MEMORANDUM OF ... - Navy Morale_ Welfare and Recreation

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					                         DEPARTMENT OF THE NAVY
                        WASHINGTON, DC 20374-5140

                                                                         Ser N9/

                        MEMORANDUM OF AGREEMENT
                        FLEET & FAMILY READINESS (N9)

Subj: Uniform Funding and Management (UFM) (MW/CD)

Ref: (a) Chapter 147 of Title 10, U.S.C. 2494

1. Purpose. The purpose of this Memorandum of Agreement (MOA) is to set out the provisions
of a cooperative working arrangement between Commander, Navy Installations Command
(CNIC), Comptroller/Chief Resource Officer (CRO) (N8) and Fleet and Family Readiness (FFR)
Director (N9).

2. Background.

        a. Assistant Secretary of Defense (FMP) Memorandum of 23 July 97 established the
Utilization, Support and Accountability (USA) practice effective 1 October 1997. Public Law
107-314, section 323, amended Chapter 1247 of title 10, United States Code, by adding section
2494, UFM of Morale, Welfare and Recreation Programs (MWR).

       b. This statue allows funds appropriated to the Department of Defense (DoD) and
available for MWR programs be treated as nonappropriated funds (NAF) and expended in
accordance with laws applicable to the expenditures of NAF.

       c. The UFM practice is an important and valuable tool in providing flexibility to MWR
Program Managers in maximizing the availability of appropriated and nonappropriated fund
support to the MWR Program and eases the attendant demands on the appropriated fund civilian
personnel and procurement support systems.

3. Scope.

        a. Commander, Navy Installations Command, Fleet and Family Readiness (N9) provides
overall management and execution of Navy-wide MWR activities. Certain costs to provide these
programs are authorized to be funded with appropriated funds and to utilize the UFM practice.

                                                                                TAB M
Subj: Uniform Funding and Management (UFM) (MW)

All other applicable statute, regulations, and policies regarding proper use of appropriated funds

         b. NAF costs to provide this program, above what is already funded with direct
appropriated fund support, are eligible to be funded through the UFM practice as long as other
restrictions regarding appropriate use of funds are satisfied.

       c. These restrictions are outlined in ASN (FM&C) letter of 12 October 2004 and
Department of Navy Financial Management Policy Manual (DON FMPM formerly
NAVCOMPT Manual Volume 7), Part E and Public Law 107-314, Section 323 enclosure (1)
Sec. 2494.

4. Responsibilities.

       a. Appropriated funds must be obligated prior to the MW program incurring an expense.
Payments under this agreement are categorized as Other Purchased Services however, Fleet and
Family Service Centers are required to maintain a detail of the execution of UFM funds which is
necessary for budgets, accounting records, and financial reports.

        b. Accordingly, the invoices will include both expense element detail as well as the MW
program in which the cost was incurred. Navy MWR Central Fund Accounting System (CFAS)
will have detailed backup on actual expenses. Prompt payment shall be made in accordance with
the established disbursing procedures and the Prompt Payment Act.

       c. Subject to availability, the following appropriated funds will be provided to N9 for
execution through the UFM program during FY12. In order to ensure more efficient funds
execution and usage, CNIC N8 plans to issue funding for the first three quarters up front in FY12
and out years. Any change in budgeted funds will be reflected in a subsequent MOA. Funds
provided for the UFM Program will be reflected in OP-34 budget exhibits in accordance with
OSD and ASN (FM&C) guidance.

5. Billable Expense Controls.

       a. Labor , supplies, equipment, travel and contract costs that directly support the MWR
mission are authorized to be funded through the UFM practice if not funded with direct
appropriated fund support.

       b. NAF must be used to cover expenses prohibited for appropriated funds, such as
expenses relating to cost of goods sold, depreciation, entertainment, advertising and promotion,
awards and prizes, loss on disposition of fixed assets.

        c. This MOA will not be used to circumvent either existing procurement rules and
regulations or statutory regulations regarding proper use of appropriated funds.

                                                 2                                 TAB M
Subj: Uniform Funding and Management (UFM) (MW/CD)

        d. The FY12 appropriated fund and non-appropriated fund budgets were predicated on
not to exceed $XX,XXX in labor and other expenses being funded in support of Special Interest
Items (SII) MW/CD (this includes EC).

6. Effective Date/Period. This MOA is effective upon signature of both parties and shall remain
in effect until expiration, modification or cancellation by mutual consent of both parties.

AUTHORIZED SIGNATURE                Date           AUTHORIZED SIGNATURE                   Date

                                               3                                TAB M

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