equipment, 

and transportation within theater. 

d. A MOU with the off-post community will be developed to use existing community services as needed. 

9–8. Redeployment/demobilization 

Upon redeployment or demobilization, NAF accounts will be closed correctly. Garrison MWR operating entities will 

be disestablished as necessary, and MWR equipment in theater accounted for. MWR equipment issued to units in 

theater will revert to the theater NAFI. 

a. Any unit funds provided from theater NAFI resources or respective IMCOM Region resources will revert to the 

providing NAFI/Region upon redeployment of the unit. 

b. MWR operations will consolidate or close as the number of Soldiers diminish. Funds, property, and records will 

be properly accounted for and turned in. Rest areas and R&R centers will request and receive equipment and supply 

disposition instructions from FMWRC or the theater NAFI in areas that have a continuing MWR program. 

c. Theater Army and corps staffs will establish and implement policies for MWR equipment turn-in and redeployment. 

These policies will ensure that supplies and equipment turned in are used in support of any residual forces. 

Funds, property, and records will be properly accounted for and turned in per above policies. 

d. Prior to closing the theater NAFI, a separate unit fund to support any residual forces will be established. Funds 

will be furnished from the theater or requests for funding are forwarded to FMWRC. The Army component commander 

will ensure that the residual force is fully supported with MWR equipment and supplies. Units will keep all items that 

they have procured or signed for unless the unit is located in an established OCONUS IMCOM Region. Ownership 

will remain with the OCONUS IMCOM Region. Accountability will be in accordance with standard Army supply 

procedures. 

e. As required, after-action MWR reports are forwarded to the Commander, Family and Morale, Welfare and 

Recreation Command, ATTN: IMWR–PO, 4700 King Street, Alexandria, VA 22302–4419. 

Chapter 10 

Alcoholic Beverages 

10–1. Age restrictions 

a. In the United States, no person under 21 years of age will be employed to dispense, handle, or serve alcoholic 

beverages unless permitted by the laws of the State in which the installation is located. In such cases, the State 

minimum age laws may be followed (10 USC 2683). 

b. Outside the United States, no person under 18 years of age will be employed to dispense, handle, or serve 

alcoholic beverages. A higher serving age will be based on international treaties and agreements and on the local 

situation as determined by the garrison commander. 

c. In the United States, the minimum age for all persons for purchasing, drinking, or possessing alcoholic beverages 

to include low content alcoholic beverages, will be consistent with the law of the State in which the installation is 

located. The garrison/mission commander may request an exception to the State minimum drinking age, if such 

commander determines that the exception is justified by special circumstances. Approval of exceptions must be 

requested through command channels to the ACSIM. The ACSIM will coordinate exceptions with the Deputy Chief of 


85

Staff, G–1 (DAPE–HR–PR), 300 Army Pentagon, Washington, DC 20310–0300. Exception may apply to Soldiers and 

DOD civilians and spouses, as appropriate. Special circumstances may include— 

(1) Substantial risk of increased incidence of intoxicated driving by Soldiers to or from a jurisdiction with the lower 

drinking age (State or international borders). To qualify for this exception, an installation must be within approximately 

50 miles of 1 hour’s driving time of the neighboring border with the lower drinking are. The sole factor is the motor 

vehicle safety of the community. 

(2) Foster camaraderie and friendship in a military environment that appeals to the military community, such as 

those infrequent, non-routine military occasions when an entire unit, as a group, marks a uniquely military occasion at 

a military installation such as the conclusion of arduous military duty or the anniversary of the establishment of a 

military service or organization. 

Note. For a one-time special event to be held on a military installation, the garrison/mission commander may authorize underage 

Soldiers (those not meeting the State age restrictions) to drink alcohol. The garrison/mission commander will ensure that appropriate 

controls are in place to prevent endangering Soldiers or the surrounding community. 

d. The minimum drinking age for all persons on an installation located outside the United States is 18 years of age. 

Decision on a higher minimum age is based on international treaties and agreements and the local situation as 

determined by the garrison commander. 

e. Military personnel may purchase, possess, and consume “nonalcoholic” beer and wine (containing less than one 

half of 1 percent alcohol) on post even though the State classifies these products as an alcoholic beverage. 

10–2. Locations where alcoholic beverages may not be consumed 

Alcoholic beverages will not be consumed in, on, or at any of the following, except as stated in paragraphs 10–2f and 

g. 

a. Skill development facility (such as arts and crafts, woodworking, photo, auto crafts shops). 

b. Child and youth services facility or functions. 

c. Library. 

d. Basic combat training (BCT) and advanced individual training barracks. 

e. Army aircraft, vessel, or other motorized vehicles, unless approved by FMWRC. 

f. Recreation centers. Only malt beverages and wine may be consumed in recreation centers upon written approval 

of the garrison commander for any of the following: 

(1) On special occasions. 

(2) When food service (snack bar) is available in centers that are used predominantly by Soldiers. 

(3) When food service is not available (though food service is recommended) in centers that are used exclusively by 

Soldiers and authorized civilians of legal age. 

g. Troop dining halls and civilian MWR programs supported by NAFs. If approved by the garrison commander and 

other restrictions are satisfied, these programs may provide malt beverages. Wine, however, is restricted to special 

occasions approved by the garrison commander. 

10–3. Alcohol consumption locations 

a. The following categories of alcoholic beverages may be consumed or purchased as follows, unless prohibited in 

paragraph 10–2: 

(1) Malt beverages, wine coolers, and other alcoholic beverages with an alcohol content of less than 7 percent— 

(a) By the drink at— 

1. FB&E activities, to include military clubs, AFRC hotels, and the Hotel Thayer. 

2. Other MWR food-related operations such as those located in golf and bowling facilities, cabaret/dinner theaters, 

and rod and gun activities. 

3. Civilian post restaurants and their activities. 

4. Overseas MWR programs approved by IMCOM Regions. 

5. Exchanges, including exchange cafeterias and snack bars, and exchange outlets in enlisted barracks and dining 

facilities (except BCT and advanced individual training barracks). 

(b) Packaged at— 

1. Military clubs and other authorized MWR programs. Sales for off-premise consumption are at prices no less than 

AAFES and restricted to time periods when AAFES-operated retail activities, which sell packaged beverages, are 

closed. Package sales of beer and wine products incidental to party contracts or takeout food/beverage operations are 

exempt from this requirement. Takeout beverage sales are limited to sales of six-packs unless exceptions are coordinated 

with AAFES and approved by FMWRC. 

2. Package beverage stores (Class Six). 

3. Other exchange outlets approved by the garrison commander. 

(2) Distilled spirits, wine, and other alcoholic beverages with an alcohol content of 7 percent or more— 


(a) By the drink at— 

1. FB&E activities to include military clubs. 

2. AFRCs. 

3. MWR programs such as golf, bowling, rod and gun activities, and cabaret/dinner theaters, if approved by the 

garrison commander. FMWRC must review documentation for rod and gun programs (see para 8–25). Documentation 

will be submitted through command channels. 

4. Other overseas MWR programs approved by the IMCOM Region. 

5. Civilian post restaurants when approved by FMWRC. 

(b) Packaged at— 

1. Package beverage stores (Class Six). 

2. Other AAFES outlets such as shoppettes, Four Seasons, and main exchanges, when approved by the garrison 

commander. 

3. AFRCs, as part of room service. Sales are limited to registered guests only. 

4. The Thayer Hotel may sell only miniatures over the bar to registered hotel guests for consumption in their rooms. 

b. Packaged alcoholic beverages may be sold in Army lodging rooms when— 

(1) Guests serve themselves. 

(2) Bottles or cans are sealed and stored in a cabinet or refrigerator. 

(3) Distilled spirits are sold in 2-ounce or less bottles. Malt beverages, wine, and premixed cocktails are sold only in 

12-ounce or less bottles or cans. 

c. Managers at Army lodging facilities will take necessary action to ensure no underage patrons will have access to 

alcohol stocked in rooms. 

(1) Before assigning rooms stocked with alcohol, clerks will verify patron’s age by visibly checking a valid photo 

identification card. 

(2) Every attempt will be made to assign underage patrons to a room where no alcohol is stocked. If no other 

options exist, keys to locked cabinets or honor bars will not be issued to these patrons. Underage patrons will not be 

denied a room based on nonavailability of alcohol-free rooms. 

(3) Patrons who meet minimum age restrictions for alcohol consumption but have underage Family members with 

them will be reminded that allowing their underage Family members to consume alcoholic beverages in Army lodging 

rooms violates Army policy. Anyone caught violating this policy will be reported to the Military Police and asked to 

vacate the lodging facility immediately. 

d. Concessionaires may sell alcoholic beverages in MWR programs authorized to sell alcoholic beverages (see also 

chapter 13, para 13–18a(5)). 

e. When an MWR program is operated by AAFES under an agreement approved by FMWRC, AAFES may sell any 

alcoholic beverage authorized to be sold in that activity provided the garrison commander approves. This includes such 

agreements as the Class VI Transfer of Function Agreement and local agreements for AAFES operation of MWR food 

and beverage service at places such as golf courses and bowling centers. 

f. The retail sale of alcoholic beverages by an activity or agency is prohibited unless authorized herein. 

10–4. Catering 

a. MWR programs authorized to sell alcohol may sell and serve alcoholic beverages at parties or events catered at 

locations on the installation where the consumption of alcoholic beverages is authorized. This authority includes 

providing alcoholic beverages at installation functions, in permanent concessions, by management contracts at golf 

courses, and as required for dinner theaters, cabarets, supper clubs, and similar activities. 

b. When approved by the garrison commander and in accordance with this chapter, other MWR programs, post 

restaurant funds, and AAFES may cater alcoholic beverages with less than 7 percent alcohol at authorized locations on 

the installation. 

c. In the United States, there is no transporting of any alcoholic beverages off the installation for use at off-post 

catered functions. Outside the United States, IMCOM Regions will determine off-post catering policy. 

10–5. Purchaser use 

a. Individuals authorized to possess alcoholic beverages on an Army installation may serve the beverages to their 

Families and bona fide guests. 

b. Packaged alcoholic beverages from package stores— 

(1) Are for the personal use of authorized patrons and their immediate Family. 

(2) May be purchased by an authorized patron for another authorized patron. 

(3) May not be transferred to unauthorized personnel. 

(4) May be presented as gifts to other eligible package store patrons. In overseas areas, IMCOM Regions may 

establish policies on gifts to comply with local social customs. 


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10–6. Procurement 

a. Alcoholic beverages containing distilled spirits for resale on an installation located in the contiguous United 

States, including the District of Columbia, will be purchased from the most competitive source, with price and other 

factors taken into consideration. 

b. Alcoholic beverages containing distilled spirits for sale on a military installation in Alaska or Hawaii will be 

purchased from, and delivery will be accepted from, a source within the respective State in which the installation is 

located. 

c. Malt beverages and wine for resale on an installation in the United States will be purchased from, and delivery 

will be accepted from, a source within the respective State in which the installation concerned is located (including the 

District of Columbia). 

d. Alcoholic beverages that are not purchased by a program may be sold in the program only if— 

(1) A vendor or sales representative furnishes it for a promotional event or tasting. 

(2) Members of foreign armed forces on duty with the U.S. Government, a foreign embassy, or any international 

organization recognized by the United States offer it under the following conditions: 

(a) The alcoholic beverage is a lawfully introduced duty-free import. 

(b) Title to the beverages is not passed to the activity or any other Army activity. 

(c) Duty-free beverages are served only at approved special functions, to personnel affiliated with the group, 

embassy, or organization, and their bona fide guests. 

e. A NAFI/entity may contract for special label or special brand alcoholic beverages only when approved by the 

IMCOM Region. 

f. IMCOM Regions may approve the sale of alcoholic beverages to overseas embassy associations of the U.S. 

Government, if requests for support contain an official authorization from the ambassador or designee. The IMCOM 

Region will notify AAFES of its approval. 

10–7. Transporting alcoholic beverages 

a. Individuals may transport alcoholic beverages off an Army installation only as allowed by State and local laws. 

An individual who violates the law may be indicted and prosecuted in a Federal, State, or local court. 

b. Alcoholic beverages are transported onto an Army installation or introduced into an Army activity only when— 

(1) Movement from the point of entry on the installation or to the program is not prohibited by Federal law or, for 

alcoholic beverages consigned to individuals, by State or local law or regulation or when transported in a properly 

registered NAFI/entity owned vehicle. 

(2) Movement is not contrary to the policies of this regulation. 

(3) The person transporting the beverages is— 

(a) An adult eligible to purchase alcoholic beverages. 

(b) An employee of a NAFI/entity-supported program authorized to sell or serve alcoholic beverages, if used in a 

NAFI/entity program function. 

(c) An employee of a commercial firm who is delivering the beverages to authorized programs. 

(d) A foreign military person on duty at the installation or program. 

(e) An official of a foreign embassy or international organization recognized by the United States when the 

beverages are to be used in an installation program or private quarters. 

c. All persons transporting alcoholic beverages from or to Army installations or programs are individually responsible 

for knowing and following State and local laws governing the movement of alcoholic beverages. 

10–8. Controls 

a. In addition to the provisions of AR 215–3 and AR 570–4, no military member or APF employee will be assigned 

to dispense or serve alcoholic beverages except as specifically authorized in other regulations. This does not prohibit 

enlisted personnel employed by a NAFI/entity in accordance with AR 215–3 from dispensing or serving alcoholic 

beverages during off-duty hours. 

b. Garrison commanders will conduct programs to discourage irresponsible use of alcoholic beverages and to further 

use the garrison alcohol and drug office technical guidance. 

c. All personnel who dispense and serve alcoholic beverages are employees of a NAFI/entity except as noted in 

paragraph 13–18a(5). 

d. All employees involved in selling alcohol will be trained within 30 days of hire/assignment and then at least 

annually on subjects such as the effects of alcohol, how to identify intoxication, and what to do when a person 

becomes intoxicated. To accomplish this training, managers use Alcohol Sellers Intervention Program (ASIP) or other 

approved programs, copies of which may be obtained from FMWRC at the address in paragraph 10–12. The alcohol 

and drug control officer, SJA, and provost marshal personnel will assist with training. Installation personnel offices will 

assist management in developing a method of ensuring that ASIP training is completed within the required time limits 

and documented in employees’ personnel folders. 


e. Giving alcoholic beverages as prizes is prohibited, with the exception that if approved by the garrison commander 

wine products may be given by military clubs to eligible club patrons to accompany dinner on their wedding 

anniversaries, birthdays, and similar occasions. 

f. Serving more than one alcoholic drink at a time for consumption by a customer or serving alcoholic beverages to 

intoxicated patrons is prohibited. 

g. Reduced prices or providing unlimited alcoholic beverages for MWR promotional programs, such as happy hour, 

will be prohibited. This is intended to prohibit only reduced pricing and not the events themselves. Programs will not 

feature open bar promotions where the price of the event includes unlimited alcoholic beverages or monthly drink 

specials where the price of an individual drink is reduced. Programs may conduct food promotions where the price of 

an alcoholic beverage is included in the meal/event, such as a beef and burgundy; however, customers will be given a 

choice of a nonalcoholic beverage substitute. 

(1) As an exception, garrison commanders may authorize limited reduced pricing when— 

(a) It is available in the local community. 

(b) Regular MWR prices are within 80 percent of the average of comparable local facilities’ regular pricing. 

(c) Reductions are at rates similar to those offered in the private sector, but not greater than 50 percent. 

(d) Reduced prices apply to all beverages, not just alcohol, and are limited to well brands and selected call brands 

and not premium or specialty products. 

(e) Offered not more than once per day and no longer than 2 hours per day or 10 hours per week, and not carried 

over to the next day. 

(f) Promotion material does not draw undue attention to reduced pricing. 

(2) This exception authority will not apply to contract functions nor supersede other sections of this regulation such 

as stacking drinks, using standard recipes, sensitive item inventory requirements, and so on. 

(3) Reduced price beverages will be restricted to designated bar and lounge activities and are not authorized in food 

and beverage operations such as snack bars, recreation centers, swimming pools, sports fields, special events, kiosks, 

carts, or mobile food service. 

(4) Bulk purchases at reduced pricing will not be authorized. 

h. When military personnel are cited or arrested for violation of a civil or military law relating to the use of alcohol, 

garrison commanders will comply with the provisions of AR 600–85. Army policy and blood alcohol standards, related 

to driving after or while consuming alcoholic beverages, are in AR 190–5. 

i. Garrison commanders will make available, particularly during holiday seasons, designated driver programs, Dial- 

A–Ride, or other suitable programs to help reduce or eliminate alcohol-related incidents and to promote responsible 

social behavior. Garrison commanders should encourage program promotion to the fullest extent possible through post 

newspapers, bulletins, membership newsletters, or other available means. 

j. Programs selling alcohol will have food available during alcohol sales hours. When prepared foods are not 

available, snack items will be available either for purchase or at no charge. 

10–9. By-the-drink sales 

a. When serving by the drink— 

(1) Standard recipes will be used for preparing all mixed drinks. 

(2) A schedule of days and hours for dispensing alcoholic beverages will be posted in each outlet. In setting 

scheduled hours, the garrison commander will consider the local situation, including duty requirements and all 

authorized patrons. 

(3) A sign, printed list, or beverage menu showing the prices of alcoholic beverages will be available at each bar 

and/or table of an outlet. 

(4) Unless otherwise authorized by this regulation, only malt beverages, wine, wine coolers, premixed cocktails, and 

miniature liquor (2 ounces or fewer) are sold by the bottle. 

(5) Management controls for MWR operations are in accordance with this regulation, AAFES regulations for 

AAFES operations, and other appropriate DA policy (for example, AR 11–2). 

(6) Promotions will adhere to the following criteria: 

(a) In-house promotions, such as coupons, bag stuffers, free samples, or any other similar means of offering free or 

reduced-price alcoholic beverages to promote or advertise the sale or consumption of specific brands of alcoholic 

beverages are not authorized. 

(b) Commercial promotions are authorized unless directed exclusively at the military community; that is, promotions, 

such as those typically available to the general public in the private sector are permitted unless otherwise 

prohibited by this or other regulations. 

(c) Bona fide beverage tastings, either in-house or commercial, are authorized. 

b. When menus or catering brochures offer food or dessert items that contain alcohol as a separate ingredient, 

serving or catering staff will advise patrons of alcoholic content and offer nonalcoholic substitutions if customers 

request. 


89

c. Privately owned alcoholic beverages will not be brought into any facility where alcoholic beverages are sold by 

the drink, with one exception: military clubs may permit members of foreign Armed Forces on duty with the U.S. 

Government or members of foreign embassies and international organizations recognized by the United States to bring 

lawfully imported, duty-free alcoholic beverages into clubs for special commemorative occasions. In these cases, a 

corkage or setup fee to offset expenses and ensure a reasonable profit may be charged, and beverages will be 

consumed/used only by members of the group or organization and their bona fide guests. 

10–10. Alcoholic beverage sold in bulk 

a. A schedule of days and hours of sales will be posted in outlets. 

b. In the United States and Puerto Rico, the following information is displayed conspicuously in each sales outlet: 

(1) Alcoholic beverages are for the personal use of authorized patrons. Reselling or giving beverages as a gift to 

anyone other than an eligible package store patron is prohibited. 

(2) The exact quantity of tax-free alcoholic beverages that can be transported legally into or through the State, 

district, or territory. 

c. Promotions will adhere to the following criteria: 

(1) In-house promotions, such as coupons, bag stuffers, free samples, or any other media used to promote or 

advertise the sale or consumption of specific brands of alcohol are prohibited. 

(2) Commercial promotions are authorized for package stores if the same type of promotion is available to the 

general public in the private sector. 

(3) Bona fide beverage tastings, either in-house or commercial, are authorized. 

d. Contingency sales or receipting for alcoholic beverages are prohibited. 

e. All patrons desiring to purchase from a package store will provide proof of their eligibility to purchase before a 

sale is made. Requiring identification for entry to a package store will be a local command decision. 

(1) Patrons in full regulation uniform will need no identification unless there is doubt as to duty status or age. 

(2) Sales personnel will check credentials of nonuniformed patrons to make certain that each individual is entitled to 

store privileges. 

10–11. Packaged alcoholic beverage sales 

a. As agreed to between the Army and AAFES in a Transfer of Function Agreement, AAFES is responsible for the 

administration, operation, and management of package stores. FMWRC grants any exceptions. 

b. Package stores may sell alcoholic beverages, soft drinks, snack items, beverage-related products such as glasses, 

utensils, mixes, ice, cigarettes, and AAFES merchandise. 

10–12. Establishing package stores 

a. Outside the United States, IMCOM Regions will establish policy on where package stores are to be located on an 

installation. 

b. In the United States, the sale of package alcoholic beverages, other than alcohol with an alcohol content of less 

than 7 percent, is permitted at installations approved by the SA. Before authorizing a package store, the SA will 

consider many factors but primarily the importance of package store profits to provide, maintain, and operate MWR 

programs, to lighten the financial burden on Soldiers, and support and complement community programs for Soldiers 

and their Families. The SA also considers other factors such as— 

(1) The estimated number of authorized patrons. 

(2) Availability of wholesome Family social clubs to military personnel in the local civilian community and 

limitations on nonmilitary sources. 

(3) Geographical inconveniences. 

(4) Disciplinary and control problems caused by restrictions imposed by local laws and regulations. 

(5) Highway safety. 

(6) Location and distance of nearest package store and reasons that the use of that facility is not feasible. 

(7) A digest of the attitudes of community officials, local businesses, and civic organizations toward establishment 

of a package sales outlet. This digest consists of a summary of any written comments received from individuals and 

agents such as local mayors, heads of prominent civic groups, or chambers of commerce, State legislators, members of 

Congress, or other Government officials. The names of the community authorities and civic organizations, including 

the circumstances of the contacts and the dates on which they occurred are forwarded unless letters from local contacts 

are submitted. Speculative assessments of prospective community attitudes will not satisfy this requirement. 

c. Garrison commanders wishing to establish sales outlets for package alcoholic beverages (other than alcohol with 

an alcohol content of less than 7 percent) may perform the required review or request the local AAFES exchange 

manager to perform the required review in paragraph 10–12b. The garrison commander will forward the request and 

documentation listed in paragraph 10–12b through command channels to FMWRC to the Commander, Family and 

Morale, Welfare and Recreation Command, ATTN: IMWR–BP, 4700 King Street, Alexandria, VA 22302–4404. After 


approval by the SA, DOD and Congress are notified and the garrison is informed of the first day on which sales may 

be made. 

d. Garrison commanders are authorized to establish additional outlets locally as long as they are on contiguous 

installation property. 

e. Approval above the garrison level is not required for outlets selling alcoholic beverages with an alcohol content of 

less than 7 percent, whether or not contiguous. 

10–13. American wine in overseas package beverage stores 

Package beverage store managers on garrisons located outside the United States will ensure that wines produced in the 

United States are given, in general, equitable distribution, selection, and price, when compared with wines produced by 

the host nation. 

a. Each package beverage store will designate and prominently identify a specific selection(s) of shelving for the 

display of U.S. wines. 

b. For the purpose of compliance, there are four categories of wine: table/dinner, sparkling, dessert/aperitif, and wine 

coolers. 

c. Package beverage stores carrying host nation wines in any of these categories will ensure that an equal number of 

American wines are carried in that same category. 

d. For special host country wines that are classified as “Chateau,” “Estate,” or “Vintage” and that are generally high 

priced and limited in sales volume, a representative number of (but not fewer than five) American wines will be 

carried. 

e. The percentage of markup on American wines will be equal to or less than the percentage of markup on host 

country wines. 

f. This policy does not apply if there is a conflict with a SOFA or host nation agreement. 

10–14. Rationing 

a. AAFES continually reviews the amount of alcoholic beverages bought in sales outlets and the number of 

authorized purchasers served. When per capita sales are deemed excessive, garrison commanders may then ration per 

capita purchases. 

b. When rationing policies are imposed, four copies of the local regulation governing rationing are forwarded to 

HQDA to the Deputy Chief of Staff, G–1, ATTN: DAPE–HR, 300 Army Pentagon, Washington, DC 20310–0300, for 

review and approval before rationing begins. 

10–15. Alcohol labeling 

a. To afford military personnel stationed overseas the consumer health protection available to those in the United 

States (P.L. 100–690, The Alcoholic Beverage Labeling Act), health warning labels are required on all package 

containers of alcoholic beverages for resale to our service members, including foreign package alcoholic beverages, 

served or consumed within programs located on Army installations. Products provided to U.S.-based programs are 

labeled by the manufacturer, distributor, or importer. 

b. Programs purchasing from non-U.S. sources in overseas areas have three options: 

(1) Ensure that contracts for non-U.S. products require compliance. 

(2) Do not carry products from noncomplying companies. 

(3) Self-apply labels to bottles. 

c. Specific health warning requirements are— 

(1) All containers of alcoholic beverages in liquid form that contain not less than one-half of 1 percent of alcohol by 

volume and are intended for human consumption supplied to Army programs will include the following health warning 

statement on the brand label or separate front label, separate and apart from all other information: GOVERNMENT 

WARNING: (1) According to The Surgeon General, women should not drink alcoholic beverages during pregnancy 

because of the risk of birth defects. (2) Consumption of alcoholic beverages impairs your ability to drive a car or 

operate machinery and may cause health problems. 

(2) Container is defined as the innermost sealed container, regardless of the material from which it is made, in 

which an alcoholic beverage is placed by the bottler and in which such beverage is offered for sale. 

(3) All labels will be designed in a manner to make the health warning statement readily legible under ordinary 

conditions, and the statement is on a contrasting background. The words “GOVERNMENT WARNING” are capitalized 

in bold type. The remainder of the warning statement will not appear in bold type. 

(4) The size of the statement will be— 

(a) For containers of 237 milliliters (8 ounces) or less, in script, type, or printing no smaller than 1 millimeter with a 

maximum of 40 characters per inch (2.54 centimeters). 

(b) For containers of more than 237 milliliters up to 3 liters (101 ounces), in script, type, or printing no smaller than 

2 millimeters with a maximum of 25 characters per inch (2.54 centimeters). 


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(c) For containers of more than 3 liters, in script, type, or printing no smaller than 3 millimeters with a maximum of 

12 characters per inch (2.54 centimeters). 

(5) Labels not an integral part of the container will be affixed to the containers in such a manner that they cannot be 

removed without thorough application of water or other solvents. 

10–16. Cooperation with State and local officials 

Garrison commanders will cooperate with local, State, and Federal officials whenever necessary. Cooperation, however, 

does not include permitting State control on a Federal installation or acknowledgment of any legal obligation to 

submit to State control, pay State or local taxes, or purchase alcoholic beverages within defined geographic boundaries, 

at specific prices, or from suppliers prescribed by any State, except as provided by this regulation. 

10–17. Requests for information 

Installations, through the public affairs office, may provide information related to alcoholic beverage sales, if the 

information is available and its release does not violate the provisions of AR 25–55 or AR 340–21. All relevant costs 

are borne by the requester. Requests for information on AAFES sales are forwarded to the local exchange manager for 

response. 

10–18. Taxes 

See chapter 4 for alcohol beverage taxes. 

Chapter 11 

Advertising and Commercial Sponsorship 

Section I 

Advertising 

11–1. Morale, welfare, and recreation and nonappropriated fund instrumentality advertising 

MWR programs communicate their presence and the availability of goods and services they offer to as many potential 

patrons as they can. Such communication will not reflect unfavorably on the DOD, the Army, other DOD components, 

or the Federal Government. 

a. Armed Forces publications. 

(1) MWR programs may contribute articles and stories for publication as unpaid information items in post newspapers, 

plan-of-the day, AFRTS, installation cable TV, and other media intended primarily for distribution to authorized 

patrons. Commercially sponsored MWR events may be mentioned with other pertinent facts in news stories and 

announcements. Event titles using the name of commercial sponsors may be included if newsworthy and if the use 

clearly meets Army needs. 

(2) MWR programs may pay to advertise MWR goods, services, entertainment, and social events in the civilian 

enterprise media, including installation cable television. Brand names and item prices, feature acts, films, talent, 

admission price, or cover charges, and names of commercial sponsors may be included in MWR advertising. Such 

advertising will prominently display the phrase “PAID ADVERTISEMENT.” 

b. Other than Armed Forces publications. MWR programs may pay to advertise their services and events in other 

than Armed Forces newspapers provided the chosen media is circulated to, written for, or geared to an audience 

consisting primarily of military or DOD personnel, or other authorized patrons. Such information may include 

sponsors’ names. 

c. Commercial (private sector) media. MWR programs may pay to advertise in appropriate commercial (local and 

national) (includes Internet) media when MWR special events are open to the private sector. Examples of MWR events 

include, but are not limited to, music concerts, athletic programs, Volksmarches, competitive runs, and American 

historical or traditional military events. Advertising of these events is subject to the following conditions: 

(1) Events will not directly compete with similar events offered in the local civilian community. Events open to the 

private sector and event advertising will be coordinated in advance with the local public affairs office. 

(2) Events open to the private sector must be infrequent, increase military civilian community interaction, and 

enhance community relations. 

(3) Event-related merchandise may be sold. Food and beverages may be sold for on-premises consumption only. 

(4) Community relations and public affairs open house events are command functions and not MWR events. 

Therefore, advertising for these PAO events will be conducted and resourced as prescribed in AR 360–1. 

d. Statement. Advertising of MWR programs, services, or events that may be heard, seen, or read by other than 

authorized patrons will contain a statement similar to: “This offer/event is open only to authorized patrons—PAID 


ADVERTISEMENT.” This phrase is not required for advertising MWR events that are open to the private sector as 

discussed above. 

11–2. Selling advertising space in nonappropriated fund instrumentality/entity media 

a. MWR programs and other NAFIs (see AR 60–20 for AAFES policy) may sell space for commercial advertising 

in any NAFI/entity media (printed, signs, electronic) produced for or prepared by them and may accept payment for 

such advertising. 

b. Publication of paid commercial advertising by NAFIs/entities is bound by similar standards of propriety applying 

to civilian enterprise publications, as prescribed in AR 360–1. Those standards applying to NAFI/entity commercial 

advertising include the following: 

(1) Advertising will be rejected if it undermines or appears to undermine an environment conducive to successful 

mission performance and preservation of loyalty, morale, and discipline. Some considerations in accepting advertising 

include the local situation, the content of the proposed advertisement, and the identity and reputation of the advertiser. 

(2) Advertising will not contain anything in it that might be illegal or contrary to DOD or Army regulations, such as 

discrimination, prohibition against soliciting membership in private groups, endorsement of political positions, favoring 

one group over another group, partisan political items, political advertisements, and games of chance, including casinos 

and Indian tribe gaming. 

(3) A supplement or insert with commercial advertising may be distributed with NAFI/entity media provided fair 

and equal opportunity is offered to organizations, businesses, or personnel to compete for this privilege. 

(4) No advertising will be accepted from any establishment placed “off limits” by the commander. 

(5) “Truth in lending” statutes will be met by consulting with the local SJA. 

( 6 ) A d v e r t i s i n g w i l l i n c l u d e a d i s c l a i m e r t h a t i t d o e s n o t c o n s t i t u t e D O D , A r m y , o r F e d e r a l G o v e r n m e n t 

endorsement. 

c. Acceptance of paid commercial advertising on APF electronic media, such as AFRTS and the local commander’s 

channel, is prohibited. 

d. All commercial advertising agreements must be in writing and must receive legal review prior to entering into the 

agreement and prior to signature of the parties. 

e. Advertising in NAFI/entity media is based on reaching authorized MWR patrons. 

f. Mailings to authorized patrons are permitted using NAFs of the respective NAFI/entity. NAFI/entity print media 

will not be distributed to unauthorized patrons. 

g. Good judgment will be used concerning acceptance of commercial advertising that may compete with MWR or 

other DOD programs. 

h. The local garrison commander will make final decisions on acceptance of advertising and must consider public 

perceptions, impact to the local economy, and the effect on the local civilian enterprise newspaper, installation guide, 

and installation map. 

i. Any prominent display of outdoor or electronic signage containing commercial advertising will comply with the 

installation Army Communities of Excellence standards and be coordinated with the installation engineers. 

j. Acceptance of paid advertising from Defense contractors is permissible as long as the content of the advertising 

message is a patriotic message and not promoting a specific product and/or service. 

11–3. Authorized personnel 

a. Commercial advertising sale and the placement of event advertising in civilian media will be performed centrally 

by individuals designated in writing by the Command authorities, normally the FMWR director. Commanders should 

designate only the installation advertising/sponsorship coordinator to perform sponsorship solicitation and sales. The 

Command will forward designee’s name, address, phone, and e-mail address to FMWRC to the Commander, Family 

a n d M o r a l e , W e l f a r e a n d R e c r e a t i o n C o m m a n d ( I M W R – P O M – C ) , C o r p o r a t e P a r t n e r s h i p s , 4 7 0 0 K i n g S t r e e t , 

Alexandria, VA 22302-4419. 

b. MWR employees designated to work with the commercial advertising program must receive appropriate profess 

i o n a l d e v e l o p m e n t t r a i n i n g ; a t a m i n i m u m , d e s i g n a t e d e m p l o y e e s s h o u l d a t t e n d a n n u a l t r a i n i n g c o n d u c t e d b y 

FMWRC. 

11–4. Reporting 

Garrisons will forward through command channels, a fiscal year annual report of all advertising initiatives to FMWRC 

at the above address not later than 30 November. FMWRC will issue reporting guidance annually. At a minimum, the 

report will include— 

a. Cumulative advertising revenue generated during the previous fiscal year. 

b. Related program expenses, for example, salaries and supplies. 

11–5. Web site advertising 

The policy applicable to advertising in general also applies to Web site advertising. NAF funded MWR Web sites may 


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contain paid advertising. Web sites must contain an appropriate disclaimer notice when exiting from Army MWR NAF 

funded Web sites and linking to a commercial advertiser’s Web site. 

Section II 

Commercial Sponsorship 

11–6. Definition 

Commercial sponsorship is the act of providing assistance, funding, goods, equipment (including fixed assets), or 

services to an MWR program(s) or event(s) by an individual, agency, association, company, or corporation, or other 

entity (sponsor) for a specific (limited) period of time in return for public recognition or opportunities for advertising 

and other promotions. 

11–7. Authorized programs 

a. Commercial sponsorship will be either unsolicited or solicited but authorized only for MWR programs and events 

and the NAF component of Army Community Service (AR 608–1), to include Army Family Team Building (AR 

608–48) and Army Family Action Plan (AR 608–47), which are closely associated with MWR programs. 

b. The commercial sponsorship program does not include acceptance of volunteer services. Additionally, this 

program does not include nor refer to those products or services considered gifts or donations. MWR gifts policy is 

contained in chapter 13. 

c. Military open house programs are primarily PAO activities and are not intended as MWR events. Therefore, 

commercial sponsorship is not authorized for military open house programs. Commercial sponsorship is authorized for 

MWR events held in conjunction with open houses only when specifically approved by the installation PAO. 

11–8. Sponsorship conditions 

Commercial sponsorship support of MWR is authorized under the following conditions: 

a. Obligations and entitlement of the commercial sponsor and the MWR program are incorporated into a written 

sponsorship agreement that will be for a 1-year period or less. The period covered by the original agreement and any 

annual renewals will not exceed a total of 5 years. This does not preclude the award of a new agreement to the same 

sponsor after the initial 5-year period. All agreements will receive a legal review by the servicing legal office. 

b. Advertising, publicity, or other promotional consideration provided to sponsors is commensurate with the level of 

sponsorship offered. 

c. Special concessions beyond the terms of the sponsorship agreement are not provided to commercial sponsors. 

Individuals or entities not providing commercial sponsorship are not treated with disfavor and do not suffer any form 

of reprisal. 

d. Appropriate disclaimers, such as “sponsorship does not imply Army endorsement,” are required in any public 

recognition or printed material developed for sponsorship by either the MWR program or commercial sponsor, because 

the Army does not endorse or favor any commercial supplier, product, or service. 

e. All sponsor-generated publicity and promotional material must be reviewed and approved by MWR prior to 

production and distribution. 

f. Commercial sponsor advertising on APF- and NAF-built MWR facilities, to include ball field fences and sports 

scoreboards, is authorized. 

g. Agreements concerning broadcast rights to televise, air, or Web cast MWR events and associated pre-event 

publicity on commercial (private sector) television or radio are entered into only after coordination with Office of the 

Assistant Secretary of Defense (Public Affairs) for DOD interservice events or Office of the Assistant Secretary of the 

Army (Public Affairs) for Army events. Requests for coordination are submitted to FMWRC at the address in 

paragraph 11–3. 

h. MWR management will coordinate with AAFES management prior to entering into an agreement if commercial 

sponsorship proposals and agreements promise AAFES displays or signage and to ensure there is no impact to AAFES 

existing policies and practices. 

i. Performance of sponsor(s) will be monitored during the course of agreement. 

j. Sponsors are generally limited to firms and organizations involved with consumer products and/or services. 

However, firms involved with games of chance or gambling to include casinos and Indian tribe gaming will not be 

permitted as sponsors. In overseas areas, solicitation of non-U.S. firms is authorized with the commander’s approval 

provided solicitation is not in violation of SOFA or other agreements. 

k. Category exclusivity may be granted to a sponsor. Additionally, multiple sponsors may be obtained for any MWR 

program or event. 

l. Military departments ensure commercial sponsors do not obtain personal contact from attendees at MWR programs 

or events without the express written consent of the attendee. Data collection is permissible only if data 

collection and/or entry forms include an opt-in clause. Such forms have to be reviewed by the Staff Judge Advocate. 

Only forms where the opt-in box is checked should be forwarded to sponsors. 


m. Only MWR programs and those programs authorized in paragraph 11–7 may benefit from commercial sponsorship. 

Other command groups, units, private organizations, or unofficial activities or organizations are not authorized to 

use commercial sponsorship to offset program or activity expenses while operating on Government property. 

n. Naming buildings/facilities and/or rooms with the sponsor name is not authorized. Instead, title sponsorship of 

MWR events may be offered to sponsors whose contributions are significant. 

11–9. Written agreements 

a. All commercial sponsorship agreements must be in writing and must receive legal review prior to entering into 

the agreement and prior to signature of the parties. 

b. Provisions for termination of agreements, force majeure (such as acts of God), and assignment will be included in 

the written agreement. 

c. The commercial sponsor will certify in writing that sponsorship costs will not be chargeable in any way to any 

part of the Federal Government. This certification may be a term of the sponsorship agreement or a separate document. 

11–10. Solicited sponsorship 

a. Solicited sponsorship will be competitively solicited from potential sponsors willing to support a MWR event/ 

program for the mutual benefit of the sponsor and the MWR program. 

b. The sponsorship professional must employ fair business practices when communicating with current and potential 

sponsors. Additionally— 

(1) Sponsors will be solicited competitively from an adequate number of sources. In overseas areas, solicitation of 

non-U.S. firms is authorized with the commander’s approval provided solicitation is not in violation of SOFA or other 

agreements. 

(2) Solicitations must be announced. 

(3) Multiple sponsorships for like or different products and/or services may be solicited. 

(4) Evaluation of offers will be based on market value of services, goods, or cash offered and the event requirements. 

Appropriateness of potential sponsoring corporation must be considered. 

11–11. Unsolicited sponsorship 

a. Unsolicited sponsorship will be entirely initiated by the prospective sponsor. Receipt of an unsolicited proposal 

does not require the MWR sponsorship professional to contact other sources. After an inquiry from a prospective 

sponsor, the command’s designated sponsorship representative may inform the prospective sponsors of MWR needs. 

b. The Army will not solicit commercial sponsorship from companies in the tobacco, beer, or alcoholic industries; 

however, unsolicited sponsorship may be accepted. Sponsorship agreements with firms in the tobacco, beer, or alcohol 

industries will include a clause requiring a responsible use campaign (beer, alcohol) and The Surgeon General’s 

warning (tobacco) incorporated into any print media. 

11–12. Reporting 

a. Garrisons will maintain a record of all MWR sponsored events/programs during each fiscal year, to include— 

(1) The sponsor’s name and organization. 

(2) Type of event/program sponsored. 

(3) Type and amount of the sponsor’s assistance, funding, goods, or services provided, and 

(4) The disposition and use of that assistance, funding, goods, or services. 

b. Garrisons will forward through command channels a fiscal year annual report of commercial sponsorship to 

FMWRC at the address in paragraph 11–3 not later than 30 November. The report will include— 

(1) Value of commercial sponsorship, both cash and merchandise/in-kind services, with the cumulative cash total 

during the previous FY. Cash and services are broken out by solicited and unsolicited. Unsolicited will be further 

broken out by alcohol, tobacco, and other. Total cash sponsorship revenue reported will equal sponsorship revenue on 

garrison financial statements. FMWRC will issue reporting guidance annually. 

(2) The annual report will include expenses directly related to the sponsorship program, that is, salaries, supplies, 

advertising, and so on. 

11–13. Authorized personnel 

a. Officials responsible for procurement or contracting will not be directly or indirectly involved with the solicitation 

of commercial sponsors. Such officials may advise, however, on whether vendors are barred from doing business 

with the Government. Although NAF contracting officers have no authority to approve commercial sponsorship 

agreements, they may obligate NAFs in accordance with NAF contracting policies (AR 215–4) in support of the 

commercial sponsorship program. This provision does not limit the involvement of NAF contract personnel whose 

function is to administer NAF contracts. The above is applicable to those APF contracting officers who perform NAF 

contracting functions for MWR programs. 

b. Command authorities (normally the Director, FMWR) will designate by name and in writing individual(s) who 


95

perform commercial sponsorship duties. Active duty personnel may not be designated. Commanders should designate 

only advertising/sponsorship coordinator to perform sponsorship solicitation and sales. The Command will forward 

designee(s) name, address, phone, and e-mail address to FMWRC at the address in paragraph 11–3. 

c. Designated MWR sponsorship representatives will receive appropriate professional development training to 

include an annual ethics briefing. Additionally, these employees will attend training conducted by FMWRC. 

11–14. Additional guidance 

Commercial sponsorship procedures and key management controls are further detailed in the Army Sponsorship Desk 

Reference Book and other written program guidance and instruction, which may be obtained from FMWRC or 

accessed through the MWR Web site, www.armymwr.org. 

11–15. Web site sponsorship 

Commercial sponsors may be provided sponsorship benefits on MWR web sites specified in paragraph 11–5. 

Section III 

Expense Accounts 

11–16. Eligible personnel and facility use 

a. MWR marketing, sponsorship, and advertising managers may have monthly expense accounts to purchase meals 

and nonalcoholic beverages when hosting potential commercial sponsors or advertisers. MWR facilities will be used for 

hosting. If they are not readily available, commercial facilities may be used. The expense account will not be used for 

the managers’ meal/beverage. 

b. The expense account is authorized for official business with the potential of benefiting MWR programs. 

11–17. Administration of accounts 

a. Annual expenditures will not exceed amounts designated in approved budgets. The Director, FMWR will 

authorize and approve expense accounts and will establish monthly dollar limitations which are not transferable to the 

next month. Expenses will be recorded in the month they are incurred and charged to the program to which the 

individual is assigned. 

(1) Expense accounts will not be used to purchase alcoholic beverages. 

(2) Reimbursable expenses wll be limited to expenses for which actual receipts are received; the date, type of 

expense, and location will be documented; and the signature of the individual claiming the expense will verify 

accuracy. 

(3) The individual’s immediate supervisor will be the approval authority for reimbursement, which is payable either 

by a check to the individual incurring the expense or by using a NAF credit card when expenses are incurred. 

b. Further guidance on establishing and utilizing expense accounts may be obtained from FMWRC. 

Chapter 12 

Resale, User Fees, and Credit 

Section I 

Resale 

12–1. Authority and applicability 

a. Resale includes the acquisition and resale of goods and services conducted by MWR programs or concessionaires. 

NAFIs/entities may engage in resale activities if conducted in accordance with this regulation and within the boundaries 

of military installations. Determination to engage in resale/credit activities at leased commercial buildings or in 

other areas outside of military installations (for example, AFRCs) will be in response to— 

(1) The relative need for the goods and services to be provided by the MWR program, 

(2) The sensitivity of exemption from State and local taxes, and competition with the private sector. 

(3) Justification for DA-sponsored MWR programs at such sites/facilities. 

b. Not considered resale are user fees, interest, and other sources of income not directly related to the sale or resale 

of merchandise and services, such as dues and assessments. Also not considered resale are special events, such as 

Monte Carlo nights and carnivals, and provision of services to other NAFIs/entities on a pro rata cost basis by common 

service activities. 

12–2. Resale authority 

a. Division of responsibility. 


(1) AAFES is the primary retailer of merchandise and services to authorized patrons of the military community. 

AAFES package beverage stores will be the primary resale source of packaged alcoholic beverages, except malt 

beverages and wine coolers. 

(2) MWR programs are the primary provider of prepared foods, beverages, and entertainment in membership clubs, 

nonmembership food, beverage, and entertainment programs, and snack bars incidental to MWR operations. 

(3) Sales of goods and services by civilian MWR NAFIs to DOD civilian employees is in accordance with AR 

215–7. 

b. Resale by AAFES. Applicable policies are in AR 60–20. Key provisions include the following: 

(1) DODI 1330.21 outlines goods and services authorized for sale by AAFES. 

(2) Garrison commanders may request AAFES to operate and manage any garrison sales activity. 

(3) Garrison commanders may enter into MOAs or MOUs with AAFES to manage designated sales operations for a 

management fee. Agreements will include provisions for audit trails that account for receipts and disbursements and 

submission of monthly income and expense statements. Such agreements may include those entered into by FMWRC 

on behalf of the Army. Operations that may be managed by the AAFES, with local command agreements, will include, 

but are not limited to— 

(a) Amusement machines. 

(b) Services and vending machines in military clubs, civilian employee NAF programs, bowling centers, and similar 

MWR programs. 

(c) Commodity concession contracts and short-term sales agreements for overseas military clubs, AFRCs, and other 

lodging facilities. 

(d) Name brand fast-food operations only, and only after obtaining FMWRC approval. 

(e) Any other resale function connected with MWR programs, which appropriately may be performed under an 

MOA/MOU with AAFES. 

c. Resale by NAFIs/entities other than AAFES. 

(1) NAFI/entity sales of merchandise and services will normally be part of and directly related to the purpose of the 

program conducting sales and necessary to the conduct of the program supported by the NAFI/entity. Examples include 

resale of golf apparel and equipment at a MWR golf course and souvenirs related to displays at a museum. Resale of 

snack food, nonalcoholic beverages, and alcoholic beverages in accordance with chapter 10 are authorized. 

(2) Overseas resale activities will be conducted in accordance with applicable international agreements. 

(3) AAFES resale merchandise and services, prescribed in AR 60–20, may be sold and provided by MWR programs 

only under the conditions cited in paragraphs 12–2c(4) and (5). Any restrictions contained AR 60–20 related to resale 

merchandise and services and applicable to AAFES are also applicable to resale operations by MWR programs. An 

example is ministorage facilities, which must have the approval of Congress. 

(4) Before MWR operation of a resale activity for which AAFES is the primary provider, the garrison commander 

and the regional director of the servicing exchange must jointly determine in writing that the requirement cannot be 

met in a responsive manner by the AAFES. Determinations will be based on all the following: 

(a) Compatibility of operating hours with the exchange and the proposed resale activity. There is no direct or 

intended competition for business. 

(b) Distance to the activity from the exchange and ability of the exchange to provide delivery service. 

(c) Ability of the exchange to provide the types of goods and services needed by the program. This includes quality, 

price, and range of goods and services. 

(5) Garrison commanders will monitor NAFI/entity resale to ensure that items and services sold are necessary, 

authorized, and related to the established purpose of the program and its supporting NAFI/entity. 

(6) Disputes are handled as follows: 

(a) Differences that cannot be resolved between the garrison commander and the regional director of the servicing 

exchange will be referred to the appropriate IMCOM Region for final determination. 

(b) If a servicing exchange declines to provide services requested, the garrison commander may appeal the decision 

through the IMCOM Region to the AAFES regional director and, if necessary, to the AAFES commander. 

(7) Sale of foreign-made merchandise and foreign-produced services is subject to policy in this chapter. 

(8) Garrison operated amusement and change machines in MWR facilities may be maintained directly by separate 

MWR programs or by NAF contract, as determined by the garrison commander. 

(9) Services and vending machines may be maintained under concessionaire contracts or directly by military clubs, 

bowling centers, civilian welfare fund programs, and off-post Army Reserve Training Centers and in accordance with 

State licensing agencies for the blind (AR 210–25). Otherwise, services and vending machines will be operated by the 

AAFES. 

(10) Installations may contract for MWR food services only with IMCOM Region and FMWRC approval. The 

provisions and applicability of AR 210–25 will be reviewed before entering into, or renewing contracts for, or direct 

operation of any vending machine and snack, cafeteria, or other food operation. 

(11) Food service sales conducted by a NAFI/entity may be for immediate consumption on premises, take-out, or 


97

catered either in or outside the MWR facility. NAFIs/entities may provide food service at any MWR event (ball games, 

fests, or other garrison activities) without having to seek AAFES approval. Prior to proceeding with freestanding namebrand 

casual dining operations, FMWRC and AAFES will conduct a joint assessment to evaluate the proposed 

operation’s impact on the core dividend. 

(12) MWR consignment sales or auctions are authorized on the installation. If MWR consignment sales or auctions 

are opened to the public, policies in chapter 7 (table 7–1) apply to avoid MWR competition with any consignment 

shops in the local community. When MWR consignment sales or auctions are conducted, controls will be established to 

safeguard against NAF liability for the merchandise consigned. 

(13) The minimum age for the purchase of tobacco products in overseas retail outlets is 18 years. 

(14) Any resale operation that incurs labor and other operating costs must be supported with NAFs unless specifically 

authorized APFs or the law requires sales at cost. This applies in CONUS, OCONUS, and at remote and BRAC 

locations. NAF revenue will not be generated when APFs pay the cost of labor and operating expenses. This does not 

preclude the use of an APF employee from both renting and checking out outdoor equipment in a category B outdoor 

recreation facility when the rental of equipment is very limited; or the registration clerk from selling limited snacks, 

soft drinks, or juice at a category A MWR fitness center. The same situation may occur at a marina or equestrian riding 

facility, where there are both category B and C programs operating within a single facility and the category C part of 

the program is not significant. Paragraph 12–8 and appendix D will apply. 

Section II 

International Balance of Payments Program (DODI 7060.03) 

12–3. Sale of U.S.-made merchandise overseas 

NAF resale activities and concessions overseas will, within the limits of sound business practice, stock merchandise of 

U.S. origin in preference to equivalent merchandise from foreign sources. The following steps will be taken to 

maximize the sale of U.S. made merchandise by NAF resale activities: 

a. Prominently display U.S. made merchandise. 

b. Label and segregate foreign made merchandise. 

c. Avoid foreign made, inferior imitations and substitutes for U.S. made merchandise. 

d. Respond promptly to consumer preference for merchandise of U.S. origin through established NAF contracting 

channels. 

e. Cooperate with potential U.S. suppliers in meeting foreign competition when customer demand indicates a shift to 

foreign products. 

12–4. Foreign goods for resale overseas 

a. Overseas NAFIs/entities may stock and sell the following foreign goods, subject to the restrictions that apply to 

exchanges (AR 60–20), and are not subject to the conditions contained in paragraph 12–4b: 

(1) Perishable subsistence items, beverages, and similar items purchased for consumption on the premises of 

programs engaged in serving food and beverages. However, purchases are reviewed continuously with priority 

consideration towards changing to U.S. sources if feasible and financially advantageous. 

(2) Soft drinks. 

(3) Items of supply and materials for use in hobby and crafts shops. 

(4) Printed matter such as maps, postcards, magazines, newspapers, travel books, and greeting cards. 

(5) Purchases made or required pursuant to treaty or executive agreement. 

(6) Heating and cooking fuels not available from APF stocks. 

(7) Emergency purchases. 

(8) Automotive supplies for U.S.-made cars where supplies of American manufacture are not available from either 

bonded warehouses or foreign distributors and where existing facilities preclude those supplies otherwise being made 

available for the upkeep of POVs. 

b. Overseas NAFI/entity resale programs may procure foreign-made goods available in the local market for resale to 

authorized personnel, under the following conditions: 

(1) The price of foreign goods sold in NAF activities will be based upon a markup percentage that is no less than 

that applied to similar categories of U.S. merchandise. Other provisions notwithstanding, the resale price of an item 

need not exceed the local price. 

(2) Only foreign goods available on the local market will be sold by NAFIs/entities, except under the following 

conditions: 

(a) Foreign goods purchased with excess foreign currencies may be stocked and sold. 

(b) In remote geographic areas where DOD personnel are isolated and where a local market does not exist, the 

combatant commander may authorize foreign goods to be stocked to the extent dictated by morale and welfare 

considerations. 


(3) Transshipment of foreign goods between NAFIs/entities in different market areas is authorized where the resale 

price of the transshipped items, including markup and transshipment transportation costs, results in significant savings 

to authorized patrons compared to the purchase of such items from local importers at the resale area. APFs are not 

authorized for the transshipment of merchandise, except when commercial transportation is not available or in 

contingency operations. 

12–5. Foreign goods not for resale 

a. Overseas NAFIs/entities are authorized to buy, but not to sell, foreign goods if procurement is— 

(1) Made pursuant to treaty or executive agreements. 

(2) Estimated not to exceed $100,000 in foreign currency. 

(3) Obtainable from foreign sources only and for which it is not feasible to forego filling the requirements or to 

provide a U.S.-made substitute for them. 

b. Procurement of other “not for sale” goods, except as provided above, will be U.S. materials and end products 

from domestic suppliers provided the cost of U.S. goods (including transportation and handling costs) is estimated to 

be no more than 6 percent above the cost of foreign goods if the domestic offer is from a large business or no more 

than 12 percent, if the domestic offer is from a small business concern. 

12–6. Construction, sustainment, restoration, and modernization of real property outside the United 

States 

NAF-funded construction, sustainment, restoration, and modernization projects will be accomplished to the maximum 

extent possible under procedures that use U.S. contractors, U.S. materials, and end products from domestic suppliers; 

U.S. Government furnished material and equipment; U.S. flag carriers; prefabricated installations and structures 

manufactured in the U.S; and competent available troop labor. Project approval levels are prescribed in chapter 15 and 

cited regulations. 

12–7. Exceptions for specific foreign locations 

As exceptions to paragraphs 12–3, 12–4, and 12–5, the following will apply to NAFIs/entities in— 

a. Canada, Korea, and Mexico. NAF activities located in these countries are authorized to purchase and sell goods 

produced or manufactured in the respective countries. 

b. Greenland. NAF activities located in Greenland are authorized to purchase and sell goods produced or manufactured 

in the Kingdom of Denmark. 

Section III 

User Fees 

12–8. Prices, user fees, and other charges 

a. Prices, user fees, and charges are structured to meet cash management goals for sustainment of an MWR program 

and its operations, to cover capital requirements and overhead expenses, and to satisfy budget requirements for support 

of other MWR programs dependent upon it. 

b. Alternative pricing strategies to attain necessary income levels, based on MWR 5-year plans and financial trends, 

will be developed, used, and adjusted as needed. 

c. User fees or charges will not be levied for general use of category A MWR programs and associated services 

such as towel and locker rental. This does not prohibit charging patrons for activities, classes, and services, which are 

more specialized, and beyond the scope of general use and associated services (such as martial arts, aerobics, therapy 

classes). If NAFs are used for services, which are not authorized or readily available from APFs, then these NAF costs 

may be recovered through fees. 

d. Fees charged in category B MWR programs will cover NAF expenses incurred and may include a reasonable 

profit on the NAF investment (such as labor, supplies, material). 

e. When patrons are charged a fee in a category C MWR program, including annual dues established for military 

clubs, prices ordinarily will be established within 25 percent of the average prevailing off-base cost for similar goods 

or services. Annual surveys of off-post commercial, municipal, and/or private enterprises will ensure costs are within 

the 25 percent rate. 

f. IMCOM Regions will be responsible for establishing prices, user fees, and charges overseas. 

g. Nonmembers of a military club may be charged more than a member. 

h. Child care fees will be in accordance with AR 608–10. Child and Youth Services School Age Services program 

fees may be structured similarly or graduated based on other considerations, unless stipulated otherwise by the 

FMWRC. 

i. Special prices and privileges will not be given to functions designated as “command sponsored.” No person or 


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group of people will receive special prices or privileges that are not available to all patrons except as provided in 

paragraph 12–9. 

12–9. Discounts 

The following discounts may be offered if they are offered consistently and are equitable: 

a. Lower prices for junior enlisted personnel. Discounts when tailored to various major target groups, such as single 

Soldiers, retirees, Family nights, and birthdays, provided other groups are also provided the same opportunity when 

requested. 

b. Group rates, if all parties of the same size are given the same rate. 

12–10. Fees for Federal property use (31 USC 3302). 

a. Fees or payments for licenses, rents, or privileges involving the use and conversion of Government-owned or 

leased buildings, lands, and their crops, natural resources, and wildlife will not accrue to the NAFI/entity. Program 

fees, however, may be established to defray NAF costs, if any are incurred. 

b. Money collected from the sale of special State permits to hunt and fish on military installations will not accrue to 

the NAFI/entity but are administered as prescribed in AR 200–3. Program fees may be established to defray NAF costs 

for conducting recreational hunting or fishing. 

c. Proceeds from the sale of property acquired with APFs or for services provided exclusively through the use of 

APFs will not accrue to the NAFI/entity except as provided by law. Fees may be charged to cover NAF costs that are 

expended in the use of APF property or the provision of APF services. Fees may be charged and retained by the MWR 

program when providing an authorized MWR product or service, supported with NAFs. Commanders at all levels have 

fiduciary responsibility for APFs and NAFs and are responsible for ensuring that fees are charged properly. 

Section IV 

Credit 

12–11. Commercial credit cards 

Acceptance of commercial credit cards is the preferred method of extending credit to MWR patrons if shown to be the 

most cost-effective means of providing credit. Contracts may be awarded to commercial card issuers in accordance 

with AR 215–4. Credit services for more than one program may be included in the same contract. 

a. Commercial bank credit card services may supplement or replace in-house charge systems. 

b. The supported NAFI/entity will not perform credit control or collection functions on overdue accounts contracted 

to commercial credit card firms. 

12–12. In-house nonappropriated fund credit 

a. In-house NAF credit systems to extend credit to patrons, in lieu of commercial credit cards, will not be 

authorized. Exceptions may be approved by FMWRC. This does not include the military exchange credit program. 

b. A waiver to on-post banking services is approved to authorize Armywide implementation of credit and uniform 

accounts receivable services under the Customer Payment Solutions (CPS) Program. All garrisons will be converted to 

the CPS credit processing system. Garrisons with local credit cards processing agreements expiring prior to their 

scheduled CPS implementation date must contact FMWRC for guidance until they are brought under the CPS program. 

A d d r e s s i s C o m m a n d e r , F a m i l y a n d M W R C o m m a n d ( F M W R C – B P C ) , 4 7 0 0 K i n g S t r e e t , A l e x a n d r i a , V A 

22302–4404. 

12–13. Credit card use over Web sites 

MWR Web sites offering consigned or auction items or excess NAF property for purchase via credit card must contain 

appropriate security controls to avoid credit card abuse and unauthorized access to credit card information. 

Chapter 13 

Logistics and Administration 

Section I 

Travel and Transportation 


a. The following criteria apply to NAFI/entity personnel on travel duty: 

(1) Provisions of the JTR will apply to NAF employees traveling on MWR business unless specified otherwise in 



(2) Transportation of NAF employees may be APF-funded when the purpose of the travel is related to ECECS (see 

app D). 

(3) U.S. citizen NAF employees may travel on air mobility aircraft. Official travel will be on a space-required basis, 

subject to reimbursement from the employing NAFI/entity, unless the travel is APF funded. 

(4) Gratuities, including frequent flyer miles and hotel and rental car “points” from commercial sources, earned by 

Army NAF personnel travelers on official business at the NAFI’s/entity’s expense may be kept for personal use. 

Acceptance of gratuities, reimbursements, and other benefits will be in accordance with the JTR, Army Directive 

2005–01, and DOD 5500.7–R. 

(5) Advance travel payments to NAF employees who are not authorized Government corporate charge cards will not 

exceed 80 percent of the anticipated per diem allowance plus transportation costs. Vouchers are promptly submitted in 

accordance with DOD 7000.14–R, volume 13. 

(6) PCS movement of NAF employees, their Family members, household goods, and POVs will be in accordance 

with AR 215–3. Costs of PCS transportation by the Military Sealift Command or Air Mobility Command will be 

reimbursed from the employing NAFI/entity or by the employee from authorized employment allowances. 

(a) Preparation of PCS travel orders that include the shipment of household goods and unaccompanied baggage will 

follow procedures in the JTR. 

(b) A copy of all travel orders for NAF employees returning from an OCONUS assignment will be sent to the Fund 

Manager, Army MWR Fund, P.O. Box 107, Arlington, VA 22210. 

(c) The JTR prohibits shipment of privately owned ammunition as household goods. This prohibition applies to 

NAF employees. 

b. Air transportation requirements will be booked with U.S. flag carriers, unless otherwise determined by the local 

transportation officer or an appropriate official that certified air carriers are not available (see JTR, para C2204, for an 

exception to this requirement). 

c. Employees traveling under official travel orders are entitled to use permanent quarters, DOD food services, 

exchanges (while occupying Government quarters), and other MWR programs, except where precluded by international 

treaty or agreement. 

d. The following criteria apply to NAFI-funded and entity-funded travel: 

(1) Travel order forms described in the JTR, volume II, chapter 3, part D, for TDY and PCS will be used in 

conjunction with official NAFI/entity funded travel, subject to the following: 

(a) Forms will be clearly marked “NONAPPROPRIATED FUNDS.” 

(b) The commander immediately responsible for the NAFI/entity will designate in writing the order-authorizing 

official for NAF travel orders. 

(c) The remarks section will contain a statement signed by the fund manager/entity administrator indicating that 

NAFs are available within an approved NAFI/entity budget. 

(d) The accounting citation section will include an entry signed by the fund manager/entity administrator indicating 

that all related travel costs are chargeable to the NAFI/entity. 

