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

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.
AR 215–1 • 31 July 2007
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