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DEPARTMENT OF THE ARMY FAMILY AND MORALE, WELFARE AND RECREATION COMMAND US ARMY INSTALLATION MANAGEMENT COMMAND 4700 KING STREET ALEXANDRIA VA 22302-4406 S: 8 Sep 2008 IMWR-FMC 24 June 2008 MEMORANDUM FOR SEE DISTRIBUTION SUBJECT: Fiscal Year 2009 (FY 09) Nonappropriated Fund Instrumentalities (NAFIs) Financial Management Operating Guidance 1. References are listed at enclosure 1. 2. This memorandum applies to all Army Nonappropriated Fund Instrumentalities (NAFIs) as to the format and content of the budget submission packages, except Chaplain Funds, Armed Forces Recreation Centers (AFRCs), and Stars & Stripes. However, note that some of the information in the FY 09 Program Operating Guidance at enclosure 5 is applicable to any NAFI as it regards information on insurance rates, payroll charges, and employee benefits. Additionally, other enclosures are an excellent resource for financial management memoranda, regulatory references, the chart of accounts, etc. The Army Civilian Welfare Fund (ACWF) FY 09 financial management, operating and budget guidance is provided at enclosure 13. 3. The region and separate NAFI budget packages, for those NAFIs classified as MWR �Fund 1� and Supplemental Mission Funds are due at The Family and Morale, Welfare, and Recreation Command (FMWRC) no later than 8 Sep 08 so relevant data may be compiled as necessary for the Uniform Funding Management (UFM) Memorandum of Agreement, and so that pertinent data may be available to meet Board of Directors (BOD) requirements. Specific instructions for the preparation and submission of budget packages for Morale, Welfare, and Recreation (MWR), Supplemental Mission, and Lodging NAFIs are provided at enclosure 11. Army Lodging Funds (ALFs) suspense dates for budget submission are at paragraph 5 of Printed on enclosure 11. Budget packages for Post Restaurants and ACWF are due at ACWF no later than 1 Sep 08. Specific instructions for preparation and submission of Post Restaurant and ACWF budget packages are at enclosure 13. 4. This guidance reflects initiatives approved by the Commander, Installation Management Command (IMCOM), and endorsed by the Soldier and Family Review (SFR) BOD. The initiatives impacting FY 09 MWR and Lodging budget preparation are: a. The NAF Major Construction Financing Strategy requires IMCOM MWR NAFIs at the total level to generate a net income after depreciation of three percent of net revenue. At its Feb 08 meeting, the financial subcommittee recommended this requirement be met by annual negotiation between the regions rather than each region being required to meet the three percent standard. This recommendation was accepted by the SFR BOD. The dollar amounts pledged by each region will be finalized this month. b. The Capital Reinvestment Assessment (CRA) for AFRCs is reinstituted in FY 09 at a rate of three percent of net revenue. c. In support of enterprise purchasing, garrisons are required to submit advance information on FY 09 capital purchase items through the Region Army Lodging Program Manager to IMWR-HPC, not later than 13 Jul 08. d. The FY09 Financial Standards for the Golf and Category C Bowling Programs at the region level is 15 percent Net Income Before Depreciation, per Business Programs Corporate Strategy and Performance Improvement Plan, 18 Apr 08. e. Threshold change for FY 09 inclusion in Performance Improvement Program (PIP): IMCOM Policy Memorandum Number 42, MWR Category C Business Performance Improvement Program, 30 Nov 04, states operations are placed in the program when earning less than $0 (fail to break-even) over four quarters, based on a semi-annual review. The new thresholds for being placed in the IMCOM PIP for four consecutive quarters are: � FY 09 � Operations earning less than $0 NIBD � FY 10 � Business Program Steering Committee recommends stabilizing at $0 NIBD for FY 10 and beyond 5. All budgets for MWR field operating NAFIs, Army Lodging, post restaurants and civilian welfare funds are to be prepared using the Financial Management Budget System (FMBS). 