(e) When the fund manager/entity administrator is also the order-authorizing official, the separate entries described 

above need not be individually signed. 

(2) First-class air transportation accommodations will not be authorized except for limited circumstances as allowed 

in the JTR and the Secretary of the Army travel policy (see para 13–1a(4), above). 

e. SF 1169 (U.S. Government Transportation Request for travel funded with NAF will not be used. See appendix D 

for APF authorizations. 

f. Travel by personnel participating in authorized athletic competitions, training sessions, or like events may be 

authorized by invitational travel orders at no expense to the Government. Travel expenses will be paid by the 

sponsoring NAFI/entity, personal funds, or a combination of both. 

g. Other authority for personnel travel expenses is in chapter 8 and appendix D of this regulation. 

h. Policies on travel of non-DOD personnel, spouse travel, and the use of invitational travel orders are contained in 

the JTR and the Secretary of the Army travel policy cited in paragraph 13–1a(4), above. 

13–2. Nonappropriated fund instrumentality/entity centrally billed and individually billed accounts 

a. The centrally billed account (CBA) and individually billed account (IBA) will be used when airline tickets are 

purchased for official travel using the U.S. Government-negotiated airfares. 

b. The CBA/IBA will be issued by a contractor holding the current U.S. Government charge card contract. 

(1) Requests to establish a NAFI/entity CBA/IBA must be addressed to the Commander, Surface Deployment and 

Distribution Command, ATTN: MTIM, 200 Stovall Street, Alexandria, VA 22332. 

(2) Information provided to the Surface Deployment and Distribution Command must include— 

(a) Name of installation and exact name of the NAFI/entity; for example, Fort Justice Morale, Welfare, and 

Recreation Program, Fort Justice Lodging Fund, Fort Justice Civilian Welfare Fund, IMCOM Regional MWR Fund, 

and so on. 


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(b) Name, title, mailing address, Defense Service Network (DSN), and commercial telephone and fax numbers, and 

e-mail address for the individual who will verify CBA/IBA billings for payment. 

(c) Name, mailing address, and commercial telephone and fax numbers for the servicing commercial travel office/ 

contractor. 

(d) Name, mailing address, and DSN and commercial telephone and fax numbers for the servicing NAFI/entity 

CAO. 

(e) Estimated NAF travel budget for the current fiscal year. 

(3) CBA/IBA account numbers will be given to local commercial travel offices by the Surface Deployment and 

Distribution Command immediately after they are issued to the NAFI/entity. All subsequent commercial travel office 

billings against the NAFI/entity will be charged to the CBA/IBA. The CBA/IBA will remain active unless canceled in 

writing by the Government contractor or the NAFI/entity. 

13–3. Nonappropriated fund instrumentality/entity cargo 

a. Eligible cargo, as defined in appendix D, may be transported from CONUS to the first overseas destination by 

Air Mobility Command (AMC) airlift or Military Sealift Command sealift on a space-required, nonreimbursable basis. 

Eligible cargo meeting AR 59–3 criteria will be assigned transportation priority 3 (TP3), in accordance with DOD 

4500.9–R, Volume II, chapter 203. Documentation for authorized shipment using the military transportation system 

will be in accordance with DOD 4500.9–R. 

b. Overseas commanders will determine eligibility of cargo for intratheater movement on aircraft under their 

operational control, subject to— 

(1) Items determined to be essential to the MWR program may be transported on a space-available, nonreimbursable 

basis, if air transportation is necessary and can be furnished from available resources. The movement document is 

annotated “nonrevenue traffic.” 

(2) Items not qualifying will be transported only on a reimbursable basis at the cost tariff rate. The movement 

document is annotated “revenue traffic.” 

Section II 

Official Vehicle Use 

13–4. Use of Government vehicles 

a. Use of Government-owned or Government-contracted vehicles by MWR programs is governed by AR 58–1 and 

is limited to authorizations in appendix D. Vehicles will not be acquired with APFs to provide transportation support 

either partially or wholly to MWR programs. 

b. Use of Army motor pool vehicles will be restricted to official purposes. They may be used only if the local 

commander determines that such use does not adversely affect the command mission. 

c. Government bus transportation may be provided MWR programs in accordance with policies in AR 58–1. 

13–5. Use of nonappropriated fund vehicles 

a. NAF passenger carriers will be used only for official NAFI/entity business. 

b. Domicile-to-duty (home to work) transportation is prohibited by statute (31 USC 1344). Employees will provide 

their own transportation between home and work, unless written approval has been obtained. 

c. AR 58–1, chapter 4, and Army Directive 2005–1 (para 13–1a(4)) contain domicile-to-duty policy and are 

applicable to NAF vehicles. 

13–6. Registration and licensing of nonappropriated fund instrumentality/entity vehicles 

a. Registration. Within the United States and Puerto Rico, the following vehicles will be registered within 72 hours 

of acquisition: those owned by NAFI/entity and vehicles leased under a NAF contract for use on public roads. This 

includes recreational vehicles, campers, and trailers. Off-road vehicles, motorcycles, and mopeds must be registered 

only if required by the State in which they are used or located. No vehicle, regardless of type, will be registered with 

State or local Government. Overseas NAFIs/entities will register NAF vehicles as prescribed by SOFA or local 

regulations. Registration procedures for NAF vehicles are administered by the Armys NAF RIMP as follows: 

(1) Requests for NAF vehicle registration will be signed by fund manager/entity administrator managers and 

forwarded to the Commander, Family and Morale, Welfare and Recreation Command, ATTN: IMWR–FM–I, 4700 

King Street, Alexandria, VA 22302–4406. 

(2) Requests will include— 

(a) Garrison and IMCOM Region; name of the NAFI/entity that owns, uses, or leases the vehicles; date acquired; 

and cost. 

(b) Source of acquisition, such as commercial purchase, transfer from another NAFI/entity, or issue through a 

DRMO. If transferred from another NAFI/entity, the name and location of the losing NAFI/entity and the license plate 

number transferred with the vehicle will be included. 


(c) Name and telephone number of the responsible fund manager/entity administrator. 

(d) Description of the vehicle: year, make, model, body type, and Vehicle Identification Number (VIN). 

(3) Supporting documents include: 

(a) For vehicles acquired through DRMO or property disposal offices, a copy of DD Form 1348 (DOD Single Line 

Item Requisition System Document Manual). 

(b) For other vehicles, a copy of the title or bill of sale. 

(c) For mopeds, a copy of the State requirement or a statement by the fund manager/entity administrator that moped 

registration is required. 

(d) Certification that vehicles have been and will be inspected and road tested annually by appropriate installation 

personnel, using the inspection criteria of the State in which the vehicles are based. The fund manager/entity 

administrator retains results of tests and inspections. 

b. NAF vehicle license plates. After RIMP registration, DA Form 4722 (U.S. Army Nonappropriated Fund Vehicle 

Registration) will be sent with license plates directly to the requesting NAFI/entity. The original registration form will 

be kept in the vehicle, and the duplicate retained by the fund manager/entity administrator. Campers and trailers 

designed to be towed by another vehicle will be issued one plate; other vehicles will be issued two plates. Registration 

and licenses issued under this regulation will be valid until canceled by RIMP. 

c. Transfer and cancellation of NAF registration. Registrations will be canceled upon the vehicle’s transfer, sale, or 

other disposition. Registrations will be not transferable to other NAF vehicles. 

(1) The losing NAFI/entity will complete the reverse side of DA Form 4722 indicating the name and address of the 

gaining NAFI/entity and return it to RIMP. License plates will remain with the vehicle. 

(2) The gaining NAFI/entity will apply for a new vehicle registration as specified in subparagraph 13–6a. 

(3) When NAF vehicles are sold, turned in to DRMO, or otherwise disposed of, the fund manager/entity administrator 

will complete the reverse side of DA Form 4722 and return it to RIMP at the above address. License plates are 

removed and destroyed. 

d. Replacement of license plates. 

(1) New license plates will be issued to replace any that have been lost or stolen or become illegible. Requests 

signed by the fund manager/entity administrator will be sent to RIMP at the address in paragraph 13–6a. Reasons for 

the request will be given, and the plate number to be replaced will be included. Upon receipt of replacement 

registration and plates, old plates will be removed and destroyed within 72 hours. 

(2) Copies of previous registration certificates will be returned to RIMP within 30 days of issue. A superseded 

registration not received by RIMP within 30 days of the issue date may be canceled without notice and may subject the 

fundmanager/entity administrator to disciplinary action. 

e. Drivers’ licenses for NAF vehicles. 

(1) Drivers of NAF vehicles designed for 15 or fewer passengers (including the driver) must— 

(a) Possess an OF 346 (U.S. Government Motor Vehicle Operator’s Identification Card) per DOD 4500.36–R; or 

(b) Be a licensed driver in the State in which the vehicle is based or primarily operated or in any State that has 

reciprocity with the State in which the vehicle is based. 

(2) Drivers of NAF-operated vehicles designed for 16 or more passengers (including the driver) must possess a 

commercial driver’s license. 

(3) Drivers of NAF vehicles in overseas areas must be licensed in accordance with local laws or treaty agreements. 

Section III 

Information Technology Systems 

13–7. Information system configuration plan 

a. P.L. 104–106 requires the development of an organizational Enterprise Architecture (EA) specifically for the 

identification and improvement of organizational processes and the development of integrated information support 

systems. FMWRC is responsible for the development and maintenance of the Army MWR and Family Programs EA. 

Development, maintenance, and utilization of the organizational EA is instrumental to successful achievement of 

facilitating business process improvement; guiding future information system investments; facilitating systems interoperability 

and integration; and supporting of the Defense Department Business Management Modernization Program. 

The MWR EA will be developed in accordance with the DOD Architecture Framework and the Army Enterprise 

Architecture Guidance Document, in coordination with the office of the ACSIM–EA and the IMCOM EA. 

b. In coordination with the G–6 and the Army Chief Information Officer (CIO) Executive Board, FMWRC will 

provide command ECECS through the FMWRC CIO for the development, fielding, control, and management of all 

FMWRC managed MWR/NAFI EA and Configuration Control Board (CCB) approved information systems. FMWRC 

CIO oversight will also include the EA–CCB strategic information system resource plan, configuration management 

plan, and life-cycle management plan for all FMWRC managed MWR/NAFI information systems. 


103

c. The EA–CCB will develop and publish approved FMWRC-managed MWR/NAFI information systems configuration 

plans. FMWRC managed MWR/NAFI information system configurations will be established and fielded under the 

authority of the MWR BOD and will be based upon the guidance and recommendations of the EA–CCB committees. 

Use of the standard EA–CCB approved systems is mandatory. 

13–8. Acquisition 

a. Information systems (including office automation and data processing systems and equipment and associated 

hardware and software) for use within MWR/NAFI programs must be approved by the respective information system 

designated approval authority responsible for the information system and the EA–CCB prior to initiation of the 

procurement process. The EA–CCB will publish a list of approved information system hardware/software components. 

b. Installation specific office automation and software requirements, to include FMWRC managed MWR/NAFI 

offices, will normally be provided by the installation DOIM to meet commander’s office automation requirements. In 

the event office automation software is not available from the installation DOIM, office automation software requirements 

not on the EA–CCB approved items list will be submitted through command channels to the EA–CCB, with a 

statement from the commander’s resource manager attesting to the nonavailability of APFs, for approval prior to 

initiation of the procurement process. 

13–9. Approval authority for NAF requirements 

a. Garrison commanders will approve all orders up to $50,000 for EA–CCB approved stand-alone information 

systems, including those that are part of the MWR information system(s). 

b. IMCOM Regions will approve all orders for EA–CCB approved stand-alone systems exceeding $50,000, including 

those that are part of the MWR information system(s) and integrated information systems, regardless of use. 

Section IV 

Administrative Policies 

13–10. Conflicts of interest 

DOD 5500.7–R applies to all personnel responsible for the custody, control, management, supervision, and administration 

of APF or NAF resources. In addition, no individual, unit, organization, installation, or garrison will have any 

proprietary interest in NAFs or NAF assets. 

13–11. Nondiscrimination 

The employment practices of all NAFIs/entities will conform to the Government’s policy of ensuring equal employment 

opportunity to all persons without regard to race, color, religion, sex, national origin, disability, age, reprisal, or 

other bases as contained in AR 690–12, AR 690–600, and applicable EOs. A NAFI will not be affiliated by 

membership, dues or nondues paying, with any private sector recreational, trade, or professional association that 

practices illegal discrimination in any form. No MWR facility or program will be made available to any organization 

that practices discrimination nor will any NAFI/entity use the land, facilities, or services of such organizations. 

13–12. Acquisition of goods and services 

When APFs are to be expended for a MWR acquisition, the provisions of the FAR, FAR supplements, and this 

regulation apply. MWR USA/UFM funding practice provisions are in chapter 5 of this regulation. For NAF acquisitions, 

the provisions of this regulation and AR 215–4 apply. 

a. Verbal contracts will not be used. 

b. NAF and APF Government purchase cards may be used as authorized. 

c. The GSA Smart Pay Purchase Card is for Armywide use by both APF and NAF organizations. Armywide SOP 

for use of the Government Purchase Card is issued to each cardholder explaining the program, conditions for use, 

authorized, unauthorized, and regulated purchases, dollar limits, and procedures. The SOP for use of this Government 

Purchase Card by U.S. Army NAFIs/entities is issued by the Commander, Family and Morale, Welfare and Recreation 

Command, ATTN: IMWR–NC, 4700 King Street, Alexandria, VA 22302–4415. 

(1) The NAFI will use the NAF Purchase Card to pay for commercial services arranged by the NAFI for which the 

program has received payment from the patron—for example, tickets to concerts, theatres, or sports events. 

(2) The GSA Smart Pay Purchase Card may be used by APF organizations to purchase supplies or services 

noncompetitively from NAFIs/entities, including AAFES, subject to the threshold of $2,500. The Government must 

rotate such purchases among vendors if there is similar price/value relationship. Supplies and services acquired from 

NAFIs/entities must be integral to the ongoing functions performed by the NAFI/entity in support of the NAFI/entity 

mission. 

d. Under the authority of 10 USC 2492— 

(1) NAFIs/entities may enter into a contract or an agreement with another element of the DOD or with another 

Federal department, agency, or instrumentality to provide or obtain goods and services. Before entering into a contract 


or other agreement, the garrison MWR operating entity administrator/NAFI fund manager will ensure that the contract 

or agreement will financially benefit the entity/NAFI, considering fixed and variable direct and overhead costs 

(including depreciation). Goods and services provided by a NAFI/entity to another agency must be within the scope of 

the designated NAFI’s/entity’s function and mission. DOD NAFIs will not enter into contracts or agreements with 

DOD elements or other Federal agencies or instrumentalities for the provision of goods and services that will result in 

the loss of existing contractor jobs on the installation created pursuant to the Randolph-Sheppard, Javits-Wagner-O’Day 

Act, or small business programs. 

(2) Use of DD Form 448 (Military Interdepartmental Purchase Request ) will follow guidelines in DFAS–IN 

Regulation 37–1 (para 12–5) to transfer NAFs to an APF account of the U.S. Government for goods and services 

rendered to a NAFI/an entity by the Government. 

e. The Government may contract noncompetitively with overseas exchanges for supply requirements, conditioned 

upon the contract (or Purchase Card) not exceeding $100,000; availability of merchandise where the contract is let; and 

that items are normally in the exchange inventory (10 USC 2424). 

f. See paragraphs 5–2 and 5–3 for policy on the DOD MWR USA/UFM funding practices, which allows authorized 

APF services to be executed through a MWR NAF account. 

13–13. Food service employee meals 

a. Program managers may offer an employee meal program to NAF employees working in a food service environment 

(MWR programs that sell food). If this is a condition of employment, the employee must be paid for the meal 

period. In any case, the meal period is specified within the employee’s scheduled work hours. Meals will be retail 

price, wholesale cost, or no cost to the employee. The employee meal program is used as a business tool and a benefit 

to the NAFI/entity. Examples include a rental clerk behind the bowling center counter taking meals at the bowling 

center snack bar; a club cook or hostess taking their meal at the club; and the golf pro manager taking a meal at the 

food service facility at the golf course. 

b. Meal programs for local national employees and third-country national employees are prescribed by the IMCOM 

Regions and subject to applicable international agreements. 

c. GLAC 306 is used in accounting for NAF employee meals per DOD 7000.14–R, volume 13 (app A). 

13–14. Acceptance of gifts or donations 

For commercial sponsorship agreements, see chapter 11. For gifts to the Government, see AR 1–100. 

a. Gifts of real or personal property or gifts of a monetary value may be accepted by a NAFI when voluntarily 

offered by private individuals or groups, if a determination is made that acceptance is in the NAFI’s best interest. In 

making this determination, the responsible official considers— 

(1) Whether the NAFI/entity needs the proposed gift. 

(2) The cost to the NAFI/entity. 

(3) Whether conditions imposed by the donor, if any, can be met. 

b. Gifts will not be solicited. Army personnel may, however, identify NAFI/entity needs in response to inquiries 

from prospective donors. 

c. Donors will not be granted any special privileges or concessions in return for gifts voluntarily offered; all 

ownership rights are relinquished. This will not preclude accepting donations of minimal value (score cards, coin 

wrappers, golf tees, table tents) that include the logo or slogan of a commercial source. Government identity will not be 

contained on such items. 

(1) A posted disclaimer will state that the Army does not officially endorse the product donated or the organization 

furnishing it. 

(2) The donor will not be given exclusive rights to furnish products. 

d. The use of donor boxes for voluntary public contributions to museums and chaplain funds is not a public 

solicitation and is, therefore, authorized. A sign posted near the donor box will state clearly how contributions are used 

and that donations are not used to support the APF facility where the box is located. 

e. The following authorities may approve offers of gifts or donations, subject to value limitations for each gift. The 

aggregate amount of concurrent gifts from a single source to an individual NAFI/entity will determine the approval 

level. Requests are forwarded through the following command channels: 

(1) Director, FMWR , up to $15,000 when delegated by the garrison commander. 

(2) Garrison commanders, up to $50,000, except for contributions by the local United Way, which may be accepted 

in any amount. 

(3) IMCOM Regional Directors, up to $100,000. 

(4) FMWRC (IMWR–PO), amounts up to $250,000. 

(5) Secretary of the Army, amounts over $250,000. 


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13–15. Safety, fire prevention, and health programs 

a. Safety. 

(1) Safety programs will be established for all MWR programs in cooperation with garrison safety directors and fire 

marshals as required by AR 385–10, AR 385–40, and AR 420–1. Chapter 8 of this regulation outlines additional safety 

requirements for high-risk MWR programs. 

(2) SOPs for safety administration and accident prevention will be developed for ongoing and special activities and 

used by all MWR personnel. 

(3) Individuals using hand tools, power tools, and other specialized equipment will qualify prior to use. Qualification 

records are maintained on DA Form 3031 (Qualification Card for Use of Arts and Crafts Center Equipment) or 

DA Form 3031–1 (Qualification Card for Use of Automotive Crafts Shop Equipment) and are updated every 5 years. 

(4) Tableside flambé cooking in MWR programs is prohibited because of the safety hazards posed to the server and 

guests and the potential for major liability claims under the RIMP program. 

b. Food service inspections and sanitation. Comprehensive health and environmental quality programs are established 

for all MWR operations as prescribed by Technical Bulletin Medical (TB MED) 530. Food inspection and 

sanitation requirements are outlined in AR 40–5 and AR 40–657. 

c. Weapons and ammunition. Weapons and ammunition are stored, maintained, and accounted for as prescribed in 

chapters 8 and 17, AR 190–11, AR 385–64, and DA Pam 385–64. 

d. Smoking. 

(1) Smoking in MWR facilities will be in accordance with AR 600–63 and DODI 1010.15. All DOD civilian and 

military personnel will be protected from the health hazards caused by exposure to environmental tobacco smoke. 

(2) DODI 1010.15 requires that enclosed designated smoking areas must be exhausted directly to the outside, 

located away from air intakes, and maintained under negative pressure sufficient to contain tobacco smoke in the 

designated area. Employees will not be required to enter such areas during normal business hours while environmental 

tobacco smoke is present 

(3) MWR program managers may designate outdoor smoking areas that are reasonably accessible to smokers and 

provide a measure of protection from the elements. They are to be located at least 50 feet from common points of 

ingress and/or egress into and/or out of the MWR facility and not in front of the building air intake ducts or areas 

commonly used by nonsmokers. 

(4) In accordance with P.L. 104–52, the sale of tobacco products (cigarettes, cigars, little cigars, pipe tobacco, 

smokeless tobacco, snuff, and chewing tobacco) in vending machines and the distribution of free samples of tobacco 

products in or around Federal buildings (owned or occupied under a lease, to include real property on which a building 

is located) is prohibited, except at specific locations where minors (under 18 years of age) are not allowed. Sales 

restrictions apply only to vending machines, not over-the-counter sales. This prohibition may or may not apply to 

buildings occupied in foreign areas as may be specified in SOFAs. 

e. Pest management. 

(1) MWR programs, to include clubs, child care centers, golf courses, and other recreational facilities, will establish 

pest management programs in cooperation with public works environmental personnel as prescribed by AR 200–5. 

(2) Each MWR program should employ pest management techniques that reduce reliance on chemicals to eliminate 

or reduce damage by pests with minimum risks to the environment from hazardous chemicals. 

(3) Garrison personnel or consultants for the installation, who are chemical or pesticide applicators, must be DODcertified 

pesticide applicators per AR 200–5. 

13–16. Postage and mail 

Payment of U.S. postage from APFs will be authorized for official business. Only NAFs will be used for postage 

related exclusively to category C MWR programs (see app D). 

13–17. Liability waivers 

a. A liability waiver, also known as a release and hold harmless agreement or a covenant not to sue, is a signed 

statement in which a participant in an event or program acknowledges the inherent risks and dangers of participation 

and agrees not to sue the sponsor or operator or otherwise hold it responsible in the event of injury or death resulting 

from participation. Use of liability waivers by MWR programs will be as follows: 

(1) The garrison commander will determine whether liability waivers are used based on recommendations of MWR 

program managers and the installation SJA. Consideration includes liability exposure, availability and adequacy of 

liability insurance, and adequacy of management practices and procedures. 

(2) Where required, liability waivers will be drawn by the SJA and are— 

(a) Tailored to circumstances of the specific event or activity. 

(b) Compatible with State and local laws or the provisions of any applicable international laws, customs, treaties, or 

agreements. 


(c) Written clearly and unequivocally, avoiding any extraneous matter, such as statements concerning damage to 

Government property. 

b. A determination as to whether to establish or continue an MWR program will be based on the liability exposure 

of the program and not the fact that a liability waiver is or can be required. Liability exposure is the extent to which 

APF or NAF expenditures may be required to pay claims for death or personal injury, damage to or loss of property, 

and the cost of investigation and litigation. 

13–18. Events 

a. MWR events. Garrisons may periodically conduct special events. Guidelines for special events involving MWR 

and/or NAF resources follow: 

(1) MWR events conducted in CONUS will comply with applicable laws and regulations; events conducted overseas 

will comply with applicable international treaties and agreements (see also paras 8–17 and 8–18). 

(2) MWR events will not selectively benefit or endorse any commercial interest, product, or person. Gifts and 

donations may be accepted and commercial sponsorship may be solicited in accordance with the policies in this chapter 

and chapter 11. 

(3) MWR programs may operate authorized resale activities and services in accordance with policy in chapter 12. If 

unable to provide resale activities or services, commercial contractors may be used. 

(4) MOAs/MOUs with on-post POs or members of military units volunteering their services to the benefit of the 

PO/unit fund or contracts with concessionaires are authorized for the operation of MWR resale booths at MWR events. 

DOD 5500.7–R provisions regarding fund raising will apply. 

(5) At the discretion of the garrison commander, MWR programs may secure the aid of volunteers or persons 

providing gratuitous services to assist in the sale of MWR-procured alcoholic beverages. MWR programs may also 

enter into agreements with military units or on-post private organizations, under which the military units or private 

organizations will provide qualified personnel to assist the MWR program in selling alcoholic beverages at MWR 

events in exchange for a fee. Fees paid to military units will be deposited into the unit funds; units will not require 

Soldiers to participate in the event. MWR programs may also contract with concessionaires to sell alcoholic beverages 

at MWR events. This may also apply to cosponsored events, below (see also para 10–8). All personnel assisting the 

MWR program to sell alcoholic beverages at such events will receive appropriate training. 

b. Cosponsored events. These events will be governed by DOD 5500.7–R. If gate fees are charged, MWR will 

collect and account for all receipts. 

c. Installation/community relations events. Installation open houses and related events are primarily public affairs 

events, designed to share information about military missions, equipment, facilities, and personnel with local or 

regional communities. MWR programs may participate in community relations/public affairs open houses/events, as 

long as generating NAF revenue is not the primary objective of the open house/event. This will not preclude MWR 

programs from selling food and beverages and mementos commemorating the event. 

13–19. Promotional materials 

a. Promotional mailings, written or electronic, to authorized MWR patrons of announcements pertaining to sales in 

and services provided by MWR programs are authorized. Promotional mailings containing advertisement of specific 

commercial products, commodities, or services provided by or for any private individual, firm, or corporation are 

authorized only to those patrons who voluntarily have requested to receive such mailings. The cost of promotional 

mailings to include postage will be paid for with NAFs. 

b. Ads, premiums, coupons, and samples (except tobacco products and alcoholic beverages) may be distributed 

directly to authorized patrons unless specifically prohibited by DOD policy. A disclaimer will not be required for items 

provided as premiums, coupons, and samples. MWR programs may accept premiums with a value of $20.00 or less. 

Ads and promotional devices that are primarily advertising devices, prepared by non-DOD sources, will not be 

distributed through official channels. Such media may be placed in locations on the installation for personal pickup. A 

disclaimer will be required as prescribed above. Funds will not be solicited from suppliers or other non- DOD sources 

to offset costs of premiums. MWR programs will not request suppliers or other sources to prepare or provide special 

premiums at their expense. 

c. MWR programs may use point of sale displays and promotional material, such as reduced price and special offer 

coupons and may participate in national and local coupon redemption programs, available to the general public as well 

as the military community. 

d. MWR operations may accept items of small value from vendors using the procedures outlined for FB&E 

operations in paragraph 8–24d(10) and (11). 

13–20. Identity (and signage) 

a. MWR programs will be identified with appropriate signs and will be included in post maps and telephone 

directories. Interior signs will inform patrons of goods and services, hours of operation, prices, authorized patronage, 

and credit and check-cashing practices. 


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. The placement of all exterior signs must be coordinated with and approved by the installation DEH/DPW. 

c. Distinctive uniforms, other articles of clothing, name tags, and insignia may be worn by MWR personnel while 

on duty. 

13–21. Operating hours 

Operating hours will respond to market demand as determined by community needs assessments. 

13–22. Customer complaints 

NAFI fund managers/entity administrators will use their discretion in the settlement of customer sales and service 

complaints by cash payments, service, or replacement in kind. All such returns for cash or exchange, replacement, and 

so on must be documented. Assistance of MWR program managers and SJAs will be requested, as necessary. Any 

claims of this nature that cannot be satisfactorily settled in this manner, or any claims which include a demand for 

consequential damages, such as personal injury or property damage other than that to the article purchased or serviced, 

will be processed per AR 27–20, chapter 12 (see para G–9). 

13–23. Awards programs 

Appendix K provides a synopsis of the various awards, competitions, tournaments, and contests administered by 

FMWRC. 

Section V 

Volunteer and Gratuitous Services Policies 

13–24. Volunteer policy (10 USC 1588) 

a. More detailed policy and guidance are contained in AR 608–1. 

b. Among many other installation programs, voluntary services may be accepted by MWR programs and other 

NAFIs. 

c. The acceptance of volunteer services will be acknowledged on DD Form 2793 (Volunteer Agreement for 

Appropriated Fund and Nonappropriated Fund Instrumentalities) (see AR 608–1) prior to the volunteer providing 

services. 

d. Tasks and duties to be performed will be fully defined and documented to provide achievable goals and 

challenges to motivate the individual. Job description elements will include the position and title, first and second line 

supervisor, goals/objectives of the job, description of the duties, time required, qualifications of the job, training 

required and provided by the program accepting the voluntary services, and evaluation and feedback by the supervisor. 

e. Volunteers may be eligible for reimbursement of incidental expenses incurred as a result of providing voluntary 

services. Requirements for reimbursement and reimbursable expenses are detailed in chapter 5 of this regulation and 


f. MWR programs may recruit and train volunteers to provide voluntary services. 

g. Status of persons providing voluntary services will be as follows: 

(1) A volunteer may be considered to be an employee of the Federal Government only for purposes of the following 

provisions of law: 

(a) Compensation for injuries occurring during the performance of approved volunteer services pursuant to 5 USC 

8101–8152. 

(b) Claims of damages or losses pursuant to 28 USC 2671–2680. 

(c) Privacy Act and Freedom of Information Act regulations regarding the maintenance of records on individuals 

pursuant to 5 USC 552a. 

(d) Criminal conflict of interest laws pursuant to 18 USC 201–225. 

(2) Volunteers will be considered employees of the NAFI/entity when providing services to an authorized Army 

NAFI/entity only for the purposes of— 

(a) Compensation for injuries occurring during the performance of approved volunteer services pursuant to 5 USC 

8171–8173. 

(b) Claims for damages or losses pursuant to 28 USC 2671–2680 and 10 USC 2733. 

h. Volunteers may be used to assist and augment the regularly funded workforce by performing an apportionment of 

a required function. However, they may not be used to totally or permanently substitute for unfilled positions or replace 

paid employees. Volunteers will not perform duties that otherwise circumvent the Civil Service system or for which 

funding has been provided to hire staff or obtain services by contract. 

i. The provisions of Section 637 of the National Defense Authorization Act for fiscal years 1988 and 1989 will 

apply. No DOD official will, directly or indirectly, impede or otherwise interfere with the right of a spouse of a 

military member to pursue and hold a job, attend school, or perform voluntary services on or off a military installation. 

Additionally, no DOD official will use the preferences or requirements of a DOD component to influence, or attempt to 

influence, the employment, education, or volunteer services decisions of a spouse. 


j. Background checks and standards for acceptance and use of volunteers for Child and Youth Services and Family 

Advocacy Programs will be the same as those prescribed in AR 608–10 and AR 608–18. 

k. Voluntary services may be accepted from civilian personnel from both the military and civilian communities and 

military personnel and their Family members. 

l. Contributions and achievements may be acknowledged through appropriate recognition programs funded from 

NAFs (see chap 5). 

m. Voluntary services will be recorded and retained by the receiving program until determined no longer required. 

n. MWR programs and other NAFIs will use DA Forms 4162 (Volunteer Service Record) and 4713 (Volunteer 

Daily Time Record) prescribed in AR 608–1 for the recording of volunteer services. 

o. DA Form 5671 (Parental Permission) will be used to obtain parental permission when accepting voluntary 

services from unmarried Family members under age 18. AR 608–1 prescribes the use of this form. 

13–25. Volunteer services by student interns (5 USC 3111) 

a. Voluntary service may be accepted from students, with the permission of the institution at which the student is 

enrolled, as part of an agency program established for the purpose of providing educational experiences for the student. 

The student will not be compensated for the experience. 

b. Program managers will contact their local personnel office for applicable Office of Personnel Management 

guidance. 

c. Volunteer student internships do not fall under the Army’s Installation Volunteer Program. 

13–26. Gratuitous services 

The provisions in AR 608–1 will apply to individuals providing gratuitous services to MWR programs and NAFIs. 

Chapter 14 

Morale Welfare Recreation Personnel 

Section I 

Management 

14–1. Overview 

The MWR work force includes military and APF and NAF civilian personnel. Although military personnel and each 

category of civilian employees are included in separate personnel management and professional development systems, 

MWR managers must manage all fairly and equitably in accordance with applicable policy. Sources are— 

a. AR 570–4 for general manpower management and use. 

b. This regulation, including appendix D, for MWR staffing and use of military personnel in support of MWR 

programs. 

c. AR 614–200 for enlisted personnel management. 

d. AR 215–3 for NAF personnel and manpower management and part-time employment of enlisted personnel. 

e. The Caregiving Personnel Pay Program (March 1990) for Child Development Services. 

f. Office of Personnel Management. 

g. AR 690–series. 

h. P.L. 107–314, section 323. 

14–2. Implementation 

a. Requirements for military and APF and NAF personnel are authorized and will be budgeted separately. Budgets 

include provisions for training, travel, and all other personnel-related expenses. 

b. Except as otherwise provided for in this regulation and AR 215–3, the servicing CPAC–NAF will provide 

personnel management support for NAF civilian employees on the same basis as for APF civilian employees. 

c. Program managers will have approval authority over the work schedules of all assigned personnel including 

overtime hours for civilian employees. Managers will reconcile work schedules with time and attendance records and 

submit required documents to the servicing finance and accounting office (FAO) or CAO. 

d. Military personnel employed by MWR programs on off-duty time may not be paid from APFs. 

Section II 

Requirements 

14–3. Requirements for appropriated fund positions 

a. Garrison commanders will ensure that all APF positions, military and civilian, will be properly established or 


109

validated in accordance with AR 570–4 and this regulation. APF personnel resources will be used to support MWR 

programs as authorized in this regulation. Resulting requirements are approved per AR 570–4. In addition to the 

specific authorizations in appendix D, APF personnel performing the following common support functions are 

authorized: 

(1) HQDA and IMCOM Region levels management functions. The following criteria must be met: 

(a) A person will perform functions related to regulatory requirements and devote most of the duty day to 

developing or implementing policy, monitoring compliance and providing oversight, conducting onsite inspections, 

reviewing program performance, or providing direct administrative support to the aforementioned functions. 

(b) Functions actually performed will match the job description and be included in the organization’s mission and 

functions statement. 

(c) The persons performing the functions will not directly operate a program that generates revenue (see para 

12–2c(14)). 

(2) Garrison-level command supervision. These are functions for general management and operation of more than 

one MWR program, including: 

(a) Directors, division chiefs, and their assistants. 

(b) Comptrollers and FAOs. 

(c) CAOs. 

(d) Administrative support positions directly related to the above. 

b. When both APF and NAF functions are performed by the same office, APF functions will qualify for APF 

support. 

c. For military personnel temporarily assigned or detailed to MWR programs, see appendix D and AR 570–4 and 


d. Civilians will be used to staff MWR programs to the maximum practical extent consistent with SOFAs and 

country-to-country agreements and treaties. 

14–4. Requirements for nonappropriated positions 

a. DA Form 5556 (Personnel Requirements Document) (PRD) documents NAF personnel requirements. The PRD, 

functionally similar to the TDA, which documents APF personnel requirements, is used by management to control 

authorization levels and for budgeting, developing 5-year plans, and pricing strategies. The CPAC–NAF uses DA Form 

5556 as a basis for NAF staffing actions. A sample of a completed DA Form 5556 and instructions for using the form 

are on the MWR Web site, www.armymwr.org, in the policy documents under Human Resources. 

b. Each NAFI/entity employing NAF personnel will maintain a PRD. Upon annual approval, the Director, FMWR 

will ensure that the MWR 5-year plan includes sufficient NAF resources and budgets to meet projected NAF personnel 

expenses. 

c. The PRD is based on validated positions. Additional considerations included in the preparation of the PRD 

include— 

(1) The PRD will indicate those positions that are authorized APF support (under the DOD MWR USA/UFM (paras 

5–2 and 5–3)) whether or not APFs are available to reimburse the expenses of the employee occupying the position. 

(2) Excess flexible personnel requirements are included on the PRD, because flexible employees only require 

obligation of funds for hours actually worked. Excess regular requirements, however, are not included since they 

require the obligation of funds, regardless of hours worked. 

d. The completed PRD is submitted by each program manager to the servicing financial management office, which 

will review the submission for accuracy and compare estimated costs with budget guidance. Upon completion of the 

review, the PRD will be forwarded to the Director, FMWR for coordination and final action by the fund manager/entity 

administrator. Upon approval by the fund manager/entity administrator, the PRD is submitted to the CPAC–NAF to 

assign the paragraph and line numbers. The CPAC–NAF will return the PRD to the manager who will insert the name 

of the incumbent on the PRD. 

e. Policies and procedures for filling NAF positions are described in AR 215–3. 

Section III 

Career Referral Program 

14–5. Applicability 

The Career Referral Program will apply to GS–09 and above positions and NF–4 and above positions in MWR and 

lodging programs. This program will not apply to GS–08 and below positions in MWR and lodging programs. 

14–6. Appropriated fund positions 

See this chapter, section IV, for recruiting, referral, and selection of MWR general schedule employment at GS–09 and 


above positions. GS–08 and below positions will be filled locally by the CPAC using policies and procedures contained 

in AR 690–300. 

14–7. Nonappropriated fund positions 

Policies and procedures for filling NAF positions at all grade levels, including the MWR Career Referral Program, are 

described in AR 215–3. 

Section IV 

Recruiting, Referral and Selection for General Schedule Employment 

14–8. Recruitment 

a. FMWRC administers a MWR referral program to assist garrison commanders in filling APF MWR positions at 

grades GS–09 level and above. This includes key managerial positions with responsibility for MWR programs, 

regardless of organization structure and titles, such as the Director, FMWR. The MWR Career Referral Program will 

be used to fill all MWR covered positions (GS–09 and above) in CONUS commands and activities and is optional for 

use by OCONUS commands and activities. 

b. A DOD/OPM Interchange Agreement allows eligible DOD NAF employees to apply for Federal positions in the 

competitive service without being referred from an OPM employment register. NAF employees must meet eligibility 

requirements contained in the DOD/OPM Interchange Agreement. 

c. FMWRC performs the following recruitment functions for APF positions: 

(1) Posts open continuous announcements on the Army Civilian Personnel Online Web page, www.cpol.army.mil, to 

locate qualified candidates for referral to commands and activities. 

(2) Establishes and maintains a central inventory of applications for selected MWR positions. 

(3) Screens applications for eligibility and qualifications. 

d. Applicants for APF positions may submit resumes via the Internet at www.mwrjobs.army.mil; by e-mail to 

refermwr@cfsc.army.mil; or by mail to the Commander, Family and Morale, Welfare and Recreation Command, 

ATTN: IMWR–HR, 4700 King Street, Alexandria, VA 22302–4407. 

14–9. Referral 

a. Employing activities will submit a request for referral to FMWRC, at the above address, for all permanent fulltime 

MWR position vacancies, GS–09 and above, except as noted in this paragraph. The request must include an 

SF–52 (Request for Personnel Action) and a position description. Recruitment for vacancies in the 1410 series 

(Librarian) will be in accordance with the policy and procedures for the Army civilian career program CP 34. 

b. FMWRC will prepare and issue DA Form 2600 (Referral and Selection Register) or equivalent electronic 

notification to employing activities for use in selecting qualified candidates. Referral lists will provide the names of 

qualified candidates who are promotion, reassignment, transfer, and reinstatement eligible, if appropriate. Local 

recruitment may be authorized if there are fewer than three candidates available for referral. 

c. Referral lists will specify expiration dates. Unless a formal request for an extension of the expiration date is 

granted by FMWRC, referral lists will be invalid on the date specified. 

d. Referral lists will not be required under the circumstances outlined in AR 690–950, paragraph 2–13. 

14–10. Selection 

a. Selection will be made from the FMWRC referral lists unless local recruiting authority is authorized by FMWRC. 

b. If all candidates are considered unacceptable, the servicing CPAC must provide FMWRC valid reasons for 

nonselection from the list before a supplemental list is issued or local recruitment is authorized. When Local 

Recruitment Authority is requested, an Armywide vacancy announcement will be issued by the MWR Career Referral 

Office. If there is still an insufficient number of candidates, local recruitment authority may be authorized. 

c. When selection involves promotion of an acceptable candidate, the selecting official will record the reasons for 

selection on the referral list. 

d. Upon final selection, the selecting official will notify the CPAC, which will coordinate directly with the losing 

CPAC. The gaining CPAC will notify FMWRC of the selection and return the referral list. 

e. Normally, the selected employee will be released from the current position within 15 days if the selection 

involves a promotion and within 30 days if no promotion is involved. 

14–11. Use of Office of Personnel Management certificates of eligibles 

FMWRC may authorize use of OPM certificates of eligibles only after the employing activity certifies that candidates 

on the FMWRC referral list do not meet the requirements of the position. The employing activity must clearly show 

that referred Army candidates do not have the experience, skill, knowledge, or ability to perform the duties of the 


111

position in an acceptable manner. Before selection is made from an OPM certificate, the CPAC will determine that the 

proposed selection from a certificate has superior qualifications to the Army candidates. 

Section V 

Training and Professional Development 


Every individual assigned to or employed in an Army MWR program will have necessary educational opportunities to 

enhance near-term qualifications, efficiency, and productivity and to ensure long-term career development and progression. 

Training and career development guidance for Career Field 51 (MWR) will be issued by FMWRC. Other policies 

governing the planning and conduct of training and career development include— 

a. AR 614–200 and applicable MOS training and development policy for military enlisted personnel. 

b. AR 690–950 for APF civilian employees. 

c. AR 215–3 for NAF civilian employees. 

14–13. Implementation 

a. Except for requirements included in established military and civilian career development programs or a career 

field Army Civilian Training, Education, and Development System (ACTEDS) plan and mandatory training prescribed 

by HQDA or IMCOM Regions, primary responsibility for MWR personnel development will rest with the local 

management, as the responsibility of all supervisors. Generally, individual plans are the responsibility of the supervisor 

or manager who writes the employee’s performance appraisal. Plans developed will be designed to complement the 

employee’s professional development goals and satisfy requirements for employment and occupational, technical, or 

career development factors. 

b. Training related management functions include, but are not necessarily limited to, the following: 

(1) Developing individual training and professional development plans, including development of individual plans in 

performance standards of managers and supervisors. 

(2) Scheduling of time and programming of resources to support plans and monitoring fulfillment. 

(3) Assigning duties and responsibilities that reinforce training received, conducting on-the-job or cross-training 

programs to supplement formal training, identifying other requirements, and providing for general, unique, or specialized 

training or experience in addition to that prescribed in plans. 

14–14. Individual training and professional development plans 

a. The period of each plan will coincide with the performance appraisal cycle, although longer term plans may be 

developed to accommodate career growth. 

b. Training plans include those that are successfully completed as a condition of employment, whether prescribed by 

DA or the employing activity or mandatory, and included in individual training plans. 

14–15. Headquarters, Department of the Army training 

a. The ACTEDS plan for Career Field 51 (MWR) is a structured, progressive, and sequential approach to employee 

development and training for entry-level through executive-management positions. It identifies training that is mission 

essential and the employee will need to support and/or achieve an acceptable performance level. Equivalency credit for 

CFS Management Course may be obtained by taking the course online at www.mwraonline.com. Contact the MWR 

Academy for details at U.S. Army MWR Academy, Poplar Run Office Park, 5285 Shawnee Road, Alexandria, VA 

22312. 

b. Equivalency credit for other MWR functional requirements is considered by FMWRC for Career Field 51 (MWR) 

on a case-by-case basis. 

c. For Equivalency Credit for Mandatory Priority II MWR Functional Training, a written request may be submitted 

to the U.S. Army MWR Academy at the address above. Requests will identify competencies (knowledge, skills, and 

abilities) obtained through work experience, formal education, correspondence study, or self-development. Request will 

include supporting documentation, such as an SF 50 (Notification of Personnel Action) or DA Form 4017 (Request for 

Personnel Action–Nonappropriated Fund Instrumentality), verifying dates of work assignment, transcripts, and description 

of formal education courses. The first-line supervisor and the garrison Director, FMWR will endorse requests. 

d. Training, which is included in job announcements for MWR management positions, is centrally funded.To apply 

for training, go to www.mwraonline.com. 


Chapter 15 

MWR Planning and Programming 

Section I 

Installation Morale, Welfare, and Recreation 5–Year Plan 


The basis for garrison MWR planning is the MWR 5-year plan. Updated annually, it is the management tool for 

justifying program elements and using resources. The 5-year plan documents— 

a. Changes needed, as determined by market research, projected funding capability, and assessment of program 

alternatives. 

b. Priorities established in the assessment process and actions needed to meet requirements. 

c. Confirmation that the DOD required revalidation of NAFIs and MWR operations complies with chapter 3. 


At a minimum, plans will integrate results of— 

a. Comprehensive review. This includes an annual comprehensive review and consideration of all planning documents 

related to MWR operations. 

b. Annual MWR needs assessment. If used, attitude and opinion surveys will be conducted in accordance with AR 

600–46 and will include— 

(1) Patron demographics: distribution of eligible population by grade, sex, age, marital status, and Family members 

of active duty military population with percentage residing on post; retired and RC service members and full-time 

DOD civilian employees residing in the local community; and other eligible patrons. 

(2) Unique considerations: availability of similar private and public sector services; population life-style traits 

(interests, use of spare time, opinions); environmental, force protection, and geographical factors that may impact 

decisions. 

(3) American lifestyle trends: regional, national, and industry data, program-specific forecasts, general market 

p r o j e c t i o n s f o r p u r c h a s i n g , l e i s u r e t i m e p a t t e r n s b y a g e g r o u p , a n d p r e d i c t e d c h a n g e s i n A m e r i c a n F a m i l y 

demographics. 

(4) Alternatives: identification of potential program or facility realignments, to include elimination, expansion, 

replacement, consolidation, or integration, and potential nontraditional methods for delivering services. In addition to 

reviewing availability of private and public sector services, contractor services will be investigated, considered, and 

used when appropriate. 

c. Priorities: community conditions and projections and the needs of services will be the evaluative basis for 

determining priorities (not the availability of resources). Program elements will be prioritized in a continuum, ranging 

from those that are given top priority to those that add variety to the overall program. A program’s impact on military 

readiness requirements and the physical and emotional needs of Soldiers will distinguish it for higher priority 

placement. Because priorities are garrison unique, garrisons may not have every authorized MWR program. 

d. Financial management strategies: APF and NAF resourcing and local pricing necessary to satisfy current commitments 

and out-year priorities established in the planning process are delineated by fiscal year, funding source, and 

application of funds. Use of APF and NAF will be justified. Funding will be integrated into the POM requirement. 

Section II 

Construction Planning 


a. One result of the garrison MWR 5-year planning process is improved and sustainable facilities. The need to 

construct new ones or close or renovate existing ones will be validated. Broad requirements will translate into specific 

facility requirements, the programming of sufficient APFs and NAFs, and the approval of projects that meet overall 

MWR needs. 

b. This section describes APF and NAF construction programs but provides details only on NAF construction. 

Regulatory and procedural references for APF programs and additional references for funding MWR construction are 

in table 15–1. 


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Table 15–1 

Reference on use of APFs, NAFs, and private funds for MWR construction 

Funding APF 1 NAF 2 

Funding limitations AR 420–1 Appendices D and E and AR 215–7 

Facilities authorized Appendix E Appendix E 

Work authorized 

MCA, AR 420–1; Operations and Maintenance, 

Army; minor construction; other, AR 

420–1 

maintenance & repair, AR 420–1 

Construction Appendix E Appendix E 

Combined funds (APF and NAF) AR 420–1 AR 420–1 

Private funds 

DFAS–IN Reg 37–1 (chap 12) and AR 

420–1 

NAFMC, AR 420–1; 

CPMC, appendixes D and E and AR 420–1 

AR 420–1 

Notes: 

1 APF and NAF. Environmental compliance is in AR 420–1; proponent is the Office of the ACSIM (OACSIM) (DAIM–FDR). 

2 NAF. Project siting is provided in AR 420–1; proponent is the OACSIM (DAIM–FD). 


a. SRM and construction requirements will be coordinated with the installation DPW. All existing and planned 

MWR facilities will be included in the installation master plan to ensure that funds are programmed for design, site 

preparation, project supervision, inspection, and acceptance. 

b. Construction to support MWR programs are funded from either APF or NAF construction programs, as specified 

in appendix E. Requirements associated with category A programs will be funded from APF construction programs; 

generally, those for category B and C programs will be funded from NAF construction programs unless otherwise 

specified in appendix E or exempted within this chapter. 

c. Construction projects jointly financed by APFs, NAFs, or private funds in any combination will be subject to the 

following: 

(1) Projects will be planned, programmed, and budgeted in both APF and NAF construction programs and submitted 

at the appropriate time within APF (MCA) and NAF cycles for the same fiscal year. 

(2) Submissions will include a full disclosure of the scope of the project and anticipated total cost. 

(3) No dual-funded project will be undertaken without prior written approval of— 

(a) The IMCOM Region for projects with construction costs up to $750,000. 

(b) The Facilities and Housing Directorate (DAIM–FDR, OACSIM) for projects with construction costs between 

$750,000 and $1.5 million. 

(c) The Office of the Deputy Assistant Secretary of the Army (Installations and Housing) for projects with 

construction costs exceeding $1.5 million. 

(4) For additional details on using NAFs for construction, see AR 420–1. 

d. NAF construction projects may receive APF funded services subject to availability of resources as authorized by 

appendix D. 

e. All NAF construction projects costing $750,000 or more must have a commercial Project Validation Assessment 

(PVA). The PVA will be contracted for and funded by FMWRC. Installations may elect to self-fund a PVA, but only 

with the stipulation that a resultant project, if approved, would be 100 percent funded by the responsive garrison. 

Funding for the PVA would be transferred to FMWRC for execution. Garrisons and IMCOM Regions will not conduct 

or contract for PVAs. Only projects approved by the Capital Investment Review Board will be advanced through the 

PVA process. 

f. The U.S. Army Corps of Engineers (USACE) AEI provide initial project planning; however, NAF construction 

plans will conform to applicable commercial building codes as appropriate depending on the type and location of the 

project. The size and square footage allocated to each project will be based on the PVA. NAF major construction 

projects will require a commercial PVA to determine facility size. The Army Criteria Tracking System and AEI will be 

used as planning guides per AR 210–20. 

g. Designs provide for multipurpose use with clearly defined functional areas wherever possible. Energy-efficient 

features will be included to the maximum practical extent; moreover, NAF facilities will comply with the Federal 

Energy Management Standard defined in EO 13123. 

h. Transfer, conversion, diversion, or disposal of real property is subject to the following: 

(1) Installations will request FMWRC (through command channels) approval of diversion or conversion of any 

facility that was constructed or converted by renovation for MWR programs, if the conversion or diversion is to a non- 

MWR 5-digit real property category code. 


(2) The garrison commander (or designee) will notify FMWRC (through command channels) of the proposed 

disposal of any MWR facility under the provisions of AR 405–90. Notification will be sent to Commander, Family and 

Morale, Welfare and Recreation Command, ATTN: IMWR–CO, 4700 King Street, Alexandria, VA 22302–4405. 

(3) Paragraph 15–4h(1) and (2) also apply to all facilities in basic real property category codes 740 (Community 

Facilities, MWR Interior) and 750 (Community Facilities, MWR Exterior) except those facilities belonging to AAFES 

(see DA Pam 415–28 for listing of real property category codes). 

15–5. Construction programs 

a. APF construction programs. APF construction projects will be funded by the MCA program for projects costing 

$750,000 or more. Construction projects costing less than or equal to $750,000 are funded from the installation’s 

operation and maintenance funds. 

b. NAF construction programs. NAF construction projects will be funded by— 

(1) The NAFMC program for— 

(a) Real property construction projects with construction costs of $750,000 or more. 

(b) Community facility construction projects listed in appendix E that require NAF construction funding. 

(2) The CPMC program for— 

(a) Any single item, group purchase, or real property construction project costing less than $750,000 and capitalized 

per DOD 7000.14, volume 13. 

(b) Any project budgeted at less than $750,000 that exceeds that amount because of foreign currency exchange 

fluctuations, in accordance with the annual budget guidance and instructions memorandum from FMWRC, is not 

considered as major construction regardless of the final amount. 

(c) Applicable elements of expense listed in appendix D. 

c. AAFES construction program. Funding will be as specified in AR 60–20 and AR 60–31. 

d. Post Restaurant Fund and Army Civilian Welfare Fund construction projects. Funding will be as specified by AR 

215–7. 

15–6. Facilities 

a. The funding source designated in appendix E will be used for each construction project, whether minor or major. 

Exceptions will be approved by OSD prior to project submission in the annual program. Exception requests will be 

forwarded through command channels to FMWRC at the address in paragraph 15–4 for submission to OSD. 

b. Community facilities normally funded from NAFs may be funded from MCA or other APFs under the following 

conditions: 

(1) All of community facility construction related to the establishment, activation, or expansion of an installation or 

relocation of facilities for the convenience of the Government. 

(2) Replacement of facilities denied by country-to-country agreements. 

(3) Restoration of facilities and improvements to facilities destroyed by acts of God, fire, or terrorism. 

(4) Antiterrorism/force protection measures required under DODI 2000.16. 

(5) To correct life safety and Americans with Disabilities Act and force protection deficiencies. 

c. Use of APF construction programs for construction of community facilities as a part of expansion plans will be 

based on actions or events that significantly increase the permanent post population. Such expansion must be the result 

of a mission change or influx of new units or systems (a 25 percent increase in a 2-year time span satisfies these 

criteria). Evolutionary growth or temporary population surges over several years will be not satisfy these criteria. 

15–7. Nonappropriated fund approval authority 

a. NAF CPMC. 

(1) The garrison commander will be the approval authority for projects less than $200,000 that have received budget 

approval by the IMCOM Region director. The IMCOM Region director is the approval authority for all CPMC projects 

$200,000 to $750,000. Funding increases for CPMC projects of up to 25 percent of cost and 10 percent of scope may 

be approved by the IMCOM Regional Director if change is necessitated by factors beyond installation control. Further 

delegation of these approval authorities is not authorized. 

(2) Annually, OSD provides to the Congress a list of all construction projects included in the FY CPMC program. 

To ensure all projects are reported to OSD, FMWRC requires an information copy of the DD Form 1391 (Military 

Construction Project Data) upon approval by the IMCOM Region director. FMWRC will then forward the copy to the 

Deputy Assistant Secretary of Defense (Installations and Housing). 

(3) Any subsequent additions, deletions, deferments, or modifications on CPMC projects will be reported to 

FMWRC. 

(4) Incremental or phased construction projects will be approved based on the final total cost. For example, a phased 

project of 3 years at $300,000 per year is approved as a NAFMC project for a total of $900,000 before starting 

construction on any phase. 


115

. NAFMC program process. 

(1) All Army-approved NAFMC projects ($750,000 and above) will be reported in the annual Nonappropriated- 

Funded Construction Projects Report to Congress, per AR 420–1. No contract that obligates construction monies will 

be awarded on any NAFMC project until Congress approves the project. 

(2) NAFMC programming and construction is a process from guidance to construction completion, consisting of 

programming guidance, budget/design, execution and sustainment. It differs from the MCA program process by 

allowing the guidance year and budget/design year to overlap. Elements of the process are— 

(a) Programming guidance phase. The fiscal year in which planning begins is the programming guidance phase. 

Guidance (issued second quarter) will include general instructions, current policy, and funding guidance. IMCOM 

Regions will refine MWR 5-year plans, prepare priorities, and submit annual programs. Project documents listed in 

paragraph 15–9a will be due at FMWRC by 1 May (or as specified in annual guidance issued by FMWRC). 

(b) Budget/design phase. After the programming guidance phase (the period during which PVAs are completed), the 

design process will begin\s, and projects will be reviewed by the Capital Investment Review Board (CIRB) and MWR 

BOD (see app B). The Assistant Secretary of the Army (Installations and Environment) (ASA(I&E)) and ASA(M&RA) 

will review and approve for submission to OSD and Congress. Upon approval, FMWRC will obtain design release 

from the ASA(I&E) and proceed with design. 

(c) Execution phase. This phase will start with congressional release. Upon release from Congress, design will be 

completed and the project advertised. The contract will then be awarded for construction and administered through 

beneficial occupancy date. Contracts that are not awarded within 2 years of congressional release will be either 

resubmitted the following year or canceled. 

15–8. Review for funding 

a. The AMWRF will pay 100 percent of total project cost (TPC) for approved projects. TPC includes construction 

cost, design, and furniture, fixtures, and equipment. Construction cost is the programmed amount (rounded) on DD 

Form 1391 and includes installed equipment; contingency; and supervision, inspection, and overhead. Design cost will 

be 10 percent of the programmed amount and will include engineering. 

b. Garrisons will program for and fund— 

(1) All supplies, expendables, and related opening costs. 

(2) All environmental requirements (including Environmental Assessments, Environmental Impact Studies, and 

Hazardous Waste/Unexploded Ordinance Surveys and Removal) are provided by the garrison. These requirements will 

be initiated by the garrison at the appropriate time to ensure resolution of deficiencies and final studies before 

advertising the project for construction. Siting, as defined in AR 420–1, will be used when selecting potential sites for 

NAFMC projects. Demolition costs will be budgeted separately by the garrison; they are not a NAFMC requirement 

unless criteria defined in AR 420–1 are exceeded. 

c. Prior to congressional release— 

(1) CIRB-approved projects will be referred to the MWR BOD for approval. (Funding supported by the MWR BOD 

review will be equal to the TPC.) 

(2) Design funds will be released for projects in the current budget/design phase, based on availability of AMWRF 

resources. 

(3) FMWRC will submit MWR BOD endorsed projects to the USACE for consolidation with AAFES projects, 

which will result in the Army’s annual Nonappropriated-Funded Construction Projects Report. 

(4) The OACSIM will submit the report through the ASA(M&RA) and ASA(I&E) to OSD for forwarding to 

Congress. 

d. Following congressional release— 

(1) The Commander, FMWRC, will approve and authorize AMWRF funding increases of up to 25 percent of cost 

and 10 percent of scope for CPMC and NAFMC projects if change is necessitated by factors beyond garrison control. 

Projects with increases exceeding 25 percent of cost or 10 percent of scope will be resubmitted to the MWR BOD and 

Congress. 

(2) Elective changes not specified in the CIRB approved DD 1391 will be funded from local resources to include 

design and construction costs. For these changes— 

(a) The garrison will submit a change request to its IMCOM Region, fully describing the change with a total cost 

estimate (design, construction costs, contingencies, and overhead fees). 

(b) If the IMCOM Region concurs, the request will be submitted to a CCB chaired by a FMWRC project manager, 

with representatives from the IMCOM Region’s office and the executive agent’s technical representative. 

(c) The CCB will review cost, scheduling, and scope impacts, and make a recommendation to the IMCOM Region. 

If the IMCOM Region approves the recommendation and funds the total cost of changes, the FMWRC project manager 

will inform the contracting officer to proceed, pending required approvals. If approved, the IMCOM Region will 

provide funds to FMWRC. 


(d) Upon receipt of funds, FMWRC will inform the contracting officer to initiate negotiations concerning the change 

with the contractor. 

(e) The funding liability of the garrison will be adjusted at the end of negotiations. If additional funds are required, 

they will be certified as available before the contract modification is signed. If costs are reduced, excess funding will 

be returned to the garrison. 

15–9. Project documentation 

a. NAF major construction projects. DD Form 1391, as specified in AR 420–1, will be submitted electronically via 

the DD 1391 processor. NAFMC project documentation will generally be the same as MCA project documentation but 

include the following additional requirements: 

(1) A return on investment analysis vice the MCA DD 1391 economic analysis, prepared by the PVA contractor per 

paragraph 15–11, will be included in the PVA report. 

(2) The Determination and Certification of Actual Need, Parts I and II, will be entered in Tab C, Miscellaneous 

Support Data of the DD Form 1391, per AR 420–1. 

b. NAF minor construction projects. 

(1) Electronically submitted DD Form 1391, to include sections 1–4. 

(2) Return on investment (ROI) analysis. 

(3) DOD NAF construction program garrison/AAFES commander certification. 

c. Dual-funded projects. Documentation required by AR 420–1 will include detailed justification and differentiate 

between portions of the facility to be funded by APFs and NAFs. Funding will comply with appendix E. 

d. Phased projects. Documentation for projects involving phased construction will provide full justification and 

description of scope, cost, and timing of all increments. Documentation will be submitted during the initial phase. 

15–10. Sustainment, restoration, and modernization 

a. See appendix D for the funding source for MWR facility SRM. 

b. When the use of NAFs in lieu of authorized APFs can be justified in accordance with the policy in chapter 5, 

Section III, local NAFs may be used. The maintenance and repair part of SRM will not be funded from the Army 

MWR Fund. 

(1) Approval authority for NAF SRM projects, project review procedures, dollar levels of approval, and documentation 

requirements are contained in AR 420–1. DD Form 1391 submitted for NAF SRM will contain a justification 

statement on the use of NAFs where APFs are authorized, signed by the garrison commander. 

(2) Work classification disputes and issues will be referred to the Deputy Chief of Staff for Installation Management, 

ATTN: DAIM–FDF–ER, 600 Army Pentagon, Washington, DC 20310–0600. 

(3) Expenditure of NAFs will be only for authorized MWR functions in accordance with this regulation. 

(4) SRM will not require congressional reporting. 

15–11. Return on investment analysis 

a. ROI analysis is a comparison of factors to develop projected cash flow requirements and to project financial 

impacts of a planned NAFMC project. 

b. ROI analyses will be used by— 

(1) Garrisons to assess the financial impact of planned projects, compare alternatives, and develop plans and 

budgets. 

(2) IMCOM Regions to assess the relative merits of NAFMC projects submitted by the same garrison and similar 

projects submitted by different garrisons. 

(3) The MWR BOD to evaluate project funding capabilities. 

c. Use of ROI analyses at any level to compare competing projects will be limited to comparison of similar projects. 

Category C MWR projects will not be compared to nonincome generating projects. (This could limit the construction 

program to businesslike operations such as clubs and bowling centers, excluding arts and crafts centers, recreation 

areas, and other facilities from funding consideration.) 

d. Supported by the MWR 5-year plan, analyses prepared for projects of nonincome producing programs will 

include as much supplemental information as needed to show a clear or urgent need and the impact on the installation 

and its population if a project is not approved or funded. 

(1) The postconstruction validation review (PVR) is intended to provide accountability for information provided in 

the PVA for approved NAF construction projects. The intent is to facilitate the comparison of actual financial 

performance, which was forecast for the project in the PVA study. 

