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

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.
120 AR 215–1 • 31 July 2007