6. Other guidance is provided as follows: a. Supplemental budget guidance may be issued by regions to allow for specific regional concerns, e.g., currency fluctuations, cash flow concerns, etc. Copies of any supplemental guidance issued must be provided to HQ, IMCOM and FMWRC. b. Separate Commanders� Mission Box Standards for Regions and Garrisons are at enclosure 4. (1) Region level standards are established by the SFR BOD. (2) Garrison level standards: (a) Garrison MWR standards continue to be established by the region through the budget approval process. (b) The garrison Army Lodging standards, for the most part, continue to be established through the region budget approval process to include the standards for average daily rate and NIBD for occupied room. However, the occupancy standard (established in FY 05) includes both a budget variance and a minimum actual measurement. c. Detailed instructions on contracting requirements, maintenance and repairs, and logistical support for centralized purchases of cardiovascular exercise equipment and golf cars are included in enclosure 5. d. Pertinent FMWRC financial management memoranda are listed at enclosure 2. e. Applicable Defense Finance and Accounting Services (DFAS) accounting policy memoranda are listed at enclosure 3. f. A table of new General Ledger Account Codes (GLACs) are contained in paragraph 20, enclosure 5. g. Detailed information and program guidance for operating and support programs is provided at enclosure 5. Noteworthy guidance is: (1) The Army Banking and Investment Fund (ABIF) anticipated interest rates for FY 09 are computed on the expected average cash balances. A rate of three percent interest is applicable for FY 09 for cash invested in the ABIF by all NAFIs. (2) Employee Benefits: Refer to paragraph 3 of enclosure 5 for pertinent information on Employee Benefits Programs. There are no changes from FY 08 for employer contributions to any of the plans nor is there a change for the required employer payment for employees approved to retire under voluntary early retirement/discontinued service retirement (VERA/DSR) circumstances. (3) Risk Insurance rates for FY 09 for the most part remain unchanged from the FY 08 rates. However, vehicle tort rates will decrease by $25.00 per vehicle; aircraft tort for a two seat will increase by $310.00; aircraft tort for a four seat will increase by $446.00 and workers compensation costs for the U.S. and Puerto Rico will decrease by $0.75 per $100.00 payroll. Please refer to paragraph 2 of enclosure for further information. (4) Overhead costs should be maintained at the same dollar level in FY 09 as that incurred in FY 08. Please refer to paragraph 21 of enclosure 5 for further information. h. A complete listing of all valid program, department, and GLACs are located at enclosure 12. 7. It should be noted that as cost culture is implemented it may be necessary to revise the operating plans developed in accordance with this guidance. 8. The MWR NAFI point of contact is Christine French, DSN 761-7298, COM (703) 681-7298, or e-mail: [email protected] The ALF point of contact is Donna Joray, DSN 761-3771 or COM (703) 681-3771, e-mail: [email protected] The Post Restaurant and Civilian Welfare NAFI point of contact is Bob Maze, DSN 332-0596, COM (703) 602-0596 or e-mail: [email protected] 9. This FY 09 Financial Management Operating Guidance and all enclosures thereto may be accessed on the Worldwide Web Army MWR Homepage at http://www.ArmyMWR.org, Financial Management, Documents, and Operating Guidance. FOR THE COMMANDER: //SIGNED// 13 Encls JEFFERY A. GIBERT 1-6. as Chief Financial Management Officer 7. Matrices 8-13. as DISTRIBUTION: COMMANDING GENERAL, INSTALLATION MANAGEMENT COMMAND (IMDC) DIRECTOR: NORTHEAST REGION (IMNE) SOUTHEAST REGION (IMSE) WEST REGION (IMWE) EUROPE REGION (IMEU) PACIFIC REGION (IMPC) KOREA REGION (IMKO) DEFENSE LOGISTICS AGENCY (DLA-D) CF: HQDA (DASG-VC) HQDA (SAFM-RB) HQDA (DAPE-CP-NAF) NAF FINANCIAL SERVICES PENTAGON ATHLETIC CENTER GENERAL MANAGERS: EDELWEISS LODGE AND RESORT DRAGON HILL LODGE HALE KOA HOTEL SHADES OF GREEN ARMY RECREATION MACHINE PROGRAM