(2) The financial performance will be gauged by measurements such as revenue, costs, net income before depreciation, 

and appropriated fund support. In assuring successful financial performance, management will be attentive to 

realistic expectations for the project, early warning signs of deviations, preventative and/or corrective actions and 

assurance of successful project realization. 


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(3) IMCOM Regions will receive annual reporting guidance. 

(4) The results of the PVA will be presented to the CIRB for review and discussion. 

e. Program definitions are as follows: 

(1) PVA: A contractor prepared study to determine the feasibility and cost of a proposed NAFMC project. 

(2) TPC: The total cash outlay required to implement a project. It will include, but is not limited to, design, 

supervision and administration, construction, and furniture, fixtures, and equipment. 

(3) DD Form 1391: A military construction project data form used for programming, budgeting, and execution. 

(4) Operating cash flows: The resulting net cash inflow or outflow generated by a project. Net income before 

depreciation (NIBD) is a loose approximation of net cash flow resulting from operations. 

(5) Discounted cash flow: The adjustment of project cost and operating cash flows to reflect the time value of 

money. 

(6) Discount rate: The percentage by which cash flow is adjusted to estimate the current financial benefits or costs 

of a project. Also known as the “hurdle” rate. 

(7) Project life: The projected number of years that a facility is expected to operate. For purposes of this regulation, 

project life is assumed to be 30 years. 

(8) Present value: The value of future funds expressed in terms of current dollars. Present value tables are available 

in most financial management texts. 

(9) Net present value: The result after discounted cash outflows are subtracted from discounted cash inflows. 

(a) If net present value is positive, the planned project will provide greater financial benefit to the fund than would 

be gained by investing the project cost at the discount rate. 

(b) If net present value is negative, investing the project cost at the discount rate will provide greater financial 

benefit to the fund than would be gained by building the planned project. 

(c) If net present value is zero, each alternative (investing or building) will be equal. 

(10) PVR: An analysis of ROI after 1 year of operation versus return on projected ROI provided by the PVA 

contractor. 

f. An Excel template with instructions for completing the NAFMC financial review and analysis is available from 

FMWRC and can be accessed through the Army MWR home page, www.armymwr.com. 

15–12. Public-private venture projects 

a. PPV projects are another means of providing MWR facilities that are unattainable through traditional funding 

sources. PPV projects are private-sector built, operated, and maintained facilities or services on Government-owned/ 

leased real estate in exchange for discounted fees and/or service at an equitable return to the garrison MWR operating 

entity. PPV projects deliver morale-enhancing programs with private sector expertise while avoiding capital investment 

costs and simultaneously producing cash dividends directly to the garrison MWR operating entity. 

b. Per DODI 1015.13, potential PPV projects are limited to category C programs listed in figure 3–1 of this 

regulation. 

c. FMWRC is the sole Army agency authorized to negotiate and award contracts for PPV projects. If an garrison 

wants to pursue privatization of a project for which AAFES has primacy, the garrison must obtain HQ AAFES 

approval through the installation AAFES general manager to AAFES headquarters at Army and Air Force Exchange 

Service, ATTN: PL–P, P.O. Box 660202, Dallas, TX 75266–0202. Garrisons may submit PPV project requests via 

memorandum through their IMCOM Region director to FMWRC to the Commander, Family and Morale, Welfare and 

Recreation Command, ATTN: IMWR–COA, 4700 King Street, Alexandria, VA 22302–4403, along with the following 

information: 

(1) Broad scope of the project. An example is a Family entertainment center (to include a bowling center, sports bar, 

and video arcade for an indoor facility; or miniature golf, water slide/swimming pool, and batting cages, for an outdoor 

facility). The developer will define a more viable scope, with agreement by the garrison during business plan 

development. 

(2) Brief summary of why the project is required. 

(3) Project point of contact name, telephone number, and e-mail. 

d. Following the initial intent letter, garrisons must complete a submission package that includes— 

(1) Local congressional and community support for the project. Local congressional delegation support as well as 

the support of the local community will be ensured by obtaining letters from local government officials (mayor and city 

council), the Chamber of Commerce, or other appropriate community/business leaders, indicating they have no 

objections to a privately developed project. Garrisions must also contact the local congressional delegate for the area to 

garner support for the project and obtain written notification of support. 

(2) Report of availability (ROA). The original ROA will be forwarded through the IMCOM Region director and 

command channels to the Office of the Assistant Chief of Staff for Installation Management (DAIM–MD). Development 

of the ROA is the responsibility of the garrison, to include any applicable costs. The ROA is necessary in order to 


out grant the real estate to a developer. Following the out granting process in AR 405–80, FMWRC will request 

USACE to develop an estimate of value for the property. 

(3) Additional information. The following information will be attached as separate enclosures to the packet. The 

majority of this information will be included in the request for proposal to provide prospective developers with an 

understanding of the installation and the proposed project: 

(a) An executive summary description of the installation. 

(b) A copy of the approved master plan that shows the site location. 

(c) Basic information site maps (for example, topography, utilities) and approximate area size. 

(d) A copy of the installation design guide executive summary. 

(e) Copy of the HQ AAFES concurrence (see paragraph 15–12c), if applicable. 

(f) Demographic information to include military, Family members, retirees, civilians, and the local civilian community 

population. 

(g) Name of the county in which the installation is located. 

(h) Authorized patrons of the facility. Include authorized users (for example, military and reserve members, retired 

military, DOD civilians, and Family members of the above). If the garrison plans to open the facility to the public, then 

they must obtain the necessary approvals (see table 7–1). 

(i) Details of any utilities to be provided and, if so, which ones and what rates will be charged to the developer. 

(j) Any police/security and fire protection services to be provided by the local community or the installation and 

whether any costs are involved. 

(k) If a proposed PPV is to replace or supplement an existing facility, a statement explaining why a new facility is 

needed and information on usage of the existing facility; if PPV is for a revenue-generating facility, current financial 

statements, patrons, and other pertinent information will be included. 

(l) Any other information that may be relevant to the project and of interest to potential developers. 

(m) Points of contact for both the garrison and the IMCOM Region. 

(n) Any known local companies or other sources that may be interested in the project. 

(o) Names and telephone numbers of local community newspapers for solicitation advertisement. 

(p) Any additions or deletions to the requirements above reference the PPV submission process will be issued 

separately by FMWRC. 

e. FMWRC will facilitate the PPV process, including— 

(1) Obtaining all required HQDA, OSD, and Congressional approvals for use of the land and seeking private sector 

interest. 

(2) Soliciting private sector interest through issuance of a request for proposal. 

(3) Developing contractual agreements with an experienced provider in coordination with the garrison. 

(4) Continuing review of the contractor’s operational performance to assure the garrison receives its negotiated 

return. 

Chapter 16 

Financial Management 

Section I 

Administration 


Financial management encompasses planning, control, evaluation, and accountability. Primary areas include safeguarding 

APF and NAF assets through proper use of management controls, maximizing use of capital through efficient cash 

and capital budgeting, and identifying operating opportunities and problems through the preparation and use of budgets 

and financial analyses. Civilian NAFIs (welfare funds and post restaurant funds) and Army Lodging Program NAFIs 

are not subject to the provisions of this chapter unless stated otherwise in this and other governing guidance. Questions 

and requests for exception to or deviations from requirements in this chapter are submitted through the applicable 

IMCOM Region and chain of command to FMWRC to the Commander, Family and Morale, Welfare and Recreation 

Command, ATTN: IMWR–FM, 4700 King Street, Alexandria, VA 22302–4406. 

16–2. Financial management responsibility 

a. The installation director of resource management manages APFs. 

b. The Director, FMWR will controls all garrison NAFs, to include UFM and being the entity administrator for the 

garrison MWR operating entity and the point of coordination for NAF financial management for supplemental mission 


119

funds and other MWR funds on the garrison. This is accomplished through the MWR chief, financial management 

division (FMD) or equivalent and garrison (or centralized) CAO. 

c. All employees have fiduciary responsibility for properly using NAF and APF and preventing and reporting 

suspected waste, loss, or unauthorized use of NAFs (see chap 4, sec II). 

16–3. Successor-in-interest 

The successor-in-interest NAFI may provide financial support and assistance to specified or assigned NAFIs/entities, as 

required, and will assume all outstanding liabilities or receive the residual assets of NAFIs/entities following their 

dissolution. 

a. The IMCOM Region director, through the region single MWR fund, is the successor-in-interest to all Regionlevel 

NAFIs and to all garrison MWR operating entities within the IMCOM Region. When a Region single MWR fund 

does not exist or IMCOM Region resources are not adequate, the IMCOM Region director may cross-level funds 

within the IMCOM Region and among other IMCOM Regions with concurrence from the HQDA Commander, 

IMCOM. 

b. The ACWF is the successor-in-interest to all installation Civilian Post Restaurant Funds and Civilian Welfare 

Funds (see AR 215–7). 

c. The Hospitality Management Fund is the successor-in-interest to Edelweiss Lodge and Resort, Dragon Hill 

Lodge, ARMP Operations, the Hale Koa Hotel, and AFRC–Orlando (Shades of Green) NAFIs. 

d. The AMWRF is the successor-in-interest to— 

(1) All IMCOM Region single MWR funds, only when all IMCOM Region single MWR funds are insolvent. 

(2) HQDA NAFIs, joint services or DOD NAFIs when specifically designated as executive agent by DOD issuance, 

and joint Services or DOD NAFIs established pursuant to Army policy where the AMWRF has been specifically 

designated as the successor-in-interest. 

Section II 

Cash Management 

16–4. Funding standards 

The DOD basic standard, regardless of category, is to use APFs to fund 100 percent of authorized expenditures. Total 

expenditures for measuring compliance with these standards will be computed by adding total APF support (both direct 

and indirect, not including military construction) to the total NAF support (total expenses less cost of goods sold and 

depreciation). To obtain APF support as a percent of total expenditures, the amount of APF support is divided by the 

total of APF support plus NAF support. 

a. Category A. Category A programs are entitled to the highest degree of APF support, and virtually all expenses 

should be supported with APFs. However, Category A programs at garrison level are frequently collocated with other 

minor functions (incidental resale/revenue producing activities) that are not authorized APF support. These functions 

are considered category C for funding purposes and should be reported in that category if their size is significant or 

they are not integral to program delivery. In many cases, their small size makes it impractical to break them out and 

report them separately from their parent category A program. For these reasons, the DOD APF standard for category A 

is a minimum of 85 percent of total expenditures. 

b. Category B. Category B programs also frequently include incidental resale/revenue-producing activities integral to 

the category B program. As in category A, these functions are considered category C for funding purposes and should 

be reported in that category if their size is significant or they are not integral to program delivery. The DOD standard 

for APF funding is a minimum of 65 percent of the total expenditures. 

c. Category C. APF support to category C is limited to that support specified in appendix D. 

16–5. Total cash management 

All Army NAFIs (includes supplemental mission NAFIs) and garrison MWR operating entities are required to generate 

sufficient cash and a positive net income before depreciation of at least the minimum level established by the MWR 

BOD which, when coupled with existing funds, will permit the NAFI/entity to fund all of its own requirements, both 

operating and capital, with the exception of NAF major construction funded by the AMWRF. Long-term requirements 

must be fully covered by adequate cash flow. Each NAFI/entity must produce adequate revenues to cover operating 

and capital requirements over the short and long term while maintaining a cash-to-debt ratio between 1:1 and 2:1. 

16–6. Army simplified dividend distribution 

Garrison MWR funds will receive locally generated income from AAFES operated package beverage stores and 

telephone contract profits as earned, plus a percentage of AAFES revenue generated on the installation. IMCOM 

Regions and garrisons will be notified in writing annually of the projected percentage for revenue sharing with AAFES. 

The IMCOM Regions will determine how the monthly ASD distribution is allocated to their garrisons. 


16–7. Army recreation machine program distribution 

a. Net income from the ARMP will be distributed directly to the ARM Trust. ARM profits are split between the 

ARM Trust Fund and the garrison or IMCOM Region. IMCOM Regions or garrisons will be notified of their 

proportion of ARM profit distributions. ARM profit distributions are based on a pro-rata share of profits for the 

preceding month. The IMCOM Regions will determine how the monthly distributions are allocated to their garrisons. 

b. Overseas MWR programs that house ARMP provided recreation machines will be reimbursed for ARMP related 

operating expenses at a specified percentage. 

16–8. Army Morale, Welfare, and Recreation Fund 

Resources of the AMWRF are derived primarily from dividends paid from the AAFES and interest earned from the 

temporary investment of funds that have been programmed but not yet spent. 

16–9. Collections and control of receivables 

a. The systematic and effective control of accounts receivable is an essential part of financial management. Fund 

manager/entity administrators will maintain strict control of receivables and seek advice from the installation SJA, 

where necessary, to collect delinquent accounts. 

b. Debt collection procedures must comply with Public Law 97–365, 37 USC 1007, and all the provisions of P.L. 

97–365 and P.L. 104–134. Every attempt must be made to inform debtors of outstanding debts before adverse actions 

are taken. The following procedures apply: 

(1) Attempt to locate debtors through the local military finance or personnel offices. 

(2) Send a certified return receipt requested letter similar to the example provided at the MWR Web site, www.armymwr.org/home/Show_file.asp?fileID=515. 

The letter will describe the debt, request payment, and offer a repayment 

plan and an opportunity to contest the debt. The letter will serve as proof of an attempt to contact the debtor. 

(3) If there is no response, seek advice from the installation SJA. Assistance may also be obtained from FMWRC 

Banking and Investment Office at the address in paragraph 16–1. 

c. Confidentiality and thorough record keeping are required to ensure individual rights to privacy. Procedures must 

be in place precluding unauthorized disclosure or use. Access to individual accounts will be limited to the minimum 

number of employees necessary, and records must be secured during nonduty hours. 

d. To keep the claim against the debt valid, debt collection records should be kept for a period of not fewer than 10 

years or the life of the debt, even if debts are written off. 

16–10. Loans, advances, and grants 

a. NAFIs/entities may neither negotiate for a commercial loan nor obtain a loan from private or commercial sources 

(includes commercial financing such as by Capital Lease) unless otherwise authorized by FMWRC, Chief Financial 

Management Officer. 

b. NAF assets will not be pledged as collateral for obligations due or payable to private or commercial sources. 

c. Loans, advances, and grants between installation Army NAFIs or garrison MWR operating entities will be 

approved in advance by the applicable IMCOM Region. Written notice with supporting justification will be forwarded 

to FMWRC at the address in paragraph 16–1 immediately upon approval. 

d. Subject to advance approval by the Commanding General, FMWRC, the Army Banking and Investment Fund 

may lend money from the aggregate Army field NAFI/entity balances to another centrally administered DA NAFI. Any 

such loan activity will be reported to the MWR BOD not later than the next BOD cycle. 

Section III 

Capital Expenditures 

16–11. Nonappropriated fund major construction financing 

a. AMWRF resources are devoted primarily to funding NAFMC and other program investments. 

b. Any garrison entity or IMCOM Region contribution toward a NAFMC project will be withdrawn from the 

garrison entity or IMCOM Region bank account as bills on the project are paid. 

16–12. Nonappropriated fund capital purchases and minor construction financing 

a. All CPMC items or projects will be financed from local garrison entity and/or IMCOM Region resources, except 

for the furniture, fixtures, and equipment required for a NAFMC project as approved by the CIRB. Furniture, fixtures, 

and equipment, as detailed in the PVA and at a cost not to exceed that approved by the CIRB, will be paid for by the 

AMWRF as part of the total project cost. 

b. CPMC limitation, if any, will be prescribed by the MWR BOD. 

c. Capitalization criteria for capital purchases, NAFMC, minor construction, and sustainment, restoration, and 

modernization (SRM) are outlined in DOD 7000.14–R. Updated guidance, including clarifications, can be found at the 


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Army MWR Web site, www.armymwr.army.mil, under Financial Management, DFAS, NAF Accounting Guidance, 

and/or in the heading, NAF Financial Management Guidance. 

d. CPMC line item descriptions should include the item or project, program code, and quantity, as applicable. 

Section IV 

Budgeting 

16–13. Budget preparation 

Annual budgets prepared for all Army NAFIs/entities (except civilian MWR funds (see AR 215–7)) will comply with 

specific instructions and procedures issued annually by FMWRC. Each garrison MWR operating entity budget is 

submitted with the 5-year MWR plan (see chap 15) to the applicable IMCOM Region. Budgets will include the 

following separate elements: 

a. The garrison commander’s narrative that includes, at a minimum— 

(1) A description of current operations, including goals and objectives reflected in the budget. 

(2) Significant changes from the previous year approved budget and actual operations. 

b. Specific submission requirements are contained in the annual NAF budget guidance. 

c. The following forms are used in the budget process and are prepared using the Financial Management Budget 

System only. These forms are assigned RCS CSGPA 1716. 

(1) DA Form 5318 (FY NAF Annual Operating Budget). 

(2) DA Form 5320–1 (APF/NAF Five-Year Financial Plan). 

(3) DA Form 5321 (Capital Purchases, Maintenance and Repair, and Minor Construction Budget (Includes Parts 

A–D)). 

(4) DA Form 5322 (Monthly Cash Projection Schedule) (optional use). 

(5) DA Form 5911–E (Five-Year Cash Projection Schedule). 

(6) DA Form 5911–2 (NAF Major Construction Schedule). 

16–14. Budget approval 

IMCOM Regions will review and approve garrison budgets and will submit two separate budget packages (one 

consolidated budget based on MWR “Fund 1” only and one consolidated budget based on supplemental mission funds 

only) to FMWRC in accordance with the specific instructions contained in the annual NAFI/entity financial management 

operating (NAF budget) guidance. 

16–15. Budget revisions 

Budget revision is not a substitute for managing operations to achieve approved budget goals. However, when 

circumstances cause significant budget variances, budgets may be revised to reflect the new circumstances. Only future 

data may be revised and the IMCOM Region consolidated budget must be revised accordingly and be submitted to 

FMWRC. Pledged NAFMC project funding commitments presented during the CIRB generally will not be decreased 

without approval of the MWR BOD. Failure to fulfill NAFMC commitments normally results in cancellation of 

NAFMC projects. 

Section V 

Nonappropriated Fund Instrumentality/Entity Banking and Investments 

16–16. Concept 

The ABIF supports minimizing levels of cash on deposit in local banks and accumulating available cash Armywide in 

a designated central bank for investment in Government or Government backed obligations. Investment income earned 

will be distributed proportionally among and credited to the accounts of participating NAFIs/entities. 

16–17. Cash on hand 

Cash amounts retained locally will be limited to the minimum levels necessary to support change funds, petty cash 

funds, check cashing funds, compensating balances required by local banks, and similar functions. All amounts in 

excess of immediate cash requirements will be deposited daily in the servicing local bank. 

16–18. Local banking 

a. Within CONUS, Hawaii, Alaska, Puerto Rico, and the Virgin Islands, NAFI/entity cash assets will be deposited 

only in banks or other financial institutions designated by the Treasury Department as depositories and fiscal agents of 

the Government. This designation will enable financial institutions to pledge collateral to secure public funds, which 

for this purpose includes NAFs. Eligible institutions are— 

(1) All banks and savings and loan associations insured by the Federal Deposit Insurance Corporation (FDIC). 

(2) All credit unions insured by the National Credit Union Administration (NCUA). 


. In overseas areas— 

(1) NAFIs/entities will maintain a U.S. dollar account at available military banking facilities or any local branch of 

any U.S. bank that meets the eligibility criteria for CONUS banks. A military banking facility, governed by DFAS–IN 

Regulation 37–1, chapter 12, is a branch of a U.S. bank that operates on a U.S. controlled installation under a U.S. 

Government contract. All U.S. dollar deposits at military banking facilities are FDIC insured. 

(2) NAFIs/entities may maintain a local currency account in a U.S.-owned or -controlled bank, provided each 

account offers a reasonable degree of liquidity and security. Amounts on deposit will be limited to the minimum 

necessary for— 

(a) Projected operational requirements for a period not to exceed 30 days. 

(b) Severance pay and other liability reserves. 

c. The primary purpose of local bank accounts is to facilitate transferring cash to the designated central bank. 

Obligations will be paid from the NAFI’s/entity’s central bank account(s). 

d. Local banking transactions are consistent with the following principles: 

(1) Cash maintained on deposit will be limited to the level necessary to minimize or preclude service charges, or the 

minimum level specified in the local banking agreement. 

(2) Current obligations will be not paid from local bank accounts. 

(3) Cash amounts in excess of minimum balance requirements will be transferred to the designated central bank 

daily. 

e. Garrison commanders may authorize supplemental mission fund managers/MWR operating entity administrators 

to enter into local banking agreements for services. Local banking services will be obtained using NAF contracting 

procedures unless— 

(1) Only over-the-counter deposit and currency services are required, or 

(2) Service is provided by a bank under contract with FMWRC or DOD. 

f. Local bank accounts will be properly established to ensure full insurance protection. A letter of authorization 

similar to the example provided in figure 16–1 must be on file with the bank. It will specify that withdrawals are 

limited to those replenishing change funds, and transfers to the central bank. Signature cards will be kept current. 


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Figure 16–1. Sample local banking letter of authorization 

g. Service charges imposed by local banks will be shown in monthly account analyses. Servicing CAOs will send a 

copy of each March and September analysis for each supported NAFI/entity to FMWRC at the address in paragraph 

16–1, to arrive not later than 15 May and 15 November. FMWRC will use monthly bank account analyses to study 

trends and provide a basis for updating cash management strategies and procedures. 

h. The number of local bank accounts established by a single NAFI/entity will be kept at a minimum (generally, no 

more than one) to simplify management and avoid unnecessary service charges. Accounts are established only when 

supported by a cost-benefit analysis. 

i. Local banking agreements are periodically reviewed, at least annually, to ensure that accounts are properly 

established and funds properly protected. 

16–19. Uninsured deposits 

a. Accounts established at local banks or credit unions in CONUS, Alaska, Hawaii, Puerto Rico, and the Virgin 

Islands are insured up to $100,000 by the FDIC and NCUA, respectively. Accounts established at military banking 

facilities in overseas areas are insured up to $100,000 by the FDIC. 

b. U.S. dollar and foreign currency accounts in overseas banks, even if U.S. owned or controlled, are generally not 

insured. 

c. Amounts in excess of $100,000 may be accepted by U.S. banks and overseas military banking facilities that meet 


the criteria explained in this chapter, when authorized by the Treasury Department, provided that collateral in the form 

of securities is deposited with the servicing Federal Reserve Bank to protect uninsured amounts. 

d. FMWRC will advise the Treasury Department of the amount of collateral required for each bank for uninsured 

NAF deposits. Collateral is reserved at the Federal Reserve Bank on behalf of all NAFIs/entities using that bank. 

e. CAOs will maintain a record of all local bank accounts used by supported NAFIs/entities and the amount of 

collateral reserved. 

f. NAFIs/entities may attempt to obtain collateral for uninsured U.S. dollar and foreign currency deposits in overseas 

banks, except military banking facilities. Acceptable forms of collateral, in order of preference, are— 

(1) U.S. Government securities deposited with the U.S. correspondent bank of the local national bank. 

(2) U.S. dollar denominated securities of the host country or a mutually agreed upon third country. 

(3) Foreign currency denominated securities of the host country or a mutually agreed upon third country. 

16–20. Reporting of local bank deposits 

a. Each NAFI/entity account maintained in local banks will be reported to FMWRC at least twice a year on DA 

Form 3830 (Nonappropriated Fund Bank Balances). It is exempt from reports control requirements by AR 335–15. 

Reports will be used to verify that collateral is already pledged against uninsured balances or to take action to obtain 

collateral as needed. 

b. Required reporting includes the following: 

(1) Regular reports are prepared as of 31 March and 30 September of each year and sent to FMWRC at the address 

in paragraph 16–1, to arrive by 15 May and 15 November. 

(2) Special reports will be submitted any time that collateral requirements exceed current allocations and whenever a 

local bank account is closed. Reports for closed accounts will show zero balances and are used to release previously 

pledged collateral. 

c. Reports are prepared and submitted by— 

(1) CAOs, for all supported NAFIs/entities. 

(2) Fund managers for NAFIs/entity administrators for entities not supported by a CAO. 

(3) FMWRC, for HQDA NAFIs, and for balances maintained in the central bank. 

d. The estimated balance will be based on the next 6-month period and is computed as follows: 

(1) For single accounts, the highest estimated balance for that account. 

(2) For NAFIs/entities with multiple accounts, the combined highest estimated balance for all accounts. 

(3) For single accounts shared by two or more NAFIs/entities, the highest estimated balance of the account as a 

whole, rather than the pro rata balances of each participating NAFI/entity. 

e. FMWRC will verify that collateral is already pledged or will take action to obtain collateral as needed for 

accounts showing balances over $100,000. Commanders and other agencies will be advised of adjustments. 

f. Deposits in local banks that exceed protected levels are prohibited. Funds exceeding insured or collateralized 

levels will be transferred to the central bank. 

16–21. Central banking 

a. The term “central bank,” as used in this regulation, refers to an established U.S. commercial bank that is 

contracted by FMWRC. Daily operational requirements and approved programmed obligations will be paid with 

withdrawals from central bank accounts. The ABIF will invest all funds not otherwise lent to a centrally administered 

DA NAFI under the authority provided at paragraph 16–10d. 

b. An established NAFI/entity will be automatically enrolled in the central banking program. 

c. Signature cards and a letter of authorization will be completed by NAFI fund managers/entity administrators and 

returned to the ABIF. The ABIF will retain a copy of the latest signature card. If there is a change of signature 

authority, new cards will be prepared and forwarded to the ABIF. 

d. Current obligations will be paid by writing checks on the central bank account. Countersignatures will be used 

when separation of duties is not possible and the amount of the check exceeds the signer’s fidelity bond limit. Bonding 

requirements are explained in chapter 19. 

16–22. Army Banking and Investment Fund investments 

a. The ABIF will invest deposits and pay interest earned, plus capital gains realized, less administrative expenses 

and any realized losses, to each NAFI/entity account monthly. The ABIF will guarantee the deposited principal. 

b. ABIF investments will be limited to— 

(1) Obligations backed by the full faith and credit of the United States, such as Treasury bills and notes. This 

c a t e g o r y i n c l u d e s i n s t r u m e n t s i s s u e d b y G o v e r n m e n t a g e n c i e s t h a t a r e e x p l i c i t l y g u a r a n t e e d b y t h e F e d e r a l 

Government. 

(2) Obligations of Federal agencies, including but not restricted to The Federal Home Loan Banks, The Federal 

Home Loan Mortgage Corporation, and the Federal National Mortgage Association. 


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(3) Certificates of deposit insured by the FDIC or NCUA and fully collateralized by U.S. Government securities for 

amounts not so insured. 

(4) Eurodollar deposits in foreign banks that are collateralized by U.S. Government securities. 

(5) Repurchase and reverse repurchase agreements are authorized only under the following conditions: 

(a) With primary dealers in Government securities designated by the Federal Reserve Bank of New York. 

(b) Against actual delivery of U.S. Government securities to the ABIF custodial bank. 

c. No investments in any type of commercial debt, corporate bonds, stocks, and stock options are allowed. 

d. Only FMWRC may hedge NAF obligations payable in foreign currency against the risk of currency fluctuations 

by using forward contracts or options (hedging against APF obligations is prohibited). The following will apply to 

hedging contracts executed by FMWRC: 

(1) IMCOM Regions and FMWRC elements may request contracts or options to fix exchange rates for specific 

obligations payable in foreign currency. Each request must identify— 

(a) The type of obligation, such as construction or local national payroll. 

(b) The date payable. 

(c) The total amount of the obligation. 

(2) Speculation, or the appearance of speculation, in foreign currency transactions is prohibited. 

e. Assets of the Army NAF Retirement Plan Trust will be invested separately by its trustees under the provisions of 

the Trust. 

f. Trustees of the U.S. Army Nonappropriated Fund Employee 401(k) Savings Plan Trust will select and monitor 

investment managers for the plan’s investment options. 

16–23. Army Recreation Machine Program 

a. FMWRC administers the ARMP Operations Fund to support routine ARMP operations. 

b. The Army Recreation Machine Trust Fund (ARMTF) is administered by FMWRC, which will administer, 

allocate, and distribute ARMP profits held in trust on behalf of the AMWRF and participating overseas IMCOM 

Region and garrison MWR entities, as explained elsewhere in this chapter. Distributions will be made based on fund 

allocations determined by IMCOM Regions. 

c. FMWRC will maintain separate ARMP Operations Fund and ARMTF accounts with the ABIF. 

d. ARMP field offices will establish local ARMP cash collection accounts similar to local MWR program bank 

accounts described in this section. ARMP cash collections will be initially deposited in the local ARMP account. 

e. Funds will be periodically transferred between accounts as follows: 

(1) ARMP field offices will transfer all funds not needed to sustain local operations to the ARMP Operations Fund. 

(2) The ARMP Operations Fund will transfer all funds not needed to sustain Armywide ARMP operations and 

capital projects to the ARMTF. 

f. Interest earned by the ARMP Operations Fund and ARMTF is considered income and included in determining 

allocations. 

g. Funds available in the ARMTF may be invested by FMWRC in accordance with this section. 

Section VI 

Reports 

16–24. Introduction 

a. This section establishes requirements and provides policy for MWR financial and personnel management reports. 

All are exempt from reports control requirements under AR 335–15. 

b. The installation DRM will gather and compile information and submit required reports per this regulation and 

DFAS–IN Manual 37–100. The Military Personnel Division, CPAC, or the Director, FMWR will provide personnelrelated 

information to the DRM per local reporting procedures. 


The provisions of this section apply to all Army MWR programs and to those joint service and DOD agency MWR 

programs that have been assigned to the Army for management support. They do not apply to the ARNG, except when 

performing Federal service. 

16–26. Requirements 

a. FMWRC will prepare the consolidated reports from data provided by the field. Required reports are identified and 

explained in DODI 1015.15, DODI 1330.20, and DODD 1015.14 and will include the following elements: 

(1) Balance sheet. 

(2) Reconciliation of net worth. 

(3) Statement of income and expense. 


(4) Schedule A, APF and NAF Expense Summary. 

(5) Statement of cash flow. 

(6) Nonappropriated funds available/projected usage. 

(7) Resources received under the DOD MWR USA/UFM funding practice. 

(8) MWR Personnel Strength Report. 

(9) NAFI Employees’ Compensation and Benefits Program report. 

b. The NAFISS (DOD 7000.14–R, volume 13) and Army APF accounting system will contain most of the 

information needed to prepare required reports. 

16–27. Appropriated fund accounting manual 

a. The functional cost account codes and Army Management Structure Codes used to capture APF support for 

MWR (exclusive of Military Personnel, Army (MPA) and MCA) are listed in DFAS–IN Manual 37–100. MPA will be 

reported per paragraph 16–31. MCA will be reported by HQDA. 

b. DFAS–IN Manual 37–100 also provides functional cost account codes for all community and Family programs. 

While all programs are reportable, caution is used to ensure that reports reflect only support provided to MWR. The 

following guidance applies in determining which account codes apply to MWR: 

(1) All H-series codes are reportable, except Program Code HD (unit activities) is limited to support of unit day 

rooms and Program Code HG (official transient lodging)–New report requirements now requires all funding both APF 

and NAF to be reported for the Army Lodging Program listed separated by PCS and TDY (transient) lodging. 

(2) All J (Basic Community Support Activities), K (Enhanced Community Support), and L-series (Business Activities) 

codes are reportable. 

(3) P-series codes (Family/Community Support) are reportable. 

(4) Reportable R-series codes (ECECS Functions) include only support related to MWR. If such support is less than 

25 percent of available workload, do not report. Codes RK, RL, RM, RN, RT, RW, RX, RY, and RZ are not reportable 

and are reserved for IMCOM Region and HQDA funds. 

(5) No S-series codes (Army Community Services) are reportable. 

(6) Codes in the T series (Supplemental Mission) are reportable only to the extent that APF support directly relates 

to the administration of the NAF segment. If less than 25 percent of available workload is devoted to NAF 

administration, do not report. Code TP (Scouting) is not reportable. 

(7) All U-series codes (Joint Services Activities) are reportable. 

16–28. Integrated Facilities System 

a. The Integrated Facilities System is a Standard Army Management Information System that supports the installation 

DPW and is installed at most CONUS installations. It accumulates costs of SRM and alterations by facility and 

produces the Facility Reference Report. This report identifies job order costs for facilities occupied by MWR programs 

and may be used to help capture MWR engineering support costs. 

b. Utility costs must be based on meter readings, contract bid schedules, or engineer estimates. Sales agreements, 

prescribed in AR 420–41, will specify methods of determining utility consumption. 

16–29. Consolidated execution report 

a. The APF section of this report will reflect all current fiscal year obligations. 

(1) The information will be displayed by appropriation, MWR functional cost account codes, and object class 

(elements of resource). 

(2) All nonreimbursable APF obligations supporting MWR, whether defined as direct or indirect, are reportable. 

When one appropriation reimburses another, data will be reported under the originating appropriation. 

(3) Incidental costs that have no impact on the significance of overall MWR obligations will not be reported in 

detail. APF support routinely allocated to MWR that does not incur any additional or incremental costs, such as 

personnel, will not be reported. 

(4) Management or staff support functions that benefit only a specific MWR program will be reported under that 

program’s code. Support functions supporting all MWR programs will be reported under the applicable R-series codes. 

(5) MWR data (except MPA and MCA) will be included for the obligations on the monthly RCS CSCFA–218 

Report. MWR specific data will be extracted semiannually. 

b. APF object class descriptions are explained as follows: 

(1) Military personnel. Costs for military personnel assigned or used in MWR programs will be computed at the 

annual composite standard rate for the fiscal year. HQDA will cost these personnel according to the information 

provided on the Personnel Strength Report. 

(2) Civilian personnel. Costs for civilian personnel supporting MWR will be identified by salaries or wages and 

services and benefits. Personnel costs are accrued in proportion to time spent (permanent, temporary, intermittent, or 

collateral duty) in performing MWR-related duties. This will not include indirect personnel costs captured as part of a 


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subsidiary costing system, such as auditing services, or costs of APF personnel who spend less than 25 percent of their 

workday on MWR programs. The cost of DPW personnel who perform repair and maintenance of MWR facilities will 

be reported under “Sustainment, Restoration, and Modernization (including Minor Construction).” 

(3) Utilities. This includes the cost of heat, light, power, water, gas, electricity, and steam. It does not include 

transportation and communication services nor sewage disposal and trash and garbage removal. Utility costs will be 

reported for all buildings and facilities used entirely or principally for MWR. Where only a portion of the space is used 

for MWR purposes, the DPW will compute utility costs using engineering cost standards. Metering devices will be 

installed where MWR programs consume significant amounts of utilities. Costs will be prorated on the basis of relative 

square footage if this does not result in distortion. 

(4) Rents. Costs include rental of real property and equipment, except transportation equipment. Where an MWR 

program occupies only a portion of a space rented by the Government, APF rental charges will be allocated to MWR. 

Relative square footage will be used as the basis for allocation if this does not result in distortion. 

(5) Communications. This includes cost of communication services and equipment paid by APFs. Examples include 

postage, telephone, and facsimile and Internet services, or telephone installation charges. Costs include fair and 

reasonable charges for the use of telephones. 

(6) Sustainment, restoration, and modernization (SRM) (including minor construction) and maintenance and repair 

of equipment. 

(a) This includes SRM of equipment, facilities, and real property supplied through commercial contracts, or 

installation service functions such as post engineer or base civil engineer. It also includes erections, addition, expansion, 

extension, alteration, conversion, or replacement of an existing facility, or the relocation of a facility from one 

place to another, providing that the cost of such construction does not exceed the limits for minor construction. 

Maintenance and repair of equipment are also included (see AR 420–1 for APF funding limitations). 

(b) When SRM or minor construction funded from APFs is performed for MWR programs, costs will be reported to 

include direct labor and materials. Overhead allocation for general and administrative expenses, supplies, and miscellaneous 

materials, costs or equipment usage charges will be included when subsidiary costing systems are available to 

allocate such overhead items of SRM jobs, or where such overhead allocation is necessary to prevent a gross 

underestimate of SRM costs. SRM costs allocated on the basis of job costing systems, using fixed charges or unit costs 

for specific categories of maintenance, may be used if such system provides a reasonable aggregate estimate of SRM 

costs. 

(c) SRM costs will be allocated to MWR programs on the basis of some form of job order system. SRM of a shared 

facility not directly identifiable with either the MWR or non-MWR portion shall be allocated on a reasonable basis 

such as relative square footage. Minor SRM not separately identifiable as a SRM expense will not be allocated to this 

expense element as long as such costs are included under other expense elements, such as personnel or supplies. 

(7) Supplies and equipment. This includes the cost of expendable supplies, equipment, and materials and low-cost 

items that are ordinarily consumed or expended within 2 years after they are put into use or are used to form a minor 

part of fixed property (such as repair parts) and do not justify the same degree of accountability required for capital 

equipment. Also included is information technology software that is not capitalized. Examples include office supplies 

and certain athletic and recreation equipment. It does not include supplies consumed in SRM, which are reflected in the 

element of resource “Sustainment, Restoration, and Modernization.” It does not include investment equipment or 

equipment rental costs. 

(8) Equipment (investment). This includes equipment having a useful life expectancy of more than 2 years and an 

acquisition cost as prescribed in DOD 7000.14–R, volumes 2A and 2B. 

(9) Transportation of things. This includes transportation expenses using either contract or Government resources. It 

also includes contractual charges incurred by— 

(a) Common and contract carriers. 

(b) Rental of trucks and other transportation equipment. 

(c) Use of nonpassenger vehicles from motor pools. 

(d) Use of Government airlift, sealift, and other transportation or logistical support. 

(e) Transportation of household goods related to PCS travel for civilians transferred to full-time positions in MWR 

programs. Expenses are charged to the gaining program. A standard cost per mile or any other method may be used 

that estimates the cost fairly. Charges for transportation by airlift or sealift will use a costing method that reflects a fair 

user charge that includes both direct and overhead costs. 

(10) Transportation of persons. This includes individual travel and transportation costs when the primary purpose is 

conducting MWR programs. It also includes the cost of TDY travel of personnel employed by, assigned to, or detailed 

to MWR programs, and PCS travel for civilians transferred on a full-time basis to MWR programs. Expenses will be 

charged to the employing or gaining program and include— 

(a) Commercial transportation fares. 

(b) Rental of passenger-carrying vehicles. 

(c) Per diem allowances and costs of baggage transfers, telephone expenses, mileage allowances, tolls, and charges 


for use of Government-owned passenger-carrying vehicles. Expenses are computed by using a standard cost per mile 

when actual expenses are not readily identifiable. 

(11) Other contractual services. This includes the costs of all services performed for MWR programs by contract or 

agreement (such as custodial contracts or payroll service contracts), except for accounting, civilian personnel, central 

procurement, credit card sales, and administrative support services. It does not include SRM contracts. Obligations per 

MOA in support of MWR USA/UFM funding practice will be recorded here for each applicable MWR program 

(program code). 

(12) Construction of facilities. This includes costs associated with construction and acquisition of land meeting 

criteria for NAFMC, design modification, contract administration, inspection, supervision of construction, other related 

costs, and NAF capitalized minor construction and capitalized SRM. HQDA will report MCA costs. APF minor 

construction costs will be reported by each installation. APF minor construction in excess of $750,000 will be reported 

by HQDA. 

(13) All other obligations. This includes costs that do not apply to expenses explained above, such as refuse 

collection and other engineer account charges. 

16–30. Nonappropriated fund reports 

The majority of NAF reports will be prepared at the DA level, using routine garrison MWR entity and IMCOM Region 

financial statements, and personnel reports from the NAF Financial Services. 

16–31. Personnel Strength Report 

This report is divided into separate sections for NAF and APF personnel and is required by DODI 1330.20. 

a. Employees paid from NAFs will include U.S. citizens, U.S. nationals, and foreign nationals employed on a 

regular or temporary basis. 

b. Personnel paid from APFs include assigned military personnel, civil service employees, wage grade or wage 

board employees, and foreign nationals. 

(1) Full-time military personnel will be assigned to a MWR organization as a primary duty. 

(2) Part-time military will be assigned on a part-time or collateral duty basis and spend more than 25 percent of 

their working hours performing MWR functions. 

(3) Special Duty military are those detailed to work in MWR programs either as troop diversions (may be either 

TDA or modified table of organization and equipment (MTOE) Soldiers) or borrowed military manpower (only MTOE 

Soldiers). 

(4) Full-time civil service employees are assigned to an MWR program and work at least 40 hours a week. 

(5) Part-time civil service employees are assigned to an MWR program and work fewer than 40 hours a week. 

c. The count of APF paid personnel will not include any military personnel or civilian employees whose MWRrelated 

duties are less than 25 percent of their total duties. 

d. For reporting purposes, anyone who works in more than one MWR program will be assigned to the program 

where the greatest portion of time is spent. 

e. Personnel performing ECECS functions will be reported in the appropriate R-series code. 

f. The report will reflect conditions as they existed at the end of the reporting period. Because it is used for military 

costing for the consolidated MWR execution report, the following special instructions apply: 

(1) For full-time military positions, report end strength by rank. For example, one full-time 05. 

(2) For part-time military positions, report end strength by rank. For example, one part-time E7. Note that regular 

part-time requires more than 25 percent of workload to be devoted to MWR. 

(3) Do not report military collateral duty positions that require less than 25 percent of the workload. 

(4) Report special duty military (either troop diversion or borrowed military manpower) by cumulative man-months 

by rank, such as 24 man-months (E–4), 36 man-months (E–5), and so on. Include as a memo entry on the MWR 

Personnel Strength Report (RCS DD–P&R(Q)1555). 

(5) If a position has been removed from MWR and the individual reassigned, convert to work months in next report. 

For example, at the end of the first quarter, the full-time officer position was deleted. The officer filling the position 

was reassigned. The next report would reflect 3 work months at the applicable rank as there is no longer an established 

full-time position. 

g. The MWR Personnel Strength Report is prepared twice yearly, at midyear and at the close of the fiscal year. 

Those consolidated IMCOM Region reports for APF civilians and military personnel assigned to MWR are forwarded 

to FMWRC at the address in paragraph 16–1 not later than 30 days after the closing date. Figure 16–2 (RCS 

DD–P&R(Q)1555) provides the format for data submission. Individual submissions by program code (see app F) for 

each MWR or Family program and common support/management overhead are required. 


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Figure 16–2. Format for MWR Personnel Strength Report 


h. Overseas commands employing NAF foreign nationals will report those individuals on the same documents as the 

APF personnel strength report. 

i. All program managers will reconcile the location code shown within the work center codes shown on each 

employee’s timecard with the program code associations currently in use in the accounting system. Any discrepancies 

found can only be rectified through a correction in the employee’s personnel record (and forwarded to appropriate 

CPAC–NAF) or through a notification to the accounting office of a need for a change to the cross-reference table used 

in the accounting structure, as applicable. 

16–32. Employees’ Compensation and Benefits Report 

Garrisons not receiving Central NAF Payroll support will submit the Employees’ Compensation and Benefits Report 

(RCS DD–P&R(A)1554) to FMWRC, at the address in paragraph 16–1. These reports will be submitted annually by 

MWR category and program code in the format prescribed in DOD 7000.14–R, volume 13, appendix A, figure 8–15. 

Chapter 17 

Property Management 

Section I 

Separate Record-keeping 

17–1. Commingling 

Government property may not be commingled on NAFI/entity property or financial accounting or reporting records, 

except as provided for in this chapter and DOD 7000.14–R, volume 13. 

17–2. Appropriated and nonappropriated funds property management 

a. APF property will be managed at the garrison level by the garrison property or supply office. 

b. NAF property will be managed at the garrison or unit level by the Director, FMWR or equivalent designated 

element, which also designates hand receipt holders for APF property issued to NAFIs/entities. 

Section II 

Appropriated Funds Property 


a. In addition to APF authorizations specified in appendix D, authorization sources for APF property are— 

(1) Tables of organization and equipment (TOEs) and MTOEs, which prescribe personnel and equipment authorizations 

for like military units. 

(2) TDAs,which prescribe personnel and equipment authorizations for specific missions, for which there is appropriate 

TOE or MTOE. 

(3) Joint tables of allowances, which prescribe equipment authorizations for activities operated jointly by two or 

more military services. 

(4) CTAs, which supplement TOEs, MTOEs, TDAs, and joint tables of allowances by authorizing material items 

required for common use by individuals or units. CTAs that relate directly to MWR programs include— 

(a) CTA 50–909, which includes line item authorizations for MWR furnishings, fixtures, and equipment (FF&E). 

(b) CTA 50–970, which identifies authorized expendables and other support items. 

b. Other guidance on APF property management is found in the following sources: 

(1) AR 71–32 prescribes policy on establishing Government requirements and obtaining equipment authorizations 

and describes selected types of equipment to support eligible MWR programs. 

(2) AR 710–2 addresses supply responsibilities, garrison procedures, and accountability and management responsibilities 

for APF property issued to a using unit or stored for future issue; explains expendable and nonexpendable items 

and the hand-receipt property book and stock record systems. 

(3) AR 735–5 addresses accountability and accounting for property that is lost, damaged, or destroyed. 

(4) AR 735–17 addresses books, bound periodicals, recordings, films, art prints, videocassettes, computer software, 

slide sets, and similar property. 

(5) AR 725–50 implements six DOD military standard systems for requisitioning and issuing supplies and equipment, 

including the DOD Activity Address Directory. 


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17–4. Issue and receipt of property 

a. A Government supply activity may issue only the APF supply or equipment items authorized by an authorization 

document. APF property, issued to NAFI fund managers/entity administrators or other designated responsible persons 

by hand receipt will be carried on the garrison property book. APF property may be loaned only by temporary hand 

receipt in accordance with AR 710–2. Equipment that is unserviceable or no longer needed will be turned in to the 

APF supply activity. 

b. APF property records will be maintained as required by AR 710–2 or as directed by the garrison supply officer. 

c. Investment equipment is any nonstandard commercial item valued at over $100,000 and procured with APFs. 

This equipment must be authorized by a TDA or JTA and funded from the Other Procurement, Army (OPA) 

appropriation. Use of OPA funds will therefore be subject to all applicable APF procurement policies. 

Section III 

NAF Property 

17–5. Controls 

Controls for inventory and warehouse operations are in appendix G and DOD 7000.14–R, volume 13. 

17–6. Issue and receipt of property 

a. The accountable officer is accountable for all NAF property, whether issued or not. Responsibility will transfer to 

the user when the issue document is signed and will remain with the user until the property is returned. 

b. NAF property is issued to individuals for either of the following: 

(1) Use of property for official functions related to MWR ECECS or operational support as defined in appendix D. 

Hand-receipt holders may subhand receipt property to actual users as necessary. Further issue by the subhand receipt 

holder is not authorized. Acceptance of NAF property is indicated by signature on DA Form 2062 or issued by 

electronic media. DA Form 3161 (Request for Issue or Turn-in) or issued by electronic media will be used for issue to 

activity or program level personnel. 

(2) Use of property by any eligible MWR patron for social or personal use consistent with the purpose of an MWR 

program. NAF property will be issued by a signed hand receipt, unless items are of nominal value and used only for 

short periods of time. Then, items will be issued by a signature roster or any other system that fixes responsibility. The 

NAFI fund manager/entity administrator or property manager will retain original hand receipts; the person receiving 

and assuming responsibility for the property will keep the duplicates. 

17–7. Acquisition and property records 

Acquisition requirements will be included in the NAF budgets. Budget approval constitutes authorization for purchases. 

All NAF property, including that donated, or transferred from another NAFI/entity, will be carried on NAFI/entity 

property records. 

a. Purchase. Purchase of NAF property will be governed by AR 215–4. 

b. Transfer. Property received from another NAFI/entity on a nonreimbursable basis will be governed by this 

chapter and IMCOM Region policy. 

c. Donation. Gifts and donations received from private sources will be governed by chapter 13 and accounted for at 

fair market value. Donated property may be sold, and the proceeds retained by the NAFI/entity. 

d. Equipment and buildings. NAF-procured equipment acquired in conjunction with new construction or facility 

renovation, except installed equipment, will be NAF property accounted for on CAO records. Buildings acquired 

through NAF resources will be reflected on NAF financial statements per DOD 7000.14–R, volume 13. 

e. Surplus or excess APF property. Such property obtained from any DRMO will be considered loaned property and 

accounted for on memorandums of receipt, rather than added to NAFI/entity property records. DRMO transactions will 

require a Department of Defense Activity Address Code, as explained in AR 725–50 and AR 735–5. Authorization on 

the CTA or TDA will not be required but is accounted for in the same manner as other APF property and returned to 

the servicing DRMO when no longer needed. The controlling NAFI/entity will not sell APF property, nor will any 

proceeds gained from the use of APF property accrue to the NAFI/entity. 

f. Installed equipment. Permanently installed equipment purchased with NAFs (such as plumbing, wiring) that is 

considered a part of buildings or other structures will be managed separately by the DPW and will not be carried on 

NAF property records or hand receipted. 

g. Property records. Edelweiss Lodge and Resort, Shades of Green, Hale Koa Hotel, and Dragon Hill Lodge 

property records will be maintained according to generally accepted hospitality industry standards as an exception to 

DFAS policies contained in DOD 7000.14–R, volume 13, appendix A, paragraph A0404. Property records of all other 

MWR programs and other NAFIs will be maintained in accordance with the above-cited DFAS regulation. This 

includes all fixed assets and expendable and nonexpendable items of sufficient value or sensitivity to warrant continual 

cognizance and control. 


17–8. Nonavailability of appropriated fund property 

a. If an item of APF property authorized by any source listed in paragraph 17–3 and appendix D is not reasonably 

available for use in an MWR program, a similar or like item may be purchased as NAF property if the urgency of need 

and inability to issue are adequately documented. The fund manager/entity administrator must approve the request to 

purchase a like or similar item from a commercial source, based on the following: 

(1) The garrison supply office or other issuing authority must certify that the requested item will not be available by 

the date required. 

(2) The program manager must certify that the item is essential to the operation of the MWR program, has been 

properly requisitioned, and procurement officers confirm the requisition cannot be filled by the date required. 

(3) The request, and all supporting documentation, must be complete and verifiable for audit or inspection purposes. 

(4) The CPMC budget must be revised as necessary to support the purchase. The commander’s approval will be 

made a part of the budget documentation. 

b. Requisitions for authorized APF property must be submitted in a timely manner and within normal supply lead 

times. Requests for NAF purchase due solely to late submission of a requisition will not be approved. 

17–9. Property transferred to the Government 

NAF property may be transferred to the Government only if the property item is listed on an appropriate APF 

authorization document or a request to add the item to an authorization document is approved. Property transferred to 

the Government will not be subsequently transferred back to the NAFI/entity. Proceeds from the sale of transferred 

property will not accrue to the NAFI/entity. 

17–10. Loans of property 

NAF property may be loaned only to— 

a. MWR patrons, while participating in MWR programs. 

b. Other NAFIs/entities for periods of 90 days or less. A requirement for a period in excess of 90 days is considered 

to constitute a continuing need and is the basis for a purchase. 

17–11. Property management functions 

a. NAFI fund managers/entity administrators will serve as accountable officers for all NAF property. They will 

ensure proper care, maintenance, and disposition, and supervise property managers or assistants, as applicable. 

Additionally, they will provide proper secured storage (preferably covered storage) for all large items of equipment— 

for example, golf course maintenance equipment—to provide protection from weather and to prolong equipment life. 

Storage facilities will meet Occupational Safety and Health Administration and Environmental Protection Agency 

requirements for safety and environmental considerations. If required, fund managers/entity administrators will serve as 

responsible property officers for APF property issued to the NAFI/garrison MWR operating entity and comply with all 

applicable APF property regulations. NAFI fund managers/entity administrators will— 

(1) Ensure that property is adequately insured against loss, damage, or destruction per chapter 19. 

(2) Receive or confirm receipt of purchased items through receiving reports, in accordance with terms of purchase. 

(3) Comply with all inventory requirements and procedures in accordance with this chapter, appendix G, and DOD 

7000.14–R, volume 13; establish fixed asset inventory numeric or alphanumeric listing in coordination with the CAO; 

furnish inventory team members for other than independent teams; and ensure agreement between NAFI/entity and 

CAO records and inventory results. 

(4) Redistribute or dispose of excess NAF property in the most cost-effective manner, per IMCOM Region policy. 

(5) Report losses and cooperate in or conduct necessary investigations described in chapter 18. Recommend relief of 

individuals from responsibility per appendix M when loss, damage, or destruction of property is not caused by neglect 

or misconduct. 

b. Central accounting officers will receive and process all NAFI/entity property documents and maintain applicable 

records, including reconciling inventory counts to property records when inventory results are approved by the garrison 

commander. They also will— 

(1) Maintain NAF property records for the accountable fund manager/entity administrator, when requested. 

(2) Use fixed asset records as the basis for general ledger fixed asset accounts and for determining depreciation 

expenses and schedules. 

(3) Arrange independent physical inventories and follow-on adjustments to records. 

(4) In coordination with the Services Division or equivalent, develop and maintain a NAF property identification 

numbering system which includes applicable inventory listings and the make, model, and serial numbers. 

c. Program managers will reconcile property accounts upon assuming their positions and periodically thereafter, as 

directed by the accountable officer. 

17–12. Receiving procedures 

a. Property will be inspected for overages, shortages, damage, or other discrepancies. Discrepancies will be noted on 


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the receiving document, DD Form 250 (Material Inspection and Receiving Report), DA Form 4067 (Request for 

Quotations (Nonappropriated Funds)(EGA)), or vendor’s invoice (see AR 215–4). Signed documents will be forwarded 

to the CAO for payment and inclusion in inventory records. 

b. Items of NAF property, as classified below, will be physically marked with a durable form of identification 

(classifications are explained in DOD 7000.14–R, volume 13): 

(1) Fixed assets. 

(2) Nonexpendable items accounted for on NAF property records. 

(3) All expendable items with a unit cost less than $1,000, considered sensitive or susceptible to pilferage. 

c. Storage and property protection will include the following actions: 

(1) Building entrances and exits will be limited to manage the flow of employees and customers away from storage 

areas. Except for fire exits, all entrances and exits will be monitored to ensure that no items leave the building without 

being properly issued. 

(2) Antitheft devices will be purchased, installed, and used as recommended by the installation provost marshal. 

(3) Proper temperatures will be maintained in storage areas for perishable items. Appropriate monitoring or alarm 

systems will be used. 

(4) Firearms and ammunition will be secured in accordance with AR 190–11. 

17–13. Inventories 

a. All NAF property will be inventoried annually and upon change of fund manager/entity administrator or 

accountable officer. 

b. Inventory procedures are specified in DOD 7000.14–R, volume 13, and appendix G, this regulation. 

17–14. Losses 

a. For purposes of this regulation, the term “property loss” includes all NAF property that is lost, damaged, or 

destroyed by causes other than fair wear and tear. This may involve natural disasters, hostile action, mysterious 

disappearance, robbery, theft, or similar causes. 

b. The Army Central Insurance Fund (ACIF) described in chapter 19 will insure all fixed assets and other NAF 

property for which records are maintained against loss. The cost of insurance is considered a normal business expense 

for financial protection. 

c. Accountability records will include— 

(1) Property items or combinations of items valued in excess of $2,000 that have been lost, damaged, or destroyed 

for causes other than fair wear and tear. These will be dropped from accountability records only after an investigation 

is conducted as prescribed in chapter 18. 

(2) Minor operating losses that require no investigation and inventory levels will be adjusted as required. However, 

repeated losses of low-cost items are cause for a review of inventory controls and an investigation, if appropriate. 

d. Property losses that involve individual pecuniary liability, which will be investigated and any resulting claims 

processed per chapter 18. 

17–15. Disposition of property 

a. Transfers within the Army. 

(1) The preferred method of disposal of NAF personal property is the transfer of property to another NAF entity 

within the same IMCOM Region. Transfers of NAF property will be authorized only between military MWR NAFIs. If 

this method is not cost effective or for any number of other reasons, the responsible IMCOM Region will decide on the 

proper method of disposal. Transfers between IMCOM Regions will satisfy requirements of both the losing and gaining 

IMCOM Region. 

(2) Transfer of NAF personal property resulting from demobilization and redeployment are addressed in chapter 9. 

b. Sales. Before any type of sale of NAF property, the local SJA will determine if State laws apply, such as for 

environmental reasons, and so forth. All sales proceeds will be returned. All sales proceeds will be returned to the 

NAFI or garrison MWR operating entity conducting the sale or the successor fund if the NAFI/entity is being 

disestablished. Garrisons may sell excess NAF property at a site on the installation or over the Internet. Internet sales 

will comply with requirements in chapter 12. 

(1) Garrison sales. 

(a) Serviceable NAF property not needed may be transferred or offered for sale to other Army military MWR 

NAFIs or garrison MWR operating entity; with IMCOM Region approval, sold to NAFIs operated by the other 

Military Services; or, at fair market value, sold to nonmilitary NAFIs (for example, civilian MWR NAFIs). 

(b) If other Army MWR NAFIs or garrison MWR operating entities cannot use the personal property or it is not 

advantageous to transfer or sell NAF property as prescribed above, serviceable property may be sold at no lower than 

fair market value to authorized MWR patrons, the public, or civilian businesses or organizations, or the local 

community affected by BRAC actions. 


(2) Auction sales. Garrison auction sales, conducted on the installation or over the Internet, will be to the highest 

bidder. The fund manager/entity administrator will prepare and authenticate a list of all property to be sold with space 

for recording the sale price if sold at a garrison auction or the sale price, commission, and net proceeds if sold under 

consignment by a commercial auction service. The list will be returned to the fund manager/entity administrator and 

the proceeds will be deposited in the NAFI or garrison MWR operating entity account, after which the CAO will 

validate the listing and update the fixed-asset inventory. 

c. Trade-ins. New equipment may be purchased under conditions that allow trade-ins of used equipment when there 

are disposition advantages and price reductions on new equipment. 

d. Disposition of NAF personal property resulting from BRAC actions. MWR NAF personal property will not be 

offered to the local redevelopment authority in the same manner as APF property disposed of at BRAC installations. 

Because MWR NAF personal property belongs collectively to Soldiers and is not considered APF Government 

property (as relates to BRAC actions), the BRAC-affected installation, in coordination with the parent IMCOM Region, 

may decide on the disposition of NAF personal property through transfer or sale in accordance with the disposition of 

NAF property policies above. Every effort will be made to ensure that the local redevelopment authority is aware of 

the difference between APF and NAF personal property. Policies on NAF real property proceeds and the Reserve 

Account are at paragraph 5–5. More specific information on BRAC-related actions is contained in the MWR Guide to 

Army BRAC Installations, issued separately by FMWRC (IMWR-PO). 

e. Transfer or sale to other military services or U.S. Government agencies. 

(1) Garrison transfers. The disposition of NAF assets or liabilities will be determined by the IMCOM Region 

through negotiation when control of an installation or organization is transferred from one Military Service to another 

or to another U.S. Government department or agency. These negotiations will assure a fair and equitable distribution of 

assets in consideration of current and foreseeable requirements of the affected garrisons or organizations. 

(2) Joint-basing transfers. NAF property will be transferred to another military service at the discretion of the 

IMCOM Region when the property is excess at the Army installation or the installation is slated to close. The transfer 

will be in the best interests of the Army and the Soldiers being relocated to the other military service installation when 

deemed appropriate to ensure Soldier use of the transferred property. 

Section IV 

Other dispositions 

17–16. Recycling 

a. Garrison MWR programs will participate in a recycling program to the maximum extent practicable. All 

recyclables emanating from the MWR program will be segregated and disposed of accordingly. 

b. If authorized by the garrison commander and there is a projected positive net return on investment of NAF 

resources to the garrison MWR operating entity, the Director, FMWR may operate some or all of the garrison recycling 

program per AR 420–1 and other appropriate regulations and guidance. MWR recycling operations must work closely 

with the DPW/director of logistics (DOL) and DRMO. 

c. For recycling programs designated by the garrison commander as a Qualifying Recycling Program, proceeds from 

sales are deposited in the Installation Recycling Account (installation clearing account 21F3875.1111) or the garrison 

MWR operating entity, as follows: 

(1) Funds sufficient to cover the costs of operations, maintenance, and overhead for processing recyclable materials 

at the installation (including the cost of any equipment purchased for recycling purposes) will be credited to the 

operations and maintenance account at the installation. 

(2) If a balance remains after expenses are paid, not more than 50 percent of the amount may be used at the 

installation for pollution abatement, energy conservation, and occupational safety and health projects. These funds may 

not be used for projects costing more than 50 percent of the amount established by law as the maximum amount for a 

minor construction project. 

(3) The balance of the installation recycling account up to 100 percent may be transferred to the garrison MWR 

operating entity. 

(4) When the Installation Recycling Account balance exceeds $2 million at the end of the fiscal year, the excess 

amount will be turned over to the U.S. Treasury. 

(5) The Director, FMWR will obtain and monitor monthly reports of the installation recycling account balances and 

planned expenditures. 

d. Funds generated from recycling, either through MWR operation or the Installation Recycling Account, will be 

accounted for under the applicable program code and MWR category outlined on the MWR Web site www.armymwr.com 

(under Financial Management Documents) and DOD 7000.14–R, volume 13. 

17–17. Abandoned personal property 

a. 10 USC 2575 authorizes proceeds from the sale of unclaimed abandoned personal property found on a military 


135

installation to be retained by the installation. The proceeds will be used first to recover the costs of collecting, storing, 

transporting, and selling the abandoned property and secondly to support MWR programs. 

b. The gross amount of the sale will be credited to the operations and maintenance account of the installation. Costs 

incurred for the handling and selling of the abandoned personal property are recognized as 20 percent of gross sales. 

