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					                     FY 11 PROGRAM OPERATING GUIDANCE


1. ARMY BANKING AND INVESTMENT FUND (ABIF): (POC is Clint Lilley,
IMWR-FMB, DSN 761-7297 or COM (703) 681-7297, e-mail: clinton.lilley@us.army.mil)

   a. An interest rate of 2.10 percent is projected for cash invested in the ABIF for
FY11. Interest paid on accounts reflects yields available in the investment market and
is net of ABIF expenses. The ABIF is invested in U.S. Treasury and agency securities.

    b. The ABIF portfolio interest earned on the Army Lodging Operating Single Fund
(consolidated field lodging fund) account is paid directly to the Army Lodging Fund
(ALF).


2. RIMP INSURANCE RATES: (POC is Tom Kelley, IMWR-FMI, DSN 761-7308 or
COM 703-681-7308, email: Thomas.C.Kelley@us.army.mil)

                        RIMP FY 2011 INSURANCE RATES

Buildings                  Per $100 value                          0.17

Contents                    Per $100 value                         0.22

Vehicles                    Per $100 value                         0.40

Aircraft                    Per $100 value                         9.50

Fidelity Bond               Per employee
                            Class I                                3.00
                            Class II                               2.00

Money & Securities          Per employee                           1.60

General Tort                Per employee                           7.00

Vehicle Tort                Per vehicle                          30.00

Family Child Care           Per provider                         50.00

Aircraft Tort               2 seat                            6,242.00
                            4 seat                            9,811.00

Parachute Activities        Per activity                        900.00


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                     FY 11 PROGRAM OPERATING GUIDANCE



Cargo                        Per $100 value                           0.25

Unemployment Compensation Percentage of payroll                       0.45

Workers’ Compensation         Per $100 payroll
                              U.S. and Puerto Rico                    2.00
                              Overseas                                0.80


3. EMPLOYEE BENEFITS: (POC is Ronald Courtney, IMWR-HRB, DSN 761-7260 or
COM (703) 681-7260, e-mail: Ronald.R.Courtney@us.army.mil.) NAF Employee
Benefits may be accessed on the World Wide Web at http://www.nafbenefits.com.

   a. USA NAF RETIREMENT PLAN:

       (1) The FY11 employer contribution to the Retirement Trust, currently 7% of
salary, will be based on the annual actuarial valuation as of 1 October 2009. The
employee contribution will remain at 2% of pensionable wage in accordance with the
Retirement Plan provisions. Newly hired regular employees will be automatically
enrolled in the NAF Employee Retirement Plan for their first six months of service. After
completing six months of service, those employees may exercise their option of
remaining in the plan or withdrawing. They will be required to elect withdrawal in writing
on DA Form 3473. Those who elect to withdraw may request a refund of their
contributions with three percent interest, only upon separation. The employer
contribution will remain in the Retirement Trust.

       (2) VOLUNTARY EARLY RETIREMENT/DISCONTINUED SERVICE
RETIREMENT (VERA/DSR) FUNDING REQUIREMENTS: Installations and activities
having NAF employees who retire under VERA/DSR conditions will be required to make
a deposit to the Army NAF Retirement Fund for each eligible individual. The required
deposit during FY11 will be $92,000, based on the results of the annual actuarial
valuation as of 1 October 2009. The required funds will be transferred from the
employing fund, as appropriate, to the Retirement Fund by IMWR-FM upon notification
from IMWR-HRB that the individual's DSR/VERA retirement transaction has been
processed and is effective.

   b. POST RETIREMENT MEDICAL (PRM): The NAF PRM liability will continue to
be funded by a 2.8 percent surcharge on total payroll, based on the FY 09 actuarial
valuation of the PRM Trust. Total payroll will be calculated as the sum of GLACs 601,
609, 617, and 621 for all employees in all categories. The payroll surcharge will be

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collected monthly by NAF Financial Services, DFAS, and credited to the Army Medical
Life Fund (AMLF) for deposit to the PRM Trust.

   c. 401(k) SAVINGS PLAN: There will be no change to the 0.1 percent surcharge on
covered payroll for FY 11. The maximum employee deferral for calendar year 2010 is
$16,500; $22,000 for participants who achieve age 50 in the calendar year. The
maximum deferral for calendar year 2011 will be published when it is announced by the
IRS. There is no change in the employer match. The over age 50 deferral amount will
not affect the employer match, since the match is limited to 3% of salary.

   d. LIFE INSURANCE: The life insurance rates for FY 11 will remain at 14 cents per
thousand dollars of basic life insurance coverage per pay period for both the employee
and employer. Premiums for optional coverages are paid wholly by the employee and
have no effect on employer contributions.

    e. DOD NAF HEALTH BENEFIT PLAN (DODHBP): The DODHBP premiums will
remain at the current rate through the end of calendar year 2010. Premiums for
calendar year 2011 will be based on claims experience during calendar year 2010 and
medical, dental and pharmaceutical industry cost trends. Industry trends continue to
indicate steadily increasing health care costs. Although our health plans have had
favorable experience over the past few years with premium increases substantially
below medical trend, there is no guarantee that will continue. Additionally, it is unknown
at this point what effect the pending Health Care Reform legislation will have on the
NAF Health Benefit Plan. For the purpose of budgeting this expense, anticipate an
increase of approximately 8 -12% over calendar 2010 rates for the DODHBP. Rates for
the Health Maintenance Organizations (HMOs), where applicable, are anticipated to
increase between 10 and 20%. The employer/employee contribution ratio remains at
70/30 for both the DODHBP and the HMOs, as well as for dental coverage. There are
no negotiated union agreements in effect that would affect this ratio. Future negotiated
agreements for a different employee/employer contribution ratio are prohibited.
Premiums for the Stand Alone Dental Plan are paid solely by the employee and have no
effect on budgeting.

   f. FLEXIBLE SPENDING ACCOUNTS (FSA): The Flexible Spending Account
Benefits Program, which was implemented in CY 2010, will continue in CY 2011.
Flexible Spending Accounts allow participating employees to set aside a portion of their
salary on a pre-tax basis, which will be deposited into FSA accounts for payment of
health care costs not covered by their health insurance plan or for costs associated with
dependent care. The cost to the employer will be $2.50 for each participant per pay
period. However, this cost will be offset by the pretax nature of the employee
contribution, because the employer will avoid the 7.65% FICA/Medicare employer wage

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tax on the total amount of the pretax contribution. In most cases, this will result in a net
gain to the employer, as well as the employee.