The remaining 80 percent will be paid directly to the garrison MWR operating entity. Costs exceeding the 20 percent 

are considered extraordinary costs. The garrison commander is responsible for determining if the operations and 

maintenance, Army account or the garrison MWR operating entity will bear the cost of the extraordinary costs. 

c. If there is a claim within 5 years from the date of sale and the claim is upheld, the owner or rightful claimant of 

the abandoned personal property will be refunded 80 percent of the proceeds from the sale. Payment is made from the 

garrison MWR operating entity, which received the 80 percent proceeds from the sale. 

d. Additional policy regarding the accounting for the proceeds from sale of abandoned personal property is 

contained in DFAS–IN Regulation 37–1 (chap 25). Procedures for disposal of abandoned personal property are 

prescribed in DOD 4160.21–M. 

17–18. Precious metals 

Materials containing recoverable precious metals will not be disposed of through private commercial sources. All 

excess precious metals and salvageable items that contain recoverable precious metals and that were purchased with 

either APFs or NAFs will be turned in to and processed by the DRMO through the DOD Precious Metals Recovery 

Program. This includes silver-bearing hyposolutions discarded by arts and crafts photography labs. There will be no 

payment to the garrison MWR operating entity for sales of precious metal. 

17–19. Auto skill unique items 

Waste, motor oil, used auto parts, and similar items left by self-help patrons in automotive skills shops are considered 

donations to the MWR program, as defined in chapter 13, and may be salvaged. Income from sales to commercial 

sources will be used to support authorized NAF expenses of any MWR program. For large privately owned items such 

as drive trains and major auto body components, a statement signed by the owner will document transfer of ownership 

to the MWR program. 

17–20. Firearms and ammunition 

a. The sale or transfer of firearms or ammunition is subject to the provisions of chapter 8. 

b. Turn-in of demilitarized firearms to the DRMO is subject to the provisions of DOD 4160.21–M. 

17–21. Salvage 

Whether serviceable or unserviceable, items that are not disposed of through any of the methods described in 

paragraphs 17–15 through 17–20, including recycling, may be turned in to the DRMO for salvage or may be disposed 

of as scrap under NAF contract. 

a. For DRMO disposal, DD Form 1348 will accompany items turned in. Each document will include a statement 

that the item was procured with NAFs, applicable Department of Defense Activity Address Code number (AR 725–50 

and AR 735–5), SNN of the NAFI/entity, item description, and book value. 

(1) The DRMO will provide a copy of the document to the CAO, which relieves the fund manager/entity administrator 

or property officer of accountability and causes property record adjustment. 

(2) Eighty percent of DRMO sale proceeds are rebated to the garrison MWR operating entity. 

b. For items salvaged through commercial sources, rebates will be based on the terms of the contract. 

17–22. Calibration 

Calibration of NAFI/entity test, measurement, and diagnostic equipment is done free-of-charge at Government-owned 

or controlled calibration facilities. Test, measurement, and diagnostic equipment calibration requirements are coordinated 

in advance with the installation DOL. 

Chapter 18 

Audits, Reviews, Inspections, Investigations, and Management Controls 

18–1. Audits and reviews 

Audits and reviews are implemented by DODI 7600.6 and DODI 1015.15. 

a. The DOD Inspector General will establish NAFI/entity audit policy and provide general audit oversight responsibility. 

The U.S. Army Auditor General will ensure that NAFIs/entities are provided adequate audit coverage. 

b. An audit committee made up of senior officials, independent of NAFI/entity management, will oversee NAFI/ 

entity audits. The committee will establish audit requirements based upon risk assessments, identify contract deliverables, 

and monitor the contracts for certified public accounting firm’s execution of financial statement audits. A senior 


member from the U.S. Army Audit Agency (USAAA) will serve as an advisor to the audit committee but may not be a 

voting member of the committee. 

c. The Director, Defense Contract Audit Agency, upon request, will provide reimbursable audit services on NAF 

contracts exceeding $500,000. 

d. The use of nonappropriated funds for NAFI/entity audits or reviews is the preferred method. MWR programs will 

be authorized nonreimbursable use of appropriated funds and/or personnel to conduct audits or reviews. 

e. Private organizations on installations will not be authorized nonappropriated funds or appropriated funds or 

personnel for auditing their operations. However, funding and personnel will be authorized for official inquiries into the 

operations of private organizations on installations. 

f. USAAA audits will be conducted in accordance with AR 36–2. Internal Review Office engagements will be 

conducted per AR 11–7. Procedures for conducting internal audits/reviews of DOD operations, systems, programs, and 

functions are in DOD 7600.7–M. 

g. MWR programs may be audited or reviewed as a system or on a functional basis. Examples of functions that can 

be audited or reviewed are personnel management and cash controls. 

h. Annual financial audits or reviews will be conducted on all NAFIs/entities with annual revenues or expenses that 

exceed $7 million and those NAFIs/entities with operations deemed to be highly sensitive because of the potential for 

fraud, waste, abuse, or wide public exposure. The Office of the DOD Inspector General will be the approval authority 

(in writing) for any exceptions to the dollar limitation. Other audits or reviews will be completed as deemed necessary 

by management based on risk assessments and within resource availability. 

i. An annual independent financial audit of all central NAFIs/entities (see chap 3) and IMCOM Region NAFIs is 

required to obtain properly certified statements as to financial condition. The garrison MWR operating entity will be 

considered part of the IMCOM Region NAFI. The audit opinion will be the basis for the Army’s annual MWR 

Financial and Personnel Management Report submitted to the Office of the Secretary of Defense as required by DODI 

1015.15. When contracting with a certified public accounting firm, the Army Auditor General must approve the 

solicitation before its release and contract award. Contracts will comply with Generally Accepted Government Auditing 

Standards as well as other applicable DOD or Office of Management and Budget audit standards and will include a 

provision to allow for technical review by USAAA when deemed necessary. USAAA will make the decision whether a 

technical review is required. Internal review offices will act as the Contracting Officers Representative. FMWRC will 

schedule and coordinate the contracting for NAFI/entity audits and related activities with USAAA. 

j. Internal review or USAAA personnel, rather than certified public accounting firms, will be used for reviews or 

audits involving potential fraud or other serious improprieties. 

k. Terminal audits or reviews must be performed for all NAFIs/entities being disestablished. 

l. If evidence of a criminal offense, fraud, gross mismanagement, wrongdoing, or misconduct is detected, notification 

will be made to the installation provost marshal’s office and/or the Army Criminal Investigation Command. 

Additionally, theft, suspected theft, negligence, conflict of interest involving appropriated or nonappropriated funds or 

property valued at more than $100,000 will be reported as a Category 2 Reportable Serious Incident. A Serious 

Incident Report (SIR), if applicable, is submitted per AR 190–40 to the Provost Marshal General, ATTN: DAPM–OPS, 

within 24 hours of discovery or notification at the installation level. After a SIR is submitted, the local garrison 

commander may conduct an investigation to determine the cause and fix responsibility. 

18–2. Inspections 

Inspections are conducted per AR 1–201. 

18–3. Investigations 

a. Investigations into NAFI/entity losses will be conducted per appendix M using AR 735–5 as a guide and initiated 

when— 

(1) Prescribed by a relevant Army regulation. 

(2) Directed by a commander or approving authority. 

(3) Required to establish proof of loss for NAFI/entity insurance purposes as prescribed in chapter 19. 

(4) Cash or NAF property losses over $2,000 are a result of— 

(a) Apparent theft when there are no visible signs of breaking and entering. 

(b) An unexplained disappearance of cash or NAF property. 

(5) Inventory variances exceed $500. 

(6) Retail sales accountability variances exceed $500. 

(7) Circumstances indicate— 

(a) A lack of or disregard for management control procedures. 

(b) Fraud, dishonesty, willful misconduct, recklessness, or wanton disregard for the safekeeping of NAF assets. 

(c) Individual actions are beyond the scope of employment or permitted use. 

(8) Second or succeeding loss occurs at the same location under similar circumstances. 


137

. In lieu of appendix M procedures, garrison commanders may adopt the procedures for financial liability investigations 

of property loss as prescribed by AR 735–5. Where a NAF employee is authorized to take action regarding a 

financial liability investigation and the procedures in AR 735–5 are used, the following guidance applies when 

determining what level of NAF employee may take action to appoint, approve, or act as an appeal authority: 

(1) Where AR 735–5 requires an employee to hold a supervisory position as a GS–13 through GS–15, or a GS–12 

filling a GS–13 supervisory position in order to take an action in relation to a financial liability investigation, a NAF 

employee who takes such action must be in a supervisory position of the grade of NF–5 or above. 

(2) Where AR 735–5 requires a General Officer or a Senior Executive Service employee to take an action in relation 

to a financial liability investigation, a NAF employee who takes such action must be at the grade of NF–6. 

c. An AR 15–6 investigation will be required for sensitive items or where circumstances exist as outlined in AR 

735–5. 

d. Claims against contractor or commercial entities will be processed per ARs 27–20, 27–40, and 215–4. 

18–4. Key management controls 

a. Key management controls, as defined in AR 11–2, are “those controls that are absolutely essential to ensuring 

that critical processes operate as intended and that resources are safeguarded from fraud, waste, and misuse.” Key 

management controls for manager evaluation are outlined in appendix N of this regulation. Key management control 

checklists can be found through the ASA(FM&C) Financial Operations, Management Control Web page, www.asafm.- 

army.mil/fo/fod/mc/mc.asp or via the FMWRC Internal Review management control Web page, www.armymwr.org/ 

internal_review.htm. 

b. Evaluation of management controls includes a detailed, systemic, and comprehensive examination to determine 

whether controls are in place, being used as intended, and effective in achieving their purpose. Formal management 

control evaluations of key management controls must be conducted at least once every five years; however, controls for 

high-risk areas may require more frequent evaluation. 

c. Evaluations must be based on actual testing of these key management controls and must make a specific 

determination of their effectiveness. This evaluation must be supported by documentation that clearly indicates who 

conducted the evaluation and when, what methods were used to test the key controls, what management control 

deficiencies (if any) were detected, and what corrective actions were taken. Certification that an evaluation was 

conducted is documented on DA Form 11–2–R (Management Control Evaluation Certification Statement (LRA)). 

Chapter 19 

The U.S. Army NAF Risk Management Program 

Section I 

Introduction 

19–1. General 

This chapter describes the basic policies and principles that govern the U.S. Army NAF RIMP. Subsequent sections 

provide details on coverages and claims procedures. 


a. This chapter applies to— 

(1) All U.S. Army NAFIs/garrison MWR operating entities worldwide. This includes all U.S. Army NAFIs/entities 

worldwide (except as provided in paragraph 19–2c) including chaplain funds and NAFIs of the DOD and other 

agencies for which the Army has executive agent responsibilities and/or has established NAFIs in accordance with 

Army policies prescribed in this regulation. 

(2) Civilian NAFIs on Army installations. Civilian NAFIs may participate in RIMP only if the Army Civilian 

Welfare Fund BOD approves. 

b. Isolated unit funds that own property will report to RIMP through the supporting coordination installation and 

IMCOM Region. 

c. This chapter does not apply to AAFES, the Cadet Mess Ration Fund USMA, the USAR, or ARNG. 


a. RIMP is a centralized property and casualty insurance program for U.S. Army NAFIs/entities. The Chief 

Financial Management Officer, FMWRC administers the program for the Commander, FMWRC. 

b. The Army Central Insurance Fund (ACIF) is a NAFI, which receives and disburses the funds of RIMP. The 

AMWRF is the successor-in-interest to the ACIF. 

c. The objective of RIMP is to provide broad insurance protection for Army NAF assets at the lowest cost including 


purchases made using MWR USA/UFM funding practices. Assets purchased directly with APFs are not covered under 

this program. RIMP will use self-insurance programs and centralized commercial insurance to provide insurance 

protection. 

d. Address inquiries to FMWRC to the Commander, Family and Morale, Welfare and Recreation Command, ATTN: 

IMWR–FM–I, 4700 King Street, Alexandria, VA 22302–4406. 

Section II 

The Risk Management Program 

19–4. Policy 

a. RIMP will follow the general principles of the commercial insurance industry in administering the self-insurance 

program. 

(1) RIMP will maintain a database of insured assets, employees, and payroll. As coverage needs of NAFIs/entities 

are identified, RIMP will provide the coverage either through the self-insured program or a commercial insurance 

company. 

(2) RIMP will invoice NAFIs/entities for the cost of insurance and maintain reserves to pay claims. 

(3) Losses covered by the RIMP programs will be adjusted and payment of claims will be made from the ACIF. 

Other than claims processed under the provisions of AR 27–20, general principles of the insurance industry will be 

used in adjusting claims. 

(4) RIMP will maintain data on loss history and advise NAFI fund managers/entity administrators of losses that 

could be prevented or reduced with proper attention to loss and accident prevention measures. 

b. All NAFIs/entities must participate in RIMP and certain coverages are mandatory. This ensures there is an 

acceptable spread of risk so that routine losses can be predicted with accuracy and there is stability in the RIMP 

programs. 

c. Other insurance is not allowed unless specifically authorized by the Chief Financial Management Officer, 

FMWRC. 

d. When the value or nature of certain insurable exposures dictates, RIMP may obtain commercial insurance 

coverage to protect exposure to loss. 

e. Insurance policies will not be issued under this program. Annually, each fund manager/entity administrator will 

correct statements of insured exposures to update the RIMP database. 

19–5. Insurance programs 

a. Separate insurance programs within RIMP include— 

(1) Property, which covers NAF assets including buildings and contents, equipment, furniture, fixtures, inventory; 

watercraft, vehicles, and aircraft; money and securities and fidelity bonding for employees. 

(2) Tort, which covers claims against NAFIs/entities because of general liability. Such claims are defined and 

processed under the provisions of AR 27–20. 

(3) Workers’ Compensation, which covers on-the-job injuries and illnesses. Coverage is mandated by Federal 

statutes. 

(4) Cargo, which covers merchandise and property shipped to and from NAFIs/entities. This coverage may be 

mandatory, depending on the dollar value of the shipment. 

(5) Unemployment Compensation, which covers benefits for former NAF employees as required by Federal law. 

RIMP administers the program for Army NAFIs/entities. 

(6) A RIMP claims fund for FCC providers, maintained by ACIF and used to pay claims against FCC providers 

adjudicated per AR 27–20. 

b. Participation in the following RIMP programs is mandatory: 

(1) Fidelity bonding, money, and securities. 

(2) General tort, vehicle tort, and aircraft liability for flying and parachute programs. 

(3) Workers’ Compensation and Unemployment Compensation. 

(4) FCC Providers Claims Fund. 

19–6. Review of insured exposures 

a. Annually, RIMP sends a Review of Insured Exposures to fund managers/entity administrators. The review shows 

the physical assets, number of employees, and other exposures insured for each NAFI/entity. The fund manager/entity 

administrator will update, sign, and date the review and return it to RIMP whether there are changes or not. The review 

is the basis for claims payment and premium computation. Claims will be paid for assets that are properly reported for 

coverage. Coverage will be effective the date the Review of Insured Exposures is signed. Premiums will be adjusted 

based on the updated information effective the date the review is signed. 


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. The data recorded from the Review of Insured Exposures form an Armywide database. The Review of Insured 

Exposures permits a fair allocation of insurance costs among NAFIs/entities. 

c. As part of the review, the fund manager/entity administrator will receive a copy of DA Form 4316 (Application 

for Building Insurance) showing the data currently recorded for each insured building. RIMP will provide a formula for 

establishing the actual cash value (ACV) of each building on the DA Form 4316, based on updated building costs per 

square foot and local area cost factors. The fund manager/entity administrator may accept the ACV as computed or 

may request a different ACV with supporting justification. 

d. When insuring aircraft, NAFI fund managers/entity administrators must complete DA Form 4316–1 (Application 

for Army Flying Activity Aircraft Insurance). 

e. Fund managers/entity administrators will notify RIMP when the insurable values of contents or the number of 

employees changes more than 10 percent per location from that recorded on the Review of Insured Exposures. 

f. RIMP will provide coverage for newly acquired aircraft, vehicles, computers, buildings, building improvements 

and betterments, watercraft, livestock, and unlicensed vehicles for 30 days from date of acquisition. The fund manager/ 

entity administrator must submit a written request for coverage to RIMP for coverage to be continued beyond 30 days. 

19–7. Loss and accident prevention 

In order to prevent or reduce losses and keep cost of insuring programs as low as possible, fund managers/entity 

administrators must observe DA, IMCOM Region, and garrison safety procedures. 

19–8. Foreign insurance coverages 

a. Workers’ Compensation and Employers’ Liability. 

(1) In foreign nations, where local nationals working for the United States are required to be covered by the host 

nation’s worker’s compensation and employer’s liability plan, private insurance will not be allowed. 

(2) The local commander will insure foreign employees in accordance with host nation requirements. 

b. Automobile and general liability. 

(1) RIMP will provide physical damage insurance coverage as specified in section X of this chapter in those foreign 

countries where the use of such vehicles is authorized. RIMP will not provide insurance coverage for bodily injury or 

death or property damage sustained by third parties in nations where the United States does not have a SOFA (for 

example, Austria and Switzerland). 

(2) Garrison commanders will require NAFIs/entities that lease recreational vehicles to authorized users to obtain 

commercial liability insurance to cover third party liability whenever the contemplated use of such vehicles includes 

travel to countries where the United States does not have a SOFA or where proof of liability insurance is required to 

enter the country. 

(3) NAF vehicles may not be operated in a country where a SOFA does not exist unless prior approval is obtained 

from the host country. 

c. Optional foreign insurance coverages. When participation in host nation insurance funds or commercial insurance 

companies is not required by law but is an option, NAFIs/entities will use the RIMP insurance program. Where 

overriding circumstances exist, requests for exceptions are sent to FMWRC at the address in paragraph 19–3 for 

consideration and final decision. 

19–9. Insurance requirements for concessionaires and contractors 

Guidance regarding insurance requirements for concessionaires and contractors is contained in AR 215–4. 

19–10. Claims against users 

a. Damage to NAF property insured under RIMP will be adjusted under the Property Program described in this 

chapter. RIMP reserves the right to seek recovery for claim payments against authorized users, through procedures 

established in chapter 18 or through legal proceedings. 

b. Users of NAF property and facilities may be held legally liable for bodily injury or damage to the property of 

others caused by their negligence or omissions. Claims against authorized users will be adjudicated per section IV, this 

chapter. 

Section III 

Financial Requirements 

19–11. Premiums 

a. Invoices for insurance premiums will be mailed each October for the fiscal year. NAFIs/entities with poor loss 

records may be subject to a surcharge imposed by RIMP, based on dollar value of claims paid. 

b. NAFI fund managers/entity administrators will project their cash flow and be prepared to pay according to the 

billing schedule each year. 

c. RIMP insurance invoices will be paid by the electronic transfer of funds from NAFI/entity bank accounts through 


the Central Banking Program. RIMP will mail the original insurance invoice to the NAFI/entity. The fund manager/ 

entity administrator will review the invoice and notify the RIMP immediately if an adjustment is necessary. RIMP will 

process the adjustments and send a corrected invoice to the NAFI/entity. On the 30th day after the invoice date, the 

premium will be automatically debited from the NAFI/entity bank account. The transaction will be shown on the 

NAFI’s/entity monthly bank statement. 

d. For those NAFIs/entities not participating in the electronic transfer, ACIF invoices will be due in full when 

received. Invoices not paid within 30 days of the invoice date may incur a 15 percent late fee surcharge. Claims made 

by NAFIs/entities with outstanding premium balances will not be considered by RIMP until all premiums are paid. 

e. NAFIs/entities have the option to request to pay their annual insurance invoices on a quarterly basis. The fund 

manager/entity administrator must submit an annual request to make quarterly payments to RIMP within 30 days of 

receipt of the annual invoice. A predetermined charge is applied to each quarterly payment. 

f. Except Korean nationals, NAFI/entity costs for Unemployment Compensation and Workers’ Compensation will be 

processed biweekly through the NAF payroll system. Workers’ Compensation cost for Korean nationals will be 

included on the annual insurance invoices. 

19–12. Funding 

a. Annual premium and expenses will be established for the following programs for each fiscal year: 

(1) Property Program. 

(2) General Tort Program. 

(3) Workers’ Compensation Program. 

(4) Workers’ Compensation Program for Korean Nationals. 

(5) Aircraft Liability Program. 

(6) Vehicle Tort Program. 

(7) Open Cargo Program. 

(8) Unemployment Compensation Program. 

(9) Family Child Care Program. 

b. Reserve funds will be replenished each year based on actual exposure to loss and loss experience. Reserves will 

be established within the ACIF by the Chief Financial Management Officer, FMWRC, and are based on audits and 

actuarial reviews. Reserve funds will include— 

(1) Tort reserve. This reserve is established annually based on known liabilities of general tort, vehicle tort, and 

aircraft tort. 

(2) Workers’ compensation. This fund is used to pay workers’ compensation claims and expenses only. It is not 

commingled with other funds or used for any purpose except expenses and claims related to the workers’ compensation 

program. Reserves are established based on the annual actuarial review. 

(3) Unemployment compensation. This fund is used to pay unemployment benefits for former NAF employees. 

c. In order to provide funds to pay for catastrophic losses, fund balances will be maintained for each of the 

programs in paragraph 19–12a. The Chief Financial Management Officer, FMWRC will be charged with determining 

the appropriate fund balance for each program based upon the potential liabilities. 

d. Rates used to calculate premiums will be derived from the amount needed to cover anticipated losses. Rates may 

be revised each year based on loss experience. 

Section IV 

Tort Program 

19–13. Tort claims and approval procedures 

a. Claims covered by this section include— 

(1) Claims against NAFIs/entities (tort claims) because of acts or omissions of the NAFI/entity, or its employees. 

Claims may arise from the activities of— 

(a) NAF civilian employees of NAFIs/entities. 

(b) Active duty military personnel while performing off-duty, part-time work compensated from NAFs. 

(c) Members of recreational NAFIs/entities or authorized users of NAF recreational property, while using such 

property, except real property, in the manner and for the purposes authorized by DA regulations. 

(2) Claims by employees of NAFIs/entities for loss, damage, or destruction of personal property incident to their 

employment. 

b. Procedures for settling and paying tort claims are set forth in AR 27–20, chapter 12. The ACIF will act as a 

disbursing agent for the payment of claims settled by claims approval and settlement authorities under the provisions of 

AR 27–20 or by the Department of Justice. 

c. RIMP will be notified of claims filed against NAFIs/entities as required by AR 27–20, paragraph 2–12e(4). 


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19–14. Tort claims 

a. Claims against NAFIs/entities as described in paragraph 19–13 will be investigated, processed, and settled by 

claims approval and settlement authorities using the procedures described in AR 27–20 and this regulation. Procedures 

for claims arising out of activities of FCC providers are outlined in AR 27–20 and paragraph 19–19 of this chapter. 

Separate procedures for claims arising from flying programs are outlined in paragraph 19–61. 

b. Generally, NAFIs/entities may not procure or pay for public liability insurance. Exceptions may be requested 

through the IMCOM Region to the Chief Financial Management Officer, FMWRC. 

c. Litigation will involve the following: 

(1) Civil action brought against a NAFI/entity, its officials, or employees, based on acts or omissions committed 

within the scope of their duties or employment, is reported per AR 27–40, chapter 2. Actions normally are defended by 

the Department of Justice, and legal representation is obtained as prescribed in AR 27–40. 

(2) If a Soldier, employee, or other authorized user of NAF property is sued individually because of an alleged act 

or omission committed while using NAF property, and if TJAG or designee determines the property was being used in 

the manner and for the purpose authorized, NAFs may be used to pay expenses incident to the suit, judgments, and 

compromise settlements. 

(3) The filing of such suits will be reported per AR 27–40. The report may include a request for authority to employ 

civilian counsel. Instructions will be issued that provide guidance to persons who might be sued individually in 

connection with the use of fund property. The instructions will direct the person, upon being served, to deliver the 

summons immediately to the responsible NAFI fund manager/entity administrator, to cooperate fully with the NAFI/ 

entity representative to defend against the suit, and to refrain from making any statement except as permitted by this 

regulation. 

(4) Only TJAG or a designee may authorize employing civilian counsel. 

(5) If authority to employ civilian counsel is granted, TJAG or a designee will— 

(a) Issue instructions to attorneys who are employed pursuant to this authority. 

(b) Determine whether a compromise offer should be accepted and paid. 

(c) Determine whether satisfaction of the judgment rendered against the individual sued is properly the responsibility 

of the NAFI/entity involved. 

(6) Upon certification by TJAG or designee that payment of attorney fees, litigation expenses, compromises, and 

judgments is proper, payment will be made per AR 27–20, chapter 12. Expenses incident to suits arising out of the 

operations of NAFIs/entities, other than those of the AAFES, are paid by the ACIF. 

19–15. Investigation of claims: fund manager’s/entity administrator’s role 

a. Any incident involving personal injury or property damage can result in a claim. Even where no injury or damage 

is apparent, established claims procedures will be followed in the event a claim is filed at some future date. Any 

incident that may potentially cause a claim will require the guidance of the local SJA. 

b. Fund managers/entity administrators will establish local procedures to ensure— 

(1) All incidents are reported to the fund manager. 

(2) Employees understand the importance of recording relevant information such as date, time, and place of 

incident; injured person’s name, address and phone number; names of witnesses; condition of premises; nature of 

injury or damage to property; and any statements made by persons involved. 

c. Upon learning of any incident that may result in a claim, the fund manager/entity administrator must— 

(1) Notify the appropriate claims judge advocate (CJA). 

(2) Provide the CJA with all relevant information recorded at the time the incident occurred. The fund manager/ 

entity administrator will also report other information which may have a bearing on the incident. Such information will 

include specific instructions or warnings provided to patrons; documented efforts to repair known defects; and 

agreements with patrons, such as rental agreements, waivers, and hold harmless agreements used with recreational 

equipment and facilities or in conjunction with particular activities. 

(3) Notify the ACIF (address in paragraph 19–3) within 24 hours of all incidents involving death or serious injury 

requiring hospitalization. 

(4) Direct all communication and correspondence regarding the incident or claim to the appropriate CJA. Fund 

managers/entity administrators have no authority to pay bills or expenses related to a claim or to attempt to settle a 

claim. 

(5) Follow procedures for payment of claims set forth in paragraph 19–18. 

d. Separate procedures apply for incidents and claims arising from flying and parachute programs. Guidance is 

located in paragraph 19–61. 


19–16. Claims by employees 

Claims by employees of NAFIs/entities for loss, damage, or destruction of personal property incident to their 

employment will be investigated and processed per AR 27–20, chapters 2, 11, and 12. 

19–17. Contract claims 

The SJA will be consulted when it is unclear whether a case should be processed as a contract claim under AR 215–4 

or as a tort claim under AR 27–20. 

19–18. Payment of claims 

a. The settlement or approving authority responsible for adjudicating the claim will determine whether a claim is 

payable or not, what amount is to be paid, and whether payment is to be made from NAFs or APFs. 

b. Procedures for payment are outlined in AR 27–20. 

(1) Valid claims of $100.00 or less will be paid by the NAFI/entity sustaining the loss. 

(2) Valid claims in excess of $100.00 will be sent by the CJA to the ACIF for payment in full if approved by the 

settlement authority. Payment will not be made by the NAFI/entity. 

Section V 

Claims Against Family Child Care Providers 

19–19. Establishment of Family child care Tort Claims Program activities 

Effective 1 October 1985, RIMP established a program to provide payment of certain tort claims arising from the 

activities of FCC providers. To be cognizable, claims must arise from child care programs provided as part of the 

quarters-based system of child care authorized by AR 608–10. APFs are used to pay the FCC claims fund cost, per the 

Military Child Care Act. 

19–20. Claims 

a. The processing of claims arising from the activities of FCC providers while providing care under the FCC 

program is set forth in AR 27–20, chapter 12. Such claims generally will be limited to injuries or death to children 

receiving care under the FCC program because of the negligence on the part of the FCC provider, authorized members 

of that provider’s household, and approved substitute providers. A claim is not payable if it is based upon any death or 

injury arising out of any criminal act or omission or any otherwise intentional tort or intentional violation of applicable 

laws or regulations. Examples include assault, battery, indecent assault, rape, false imprisonment, false arrest, malicious 

prosecution, abuse of process, libel, slander, misrepresentation, deceit. Claims arising from the transportation of such 

children in motor vehicles and claims involving loss or damage of property are not cognizable. The total payment for 

all claims (including derivative claims) arising as a result of injury to or death of any one person will be limited to 

$500,000 for each incident. Continuous or repeated exposure to substantially similar general harmful activity or 

conditions will be treated as one incident for purposes of determining the limit of liability. 

b. The claims settlement or approving authority will determine the liability and the amount of the award. If a 

decision has to be made whether to pay from NAFs or APFs, the matter will be referred to the Army Claims Service at 

Commander, U.S. Army Claims Service, ATTN: JACS–TC, Fort Meade, Maryland 20755. If a claim is found 

meritorious and payable from NAFs, payment is made by RIMP per paragraph 19–14 and AR 27–20, chapter 12. Upon 

certification that costs are proper, payment will be made by RIMP. 

c. Claims authorities in the field may ask, through the Commander, U.S. Army Claims Service for an advisory 

opinion from the FMWRC prior to settling any claim arising under paragraph 19–20a, where it is not clear that the 

injured or deceased child was receiving care within the scope of the FCC program. 

19–21. Reporting requirements 

a. Injury. All incidents of personal injury and death to children under the care of a FCC provider will be reported by 

the FCC provider to the FCC director, who immediately will report to the local CJA. The CDS coordinator must 

cooperate with the CJA in investigating and resolving all claims. CDS coordinators will inform RIMP by letter within 

3 days, of any claim arising from the activities of FCC providers while providing care under the FCC program (exempt 

report, AR 335–15). 

b. Certified providers. The CDS coordinator will report the name, social security number, and date of certification 

for each fully or provisionally certified FCC provider at each garrison to RIMP as of 1 October of each year. This 

information will be used in a database of providers and assists in determining authorized NAF claims costs. Authorized 

FMWRC NAF claims costs associated with the FCC program will be determined by the Commander, FMWRC or a 

designee. Throughout the year, additional providers certified after 1 October will be reported to RIMP. Certified 

providers who transfer to another garrison, need not be reported by the new garrison until 1 October of the next year. 

19–22. Private insurance 

The RIMP program is intended to provide certain limited claims relief as described in AR 27–20, chapter 12. It is not a 


143

substitute for private liability insurance. Whether or not to carry private liability insurance is an independent business 

decision made by the FCC provider. 

Section VI 

Property Program 

19–23. Property program coverage 

a. The RIMP property program protects the value of assets acquired with NAF, including MWR USA/UFM funding 

practice purchases, or assets donated to a NAFI/entity, and the property leased or on loan to a NAFI/entity where the 

leasing agreement requires the NAFI/entity to have property insurance. The property program also covers the interest 

of the NAFI/entity in the real and business property of others in the care, custody, and control of the NAFI/entity; and 

the NAFI’s/entity’s liability imposed by law or assumed by contract for such property. To be insured, any assets owned 

by the NAFI/entity or assets for which the NAFI/entity is responsible by lease or contract will be properly reported to 

RIMP. A copy of the lease or contract will be sent to RIMP. Assets acquired directly with APF will not be insured 

under this program. 

b. Details of coverages are outlined in the following sections. RIMP will assist NAFIs/entities with other insurance 

requirements. 

c. General exclusions to the RIMP property program are outlined in paragraph 19–25. In addition, exclusions that 

apply to particular coverages are stated in the applicable section. Where a conflict exists between this regulation and a 

commercial insurance policy, the commercial insurance policy will take precedence. 

d. Coverage for buildings, improvements and betterments, and aircraft physical damage requires the NAFI/entity to 

submit an application for coverage to RIMP for approval. Coverage is not effective until the completed applications, 

DA Form 4316 and 4316–1, are approved by RIMP. Instructions for completing the forms are in the sections 

describing these coverages. 

e. Except where coverage is mandatory, the NAFI/entity does have the option not to insure its assets; however, 

NAFIs/entities should follow prudent business practices. Losses not insured become operating losses for the NAFI/ 

entity and may cause loss of income producing revenue or the dissolution of the NAFI/entity. 

19–24. Valuation of assets 

a. Values of buildings, betterments and improvements, contents, watercraft, vehicles, aircraft, and computers insured 

under RIMP are reported as full ACVs. Values reported to RIMP at original cost without depreciation factors may 

result in a higher premium for the NAFI/entity than if depreciation factors were applied. 

b. Values reported to RIMP at less than ACV will be subject to a pro rata coinsurance penalty at the time of 

adjustment. For example, if the contents of a building are reported as $50,000 and the value is actually $75,000, any 

loss will be adjusted on the basis of the ratio of insurance to actual value. In this case, two-thirds (66 percent) of any 

loss would be paid. 

19–25. Exclusions 

a. Excluded from coverage under the property program are losses caused by— 

(1) Nuclear reaction, nuclear radiation, and radioactive contamination, whether controlled or uncontrolled or coming 

from peaceful sources or weapons of war. 

(2) Hostile or warlike action during peace or war, declared or undeclared, by— 

(a) Attacking or defending forces. 

(b) Any authority or any air, naval, or military forces. 

(c) Any weapon of war. 

(d) Insurrection, rebellion, revolution, civil war, usurped power. 

(e) Any action taken by Government authorities to hinder, combat, or defend against such occurrences. 

(3) Mysterious disappearance (except for money and securities), short delivery, nondelivery, profit shortfall, or 

inventory shortage, unless reasonably presumed that the loss was caused by stealing. 

(4) Authorized destruction, demolition, or disposal. 

(5) The misplacing, mislaying, or forgetting of property or money by anyone in charge of it. 

(6) The outright neglect of management controls or physical security. 

b. The following are not insured under the RIMP property program: 

(1) Land, growing crops, standing timber and golf course grounds. Separate coverage is available for golf courses 

upon request to RIMP (see appendix L for golf course coverage). 

(2) Underground electrical and air-conditioning conduits, electrical or outdoor lead-in wiring. 

(3) Above and underground sprinkler systems. 

(4) Jewelry, watches, precious stones and metals, and furs. 


(5) Accounts receivable, time-element losses (such as business interruption, loss of revenue). Business interruption 

is available upon written request to RIMP. 

(6) Valuable papers, evidence of debt, accounts, bills, records, abstracts, deeds, manuscripts, or other documents. 

However, RIMP does cover such property when it is converted to data form and then only in that form. 

19–26. Property claims 

a. Deductible. All losses are subject to a $100 deductible. 

b. Notification. Notification requirements vary, depending on the type of loss and the estimated dollar value of the 

loss. 

(1) RIMP will be informed within 24 hours, by facsimile, e-mail, or telephone, of any loss under the self-insured 

programs when the entire loss exceeds $5,000, or of any in-flight accident of the Army flying or parachute program. 

Telephone reports will be confirmed within 48 hours by written notice of loss in memorandum format. 

(2) Notice by mail of loss of less than $5,000 will be in memorandum format. The information contained in 

paragraph 19–26c is required. Routine notices will be sent as soon as possible, but no later than 60 days, after a loss. 

Normally RIMP will not accept claims that are filed more than 60 days after knowing of the loss. 

(3) The CJA responsible for processing such claims will be informed if it is likely that tort claims against the NAFI/ 

entity may arise from the same event. 

(4) If a third party is involved in a loss, the fund manager/entity administrator may submit a property claim to RIMP 

without waiting for determination of responsibility. RIMP will settle the claim directly with the NAFI/entity. NAFIs/ 

entities should pursue recovery from the responsible party and seek guidance from the local SJA if assistance is 

needed. If restitution is received from a responsible third party, RIMP will be entitled to first recovery of any amount 

reimbursed. 

c. Notification format. Claims for losses covered under RIMP are sent to FMWRC at the address in paragraph 19–3 

(exempt report, AR 335–15). A memorandum to include the following information will be used to inform RIMP of a 

loss: 

(1) Garrison or IMCOM Region. 

(2) Name of business program within garrison MWR operating entity. 

(3) Name of fund manager/entity administrator and DSN or commercial telephone number. 

(4) Date, time, and place of loss. 

(5) Brief description of what happened. 

(6) Estimated loss (in dollars). 

d. Proof of loss. 

(1) RIMP will acknowledge all claims reported by advising the fund manager/entity administrator of the assigned 

claim number and which documents are required as Proof of Loss. The documents required for each claim will vary, 

depending on the type of loss. Examples of documents requested as Proof of Loss may include— 

(a) Investigative reports, such as MP reports, CID reports, reports of investigation, fire or traffic accident reports. 

(b) Supporting documents to prove the amount of loss, such as repair or replacement estimates, DD Form 1844 (List 

of Property and Claims Analysis Chart) (AR 27–20, chap 11)), an audit by a disinterested party, or a statement from 

the CAO (to confirm the exact amount of money missing). 

(c) Information to confirm coverage, such as vehicle serial number, aircraft N number, or building number. 

(d) A statement by the fund manager/entity administrator stating whether the loss could have been prevented and 

what action has been taken to prevent a similar loss in the future. 

(2) The completed Proof of Loss will be mailed to the RIMP within 90 days after the date of the loss. The claim 

will be closed without payment if the documents required as Proof of Loss are not submitted within 90 days. If 

obtaining the documents is difficult, an extension may be requested in writing before the deadline. The fund manager/ 

entity administrator will sign the Proof of Loss and will send it to RIMP. 

e. Claim numbers. 

(1) After receiving the notice of loss, RIMP will assign a claim number to it and inform the NAFI fund manager/ 

garrison MWR operating entity administrator who sustained the loss. All future correspondence about the loss between 

the NAFI/entity and RIMP will contain this number. 

(2) The program filing a claim will maintain a record of the claim. Records are kept until the claim is processed and 

a closing notice is received from RIMP. The closing notice will include a payment or a statement that the claim was 

judged nonpayable. 

f. Investigation of losses. 

(1) Investigation of property and casualty losses are conducted as prescribed in chapter 18. 

(2) For unusual property or casualty losses, RIMP may send a representative to review and recommend how to 

handle the loss. 

g. Adjustment of property losses. 

(1) RIMP will adjust claims against the property program. 


145

(2) For loss or damage, each claim will be adjusted separately. From the total of claims arising from the same event, 

$100 will be deducted and borne by the NAFI/entity. Deductible amounts for aircraft physical damage are detailed in 

Section XI, this chapter. 

(3) The basis for adjusting loss will be the ACV of the damaged or destroyed property. Losses will be paid to the 

NAFI/entity. In overseas areas the foreign exchange rate in effect at the time of the loss is used to determine the U.S. 

dollar equivalent. 

(4) RIMP may adjust severe or unusual losses by using professional adjustment organizations. 

(5) RIMP will use the depreciation guide at table 19–1 to help establish the ACV of property at the time of a loss. 

RIMP uses a national automobile valuation guide in the case of a total loss of a vehicle. 

Table 19–1 

Depreciation guide 

Percent of depreciation 

No. Item Per year Flat rate Maximum Remarks 

1 Air conditioners See items 13, 14, 15, and 16, electrical and 

gas appliances 

2 Automobile tire 30 75 Compute depreciation based on miles 

used/30,000 miles or miles used/mileage 

guarantee ratio if known; otherwise use 

30% per year 

3 Boating and motors (including outboard 

motors) 

4 Boating equipment and supplies (exclusive 

of motors) 

Varies 

20 75 

Use local boat retail values 

5 Bric-a-brac (all types) 10 Includes inexpensive figurines, sculptures, 

and ornamental or sentimental items, as 

distinguished from expensive objects of art 

6 Camping equipment and supplies (including 

tents, sleeping bags, backpacks, 

shovels, and other tools, lanterns, etc.) 

7 Computers 20 75 

8 Computer peripherals, software, and accessories 

10 75 Camping cutlery is included. Camping 

clothing is not included 

10 75 

9 Crockery (dishes, pottery, and glassware) 10 Do not include fine china, crystal, or expensive 

cut glass 

10 Plastic ware 10 75 

11 Drapes 10 75 

12 Curtain rods, venetian blinds 5 75 

13 Electrical and gas appliances See items 13, 14, 15, and 16. See item 37 

for stereo systems and tape recorders. See 

item 39 for video recorders 

14 Minor appliances ($200 or less) 10 

15 Major appliances (over $200, except 

those in item 16) 

16 Televisions, washers, dryers, hot tubs, 

electronic games, pinball machines, dishwashers, 

spas 

5 75 

10 75 Depreciate television picture tubes 10% per 

year for the first 3 years and 5% per year 

thereafter, up to a maximum of 75% 

17 Furniture (including beds) 5 50 Take no depreciation on antique furniture 

or expensive, solid wood furniture such as 

cherry, walnut, teak, rosewood, oak, etc., 

except for replacement of fabric. Do not 

confuse solid wood with finishes, stains, veneers, 

etc. Kitchen table and chair sets are 

considered one item. Consider each wall 

unit as one item 

18 Infant, lawn, and patio furniture 10 75 Includes cribs, children’s beds, etc. 


Table 19–1 

Depreciation guide—Continued 

19 Game equipment 25 Includes poker chips, chess, backgammon, 

and similar sets, as distinguished from children’s 

toys and games 

20 Garden equipment (all implements 

needed for lawns and yards including 

lawn mowers) 

21 Kitchen utensils—heavy aluminum, copper, 

corning ware, cast iron, stainless 

steel, etc. 

10 75 See item 18 for lawn furniture 

5 50 All long-lasting kitchen tools should be considered 

in this category. 

22 Kitchen utensils—other items 20 75 Items such as potato peelers, cooling racks, 

ice picks, bowl scrapers, or other items 

described in advertisements as “kitchen 

gadgets” should be considered in this category 

23 Lamps (including sunlamps) 5 75 The higher rate applies when lamp shades 

are claimed separately. However, if shades 

are made of glass of any type, apply the 

5% depreciation 

24 Pianos, organs, player pianos 5 75 Includes amplifiers and accessories 

25 Other musical instruments under $100 20 75 Includes amplifiers and accessories 

26 Other musical instruments $100–$250 10 75 Includes amplifiers and accessories 

27 Other musical instruments over $250 5 75 Includes amplifiers and accessories 

28 Office furnishings 10 75 Includes calculators, radios, paintings, 

plants, etc. 

29 Painting and pictures (including photographic 

portraits, etchings, hand reproduced 

pictures, lithographic prints, etc.) 

10 Take no depreciation on paintings valued in 

excess of $750 

30 Phonograph records; compact disks 10 50 See items 38 and 39 for tapes 

31 Photographic equipment (cameras, 

screens, lenses, projectors, etc.)—Inexpensive, 

$100 or less 

32 Photographic equipment (cameras, 

screens, lenses, projectors, and so on)— 

Expensive, over $100 

10 75 See item 46 for video cameras and accessories 

5 75 See item 46 for video cameras and accessories 

33 Rugs, under $500 10 75 

34 Rugs, $500–$999 5 50 

35 Rugs, $1,000 or more 2 25 

36 Sports equipment and supplies (including 

uniforms and riding togs as well as basketball, 

baseball, football, croquet, bowling, 

badminton, volleyball, skiing, tennis, 

scuba, golf, and other equipment) 

10 75 Take no depreciation on unopened or unused 

boxes of golf balls or canisters of tennis 

balls. See item 6 for camping equipment 

37 Stereo items and accessories 5 75 Includes styli, dust covers, tape recorders, 

speakers, amplifiers, turntables, etc. See 

items 38 and 39 for tapes and item 46 for 

video recorders 

38 Audio tapes, blank or commercially recorded; 

DVDs 

39 Video tapes, blank or commercially recorded 

10 75 

10 50 

40 Television sets See items 13, 14, 15, 16 for electrical and 

gas appliances 

41 Telephones and telephone answering 

equipment 

42 Manual tools—tools, tool chests, and tool 

boxes not stored in a vehicle 

10 75 

5 50 


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Table 19–1 

Depreciation guide—Continued 

43 Power tools—tools, tool chests, and tool 

boxes not stored in a vehicle 

44 Tool chests—tools, tool chests, and tool 

boxes not stores in a vehicle 

10 75 

5 75 

45 Typewriters 5 75 

46 Video recorders, video cameras, and accessory 

equipment 

5 75 See item 39 for video tapes 

Notes: 

1 This depreciation guide has been compiled from information provided by the U.S. Army Claims Service, Fort Meade, MD, and is the primary reference 

used by the ACIF in adjusting claims. Because other factors may affect the actual depreciation rate in specific cases, it should be used only for general information. 

Fund managers/entity administrators may also use these depreciation factors when valuing NAF assets for insurance purposes. 

Section VII 

Buildings and Contents 

19–27. Coverage 

This program provides coverage for buildings, improvements and betterments to buildings, and contents that are 

purchased with NAF. Coverage is provided against all risks of physical loss or damage from any external source, 

subject to exclusions stated in paragraphs 19–25 and 19–35. Buildings, improvements and betterments, and contents are 

insured at ACV. All requests for insurance for buildings and improvements and betterments will be submitted to RIMP 

on DA Form 4316. (Guidance for valuing buildings and contents is in paragraphs 19–31 and 19–33 below.) Replacement 

cost insurance is not available. 

19–28. Building requirements 

a. Buildings consist of the foundations, walls, ceilings, roof, floors, and built-in or attached equipment that are 

permanent parts of the building. Improvements and betterments are alterations to a building that become a permanent 

part of the building. Examples of permanent equipment for both buildings and improvements and betterments are— 

(1) Utility connections. 

(2) Furniture, cabinets, and shelving. 

(3) Venetian blinds, shades, window screens, and screen doors. 

(4) Elevators and escalators. 

(5) Drinking water coolers. 

(6) Telephone, fire, alarm, and intercom systems. 

(7) Protective construction features, such as awnings. 

(8) Theater seats, church pews, and pulpit. 

(9) Heating, ventilating, and air-conditioning installations (but not portable or window units). 

(10) Food preparation and serving equipment. 

(11) Electrical generators and incinerators. 

(12) Dishwashers, hoods, and vents. 

(13) Refrigerators and freezers. 

(14) Bowling lanes, including seating and pinsetting equipment. 

(15) Awnings or canopies. 

(16) Stained glass windows. 

b. Permanent structures such as stand-alone storage sheds and picnic pavilions are considered buildings. To insure 

this type of structure, DA Form 4316 will be submitted for approval by RIMP. 

c. Mobile homes fixed in place and not self-propelled may be insured under this program as buildings. 

d. Assets such as exterior and neon signs, large billboards, awnings, and canopies normally considered parts of a 

building may be insured if DA Form 4316 is completed with a description and value of the property. 

e. Assets such as fences, swimming pools, tennis courts, lighting for athletic fields may be insured if DA Form 4316 

is completed with a description and value of the property. 

f. Property insured under this program will be covered while being carried in NAFI/entity-owned or -leased vehicles. 


19–29. Buildings insured 

a. All buildings or improvements constructed or altered with NAFs meeting the definition of NAF major construction 

will be insured for the useful life of the building. Buildings and improvements of a lesser value than prescribed for 

NAF major construction may be insured at the option of the fund manager/entity administrator. 

b. Civilian NAFIs may insure NAF buildings or improvements if approved by the ACWF Board of Directors. 

c. When international agreements require that NAFIs/entities insure used nonowned buildings in foreign nations, the 

Chief Financial Management Officer, FMWRC, will authorize such insurance. 

19–30. Insurance for buildings, improvements, and betterments 

a. Insurance for buildings, or improvements and betterments to buildings will not go into effect until— 

(1) The NAFI fund manager/entity administrator will complete DA Form 4316. The improvements and betterments 

will be described in the remarks section of the form. 

(2) RIMP confirms that the insurance is in force. 

b. To increase or decrease the amount of insurance on a building, the fund manager/entity administrator must submit 

a new application. 

c. The amount of insurance will be the ACV of the building. As part of the annual Review of Insured Exposures, the 

fund manager/entity administrator will receive a copy of DA Form 4316 showing the data currently recorded for each 

insured building. RIMP will provide a formula for establishing the ACV of each building on the DA Form 4316, on the 

basis of updated building costs per square foot and local area cost factors. The fund manager/entity administrator may 

accept the ACV as computed or may request a different ACV with supporting justification. 

d. Improvements and betterments will be insured at full ACV. 

19–31. Building valuations 

a. The costs to build new types of buildings will be obtained from the Army Corps of Engineers (ACOE). RIMP 

will use these costs to value buildings insured under the RIMP. Fund managers/entity administrators will insure 

buildings for ACV. 

b. ACV will be computed by subtracting the known depreciation from the replacement cost. 

c. RIMP may also help to estimate the ACV of buildings. First, find the replacement cost. The building costs per 

square foot (permanent construction) as of 2003 are shown in table 19–2. 

d. To apply to decreased value, RIMP uses straight line depreciation based on the useful life for construction as 

shown in table 19–3. 

Table 19–2 

Building costs, per square foot 

Facility: Bowling Center 

Cost: $151.00 (8 lanes, with pin spotting equipment and automatic scoring device) 

Facility: Officers’ Club 

Cost: $192.00 

Facility: NCO Club 

Cost: $192.00 

Facility: Lodging Facilities 

Cost: $131.00 

Facility: Autocraft Center 

Cost: $110.00 

Facility: Youth Center 

Cost: $122.00 

Facility: Golf Club House 

Cost: $127.00 

Notes: 

1 For semipermanent construction, use 90 percent of the above values, and for temporary construction, use 60 percent. The area of the building in square feet will 

show a replacement cost figure. A brick NCO club of 10,000 square feet has a replacement cost of $1,890,000. These costs are increasing about 10 percent per 

year. 


149

Table 19–3 

Straight line depreciation 

Construction: Frame 

Depreciation: 30 years 

Construction: Masonry 


Construction: Fire-resistive (concrete) 


Notes: 

1 A 10-year old brick NCO club with a replacement cost of $1,890,000 would have an ACV of $1,470,420 (10/45 = .222 depreciation) (1.000 – .222 = .778 ACV) 

($1,890,000 X .778 = $1,470,420). It does not matter that the actual construction cost 10 years ago may have been $1,000,000. The depreciation rates have no 

connection with depreciation schedules required by DOD 7000.14–R, volume 13. 

e. NAF-funded buildings will be insured for the full ACV of the building and not for the amount of initial 

construction cost. If insured for an amount less than the ACV, any loss is adjusted based on the ratio of actual 

insurance to actual value. If a building worth $500,000 (ACV) is insured for a lower amount (say $300,000), any loss 

will be settled based on three-fifths of the loss (insurance carried divided by ACV). (For example, a $100,000 loss will 

be settled for $60,000). The full amount of insurance will be paid only for a total loss. 

f. The building costs per square foot above will apply only to buildings in the United States. NAFIs/entities overseas 

will consult the Army Corps of Engineers or other sources to determine local construction rates and any other factors 

that would affect the cost per square foot of construction. 

19–32. Insured contents 

The property program will insure NAFI/entity-owned (including MWR USA/UFM funding practice purchases) or 

leased— 

a. Contents of buildings (such as furniture, fixtures, and carpets) used during occupancy. 

b. Stock used for resale activities (such as food, beverages, books, and audio equipment). 

c. Property while being carried in NAFI/entity-owned or -leased vehicles. 

d. Fine arts, including paintings, etchings, pictures, tapestries, art glass windows, and other bona fide works of art or 

rarity, historical value, or artistic merit may be insured with the RIMP. If the value of the item exceeds $5,000, a 

description of the item and a current appraisal are required. 

19–33. Contents valuation 

a. Contents will be insured for ACV. To determine value of property under this section, the replacement cost is 

determined and depreciation is then deducted. The resultant figure will equal the ACV. The depreciation guide at table 

19–1 may also be used. 

b. NAFIs/entities may use a straight-line depreciation schedule, normally 10 percent per year. If fixed asset values 

are reported to RIMP, contents will probably be underinsured so that NAFIs/entities get the replacement costs for their 

property, apply depreciation factors as they would be used in the event of a loss (para 19–26g), and report ACVs to 

RIMP for insurance coverage. 

c. Inventory held for resale will be valued at the wholesale price paid by the NAFI/entity and not the expected resale 

price. 

d. In the event of a loss, the fund manager/entity administrator is required to provide the date of original purchase, 

acquisition cost, and replacement cost for items destroyed or damaged. RIMP may elect to replace the damaged or 

destroyed property. If damaged property is sold for salvage, the salvage income will be used to reduce the loss. 

19–34. Perils insured 

This program insures NAF buildings, improvements and betterments, and contents against all risks of direct physical 

loss or damage from any external cause subject to exclusions stated below. 

19–35. Perils excluded 

a. This program does not insure against loss or damage caused by or resulting from— 

(1) Fraudulent or dishonest acts committed by any employees of a NAFI/entity with the intent to cause loss or 

obtain financial benefit. 

(2) Any unexplained loss, mysterious disappearance, or loss or shortage disclosed on taking inventory. 

(3) The cost of making good defective design or specifications, faulty workmanship, or faulty material, unless loss 

by a peril not excluded in this program ensues, and then RIMP will be liable for only such ensuing loss. 

(4) Explosion, rupture, bursting, cracking, burning, or bulging of steam boilers, steam turbines, steam engines, gas 


turbines, pressure vessels, or piping, or apparatus attached to and forming a part thereof, owned, operated, or controlled 

by the NAFI/entity, except explosion of accumulated gases or unconsumed fuel within the firebox (or the combustion 

chamber) of any fired vessel, other than gas turbines, or within the flues or passages which conduct the gases of 

combustion therefrom. 

(5) Electrical arcing, injury, or disturbance to electrical appliances, devices, fixtures, wiring, or other electrical 

equipment except for loss from ensuing fire and RIMP is liable only for such loss. 

(6) Ordinary wear and tear or gradual deterioration, rust or corrosion, fungus, decay, wet or dry rot, mold, inherent 

vice or latent defect or any quality in the property that causes it to damage or destroy itself, unless loss or damage from 

a peril insured herein ensues, and then RIMP will cover such ensuing loss or damage. 

(7) Errors in processing or manufacture of the NAFI’s/entity’s product. However, any damage to goods, which 

ensues from any peril insured, is covered by this program. 

(8) Loss of market, business interruption, or extra expense because of delay with respect to property in transit. 

(9) Normal settling, bulging, cracking, shrinking of foundations, walls, floors, or ceilings unless loss from a peril 

insured by RIMP ensues. 

(10) Loss or damage resulting from freezing of plumbing or heating or fire protection systems in vacant or 

unoccupied buildings. Unless at the time of loss, normal utility service, including heating, is maintained. All prudent 

and reasonable efforts must be made to safeguard the property from hazards that may be increased because of the 

building being vacant and unoccupied. 

(11) Loss caused by theft from an unattended vehicle unless all openings into the vehicle are closed and locked, 

entry is by force, and there are visible marks of forced entry on the outside of the vehicle. 

(12) Loss or damage caused by, resulting from, contributed to, or made worse by actual or threatened release, 

discharge, escape, or dispersal of contaminants or pollutants, all whether direct or indirect, proximate or remote, or in 

whole or in part caused by, contributed to, or aggravated by any physical damage insured by RIMP unless loss or 

damage from a peril insured otherwise by RIMP ensues, and then RIMP will be liable for such ensuing damage. 

(a) Contaminants or pollutants mean any material that, after its release, can cause or threaten damage to human 

health or human welfare or can cause or threaten damage, deterioration, loss of value, marketability, or loss of use to 

property insured under the RIMP property program, including, but not limited to bacteria, fungi, virus, or hazardous 

substances. 

(b) This exclusion will not apply when loss or damage is directly caused by fire, lightning, aircraft impact, 

explosion, strikes, riot, civil commotion, smoke, vehicle impact, windstorm, hail, vandalism, malicious mischief, 

meteorite impact, collapse, earthquake, landslide, floods, volcanic action, or tsunami. This exclusion will also not apply 

when loss or damage is directly caused by leakage or accidental discharge from automatic fire protection systems, nor 

loss caused by burst pipes. 

(13) Mechanical breakdown, malfunction, rupture or bursting caused by centrifugal force, to property owned, 

operated, or controlled by the NAFIs/entities, unless loss or damage from a peril insured herein ensues, and then RIMP 

will cover such ensuing loss of damage. 

(14) Contamination, evaporation, dampness, or dryness of atmosphere, changes in or extreme temperatures, changes 

in flavor, color, texture, or finish, unless loss or damage from a peril insured herein ensures, and then RIMP will cover 

such ensuing loss or damage. 

(15) Exposure to rain, sleet, snow, sand, dust, or ice to personal property in the open. 

(16) Continuous or repeated seepage, leakage, or flow of water that occurs over a period of 14 days or more. 

(17) Losses excluded by paragraph 19–25. 

b. In the event of a conflict between this regulation and the commercial insurance policies, the conditions of the 

commercial insurance policies will take precedence. 

19–36. Claims 

Losses are reported as required in paragraph 19–26. 

19–37. Limits of liability 

a. For buildings and betterments and improvements, RIMP is not liable for more than the amount of insurance 

approved on DA Form 4316. 

b. For contents, RIMP will pay the ACV of the asset at the time of the loss or the amount listed by the NAFI/entity 

on the Review of Insured Exposures, whichever is less. 

Section VIII 

Other Exposures 

19–38. Docks, wharves, and piers 

a. Eligibility for insurance. Docks, floating docks, wharves, and piers may be insured under this section. 


151

. Coverage. Coverage for docks, floating docks, wharves, and piers will insure against all risks of physical loss or 

damage from any external cause subject to the exclusions outlined below. 

c. Exclusions. Excluded from coverage for docks, floating docks, wharves, and piers are losses caused by— 

(1) Freezing or thawing. 

(2) Impact of watercraft. 

(3) Pressure or weight of ice or water whether driven by wind or not. 

(4) Losses excluded by paragraphs 19–25aand 19–35, and property limitations outlined in paragraph 19–25b. 

d. Valuation. Valuation of docks, floating docks, wharves, and piers will be ACV. Requests for insurance for docks, 

floating docks, wharves, and piers must be submitted on DA Form 4316 and approved by the RIMP. 

19–39. Watercraft 

a. Coverage. This program insures recreational watercraft (including inboard and outboard motors, sailing craft 

whether auxiliary powered or not, rowboats, and canoes) against all risks of physical loss or damage from any external 

cause, except as stated below. 

b. Exclusions. Excluded from coverage are losses caused by— 

(1) Operating the insured watercraft in any official or unofficial race or speed test. 

(2) Ice or freezing. 

(3) Failure of the NAFI/entity to maintain the watercraft in a seaworthy condition. 

(4) Losses excluded by paragraphs 19–25 and 19–35. 

c. Valuation. Watercraft must be insured for ACV or market value of the watercraft. Watercraft and boat motors are 

separately identified on the Review of Insured Exposures, including the make, model, and serial number of the 

watercraft or motor. Watercraft accessories such as life jackets and other equipment will be included in general 

contents values. 

19–40. Recreational animals 

This program insures animals of recreational programs against all risks of physical loss or damage from any external 

cause, subject to the exclusions outlined in paragraphs 19–25 and 19–35. Each animal will not be insured for more than 

$2,500. Description or name of the animal and value will be listed on the Review of Insured Exposures. If the value 

exceeds $2,500, a professional appraisal will be required. 

19–41. Other insurance 

a. Business interruption coverage. Business interruption coverage is available for property insured by RIMP to 

protect against loss of revenue resulting from covered perils. Business interruption will cover loss of revenue plus 

c o n t i n u i n g e x p e n s e s , i n c l u d i n g p a y r o l l . F u n d m a n a g e r s / e n t i t y a d m i n i s t r a t o r s w i l l c o n t a c t R I M P f o r a p p l i c a t i o n 

procedures. 

b. Special golf course policy. A separate policy available for golf courses will provide coverage for exposures of 

golf courses otherwise excluded under the RIMP property program. Fund managers/entity administrators will contact 

RIMP for application procedures. 

19–42. Special events insurance 

a. RIMP is also able to assist NAFIs/entities with other specialized coverages for special events and prizes. 

(1) Weather insurance protects NAFIs/entities against loss of revenue related to outdoor events. 

(2) Nonperformance/event cancellation insurance provides coverage for events outside the control of the NAFI/ 

entity that result in nonperformance or cancellation of scheduled events. 

(3) Hole-in-one insurance covers prizes for golf tournaments. 

(4) Prize/jackpot coverage can be obtained for many different types of events, such as bowling tournaments or bingo 

jackpots. 

b. A separate request is required to obtain special event coverage, such as bingo jackpots or hole-in-one prizes. 

NAFI fund managers/entity administrators will contact RIMP regarding application procedures. RIMP will assist 

NAFIs/entities with other coverage needs upon request. 

Section IX 

Information Systems 

19–43. Property covered 

a. Electronic equipment and component parts, including data processing systems and similar property of others in 

the care, custody, and control of the NAFI/entity for which the NAFI/entity is responsible will be covered. 

b. Electronic media, including converted data owned by the NAFI/entity and similar property of others in the care, 

custody, and control of the NAFI/entity for which the NAFI/entity is responsible will be covered. Electronic media 


means all forms of data, including computer instructions and programs converted to a form usable in computer 

operations. This includes the materials on which the data are recorded. 

c. Reporting requirements include the following: 

(1) Computer values must be reported to RIMP to be insured. Newly acquired computer hardware and software 

must be reported to RIMP within 30 days. The fund manager/entity administrator must provide the item description, 

serial number, ACV, and building location for each piece of hardware and software to be insured. 

(2) When reporting coverage on the Review of Insured Exposures, computer hardware and software will be reported 

separately and the total insured value for each building location will be shown. A separate sheet itemizing hardware 

and software by building location will be attached. 

d. Coverage will apply at locations listed on the Review of Insured Exposures and temporarily at other locations. 

e. RIMP will cover duplicate and backup electronic media for up to $50,000 at any one backup location. This 

coverage will apply only to a separate storage location at least 100 feet from a location listed on the Review of Insured 

Exposures. 

19–44. Property excluded 

The following property is excluded: 

a. Accounts, bills, evidences of debt, valuable papers, records, abstracts, deeds, manuscripts, or other documents, 

except when such property is converted to data form and then only in that form. 

b. Data or media that cannot be replaced with others of the same kind and quality, except when such property is 

listed for coverage on the Review of Insured Exposures and is specifically described. 

c. Property loaned, leased, or rented to others while away from NAFI/entity premises. 


Risks of direct physical loss to covered property are subject to the exclusions stated in paragraph 19–46 and paragraphs 

19–25 and 19–35. 


This program does not insure against loss caused by or resulting from— 

a. Delay, loss of use, loss of market, or any other consequential loss. 

b. Wear and tear, any quality in the property that causes it to damage or destroy itself, hidden or latent defect, 

gradual deterioration, depreciation; or insects, vermin, or rodents. 

c. Dishonest, fraudulent, or criminal acts by employees whether acting alone or in collusion with other persons. 

d. Any covered cause of loss for which the NAFI/entity is not responsible under the terms of any lease or rental 

agreement. 

e. Corrosion, rust, dampness, or dryness, cold or heat. 

f. Interruption of electrical power supply, power surge, blackout, or brownout if the cause of such occurrence took 

place more than 1,000 feet from the premises. 

g. Electrical or magnetic injury, disturbance, or erasure of electronic recordings, if the cause of such occurrence took 

place more than 1,000 feet from the premises. 

h. Release, discharge, or dispersal of pollutants. 

i. Seizure or destruction of property by order of Governmental authority, except as ordered by Governmental 

authority and taken at the time of a fire to prevent its spread. 

j. Nuclear hazard, to include— 

(1) Any weapon employing atomic fission or fusion. 

(2) Nuclear reaction or radiation, or radioactive contamination from any cause. But direct “loss” caused by resulting 

fire is payable if the fire would be covered under this program. 

k. War and military action. 

(1) War, including undeclared or civil war. 

(2) Warlike action by a military force, including action in hindering or defending against an actual or expected 

attack, by any Government, sovereign, or other authority using military personnel or other agents. 

(3) Insurrection, rebellion, revolution, usurped power, or action taken by Governmental authority in hindering or 

defending against any of these. 

19–47. Limit of liability 

a. Coverage will apply for up to but not more than the amounts reported to RIMP for coverage. 

b. RIMP will pay up to the ACV at the time of the loss of the damaged property, but no more than the cost of 

repairing or replacing the property with material of the same quality. In the event of loss, the value of property is 

determined as of the time of loss. 


153

c. For electronic media, the value will be the actual cost of reproducing the data and the cost of the media, as 

reported to RIMP, but no more than the insured value. 

d. When data are not reproduced, RIMP will pay no more than the cost of blank discs, films, tapes, or similar 

electronic data processing media, of the same kind and quality. 

19–48. Deductible 

Each claim for loss or damage will be adjusted separately, and from the amount of each claim, the sum of $100 will be 

deducted. 

Section X 

Vehicles 

19–49. Types of vehicles 

This program will cover all vehicles licensed for use on public roads, to include automobiles, trucks, tractors, and 

mobile homes; trailers designed and intended for use with such vehicles; motorcycles, motor scooters, and mopeds; and 

unlicensed vehicles used in MWR programs, such as golf carts, self-propelled lawn mowers, forklifts, and snowmobiles. 

It also will cover motor vehicles obtained from DRMO. 

19–50. Vehicles insured 

a. Insurance provided by this program will cover— 

(1) Motor vehicles owned by a NAFI/entity. 

(2) Vehicles leased to a NAFI/entity where the lease agreement requires the NAFI/entity to insure against physical 

damage. A copy of the lease agreement or contract must be sent to RIMP for review. 

b. Registration of a vehicle with RIMP as described in chapter 13 does not automatically provide physical damage 

insurance. The fund manager/entity administrator must request physical damage insurance and state the amount of 

coverage required. 

c. Each vehicle requiring insurance will be listed separately on the Review of Insured Exposures as explained in 

paragraph 19–6. Each entry must include the make, model, and VIN. 


a. Each vehicle will be insured at ACV. Claims will be settled on the basis of ACV or the current value listed in a 

national automobile valuation guide. 

b. Liability will be limited to the ACV declared on the Review of Insured Exposures or the national automobile 

valuation guide, whichever is less. 


a. Collision of the insured vehicle with another object. 

b. Upset of the vehicle. 

c. Comprehensive loss or damage. This includes only— 

(1) Breakage of glass. 

(2) Losses caused by missiles, falling objects, fire, lightning, theft or larceny, explosion, earthquake, windstorm, 

hail, water, flood, vandalism and malicious mischief, riot, and civil commotion. 

(3) Collision with a bird or animal. 


In addition to the general exclusions listed in paragraph 19–25, this program will not insure against— 

a. Damage due to and confined to wear and tear, freezing, or mechanical or electrical breakdown or failure. Damage 

that is the result of other loss covered under this program will not be excluded. 

b. Loss of personal effects or clothing. 

c. Loss to tires unless by fire or theft, or loss or damage at the same time and from the same cause as other loss 

covered under this program. 

d. Loss or damage to any— 

(1) Device or instrument designed to record or reproduce sound, unless permanently installed, including mobile 

phones. 

(2) Tape, wire, record, disk, or other medium used with a sound recording or reproduction device or instrument. 


Section XI 

Aircraft Hull 

19–54. Types of aircraft covered 

This program covers all aircraft owned or leased by Army flying programs. It does not include Government-owned 

aircraft or aircraft owned, rented, or leased by private organizations authorized to operate on installations under 

provisions of DODI 1000.15 and AR 210–22. 


a. Aircraft purchased in whole or in part using a bank loan or other financing must be insured under this program 

until the loan or financing is paid in full. 

b. Aircraft owned outright may be insured at the option of the fund manager/entity administrator. Considering the 

value of aircraft and the potential impact on the fund in the event of a loss, participation in the program is encouraged. 

c. RIMP may insure leased aircraft when insurance is not provided by the lessor. Leases providing for insurance will 

be structured to identify the portion of lease costs attributable to insurance. 

19–56. Application 

a. In addition to listing aircraft on the Review of Insured Exposures, fund managers/entity administrators must 

complete DA Form 4316–1 for each aircraft to be insured. 

b. A separate application will be submitted for each aircraft. 

c. Aircraft will be insured by commercial insurance obtained by RIMP. 

19–57. Valuation 

a. Aircraft must be insured at ACV. 

b. Present value will be determined from generally accepted used aircraft price guides. Prices will be adjusted as 

necessary to reflect the value of new or additional equipment installed in the aircraft. 

c. The adjusted value will be shown on DA Form 4316–1 in block 13. 

d. Losses to aircraft will be adjusted based on ACV. Appraisals and price guides may be used in determining the 

extent of liability. 


This program will insure against all risks of loss, damage, or destruction except as specifically excluded. 


In addition to the general exclusions listed in paragraph 19–25, this program will not insure against— 

a. Damage due to and confined to wear and tear. 

b. Damage caused by freezing. 

c. Damage caused by mechanical or electrical breakdown or failure except as otherwise covered. 

d. In-flight losses attributable to— 

(1) Violations of airworthiness or pilot certificates. 

(2) Use of an aircraft for racing, hunting, or any flying that requires a Federal Aviation Administration (FAA) 

waiver. 

(3) Knowingly operating an aircraft in violation of FAA or applicable Army regulations. 

19–60. Property excluded 

Coverage does not extend to— 

a. Property being transported within an aircraft. 

b. Flight information publications, such as maps and charts. 

c. Portable navigation equipment. 

d. Spare parts not installed on the airframe. 

e. Tires, unless loss or damage is caused by theft, vandalism or malicious mischief, or other covered risk. 

f. Aircraft valued at more than $250,000. 

g. Any turbo-prop or turbo-jet aircraft. 

h. Rotary wing or water alighting. 

i. Any aircraft with seating for more than seven passengers. 

19–61. Claims procedures 

a. Claims procedures explained in paragraph 19–26 will apply for all claims involving aircraft. 


155

. In addition to RIMP procedures in paragraph 19–26, guidance contained in the Aviation Insurance Program 

Manual may be obtained from RIMP at the address in paragraph 19–3. 

c. Calls to RIMP or the insurer to report a loss will be followed up in writing as stated in paragraph 19–26. 

d. If the loss results in bodily injury or damage to the property of others, RIMP and the commercial insurer will be 

advised at the time the accident is reported. Resulting claims will be investigated and adjusted by the commercial 

insurer. The local CJA will be notified of the incident and of claims filed. The claims officer will offer assistance to the 

insurer as needed. 

e. In the event of conflict between the commercial aircraft policy and regulatory guidance, the terms of the 

commercial policy will take precedence. 

19–62. Deductible 

a. When aircraft are lost or damaged all claims coming from the same event will be adjusted separately. From the 

total of all the adjusted claims coming from the same event, $500 will be deducted. 

b. No deductible will apply to loss caused by— 

(1) Fire, explosion, lightning, theft, robbery, vandalism. 

(2) Accidental damage to aircraft transported after being dismantled. 

Section XII 

Fidelity Bonds 

19–63. Applicable protection 

Fidelity bonding protects NAFIs/entities against losses of money or property caused by fraud, theft, embezzlement, 

larceny, or dishonesty by an employee. The amount of bond for each employee will depend on the classification of the 

position. 


All employees must be bonded. Individual employees will not be bonded as such. All employment positions, however, 

will be bonded in the amounts described below. 


a. Class 1 positions will be bonded for $20,000 and will include— 

(1) Fund managers/entity administrators, including permanently assigned military personnel and APF civilians. 

(2) All executive, administrative, and supervisory officials, department heads, and others who handle, receipt for, or 

have custody of money, checks, or securities, or are accountable for supplies or other property as a part of their 

assigned duties. 

(3) Any person who has authority to approve or appropriate expenditures; approve, certify, or countersign checks or 

other disbursements; maintain or audit cash, checks, securities, time records, supplies, or other property; or take 

physical inventories. 

b. Class 2 positions will be bonded for $5,000 and include all positions other than those listed in paragraph 19–65a, 

above, that are not responsible for money or property. 


a. Liability will be limited to the amount of the bond in effect for each position. 

b. In addition to the standard limits of liability of $20,000 for Class I positions, excess coverage up to $230,000 may 

be obtained for maximum coverage of $250,000 for Class I positions. Request for excess coverage may be indicated on 

the Review of Insured Exposures or sent in memorandum format to FMWRC at the address in paragraph 19–3. 


In addition to the general exclusions listed in paragraph 19–25, fidelity bonds will not cover— 

a. Losses caused by any employee if the fund manager/entity administrator was made aware of any previous 

fraudulent or criminal act committed by the same employee prior to the loss. 

b. Losses proved only by an inventory or profit/loss computation and cashier shortages. Losses proved by evidence, 

wholly apart from inventory or profit and loss computations, and which result from fraudulent or dishonest acts of any 

employee are not excluded. 


Claims procedures explained in paragraph 19–26 will apply to all claims involving fidelity bonds. Notifications to the 

RIMP will also include— 

a. The title of the bonded position. 

b. The classification of the person assigned to the position. 


c. Proof that a loss occurred only through the acts of an employee. However, it is not necessary to name the 

employee who commits the larceny to recover under RIMP. 

Section XIII 

Money and Securities 

19–69. Money, securities, and collateral damage 

The property program covers money and securities and collateral damage to buildings or facilities resulting from any 

actual or attempted burglary, robbery, or theft. 


This program will cover any loss of money or securities inside and outside the premise. 

a. Loss inside the premises. This is loss— 

(1) By actual destruction, disappearance, or wrongful taking within the NAFI/entity premises, any banking premises, 

or safe deposit place. 

(2) Of other property by safe burglary, robbery, or theft (or attempt). 

(3) Of a locked cash drawer, cash box, or cash register by wrongful opening of the container or stealing the 

container from the premises (or attempt). 

(4) By damage to the premises by safe burglary, robbery, or theft (or attempt). 

b. Loss outside the premises. This is loss— 

(1) By the actual destruction, disappearance, or theft while a messenger or any armored motor vehicle company is 

transporting property. A messenger is any employee authorized custody of money or securities outside the premises. 

(2) Of other property by robbery (or attempt) while a messenger or armored motor vehicle company is transporting 

it. 

c. Counterfeit paper currency. This is loss due to accepting counterfeit paper currency in good faith, in the regular 

course of business. 


a. Liability for money and securities claims will be limited to $50,000 per single loss. 

b. In addition to the standard $50,000 coverage, excess coverage to a maximum of an additional $50,000 per single 

loss may be requested by memorandum to RIMP at the address in paragraph 19–3. The maximum payable for any one 

loss will be $100,000. 


In addition to the general exclusions listed in paragraph 19–25, this program will not cover— 

a. Losses caused by any fraudulent, criminal, or dishonest act by any employee. 

b. The giving or yielding of money or securities for any fraudulent exchange or purchase of goods or services. 

c. Accounting or mathematical errors or omissions. 

d. Loss of manuscripts, account books, or records. 

e. Cash contained in coin-operated amusement or vending machines unless recorded by a continuous recording 

instrument within the machine. 

f. Losses caused by fire, whether or not caused by, contributed to, or arising from an insured hazard, except money 

and securities stored in a safe or vault. 

g. Loss of misplaced bags of cash. 

h. Loss due to forgery. 

Section XIV 

Cargo Shipment Program 


The RIMP cargo program will insure shipments of NAF cargo, including transshipments, anywhere in the world and by 

any route. Coverage for cargo shipments under NAF contracts will be coordinated by the NAF contracting officer with 

the MWR RIMP POC. 


a. Cargo insurance will be provided through a commercial master open cargo policy obtained by RIMP. 

b. Cargo insurance will be required if— 

(1) The annual value of cargo shipped is $200,000 or more. 

(2) The value of any single shipment is $100,000 or more. 


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c. Claims will be subject to a $100 deductible. 

d. The limit of liability will be $2,500,000 for any one conveyance or for any one place and time. Higher limits 

must be requested by facsimile or telephone, but RIMP must confirm prior to shipment. 

e. Where a conflict exists between provisions of this regulation and provisions of the master open cargo policy, the 

terms of the commercial insurance policy will govern. 


All goods shipped under this program will be insured against all risks of physical loss or damage from any external 

cause, despite percentage of loss, except as specifically excluded. Coverage extends to cargo that is— 

a. Loaded on vessels and connecting conveyances by land or otherwise, but excluding sailing vessels of any kind. 

Connecting conveyances include motor vehicles and transportation by rail and motor freight lines. 

b. On docks, wharves, or elsewhere on shore. 

c. Transported on aircraft and connecting conveyances. 

d. Shipped through the mail or by parcel post. 


In addition to the general exclusions listed in paragraph 19–25, coverage will exclude losses caused by— 

a. The absence, shortage, or withholding of power, fuel, or labor unrest, riot, or civil commotion. 

b. Changes in temperature or humidity caused by any strike, riot, or civil commotion. 

c. Inherent vice. 

d. Delay or loss of market. 

19–77. Application procedures 

a. NAFIs/entities that are required or elect to participate in the cargo program must contact RIMP for reporting 

procedures. 

b. Reports to the commercial insurance carrier will follow these guidelines: 

(1) Participating NAFIs/entities will report the value of all cargo shipments on the Declaration for Insurance form to 

the commercial insurance carrier on a monthly basis (for exempt reports, see AR 335–15). Declaration forms may be 

obtained from RIMP from the Commander, Family and Morale, Welfare and Recreation Command, ATTN: IM- 

WR–FM–I, 4700 King Street, Alexandria, VA 22302–4406. 

(2) The value of all shipments made each month must be reported within the first 10 calendar days of the following 

month to the commercial insurance broker, which may be obtained from RIMP. Negative reports are not required. 

(3) Shipments will be valued at the total amount of the invoice, normally the cost of goods and freight, plus 10 

percent. Where higher values are declared, the insured value will be the value of the shipment. The value of shipments 

paid in foreign currency will be converted to U.S. dollars based on the rate of exchange in New York City on the date 

of the invoice. 


a. Actions at the point of delivery. 

(1) The condition of the shipment on the delivery documents will be noted and described and the driver’s or 

shipping agent’s signature confirming the count or exceptions will be obtained. 

(2) Copies of all relevant delivery documents, such as bills of lading, freight bills, invoices, and packing lists, will 

be obtained.. 

(3) The shipment will be preserved and protected in its original containers until inspected or surveyed by the 

insurance carrier’s agent. 

b. Claim against the carrier or vendor. Written claims will be filed against the carrier or vendor, as appropriate, as 

prescribed by the carrier or vendor, or using the sample format at the MWR Web site, www.armymwr.org/finance/ 

default,asp?ID=6 under offices. 

c. Notice of loss. 

(1) A notice of loss will be submitted within 60 days to RIMP. Letter format notification will include the following 

information: 

(a) Name and mailing address of the claiming NAFI/entity. 

(b) Name and commercial telephone number of the fund manager/entity administrator. 

(c) Contract number on the Declaration of Insurance provided to the commercial insurance broker. 

(d) Month in which the shipment was reported for coverage. 

(e) Description of goods lost or damaged. 

(f) Date loss or damage was discovered. 

(g) Brief statement of how damage was discovered. 

(h) Description of damage and estimated value of goods lost. 


(2) A copy of the claim against the carrier or vendor will be included. 

d. Proof of loss. Proof of loss will normally be established in one of the following ways: 

(1) Claims under $10,000. The following documents are provided in the Proof of Loss: 

(a) The complete shipper’s invoice, including packing specifications, if available. 

(b) Ocean or airway bills of lading, freight bills, and delivery receipts or records. 

(c) Carrier’s or vendor’s responses to initial claim. 

(d) Repair estimates or invoices for replacement goods. 

(e) Photographs of damaged goods, if available. 

(f) Copy of carrier’s written proof of short or missing shipments. 

(2) Claims over $10,000. The written Notice of Loss from the NAFI/entity will be forwarded by RIMP to the 

commercial insurance carrier. The commercial insurance carrier will determine the need for the services of an 

independent marine surveyor. 

e. Concealed damages. 

(1) Claims for concealed damages or damages that are not detected until after a shipment is accepted will follow the 

same claims procedure prescribed for other types of damage. 

(2) Claims against the carrier or vendor will be reported within 3 days after the shipment arrives at final destination. 

Section XV 

Workers’ Compensation 

19–79. Recipients 

Workers’ compensation provides benefits to NAF employees who are disabled because of job-related illness or injury 

or to surviving spouse and dependents in cases of death resulting from job-related causes. 

19–80. Authority 

Workers’ compensation benefits were established under provisions of the Nonappropriated Fund Instrumentalities 

(NAFI) Act of 1958 (5 USC 8171–8173), which extends the provisions of the Longshore and Harbor Workers’ 

Compensation Act (LHWCA) (33 USC 901 et seq.) to NAF employees. 


a. Benefits defined in this section will apply to— 

(1) Employees of NAFIs/entities employed inside the continental United States. 

(2) Employees of NAFIs/entities who are U.S. citizens or permanent residents of the United States or a territory or 

possession of the U.S., employed outside the continental United States. 

b. Benefits will not apply to— 

(1) Active duty military personnel employed by NAFIs/entities. 

(2) Local civilians employed by NAFIs/entities overseas. 


a. Claims will be adjudicated and paid by a commercial claims service contractor procured by the RIMP. Payments 

made by the contractor will be derived from funds made available by the RIMP. 

b. Administration will be exercised by the U.S. Department of Labor District Offices, Office of Workers’ Compensation 

Programs. A listing of district offices is provided at the MWR Web site, www.armymwr.org/finance/default.asp?ID=6 

under offices. 

c. Compensation will be paid for disability or death arising out of, and in the course of, employment. Compensation 

will be denied if an injury or death is due solely to intoxication of the employee or resulted from a willful intent to 

injure or kill oneself or another person. 

d. In broad terms, compensation will cover employees— 

(1) From the time they report for duty until the time they leave at the end of working hours. It will not normally 

cover travel to and from work. 

(2) While traveling under temporary duty orders, unless the employee deviates from the scope of employment. 

e. Except for benefits described in paragraph 19–83, compensation will not be paid for the first 3 days of disability 

unless the total duration of the disability exceeds 14 days. 

f. Employees may receive workers’ compensation disability benefits or accrued sick leave if an expressed agreement 

is signed per AR 215–3. An example of a workers’ compensation claim benefit options statement is provided at the 

MWR Web site, www.armymwr.org/finance/default.asp?ID=6 under offices. The total weekly payment may not be 

more than the gross weekly wage at the time of injury. 

g. The employee may request sick leave or annual leave in conjunction with workers’ compensation disability 

payments. Policy in AR 215–3 applies. 


159

h. Any claimant or claimant’s representative who knowingly and willfully makes a false statement to obtain 

workers’ compensation benefits is guilty of a felony that may result in a fine, imprisonment, or both. 

i. Any person who knowingly and willfully makes a false statement to reduce, deny, or terminate benefits to an 

injured employee may be fined, imprisoned, or both. 

j. All NAFIs/entities will post a copy of Department of Labor Form LS–242(NF) (Notice of Workers’ Compensation 

Benefits) in a place that is conspicuous and accessible to all NAF employees. This form states that the employing 

NAFI/entity holds required workers’ compensation coverage. Table 19–4 is a listing of the forms. 

Table 19–4 

Workers’ Compensation claim forms 

Form Number: LS–1 (Request for Examination or Treatment) 

Preparer: Part A, Program manager with coordination of the CPAC–NAF (original and 2 copies). This form must be signed by the program 

manager. Part B, Doctor. This form must give the name of the physician or medical facility. 

Disposition: Give to employee. Authorization is given only once. If more than one authorization is given to the employee, the NAFI/entity will 

be liable for the expense incurred. Send original to the district office and a copy to the claims service contractor. 

Remarks: Part A, Authorizes doctors to treat the employee and the claims services contractor to pay the bill. 

Form Number: LS–202 (Employer’s First Report of Injury or Occupational Illness) 

Preparer: Employer, after injury or death whether by the employer’s written notice or from other sources (original and 4 copies) 

Disposition: File 2 copies with the district office, send 1 copy to the claims service contractor, 1 copy to the RIMP, and retain 1 copy 

Remarks: The LS–202 must be fully completed by the program manager and filed within 10 days 

Form Number: LS–204 (Attending Physician Supplementary Report) 

Preparer: Doctor: These are sent after the first report (Part B, LS–1) 

Disposition: Sent to the district office and the claims service contractor 

Remarks: Updates treatment record. A physician’s report will be acceptable instead of the LS–204 

Form Number: LS–206 (Payment of Compensation Without Award) 

Preparer: The claims service contractor, when compensation is begun and eligibility is not questioned 

Disposition: Sent to the district office and to injured employee with first check by the claims service contractor 

Remarks: Starts disability payments 

Form Number: LS–207 (Notice to District Director Right to Compensation is Controverted) 

Preparer: The claims service contractor, when employer advises employee was not injured on the job, is not eligible for compensation, or a 

question of compensability arises 

Disposition: Sent to the district office by the claims service contractor only 

Remarks: Benefits will not be paid until a determination of compensability is made. 

Form Number: LS–208 (Compensation Payment Stopped or Suspended) 

Preparer: The claims service contractor, when employee has returned to work or payments have been completed 

Disposition: Sent to the district office and employee by the claims service contractor 

Remarks: Stops disability payments 

Form Number: LS–210 (Supplementary Report of Accident or Occupational Illness) 

Preparer: Employer, every pay period when employee loses time because of an on-the-job incident 

Disposition: Sent to the claims service contractor 

Remarks: Documents lost time due to on-the-job injury 

Form Number: LS–222 (Carrier’s or Self-Insurer’s Report on Rehabilitation to Deputy Commissioner) 

Preparer: The claims service contractor, after an employee has been continuously disabled for 60 days or more 

Disposition: Sent to District Director’s office by claims service contractor 

Remarks: Requests rehabilitation services by the Department of Labor 

Form Number: LS–242 (NF) (Notice of Workers’ Compensation Benefits) 

Preparer: NAFI/entity personnel office 

Disposition: ACIF sends to NAFI/entity 

Remarks: A printed poster, which should be clearly displayed in the workplace. It advises employees that compensation for on-the-job 

injuries is available through the employer under LHWCA 

19–83. Benefits 

a. Medical care. This includes medical treatment services, medicines, and supplies, subject to provisions of the 

Longshore and Harbor Workers’ Compensation Act (LHWCA). 


(1) An employee has the right to choose a physician authorized to provide medical care under the LHWCA, but then 

may not change physicians without prior approval of the claims service contractor. 

(2) At the time of injury, the employing NAFI/entity may select a physician when prompt treatment is needed and 

the employee is unable to choose. 

(3) LS–1 (Request for Examination and/or Treatment) is given to the employee only once. The treating physician 

will, within 10 days after first treatment, send a medical report to the district director, the claims service contractor, and 

the employer. Thereafter, the doctor will send reports at regular intervals. 

b. Disability. 

(1) Employees who become totally disabled, either temporarily or permanently, may receive up to two-thirds of their 

average weekly wage subject to, but not limited to, the following restrictions: 

(a) The average weekly wage will not exceed 200 percent of the national average weekly wage, as determined by 

the Department of Labor. 

(b) The average weekly wage will not be less than 50 percent of the national average weekly wage. An employee 

earning less than 50 percent of the national average may receive 100 percent of his or her average weekly wage. 

(2) Employees who become partially disabled, either temporarily or permanently, may be entitled to, but not limited 

to, benefits as follows: 

(a) Two-thirds of the difference between the average weekly wage before the injury and the actual wage earning 

capacity after the injury, for a period not to exceed 5 years. 

(b) Awards may be allowed for loss of scheduled body parts (that is, hand, foot, eye) as stated in the law. 

(3) The following death benefits are payable if the injury results in a qualifying work-related death: 

(a) Reasonable funeral expenses, not to exceed $3,000. 

(b) Fifty percent of the employee’s average weekly wage, payable to the surviving spouse living with or dependent 

on the deceased at the time of death. Upon remarriage, compensation totaling 2 years of payment is paid in one lump 

sum. 

(c) Sixteen and two-thirds percent of the employee’s average weekly wage, payable to each child, as defined in the 

LHWCA. 

(d) Benefits are also payable to other persons who satisfy the term “dependent,” as defined in the LHWCA. 

c. Total payments. Total compensation payable in all cases will not exceed two-thirds of the employee’s average 

weekly wage. Payments are made biweekly. 

19–84. First reports by employees 

NAF employees or their agents must inform the employer of injury or death within 30 days. 

19–85. First reports by employers 

a. Employing NAFIs/entities must notify the Department of Labor district office, RIMP, and the claims service 

contractor within 10 days of the date of injury or death or becoming aware of any injury, illness, or occupational 

disease that results from the employee’s employment. 

b. Notification is made on LS–202. Instructions for preparing this form and a sample completed form are provided 

at the MWR Web site, www.armymwr.org/finance/default.asp?ID=6, under offices. 

c. Completed forms are prepared and signed by the program manager and reviewed by the servicing CPAC–NAF. 

d. Copies are submitted as follows: 

(1) Two copies to the appropriate Department of Labor district office listed in table 19–4. 

(2) One copy to the claims service contractor at the address listed in table 19–4. 

(3) One copy to RIMP at the address in paragraph 19–3. 

e. As an exception to LS–202 submission requirements, incidents that do not involve lost time regardless of whether 

or not medical attention is needed require submission to RIMP and the claims service contractor. Copies of LS–202 are 

not provided to the Department of Labor district office. 

f. Program managers will notify the RIMP and claims service contractor of any doubtful aspects of any claim 

immediately. 

g. NAFIs/entities will keep records of all injuries as required by the LHWCA. 


Program managers will ensure that the following procedures are implemented in the event of any injury: 

a. Arrange for prompt treatment in an emergency, at the installation medical treatment facility or by a civilian 

physician. 

b. Complete Part A, LS–1. A sample form is provided at the MWR Web site, www.armymwr.org/finance/default.asp?ID=6 

under offices. 

(1) Item 2: The name and address of the physician or medical treatment facility authorized to provide medical 

service. 


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(2) Item 12: The address of the servicing Department of Labor district office in table 19–4. 

(3) Item 13: Obtain from RIMP the RIMP claims service contractor. 

c. Send the completed Part A with the employee to the physician or medical facility whenever possible. In 

emergencies or where circumstances do not permit the employee to choose a physician, note on the LS–202 that LS–1 

was not completed. 

d. The doctor or medical treatment facility will send Part B to the Department of Labor district office and the claims 

service contractor. 

Note. The medical authorization in LS–1 will be valid only for initial treatment. Additional or continuing treatment will be 

authorized only by the claims service contractor. 

e. Complete LS–202 as prescribed by paragraph 19–85. The NAFI/entity is subject to Department of Labor fines if 

this report is not filed within 10 days. 

f. Complete LS–210 (Employer’s Supplementary Report of Accident or Occupational Illness) if LS–202 described 

above does not show a return to work date. A sample LS–210 is shown at the MWR Web site, www.armymwr.org/ 

f i n a n c e / d e f a u l t . a s p ? I D = 6 u n d e r o f f i c e s . A s e p a r a t e L S – 210 w i l l b e c o m p l e t e d a n d s e n t t o t h e c l a i m s s e r v i c e 

contractor— 

(1) For every pay period the employee remains disabled from performing assigned duties. 

(2) When the employee returns to work. 

g. Assist the claims service contractor with coordination through the CPAC–NAF. 

h. Send all related documents, such as bills, reports, and correspondence of any kind received from any injured 

e m p l o y e e , a g e n t , d o c t o r , o r m e d i c a l f a c i l i t y , t o t h e c l a i m s s e r v i c e c o n t r a c t o r w i t h c o o r d i n a t i o n t h r o u g h t h e 

CPAC–NAF. 

19–87. Use of military medical facilities 

a. Use of military medical facilities by NAF employees normally is limited to initial or emergency treatment only 

and is free of charge. NAF employees are eligible for occupational health services in accordance with AR 40–5. In 

nonemergency cases and for all other treatment, employees must select a civilian doctor or medical facility, as 

explained in paragraph 19–83. 

b. In CONUS remote areas and OCONUS areas where no adequate civilian medical facilities exist, followup 

treatment or hospitalization is authorized at rates set by The Surgeon General of the Army. The employee must 

personally pay for military medical treatment. Itemized receipts, however, are sent to the claims service contractor for 

reimbursement. 

c. The first reports explained in paragraphs 19–84 and 19–85 are filed regardless of the source of medical treatment. 

19–88. Modified Duty/Return to Work Program 

a. A modified duty/return to work program is one of the best ways to keep the costs of workers’ compensation 

claims down. Every effort should be made to return the injured employee to work as soon as the employee is medically 

released. 

b. When bringing an employee back into the workforce on modified duty, the following procedures are followed: 

(1) The claims service contractor will notify the CPAC–NAF when an injured employee is released to modified or 

full duty by the treating physician. A copy of the medical limitations or restrictions imposed by the medical physician 

is sent to the CPAC–NAF. 

(2) The CPAC–NAF, in coordination with the employee’s supervisor, will determine whether the employee, with 

reasonable accommodation, is able return to his/her regular position. If the employee, with reasonable accommodation, 

cannot perform the essential functions of the position, the CPAC–NAF will review all available openings at the 

installation to determine if another position exists, which meets or can be modified to meet the physical restrictions of 

the employee. If a position is not identified for the returning employee, the claims service contractor is notified in 

writing. 

(3) The identified position must be actual work with a proper job description, where the employee can accomplish a 

task beneficial to the overall workings of the installation. A made-up position will not be acceptable. 

(4) When the position is identified and the job description written indicating the modified duties of the position, the 

job description is provided to the claims service contractor for approval by the treating physician. 

(5) After the physician approves the modified duties in the job description, a job offer letter is sent to the employee 

by certified mail/return receipt requested. If the employee declines the position, the claims service contractor is notified 

immediately. If the employee accepts the position, the employee is expected to report to the CPAC–NAF on the date 

and time indicated. If the employee does not appear for work after accepting the position, the claims service contractor 

is notified immediately. 

c. When the employee reports to work, the supervisor will explain exactly what duties are expected of the employee. 

Every effort is made for a smooth transition back to work. 


19–89. Coverage for Korean Nationals 

The United States Forces Korea will participate in the Republic of Korea Industrial Accident Insurance Plan for Korean 

national employees for all treatment and claims for work related injuries and occupational diseases manifested on or 

after 1 January 2005. For dates of injury prior to 1 January 2005, all claims will be submitted to RIMP for claim 

adjudication. 

19–90. Coverage for other foreign nationals 

a. Except for coverage of Korean nationals described in paragraph 19–89, RIMP does not provide workers’ 

compensation benefits for local national employees of U.S. Army NAFIs/entities. 

b. The liability of U.S. Army NAFIs/entities located overseas for death or injury to local national employees 

generally is determined by— 

(1) The local laws or customs of the host nation. 

(2) The provisions of any SOFA or other applicable agreement or treaty. 

c. Where local laws, customs, treaties, or agreements require U.S. Army NAFIs/entities to provide the equivalent of 

workers’ compensation, required coverage is obtained by— 

(1) Purchasing appropriate insurance from an authorized local commercial source as an exception to policy stated in 

paragraph 19–4c. 

(2) Contributing to an applicable foreign government managed compensation program. 

Section XVI 

Unemployment Compensation 


The NAF Unemployment Compensation Program is administered by RIMP. RIMP will assess NAFIs/entities for the 

cost of the program, act as liaison with the Department of Labor and State Employment Security agencies to verify 

benefit payments and quarterly billings and assist in coordinating efforts between payroll offices and CPAC–NAF. 

19–92. Verification of benefit costs 

a. Eligible former employees apply for unemployment compensation through any office of the State Employment 

Security Agency or equivalent. 

b. The appropriate State agency— 

(1) Sends a request for wage and separation information to the servicing NAF payroll office. 

(2) Determines eligibility and pays authorized benefits directly to employees. 

(3) Provides payment information to the Department of Labor. 

c. The Department of Labor bills RIMP for appropriate amounts. 

d. RIMP reimburses the Department of Labor from the ACIF Unemployment Compensation reserve. 

e. The NAF Unemployment Compensation program is centrally managed by RIMP. 

f. RIMP compares statements of charges for the State agencies and from the Department of Labor with payroll 

information to detect discrepancies and obtain appropriate credits. 

g. RIMP will compile management reports to assist in identifying problem areas and make recommendations for 

improvements. 

19–93. Assessment of costs to nonappropriated fund instrumentalities/entities 

To provide funds to pay the cost of Unemployment Compensation benefits, RIMP will assess each NAFI/entity a 

percentage of the NAF U.S. civilian payroll. The percentage charged is based on experience and projected costs to 

generate funds to cover the cost of the program. RIMP will review the assessment policy and procedure annually. 


163

Appendix A 

References 

Section I 

Required Publications 

AR 215–3 

Nonappropriated Funds Personnel Policy (Cited in paras 4–2, 4–10, 5–2, 5–13, 5–14, 8–14, 8–15, 8–19, 8–27, 10–8, 

13–1, 14–1, 14–2, 14–4, 14–7, 14–12, 19–82, D–1, J–10, M–11.) 


Nonappropriated Fund Contracting (Cited in paras 2–4, 2–5, 2–6, 4–2, 4–10, 5–13, 5–14, 8–7, 8–18, 8–19, 8–21, 8–24, 

11–13, 12–11, 13–12, 17–7, 17–12, 19–9, 19–17, J–7.) 


Army Facilities Management (Cited in paras 2–3, 13–15, 15–1, 15–4, 15–7, 15–8, 15–9, 15–10, 16–29, 17–16, and 

table 15–1.) 

DOD 7000.14–R 

DOD Financial Management Regulations (FMRS), volume 13 (Cited in paras 2–3, 3–15, 4–10, 4–11, 4–12, 4–13, 5–2, 

5–13, 5–14, 6–2, 6–5, 8–5, 8–8, 8–12, 8–24, 8–25, 9–6, 13–1, 13–13, 16–12, 16–26, 16–29, 16–32, 17–1, 17–6, 17–8, 

17–12, 17–13, 17–14, 17–17, 19–3, C–4, F–2, G–6, G–4, G–1, J–7.) 

Section II 

Related Publications 

A related publication is a source of additional information. The user does not have to read a related publication to 

understand this publication. Army publications are available at the Army Publications Directorate Web site, www.apd.- 

army.mil. DG publications are available at www.usace.army.mil/inet/usace-docs/design-guides. DOD publications are 

available at www.dtic.mil/whs/directives. The CFR is at http://ecfr.gpoaccess.gov. P.L. citations are available at http:// 

thomas.loc.gov. U.S. Code is available at www.gpoaccess.gov/uscode. 

Army Directive 2005–01 

Policy for Travel by Department of the Army Officials 


Gifts and Donations 


Army Inspection Policy 


Area Support Responsibilities 


Management Control 


Internal Review and Audit Compliance Program 


Procedures for Investigating Officers and Boards of Officers 


Army Board for Correction of Military Records 


Army Knowledge Management and Information Technology Management 


Information Assurance 



The Army Publishing Program 


Preparing and Managing Correspondence 


The Department of the Army Freedom of Information Act Program 


The Army Library Program 


Claims 


Litigation 


The Army Food Program 


Audit Services in the Department of the Army 

AR 37–104–4 

Military Pay and Allowances Policy 


Preventive Medicine 


Veterinary/Medical Food Safety, Quality Assurance, and Laboratory Service 


Veterinary Health Services 


Travel Overseas 


Management, Acquisition, and Use of Motor Vehicles 


Movement of Cargo by Scheduled Military Air Transportation 


Army and Air Force Exchange Service Operating Policies 


Army Acquisition Policy 


Force Development and Documentation—Consolidated Policies 


Active Duty for Missions, Projects, and Training for Reserve Component Soldiers 


Chaplain Activities in the United States Army 


165


Motor Vehicle Traffic Supervision 


Physical Security of Arms, Ammunition, and Explosives 


The Army Physical Security Program 


Serious Incident Report 


The Army Corrections System 


Criminal Investigation Activities 


Natural Resources—Land, Forest, and Wildlife Management 


Pest Management 


Nonstandard Activities of the United States Military Academy and West Point Military Reservation 


Personal Commercial Solicitation on Army Installations 


Real Property Master Planning for Army Instalations 


Private Organizations on Department of the Army Installations 


Vending Facility Program for the Blind on Federal Property 

AR 215–6/AFJI 215–10/OPNAVINST 1710.4B/MCO 1710.23B 

Armed Forces Entertainment Program 


Civilian Nonappropriated Funds and Morale, Welfare, and Recreation Activities 


Army Bands 


Department of the Army Welfare Fund 


Management Information Control System 


The Army Privacy Program 


The Army Sustainable Range Program 



The Army Public Affairs Program 


The Army Safety Program 


Accident Reporting and Records 


U.S. Army Explosives Safety Program 


Army Aviation Accident Prevention 


Acquisition of Real Property and Interests Therein 


Management of Title and Granting Use of Real Property 


Disposal of Real Estate 


Acquisition and Sales of Utilities Services 


Manpower Management 


Remission or Cancellation of Indebtedness 


Army Casualty Program 


Identification Cards for Members of the Uniformed Services, their Family Members, and Other Eligible Personnel 


Military Awards 


Army Command Policy 


Fund-Raising within the Department of the Army 


Attitude and Opinion Survey Program 


Army Health Promotion 


Army Substance Abuse Program (ASAP) 


Army Community Service Center 


167


Child Development Services 


The Army Family Advocacy Program 


Army Family Action Plan (AFAP) Program 


Army Family Team Building (AFTB) Program 


Enlisted Assignments and Utilization Management 


Evaluation Reporting System 


Wear and Appearance of Army Uniforms and Insignia 


Incentive Awards 


Equal Employment Opportunity and Affirmative Action 


Employment (Civilian Personnel) 


Equal Employment Opportunity Discrimination Complaints 


Career Management 


Supply Policy Below the National Level 


Requisition, Receipt, and Issue System 


Policies and Procedures for Property Accountability 


Accounting for Library Materials 


Military History: Responsibilities, Policies, and Procedures 


Museums and Historical Artifacts 


Army Emergency Relief 


American National Red Cross Service Program and Army Utilization 


DA Circular 608–06–1 

Better Opportunities for Single Soldiers Program 

DA Pam 25–51 

The Army Privacy Program-System of Records, Notices, and Exemption Rules 

DA Pam 385–1 

Small Unit Safety Officer/NCO Guide 

DA Pam 385–5 

Fundamentals of Safety in Army Sports and Recreation 

DA Pam 385–64 

Ammunition and Explosives Safety Standards 

DA Pam 415–28 

Guide to Real Property Category Codes 

DA Pam 420–6 

Directorate of Public Works Resource Management System 

DA Pam 735–5 

Financial Liability Officers’ Guide 

CTA 50–909 

Field and Garrison Furnishings and Equipment 

CTA 50–970 

Expendable/Durable Items (Except: Medical, Class V, Repair Parts, and Heraldic Items) 

DCTI 800–01 

Design Criteria (Available at www.hnd.usace.army.mil/techinfo/engpubs.htm.) 

DG 1110–3–110 

Design Guide for Libraries 

DG 1110–3–120 

Design Guide for Music and Drama Centers 

DG 1110–3–126 

Design Guide for Auto Crafts Center 

DG 1110–3–132 

Design Guide for Recreation Centers 

DG 1110–3–142 

Design Guide for Community Activity Centers 

FM 12–6 

Personnel Doctrine 

FM 3–21.220 

Static Line Parachuting Techniques and Tactics 

FM 100–17 

Mobilization, Deployment, Redeployment, and Demobilization 

TB MED 530 

Occupational and Environment Health Food Service Sanitation 


169

TB MED 575 

Swimming Pools and Bathing Facilities 

TIB 01–12–17 

Cardiac Arrest and Automated Extended Defibrillators (AEDS) (Available at www.osha.gov.) 

TM 5–803–12 

Planning of Outdoor Recreation Areas 

DFAS Manual 37–100 

The Army Management Structure (by Fiscal Year) (Available at https://dfas4dod.dfas.mil/.) 

DFAS–IN Regulation 37–1 

Finance and Accounting Policy Implementation (Available at https://dfas4dod.dfas.mil/.) 

DOD 4160.21–M 

Defense Materiel Disposition Manual 

DOD 4525.8–M 

DOD Official Mail Manual 

DOD 4500.9–R, volume II 

Defense Transportation Regulation 

DOD 4500.36–R 

Management, Acquisition, and Use of Motor Vehicles 

DOD 4500.54–G 

Department of Defense Foreign Clearance Guide (Available from https://www.fcg.pentagon.mil.) 

DOD 5120.20–R 

Management and Operation of Armed Forces Radio And Television Service (AFRTS) 

DOD 5500.7–R 

Joint Ethics Regulation (JER) 

DOD 7000.14–R, volume 5, chapter 34 

Procedures Governing Banks, Credit Unions, and other Financial Institutions on DOD Installations 

DOD 7000.14–R, volume 13 

Nonappropriated Funds Policy and Procedures (Available at www.dod.mil/comptroller/fm.) 

DOD 7600.7–M 

Internal Audit Manual 

DODD 1015.2 

Military Morale, Welfare, and Recreation (MWR) 

DODD 1330.4 

Participation in Armed Forces, National, and International Sports Activities 

DODD 1404.10 

Emergency-Essential (E–E) DOD U.S. Citizen Civilian Employees 

DODD 4105.67 

Nonappropriated Fund (NAF) Procurement Policy 

DODD 5100.3 

Support of the Headquarters of Combatant and Subordinate Joint Commands 


DODD 5132.12 

Consolidations and Reductions of U.S. Defense Attaché Offices (DAOS) And Security Assistance Organizations 

(SAOS) 

DODD 5200.28 

Security Requirements for Automated Information Systems (AISs) 

DODI 1000.15 

Private Organizations on DOD Installations 

DODI 1010.15 

Smoke-Free DOD Facilities 

DODI 1015.9 

Professional United States Scouting Organization Operations at United States Military Installations Located Overseas 

DODI 1015.10 

Programs for Military Morale, Welfare, and Recreation (MWR) 

DODI 1015.13 

DOD Procedures for Implementing Public-Private Ventures (PPVs) for Morale, Welfare, and Recreation (MWR), and 

Armed Services Exchange Category C Revenue-Generating Activities 

DODI 1015.15 

Establishment, Management, And Control Of Nonappropriated Fund Instrumentalities and Financial Management Of 

Supporting Resources 

DODI 1330.9 

Armed Services Exchange Policy 

DODI 1330.20 

Reporting of Morale, Welfare, and Recreational (MWR) Activities Personnel Information 

DODI 1330.21 

Armed Services Exchange Regulations 

DODI 2000.16 

DOD Antiterrorism Standards 

DODI 4000.19 

Interservice and Intragovernmental Support 

DODI 4105.71 

Nonappropriated Fund (NAF) Procurement Procedure 

DODI 5100.64 

DOD Foreign Tax Relief Program 

DODI 5200.40 

DOD Information Technology Security Certification and Accreditation Process (DITSCAP) 

DODI 6050.5 

DOD Hazard Communication Program 

DODI 7060.03 

International Balance of Payments Program-Nonappropriated Fund Activities 

DODI 7600.6 

Audit of Nonappropriated Fund Instrumentalities and Related Activities 


171

JTR 

Joint Travel Regulation (Available at https/secureapp2.hqda.pentagon.mil/perdium.) 

MIL–HDBK–3004A1 

Quality Surveillance For Fuels, Lubricants, And Related Products (Available from http://assist.daps.dla.mil/ 

quicksearch.) 

MIL–STD–161G 

Identification Methods for Bulk Petroleum Products Systems Including Hydrocarbon Missile Fuels (Available from 

http://assist.daps.dla.mil/quicksearch.) 

27 CFR 478.125 

Commerce in Firearms and Ammunition 

29 CFR 1910–1030 

Bloodborne pathogens 

49 CFR 830 

Notification and Reporting of Aircraft Accidents or Incidents and Overdue Aircraft, and Preservation of Aircraft 

Wreakage, Mail Cargo, and Records 

EO 13123 

Greening the Government through Efficient Energy Management (Available from www.archives.gov/research/ 

index.html.) 

Federal Aviation Regulations 

Parts 1, 65, 91, 105, and 149 (Available from www.faa.gov/regulations_policies.) 

International Flight Information Manual 

Federal Aviation Administration, Air Traffic Organization (Available at www.faa.gov/ats/aat/ifim.) 

IRS Publication 1244 

Employee’s Daily Record of Tips and Reports to Employer 

P.L. 97–365 

Debt Collection Act of 1982 

P.L. 100–690 

Anti-Drug Abuse Act of 1988 

P.L. 104–52, sec. 636 

Prohibition of Cigarette Sales to Minors in Federal Buildings and Lands Act 

P.L. 104–106 

National Defense Authorization Act for FY 1996) 

P.L. 104–134 

Debt Collection Improvement Act of 1996 

P.L. 106–65 

National Defense Authorization Act for FY 2000 

P.L. 108–375 

National Defense Authorization Act for FY 2005 

P.L. 109–145 

Presidential $1 Coin Act of 2005 

OPM Operating Manual 

Qualification Standards for Positions under the General Schedule (Available at www.opm.gov/qualifications.) 


UFC 4–740–20 

Unified Facilities Criteria–Libraries (Available at http://www.wdbg.org.) 

4 USC 104 

Tax on motor fuel sold on military or other reservation 

5 USC 

Government Organization and Employees 

5 USC 55 

Pay administration 

5 USC 552a 

Records maintained on individuals 

5 USC 2105c 

Employee 

5 USC 3111 

Acceptance of volunteer service 

5 USC 8101–8152 

Compensation For Work Injuries; Definitions 

5 USC 8171–8173 (Chapter 81, Subchapter II) 

Employees of nonappropriated fund instrumentalities 

10 USC 1005 

Elements of Reserve Components 

10 USC 1073 

Medical and dental care; administration of this chapter 

10 USC 1587 

Employees of nonappropriated fund instrumentalities: reprisals 

10 USC 1588 

Authority to accept certain voluntary services 

10 USC 2424 

Procurement of supplies and services from exchange stores outside the United States 

10 USC 2491 

Uniform funding and management of morale, welfare, and recreation programs 

10 USC 2491a 

Department of Defense golf courses: limitation on use of appropriated funds 

10 USC 2492 

Nonappropriated fund instrumentalities: contracts with other agencies and instrumentalities to provide and obtain goods 

and services 

10 USC 2494 

Nonappropriated fund instrumentalities: furnishing utility services for morale, welfare, and recreation purposes 

10 USC 2575 

Disposition of unclaimed property 

10 USC 2643 

Commissary and Exchange Services Transportation Overseas 


173

10 USC 2683 

Relinquishment of legislative jurisdiction; minimum drinking age on military installations 

10 USC 2687 

Base closures and realignments 

10 USC 2733 

Property loss; personal injury or death: incident to noncombat activities of Department of Army, Navy, or Air Force 

10 USC 2783 

Nonappropriated fund instrumentalities: financial management and use of nonappropriated funds 

10 USC 2801 

Military Construction; Scope of chapter; definitions 

10 USC 2881 

Ancillary Support Facilities 

10 USC 12301(d) 

Reserve components generally 

15 USC 1171 

Transportation Of Gambling Devices; Definitions 

15 USC 1175 

Specific jurisdictions within which manufacturing, repairing, selling, possessing, etc., prohibited; exceptions 

17 USC 

Copyrights 

17 USC 101 

Subject Matter And Scope Of Copyright; Definitions 

18 USC 201–225 

Bribery of public officials and witnesses 

18 USC 921–928 

Firearms; Definitions 

18 USC 922 

Unlawful acts 

20 USC Chapter 6A 

Vending Facilities for Blind in Federal Buildings 

22 USC 2381 

Exercise of functions 

26 USC 4181 

Imposition of tax 

28 USC 2671–2680 

Tort Claims Procedure; Definitions 

31 USC 1341 

Limitations on expending and obligating amounts 

31 USC 1344 

Passenger carrier use 


31 USC 1350 

Criminal penalty 

31 USC 3302 

Custodians of money 

32 USC 502(f) 

Required drills and field exercises 

33 USC 901 

Longshore and Harbor Workers’ Compensation Act 

37 USC 1007 

Deductions from pay 

38 USC 106 

Certain service deemed to be active service 

42 USC 12142 

Americans with Disabilities Act 

Aviation Insurance Program Manual 

Published by the United States Aircraft Insurance Group Available from the Commander, Family and Morale, Welfare 

and Recreation Command, ATTN: IMWR–FM–I, 4700 King Street, Alexandria, VA 22302–4406. 

SIM, part 4.08 

USPA Skydiver’s Information Manual (Available from /www.uspa.org.) 

SIM, part 8–2 

USPA Skydiver’s Information Manual (Available from /www.uspa.org.) 

RCS AG–848 

Army Flying Activity Annual Status Report (assigned to DA Form 4909, prescribed by this regulation) 

RCS CFCFA 218 

Approved Resources Report (prescribed in AR 37–1, chapter 28, para 280702) 

RCS CSGPA 1701 

Centralized Book Acquisition Program (report instructions contained in chapter 8, para 8–22b(9)) 


Annual NAF Budget Planning Programming APF/NAF Fund Support This report is accessed through the Financial 

Management Budget System (FMBS), maintained by FMWRC, ATTN: IMWR–FM–A, 4700 King Street, Alexandria, 

VA 22302–4406. 


Annual Child and Youth Services Report. This report is accessed at www.Armycys.army.mil. It is user name and 

password restricted. To obtain authorization to access, contact FMWRC, ATTN: IMWR–CYS, 4700 King Street, 

Alexandria, VA 22302–4418. 


School Age Services Annual Report. This report is accessed at www.armycys.army.mil. It is user name and password 

restricted. To obtain authorization to access, contact FMWRC, ATTN: IMWR–CYS, 4700 King Street, Alexandria, VA 

22302–4419. 

RCS DD–P&R(A) 1554 

Employees’ Compensation and Benefits Report. This report is required by DODI 1330.20. NAF Financial Services 

electronically inputs data from the central payroll office individual pay roll records and electronically submits the 

report to FMWRC, who forwards the report to DOD. 


175

RCS DD–P&R(A) 1555 

MWR Personnel Strength Report. This report is required by DOD 1330.20. A sample format and instructions for this 

report are contained in chapter 16, this regulation. 

Section III 

Prescribed Forms 

The following forms are available on the APD Web site (www.apd.army.mil) unless otherwise stated. 

DA Form 3031 

Qualification Card for Use of Arts and Crafts Center Equipment (Prescribed in para 8–9.) (Available through normal 

forms supply channels.) 

DA Form 3031–1 

Qualification Card for Automotive Crafts Shop Equipment (Prescribed in para 8–10.) (Available through normal forms 

supply channels.) 

DA Form 3238 

Request for Copyright Clearance on Musical or Dramatical Works (Prescribed in para 8–17.) 

DA Form 3680 

Parade of American Music Entry Form for Army Participants (Prescribed in para 8–17.) 


Parade of American Music Entry Form for Army Composers (Prescribed in para 8–17.) 

DA Form 3830 

Nonappropriated Fund Bank Balances (Prescribed in para 16–20.) 

DA Form 4316 

Application for Building Insurance (Prescribed in para 19–6.) 


Application for Army Flying Activity Aircraft Insurance (Prescribed in para 19–6.) 

DA Form 4722 

U.S. Army Nonappropriated Fund Vehicle Registration (Prescribed in para 13–6.) (Available through normal forms 

supply channels or from FMWRC, ATTN: IMWR–FM–I, 4700 King Street, Alexandria, VA 22302–4406.) 

DA Form 4762 

Athlete’s Application (Prescribed in para 8–27.) 

DA Form 4878 

Army Chess Tournament Application (Prescribed in para 8–16.) 

DA Form 4909 

Army Flying Activity Annual Status Report (Prescribed in para 8–25.) 

DA Form 5318 

Annual Operating Budget (Prescribed in para 16–13.) (Available from Financial Management Budget System, 

maintained by FMWRC, ATTN: IMWR–FM–C, 4700 King Street, Alexandria, VA 22302–4406.) 


APF/NAF Five-Year Financial Plan (Prescribed in para 16–13.) (Available from Financial Management Budget 

System, maintained by FMWRC, ATTN: IMWR–FM–C, 4700 King Street, Alexandria, VA 22302–4406.) 

DA Form 5321 

Capital Purchases, Maintenance and Repair, and Minor Construction (Parts A–D) (Prescribed in para 16–13.) 

(Available from Financial Management Budget System, maintained by FMWRC, ATTN: IMWR–FM–C, 4700 King 

Street, Alexandria, VA 22302–4406.) 


DA Form 5322 

Monthly Cash Projection Schedule (Optional Use) (Prescribed in para 16–13.) (Available from the Financial 

Management Budget System, maintained by FMWRC, ATTN: IMWR–FM–C, 4700 King Street, Alexandria, VA 

22302–4406.) 

DA Form 5462 

Tip Allocation Worksheet (Prescribed in para C–10.) 


Continuation of Tip Allocation Worksheet (Prescribed in para C–10.) 

DA Form 5556 

Personnel Requirements Document (Prescribed in para 14–4.) (Available from www.armymwr.army.mil in policy 

documents under Human Resources.) 

DA Form 5911–E 

Five-Year Cash Projection Schedule (Prescribed in para 16–13.) (Available from Financial Management Budget 

System, maintained by FMWRC, ATTN: CFSC–FM–C, 4700 King Street, Alexandria, VA 22302–4406.) 


NAF Major Construction Schedule (Prescribed in para 16–13.) (Available from Financial Management Budget System, 

maintained by FMWRC, ATTN: IMWR–FM–C, 4700 King Street, Alexandria, VA 22302–4406.) 

Section IV 

Referenced Forms 

DA forms are available on the Army Publications Directorate Web site, www.apd.army.mil. DD forms are available 

from the OSD Web site, www.dtic.mil/whs/directives/infomgt/forms/formsprogram.htm. IRS forms are available at 

www.irs.gov. Standard forms (SFs) are available at http://contacts.gsa.gov/webforms.nsf. LS forms are available at 

www.dol.gov/libraryforms/FormsByNum.asp. 

DA Form 11–2–R 

Management Control Evaluation Certification Statement 

DA Form 285–AB 

U.S. Army Abbreviated Ground Accident Report 

DA Form 1058–R 

Application for Active Duty for Training, Active Duty for Special Work, Temporary Tour of Active Duty, and Annual 

Training for Soldiers of the Army National Guard and U.S. Army Reserve (LRA) 

DA Form 1602 

Civilian Identification (Available from usual form supply channels.) 

DA Form 1991 

Stock Record Card 

DA Form 1992 

Nonappropriated Fund Receipt Voucher 

DA Form 1994 

Petty Cash Voucher 

DA Form 2062 

Hand Receipt/Annex No. 

DA Form 2107 

Nonappropriated Fund Receipt and Disbursement Voucher 

DA Form 2397 

Technical Report of U.S. Army Aircraft Accident Part 1—Statement of Reviewing Officials 


177

DA Form 2397–AB 

Abbreviated Aviation Accident Report 

DA Form 2600 

Referral and Selection Register 

DA Form 3161 

Request for Issue or Turn-in 

DA Form 4017 

Request for Personnel Action, Nonappropriated Fund Instrumentality 

DA Form 4067 

Request for Quotations (Nonappropriated Funds) (EGA) (Available from http://snacs.mwr.army.mil.) 

DA Form 4082 

Daily Cashier’s Record 


Vending and Amusement Machine Collections 

DA Form 4162 

Volunteer Service Record 

DA Form 4187 

Personnel Action 

DA Form 4713 

Volunteer Daily Time Record 

DA Form 5671 

Parental Permission 


Telephonic Notification of Aviation Accident/Incident 


Telephonic Notification of Ground Accident 

DD Form 4–1, 4–2, 4–3 

Enlistment or Reenlistment Agreement—Armed Forces of the United States 

DD Form 250 

Material Inspection and Receiving Report 

DD Form 448 

Military Interdepartmental Purchase Request 

DD Form 1348 

DoD Single Line Item Requisition System Document (Manual) 

DD Form 1391 

Military Construction Project Data 

DD Form 1844 

List of Property and Claims Analysis Chart 

DD Form 2406 

Miscellaneous Obligation Document 


DD Form 2793 

Volunteer Agreement for Appropriated and Nonappropriated Fund Instrumentalities 

IRS Form 1096 

Annual Summary and Transmittal of U.S. Information Return. 

IRS Form 1099–Misc 

Miscellaneous Income 

IRS Form 4070 

Employee’s Report of Tips to Employer 

IRS Form 8027 

Employer’s Annual Information Return of Tip Income and Allocated Tips 

IRS Form W–9 

Request for Taxpayer Identification Number and Certification 

LS –1 

Request for Examination and/or Treatment 

LS–202 

Employers’ First Report of Injury or Occupation Illness 

LS–204 

Attending Physician’s Supplementary Report 

LS–206 

Payment of Compensation Without Award 

LS–207 

Notice to District Director Right to Compensation is Controverted 

LS–208 

Compensation Payment Stopped or Suspended 

LS–210 

Employer’s Supplementary Report of Accident or Occupational Illness 

LS–222 

Carrier’s or Self-Insurer’s Report on Rehabilitation to Deputy Commissioner 

LS–242 (NF) 

Notice of Workers’ Compensation Benefits 

OF 346 

U.S. Government Motor Vehicle Operator’s Identification Card 

SF 50 

Notification of Personnel Action 

SF 52 

Request for Personnel Action 

SF 700 

Security Container Information 

SF 1094 

U.S. Tax Exemption Certificate 


179

SF 1164 

Claim for Reimbursement for Expenditures on Official Business 

SF 1169 

U.S. Government Transportation Request 

U.S. Treasury Form 4473 

Firearms Transaction Record (Available at www.atf.gov/dco/index.htm.) 

Appendix B 

Morale, Welfare, and Recreation Board of Directors 

B–1. Composition and basic responsibilities 

Table B–1 contains the composition and basic responsibilities of the MWR BOD. Detailed responsibilities and 

functions are contained in the MWR BOD charter. 

Table B–1 

MWR BOD 

Board 

Mission: Develop program, 

resource, and finance strategies; 

develop short- and longterm 

goals and objectives; 

establish implementing plans 

and performance measures; 

maintain corporate MWR 

oversight including fiduciary 

responsibility. 

Composition (Chair is senior ranking military 

officer) 

ASA(M&RA) 

CDR, USFK 

CDR, FORSCOM 

CDR, TRADOC 

CDR, AMC 

CDR, USAREUR 

CDR, USARPAC 

SMA 

Executive Secretary: DCS G–1 (nonvoting) 

Deputy Chief of Staff, G–8 (nonvoting) 

Asst Exec Secretary: CDR, CFSC (nonvoting) 

Responsibilities 

Approves major management initiatives 

Reviews Executive Committee actions as necessary 

Retains fiduciary responsibility 

Determines goals and objectives for Army MWR programs 

and operations. 

Establishes program, resource, and finance strategies 

for Army MWR programs and operations. 

Establishes and monitors implementing plans and 

performance measures for Army MWR programs and 

operations. 

Prioritizes NAFMC projects and establishes funding 

levels for inclusion in the Army’s overall construction 

program. 

B–2. Committees, subcommittees, and boards 

MWR BOD subordinate committees as determined necessary by the MWR BOD are outlined below. The composition, 

functions, and responsibilities of each committee are contained in the MWR BOD by-laws. The committees include— 

a. The Executive Committee, which— 

(1) Approves major issues for presentation to the MWR BOD. 

(2) Acts on behalf of the MWR BOD as needed. 

(3) Approves MWR goals, management initiatives, and programs. 

(4) Reviews and approves implementing strategies. 

(5) Evaluates performance for goal attainment. 

b. Audit Committee, which— 

(1) Identifies vulnerable MWR programs or systems for audit consideration. 

(2) Advises management of significant audit results. 

(3) Directs followup for compliance 

(4) Monitors MWR management system of internal controls. 

c. Investment Subcommittee, which— 

(1) Proposes investment implementation plan. 

(2) Develops and analyzes investment implementation options and submits recommendations for the Executive 

Committee review. 

(3) Evaluates investment performance. 

d. MWR Working Group (MWRWG), which develops working level issues and recommendations for the Executive 

Committee. 

e. Capital Investment Review Board, which reviews and prioritizes projects for the Executive Committee. 


f. Configuration Control Board, which prepares issues related to MWR Enterprise Information Systems Architectures 

for the MWR Working Group. 

Appendix C 

Tip Allocation/Reporting Requirements 

C–1. Tax liability 

a. Food and beverage programs keep records on gross food and beverage sales and tips reported by employees. If 

employees do not report tips equal to 8 percent of gross food and beverage sales, the employing NAFI/entity will 

assume that employees received tips of 8 percent or the difference between 8 percent and the amount actually reported. 

This information will be reported to the IRS on each employee’s W–2 statement. The employee is liable for income 

taxes on the reported amount. 

b. Tip allocation requirements will apply to all NAF food or beverage service operations located in the 50 States and 

District of Columbia. Managers will identify each separate type of service provided, such as bars, buffets, formal 

dining rooms, or snack bars, because applicability of tip allocation procedures is determined by type of service. 

c. IRS Form 8027 is required to be filed with the appropriate IRS office not later than the last business day in 

February of each year. Copies of IRS Form 8027 will be submitted to IMCOM Region by 10 February of each year for 

review and approval prior to mailing to the IRS. 

C–2. Definitions 

a. Tip. Any amount paid to an employee at the option of the customer. It may be paid in cash directly to the 

employee or entered as a separate item on a credit card sales slip. Tips charged on credit cards may be either paid to 

the employee immediately from available cash or reported to the payroll office and added to the next paycheck, as 

determined by the employing NAFI/entity. 

b. Service charge. A percentage of the total charge for food and beverages automatically added to each customer’s 

bill and subsequently distributed by the employing NAFI/entity to all eligible employees. It differs from a tip in that 

the charge is automatic and not a customer option. Service charge distributions to employees are considered cash wages 

for which the employing NAFI/entity is liable for withholding and FICA taxes. 

c. Gratuity. Either a tip or a service charge, depending on whether the amount is voluntarily contributed by the 

customer or automatically added to food and beverage charges. 

d. Tip offset. The amount an employer may reduce a tipped employee’s wages to offset the amount of tips reported 

while meeting minimum wage requirements. Tipped employees must receive an amount of compensation, including 

tips and wages, at least equal to the minimum wage. Tip offset is not available in all States and implementation varies 

among the States in which it is allowed. Although NAFIs/entities are generally immune from State laws, as discussed 

in chapter 3, tip offsets will not be implemented without prior clearance from the installation SJA. Tip offset is 

different than tip allocation, however, amounts offset are reportable under allocation. 

e. Tip allocation. Procedures used by employing NAFIs/entities to allocate tip income equitably among affected 

employees when the amount of tips reported does not equal or exceed 8 percent of gross sales. Resulting tip income 

amounts are reported to the IRS. 

C–3. Tip allocation 

a. Tip allocation procedures apply only to employees who receive tips directly from customers. This includes 

arrangements where tips are pooled and subsequently divided among participating employees. 

b. Tip allocation requirements do not apply to indirectly tipped employees, such as cooks, busboys, and helpers who 

receive a portion of tips collected either directly from employees receiving tips or through tip pools. Although 

indirectly tipped employees are not subject to tip allocation procedures, tip reporting requirements apply. 

C–4. Employee reporting requirements 

a. Employees who receive tips of $20 or more in any month are personally responsible for reporting as stated below. 

(1) To the employing NAFI/entity, for the purpose of determining if tip allocation procedures must be implemented. 

Tip allocation is required if the total amount of tips reported does not equal or exceed 8 percent of gross sales. 

(2) On Federal and State income tax returns, regardless of amount. Failure to declare tip income may subject the 

employee to audit, interest, penalties, and other sanctions as provided by the Internal Revenue Code and applicable 

State law. 

b. Except for charged tips paid immediately from available cash, employing NAFIs/entities that collect gratuities in 

any form are responsible for reporting all types of gratuities, whether tips or service charge distributions, to the payroll 

office. 

c. Regardless of reporting requirements described above, each employee is ultimately responsible for maintaining 


181

adequate records of tips received. IRS Publication 1244 and IRS Form 4070 have been developed for this purpose and 

may be used to report tip income to the employing NAFI/entity. The employee portions of IRS Pub 1244 are generally 

sufficient to prove tip income in the event of a tax dispute. Otherwise, the amount of tip income will be determined by 

the IRS. 

C–5. Payroll procedures 

The payroll office is responsible for the following functions: 

a. Including all tips not received immediately by employees in their next paycheck. (Income from tips is considered 

income to the individual and is not subject to withholding.) 

b. Including all distributions from service charges in the employee’s next paycheck. (Income from service charges is 

considered income to the employing NAFI/entity and is subject to the same Federal, State, and Social Security (FICA) 

tax withholding requirements as any other income. The distribution paid to employees therefore is the net entitlement 

after withholding.) 

c. Listing payments of gratuities of all types, whether tips or service charge distributions, as “other income” on 

employee pay statements. 

d. Reporting the total amount of gratuities paid to each employee in each calendar year to the IRS, in accordance 

with applicable IRS rules. 

C–6. Allocation criteria 

Food and beverage programs that are not exempted from tip allocation requirements under the provisions of paragraph 

C–7 allocate tips among all directly tipped employees whenever the total amount of tips reported does not equal or 

exceed 8 percent of gross food and beverage sales. If the amount of tips reported equals or exceeds 8 percent, no 

allocation is required. 

C–7. Exemptions 

a. The types of food or beverage programs that are generally exempt from tip allocation requirements are— 

(1) Cafeterias. 

(2) Snack bars without table service. 

(3) Buffets. 

(4) Party contracts with a service charge of 10 percent or more. 

(5) Any other food or beverage service with a service charge of 10 percent or more. 

b. The following types of programs that are automatically exempted are— 

(1) Those that do not allow tipping. 

(2) Those with tip rates of less than 2 percent of gross sales. 

C–8. Requests for lower tip allocation rates 

Managers of programs that consistently generate tips of more than 2 percent but less than 8 percent of gross sales may 

apply to the IRS to reduce the allocation rate from 8 percent to a level consistent with actual tips received. To apply— 

a. Determine the average tip rate based on charge receipts and other available data. 

b. Request a reduction in the tip allocation rate by letter addressed to the district director of the servicing IRS 

district office, with the following supporting information, as a minimum. 

(1) Actual tip rate and supporting data. 

(2) Description of the food or beverage service program. 

(3) Menu prices. 

(4) Location. 

(5) A description of the food or beverage operation that clearly indicates the level of self-service activities. 

(6) Days and hours of operation. 

(7) Method of payment. 

(8) Allocation rate requested. 

(9) Copies of IRS Form 8027 for the last 3 years. 

c. The IRS district director will approve or disapprove the request or require additional information. Approval of 

request will state the allocation rate and the period for which it is valid. 

d. A single application may be filed in the case of two or more programs on the same garrison that experience 

similar tip rates. 

C–9. Allocation methods 

Tip allocation may be based on either of the methods specified in this paragraph. The method should be implemented 

at the beginning of the calendar year and not changed during the remainder of the year. 


a. Total sales method. This is the preferred method and involves maintaining records of total sales by each affected 

employee. 

b. Hours worked method. This method allocates tips proportionally among affected employees, based on hours 

worked. Generally, this method is used by programs that do not have the capability of recording total sales by each 

employee. 

C–10. Allocation procedure 

Tips are allocated based on a mathematical formula prescribed by the IRS and integrated into DA Form 5462 (Tip 

Allocation Worksheet) and DA Form 5462–1 (Continuation of Tip Allocation Worksheet). 

a. DA Form 5462 must be used to calculate tip allocations distributed among affected employees. 

b. Data collected on DA Forms 5462 and 5462–1 for each year is compiled and entered on IRS Form 8027 at the 

end of each year. IRS Form 8027 is filed annually with the servicing IRS district office by the last day of February for 

the previous calendar year. 

c. Detailed instructions for completing DA Forms 5462 and 5462–1 are found at www.armymwr.com or may be 

requested from FMWRC. 

C–11. Employer identification number 

Each food and beverage activity must have a unique 15-digit employer identification number for tip allocation 

purposes. The number identifies each specific reporting program and the nature of its food and beverage operations, as 

follows: 

a. The first nine digits identify the employer. 

b. Generally clubs will be assigned a 2 or 3 as the 10th digit; other programs will be assigned a 3 or 4. The 10th 

digit identifies the nature of the food and beverage operations from among the following categories: 

(1) Serves only dinner. 

(2) Serves dinner and other meals. 

(3) Serves meals other than dinner. 

(4) Serves alcoholic beverages with only incidental or no food service. 

c. The last five digits are assigned by the reporting program, beginning with 00001, and used to identify separate 

operating locations of the same reporting program, such as annexes, or to differentiate between different operating 

elements of the same reporting program, such as the formal bar, informal bar, dining room, and other functional areas 

of the same club. An example is the employer identification number (10 digits) plus 00001 for the bar and 00002 for 

the dining room of an officers’ club. 

Appendix D 

Appropriated Fund and Nonappropriated Fund Funding Authorizations 

D–1. Funding resources 

MWR programs and other NAFIs are resourced from either APFs or NAFs or a combination of both or private 

commercial resources where authorized and appropriate. NAF expenditures for valid MWR purposes are not an 

augmentation of appropriations. Additional funding policies are addressed in chapter 5 of this regulation. 

D–2. Funding authorizations 

General funding authorizations for NAFIs are outlined in Table D–1. 


183

Table D–1 

Funding Authorizations 

Elements of Resources APF NAF 

1. Military personnel. See chap 14, this regulation 

and ARs 570–4 and 614–200. 

a. Permanent assignment 

A B C1, 2, 3, 4 

(1) ECECS. Authorized Authorized Authorized Not Applicable 

(2) When determined that military personnel are required 

to support wartime or contingency operations, 

based on past practice, required for overseas rotation, 

or cannot be filled effectively with civilians. 

Authorized Authorized Not Authorized Not Applicable 

(3) A lifeguard position at swimming pool. Authorized Not Authorized Not Authorized Not Applicable 

(4) All other personnel. Authorized Authorized Not Authorized 5 Not Applicable 6 

b. Temporary assignment. Assigned on a temporary 

basis (includes special duty and its two componentsborrowed 

military manpower and troop diversion) to 

perform duties or functions primarily associated with 

MWR programs and activities for no longer than 90 

days (see chap 14). Assignments may be made only 

when mobility or deployment requirements occur or 

when training to upgrade or maintain essential military 

skills cannot be provided through other means. 

(Temporary assignment is also subject to the provisions 

in ARs 570–4 and 614–200.) 

c. Detailed. Active duty military personnel detailed to 

perform duties on a infrequent or one-time basis in 

support of an MWR garrison-wide event (for example 

MWR concert). Authorization to detail military personnel 

is at the discretion of the commander. 

2. Civilian Personnel. See chapter 14, this regulation. 

a. Permanent assignment utilization. 

Authorized Authorized Authorized Not Applicable 

Authorized Authorized Authorized Not Applicable 

(1) Performing ECECS. Authorized Authorized Authorized, except 

for AAFES 

unless authorized 

by footnote 

7. 

(2) Personnel performing managerial functions or requiring 

technical and/or professional qualifications. 

Also personnel accountable for APF resources and 

the protection in the interest of the Federal Government. 

(3) Personnel directly and primarily involved in resale 

(see chap 12 and glossary). 

Authorized 

Authorized Authorized Not Authorized 7 Authorized 

Not Authorized Not Authorized Not Authorized Authorized 

(4) For any other personnel. Authorized Authorized Not Authorized Authorized 

b. Additional/collateral duties. Applies to APF employees 

who are assigned duties on an additional or 

collateral duty basis. These duties are in addition to 

the civilian employees’ primary duty assignment and 

may be of an ECECS or operational nature. When 

less than 25 percent of duties are NAF or MWR specific, 

no cost should be allocated to the NAFI or 

MWR program. 

3. CPAC/CPOC Support. 

a. Technical advice and counsel that may be provided 

by the CPAC/CPOC to assist in the personnel 

management of employees paid with NAFs. 

Authorized Authorized Authorized 7 Not Applicable 

Authorized Authorized Authorized Not Authorized 


Table D–1 

Funding Authorizations—Continued 

b. Day-to-day personnel administration of employees 

paid with NAFs to include, but not limited to, recruitment, 

placement, position classification, salary and 

wage administration, training, personnel records 

maintenance, employee relations, and personnel 

matters. 

4. Family Housing Overseas. Applies to employees 

who are authorized housing or a housing allowance 

in overseas areas. 

Authorized when 

no additional incremental 

APF 

costs are incurred. 



APF 




APF 


Authorized 

a. APF Personnel. Authorized Authorized Authorized Not Authorized 

b. NAF Personnel. Authorized for 

APF-authorized 

positions. 

5. Personnel Evacuation Expenses. Includes evacuation 

payments, evacuation transportation to and 

from safe-haven locations, and per diem and subsistence 

allowances for employees ordered to evacuate 

by the commander or other DOD authority. 

Authorized for 


positions. 



positions. 

Authorized 

a. APF personnel. Authorized Authorized Authorized Not Authorized 

b. NAF personnel. NAF employees may not receive 

evacuation benefits beyond the amounts and limitations 

authorized in the JTR. 

6. Travel of Personnel. 

a. Permanent change of station (PCS). Applies to 

relocation of APF and NAF personnel assigned on a 

full-time permanent basis to NAFI programs and activities 

for— 

Authorized Authorized Authorized Authorized only when 

APFs are not available 

or sufficient. 

(1) APF personnel. Authorized Authorized Authorized Not Authorized 

(2) NAF personnel. APFs not authorized in categories 

A, B, and C except for APF-authorized NAF positions 

or for costs that are a direct result of an approved 

BRAC action. 

b. Temporary duty (TDY) travel. 

(1) Applies to TDY for personnel employed by or assigned 

or detailed to NAFI programs and activities. 

(a) APF personnel. NAF authorized for personnel engaged 

in internal NAFI operations. 

(b) NAF personnel. APFs authorized in categories A, 

B, and C when travel is directed by an authorized 

DOD official and relates to the APF business. 

(2) Participants in athletic, recreation, and entertainment 

events conducted as part of the MWR program. 

Includes international and national sports competitions 

authorized by statute and other DOD issuances 

to include command supervision. (See chapter 

8.) NAFs authorized in category B competitions 

when APFs are not sufficient NAFs authorized for 

other competitive events budgeted by FMWRC. 

7. Use of Government-Owned Vehicles. Relates to 

use of Government-owned, motor pool-controlled 

passenger vehicles by a NAFI program or activity. 

APFs authorized in category C to assist in the performance 

of ECECS (see chap 13). NAFs authorized 

to reimburse APFs for use of Government-owned vehicles 

for other than ECECS in category C. 

8. Transportation of Things. 

Not authorized Not authorized Not authorized Authorized 

Authorized Authorized Authorized Authorized 


Authorized Authorized Not Authorized Authorized 


a. Goods purchased with APFs. Authorized Authorized Authorized Not Authorized 

b. Goods purchased with NAFs. 


185

Table D–1 


(1) Transoceanic movement of goods from CONUS 

sea and aerial ports of embarkation to first destination 

OCONUS or bulk breakdown point. (See chap 

13.) NAFs not authorized for AAFES per footnote 8. 

(2) Transoceanic movement of goods from OCONUS 

sea and aerial ports of embarkation to first destination 

CONUS or bulk breakdown point. 

(3) Movement of U.S. and foreign goods within foreign 

areas when commercial transportation is not 

available or in contingency areas. Includes the 

movement of goods to remote and isolated locations. 

(4) Movement of U.S. goods between DOD installations 

because of base closure or to safeguard goods 

under emergency conditions, for example, threat of 

hostile force or natural disaster. 

(5) All other transportation of NAF goods. Not authorized 

in all categories except on a reimburseable 

basis. Initial APF funding permitted only when NAFs 

reimburse APFs. 

c. Household goods. Applies to the authorized transportation 

of household goods for either— 

Authorized Authorized Authorized. Must 

be used for 

AAFES per footnote 

8. 

Authorized when APFs 

are not available. 

Authorized Authorized Authorized Authorized when APFs 







(1) APF personnel. Authorized Authorized Authorized Not Authorized 

(2) NAF personnel. APFs authorized for categories 

A, B, and C for APF-authorized NAF positions. Initial 

APF funding is permitted for other NAF positions 

only when NAFs reimburse APFs (except at BRAC 

locations that are authorized APFs). 

9. Utilities and Rents. 

a. Utilities. Applies to heat, steam, water, gas, electricity, 

air conditioning, and other utility services for 

buildings on military installations authorized to be 

used for MWR and other NAFI purposes and other 

MWR activities for members of the Armed Forces 

(10 USC 2492). See AR 420–41 for purchase, installation, 

and maintenance of metering devices. Sewage 

disposal and garbage and trash removal are not 

considered utilities (see para 13h). 

b. Rents. Applies to the use and possession of non- 

DOD lands, buildings, and other improvements and 

installed equipment for a specified period through 

contract, lease agreement, or other legal instrument 

when authority is granted through appropriate channels. 

APFs not authorized in categories A, B, and C 

except upon specific approval by the Secretariat and 

in accordance with AR 405–10. Use of NAFs for limited 

term leasing of recreational facilities is authorized 

for category C per chapter 5. 

10. Communications. 

a. Electronic communications. Applies to electronic 

communications (telephone, Internet, television, Defense 

Service Network (DSN), fax, public address 

systems, and other electronic media) provided to 

NAFIs. 

(1) Support of command management functions, statistical 

data gathering, communications with other 

DOD and Government agencies, and OCONUS. 

APFs authorized for category A Internet cafes in deployed 

areas. 

(2) Support of the operational function of the activity, 

for example, procurement of items for resale and collection 

of income for merchandise or services sold in 

CONUS. 


Authorized Authorized Authorized except 

for golf 

courses and golf 

course structures 

per footnote 9. 

Authorized for category 

C costs in 

CONUS when APFs 

are not available, and 

when not precluded by 

footnote 10. 

Not authorized Not authorized Not authorized NAF leases authorized 

in accordance with AR 

215–4 and AR 405–10. 




Table D–1 


b. Postal service, mail indicia, and postage. 

(1) For official mail. Any material transmitted through 

domestic, international, or military postal channels 

that relates exclusively to U.S. Government purposes, 

such as official communications with and between 

Government agencies/individuals, communications 

with commercial agencies and communications 

related to common support functions. APFs are 

not authorized for resale of goods and services or 

collection of resulting income, regardless of category. 

(2) For unofficial mail. The transmission of any material 

that relates exclusively to a similar commercial 

business operation, such as inventory procurement 

and sales, collection of income, advertising, NAF 

equipment maintenance, and so forth. (Does not preclude 

use of APO/FPM for unofficial mail.) 

Authorized Authorized Authorized Authorized for all correspondence 

related to 

the operation of the 

NAFI. 


11. Equipment Maintenance. 

a. Government-owned equipment. Applies to maintenance, 

repair, overhaul, or rework of equipment. Category 

C authorized APFs except for surplus/excess 

Government equipment. 

b. Equipment acquired with NAF. APFs authorized in 

all categories for equipment acquired with NAFs but 

authorized for purchase with APFs where title transfers 

to the Government. 



12. Printing and Reproduction. Applies to printing 

and reproduction (work done on printing presses, 

lithographing machines, and other duplicating; related 

binding operations; photography; electronic 

media; microfilming; formats and forms; editing; and 

graphics (see AR 25–30). 

a. APFs authorized for all costs in categories A, B, 

and C except those costs related to the sale of merchandise 

or services and the internal operation of 

NAFIs. 


b. Category C MWR programs may use Army printing 

facilities for publicity of activities only when commercial 

reproduction services are not available and 

NAFs will reimburse. 

Not Applicable Not Applicable Authorized Authorized 

13. Services. 

a. Education and training. Pertains to the advancement 

of job knowledge, development of skills, and 

improvement of abilities of NAFI personnel. 

(1) APF positions and APF-authorized NAF positions. 

(2) APF and NAF positions for supervisory, agency, 

or Army approved education or training that is not 

job unique such as management and/or leader development 

courses, quality training, health and safety, 

sexual harassment, and so forth. All NAF employees 

may attend such courses with supervisory approval. 

NAFs not authorized for APF non-tuition 

courses. 

b. Auditing services. Relates to the independent examination, 

review, and evaluation of records, controls, 

practices, and procedures in the area of financial 

and operational management of the NAFI/activities 

by DOD or Army audit organizations or independent 

public accountants, per AR 11–7. 

Authorized Authorized Authorized Authorized for NAF 

personnel. Not authorized 

for APF non-tuition 

courses. 


personnel. 

Authorized in accordance 

with 



with AR 

11–7. 


with 





187

Table D–1 


c. Data automation. Applies to automated data 

processing system development or operation (personnel, 

equipment, supplies) needed for either essential 

command supervision and to discharge a 

commander’s supervisory responsibility for management 

review and analysis. 

d. Financial management services. Relates to those 

services that reflect the preparation of APF and NAF 

budgets, provides accounting for financial management 

data, facilitate the preparation of financial 

reports, and provide for management review and 

analysis to ensure proper control over all resources 

that support NAFIs. APFs authorized in categories A, 

B, and C to provide technical guidance and assistance 

in preparing budgets, financial and analytical 

data required for ECECS. APFs not authorized in 

categories A, B, and C for NAF accounting and analytical 

functions. 

Authorized Authorized Authorized Authorized for costs 

related to internal management 

of NAF resources 

of NAFIs. 

Authorized Authorized Authorized Authorized for all costs 

related to NAF accounting 

and analytical 

functions required for 

the operation of NAFIs. 

e. Legal services. Legal services provided by judge 

advocates at all command levels. 

f. APF contracting office assistance and administration. 

(1) Assistance. Applies to the technical advice and 

assistance that may be provided by the procurement 

office to assist NAFI management in procuring 

goods and services with NAFs. 

(2) Administration. Applies to the functions of procurement 

(source development, preparation of documents, 

negotiation of prices, contract administration 

and audit, and related procurement functions) being 

performed by the procurement office in the procurement 

of goods and services with NAFs. APFs authorized 

for categories A, B, and C when no additional 

incremental APF costs are incurred. 

g. Custodial and janitorial service. Applies to the 

manpower, supplies, and equipment provided by the 

installation engineer or public works department, or 

by contract. 

h. Other services. Relates to those services of a protective 

or sanitary nature normally supplied as a 

command function to all installation employees and 

organizations. Such services include, but are not limited 

to, fire protection, including acquisition and installation 

of extinguishers and sprinkler and alarm 

systems; security protection, including physical and 

security of buildings (for example, alarm systems 

and security bars) and personnel background investigations 

in accordance with AR 380–67; protection of 

funds; pest control; sewage disposal; environmental 

compliance and remediation; trash and garbage removal; 

snow removal; safety; medical, veterinary, 

and sanitary inspections; and rescue operations. 

Veterinary care includes the cost of drugs, biologicals, 

and medical supplies administered by veterinary 

health services personnel to Governmentowned 

animals used by MWR programs (see AR 

40–905). NAFs are authorized only for the cost of 

drugs used in providing veterinary care, with reimbursement 

per FAR procedures. 

Authorized Authorized Authorized Authorized for NAFI internal 

legal staffing. 

Authorized Authorized Authorized Not applicable 

Authorized Authorized Authorized 11 Authorized 

Authorized Authorized Not Authorized Authorized when APFs 

are not available or 

sufficient. 

Authorized for all 

costs associated 

with protecting 

the health and 

safety of participants 

and employees 

and with 

protecting NAFI 

resources. 



with protecting the 

health and safety 

of participants and 

employees and 


NAFI resources. 




the health and 

safety of participants 

and employees 

and with 

protecting NAFI 

resources 12 

Not authorized for Military 

MWR programs 

(Group I). Authorized 

for other Program 

Groups (chap 3) only 

when APFs are not 

available or sufficient. 


Table D–1 


i. Minor construction and modernization. See definitions 

in the glossary. See appendix E for facilities listing. 

j. Sustainment and restoration. See definitions in 

glossary. 

k. Routine grounds maintenance. Includes work required 

to maintain surrounding building grounds 

(common grounds, lawn shrubbery, flowers, 

landscaping, picnic and park areas (on installation or 

off installation recreation sites)). 

l. Day-to-day periodic or scheduled work. Includes 

work to keep facilities in operational condition, such 

as interior maintenance and repair of bowling lanes; 

pin setting equipment; floor covering (carpet, hardwood, 

decorative tile); wall coverings; decorative 

light fixtures to include chandeliers; club bars, 

lounges, snack bars, kitchens (including grease 

traps, range hoods, and ducts); golf clubhouse 

locker rooms, riding stables and fencing; and marine 

docks, dredging, and repair of bulkheads. Also applies 

to equipment maintenance that is a direct function 

of the program (such as repair of stoves, cash 

registers, point of sale systems, dishwashers, liquor 

systems and walk-in coolers). NOTE: BRAC or closing 

installations (CONUS & OCONUS) APF rules do 

not apply. 

14. Petroleum Oil, and Lubricants (POL). 

a. Aircraft POL. Applies to Aircraft POL (including 

fuel additives) consumed by aircraft operated in conjunction 

with an MWR program. Does not include the 

cost of travel of personnel or for transportation of 

things (see paras 8 and 10, above). MWR programs 

can purchase POL from Government sources in accordance 


b. Ship POL. Applies to POL consumed by ships and 

other vessels operated in conjunction with military 

MWR programs. Does not include cost for travel of 

personnel or transportation of things (see paras 8 

and 10, above). MWR programs can purchase POL 

from Government sources in accordance with AR 

710–2. 

15. Supplies. Applies to expendable supply items 

that are consumed or lose their identity when used, 

or whose low value does not require the same accountability 

required for equipment. Included in this 

group are clothing, tentage, organizational tools, administrative 

and housekeeping supplies (other than 

in para. 13g, above), petroleum fuels, lubricants, preservatives, 

coolants, and oil derivatives (other than 

aircraft and ship POL), TV tubes, baseballs, food, 

equipment under $1,000 (DOD 7000.14, Vol 13, 

chap 10) and items available in self-service supply 

outlets. 

Authorized except 

PCS lodging. 

PCS lodging 

authorized under 

footnotes 13 and 

14 


Child Development 

and 

OCONUS Youth 

Services. Other facilities 

authorized 

per footnotes 13 

and 14. 

Not authorized 

unless permitted 

by footnotes 13 

and 14 and appendix 

E. 


for golf 

courses per footnote 

9. 


for golf 

courses per footnote 

9. 


Authorized for PCS 

lodging, category B facilities 

(except Child 

Development and 

OCONUS Youth Services), 

and category C. 

Not authorized per 

footnotes 13 and 14 

and appendix E. 


are not available of 

sufficient. 


are not available or 

sufficient. 

Not authorized Not authorized Not authorized Authorized for MWR 

flying activities only. 



for expendables 

related to 

the sale of merchandise 

or services. 


for expendables 

related to the sale 

of merchandise or 

services. 


supplies required 

for ECECS. 

Authorized 


189

Table D–1 


16. Equipment. Includes the acquisition cost of any 

items of equipment, furniture, or furnishing that does 

not meet the criteria of an investment cost as defined 

in DOD 7000.14–R, Volume 2A. 

17. Other Operating Expenses. Includes the cost of 

types of resources not otherwise provided for, for example, 

investments and loans, grants, subsidies and 

contributions, insurance claims and indemnities, interest 

and dividends, and payments instead of taxes, 

if such resources are included in operations appropriations. 

APFs are authorized in categories A, B, 

and C for all costs incurred incident to the performance 

of functions related to ECECS or as specifically 

authorized by statute or DOD publication. 

18. Non-Operating Expenses. Relates to the following 

services or expenses provided to a NAFI. 

a. Architectural and engineering services. Applies to 

professional services that include the necessary consultations, 

preparation of preliminary studies, analyses, 

cost estimates, working drawings, specifications, 

and interior design and decoration, and to the 

inspection and supervision services required for the 

construction, alteration, or restoration of real property. 

APF authorized in categories A, B, and C for APF 

and NAF construction when no additional manpower 

authorizations are required. 

b. Major construction and modernization. See definitions 

in the glossary. See appendix E for facilities listing. 

c. Purchase or real property. Relates to the acquisition 

cost of land, buildings, and other fixed improvements. 

APFs are authorized for the purchase of real 

property for categories A, B, and C, only to the extent 

approved by Congress. 

d. Investment equipment. Relates to the acquisition 

and use of equipment that meets the criteria of investment 

items as defined in Volume 2A of DOD 

7000.14–R. APFs authorized in categories A, B, and 

C except for equipment related to the sale of merchandise 

or services unless permitted by footnote 

14. 

e. Common support. Consolidated functions supporting 

more than one MWR program, but not solely for 

category C MWR programs (see chapter 5). 

19. Merchandise, Service, and Equipment for Resale 

or Rental. Pertains to merchandise, services, and 

equipment procured by a NAFI/entity for resale or 

rent to authorized persons, or related to the sale of 

merchandise or services. This does not preclude an 

APF employee from selling NAF procured MWR resale 

merchandise when such merchandise is limited, 

such as snacks, soft drinks, fruit juice in a fitness facility, 

or a situation in a category B MWR program 

where both or either a NAF and/or APF employee 

rents both APF and NAF equipment (see chap 12). 


for equipment 

related to 

sale of merchandise 

or services 


by footnote 15. 


for equipment related 

to sale of 

merchandise or 

services unless 

permitted by footnote 

15. 


equipment required 

for 

ECECS and surplus/excess 

Government 

equipment 

and per 

footnote 15. 

Authorized 



construction except for 

inspection and supervision 

services required 

for Government acceptance 

of the facility. 


PCS lodging. 

PCS lodging 

authorized under 

footnotes 13 and 

14. 


Child Development 

and Youth 

Centers 

OCONUS. Other 

facilities authorized 

per footnotes 

13 and 14. 



by footnotes 13 

and 14 or appendix 

E. 

Authorized for PCS 

lodging, category B facilities 

(except CDS 

and OCONUS YS activities) 

and category C 

facilities. Not authorized 

per footnotes 13 

and 14 and appendix 

E. 

Authorized Authorized Authorized Not authorized except 

for the purchase of 

commercially-owned 

buildings located on 

Government property. 





by footnote 15. 

Not authorized unless 

permitted by 

footnote 15. 



by footnote 15 or 

16. 

Authorized. 


Table D–1 


20. Procurement of Equipment Issued Through 

Equipment Checkout Centers. Equipment for self-directed 

and directed participation in MWR programs. 

See chapter 8 for detailed policy. 

21. Awards of Trophies and Similar Items. 

a. Costs of trophies, plaques, and similar items that 

recognize the accomplishments of Soldiers in athletic 

and intramural competitions (see chap 5 and AR 

600–8–22). 



b. Costs of plaques, trophies, and other appropriate 

items acknowledging participation and/or competition 

in MWR contests, youth sports programs, and other 

MWR program competitions accomplished by authorized 

MWR patrons. 


Notes: 

1 Military MWR and AAFES category C programs at remote and isolated locations (table 5–2, this regulation) are authorized funding under category B rules 

except golf course grounds maintenance. Category C programs at installations identified for closure under BRAC may receive APF support authorized for 

category B programs. APFs may finance costs that are a direct result of an approved BRAC action (see para 5–5a, this regulation). Military category C programs, 

including exchanges and supplemental mission NAFIs, at DOD-directed closing installations overseas may receive APF support authorized for category 

B programs (see para 5–5b, this regulation). 

2 On an installation designated under force protection condition Charlie or Delta by the Combatant Commander, Secretariat, or equivalent DOD civilian, Military 

MWR category C programs, excluding golf courses, golf course structures, cart storage buildings, maintenance sheds, and pro shops, are authorized 

APF support for civilian personnel with installation management and supervisory functions (excluding personnel directly and primarily involved in resale), utilities 

and rents, and custodial and janitorial services (see para 5–6, this regulation). 

3 The AFRC in Europe (Edelweiss Lodge and Resort) is only authorized utilities, sustainment, restoration, and modernization of real property and transportation 

of products made in the United States in accordance with 10 USC 2491a. 

4 AFRC lodging, food and beverage operations, and other resale programs are category C military MWR programs. Categories A and B individual programs 

and services, which are located in AFRC facilities, may receive APF support equal to their A and B categorization. 

5 Active duty military personnel performing ECECS are authorized in sufficient numbers for AAFES programs to provide a trained cadre to meet wartime and 

deployment requirements and to perform managerial functions. 

6 Enlisted personnel may be employed during non-duty hours by NAFIs as part-time NAF-paid employees. 

7 Authorized for AAFES programs for funding of civilian personnel in sufficient number to provide a trained cadre to perform ECECS and managerial functions 

to meet exchange wartime deployment requirements in support of contingency, humanitarian, and peacekeeping operations. Permanent assignment 

utilization and the assignment of additional or collateral duties in lieu of military positions are authorized in accordance with this table (para 1) and footnote 5, 

above. Where NAF civilian positions are utilized, APF support is authorized for NAF expenditures incurred for compensation and benefits, travel of personnel, 

transportation of household goods, and education and training. 

8 APF will be used to cover the expenses of transporting AAFES supplies and products to destinations outside CONUS in accordance with 10 USC 2643 

and DODD 4500.9E. 

9 Not authorized for golf courses or golf course structures other than golf club houses inside the United States except those designated by the Secretary of 

Defense as a remote and isolated location in accordance with 10 USC 2491a. Not authorized for cart storage buildings, maintenance sheds, and pro shops 

inside the United States even if part of golf club house. 

10 Rates charged will not include incremental or prorated share of overhaul, maintenance, and repair to utility systems or capital investments in the installation’s 

utility infrastructure systems, unless otherwise specified in an MOA, or ISSAs. See AR 420–41 pertaining to sales agreements and DPW reimbursable 

support. 

11 Authorized for AAFES when existing APF contracts may be used to purchase the items or services. 

12 Trash and garbage removal services are not authorized for AAFES activities in CONUS. 

13 APFs may be used for all community facility construction related to the establishment, activation, or expansion of a military installation or relocation of 

facilities for the convenience of the Government; replacement of facilities denied by country-to-country agreements; restoration of facilities and improvements 

destroyed by acts of God, fire, or terrorism; antiterrorism/force protection measures required under DODI 2000.16; and to correct life safety and 

Americans with Disabilities Act (42 USC 12142) and force protection deficiencies. In the case of installation expansion, a major increase in authorized and 

assigned personnel strength over a short period of time is necessary before APF construction can be programmed. Such expansion must be the result of a 

mission change or influx of new units or systems. For example, a 25 percent increase in a two-year time span satisfies these criteria. In contrast, personnel 

increases resulting from an evolutionary expansion occurring over several years do not satisfy these criteria. 

14 APFs will be used for site development costs, archeological and ammunition clearances, environmental assessment and remediation, water purification, 

demolition, excessive utility connections, and road services. 

15 Authorized for losses caused by acts of God; losses during wartime deployments and in support of contingency, humanitarian, and peacekeeping operations; 

and for equipment required to be in compliance with the Americans with Disabilities Act (42 USC 12142). 

16 APFs are authorized for military clothing and other APF funded items sold in AAFES on a cost-reimbursable basis. 


191

Appendix E 

Construction Funding for Nonappropriated Fund Instrumentalities Facilities 

E–1. Source of funding 

This appendix prescribes the single source of funding for minor and major construction and modernization of 

community facilities for programs and activities of NAFIs. Appropriated funds may be used for authorized NAF 

facility construction under the conditions outlined in paragraph E-2. 

E–2. Appropriated funding in lieu of nonappropriated funding 

Appropriated funds may be used for all community facility construction related to the establishment activation, or 

expansion of a military installation or relocation of facilities for the convenience of the Government; replacement of 

facilities denied by country-to-country agreements; restoration of facilities and improvements destroyed by acts of God, 

fire, or terrorism; antiterrorism/force protection measure required under DODI 2000.16; and to correct life safety and 

Americans with Disabilities Act (42 USC 12142) and force protection deficiencies. In the case of installation 

expansion, a major increase in authorized and assigned personnel strength over a short period of time is necessary 

before APF construction can be programmed. Such expansion must be the result of a mission change or influx of new 

units or systems. For example a 25 percent increase in a 2-year time span satisfies these criteria. In contrast, personnel 

increases resulting from an evolutionary expansion occurring over several years do not satisfy these criteria. APFs will 

be used for site development costs, archeological and ammunition clearances, environmental assessment and remediation, 

water purification, demolition, excessive utility connections, and road services. 

E–3. Ancillary support facilities for housing units 

Under 10 USC 2881, any project for the acquisition or construction of military family housing units or military 

unaccompanied housing units may include the acquisition or construction of community-type ancillary supporting 

facilities for the housing units concerned, provided such facilities are not in direct competition with the Defense 

Commissary Agency or any NAFI. 

E–4. Construction funding 

Construction funding for all groups of NAFIs is outlined in table E–1 by category and facility. 

Table E–1 

Construction funding authorizations 

Program Group, Category, and Facility Type APF/MILCON NAF 

Program Group I - Military MWR 

Administrative Office/Supply Centers 

Category A 

Aquatic Training Facilities/Bathhouse for military training, physical fitness, combat training, 

and/or therapy 

Community Activity Centers X X 1 

Auditoriums/Multipurpose Theaters 

Gymnasiums/Fieldhouses/Physical Activities 

Libraries 

Parks and Picnic Areas 

Playing Courts and Fields (associated with physical conditioning) 

Recreation Centers/Day Rooms/Multipurpose Recreational Facilities 

Arts and Crafts/Skill Development Centers 

Automotive Skill Development Centers 

Bowling Centers (12 lanes or less) 

Campgrounds (less than 100 spaces) 

Car Wash Facility (self-help) 

Child Development Centers 

Category B 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 


Table E–1 

Construction funding authorizations—Continued 

Entertainment Centers (music and theater) 

Marina/Boathouses (without resale or private boat berthing) 

Outdoor Recreation Theaters/Pavilions 

Playing Courts and Fields 

Recreation Equipment Checkout Centers 

Information, Ticketing, and Registration Facilities 

Riding Stables (Government-owned animals/equipment) 

Recreation Swimming Pools/Bathhouses (stand alone) 

Youth Services Centers/Courts/Playing Fields - CONUS 

Youth Services Centers/Courts/Playing Fields - OCONUS 

Category C 

Aquatic centers (commercial grade water theme parks) 

Army-operated Armed Forces Recreation Centers (accommodations/dining and resale facilities) 

Amusement/Recreation Machine Locations 

Bookstores (academic/recreational) 

Bowling Centers (more than 12 lanes) 

Campgrounds/Travel Camps (100 or more spaces) 

Car Wash Facilities (other than self-help) 

Equipment Rental/Sales Centers 

Flying Activity Facilities 

Food, Beverage, Entertainment, and Theme Facilities 

Golf Courses/Facilities 

Leisure Travel Facilities 

Marinas/Boathouses (with retail sales and/or private boat berthing) 

Military Club Facilities (Community, Consolidated, Enlisted, Officer) 

Motorcycle and Moped Tracks 

Outdoor Theaters 

Recreation Lodging Facilities (MWR cabin, cottage, lodge) 

Resale Outlets (also includes facilities for which AAFES has primacy but has permitted MWR 

to operate per resale policy in chapter 12) 

Rod and Gun Facilities 

Riding Stables (with boarding of private mounts) 

Shooting Sports Centers 

Skating Rinks (Ice or Roller) 

Snack Bars/Beverage Stands 

Sport Parachuting Facilities 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

X 

Program Group II - Armed Services Exchanges 

Exchange Logistical, Administrative, Storage and Maintenance Facilities X 2 

Exchange Facilities required in areas of military conflict, wartime deployments, and in support 

of contingency, humanitarian, and peacekeeping operations. 

Exchange Facilities required as integral parts of air terminal, hospital, housing, or other MIL- 

CON projects. 

X 

X 


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Table E–1 

Construction funding authorizations—Continued 

Exchange-operated laundry and dry cleaning plants, bakeries, dairies, or similar facilities in 

support of a military mission, wartime deployments, and in support of contingency, humanitarian, 

and peacekeeping operations. 

X 

All other Exchange Facilities 

X 

Program Group III - Civilian MWR 

Category C 

All Facilities 

X 

Program Group IV - Lodging Program 

Category A 

TDY Lodging Facilities (in support of official TDY travel) 

PCS Lodging Facilities (in support of official PCS travel) 

X 

X 

Program Group V - Supplemental Mission Funds 

Category B 

Stars and Stripes Facilities 


Category C 

X 

X 

Program Group VI - Special Purpose Central Funds 

Category C 


X 

Notes: 

1 If a CAC contains programs that are authorized NAF for construction, NAFs may be used to fund construction of the CAC. 

2 APFs must be used outside the United States. 

Appendix F 

Standard Nonappropriated Fund Number 

F–1. Requirement 

A 12-digit SNN is assigned to each Army NAFI and garrison MWR operating entity and is used for administrative 

purposes. DA assigns the first three digits. The remaining digits are assigned by the garrison to reflect the management 

and financial structure of the NAFI/entity. The entire 12-digit field is not required for most purposes. Accounting 

transactions are coded to the general ledger account code level. Insurance and employee benefits programs require only 

the first three digits to identify transactions. Insurance claims are coded to the program code. All payroll and personnel 

action transactions are coded to the department level. 

F–2. Explanation 

a. The first and second characters identify the garrison or other location and the third character identifies the type of 

fund/entity. These SNNs are found at the MWR Web site, www.armymwr.com, under Financial Management. 

b. The fourth and fifth characters identify the program. These codes are contained in FMWRC MWR and lodging 

financial management guidance (annual budget instructions) and are posted on the MWR Web site. 

c. The sixth and seventh characters are location codes assigned locally. 

d. The eighth and ninth characters identify the department code. These codes are contained in the annual budget 

instructions issued by FMWRC and posted on the MWR web site. 

e. The tenth, eleventh, and twelfth characters identify the general ledger account code, which is governed by DOD 

7000.14–R, volume 13. The general ledger account code is also contained in the annual budget instructions issued by 

FMWRC, which are posted on the MWR Web site. 


F–3. Assignment 

a. The basic three-character code (garrison and fund/entity) is used to identify each NAFI/entity worldwide and will 

be assigned only by FMWRC (IMWR–PO). Requests to establish NAFIs/entities are submitted to Commander, Family 

and Morale, Welfare and Recreation Command, ATTN: IMWR–PO, 4700 King Street, Alexandria, VA 22302–4419. 

b. Program codes and department codes are administered by HQDA. The applicability of use of existing program 

and department codes is determined at the local level based on published FMWRC guidance. Requests for additional 

program and department codes will be addressed to Commander, Family and Morale, Welfare and Recreation 

Command, ATTN: IMWR–FM–C, 4700 King Street, Alexandria, VA 22302–4406. 

Appendix G 

Cash Inventory and Retail Sales Accountability (Controls and Procedures) 

G–1. Cash controls 

a. Cash control is based on immediate recording of cash received at the point of sale, depositing cash in banks, and 

controlling change and petty cash funds to preclude undetected loss or theft. Accountable forms such as sales slips, 

guest checks, vouchers, and receipts will be part of the control system administered by the CAO, FMD, services 

division or equivalent, based on garrison needs. All such forms will be prenumbered. Control numbers are not assigned 

by using activities. The first and last numbers of each series of forms used are reported to the CAO or other 

administrator at the end of each month. Used accountable forms will be received by the administrator before the 

monthly accounting closeout. 

b. Cash receipts will be recorded on prenumbered receipt vouchers when cash registers are not available or 

operational. Receipt vouchers will also be used to record cash received from miscellaneous sources. DA Form 1992 

(NAF Receipt Voucher) is used for this purpose and controlled and accounted for the same as change funds. 

Procedures for using receipt vouchers are explained in DOD 7000.14–R, volume 13. 

c. Cash controls will include a clear separation of duties between those persons preparing deposits, cash receipts 

journal, disbursements journal, bank reconciliations, and persons with signatory powers. 

G–2. Cash registers 

a. The use of mechanical, electrical, or electronic cash registers that are capable of permanently recording the 

amount of each sale is the method preferred for immediate recording of cash receipts. Receipts will be recorded either 

by continuous paper tape or an internal memory that permits storage and recall of receipt data. 

b. Amount of sales will be clearly visible to each customer. 

c . P r e n u m b e r e d c a s h c o n t r o l d o c u m e n t s w i l l s u p p o r t r e g i s t e r r e c e i p t d a t a t o t h e m a x i m u m p r a c t i c a l e x t e n t . 

Specifically— 

(1) Food and beverage customers will receive guest checks. 

(2) Other customers will receive a sales receipt, guest check, or register tape. 

d. Cash register change fund controls are listed below. 

(1) Register operator will sign for operating change funds on DA Form 4082 (Daily Cashier’s Record). 

(2) Prenumbered cash control documents will be issued to register operators at the same time as change funds, using 

the applicable portion of DA Form 4082. 

(3) As receipt for cash received, signed DA Forms 4082 will be placed in a safe or where remaining change funds 

are kept. 

e. Operation controls are listed below. 

(1) Only one person will be assigned to each cash register drawer, except for head cashiers in the performance of 

their duties. If cash registers have more than one drawer, there will be separate access keys for each operator. 

(2) Overrings (ringing up more than the transaction amount) or underrings (ringing up less than the transaction 

amount) are verified and voided on cash register tapes by the operator and initialed by the supervisor. To correct an 

error, the correct amount will be subtracted from sales, explained on DA Form 4082, and forwarded with voided tape 

to the CAO. Locally developed, over-/underring slips with signature of affected customers will be required for each 

correction. Adjustment by overcharging or undercharging a subsequent sale is prohibited. 

(3) Cash register drawers will be closed after each transaction. 

(4) At the close of business, cash registers will be emptied of cash, drawers are left open, and register controls are 

locked. 

f. Only the manager or a designated representative may close out registers. Procedures will be as follows: 

(1) Subtotal the register. Subtract the previous reading from the closing reading to determine total daily sales. Clear 

register totals only at the end of the month. 

(2) On the register tape, identify the register, date, and person taking the reading. 


195

(3) Attach tape to DAR. 

g. Individual cashiers account for change funds, prenumbered cash control documents, and cash receipts, as stated 

below. 

(1) Cashiers will be relieved only after completing a cash count. Register sales and pre-numbered cash control 

documents will be reconciled with cash collected. 

(2) Unused prenumbered cash control documents will be recorded on DA Form 4082. 

(3) Used, prenumbered cash control documents will be attached to DA Form 4082 as supporting documents. 

(4) Individuals accepting cash will verify and document the amount on DA Form 4082 in the presence of the cashier 

being relieved. 

h. Cash accountability is achieved as listed below. 

(1) Cashiers will not keep overages or make up shortages reported on DA Form 4082, unless held pecuniary liable 

as a result of an investigation conducted in accordance with this regulation. 

(2) Managers or their representatives will make unannounced counts of petty cash and change funds at least 

quarterly. Unannounced counts will not preclude making announced counts, each of which is documented to show 

items listed below. 

(a) Date and time of the count. 

(b) Total amount of cash counted, by denomination. 

(c) Identity of the cash register or change fund. 

(d) Names of accountable persons and persons making the count. 

i. Activities using approved point-of-sale equipment and software will use the provided system to accomplish the 

controls listed in paragraphs G–2a through h. 

G–3. Safekeeping of cash and bank deposit procedures 

a. Cash will be deposited at the local bank unless cash on hand totals less than $500 or 7 days have passed since the 

last deposit, regardless of amount. Deposits will be made on the last business day of the month regardless of the 

amount. 

b. Daily cash receipts will not be added to or commingled with change or check-cashing funds except to exchange 

currency for maintaining a desired mix of denominations. Additional amounts will be added to cash funds only by 

drawing a check on the central bank and cashing it at the local bank. 

c. Cash deposits of $5,000 or more must be transported to the bank with an armed escort, military police, police, 

armored car service, or licensed armed escort service. Daily cash receipts will be deposited in the local bank as 

follows: 

(1) Deposits will be made as soon as possible after the close of the business day. 

(2) If the time of deposit coincides with banking hours, the deposit will be made over the counter; deposits before/ 

after banking hours will be made by night depository, where available. (Night deposit service will be included, where 

possible, in all local banking contracts.) If no night depository is available, each deposit will be held in a locked safe 

and deposited at the start of the next business day. Rules for using safes and security containers to hold cash include— 

(a) Fire-resistant safes, equipped with a three-tumbler combination lock (or digital touch pad locking system, when 

approved by security personnel). File cabinets specifically designed as security containers that are fire resistant and 

have the same type of lock are acceptable. Regardless of the type of container, it will be chained or otherwise secured 

to the building and checked before the building is closed to ensure it is locked. Open safes will never be left 

unattended. 

(b) The Director, FMWR will establish written guidelines that limit knowledge of combinations to those who need 

to know. 

(c) Combinations will be changed at least annually or when— 

1. It is suspected the combination has been compromised. 

2. An individual with knowledge of the combination no longer has a need-to-know. 

3. An individual with knowledge of the combination is no longer an employee of the activity. 

(d) Each combination change will be recorded on SF 700 (Security Container Information). The first page is affixed 

to the inside of the lock drawer of the container. The second and third pages are placed in a sealed envelope and 

deposited with the installation military police or security officer. 

d. Change funds may be maintained for daily operations such as check cashing, foreign currency exchange, and 

cashier banks. Change funds, other cash funds, and negotiable securities in excess of $100 will be kept in a locked 

safe. 

e. A stringent key control program will be established for all MWR programs. Employees will not take keys to 

locked filing cabinets or operational keys home with them. 

f. Cash funds of $100 or less may be kept in a lockable file cabinet. The following additional controls will be 

employed: 

(1) Keys will not be kept in unlocked containers, such as desks, and are not given to unauthorized personnel. 


(2) Containers will be checked to ensure they are locked before the building is closed. 

(3) Locks will be changed whenever personnel having had keys are no longer authorized access. 

g. Bank deposits that exceed $100,000 in any single account will be reported to FMWRC as required by chapter 16, 


h. A DAR will be prepared for each business day, whether or not a deposit is made. Combined or delayed deposits 

are annotated on appropriate daily reports when deposits are made. 

i. Amounts of currency, coins, and checks in each deposit will be entered separately on the deposit ticket. The 

amounts of checks in each deposit will be reconciled, with check totals supported with an adding machine tape of the 

check calculation attached to deposit tickets. The total amount of deposit shown on the deposit ticket will agree with 

the DAR. 

j. Deposits, cash, or other valuable are given to only properly bonded couriers or messengers as specified in this 

regulation. 

k. Bond requirements for MWR positions are addressed in paragraph 19-64 of this regulation. 

G–4. Petty cash funds 

Petty cash funds will pay for items, services, or incidental expenses for which payment by check is not feasible. As an 

alternative to normal procurement procedures, commanders may authorize purchases up to $500 using petty cash. Such 

purchases will not be used to circumvent normal procurement procedures; they are intended to reduce administrative 

costs of small or nonrepetitive purchases. Petty cash controls are listed below (additional policy is in DOD 7000.14–R, 

volume 13). 

a. Petty cash funds and the amount designated for each will be established in writing by the Director, FMWR . 

b. Checks issued to replenish petty cash funds will identify the responsible MWR program. 

c. Each transaction will be documented with a pre-numbered DA Form 1994 (Petty Cash Voucher) signed by the 

designated approval authority. A separate voucher will be used for each disbursement. Supporting data, such as 

invoices or freight bills, supplementing the voucher will be attached to the voucher when turned in for reimbursement. 

Supplements are not used instead of vouchers. 

d. Paid vouchers and supporting documents will be clearly stamped “paid,” dated, and initialed by the person 

making the disbursement. 

e. All voucher numbers will be accounted for when petty cash is replenished. 

G–5. Checks 

a. Commanders will specify which MWR programs may offer check cashing service. Such service will be offered 

only to authorized MWR patrons and to replenish petty cash or change funds. 

b. Payroll checks will not be cashed. 

c. The Director, FMWR will set the level of the check cashing fund based on local requirements. 

d. First-party and, at the local commander’s discretion, second-party personal checks will be accepted to pay for 

goods or services and for payment to charge or credit accounts. All checks will be payable to (or, for second-party 

checks, endorsed to) the appropriate MWR program. As a convenience to patrons, commanders may approve of MWR 

programs accepting first- and second-party personal checks in excess of the amount of purchase with the balance 

returned in cash. Commanders will determine the maximum amount of cash over purchase, considering such factors as 

cash flow, bad check history, product prices, cash available, and security. 

e. Limitations on the number and dollar amount of personal checks will be determined subject to the availability of 

cash and local demand. A limit of $100 per day per patron is considered reasonable. 

f. If SSNs are retained in an MWR database controlled by the MWR program or garrison MWR entity, the SSN 

need not be written on checks. At each check cashing point, the following statement, or similar statement is displayed 

prominently: “NOTICE TO CHECK CASHIERS: DISCLOSURE OF YOUR SOCIAL SECURITY NUMBER AND 

OTHER PERSONAL INFORMATION IS STRICTLY VOLUNTARY. HOWEVER, YOUR SSN AND PERSONAL 

INFORMATION (IF NOT RETAINED IN AN MWR DATABASE) MUST BE PROVIDED IF YOU WANT TO 

CASH YOUR CHECK HERE. ALL INFORMATION FURNISHED, INCLUDING THE SSN, IS USED ONLY TO 

IDENTIFY WRITERS OF UNPAID RETURNED CHECKS.” 

g. Check cashing procedures are as follows: 

(1) The employee cashing the check will initial it. 

(2) Positive identification will be made to ensure eligibility of the person cashing the check. 

(3) Checks cashed by clubs for members will be annotated with the club card number. Checks cashed by other 

MWR programs and NAFIs will include the patron’s name, Social Security number, and home address. If the SSN is 

retained in a database controlled by the MWR program manager or NAFI, it need not be written on the check. Active 

duty military and DOD employees will include their place of employment. 

(4) Checks payable will be endorsed to the appropriate NAFI/entity. 

(5) Postdated checks will not becashed. 


197

(6) Persons disbursing cash will not cash their own checks. 

(7) Upon presentation, each check will be endorsed on the reverse side. A rubber stamp, imprinted with “FOR 

DEPOSIT ONLY TO THE ACCOUNT OF (name of fund); ACCOUNT NO. (bank account number of fund)” is used. 

(8) Checks are not retained in the check cashing change fund beyond the next deposit after receipt. Checks returned 

as nonnegotiable are recorded in the accounts receivable returned checks account until collection is made or write off 

approved. 

(9) Checks will not be cashed for anyone who owes for dishonored checks or for anyone whose DOD ID card has 

been overstamped, reflecting the person’s loss of check cashing privileges. 

h. See the Financial Management section on Web site, www.armymwr.army.mil, for debt collection procedures. 

i. A returned check charge will be assessed to recover expenses for administrative and actual expenses associated 

with collecting dishonored checks. 

(1) Charges will not be made if the patron presents a letter from a Government finance office or financial institution 

stating that the check return was because of a Government or institution error. Charges will be refunded if they were 

paid prior to notification of a Government or institution error. 

(2) The returned check charge will be the actual administrative cost and other expenses of collection (plus actual 

costs to the NAFI/entity, such as bank fees for the returned check) or an amount comparable to that normally charged 

in the local community. In the absence of a determination of administrative cost or a survey of the local community, a 

minimum charge of $15.00 will be applied. 

(3) Notice of return check charges will be displayed near check-cashing and payment facilities. 

G–6. Inventory and warehouse controls 

a. Receipt of overages, shortages, and damaged merchandise. 

(1) Shipments received in damaged condition will be held at the receiving facility. Shipments with concealed 

damages will be held at the program storage facility. Disposition instructions will be provided by the contracting 

officer, program manager, or other competent authority. Claims will be initiated by the contracting officer or procurement 

source for all damaged shipments before invoices are paid. Partial payments for the undamaged portions of 

shipments will be made when directed by the contracting officer. 

(2) Receipt of damaged items or shipments with overages or shortages will be noted on receiving documents and 

verified by the program or fund manager/entity administrator. Copies will be sent to the contracting office or 

procurement source for claims action and to the CAO for adjustment of accounting records. 

(3) Concealed damages will be reported to the program or fund manager/entity administrator upon detection. 

Supporting documentation, outlined below, will be sent to the contracting office or procurement source for claims 

action and the CAO for adjustment of accounting and inventory records. 

(a) Nature and extent of damages. 

(b) Circumstance of discovery. 

(c) Photographs of damaged items in original shipping container, if appropriate. 

(d) Any other reasonable documentation required by the vendor or shipper. 

(4) Food and beverage items not prepared for sale that are thought to be spoiled will be inspected by the garrison 

veterinarian. The veterinary certification will be included with the DAR and sent to the servicing CAO for adjustment 

of accountability. Spoiled products will be destroyed as prescribed by the program manager. 

(5) Alcoholic beverage bottles damaged in shipment or with concealed damages will be processed in accordance 

with the purchasing agreement. Damaged bottles not eligible for this processing will be saved (at least the band-sealed 

neck) until a disinterested person appointed by the Director, FMWR witnesses its destruction. The signed witness 

statement and the inventory list of damaged bottles will be sent to the CAO and recorded per DOD 7000.14–R, volume 

13. 

b. Control of storage and issue facilities. Storage and issue operations will be centralized to the maximum practical 

extent. Depending on the size of the installation and the number and scope of programs, all storage and issue 

operations may be concentrated in a single warehouse or in separate facilities operated by each separate program. The 

controls listed below apply. 

(1) Central, shared-use facilities will be managed solely by persons designated by the program or fund manager/ 

entity administrator. 

(2) Each facility will be locked when not in use. 

(3) Items will be issued only on prescribed forms and signed by both the issuer and receiver. Deliveries will be 

made to the receiving facility unless it is determined by the program or fund manager/entity administrator to be more 

advantageous for deliveries to be made directly to the using program. 

(4) A perpetual inventory of each stocked item will be maintained on DA Form 1991 (Stock Record Card). 

(5) On receipt, items will be inspected and reconciled against specifications. 

(6) Copies of receiving reports, invoices, and related documents will be sent with the DAR to the CAO so that full 


advantage may taken of cash and prompt payment discounts, contract terms verified, and incomplete or damaged 

shipments identified. 

(7) Instances of damaged or incomplete shipments will be investigated promptly. 

(8) Items received on credit that are returned to commercial vendors will be accompanied by appropriate documentation 

and a copy will be forwarded to the CAO for verification against the original invoice and receiving report. 

(9) Transfers between programs and departments will be recorded. Records will be forwarded with the DAR to the 

CAO. 

c. Inventory control. 

(1) Physical inventories will be performed monthly for merchandise purchased for resale and consumable supplies. 

(2) All other NAF property will be inventoried annually and upon change of fund managers/entity administrators or 

an accountable officer. 

(3) Validation of inventories include the following actions: 

(a) Internal inventories will be conducted by employees. Inventories will be taken by someone other than the person 

directly responsible. However, during an inventory, the person directly responsible may locate, but not call, items to 

expedite the inventory. The Director, FMWR or a designated representative will supervise the conduct of inventories. 

(b) Independent inventories will be conducted by disinterested persons, not employed by the MWR program being 

inventoried. 

(4) Each inventory, regardless of frequency or type, will include a visual count of merchandise and comparison of 

the results to the balances carried on the accounting and property records. Variances not reconciled will be reported to 

the fund manager/entity administrator or accountable person. Unaccounted for items that are not subsequently recovered 

will be reported as lost in accordance with chapter 18. 

(5) Inventory results will be reported to the fund manager/entity administrator or accountable person and will be sent 

to the CAO for reconciliation with stock records. 

(6) Bar stock will be inventoried. 

(7) Bars with automated dispensing systems will be inventoried at the end of each month. The dispensing system 

will include all supply lines connecting the rack room source to the bar dispenser. Reconciliation will be performed at 

the end of each month between stock used and quantities dispensed. Variances will be explained in writing. 

(8) Bar condiments and garnishes will be charged to cost of goods at the time of issue. 

(9) A perpetual inventory will be maintained for sensitive and high-dollar-value items, including food, beer, and 

wine. Specifically— 

(a) A physical inventory will be performed daily. 

(b) Inventory documents will be posted daily to reflect opening inventory, transfer in and out, and closing inventory. 

(c) Quantities sold will be reconciled with the cashier’s scatter sheet, or summary of sales recorded for each cashier. 

(d) Variations will be explained in writing. Explanations will be maintained with inventory records until the next 

audit. 

(10) Procedures for conducting physical inventories are provided in DOD 7000.14–R, volume 13. 

G–7. Retail sales accountability 

a. Accountability controls. All NAFIs/entities that have resale operations will use accountability controls regardless 

of volume. 

(1) Results of comparing sales records to actual receipts and applying standard accounting tests, based on inventory 

turnover, will be used to identify significant variances and responsibility for fraud and embezzlement. 

(2) Sales accountability tests will be performed monthly in coordination with monthly inventories. Only programs 

with low daily sales volumes, insufficient to necessitate daily bank deposits, may perform sales accountability tests 

quarterly. 

(3) Sales accountability tests will be performed on a random basis. As a means of minimizing disruption of 

operations, tests will be conducted concurrently with performance of scheduled inventory counts and sales accountability. 

Tests will validate procedures in practice and provide for— 

(a) Complete and accurate inventories. 

(b) Accurate and supported entries on sales accountability statements. 

(c) Thorough research, effective resolution, and adequate documentation of discrepancies. 

(4) Effective dates of retail price changes will be coordinated with inventory schedules to ensure accuracy of 

recorded retail values. 

(5) Automated procedures will be used to the maximum practical extent to ensure sales accountability data accuracy. 

b. Accountability tests. 

(1) Accountability tests involve the application of standard accounting calculations to detect variances between 

expected and actual receipts based on known factors such as inventory turnover and retail costs. For MWR resale 

operations, accounting tests will be applied to the cost of goods sold and gross sales revenue. Maximum allowable 

variances will be as indicated for the following resale operations: 


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(a) Cost of goods sold: food items 2 percent and other items 1 percent. 

(b) Expected and actual sales, based on inventory turnover—alcoholic beverage service, 2 percent; food or food and 

beverage service, 2 percent; all other, 1 percent. 

(2) Resale operation accountability tests will be performed when cost of goods sold fluctuates outside reasonable 

program tolerances. Computations continue until variances are not exceeded for 2 consecutive months. 

(3) Expected cost of goods and expected gross sales will be compared to actual results. 

(4) If the allowable variance, or a total of $450, is exceeded, a report will be forwarded through the appropriate 

Director, FMWR or equivalent division chief to the program manager for explanation and correction. 

G–8. Sales accountability for storage space leased by morale, welfare, and recreation programs 

MWR programs that provide space for patrons to store their personal property, such as boats, motor homes, and 

trailers, will require patrons to sign a contract outlining program/user responsibilities, including proof of insurance. The 

contract will include a specified period (monthly, quarterly, or annually). Payment will be made when the contract is 

signed and a copy of the payment receipt is attached to the contract. The MWR program will send a contract expiration 

notice to the patron at least 15 days prior to the expiration date. A master list indicating the total spaces available, the 

number occupied/vacant, and total amount of money due and collected will be kept current daily and compared with 

the contract file. 

G–9. Customer returns 

Merchandise returned by customers for refunds or credit will be processed as follows: 

a. Each return will be accompanied by a proof of sale, such as a cash register receipt or sales slip. 

b. A local refund document, as a record of the refund or credit, will include— 

(1) Name of the person requesting the refund or credit. 

(2) Name of the person approving the refund or credit. 

(3) Reason for the return. 

(4) The price paid by the customer and the actual sale price of the merchandise, if different. Any difference is fully 

explained. 

c. The proof of sale will be attached to each refund document. 

d. If the price paid differs from the actual sale price, the customer will be entitled to a refund or credit for the price 

paid. 

e. Accounts receivable will be credited only when cash is received, merchandise is returned for credit, or the 

account is charged off as not collectible. Customer bills will be verified to accounts receivable balances before being 

mailed by a person other than the one who prepared the statements. Access to accounts receivable records will be 

restricted to ensure that persons receiving payments or initiating charges do not have access to the subsidiary record. 

G–10. Implementation of the Presidential $1 Coin Act (Public Law 109-145) 

a. The $1 coin provisions apply to locations where cash is exchanged with customers (cash registers, cashier cages, 

and so forth) and to all vending machines that accept cash and dispense articles or services. The provisions of this Act 

were effective by the end of 2007. Not included as vending machines are recreation machines (for example, amusement 

machines, jukeboxes, pinball machines, electronic game machines, pool tables, shuffle boards); gaming machines 

which dispense monies; laundry machines (clothes washer, dryer, and soap dispensing machines in lodging facilities); 

and telephones. 

b. MWR programs will accept and dispense the $1 coin as part of the normal course of business. 

c. The $1 Coin Act requires all locations where cash is exchanged with customers to display signs and notices 

denoting capability to accept and dispense the $1 coins. Notices will be affixed to each vending machine. 

d. Where there is a contract with AAFES or commercial vendors to provide MWR services, and where such 

machines are provided by the blind vendors under the Randolph-Sheppard Act, it is the responsibility of AAFES, the 

commercial vendor, or the blind vendor to modify their machines to meet the requirements of the $1 Coin Act. 

Appendix H 

Copyright Clearance Procedures 

H–1. Copyright control officer 

The garrison entertainment program manager will serve as the copyright control officer for the installation and will 

initiate all copyright clearance requests, regardless of whether the producing or sponsoring program is the entertainment 

program, another MWR program, or a non-MWR program, such as a school or chapel. If no entertainment program 


manager is assigned, the garrison commander or Director, FMWR will appoint a copyright control officer to carry out 

copyright clearance functions. 

H–2. Forms 

Clearances will be requested on DA Form 3238. Requirements for additional performances are cleared rapidly, thereby 

avoiding the time and more complex efforts involved in cancellation procedures. Requests for additional performances 

are coordinated by telephone or in writing with FMWRC as soon as the additional requirements become known. 

H–3. Clearance procedures 

a. As an attachment to DA Form 3238, section 8 clearly identifies production materials on the clearance request. 

Information specifying the length of time required, the date requested, and whether the materials are rented or 

purchased will be included. The local duplication, alteration, adaptation, revision, or rearrangement of copyrighted 

materials is not authorized except at the specific direction of the leasing agent. 

b. Requests for copyright clearances and related correspondence will be sent directly to FMWRC. 

c. Direct communication between installations and leasing agents, trustees, or copyright owners is not authorized, 

except at the specific direction of FMWRC. 

d. If producing organizations, members of performing or producing groups, or any other installation program are 

contacted directly by civilian leasing agencies, except for the delivery of production materials, the entertainment 

program manager will forward the correspondence, with a proposed reply where appropriate, to FMWRC. 

e. All correspondence relating to the availability of copyrighted works will be forwarded to FMWRC. 

f. Requests for perusal copies may be made directly with the leasing agencies, but all costs associated with the 

request will be the responsibility of the requesting program. Failure to pay any associated costs may result in denial of 

copyright clearance and royalty requests. FMWRC will pay for and coordinate any perusal request that is submitted 

and coordinated through FMWRC. 

g. Clearance requests (DA Form 3238 and attachments) will be transmitted by facsimile or electronic mail. Copies 

of clearance requests will be mailed to FMWRC at the address in paragraph H–8. 

H–4. Production materials procedures 

a. Upon receipt of production materials, the recipient will conduct a complete inventory, checking against the 

packing slip and noting any discrepancies. In the event of a discrepancy, copies of the inventory and enclosed invoices 

for materials or scripts, identifying the scripts by title, will be forwarded immediately to FMWRC. 

b. Immediately upon completion of use of all production materials, all copyrights control officers will return 

materials directly to the leasing agency. The sender will retain mailing or shipping receipts, indicating items returned. 

The installation will be liable for any additional costs if materials are returned late, damaged, marked, or lost. 

Installations will send to FMWRC a check payable to the leasing agency for invoice costs of the damaged, late, or lost 

materials. Disputes are referred to FMWRC for resolution with the leasing agency. Failure to pay damage/late/lost fees 

may result in suspension of all other copyright clearances affecting the installation. 

H–5. Postponement and cancellation procedures 

a. If a scheduled performance is postponed, written notification will be provided to FMWRC before the originally 

scheduled performance date. If postponement exceeds 3 months, the clearance will be canceled and a new clearance 

request will be submitted for any subsequent production. 

b. Installations will provide FMWRC with written notification of cancellations as soon as possible. If some, but not 

all, of the cleared performances are canceled, cancellation notices will be provided before the final performance report 

is submitted. When an entire production is canceled, a cancellation notice will be provided immediately (especially in 

the case of musicals) to avoid unnecessary rental fees. Any production materials will be returned immediately to the 

leasing agency. 

H–6. Payment procedures 

a. Within 5 duty days of the final performance of a copyrighted work, the installation will complete the final part of 

DA Form 3238 verifying completed performances and will forward the form to FMWRC. This constitutes the 

confirmation of receipt of services/goods and is the basis for authorizing the royalty and fees payment. 

b. FMWRC will pay royalties and related fees for works produced by activities of the Army Entertainment Program 

worldwide. Royalties and related fees for works produced by schools, installation clubs, chapels, and other programs 

will be paid by the installation or program on the basis of an invoice from FMWRC. The check will be made payable 

to the leasing agency but will be sent to FMWRC for verification and forwarding. 

c. If a leasing agency sends an invoice for royalties and rental fees directly to the installation, it will be forwarded 

immediately to FMWRC. 


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H–7. Original works 

a. The production of original works of local playwrights, authors, composers, and lyricists by entertainment 

programs is encouraged. In such instances, the installation will obtain a notarized statement from each contributor to 

the original work, certifying that he or she holds exclusive rights to the material and authorizes its use under the terms 

indicated on the copyright clearance request. The full name, address, and telephone number of each contributor will be 

included in the statement. All statements are attached to DA Form 3238 and forwarded to FMWRC. 

b. Members of the entertainment program professional staff, Soldiers, and civilian employees of the Army serving as 

performers, and directors or technicians may offer a work of their creation to be produced by the Army. Offers may be 

made at any location, under the guidelines of original works, but no payment will be made in any form from the 

project. 

H–8. Family and Morale, Welfare and Recreation address 

Documentation will be sent to Commander, Family and Morale, Welfare and Recreation Command, ATTN: Army 

Entertainment Copyrights and Clearance Office, P.O. Box 439, Fort Belvoir, VA 22060. 

Appendix I 

Tour Directors, Guides, and Escorts 

I–1. General 

Persons conducting ITR operations will function as representatives of the U.S. Army and not as individuals. Acceptance 

of gratuities by individuals from those who have or seek business with the NAFI/entity is prohibited. Employees 

will avoid involvement in activities that are viewed as a conflict of interest (see DOD 5500.7–R). 

I–2. Commissions, fees, and other inducements 

a. Commissions or fees. Commissions or fees are paid by travel suppliers, hotels, resorts and other enterprises to 

travel arrangers who make reservations for use of their facilities or services. Such payments must be made directly to 

the NAFI/entity. Direct payment to or acceptance by an individual employee of payments to which the NAFI/entity 

would be entitled is illegal. 

b. Complimentary familiarization tours. MWR staff personnel are prohibited from receiving, in their individual 

capacity, any free transportation, accommodations, or other services that relate directly to a familiarization tour. 

Employee acceptance of invitations extended by individuals or businesses that have or seek business with DOD is not 

authorized. To become familiar with a particular tour, or attraction, employees must be in a TDY status. 

(1) Free or reduced price transportation, accommodations, or meals may be accepted by tour directors, guides, or 

escorts (either APF or NAF employees) only under the following conditions: 

(a) The free or reduced price amenities may be accepted only for products that are available, or are proposed to be 

made available, through the ITR office. 

(b) The free or reduced price amenities offered are routinely available to travel agents in the private sector. 

(c) Any free amenities or gifts in excess of nominal value must be reported to the NAFI/entity and shall be subject 

to disposition through the chain of command. 

(d) Authority to travel is in accordance with formal travel orders, which must clearly stipulate that reimbursement is 

authorized only for actual expenses incurred, subject to limitations stated in the JTR. 

(e) Expenses associated with the travel must be paid for using one or more of the following methods: a Government 

charge card issued to the individual traveler, transportation charged against a Centrally Billed Account, the GSA Smart 

Pay Purchase Card, or a request for services issued on DA Form 4067. 

(f) When the ITR office, or NAFI/entity, receives a complimentary transportation ticket or lodging accommodation 

based on tickets or room nights sold, the ITR manager is responsible to document acceptance of the gratuitous 

exchange and to record disposition of the asset on the Daily Activity Report. 

(2) Employees may not accept free transportation, accommodations, or other items of value under conditions other 

than those specified above. 

I–3. Gratuitous or volunteer services 

a. Persons providing gratuitous or volunteer services (such as tour director, guide, or escort services) will be 

formally appointed by the garrison Leisure Travel Services Manager or ITR coordinator. Individuals will be briefed 

and receive training and information appropriate to the program. Minimum training will include orientation on related 

MWR policies and procedures, first aid, and successful completion of courses that certify proficiency in cardiopulmonary 

resuscitation and the Heimlich maneuver. 

b. Off-duty military or civilian employees may provide gratuitous or volunteer services if leisure tour and travel 

programs are not part of their normal duties. 


c. A written agreement must be executed for each trip between the person providing gratuitous or volunteer services 

and the MWR program. Benefits provided by the Army as a consequence of the program (such as transportation, food, 

lodging, and admissions) will be specified in the agreement. Responsibilities assigned the individual, such as spot 

payment to vendors in accordance with local customs, will be stated in the agreement also. 

d. Additional policy on volunteer services and gratuitous personnel services is found in chapters 5 and 13, this 

regulation, and AR 608–1. 

Appendix J 

Army Flying Activities 

J–1. General 

Army flying activities (AFA) may be established as recreational programs that enhance morale by providing recreational 

flying opportunities on off-duty time, teaching or improving aeronautical skills, and developing an awareness and 

appreciation of aviation requirements, safety, and techniques. 

a. Commanders may authorize use of hangar space, aircraft tie-down facilities, and maintenance facilities provided 

such use does not interfere with official military flight operations. 

b. AFA may be established at any installation with an assigned active Army aviation element, subject to approval by 

the responsible IMCOM Region and FMWRC. Requests to establish a flying activity will be forwarded through 

command channels to FMWRC to the Commander, Family and Morale, Welfare and Recreation Command, ATTN: 

IMWR–CR, 4700 King Street, Alexandria, VA 22302–2218, and include the following information: 

(1) Size of the initial patron base. 

(2) Growth potential. 

(3) Planned aircraft and equipment acquisitions, to include methods of acquisition. 

(4) Installation facilities available for use. 

(5) Source of funds and proposed expenditures. 

c. AFA may be established regionally to support two or more installations in the same general area to maximize 

participation, minimize cost, and provide for operating efficiencies. Requests to establish regional flying activities will 

be forwarded by the host installation, through command channels, to FMWRC with the above information. 

d. Aircraft assets authorized are generally limited to light, single-engine aircraft. IMCOM Region approval is 

required before acquiring or operating multiengine aircraft and is based on the ability of the local activity to support 

and maintain larger, more complex aircraft and the availability of insurance. In any event, the maximum gross weight 

of flying activity aircraft will not exceed 12,500 pounds. 

e. The acquisition or operation of turbine-powered aircraft is not authorized. 

f. Ground safety is included within the scope of the safety and accident prevention program. Army regulations and 

other relevant instructions will also apply to AFA. 

J–2. Patrons 

Aircraft will be flown by only qualified eligible MWR patrons and flight instructors employed by the AFA. An 

exception is that prospective buyers may fly aircraft on local flights when accompanied by a flight instructor or AFA 

member, as determined by the AFA manager. 

J–3. Passengers 

Aircraft passengers will be limited to the following individuals: 

a. Active, introductory, and nonpilot patrons. 

b. Family members of patrons, defined as spouse, children, mother, father, brother, or sister of an AFA patron, and 

the mother or father of a patron’s spouse. 

c. Persons whose official duties require them to be passengers, such as FAA inspectors, flight instructors, and 

maintenance personnel hired by the local AFA. 

d. Bona fide guests of eligible patrons subject to policy established by the commander. 

J–4. Aircraft use 

a. Use of aircraft will be limited to bona fide recreational flights or official TDY flights. Aircraft will not be used 

for any of the following purposes: 

(1) Transporting passengers or cargo for a fee. 

(2) Skydiving or sport parachuting activities. 

(3) Towing gliders, without prior IMCOM Region approval. 


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. Aircraft and other resources will not be loaned, leased, or rented to individuals, groups, or organizations that are 

not eligible patrons. 

J–5. Federal Aviation Administration certification 

All aircraft, pilots, instructors, and mechanics must hold current FAA certification, as specified in the FAR, parts 61 

and 91. 

J–6. Interactivity flying 

Installation AFA may allow patrons of other flying activities to fly aircraft provided each individual— 

a. Presents acceptable proof of patronage in another military installation flying activity. 

b. Holds current FAA certification in the type of aircraft to be flown. 

c. Complies with all rules and regulations of the host activity. 

d. Satisfactorily completes a flight check conducted by a local flight instructor in the type of aircraft to be flown. 

J–7. Aircraft equipment and supplies 

Aircraft and related supplies and equipment will be acquired either through purchase (AR 215–4), or by donation as 

described in chapter 13. Accountability and classification of property will comply with DOD 7000.14–R, volume 13. 

Disposition will be in accordance with chapter 17. 

J–8. Retail sales 

The resale of incidental merchandise such as maps, plotters, flight computers, logbooks, and training materials is 

authorized. AFA may also operate snack bars. Retail sale of aircraft parts to individuals is not authorized. 

J–9. Hold harmless agreement 

Use of hold harmless agreements will be in accordance with chapter 13. 

J–10. Management 

Qualified individuals employed as managers on a full-time, part-time, or gratuitous or volunteer basis will manage 

installation flight activities carefully and professionally. Managers employed on a full-time or part-time basis will be 

paid from NAF sources. AR 215–3 will govern employment of off-duty military personnel. Gratuitous services 

provided by patrons and volunteers will be subject to the provisions of chapters 5 and 13 of this regulation, and AR 

608–1. 

a. The flight activity manager will generally be a full-time employee who supervises day-to-day operations and has 

overall responsibility for the following functions: 

(1) Schedules flights on a first-come, first-served basis. 

(2) Maintains flight records, bulletin boards, charts, status boards, and pilot information files (PIFs). 

(3) Maintains pilot qualification and currency record for each user in accordance with parts 61 and 91 of the FAR. 

(4) Supervises AFA employees. 

(5) Promptly reports mishaps, late aircraft, or other safety information to the AFA and installation safety officers. 

(6) Ensures that procedures are established requiring the installation aviation element to notify the AFA of overdue 

aircraft and other emergencies. 

(7) Ensures that no patron is permitted to pilot any aircraft under AFA control without current FAA flight and 

medical certificates. 

(8) Establishes procedures to ensure compliance with this regulation, FAR, and other pertinent directives. 

b. The operations officer may be a full-time or part-time employee or gratuitous services patron or volunteer and 

generally will be the most experienced pilot available. The operations officer will perform operational functions as 

assigned by the AFA manager, to include these functions: 

(1) Providing required flight data to patrons. 

(2) Coordinating all local flight areas, ingress and egress routes, and traffic patterns with installation airfield 

operations personnel and ensuring publication in AFA directives. 

(3) Maintaining a PIF for each patron, organized as follows: 

(a) A permanent section, to be reviewed annually, that includes this appendix with IMCOM Region and installation 

supplements; AFA regulations, operating instructions, and local installation airfield procedures; FAR, parts 61 and 91; 

and other pertinent safety data. 

(b) A temporary section, to be reviewed every 3 months and prior to each flight as pilot-in-command, that includes 

new material or information of a permanent nature. 

(c) A pertinent data section that includes operations and maintenance manuals, DOD and FAR restrictions and 

limitations, and performance specifications for assigned aircraft. 

(4) Coordinating operational matters with installation aviation operations and FAA officials, as appropriate. 


c. The safety officer may be a full-time or part-time employee or gratuitous services patron or volunteer but must be 

a military or FAA-licensed pilot. The safety officer will manage the flight safety and accident prevention programs and 

perform safety functions assigned by the AFA manager, to include— 

(1) Coordinating aviation safety matters with the installation safety officer, installation aviation safety officer, Army 

Combat Readiness Center (ACRC), and FAA officials, as appropriate. 

(2) Obtaining pertinent ACRC aviation safety publications for use by the AFA. 

(3) Ensuring that deficiencies detected during safety inspections are recorded and corrected. 

(4) Maintaining a safety bulletin board. 

(5) Conducting a continuing accident prevention program in coordination with the installation airfield safety officer 

and the servicing FAA General Aviation District Office. 

(6) Conducting safety meetings at least quarterly and publishing resulting minutes within five days. 

d. The maintenance officer may be a full-time or part-time employee or gratuitous services patron or volunteer. The 

maintenance officer will supervise the AFA’s maintenance program and ensures the airworthiness of aircraft. The 

maintenance officer will have experience in military or civil aviation maintenance. Possession of a FAA air-frame and 

power plant mechanic’s certificate is desirable and mandatory where assigned functions require an FAA-certified 

mechanic or inspector. Functions will be assigned by the AFA manager and generally include the following duties: 

(1) Developing and coordinating maintenance policy, subject to approval by the AFA manager. The maintenance 

policy will include the prohibition that licensed and qualified AFA personnel will not conduct repair and maintenance 

on non-AFA aircraft while aircraft are located on the AFA facility. 

(2) Grounding all aircraft that are deemed not airworthy, regardless of whether they are owned, leased, or transient. 

( 3 ) C o o r d i n a t i n g a i r c r a f t m a i n t e n a n c e m a t t e r s w i t h i n s t a l l a t i o n a v i a t i o n m a i n t e n a n c e a n d F A A o f f i c i a l s , a s 

appropriate. 

(4) Developing a maintenance program to document and correct discrepancies as soon as possible. 

(5) Inspecting AFA maintenance facilities. 

(6) Assuming responsibility for the security of aircraft undergoing maintenance, providing positive means of 

securing unattended aircraft, and developing procedures to keep aircraft from being flown with uncorrected safety 

discrepancies. 

(7) Ensuring that FAA certification is obtained where required. 

(8) Establishing a quality assurance program for fuel used in AFA aircraft. Fuels supplied by commercial vendors 

must conform to standards established by the National Fire Protection Association and the American Petroleum 

Institute. 

e. The chief flight instructor will supervise and monitor the activities of all flight instructors and will meet the 

requirements of FAR, part 141, wherever possible. A chief flight instructor may be a full-time or part-time employee or 

gratuitous services patron or volunteer, or services may be obtained by NAF nonpersonal services contract. 

f. Flight instructors will conduct flying lessons and related training activities and conduct flight checks as required 

by FAA or installation regulations. Flight instructors are generally employed part-time or are gratuitous service patrons 

or volunteers. Services may also be obtained by NAF nonpersonal services contract. AFA managers who are not fulltime 

employees may be employed part-time as flight instructors under terms approved by the local chief, community 

recreation division. All flight instructors must be FAA certified. 

J–11. Aircraft and equipment acquisition 

Aircraft will be purchased, leased, or rented based on the needs of the AFA program and patron base, the ability to 

finance the acquisition, and the ability of patrons and AFA staff to operate and maintain the aircraft safely. Each 

acquisition will require approval of the commander. 

a. Need factors. 

(1) Patron-to-aircraft ratios. Ratios will vary depending on whether operations are primarily pilot oriented or 

training oriented. A patron base that consists primarily of licensed pilots generally lowers the pilot-to-aircraft ratio. An 

active flight school that trains student pilots generally raises the ratio. 

(2) Maintenance cost for each flying hour. The estimated costs of maintenance, inspections, repairs, overhauls, and 

modifications will be weighed against projected flying-hour revenues. 

(3) Fixed costs for new and used aircraft. The effect of higher depreciation and insurance costs and lower 

maintenance costs for new aircraft will be considered against lower depreciation and insurance costs and higher 

maintenance costs for used aircraft. 

(4) Aircraft use. If flight training is a significant activity, standard aircraft will increase efficiency in scheduling and 

supervision, and enhance safety. If flight training is not a consideration, the ability of patrons to operate higher 

performance aircraft safely and economically must be a prime consideration. 

(5) Maintenance capability. The AFA must have access to maintenance facilities capable of maintaining the aircraft 

being considered. 


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(6) Financing. The AFA must have the financial resources to buy the aircraft and any associated equipment and 

must be able to afford long- and short-term maintenance costs. 

b. Procurement procedures. 

(1) New aircraft procedures. 

(a) Coordinate the planned acquisitions, in advance, with NAF contracting, FMWRC. 

(b) Obtain command approval. 

(c) Submit DA Form 4067 with fund citation to the Commander, Family and Morale, Welfare and Recreation 

Command, ATTN: IMWR–NC, 4700 King Street, Alexandria, VA 22302–4415. 

(2) Used aircraft. For used aircraft, all planned acquisitions will be coordinated through the installation acquisition 

office, in accordance with local procedures. 

(3) Equipment procedures. Equipment procedures will be stated as follows: 

(a) Requirements will be coordinated through the installation acquisition office. Acquisitions that cannot be completed 

by the installation acquisition office may be referred to the FMWRC NAF Contracting. 

(b) Equipment and other items purchased for resale in AFA facilities will be identified as such on procurement or 

purchase requests. Avionics equipment and other controlled items generally will not be acquired through procurement 

channels for resale purposes. 

(4) Leasing or renting aircraft. For leasing or renting, requirements will be coordinated through the installation 

acquisition office in accordance with installation policy and procedures. 

(5) Excess Army aircraft. Installation AFA may not obtain excess Army aircraft on loan from military sources. 

However, AFA are authorized to acquire excess Army military aircraft by obtaining prior approval from FMWRC. 

c. Advance approval. The purchase, lease, or rental of aircraft by AFA from patrons, military personnel, or civilian 

Government employees will be reviewed in advance by the installation SJA, and approved by the commander or 

designee, in order to preclude the potential for or appearance of any conflict of interest. 

J–12. Petroleum products 

Commanders may authorize the sale of petroleum products by AFA to patrons for reasons of safety. Considerations 

will include requirements for additional landings and takeoffs during periods of heavy air traffic; condensation of 

moisture in fuel tanks not topped off after landing; and commercial petroleum products not available within a 

reasonable distance. If the commander authorizes the sale of aircraft petroleum products by the AFA, the following 

guidance will apply: 

a. Aircraft petroleum products intended for resale will be purchased from commercial sources. 

b. Petroleum products will be sold only to patrons of AFA. 

c. Prices charged for the petroleum products will be comparable to those charged in nearby civilian communities. A 

quarterly survey of at least three local area fixed base operators providing aviation fuel services will be used to 

determine average prices. AFA fuel and oil resale prices will be determined by the obtained average price. 

d. Price adjustments will be made within three days of the quarterly survey. 

e. Survey documentation must be retained on file for a period of 18 months. 

f. Storage of petroleum products will be in accordance with Military Standard 161G (MIL–STD–161G) and Military 

Handbook 200F (MIL–HDBK–3004). Fuel handling personnel will be properly trained. 

J–13. Flight publications 

a. The U.S. Army Aeronautical Services Agency will provide AFA with free issues of publications listed below. 

Between one and three copies will be provided, depending on the size of the AFA and number of aircraft: 

(1) En route Low-Altitude Charts (limited to the local flying area). 

(2) Terminal Low-Altitude Instrument Approach Procedures (limited to the local flying area). 

(3) En route instrument flight rules (IFR) and visual flight rules (VFR) supplements. 

b. Publications may be obtained from U.S. Army Aeronautical Services Agency, Bldg 1466, Suite N319, 9225 

Gunston Road, Fort Belvoir, VA 22060–5582. 

c. Flight publications are listed in the Public Sale Catalog of Aeronautical Charts and Publications, available from 

the National Imagery and Mapping Agency, 4600 Sangamore Road, Bethesda, MD 20816–5003. 

J–14. Flight operations 

a. Local flying area. Each installation will establish a local flying area for AFA aircraft. Designation of local flying 

areas will be coordinated with the installation Army aviation element to ensure compatibility with Army aviation 

requirements and will be based on the considerations listed below. 

(1) Boundaries will be marked by natural or artificial terrain features that are easily identified from the air. 

(2) Local flying areas will be prominently displayed in classrooms and similar facilities. 

(3) Local flying areas will not— 

(a) Exceed a 50-nautical mile radius for licensed pilots and a 25-nautical mile radius for student pilots. 


(b) Extend more than 5 nautical miles from the coast of the United States. 

(c) Approach closer than 5 nautical miles to any international boundary. 

b. Local flying area rules. Appropriate rules governing use of local flying areas will be established and published. 

All rules will be coordinated with the local Army aviation element or fixed base operator to ensure compatibility and 

are cleared with the servicing FAA General Aviation District Office. 

(1) Patrons will not pilot AFA aircraft when fatigued, under the influence of alcohol or drugs, or otherwise 

incapacitated. 

(2) Aerobatic maneuvers will be not flown below an altitude of 2,500 feet above ground level (AGL). This is a 

minimum and depends on the type of aircraft. Patrons may perform only those maneuvers that are specifically 

permitted in the aircraft manufacturer’s handbook, FAR, part 91.71, and local flying area rules. A student pilot will not 

perform deliberate aerobatic maneuvers unless a qualified instructor pilot has access to the controls. 

(3) Stalls, steep turns with banks of over 45 degrees, slow flight, and unusual altitudes will not be performed below 

1,500 feet AGL, except for maneuvers that are performed for pilot certification. 

(4) Night flights will be additionally restricted based on the following: 

(a) Patrons will not pilot aircraft on night cross-country flights outside of the designated local flying area unless 

qualified in accordance with FAR, part 61.109, and cleared by an AFA flight instructor. 

(b) Performance of aerobatics or unusual altitudes is prohibited. 

(c) Night instrument training will be conducted by a FAA-certified instructor. 

(d) Night instrument practice within the local flying area will be authorized only when accompanied by a second 

pilot who has proper current certifications and has access to the flight controls. 

(5) Touch-and-go solo landings by student pilots will not be permitted unless authorized by a FAA-certified activity 

flight instructor. 

(6) Stop-and-go landings will be permitted only when the remaining runway provides the required acceleration stop 

distance. 

(7) All flight plans must meet or exceed minimum fuel requirements prescribed by FAR, part 91. 

(8) Maximum flight time for a single pilot will not exceed 8 daytime hours, 6 nighttime hours, or 7 hours for a 

combination of both. Minimum crew rest between flight days is 10 hours. 

c. Preflight and postflight checks. 

(1) Each pilot will perform a preflight check of the aircraft before each flight. This check will ensure that the 

aircraft is airworthy and that all accessories are complete and in good working order. If a defect is found that could 

interfere with the safe operation of the aircraft, the flight will not be made. 

(2) Postflight checks will be performed after each flight. Any defect detected during flight or during the post-flight 

check will be reported for correction. 

(3) All flight checks will be performed using standard checklists, not from memory. Failure of the pilot to make a 

preflight or postflight check will be grounds for disciplinary action. The fact that a postflight check was made by a 

pilot who used the aircraft earlier in the same day will not relieve any other pilot of the responsibility for conducting 

required flight checks. 

d. Required equipment. Each pilot will be responsible for obtaining the proper charts, equipment, and information 

required for each flight. In addition to equipment required by FAR, the following items will be kept in the aircraft at all 

times, unless otherwise specified: 

( 1 ) C h e c k l i s t s , i n c l u d i n g p r e f l i g h t , p r e s t a r t , w a r m u p , p r e t a k e o f f , c r u i s i n g f l i g h t , p r e l a n d i n g , s h u t d o w n , a n d 

postflight. 

(2) Emergency procedures, to include maneuvering speeds, single-engine procedures for multi-engine aircraft, 

normal fuel consumption, best climb and glide speeds, stalling speed, and lost communications procedures. If not 

adequately covered in the aircraft manual, procedures will be typed on cards with plastic coverings and maintained in a 

conspicuous place that is readily accessible to the pilot. 

(3) A placard showing compass deviation correction that is visible to the pilot. 

(4) Detailed instructions for remaining overnight and flying in severe weather. 

(5) A crosswind component chart that applies to the aircraft and charts showing the local flying area and its 

topographic features. 

(6) For visual flight rules (VFR) flights, charts showing the topographic features of the area of flight and publications 

containing the proper navigational aids. 

(7) For instrument flight rules (IFR) flights, charts and flight information publications necessary for instrument 

departures, en route flights, and instrument approaches. 

(8) For all night flights, an emergency light that does not require the use of the aircraft battery. 

(9) An emergency locator transmitter for all flights outside of the airport traffic area. 

e. Flight planning, review, and clearance. 

(1) A flight plan will be filed and the pilot’s currency in the aircraft to be flown will be validated before any flight. 


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(2) Preflight planning for cross-country flights will verify, as a minimum the following: 

(a) Adequacy of intended destination airports and alternates including runway length. Minimum acceptable runway 

length is 2,000 feet or the aircraft takeoff or landing roll requirement, whichever is greater, based on actual or forecast 

conditions. 

(b) Accuracy of weight and balance computations and limitations. 

(c) Availability of navigation, communications, and en route flight service station facilities. 

(d) Applicability of any passenger restrictions. 

(e) Adequacy and completeness of charts. 

(f) Adequacy of personal equipment. 

(g) Adequacy and completeness of flight logs, except for winds, times, and ground speeds. Minimum en route 

altitude must be no lower than 1,500 feet AGL. 

(h) At least 30 minutes of fuel remaining at the end of the flight under VFR conditions, and 45 minutes under IFR 

conditions. 

(i) That flights departing the continental limits of the United States are planned, cleared, and conducted under 

provisions of the International Flight Information Manual or the DOD Foreign Clearance Guide (DOD 4500.54–G), as 

appropriate, and applicable AFA operating instructions. 

(3) The pilot will determine existing and forecast weather conditions prior to the flight and ensure that conditions 

meet minimum standards for the type of flight planned. VFR minimums are— 

(a) Day: 1,500 feet AGL and 3 miles. 

(b) Night: 2,500 feet AGL and 5 miles. 

(4) Private pilots with 200 hours or more of flying time and commercial pilots may request standard FAA VFR 

minimums. 

(5) The AFA will establish maximum headwind and crosswind standards for each level of pilot certification and 

aircraft type. 

(6) Planning for IFR flights must include the following elements: 

( a ) P i l o t s m u s t h o l d a c u r r e n t F A A i n s t r u m e n t c e r t i f i c a t e a n d b e c u r r e n t w i t h F A R a n d l o c a l f l y i n g a r e a 

requirements. 

(b) Pilots will ensure that the aircraft is equipped with required instrumentation, and that instruments, communications, 

and navigation equipment are checked, calibrated, and fully operable according to FAA regulations. Appropriate 

entries are made in aircraft logs. 

(c) Pilots will have in their possession current departure, terminal, and en route flight information publications. 

(7) The AFA will appoint clearing authorities to approve flight plans. Clearing authorities are experienced pilots 

who have demonstrated mature judgment and safety consciousness. There is no limit to the number of clearing 

authorities who may be appointed. Clearing authorities will have the following responsibilities: 

(a) Ensure that pilots are current in all aspects. 

(b) Ensure that flight plans are adequate and complete. 

(c) Ensure that weather conditions do not present potential difficulties beyond the skill and experience levels of the 

pilot. 

(d) Sign approved flight plans, indicating the date-time group of approval. If no clearing authorities are at the AFA, 

telephone clearances may be granted after the pilot briefs the clearing authority on the flight plan, weather, and other 

pertinent data. Records of telephone clearances will be noted on each flight plan. 

J–15. Flight training 

The continuing operation of or access to a high-quality flight training program must constitute a significant part of 

installation AFA operations and is the primary means of promoting interest in aviation, teaching of basic piloting skills 

to new patrons, and improving the skills of experienced pilots. Certified FAA flight training programs will be used to 

the maximum practical extent. 

a. Each installation AFA will be required to operate or provide access to a primary ground school and a primary 

flight training program, based on the curriculum outlined in the FAR, part 141. 

b. The chief flight instructor will have primary responsibility for planning, conducting, and managing flight training 

programs, and supervising the performance of flight instructors, and additional responsibility for the following: 

(1) Developing operating instructions for flight instructors that include— 

(a) Flight instructor’s duties and responsibilities. 

(b) Standardized flight check procedures. 

(c) Course outlines for each program. 

(d) Endorsement requirements for student certificates and logbooks specified by the FAR, part 61. 

(2) Establishing standard dual and solo training cross-country routes. 

(3) Structuring training programs to satisfy the following requirements: 


(a) Navigation training with increasingly graduated degrees of difficulty. 

(b) Use of both controlled and uncontrolled airports. 

(c) Civil weather briefing, flight plan filing, and closing procedures. 

(d) Visual and navigational aids orientation procedures. 

(e) Interpretation and use of aircraft owner’s manual operating instructions. 

(f) Calculation and use of density altitude. 

(4) Developing detailed operating instructions for deteriorating weather and lost procedures, and ensuring that copies 

are aboard each aircraft during flight. 

c. Flights by student pilots are subject to the following restrictions: 

(1) Solo cross-country flights will be limited to daytime hours. 

(2) Solo cross-country flights may be flown into destination airports that have not previously been used only when 

the student pilots have the following requirements: 

(a) Met all dual cross-country requirements. 

(b) Completed 3 hours of solo cross-country flying into airfields where they have previously executed satisfactory 

traffic patterns in dual flights with instructors. 

(3) Each cross-country route is a closed course requiring no more than 1 flying day to complete. 

d. Any pilot, including rated military pilots, without solo cross-country experience in the past 2 years must complete 

the following requirements before being cleared to fly as pilot-in-command of a cross-country flight: 

(1) Satisfactory completion of dual navigation instruction with a certified flight instructor. 

(2) Satisfactory completion of an oral test on flight planning. 

e. Training in simulated forced landings is authorized, provided the aircraft is not allowed to descend below 250 feet 

AGL unless the landing is on an authorized runway. Pilots will practice forced landings only when accompanied by a 

flight instructor. 

f. Training and checkouts in retractable-gear aircraft will require demonstrating proficiency in the following performance 

factors for the type of aircraft to be flown: 

(1) The proper use of checklists. 

(2) Retractable gear operation. 

(3) Propeller operation. 

(4) Emergency procedures. 

(5) Various types of approaches and flap settings. 

g. The conduct of training flights involving student pilots will be subject to the following restrictions (these 

restrictions will not apply to FAA inspectors and others whose official duties require observation of training or 

qualification flights): 

(1) Only the instructor pilot and pilots receiving flight checks will be permitted aboard a qualification check flight. 

(2) Only the instructor pilot and the pilots receiving instruction will be permitted aboard a training flight. 

J–16. Flight standardization 

Each installation AFA will conduct an ongoing flight standardization program to verify or revalidate the flying skills of 

licensed pilots periodically, ensure that flight checks and procedures are carried out uniformly, and standardize 

operating procedures for each type of aircraft. Standardization requirements are as follow: 

a. Pilot standardization checks. A certified flight instructor will administer a standardization evaluation flight check 

to each pilot— 

(1) Prior to initial VFR solo flight in each aircraft type. 

(2) Prior to initial IFR flight as pilot-in-command. 

(3) Prior to initial VFR night flight. 

(4) Every 12 months. 

b. Flight checks. Flight instructors will administer initial checkouts to AFA patrons as follows: 

(1) Written exams on the aircraft, FAR, and local procedures. A grade of 85 percent is required. Completed exams 

will be retained in the patron’s PIF. 

(2) Demonstration of flying proficiency appropriate to the certificate held. 

(3) Performance of three takeoffs and landings to the satisfaction of the flight instructor. 

c. Instructor checks. The chief flight instructor will administer instructor checks as specified in the FAR, part 

141.79, to include the following: 

(1) A written examination on aircraft, instruction techniques, FAR, and local procedures. A grade of 85 percent 

corrected to 100 percent is required. Completed exams are retained in each instructor’s PIF. 

(2) Flight checks, as considered appropriate by the chief flight instructor. 

d. Chief instructor checks. The chief instructor will be checked as required by the FAA. Results are retained in the 

chief instructor’s PIF. 


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e. Instrument flight checks. These checks will be administered every 12 months to patrons who hold IFR flight 

authorization. A patron disqualified by any instrument flight check may not fly IFR flights until additional training is 

received and a recheck is successfully completed. 

(1) Rechecks must be administered by a certified instrument flight instructor. 

(2) The patron is required to demonstrate standards of flying proficiency and knowledge of procedures appropriate 

to the instrument rating. 

(3) Written exams on instrument procedures, FAR, and local procedures will be graded, corrected, and filed in the 

patron’s PIF. A grade of 85 percent corrected to 100 percent is required. 

f. Twelve-month checks. This check requires at least 1 flight hour and three landings in the most complex aircraft in 

which the patron is current. Aircraft complexity will rank from fixed gear, fixed propeller, and less than 200 

horsepower, through fixed gear, constant-speed propeller, cowl flaps, and more than 200 horsepower, to retractable 

gear, constant-speed propeller, and more than 200 horsepower. Requirements are as follows: 

(1) The pilot must demonstrate standards of flying proficiency appropriate to the certificate held. 

(2) Written examinations on the aircraft, FAR, and local procedures are graded, corrected, and filed in each patron’s 

PIF. A grade of 85 percent corrected to 100 percent is required. 

g. Night VFR checkouts. Pilots having a current private license and day VFR checkout must fulfill the following 

requirements to the satisfaction of the flight instructor prior to night flight: 

(1) At least three takeoffs and landings to a full stop, with emphasis on correct patterns. 

(2) A tour of the local flying area that identifies local area landmarks and all obstacles to air navigation. 

(3) One very high frequency/direction finding or surveillance approach, if facilities are available. 

(4) At least three landings at selected night-capable airports in the local area. 

(5) Appropriate maneuvers for night VFR flights. 

(6) Use of aircraft landing lights during the first night approach. 

h. Alternate checks. The successful completion of a FAA flight check conducted by a FAA inspector may, at the 

discretion of the chief flight instructor, be accepted in place of one or more of the required flight checks. However, 

required written examinations will be administered and graded by an AFA flight instructor, and all other currency 

qualifications specified in FAR and this appendix must be satisfied. 

(1) Patrons desiring to fly as pilot-in-command must satisfy FAA requirements and the requirements of this 

appendix. 

(2) Medical requirements for glider pilots are the same as for pilots of powered aircraft. 

(3) The AFA manager will maintain the currency status of all pilots to include aircraft type, health status, and 

expiration dates. A pilot who loses currency in a specific type of aircraft will be required to repeat the initial checkout 

for that type of aircraft. 

(4) Day currency requirements are as follows: 

(a) Student pilots must demonstrate proficiency at least once every 30 days by performing a dual instructional flight 

and landing to the satisfaction of the flight instructor. Solo flights will not be attempted until satisfactory completion of 

progress checks and approval of the flight instructor. Students must maintain currency in only one type of aircraft. 

(b) Private pilots with fewer than 200 hours of pilot time must accomplish at least 1 hour of pilot time and three 

landings every 60 calendar days in the most complex aircraft in which qualified. 

(c) Private pilots, commercial pilots, and instructor pilots with more than 200 hours of pilot time must accomplish a 

minimum of 1 hour of flight time and three landings every 90 calendar days in the most complex aircraft in which 

qualified. 

(5) For night currency, at least 1 hour of night flight time, with three takeoffs and three landings to a full stop, must 

be accomplished within the time periods prescribed for day currency. Night flights also must fulfill day currency 

requirements. A pilot who does not meet night currency requirements but who remains current in all other requirements 

will be allowed a 30-day grace period in which to regain currency. Night flights during this period will be flown either 

solo or with a flight instructor. Following the 30-day grace period, night currency will be regained through an initial 

night flight check. 

(6) Instrument currency will be maintained in accordance with the FAR, part 61. 

J–17. Safety and accident prevention 

Each installation AFA must conduct a vigorous safety and accident prevention program to promote and enforce safe 

flying practices, conduct related education and training programs, and generally, ensure that safety considerations are 

integrated into management activities and all maintenance and flight operations. 

a. The AFA safety officer will manage the safety and accident prevention program in accordance with the 

provisions of paragraph J–10c. 

b. The installation aviation safety officer will serve as advisor to the AFA and has the following responsibilities: 

(1) Coordinating activities with the AFA safety officer. 

(2) Conducting and documenting safety inspections of the AFA, as prescribed by the commander. 


(3) Ensuring that safety discrepancies noted during inspections are corrected. 

(4) Making accident prevention information available. This information will include mishap reviews, inspection 

reports, posters, safety magazines, training aids, and operational hazard reports. 

(5) Assisting in reporting AFA accidents and incidents required by this appendix and the National Transportation 

Safety Board (NTSB) (49 CFR 830). 

c. The ACRC will support installation AFA by providing ACRC aviation safety publications applicable to the AFA. 

d. Patrons appointed as safety officers will be required to attend the ACRC aviation safety course. The supporting 

NAFI/entity will pay transportation, travel, and per diem. Attendance will be coordinated with FMWRC. Safety 

officers who have previously completed a formal aviation safety course are exempted by FMWRC. 

e. The safety officer will be alert to potential hazards and recommend changes in operations, procedures, methods of 

instruction or supervision, and life support and airdrome facilities as they pertain to flight safety. 

f. AFA aircraft will be operated in a safe manner at all times, and in compliance with this appendix, local 

installation directives, and applicable FAA directives. Local operating procedures will prohibit unsafe acts that expose 

individuals to possible injury, jeopardize life, or expose an airframe to conditions that may result in damage or 

destruction. Specific prohibitions must include— 

(1) Buzzing or hedgehopping in violation of minimum safe altitudes. 

(2) VFR flights in violation of VFR minimums. 

(3) Flights in the vicinity of clouds in violation of minimum clearance distance. 

(4) Operating aircraft beyond the manufacturer’s stated operational limitations. 

(5) Unauthorized aerobatics. 

g. Undue stresses, such as hard landings or severe turbulence, will be recorded in the aircraft flight log, and the 

aircraft will be properly inspected and declared airworthy before being released for further flight. 

h. The safety officer will conduct quarterly safety meetings and prepare minutes. Safety meetings are professional, 

stimulate interest, and will— 

(1) Use guest speakers, such as control tower operators, flight surgeons, engine specialists, weather experts, FAA 

officials, and others involved in aspects of flight safety. 

(2) Discuss the following subjects, as local needs dictate: 

(a) Army and IMCOM Region policies and directives. 

(b) FAA regulations. 

(c) Local flying area problems. 

(d) Seasonal flying hazards, to include weather. 

(e) Light aircraft maintenance and potential problem areas. 

(f) Light aircraft accident briefs. 

(g) Wake turbulence, flight planning, and fuel management. 

(h) Emergency and lost procedures. 

(i) Spatial disorientation, hypoxia, and survival. 

(j) Recurring problems, such as seasonal weather, crosswinds, and wake turbulence. 

i. Attendance at safety meetings will be mandatory for all AFA patrons. Patrons who fail to attend a meeting will be 

denied flying privileges until they review the minutes of the meeting or are briefed on the meeting by the safety officer 

or a designee. Records of attendance and make-up readings or briefings will be maintained for 1 year. 

J–18. Accident report 

a. Initial reports. 

(1) DA Form 7305 (Telephonic Notification of Aviation Accident/Incident). Worksheet information will be submitted 

telephonically or by data fax or e-mail as required by AR 385–40 immediately after any AFA aircraft flight or flightrelated 

accident resulting in major or substantial damage (in accordance with FAA standards) to the airframe, property, 

or resulting in any of the following: 

(a) Fatality. 

(b) Permanent total disability. 

(c) Permanent partial disability. 

(d) Hospitalization of five or more (in-patient status). 

(e) Loss of time from work beyond the day on which the accident occurred. 

(2) DA Form 7306 (Telephonic Notification of Ground Accident). 

(a) Worksheet information will be submitted telephonically or by data fax or e-mail immediately after any AFA 

ground accident resulting in airframe damage or other events described in paragraphs J–18a(1)(a) through (e). 

(b) Worksheet information will be prepared and submitted by the installation AFA for any accident involving its 

own aircraft and for any accident involving AFA aircraft from other installations operating in the local flying area. 

(c) An accident involving two or more aircraft will be reported as a single event. 


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. Accident investigation reports. 

(1) DA Form 2397 series (Technical Report of Army Aircraft Accident). This report will be submitted as required by 

AR 385–40. This report is a followup of the Telephonic Notification Worksheets and will be prepared in accordance 

with the following instructions: 

(a) The report is prepared as directed by the commander in accordance with instructions in AR 385–40. 

(b) The commander will appoint a rated Army aviator to conduct a technical review of the completed report in order 

for the commander to make appropriate recommendations. 

(c) The completed report will be forwarded through channels to the Commander, Army Combat Readiness Center, 

ATTN: CSSC–I, Fort Rucker, Alabama 36362–5363. 

(d) Completed reports will be submitted within 90 calendar days of accident occurrence. 

(2) DA Form 2397–AB (Abbreviated Aviation Accident Report). AFA flight and flight-related accidents resulting in 

minor airframe or property damage will be reported using this form. Reports will be submitted within 10 calendar days 

of accident occurrence. 

(3) DA Form 285–AB (Abbreviated Ground Accident Report). AFA ground accidents resulting in minor airframe or 

property damage will be reported using this form. Reports will be submitted within 30 calendar days of accident 

occurrence. 

c. Army Flying Activity Accident Report. Accidents involving AFA aircraft will be reported to the NTSB in 

accordance with 49 CFR 830. Copies will be provided to FMWRC (IMWR–CR and IMWR–FM) at the street address 

in paragraph J–1. 

d. Reporting requirement. The garrison MWR operating entity manager will report all accidents in accordance with 

this appendix. 

J–19. Accident investigations 

The commander will appoint a rated Army aviator to investigate any accident that requires submission of a report 

involving AFA aircraft. Accident investigations will be conducted in accordance with the following guidance: 

a. Investigations will be conducted for the sole purpose of determining causes and preventing the recurrence of 

similar accidents. Investigations involving line of duty status, liability, or personal misconduct will be conducted 

separately. 

b. Local investigations must not interfere with or obstruct NTSB or FAA investigations, or investigations conducted 

by the International Civil Aviation Organization in foreign areas. Local investigations will be conducted in cooperation 

with other investigating agencies to the extent feasible. 

c. Release of accident investigation and information will be governed by AR 385–40. 

J–20. Aviation maintenance 

a. Aircraft will be maintained in accordance with applicable FAA directives and the specifications of aircraft 

manufacturers. 

b. Systematic maintenance programs will be established that provide for scheduled inspections, routine maintenance, 

and major overhauls of airframes, engines, and other components. Deviations from established schedules will be 

permitted only in exceptional circumstances. Maintenance schedules for Government aircraft on loan to installation 

AFAs will not be changed without prior approval of the FAA and the Commander, Army Aviation and Missile 

Command, ATTN: AMSAM–MMC–MA, Redstone Arsenal, Huntsville, Alabama 35898–5000. 

c. The maintenance program will be based on aircraft inspections conducted at specified intervals, and prompt 

correction of any discrepancies found. Compliance with inspection periods recommended by the aircraft manufacturer 

and FAA is mandatory. Minimum inspection requirements will be as follows: 

(1) Pilot’s preflight and postflight inspections. 

(2) Minor inspections, as recommended by aircraft and engine manufacturers. 

(3) Major inspections at 100-hour intervals or progressive inspection programs approved by both the aircraft 

manufacturer and the FAA. 

(4) Annual inspections for airworthiness certification. 

(5) Periodic activity inspections. 

d. Maintenance quality control will include, but not be limited to— 

(1) Currency of inspections. 

(2) General condition of aircraft and associated equipment. 

(3) Compliance with aircraft modification equipment manuals. 

(4) Adequacy and currency of maintenance manuals. 

(5) Adequacy and condition of facilities. 

(6) Safety practices. 

(7) Security of aircraft while undergoing maintenance. 

e. The maintenance officer will ensure that the following maintenance records are maintained: 


(1) Aircraft and engine logbooks, as required by the FAA. 

(2) Aircraft flight manuals, equipment lists, and repair and alteration records required by the FAA. 

(3) Running maintenance logs documenting the recent maintenance history of each aircraft. Logs will include a 

record of the discrepancies noted by the pilot, a complete record of corrective actions, and the signature of the person 

releasing the aircraft for flight. Uncleared discrepancies require the aircraft to be grounded until corrective action is 

completed. 

J–21. Safety inspections 

USACRC may conduct annual safety inspections on an unscheduled basis. 

J–22. Annual status report 

Installation AFAs will prepare and submit an annual status report (RCS AG848) summarizing patronage, flight 

operations data, and related information. 

a. Reports will be prepared using DA Form 4909. 

b. Reports will be based on activities occurring during each fiscal year. 

c. Completed reports will be forwarded to FMWRC, at the address in paragraph J–1, and must be received by 31 

October annually. Copies will be provided to the commander and appropriate IMCOM Region director. 

Appendix K 

Awards Program 

K–1. Awards 

MWR and NAFI awards administered by FMWRC are as follows: 

a. The Order of the White Plume. The White Plume Award recognizes military and civilian (both APF and NAF) 

personnel for services performed while in active employment with the DOD. The award is based on specific 

achievements or acts, or on continuous exceptional service, which has impacted significantly and made long-term 

contributions to Army MWR/Family programs and activities. Nominations will be reviewed and approved by the 

MWR Working Group of the MWR BOD. (Procedures for nominations may be obtained from FMWRC.) 

b. The Peter F. Isaacs Morale, Welfare, and Recreation/Family Programs Lifetime Achievement Award. This award 

recognizes and honors individuals who, in the course of their careers, have made significant and lasting contributions to 

Army MWR and/or Family programs. There is no limit to the number of nominees in a specified time frame. FMWRC 

SOP 1–4 provides additional criteria, nominating procedures, and approval procedures for this award. 

c. The James A. Carroll, Jr. Award for Excellence in Club Management and the Excellence in Management Awards 

for Golf, Bowling, Leisure Travel, and Recycling. These awards are awarded annually to managers selected from 

nominations through IMCOM Region channels to FMWRC and the Carroll - Excellence in Management Awards 

Selection Panel. Nominations are normally due at the end of November for the previous fiscal year performance. 

(Guidance is issued separately by FMWRC.) 

d. Army Sports Program Athlete of the Year. Annually, a male and a female athlete will be selected based on their 

performance for that year only. A selection panel will decide on the winners of the award, with the level of competition 

as one of the factors to be considered by the panel. Separate guidance is issued from FMWRC. 

e. Recreation Program Awards. Awards include Outstanding Recreation Programs (Arts and Crafts, Automotive 

Skills, Outdoor Recreation, Entertainment, Library, and Recreation Center); Recreation Program of the Year, Army 

Recreation Career Employee; Army Recreation Employee of the Year; and Army Recreation Volunteer of the Year. 

Guidance on these awards is issued separately by FMWRC. 

f. Art and Crafts Contest. See chapter 8, this regulation. 

g. All-Army Photography Contest. See chapter 8, this regulation. 

h. Army Chess Tournament. See chapter 8, this regulation. 

i. U.S. Army Battle of Bands Competition. See chapter 8, this regulation. 

j. Parade of American Music—Army Participants. See chapter 8, this regulation. 

k. Parade of American Music—Army Composers. See chapter 8, this regulation. 

K–2. Instructions 

Specific instructions on each award, competition, and tournament are contained in this regulation and guidance issued 

separately by FMWRC and/or posted on the MWR Web page at www.armymwr.com. 


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Appendix L 

Golf Course Coverage 

L–1. Insuring agreement 

RIMP will agree to pay the NAFI/entity the value of real property and personal property used in connection with the 

golf program, including its related activities, not including loss of use, owned by the NAFI/entity as described below 

and which is lost, damaged, or destroyed during the coverage period caused by a covered cause. 

L–2. Described property 

The following are covered: Bridges, towers, pipes, dams, exterior light fixtures, irrigation systems, in ground sprinkler 

systems and equipment, tennis courts, television satellite dishes, fences, pilings, piers, wharves, docks, retaining walls, 

roadways, walks, patios, and other paved surfaces, outdoor signs and other miscellaneous property, such as ball 

washers, flags, tee signs and benches, golf holes, meaning tees, cut fairways, sand traps, green areas, driving range, and 

trees, shrubs, and plants limited to a maximum of $500 per tree, shrub, or plant and $15,000 sublimit, including debris 

removal. 

L–3. Limits of liability 

a. RIMP’s limit of liability with respect to any one occurrence will not exceed $250,000. 

b. Limit for trees, shrubs, and plants will be $15,000 and will be limited to $500 per tree, shrub, or plant, including 

debris removal per course. A course is defined as 18 holes or fewer. Those locations with 27–36 holes have two 

courses. A location with 45 holes has three courses. 

L–4. Deductible 

All covered losses, except those caused by wind and lightning, are subject to a $1,500 deductible per occurrence. 

Covered losses caused by wind are subject to a $5,000 deductible per occurrence. Covered losses caused by lightning 

are subject to a $3,500 deductible per occurrence. 

L–5. Covered causes of loss 

RIMP will pay for direct physical loss or damage to covered property, unless— 

a. The cause of loss is listed under “exclusions” in paragraph L–6. 

b. The type of property is listed under “property not covered” in paragraph L–7. 

L–6. Exclusions 

RIMP will not pay for loss or damage caused by— 

a. Directly or indirectly, nuclear reaction, nuclear radiation, or radioactive contamination or loss or damage caused 

therefrom. 

b. War, including undeclared or civil war, warlike action in hindering or defending against an actual or expected 

attack, by any government, sovereign, or other authority using military personnel or other agents. 

c. Directly or indirectly, any of the following. (Such loss is excluded regardless of any other cause or event that 

contributes concurrently or in any sequence to the loss). 

(1) Earth movement. Any earth movement, but if earth movement results in fire or explosion (other than volcanic 

explosion) or volcanic action and these causes of loss would be covered under this coverage, RIMP will pay for the 

loss caused by that fire or explosion. 

(2) Flood and water damage. If flood or water damage described below results in fire or explosion, RIMP will pay 

for the loss caused by fire or explosion. 

(a) Flood. 

(b) Water from a nonexistent body of water that backs up from sewer or drain. 

(c) Water below the surface of the ground, including that which exerts pressure on, or flows, seeps or leaks through 

foundations, walls, floors, or paved surfaces; basements, whether paved or not; or doors, windows, or other openings. 

(3) Ordinance or law. The enforcement of any ordinance or law— 

(a) Regulating the construction, use, or repair of any property. 

(b) Requiring the tearing down of any property, including the cost of removing its debris. 

d. Or resulting from any of the conditions listed below. If an excluded cause of loss that is listed below results in a 

fire or explosion and if these causes of loss would be covered under this coverage, RIMP will pay for the loss caused 

by that fire or explosion. Conditions are— 

(1) Freezing or extremes of temperature. 

(2) Rain, snow, sleet, sand, or dust. 

(3) Wear and tear, hidden or latent defect, or gradual deterioration. 

(4) Corrosion, rust, dampness, dryness, or funguses. 


(5) Loss or damage caused by or resulting from, contributed to or made worse by actual or threatened release, 

discharge, escape, or dispersal of contaminants or pollutants, all whether direct or indirect, proximate or remote or in 

whole or in part caused by, contributed to, or aggravated by any physical damage insured by this coverage, unless loss 

or damage from a peril insured herein ensues, and then this coverage will cover such ensuing damage. 

(6) Neglect on the part of the NAFI/entity to take all reasonable steps to protect the covered property when there is 

notice of an impending disaster or during or after such a disaster. RIMP will not cover any loss that results from 

neglect. 

e. Or resulting from— 

(1) Burn-outs of fairways, tees, and greens. 

(2) Voluntary parting with any property by the NAFI/entity or anyone entrusted with the property if induced to do 

so by any fraudulent scheme, trick, device, or false pretense. 

f. Or resulting from insects, birds, rodents, or other animals. However, if an excluded cause of loss that is listed 

above results in a covered cause of loss, RIMP will pay for that loss caused by that covered cause of loss. 

g. Dishonest acts by the NAFI/entity, anyone else with an interest in the property, or the NAFI’s/entity’s employees 

or agents, whether or not occurring during the hours of employment. 

h. Any location that is not specifically declared onto and made a part of this coverage. 

L–7. Property not covered 

RIMP will not pay for the following, unless specifically included as covered property (and then only to the extent 

included). RIMP will not pay for spare or repair parts to any of the items in paragraphs L–7a through e. 

a. Loss of records of accounts receivable, valuable papers, or data including data or media. 

b. Loss to golf carts, autos, aircraft, watercraft, or any other vehicle both licensed and designated for highway use. 

c. Loss to buildings or their improvements, building materials or supplies of any kind. 

d. Loss to cement, sand (other than sand traps), gravel, or earthen fill. 

e. Loss to furniture, fixtures, office supplies or equipment, including grounds equipment. 

f. Loss to water or land including land on which the property is located. 

g. Money and securities. 

h. Any other property not specifically described or scheduled hereon. 

i. Loss or damage to netting and poles worldwide. 

L–8. Coverage conditions 

a. Coverage period. RIMP will cover loss or damage commencing on the date that coverage is requested and 

approved. 

b. Territory. This coverage will cover only the locations that specifically request golf course coverage. 

c. Valuation. RIMP will determine the value of property covered in the event of loss or damage. In the event of loss, 

the value of property will be determined as of the loss. RIMP will not pay more than the least of— 

(1) The actual cash value of that property; 

(2) The cost of reasonably restoring that property to its condition immediately before loss; or 

(3) The cost of replacing that property with substantially identical property. 

d. Notice of loss. As soon as practicable after any loss or damage occurring under this coverage is known, the NAFI/ 

entity will report such loss or damage with full particulars to RIMP within 60 days from the date of the loss. 

e. Duties after loss. In case of a loss to which this insurance may apply, the NAFI/entity will see that the following 

duties are performed: 

(1) Protection of property. Protect the property from further loss and take all steps possible to minimize the loss. If 

expenses are incurred in doing so, they will be borne by the NAFI/entity and RIMP proportionate to respective 

interests, consistent with use of due diligence. 

(2) Notice of loss. Report as soon as practicable in writing to RIMP any loss or damage that may become a claim 

under this coverage. 

(3) Proof of loss. File with RIMP a detailed proof of loss within 90 days after discovery of the loss. The proof of 

loss will be signed and sworn to by the NAFI/entity that the facts of the loss and the amount thereof are to the NAFI’s/ 

entity’s best knowledge and belief. 

f. Partial payment of loss. In the event of a loss covered by this coverage, RIMP will allow a partial payment(s) of 

claim subject to the coverage provisions and normal adjustment process. 

g. Payment of loss. 

(1) Loss, if any, will be payable to the NAFI/entity or the NAFI’s/entity’s loss payee. 

(2) Unless a claim has been paid by others, all adjusted claims will be paid or made good to the NAFI/entity within 

30 days after presentation of satisfactory proof of interest and loss to the RIMP office or after RIMP can reach 

agreement with the NAFI/entity. No loss will be paid or be made good if the NAFI/entity collects the same from 

others. 


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h. Reinstatement. Any covered loss will not reduce the amount of this coverage’s per occurrence limit. 

i. Recoveries. Any recovery or salvage on a loss will accrue to RIMP’s benefit until the sum paid by RIMP is 

repaid. 

j. Definitions. 

(1) “Loss” means accidental loss or damage. 

(2) “Actual cash value” means the present-day value of property measured in cash, arrived at by taking the 

replacement cost and deducting for depreciation brought about by physical wear and obsolescence where applicable. 

k. Debris removal. 

(1) This coverage will cover the cost of removal of debris of property resulting from a covered loss. 

(2) This coverage will not cover the following expenses: 

(a) The cost of removal of debris of property not insured hereunder from the premises of the insured. 

(b) Decontamination of debris. 

(c) Extraction of contaminants or pollutants from land or water. 

(d) Removal, restoration, or replacement of contaminated or polluted land or water. 

l. Cancellation. This coverage will be cancelled by stating in writing the future date it is anticipated to be cancelled. 

m. Due diligence clause. The NAFI/entity will use due diligence and do and concur in doing all things reasonably 

practicable to avoid or diminish any loss or any circumstance likely to give rise to a loss or claim covered under this 

coverage. It is agreed that this coverage will extend to indemnify the NAFI/entity for any ascertained net loss of 

additional incurred expenses and/or increased costs necessarily incurred by the NAFI/entity to avoid or diminish any 

such loss or claim, subject to any deductible provision, provided, however, that in no circumstances will RIMP’s 

maximum liability under this coverage be greater than the sum insured as declared, or that which would have been 

incurred had the NAFI/entity not incurred said increased costs and/or additional out-of-pocket expenses, or in any event 

exceed the limits of liability of this coverage. 

n. Premises protection. It is a condition of this insurance that the NAFI/entity will maintain such protective 

safeguards as were represented by the NAFI/entity to be in effect at the time that this coverage was approved by RIMP. 

Failure to maintain such protection safeguards will void this coverage to the extent of any loss resulting from or 

contributed to by the lack of such protective safeguards. 

Appendix M 

NAFI/Entity Asset Losses 

Section I 

Reports of Investigation 

M–1. General 

Normally, the fund manager/entity administrator will be responsible for NAF property and for initiating reports of 

losses to proper authorities (military police, fire marshal, ACIF, or the approval authority). The person designated to 

investigate the incident will coordinate any investigative effort with the applicable law enforcement agency (Office of 

the Provost Marshal and U.S. Army Criminal Investigation Command) as appropriate and will be senior to the person 

being investigated (commissioned or warrant officer; NCO, E–7 or above; or a civilian employee GS–7 or above). 

Reports will be submitted to the approval authority within 15 days of the discovered loss and prepared in a standard 

memorandum format shown in AR 25–50, unless another format is prescribed locally. Reports will include facts and 

circumstances surrounding the loss, specific findings, and recommendations. Interview with principals and witnesses 

and examination of documents and physical evidence will also contribute to the development of findings and 

recommendations. They will be included as part of the report along with any rebuttal, reconsideration, appeal, and legal 

opinion which may result. 

M–2. Reports 

Reports will include— 

a. Date, time, and location of the incident. 

b. Description of lost, damaged, or destroyed items to include the makes, models, serial numbers, and quantities. 

c. Value determined as follows: 

(1) Cash: the actual dollar amount. For foreign currency, the actual amount in the foreign denomination and its 

equivalent value in U.S. dollars. 

(2) Securities: market value at the close of business on the day the loss was discovered. 

(3) Property: fair market value at the time of the loss, if available, or original acquisition cost, less depreciation 

shown in table 20–1. 


(4) Resale merchandise: wholesale or actual acquisition cost. 

(5) Cost of repair, if item recovered is damaged and repairable. 

d. Accounting of insurance proceeds (RIMP Claim Closing Memo) showing amount paid or commercial insurance 

payments, indicating any depreciation and/or deductible or basis for denial of payment on claim. 

e. Circumstances surrounding the loss. 

f. In-depth analysis of all available evidence (statements provided by principals and witnesses, the degree to which 

each statement is substantiated or contradicted by other statements, related documents, or physical evidence) to 

establish— 

(1) What, when, where, why, and how, the loss occurred. 

(2) Who was involved and who should be held responsible. 

g. Management control weaknesses attributable to the loss, such as— 

(1) Procedures for controlling prenumbered cash control forms and recording sales. 

(2) Accuracy of receiving procedures. 

(3) Timeliness of receiving report submissions and whether or not receipts and stock are secured and transfers 

documented properly (this includes transfers out due to breakage, spoilage, and obsolescence). 

(4) Correctness of portioning food in food operations. 

h. For inventory and retail sales accountability variances exceeding $500, review the accuracy of— 

(1) Beginning and ending inventories. 

(2) Receiving reports. 

(3) Sales receipts. 

(4) Transfers in and out. 

(5) Recorded cost of goods. 

(6) Resale prices. 

i. A separate paragraph listing all relevant findings and conclusions based on an analysis of all evidence: 

(1) A separate subparagraph will address each finding, supported by evidence discussed in the report or attached as 

exhibits or enclosures. 

(2) Specific procedures from relevant management control publications will be cited, particularly for those involving 

weaknesses in or noncompliance with management control procedures. 

(3) The degree of negligence will be determined when the loss was due to or contributed to by actions or omissions 

of persons accountable or responsible for the NAF property. Simple negligence is the failure to act as a reasonably 

prudent person under similar circumstances. Gross negligence is an extreme departure from accepted standards and 

accompanied with a recklessness or wanton disregard of the consequences of the act or omission. 

(4) Any extenuating or mitigating circumstances that bear on the extent of personal liability will be noted. 

Extenuating circumstances tend to rationalize, justify, or explain. Mitigating circumstances tend to lessen the severity, 

impact, or effect. 

j. Evidence and supporting documents, including— 

(1) Signed and dated witness statements. 

(2) Copies of military police reports. 

(3) SOPs and/or management control publications. 

(4) Rental agreements. 

(5) DARs. 

(6) Canceled checks, payment vouchers, copies of bank deposit slips, and similar documents. 

(7) ACIF claim closing memos or commercial equivalents that show payment or denial of insurance claims. 

Documents will include the basis of payments made, to include calculation of depreciation and deductibles, and the 

reasons for denial. 

(8) Photographs of physical evidence, such as furniture, fixtures, or equipment. 

k. A separate paragraph listing all recommendations. Recommendations will suggest corrective actions needed and 

fix individual responsibility. A separate subparagraph will address each recommendation. Each recommendation will be 

based on findings and evidence. 

(1) Recommendations for corrective action will address systemic or procedural changes considered necessary to 

prevent recurrence and may include— 

(a) Physically altering or modifying facilities. 

(b) Establishing new procedures. 

(c) Clarifying or strengthening established procedures. 

(d) Improving management controls. 

(e) Providing additional or specialized training. 

(2) Recommendations that fix individual responsibility also include— 

(a) The dollar amount for which the individual should be held pecuniarily liable. 


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(b) A portion of the loss, based on extenuating or mitigating circumstances. 

(c) Relief from accountability or responsibility. 

(3) Recommendations for liability limits will include— 

(a) Accountable officers, contractors or contractor employees, states and territories of the United States, and 

individuals or entities not federally employed may be held liable for the entire amount of loss when negligence or 

willful misconduct is shown to be the proximate cause of the loss. 

(b) In cases other than those in paragraph M–2k(3)(a), maximum liability will be as follows: 

1. Military personnel. In an amount equal to 1 month’s basic pay at the time of the loss or the actual amount of the 

loss, whichever is less. 

2. ARNG and USAR personnel. One month’s base pay refers to the amount that would be received by the Soldier if 

on active duty. 

3. DOD civilian employees. One-twelfth of their annual pay or actual amount of loss, whichever is less. 

4. Two or more entities. When two or more entities are held collectively and individually liable, computation of the 

loss is determined according to the procedures specified in AR 735–5. 

(4) Recommendations involving liability must consider— 

(a) The dollar amount of loss. 

(b) The degree of negligence. 

(c) The amount of insurance, if any, paid by the ACIF or commercial insurers, or the denial of insurance claims due 

to management control or physical security deficiencies. 

(d) The administrative workload and costs associated with appeals and collection actions. 

(5) Recommendations for liability will include the following items: 

(a) Person’s name and social security number. 

(b) Dollar amount of liability charged and the method used to compute charges. 

(c) Basic pay to which the individual is entitled in an average pay period. 

(d) Date of employee discharge or termination, if applicable. 

M–3. Submission of reports 

a. Reports that recommend relief from accountability or responsibility will be submitted directly to the approval 

authority. 

b. For liability in any amount and prior to submission to the approval authority, a copy of the report will be given to 

each person against whom liability is recommended. The person will receive written notice (by memorandum) of the 

type and amount of liability recommended and will be advised of consequences, if approved, and their rights to— 

(1) Include a written statement in the report on the recommendation of financial liability. 

(2) Inspect and copy records related to the liability. 

(3) Seek legal advice from the servicing legal officer. 

(4) And submit a rebuttal to the investigator based on new evidence or on evidence not considered previously— 

(a) Within 7 calendar days from date of receipt if the individual is served in person; 

(b) Within 15 calendar days of the date of delivery by certified or registered mail if the individual is unavailable but 

in the same country; and 

(c) Within 30 calendar days from the date of delivery by certified or registered mail if the individual is unavailable 

and in a different country. 

M–4. Rebuttals 

a. If no rebuttal is received, the completed report will be submitted to the approval authority. 

b. If a rebuttal is submitted within the allotted time, the investigating official will consider any new or additional 

evidence and take one of the following actions: 

(1) Let the original recommendation stand. 

(2) Reduce the recommended amount of pecuniary liability. 

(3) Recommend relief from accountability or responsibility. 

c. Rebuttal statements and final action by the investigating official will be enclosed with the original report and 

submitted to the servicing legal officer for review prior to review of the approval authority. 


d. Rebuttals received after the allotted time will be considered and submitted through legal channels to the approval 

official. 

Section II 

Approval and Appeal Authority, Reconsiderations and Appeals, and Final Actions 

M–5. Approval authority 

The approval authority will review the report and rebuttal, if submitted, and take one of the following actions: 

a. Return the report to the investigating official for additional information. 

b. Order an AR 15–6 investigation and appoint an investigating officer. 

c. Approve the report recommendations. 

d. Disapprove the report recommendations and take other action. 

e. Assess pecuniary liability, considering the basic pay of affected individuals. Assessments may be prorated over a 

reasonable period of time. 

M–6. Liability assessment 

Individuals assessed liability as a result of an investigation will receive notification of collection and a copy of the final 

report, delivered by mail or messenger with a signed receipt guarantee. Included are— 

a. The amount of liability assessed, terms of payment and intention to collect. 

b. A listing of individual rights, including the right to— 

(1) Inspect and copy relevant records. 

(2) Obtain legal advice from the SJA. 

(3) Request reconsideration based on evidence not previously considered, new evidence, or legal error. Reconsiderations 

will be submitted through command channels to the approval authority, within 30 days from receipt of 

notification. 

(4) Request an extension of the payment period within 30 days from receipt of notification. 

(5) Request remission or cancellation of the debt under the provisions of AR 600–4 (for enlisted personnel). 

(6) Submit an application to the Army Board for the Correction of Military Records under the provisions of AR 

15–185 (for all military personnel). 

M–7. Reconsideration 

The approval authority will review reconsideration and take one of the following actions: 

a. Affirm the original decision. 

b. Reduce the amount of pecuniary liability assessed. 

c. Notify the individual of relief from accountability or responsibility. 

M–8. Appeals 

a. If reconsideration does not result in relief from accountability or responsibility, the reconsideration will become 

an appeal, and the approval authority will submit the complete report by memorandum to the appeal authority (next 

higher authority). 

b. The memorandum referring the report to the appeal authority will specify dollar amounts of liabilities assessed 

and the basis for the decision. 

M–9. Appeal authority 

a. The appeal authority will request a second legal review. 

b. If not legally sufficient, the opinion will state the reasons why and will make appropriate recommendations. 

c. The appeal authority will review the case and SJA recommendations and take one of the following actions: 

(1) Affirm the approval authority’s decision. 

(2) Direct the approval authority to reopen the investigation to clarify any matters specified by the appeal authority. 

(3) Reduce assessed amount of pecuniary liability. 

(4) Relieve any/all concerned of accountability or responsibility. 

M–10. Final actions 

The original report and all related documents will be returned to the approval authority with a memorandum that— 

a. Specifies final action on the appeal. 

b. Directs the approval authority to notify the individual of the final action. 


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c. Gives instructions for refunding amounts already collected for those assessment decisions that are reversed. 

Section III 

Collections of Liability Assessments 

M–11. Collections 

The preferred method of collecting liability assessments is a voluntary negotiated agreement for payment made in a 

single cash transaction, where possible, or regular partial payments over a reasonable period of time. If a voluntary 

agreement cannot be negotiated, procedures specified in chapter 16 will be used. If neither of the above is successful, 

involuntary pay deduction will be initiated in accordance with the following procedures, as appropriate. 

a. Military personnel. The fund manager/entity administrator will provide the finance office/defense accounting 

office (FO/DAO) with a copy of the complete report and Defense Finance and Accounting Service (DFAS) will 

process the debt per AR 37–104–4 (active). Enlisted soldiers may seek cancellation or remission of indebtedness under 

AR 600–4. If the individual is in the process of being separated and the debt is not paid, the debt will be considered in 

settlement of final pay. 

b. NAF employees. Payroll deductions will be per AR 215–3. The fund manager/entity administrator will forward a 

copy of the collection notification sent to the employee to the payroll office unless there is an appeal. The amount 

deducted in any one pay period must be reasonable in terms of net pay and, generally, should be sufficient to satisfy 

the debt in 5 to 10 pay periods. 

c. APF civilian employees. A copy of the complete report of investigation will be forwarded to the employee’s 

supervisor who, in turn, may refer it to the servicing CPAC for action under appropriate civilian personnel regulations. 

d. Other persons. Collections will be processed as claims in favor of the United States under the provisions of AR 

27–20 and this chapter or under terms of an applicable contract. 

M–12. Processing payments 

The claiming NAFI/garrison MWR operating entity will receive any recovered debt payments from DFAS. Where 

ACIF has made insurance payment on a claim, ACIF is entitled to first right of recovery as stated in chapter 19, and 

any claim payments received from DFAS by the claiming NAFI/entity will be sent to the Commander, Family and 

Morale, Welfare and Recreation Command, ATTN: IMWR–FM, 4700 King Street, Alexandria, VA 22302–4406. 

Appendix N 

Management Control Evaluation Checklist 

N–1. Function 

The function covered by these checklists is the administration, operation, and management of MWR programs and 

NAFIs. 

N–2. Purpose 

a. The purpose of these checklists is to assist IMCOM Regions and installation/garrison personnel responsible for 

the following programs in evaluating key management controls related to the areas listed in paragraph N–4: 

(1) MWR programs and NAFIs in administering APF and NAF resources. 

(2) MWR program reporting requirements. 

(3) Managing MWR programs. 

(4) Other NAFIs. 

b. Many of the questions are also pertinent to NAFIs other than military MWR programs. 

c. These checklists are not intended to cover all controls. 

N–3. Instructions 

Answers must be based on actual testing of key management controls, such as document analysis, direct observation, 

interviewing, sampling, and simulation. Answers that indicate deficiencies must be explained and corrective action 

must be indicated in supporting documentation. These management controls must be evaluated at least once every 5 

years. Certification that this evaluation has been conducted must be accomplished on DA Form 11–2–R (Management 

Control Evaluation Certification Statement). More frequent use of these checklists may be required based on the 

Installation Management Control Plan and local risk assessment. 

N–4. Test questions 

Key management control evaluation checklists can be found for the following areas at the FMWRC Web page, 

www.armymwr.org/internal_review.htm. Click #4 checklists, then click assorted checklists: 


a. Amusement and Vending Machine Operations. 

b. Banking Operations. 

c. Cash Management. 

d. Marketing. 

e. NAF Major Construction. 

f. Sustainment, restoration, and modernization. 

g. Planning & Budgeting. 

h. Sales Accountability. 

i. Youth Services. 

j. MWR BRAC process. 

k. Armed Forces Recreation Centers. 

l. Army Recreation Machine Program. 

m. Business Programs Branded Theme Concepts. 

n. Commercial Sponsorship. 

o. Other MWR program areas. 

N–5. Supersession 

This checklist replaces the checklists for the administration, operation, and management of MWR programs and NAFIs 

previously published in AR 215–1, dated 15 August 2005. 

N–6. Comments 

Help make this a better tool for evaluating management controls. Submit comments to the Commander, Family and 

Morale, Welfare and Recreation Command, ATTN: IMWR–IR, 4700 King Street, Alexandria, VA 22302–4410. 


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Glossary 

Section I 

Abbreviations 

A&R 

athletic and recreation 

AAFES 

Army and Air Force Exchange Service 

ABIF 

Army Banking and Investment Fund 

ACIF 

Army Central Insurance Fund 

ACRC 

Army Combat Readiness Center 

ACS 

Army Community Service 

ACSIM 

Assistant Chief of Staff for Installation Management 

ACTEDS 

Army Civilian Training and Education Development System 

ACV 

actual cost value 

ACWF 

Army Civilian Welfare Fund 

AD 

active duty 

AEI 

Architectural and Engineering Instructions 

AFA 

Army flying activities 

AFE 

Armed Forces Entertainment 

AFRC 

Armed Forces Recreation Center 

AFRTS 

Armed Forces Radio and Television Service 

AGL 

above ground level 

AIFA 

AAFES Imprest Fund Activities 

ALR 

Army-level requirements 


AMC 

Air Mobility Command 

AMWRF 

Army Morale, Welfare, and Recreation Fund 

APF 

appropriated fund 

APO 

Army Post Office 

ARM 

Army recreation machine 

ARMP 

Army Recreation Machine Program 

ARMTF 

Army Recreation Machine Trust Fund 

ARNG 

Army National Guard 

ARSTAF 

Army Staff 

ASA(FM&C) 

Assistant Secretary of the Army (Financial Management and Comptroller) 

ASA(I&E) 

Assistant Secretary of the Army (Installations and Environment) 

ASA(M&RA) 

Assistant Secretary of the Army (Manpower and Reserve Affairs) 

ASIP 

Alcohol Sellers Intervention Program 

ASPSO 

activity sport parachuting safety officer 

AT 

annual training 

ATF 

alcohol, tobacco, and firearms 

ATTN 

attention 

BBM 

borrowed military manpower 

BCT 

basic combat training 

BOD 

board of directors 


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BOSS 

Better Opportunities for Single Soldiers 

BRAC 

base realignment and closure 

CAC 

Community Activity Centers 

CAO 

central accounting office, officer 

CBA 

centrally billed account 

CCB 

Configuration Control Board 

CD 

compact disk 

CDC 

child development center 

CDS 


CFR 

Code of Federal Regulations 

CID 

Criminal Investigation Division 

CIO 

Chief Information Officer 

CIRB 

Capital Investment Review Board 

CJA 

claims judge advocate 

CLEOS 

CYS liaison, education, and outreach services 

COD 

Community Operations Division 

CONUS 

continental United States 

CPAC 

Civilian Personnel Advisory Center 

CPMC 

capital purchases and minor construction 

CPOC 

Civilian Personnel Operations Center 


CPS 

Customer Payment Solution 

CRC 

community recreation center 

CTA 

common table of allowance 

CTO 

commercial travel office 

CTS 

commercial travel services 

CYS 

Child and Youth Services 

DA 

Department of the Army 

DAR 

daily activity report 

DCS, G–1 

Deputy Chief of Staff, G–1 

DCS, G–3 

Deputy Chief of Staff, G–3 

DEH 

Director of Engineering and Housing 

DFAS 

Defense Finance and Accounting Service 

DG 

design guide 

DLA 

Defense Logistics Agency 

DOD 

Department of Defense 

DODI 

Department of Defense instruction 

DOIM 

Director of Information Management 

DOL 

Director of Logistics 

DPW 

Director, Public Works 

DRM 

Director of Resource Management 


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DRMO 

Defense Reutilization and Marketing Office 

DSN 

Defense Service Network 

DZSO 

drop zone safety officer 

EA 

Enterprise Architecture 

EA–CCB 

Enterprise Architecture Configuration Control Board 

E–E 

emergency-essential 

ECECS 

executive control and essential command supervision 

EO 

Executive Order 

ER 

evaluation report 

FAA 

Federal Aviation Administration 

FAD 

funding authorization document 

FAO 

finance and accounting office 

FAR 

Federal Aviation Regulations 

FB&E 

food, beverage, and entertainment 

FCC 

Family Child Care 

FDIC 

Federal Deposit Insurance Corporation 

FICA 

Federal Insurance Contribution Act 

FMD 

Financial Management Division 

FMWRC 

Family and Morale, Welfare and Recreation Command 

FPCON 

forces protection conditions 


FPM 

Federal Personnel Manual 

FTS 

full-time support 

GDPR 

Global defense posture realignment 

GM 

general manager 

GSA 

General Services Administration 

HAZMAT 

hazardous material 

HQ 

headquarters 

IBA 

individually billed account 

IFR 

Instrument flight rules 

IMCOM 

Installation Management Command 

IRS 

Internal Revenue Service 

ISPSO 

installation sport parachuting safety officer 

ITR 

Information, Ticketing, and Registration 

JFTR 

Joint Federal Travel Regulations 

JTR 

Joint Travel Regulations 

LHWCA 

Longshore and Harbor Workers’ Compensation Act 

LOSS 

line of sight supervision 

LTS 

Leisure Travel Services 

MACOM 

major Army command 

MAR 

machine activity report 


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MCA 

Military Construction, Army 

MDEP 

management decision evaluation packages 

MILCON 

military construction 

MILDEP 

military department 

MIS 

management information system 

MOA 

memorandum of agreement 

MOS 

military occupational specialties 

MOU 

memorandum of understanding 

MPA 

Military Personnel, Army 

MS/T 

middle school/teen 

MTOE 

modified table of organization and equipment 

MTV 

military travel vouchers 

MWR 

morale, welfare, and recreation 

NAF 

nonappropriated fund 

NAFI 

nonappropriated fund instrumentality 

NAFMC 

nonappropriated fund major construction 

NCO 

noncommissioned officer 

NCUA 

National Credit Union Administration 

NTSB 

National Transportation Safety Board 

NYSCA 

National Youth Sports Coaches Association 


OACSIM 

Office of the Assistant Chief of Staff for Installation Management 

OCONUS 

Outside the continental United States 

OPM 

Office of Personnel Management 

OSD 

Office of the Secretary of Defense 

PAO 

public affairs office 

PCS 

permanent change of station 

PIF 

pilot information file 

P.L. 

public law 

PO 

private organization 

POC 

point of contact 

POL 

petroleum, oil, and lubricants 

POM 

program objective memorandum 

POV 

privately owned vehicle 

PPV 

public-private venture 

PRD 

personnel requirements document 

PVA 

project validation assessment 

PVR 

post-construction validation review 

QCCS 


QDPC 

Soldier MWR 

QYDP 

Youth Services 


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RC 

Reserve Component 

RIMP 

U.S. Army NAF Risk Management Program 

ROA 

report of availability 

ROI 

return on investment 

R&R 

rest and recreation 

ROTC 

Reserve Officers’ Training Corps 

RV 

recreation vehicle 

RV/CG 

recreational vehicle/campground 

SA 

Secretary of the Army 

SAS 

School Age Services 

S&F 

sports and fitness (Youth Services) 

SFAC 

Soldier and Family Assistance Center 

SIM 

Skydiver Information Manual 

SIR 

serious incident report 

SJA 

staff judge advocate 

SM 

supplemental missions 

SNN 

standard nonappropriated fund instrumentality number 

SOFA 

status of forces agreement 

SOP 

standard operating procedure 

SRM 

sustainment, restoration, and remodernization 


SSE 

self-sufficiency exemption 

TCP/IP 

transmission control protocol/Internet protocol 

TDA 

tables of distribution and allowances 

TDY 

temporary duty 

TJAG 

The Judge Advocate General 

TOE 

table of organization and equipment 

TPC 

total project cost 

TRADOC 

U.S. Army Training and Doctrine Command 

UFM 

uniform funding and management 

USA 

utilization, support, and accountability 

USAAA 

U.S. Army Audit Agency 

USACE 

U.S. Army Corps of Engineers 

USAR 

U.S. Army Reserve 

USBC 

U.S. Bowling Congress 

USC 

United States Code 

USCF 

U.S. Chess Federation 

USGA 

United States Golf Association 

USMA 

U.S. Military Academy 

USO 

United Services Organization 

USPA 

United States Parachute Association 


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VFR 

visual flight rules 

VIN 

Vehicle Identification Number 

VTO 

virtual ticket office 

WCAP 

World Class Athlete Program 

YES 

Youth Education Support 

YS 

Youth Services 

Section II 

Terms 

Accountable officer 

Person officially appointed in writing by proper authority, to maintain a formal set of accounting records of property or 

funds. This person may or may not have physical possession of the property or funds. Supervises the preparation, 

maintenance, and management of the document/voucher register, regardless of the physical location of the registers. 

Actual cash value 

The replacement cost of the property at the time of loss less depreciation. Sentimental, historical, or similar factors do 

not increase the value of property for insurance purposes. 

Agreed amount 

A stated value of insured property, the full amount of which is payable if a total loss happens. 

Alcohol beverage 

Potable beverage containing any amount of ethyl alcohol. This includes wines, malt beverages, and distilled spirits. 

Alphanumeric 

Consisting of numbers and letters. 

Alteration 

Change to interior or exterior facility arrangements to improve use of the facility for its current purpose. This includes 

installed equipment made a part of the existing facility. Additions, expansions, and extensions are not alterations. 

Appeal authority 

The next higher authority over the approving authority. The garrison commander if the approving authority is the 

Director, FMWR. The appeal authority may not act as both the approving and appeal authority. A person who had 

personal responsibility or accountability for the property listed on a report will not act as appeal authority. In such 

cases, the next higher authority will be the appeal authority. The appeal authority takes final action on requests for 

reconsideration when the investigation of property loss approval authority denies relief of financial liability against an 

individual, and acts on requests for remission or cancellation of indebtedness. 

Appropriated funds 

Monies made available to the MILDEPs by the Congress of the United States. Such appropriations are of two types: 

annual and multi-year. The purposes for which these funds are appropriated are specified by Congress in its appropriation 

acts. 

Approving authority 

Army officer or DA civilian employee authorized to appoint an investigating officer and approve investigations of 

property loss. Next higher authority over the fund or entity manager/investigating officer. No person may act as an 

approving authority who has personal responsibility for the property listed on a report at the time that property became 


lost, damaged, or destroyed. In such cases, the next higher authority in the chain of command will act as approving 

authority. 

Army Lodging Program 

APF mission function activities operated primarily to provide short-term accommodations for TDY and PCS personnel. 

Includes both unaccompanied personnel hoursing (TDY) housing and guest houses. The APF mission is supplemented 

with NAFs generated through service charges to support authorized NAF expenditures. Army Lodging is a non-MWR 

program. 

Army MWR Fund 

Army central nonappropriated fund managed by FMWRC that provides up to 90 percent of funds for approved NAF 

major construction and supports other Armywide MWR programs. Successor to all IMCOM Region single MWR 

NAFIs. 

Army Recreation Machine Program (ARMP) field office 

The ARMP management organization that is responsible for day-to-day recreation machine activities in a designated 

geographic area. 

Army Recreation Machine installation 

Any installation, at which recreation machines are located. 

Army Recreation Machine key control custodian 

Individual officially designated to control, safeguard, and secure keys to amusement and vending machines or 

recreation machines and stands. 

Au pair 

A young adult, 18–26 years of age, from another country, accepted by a State Department-approved au pair organization, 

who is afforded the opportunity to learn and live with a military Family within the United States while attending 

an accredited post-secondary institution of higher education for not fewer than 6 hours of academic credit or its 

equivalent. The host Family assumes responsibility for the au pair’s room and board, remuneration for childcare 

services provided, and other contractually agreed upon expenses for the duration of a minimum period of 12 months as 

required by the State Department. 

Automated cash machines 

A machine that cashes out funds on slot machine smart cards. 

Bona fide guest 

A person who is actually a houseguest, or a person whose presence as a guest is in response to an invitation for a 

specific occasion and for whom the host is willing to assume responsibility, including payment for services and 

products received. 

Borrowed military manpower 

Use of military manpower from a TOE unit to perform duties in a TDA activity where a MACOM-approved manpower 

requirement exists but for which no manpower space has been authorized. Borrowed military manpower may be 

employed in those cases where manpower spaces have been authorized, but the positions are vacant. See also special 

duty and troop diversion. 

Budget approval 

Approval by the IMCOM Region garrison MWR operating entity Operating, CPMC, cash and APF/NAF budgets. This 

is the financial review that constitutes approval to expend NAFs, except for major construction which requires 

congressional approval. 

Capital expenditure 

Purchase or construction of a fixed asset. 

Capital purchase and minor construction (CPMC) 

Capital purchase items ranging in cost from $1,000 to $199,000 whether or not construction is involved, and over 

$200,000 where there is no construction involved; for example, bulk purchase of like items, or single projects such as a 

telephone system. Minor construction projects ranging in cost from $200,000 to $750,000. 


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Cash (drop) box 

A container secured within a recreation machine that accumulates the cash revenues for later collection, count, and 

deposit. 

Cash collection (drop) 

The activity in which coins are periodically collected from the cash boxes, counted, and funds deposited. Representatives 

from FMWRC and the NAFI are required to participate in the process. 

Casualty insurance 

Insurance, which covers a liability imposed on the organization through legal determination or through the acts of one’s 

employees. Included are general or tort liability, automobile and aircraft liability, workers’ compensation, and fidelity 

losses. 

Celebration 

Also an event. Joyful occasion for special festivities to mark some happy event; celebrations are considered open to the 

public and MWR events. 

Ceremony 

Formations and movements in which a number of troops execute movements in unison and with precision just as in 

drill; however, their primary value is to render honors, preserve tradition, and stimulate esprit de corps. 

Commercial insurance 

Transfer of risk to a commercial or State corporation through the purchase of an insurance contract. The terms of the 

contract establish the conditions of acceptance by the insurer and the degree of risk transferred. 

Commitment 

An administrative reservation of funds against a future obligation. 

Community 

As used overseas, synonymous with the term “garrison” or “installation.” 

Concessionaire 

Entrepreneur under contract to a NAFI for the purpose of providing services typically for resale by the concessionaire 

to authorized MWR patrons. 

Construction 

The erection, installation, or assembly of a new facility; the acquisition, expansion, extension, alteration, or replacement 

of an existing facility; the relocation of a facility from one installation to another; installed equipment made a part 

of the facility and the related site preparation, excavation, filling, landscaping, or other land improvements. 

Construction Requirements Review Committee 

A HQDA committee that provides an Armywide perspective to all military construction programs. 

Consumable 

Any item or article that is consumed or used up in the course of serving its intended purpose. Includes, but is not 

limited to, all resale items, plastic glasses and cups, paper napkins, cleaning supplies, postage stamps, and aviation fuel. 

Container 

Commercial or Government-owned shipping containers that are moved via ocean transportation. Such containers are 

lifted on and off the ship. 

Continental United States (CONUS) 

The United States territory, including the adjacent territorial waters, located within North America between Canada and 

Mexico. Also called CONUS. 

Contingency 

An emergency involving military forces caused by natural disasters, terrorists, subversives, or by required military 

operations. Because of the uncertainty of the situation, contingencies require plans, rapid response, and special 

procedures to ensure the safety and readiness of personnel, installations, and equipment. 


Controlled equipment 

Items that cost $50 or more but that do not meet criteria of fixed asset accountability. Controlled equipment is not 

capitalized but accounted for on property control records. Items with a unit cost of less than $50 are not subject to 

property control except for sensitive items. 

Conversion 

Work required to adjust interior arrangements or other physical characteristics of an existing facility, or part of a 

facility, so it may be used for a new purpose. This includes equipment installed in, and made a part of, the existing 

facility. A conversion always results in a change in facility category code. 

Coordinating installation 

An installation, which is assigned responsibility for coordinating specific types of intra-service support within a 

prescribed geographical area. It is not necessarily the supporting installation. It is the installation to contact to 

determine what installation provides support. 

Current assets 

Cash and other assets that may be converted to cash or sold or consumed for cash within a year or less through the 

normal business operations. 

Current liabilities 

Obligations due within a year and are to be paid from current assets. 

Defense Attache Office 

A DOD organization established as part of a U.S. diplomatic mission, through which the mission of the Defense 

Attache System is accomplished. The Defense Attache System is operated by the Defense Intelligence Agency. The 

Secretary or Deputy Secretary of Defense may direct the assignment or attachment of other military detachments or 

elements to a Defense Attache Office (DODD 5132.12). 

Dependent 

See Family member. 

Direct expense 

Any costs incurred for the benefit of and traceable to a specific program or activity. 

Dispense 

Selling by the drink or a group of separate drinks. Included in dispensing is the sale of wine by the bottle for 

consumption on the premises. 

DOD component 

Any of the MILDEPs, DOD agencies, the AAFES, and the OSD. 

DOD newspapers 

Authorized publications that support DOD command information requirements, such as— 

a. Civilian enterprise newspapers published by commercial publishers under contract to DOD Components or 

subordinate commands, where the news and editorial content is prepared by the PAO staff. Advertising is sold by the 

publisher on the same basis as other commercial newspapers. They become property of the command, installation, or 

intended recipient upon delivery in accordance with terms of the contract. 

b. Funded newspapers published by DOD Components or their subordinate commands using APFs. Normally, the 

editorial content is prepared by the PAO staff. These newspapers are usually printed under contract by a commercial 

publisher in accordance with DOD or component printing regulations. No paid advertising is displayed. 

c. Overseas Unified Command newspapers provide world, U.S., and regional news from commercial sources, plus 

syndicated columns, editorial cartoons, and applicable U.S. Government, DOD Component, and subordinate command 

news and information. Includes the “Stars and Stripes.” Paid advertising must be from companies whose merchandise, 

goods and services are sold in exchanges, commissaries, or MWR programs. 

d. News bulletins and summaries published by isolated commands and ships. Compiled from national and international 

news obtained from authorized sources. News bulletins or summaries may be authorized by the next higher 

echelon of command when no daily English-language newspapers are readily available. 

DOD personnel 

Active duty military personnel, retired military, reservists, and DOD civilian employees paid from APFs or NAFs. 


235

Durable supply items/property 

Items/personal property that is not consumed in use and does not require property book accountability, but because of 

its unique characteristics requires control when issued to the user. 

Elements of expense/resource 

Specific types of resources consumed in or applied to MWR programs in the execution of MWR programs. Appendix 

D identifies operating and support costs as to purpose, as differentiated from fund fiscal administration (DFAS–IN Reg 

37–1). 

Emergency 

Circumstances which exist whenever there is an immediate, unforeseeable, temporary need to provide home to work 

transportation for those employees who are critical to the performance of the agency’s efficient operation. 

Entity administrator 

An individual appointed by written authority to a post of responsibility and trust to exercise administrative and 

management control of the garrison MWR operating entity and charted with accountability for the NAF resources 

thereof. 

Essential feeding 

Food service provided by a club during mobilization and emergencies. 

Excess foreign currencies 

Currencies of countries held by the U.S. Treasury in excess supply for all U.S. Government needs and periodically 

declared to the Office of Management and Budget by the U.S. Treasury as excess. The lists of countries are transmitted 

to DOD Components from time to time by appropriate DOD issuances. 

Exchanges 

MWR program, which provides reimbursable goods and services to authorized patrons and funds to support other 

designated MWR programs. Exchange programs include, but are not limited to, motion pictures, retail stores, gasoline 

filling stations, package beverage stores, car washes, laundries, bookstores. 

Exchange student 

A student from another country, accepted by a school-sponsored exchange student program, afforded the opportunity to 

learn and live with a military Family within the United States while attending school for one academic year or 

semester. The host Family assumes responsibility for the student’s room and board. The student’s parents provide the 

student with an appropriate allowance. Payment for round-trip airline tickets issued for the student’s final destinations 

and medical coverage for the entire duration of the child’s stay with the military Family in the United States are 

determined by the school-sponsored program. 

Executive control and essential command supervision (ECECS) 

Those managerial staff functions and positions located above the direct program managerial and operational level of 

individual MWR programs that support planning, organizing, directing, coordinating, and controlling the overall 

operations of MWR programs and activities. ECECS consists of program, fiscal, logistical, and other management 

functions that are required to ensure oversight and that are separate from the daily working level activities and tasks of 

the MWR programs. ECECS does not include the direct operation of individual MWR programs and activities. 

Expendable supplies/property 

Items of supply/property with a limited life expectancy that lose their identity after use over a short period of time. 

Expenses 

Costs that have been consumed or realized in the process of current operations or the production of revenue or income. 

Facility improvement project 

NAF major construction or CPMC project involving a scope of work that will produce a complete and usable 

improvement to an existing facility. The scope of work includes construction, sustainment, renovation, and modernization, 

and furnishings and equipment (each separately budgeted/funded) included in the overall improvement plan. A 

facility improvement project normally involves some construction or structural change to an existing facility, such as 

addition or removal of walls, doorways, etc., as opposed to the normal replacement of individual fixed assets. 


Facility manager 

Annex or activity manager of the location where the Army recreation machines are installed. 

Family member 

Includes the following definitions: 

a. Spouse of a sponsor. 

b. Unremarried widow or widower of a member or former member of a uniformed service. 

c. Unmarried child of a sponsor, including an adopted child, stepchild, foster child, or ward, who either— 

(1) Has not passed his/her 21st birthday. 

(2) Is incapable of self-support because of a mental or physical incapacity that existed before that birthday and is (or 

was at the time of the member’s or former member’s death) in fact dependent on the sponsor for over one-half of his/ 

her support. 

(3) Has not passed his/her 23rd birthday, is enrolled in a full-time course of study in an institution of higher learning 

approved by a Secretary of an executive department specified in 10 USC Section 1073, and is (or was at the time of 

the member’s or former member’s death) in fact dependent on the sponsor for over one-half of his/her support. 

d. Parent or parent-in-law of a sponsor who is (or was at the time of the member’s or former member’s death) in 

fact dependent on the sponsor for one-half of his/her support and residing in the sponsor’s household. 

Financial management 

Aspect of total management that provides direction, guidance, and control of financial operations to achieve program 

objectives by planning, budgeting, accounting, reporting, managing resources, auditing, analyzing, and evaluating. 

Fixed assets 

Commonly referred to as property, plant, and equipment. Fixed assets include capital assets such as buildings, 

equipment, furniture, fixtures, tools, and machinery. Intangibles are excluded from this category. Fixed assets are 

defined as property, plant, and equipment purchased, donated, or transferred to a NAFI that have an expected life of 

two or more years and a cost of $2,500 or more. (See DOD 1015.15 and DFAS–IN Regulation 37–1, chapter 32 for a 

more detailed definition.) 

Flexible employee 

An employee serving in an indefinite position on either a scheduled or an as needed basis. There is no upper limit to 

the hours a flexible employee may work (subject to overtime obligations and work scheduling requirements). 

Foreign areas 

All areas outside the 50 States, Puerto Rico, and the possessions of the United States, including the trust territory of the 

Pacific Islands. 

Foreign goods 

Goods produced or manufactured in a foreign country and physically located outside the United States, its possessions, 

or Puerto Rico, or in bonded warehouses or foreign trade zones within the United States, its possessions, or Puerto 

Rico. This excludes the acquisition of foreign-made or -produced merchandise from sources within the United States. 

Foreign national employee 

A citizen of an overseas host country or other foreign country who is employed by a NAFI and receives compensation 

from NAFs. 

Foster child 

A child, other than a sponsor’s natural child, who resides in a sponsor’s home, and whose care, comfort, education, and 

upbringing have been entrusted to the sponsor on a temporary or permanent basis by a court or civilian agency, or by a 

natural parent of the child. 

Foster Grandparent Program 

A program that offers low-income persons age 60 and over the opportunity to provide individualized attention to 

children with special and exceptional needs, including those who are neglected, abused, or developmentally disabled. 

Fraud 

The act of willfully taking or attempting to take unfair advantage of a NAFI. Fraudulent acts include, but are not 

limited to, offering or paying bribes; making false statements; submitting false claims; misusing NAF property; using 

false weights or measures; deceit, either by suppression of the truth or misrepresentation of a fact; adulteration or 

substitution of material; falsification of records; arrangements for secret profits or commissions; unauthorized use of, 


237

irregularities in connection with, or improper accounting for an imprest or petty cash fund, or conspiracy to commit 

any of these acts. 

Free fall 

Any fall without an open parachute or jump in which the parachute is opened by means other than a static line. 

Full-time support 

Encompasses personnel assigned on a full-time basis for the purposes of organizing, administering, recruiting, instructing, 

or training the ARNG and USAR. These personnel include civilian personnel, members of the Active Army, and 

personnel serving on Active Guard Reserve status. The Active Guard Reserve Program is a component of the Full- 

Time Support Program. 

Fund manager 

An individual appointed by written authority to a post of responsibility and trust to exercise administrative and 

management control of a NAFI and charted with accountability for the NAF resources thereof. The fund manager is the 

official fund custodian of a NAFI. 

Garrison commander 

For purposes of this regulation, garrison commanders are responsible for MWR and Family programs. For the purposes 

of this regulation, Area Support Commanders are also considered garrison commanders, unless otherwise designated by 

the Commander, IMCOM. Armed Forces Recreation Center and the Army Recreation Machine Program General 

Managers are considered garrison commanders for the purposes related to their operations. 

Garrison MWR operating entity 

An integral part of the Region single MWR fund. The term refers to the group of MWR programs offered at the 

installation and which fall within the garrison commander’s responsibility. (previously referred to as the Installation 

MWR Fund). 

Government property 

Property owned by and on the property records of the U.S. Government and acquired with APFs, as a gift, or as an 

authorized transfer of NAFI property to Government property records. 

Grey area gambling devices 

Certain machines or equipment that are recognized as gambling devices under the provisions of 15 USC 1171 and 

1175. 

Hand receipt 

A signed document acknowledging acceptance of and responsibility for items of property listed thereon that are issued 

for use and are to be returned. 

Improvements and betterments 

Modifications (such as fixtures, alternations, installations, and additions that become a permanent part of a building) to 

a used building which is not insurable. (Examples are new plumbing, new partitions, new storefronts, permanent wood 

paneling, and new rooms.) Improvements and betterments must be a major alteration, must change the building, and 

must increase its value. Recovery is based on the amount of money spent for improvements and will not decrease or 

increase. The installation of trade fixtures (such as removable showcases), maintenance (such as painting), or repairs to 

a building are not improvements. 

Individual Ready Reserve 

Includes all members of the Ready Reserve not in the Selected Reserve. Members in the Individual Ready Reserve are 

not required to perform scheduled training but are required to report for muster annually. 

Information technology 

Any equipment or interconnected system or subsystem of equipment, that is used in the automatic acquisition, storage, 

manipulation, management, movement, control, display, switching, interchange, transmission, or reception of data or 

information by the executive agency. Equipment is used by an executive agency if the equipment is used directly or is 

used by a contractor under a contract with the executive agency, which requires the use of such equipment, or requires 

the use, to a significant extent, of such equipment in the performance of a service or the furnishing of a product. 

Includes computers, ancillary equipment, software, firmware, and similar procedures, services (including support 


services), and related resources. Notwithstanding the above, the term “information technology” does not include any 

equipment that is acquired by a Federal contractor incidental to a Federal contract. 

Installation commander 

Refers to the commander of an installation or military community. 

Installation Management Command (IMCOM) 

A Direct Reporting Unit of the ACSIM, established with six IMCOM Regions. The IMCOM manages Army installations 

worldwide to support mission readiness and execution; funds garrison; enables the well-being of Soldiers, 

civilians, and Family members; improves infrastructure and preserves the environment; and serves as Executive 

Secretary for Installation Management Board of Directors. 

Inventory 

Goods or merchandise on hand for resale; individual items of property for which the NAFI is accountable; the sum 

total of all property owned or controlled by the NAFI. When used as a verb, refers to the periodic physical count and 

records reconciliation required in the control of NAFI property resources. 

Investigating officer 

Appointed by the approving authority. For NAF property, the investigating officer may be civilian (APF or NAF) or 

military, and is appointed under the provisions of AR 735–5 or where applicable under AR 15–6. 

Joint NAFI 

NAFI established by agreement between the SecArmy and the Secretaries of other MILDEPs in which each department 

shares in the NAFI’s financial support, management policies, and total operation. 

Key control custodian 

Individual officially designated to control, safeguard, and secure keys to machines and stands. 

Locally generated income 

Income to a NAFI generated from the sale of goods and services, and the collection of fees. 

Long-term liabilities 

Obligations that will not come due within a year. 

Loss 

An actual reduction in the value of property or net worth through physical damage or destruction, disappearance, theft, 

or robbery; or the legal determination of liability to pay. 

Maintenance 

Work required to preserve and maintain a real property facility in such condition that it may be used effectively for its 

designated functional purpose. Maintenance includes work done to prevent damage, which would be more costly to 

restore than to prevent. Maintenance includes work to sustain components. Examples include renewal of disposable 

filters, painting, caulking, refastening loose siding, and sealing bituminous pavements. 

Major Army command (MACOM) 

A command directly subordinate to, established by authority of, and specifically designated by Headquarters, Department 

of the Army. Army component commands of unified and specified commands are major Army commands. 

Major construction 

All NAF-funded real property sustainment, renovation, and modernization and construction projects costing over $750, 

000; all APF-funded projects costing $1 million or more. 

Malt beverage 

An alcoholic beverage obtained by fermentation of a malted cereal, with or without adding other starchy material. Malt 

beverages include beer, ale, and malt liquor. 

Manager 

An individual who has responsibility for a program, subprogram, or facility connected with the MWR program. Also 

includes key personnel in Financial Management and Services elements of MWR programs. 


239

Managerial functions 

Planning, organizing, directing, coordinating, and controlling individual MWR program functions/activities/facilities at 

a level below that of direct command or supervisory management. Normally includes responsibility for developing and 

submitting input to those in a position of direct command or supervisory management. Examples of managerial 

positions are club, riding stable, and child support facility manager; physical activity and child support service 

coordinator; arts and crafts, music and theatre, recreation center, child and youth services, sports, outdoor recreation, 

and library activity director. 

Military banking facility 

A banking office located on an Army installation and operated by a banking institution that is designated by the 

Treasury Department as a depository and financial agent of the U.S. Government and is authorized to provide 

commercial banking services to the military installation or community. 

Military community 

Includes U.S. military and Family members and DOD civilian population working and assigned to military installations. 

Also includes retired military and other authorized patrons identified in chapter 7. 

Military construction 

The program under which Army facilities are planned, programmed, designed, budgeted, constructed, and disposed of 

during peacetime and under mobilization conditions. The program also includes the acquisition of real estate and other 

supporting activities (see 10 USC 2801). 

Military liaison teams 

A generic term to describe DOD personnel serving in certain foreign countries (former Eastern bloc countries) with the 

mission of familiarizing host nation militaries with Western democratic practices. Also included in this term are 

technical assistance teams assigned to Embassies in support of a Unified Combatant Command mission. 

Minor construction 

Any NAF construction project costing between $200,000 and $750,000; any APF construction project costing $750,000 

to $1 million. 

Modernization 

The alteration or replacement of facilities solely to implement new or higher standards, to accommodate new functions, 

or to replace building components that typically last more than 50 years (such as the framework or foundation). 

MWR programs 

Programs (exclusive of private organizations) on military installations or on property controlled (by lease or other 

means) by a MILDEP or furnished by a DOD contractor that provide for the esprit de corps, comfort, pleasure, 

contentment, as well as mental and physical productivity of authorized DOD personnel. They include recreational and 

leisure-time programs, self-development programs, resale merchandise and services, or general welfare programs 

outlined in this regulation. 

MWR program or activity manager 

A supervisory person responsible for a MWR programs or grouping of activities, to include planning, execution, review 

and analysis, and the integration and use of APF and NAF resources made available therefor. 

MWR facility 

A building, structure, land area, or other real property used primarily for MWR purposes. 

NAF assets 

Includes cash, securities, property, and any other items of value held by or on the property records of a NAFI. 

NAF council 

A representative body of active duty Soldiers or civilian employees appointed or elected to assist in the management of 

the NAFI and represent MWR program patron interests. 

a. Governing council. A decisionmaking body that exercises general supervision for the commander and directs 

specific actions in the management of the NAFI. 

b. Nongoverning council. A review body that recommends and reports to the garrison commander on general or 

specific matters concerning the management of the NAFI/entity. Retired and Family members may sit on NAF 

nongoverning councils. 


NAFI representative 

An employee of the NAFI who participates in the cash collection or maintenance process. 

Nonappropriated fund instrumentality 

A U.S. Government organization and fiscal entity that performs essential Government functions. It is not a Federal 

Agency. It acts in its own name to provide, or assist other DOD organizations in providing MWR and other programs 

for military personnel, their Families, and authorized civilians. It is established and maintained individually or jointly 

by two or more DOD components. As a fiscal entity, it maintains custody of and control over its NAFs, equipment, 

facilities, land, and other assets. It is responsible for the prudent administration, safeguarding, preservation, and 

maintenance of those APF resources made available to carry out its function. With its NAFs, it contributes to the 

MWR programs of other authorized organizational entities, when so authorized. It is not incorporated under the laws of 

any State or the District of Columbia, but has the legal status of an instrumentality of the United States. NAFIs are not 

“persons” subject to federal trade and antitrust laws, and they are not subject to State regulation or control in the 

absence of specific authorization in a Federal statute. 

Nonappropriated fund property 

Property procured by, transferred, or donated to a NAFI and carried on NAF property records. 

Nonappropriated funds 

Cash and other assets derived from sources other than Congressional appropriations, primarily the sale of goods and 

services to DOD personnel and their Family members that are used by the NAFI to support or provide authorized 

programs. NAFs are Government funds used for the collective benefit of those who generate them. These funds are 

separate and apart from funds that are recorded in the books of the Treasurer of the United States. 

Packaged beverage sales 

Sale of alcoholic beverages in unopened containers for consumption at a location other than the place of sale. 

Parachute demonstration 

A parachute exercise designed to demonstrate proficiency and to support community relations or recruiting activities. 

Parachute exercise 

An authorized sport parachute jump, demonstration, or competition. 

Pecuniary liability 

The legal obligation of an accountable or responsible person to pay for the loss, damage to, or destruction of 

Government or NAF property due to personal negligence or misconduct, as determined by formal or informal 

investigation. 

Personal property 

Property of any kind or any interest therein, except real property and records of the Federal Government. 

Port of debarkation 

Authorized point of offloading from a vessel of U.S. and foreign goods. 

Port of embarkation 

Authorized point of loading onto a vessel of U.S. and foreign goods and services. 

Premium 

Any items with a value of less than $20.00 provided without charge to advertise an activity, product, service, or event 

or to serve as an inducement to buy. 

Preventive maintenance 

Routine, recurring work performed on all real property facilities. Includes systematic inspection, care, and servicing of 

equipment, utility plants and systems, buildings, structures, and grounds facilities for detecting and correcting incipient 

failures and accomplishing minor maintenance. 

Private organization 

Self-sustaining and non-Federal entities, incorporated or unincorporated, which are operated on DOD installations with 

the written consent of the garrison commander or higher authority, by individuals acting exclusively outside the scope 

of any official capacity as officers, employees, or agents of the Federal Government. 


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Project approval 

Conceptual and engineering approval of facility improvement projects. Accomplished by IMCOM Regions for projects 

up to $750,000 and by FMWRC for projects over $750,000. Project approval indicates that the project has been 

reviewed and approved for feasibility, need, and compliance with design and space requirements. It is not authority to 

expend funds, although project and budget approvals may occur simultaneously. 

Property 

Any tangible object that has value. 

Quality of Life 

The creation of an environment wherein programs, products, and services satisfy the fundamental physical, emotional, 

and growth needs of Soldiers, civilians, and their Families, thereby fostering readiness and retention. 

Ready Reserve 

Comprises military members of the Army National Guard of the United States and USAR, organized in units or as 

individuals, and liable for order to active duty in time of war or national emergency (10 USC chapter 1005). The 

Ready Reserve consists of three subcategories: Selected Reserve, Individual Ready Reserve, and Inactive National 

Guard. 

Real property 

Lands and improvements to land, buildings, and facilities, including improvements and additions, and utilities systems. 

It includes equipment affixed and built into the facility as an integral part of the facility (such as heating systems), but 

not movable equipment (such as plant equipment). Real property is divided into the four basic classes for accounting 

purposes. They include land; improvements to land; buildings and facilities (including installed building equipment); 

and utility distribution and sanitary systems. 

Recreation machine 

Electronic machine that accepts monetary payment for game play and provides for monetary payment of winning 

combinations. 

Recreation machine change fund 

Recommended amount of coins to be maintained by the NAFI facility to ensure availability of coins for pay by 

patrons. 

Regular employee 

Serves in a continuing position on a scheduled basis. Further categorized as regular full-time if the workweek is 40 

hours; or, regular part-time if the workweek is from 20 to 39 hours. The minimum workweek for a regular part-time 

employee is 20 hours. 

Replacement cost 

The cost of repairing or replacing lost, damaged, or destroyed property. 

Resale 

Items of merchandise and/or services provided by MWR programs or concessionaires for sale to eligible patrons. 

Resale merchandise and services must be related to the purpose of the MWR program. With approval from AAFES, 

resale merchandise and services, listed in AR 60–20, may be provided by MWR programs. Specifically excluded from 

this definition are user fees, interest, and other sources of income not directly related to the sale or resale of 

merchandise and/or services. 

Reserve Component 

Consists of the USAR and the ARNG. 

Restoration 

The repair or replacement work to restore facilities damaged by inadequate sustainment, excessive age, natural disaster, 

fire, accident, or other causes to a condition so that it can be used for its designated purpose. 

Retired military personnel 

Includes all persons on the official retired lists of the uniformed Services who are retired with pay, granted retirement 

pay for physical disability, or entitled to retirement pay whether or not such pay is waived. Also includes members of 

the Retired Reserve not receiving pay but who have met the Service requirement for receipt of retired pay at age 60 


(known as “gray” area retirees) and persons on the emergency officers’ retired lists of the Army, Navy, Air Force, and 

Marine Corps who are retired under 38 USC 106 and 909. 

Scheduled maintenance 

Systematic and periodic servicing and inspection of equipment and components to maintain operational efficiency and 

replace worn or failed parts. Scope and frequency of service should be based upon engineering judgment and past 

repair history with the objective of providing the most economical mix of preventive care, routine maintenance, and 

breakdown maintenance. 

Security assistance organization 

A DOD organization located overseas with assigned responsibilities for carrying out security assistance management 

functions. “Security assistance organization” is a generic term for organizations with various titles such as United 

States Military Group, Office of Defense Cooperation, Military Liaison Office, Joint United States Military Assistance 

Group, and Office of Military Cooperation. Security assistance organizations are assigned to U.S. Diplomatic Missions, 

under the direction and supervision of the Chief of Mission/Ambassador. Security assistance organizations also perform 

DOD missions such as armaments cooperation, exercise support, and theater engagement activities, in addition to their 

security assistance program management functions. The Secretary or Deputy Secretary of Defense may direct the 

assignment or attachment of other military detachments or elements to a security assistance organization (DODD 5132. 

12). 

Selected Reserve 

Consists of those units and individuals in the Ready Reserve, designated as so essential to the initial wartime missions 

that they have priority over all other Reserves. The Selected Reserve includes officers, warrant officers, and enlisted 

soldiers who are members of the Army National Guard of the United States, assigned to troop program units of the 

Army Reserve, serving on active duty (10 USC 12301(d)) or full-time duty (32 USC 502(f)) in an Active Guard 

Reserve status, and Individual Mobilization Augmentees. 

Shipping container 

A commercial- or Government-owned container that is used to hold cargo being shipped by ocean transportation, and 

capable of being lifted on and off of ships. Also known as a SEAVAN. 

Single fund 

A NAFI established for the purpose of providing installation and community MWR programs including food and 

beverage, retail, recreation, MWR recreational lodging, and community support services as outlined in this regulation. 

Special duty 

The performance of duty with an organization other than the unit to which assigned, while continuing to be 

administered and accounted for by the unit of assignment. Includes borrowed military manpower and troop diversion. 

Sponsor 

Primary person authorized to use an MWR program. A sponsor is normally the adult Family member who is also a 

service member. 

Sport parachute jumpmaster 

A person authorized by an installation commander to supervise jumps by sport parachutists. 

Stand 

A standard base for a recreation machine that contains the cash (drop) box. 

Standard NAFI number 

Alphanumeric code number assigned by FMWRC that uniquely and exclusively identifies the garrison, military 

community, or other location, type of fund, and other coded information. 

Static line jump 

A parachute jump in which the parachute is deployed by a static line attached to the aircraft. 

Status of Forces Agreement (SOFA) 

An agreement that defines the legal position of a visiting military force deployed in the territory of a friendly state. 

Agreements delineating the status of visiting forces may be bilateral or multilateral. Provisions pertaining to the status 

of visiting forces may be set forth in a separate agreement, or they may form a part of a more comprehensive 

agreement. These provisions describe how the authorities of a visiting force may control members of that force and the 


243

amenability of the force or its members to the local law or to the authority of local officials. To the extent that 

agreements delineate matters affecting the relations between a military force and civilian authorities and population, 

they may be considered as civil affairs agreements. 

Successor (or successor in interest) NAFI 

A NAFI designated by FMWRC to provide financial support and assistance to specified or assigned NAFIs, as 

required; receive and redistribute excess assets of its assigned NAFIs; and receive or distribute residual assets or 

assume residual liabilities of dissolved or disestablished NAFIs. 

Supplemental mission funds 

Nonappropriated funds generated from the operation of specific and unique situations that occur in support of an APF 

mission program. They include such funds as veterinary service funds, USMA athletic association funds, museum 

funds, Army Lodging funds. 

Surviving Family members 

Family members of a service member who died while on active duty or while in a retired status, who are dependent on 

the surviving spouse for over half their support. 

Surviving spouse 

A widow or widower who has not remarried or who, if remarried, has reverted through divorce, annulment, or the 

demise of the spouse, to an unremarried status. 

Sustainment 

Includes the maintenance and repair portion of SRM necessary to keep an inventory of facilities in good working order. 

It includes the regularly scheduled adjustments and inspections, preventative maintenance tasks, and emergency 

response and service calls for minor repairs. It also includes major repairs or replacement of facility components 

(usually accomplished by contract) that are expected to occur periodically throughout the life cycle of facilities. This 

work includes regular roof replacement, refinishing of all surfaces, repairing and replacement of heating and cooling 

systems, replacing tile and carpeting, and similar types of work. It does not include environmental compliance costs, 

facility leases, or other tasks associated with facilities operation (such as custodian services, grounds services, waste 

disposal, and the provision of central utilities). 

Sustainment, restoration, and modernization (SRM) 

Applies to all real property regardless of appropriation. Generally, it replaces “real property maintenance, which 

normally only referred to work performed on real property using operations and maintenance funds. Sustainment 

maintains facilities in the current condition and includes regularly scheduled adjustment and inspections, preventative 

maintenance tasks, and emergency response for minor repair. It also includes major repairs or replacement of facility 

components that are expected to occur periodically throughout the life cycle of facilities (for example, roofs, hearing/ 

cooling systems, and so on). Restoration and modernization improve facilities and are accomplished primarily with 

military construction but can be done with operations and maintenance funding, depending on the amount of new 

construction work in the project (note: current work classification and funding constraints still apply). Restoration 

improves existing facilities to current standards while modernization adapts existing facilities to meet new standards, 

which support new missions or equipment. 

Technical assistance field training personnel 

A generic term used to refer to any DOD element deployed overseas in support of a Foreign Military Sales case. DOD 

elements include English Language Training Detachments and Extended Training Service Specialists. Security assistance 

organization chiefs supervise all security assistance teams. 

Tenant unit 

A military organization located at an installation assigned to and operated by a different MILDEP, or an organization 

located at an Army installation but assigned to a major Army command other than the one exercising command of the 

installation. 

Troop diversion 

Use of Soldiers, other than borrowed military manpower, to perform recurring duties with an organization or unit other 

than that to which assigned, while continuing to be administered and accounted for by the unit of assignment. See also 

special duty and borrowed military manpower. 

Uniformed personnel 

Members of the Army, Navy, Air Force, Marine Corps, and Coast Guard; Cadets and Midshipmen of the United States 


Military, Naval, Air Force, and Coast Guard academies; commissioned officers, ship’s officers, and members of the 

crews of vessels of the National Oceanic and Atmospheric Administration; commissioned officers of the Public Health 

Service; members of the Reserve Component while on extended active duty or annual training. 

Uniformed services 

Unless otherwise qualified, the Army, Navy, Air Force, Marine Corps, and U.S. Coast Guard; commissioned officers of 

the Public Health Service; active duty and retired commissioned officers; and members of the crews of vessels of the 

National Oceanic and Atmospheric Administration and its predecessors (the Coast and Geodetic Survey and the 

Environmental Science Services Administration). 

United States Territories and Possessions. 

Includes Guam, the Commonwealth of Puerto Rico, the American Virgin Islands, American Samoa, and the Commonwealth 

of the Northern Mariana Islands. 

Unoccupied 

A building that contains its authorized furniture, fixtures, or stock but is otherwise unused. 

U.S. citizen 

One who, under the Constitution and laws of the United States, or of a particular State, is a member of the political 

community, owing allegiance and being entitled to the enjoyment of full civil rights. Citizenship is acquired by birth in 

the United States, by birth in U.S. territories, by birth outside the United States to U.S. parents, and by naturalization. 

U.S. Parachute Association (USPA) safety officer 

An official appointed by the USPA area safety officer to be responsible for safety in a specific parachute activity. 

Vending machine. 

A coin or currency operated machine which accepts cash and dispenses articles or services, except that machines 

providing services of a recreational nature, commonly referred to as amusement or gaming machines (jukeboxes, 

pinball machines, electronic game machines, pool tables, shuffle boards) as described in paragraph 8–8 of this 

regulation, and telephones are not considered vending machines. 

Ward 

A child, other than the sponsor’s, or adult who resides in the sponsor’s home and whose care has been entrusted to the 

sponsor by a court, or voluntarily assumed by the sponsor, because of age or a physical, mental, or emotional 

disability. 

Watercraft 

Recreational boats owned and operated by a NAFI. 

Water terminal clearance authority 

An activity that controls and monitors the flow of cargo into ocean terminals. Also called release authority. 

Well being 

The personal–physical, material, mental, and spiritual–state of Soldiers, retirees, veterans, civilian employees, and their 

Families that contributes to their preparedness to perform the Army’s mission. Encompasses and expands on the 

concept of “quality of life.” 

Wind drift indicator 

A device used to determine wind drift data without use of a human parachutist. 

Within the United States 

Includes the 48 CONUS states, Alaska and Hawaii; Puerto Rico, and other territories of the United States, having U.S. 

citizenship and delegates representing the territories in Congress. All other areas are considered outside the United 

States or foreign countries. 

Witness 

A MWR patron who attests to the validity of ARMP information collected by the cash collection team. 

Section III 

Special Abbreviations and Terms 

This section contains no entries. 


245

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AR 215-1 - Soldier Support Institute - U.S. Army

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