4. PAYROLL SERVICE CHARGES: (POC is Julie May, NFS, DSN 829-3214 or
COM (903) 334-3214.) Payroll rates for FY 10 are as follows:

    Time & Attendance Submission                                 $2.00
    Computation of Manual Payment                               $75.00
    Preparation of Corrected Form W-2                           $50.00


5. MANAGEMENT INFORMATION SYSTEMS: (POC is Richard Dey, IMWR-IMM,
COM (703) 325-6571, e-mail: Richard.Dey@us.army.mil.)

    a. Time, Labor Management System (TLMS): The annual maintenance costs will be
billed to FMWRC each quarter. The bill will be paid centrally by FMWRC initially; then
each garrison scheduled for renewal, in that quarter, will receive an invoice for their
specific costs. Garrisons should budget an amount equal to the invoice they received in
FY 10 for their maintenance costs. The MWR Configuration Control Board has made
the new time clocks standard. The deadline for all Garrisons to have purchased the
required clocks was the end of FY 04. Garrisons will still be able to purchase the clock
configuration best suited for them for about $1700. Purchase the clocks from the
Indefinite Delivery/Indefinite Quantity (IDIQ) contract managed by FMWRC-NC. Clocks
are not part of the centrally managed life cycle and purchase is the responsibility of the
garrison. Those garrisons choosing to implement Version 550 of TLMS are responsible
for the purchase of the SQL software and user licenses. The annual maintenance fees
for clocks are set by Ceridian (first year is warranty). The IDIQ contract has additional
services provided by Ceridian. Garrisons should look at these services and take
advantage of those that apply to them. For specific information on your fees contact,
Ms. Nena Albisu IMIM-S, COM (210) 424-8317 or e-mail: nena.albisu@us.army.mil.

   b. Local Area Network Central Control System (LCCS): The LCCS is obsolete and
should be disposed of using local disposal policy.

   c. Training: There will not be scheduled refresher/upgrade training for FMBS in
FY11. Should installations need training they must first coordinate with their respective
regional FMBS expert and if the need is not met, contact Gisela.Darrow@us.army.mil.

  d. RecTrac: Version 10.1 is the standard for FY 11. The IMIM-C Customer Support
Teams are available to train garrison personnel as needed. Contact Mr. Quinlan

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Thigpen, IMIM-C, COM (210) 424-8268, e-mail: quinlan.thigpen@us.army.mil to
establish the training session.

   e. GolfTrac: Version 10.1 is the standard for FY 11. The IMIM-C Customer Support
Teams are available to train garrison personnel as needed. Contact Mr. Quinlan
Thigpen, IMIM-C, COM (210) 424-8268, e-mail: quinlan.thigpen@us.army.mil to
establish the training session.

  f. Child and Youth Management Systems (CYMS): Version 10.1 is the standard.
The IMIM-S Customer Support Teams are available to train garrison personnel as
needed. Contact Ms. Nena Albisu, IMIM-S, COM (210) 424-8317, e-mail:
Nena.Albisu@us.army.mil to establish the training session.

   g. Connectivity: The MIS systems rely on dedicated connectivity and Internet
access. Each garrison must coordinate with their respective Director of Information
Management to ensure that connectivity requirements are identified and prioritized as
part of the Garrison Program Evaluation Group (II PEG) submission.

    h. Life Cycle/Upgrades: Upgrades not included with the MWR MIS sustainment
include Office Automation, E-mail, and Internet access. The central funding and fielding
operations only provides upgrades or life cycle of those items fielded to the installation
by FMWRC in support of the MWR MIS. The life cycle plan does not include any
Garrison purchased systems. Garrisons that plan to expand operations or add new
activities that will include a Point of Service or Check-in station for
RecTrac/GolfTrac/CYMS should contact the Point of Contact listed above. In
accordance with Command, Control, Communications, Computers, and Information
Management (C4IM) Services List lifecycle hardware replacement is a mission funded
requirement. Therefore, all NAFIs to whom this operating guidance is addressed is
responsible for funding life cycle hardware replacement either through MWR APF (UFM
process) or direct APF, as applicable. Each Garrison Information Services Officer
should coordinate with their Director of Information Management (DOIM) to ensure that
their requirements are identified in the installation Information Technology consolidated
buy which happens twice a year. Additionally, funding of at least $2,500 per quarter,
using program code RI-MWR Information Technology Services for the ISO office,
should be established to support automation systems repair. The life cycle/upgrade
representative for Rectrac/Golftrac is Terrence.Chapman@us.army.mil. The life
cycle/upgrade representative for CYMS is nena.albisu@us.army.mil.


6. ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM: (POC is Jeffrey R.
Dalbey, IMWR-FE, COM (703) 325-6566, e-mail: Jeff.Dalbey@us.army.mil)

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Significant strides occurred in FY 09 and have continued in FY 10 to date
in the planning to acquire a NAF ERP system. Project management contract
assistance continued to materially aid the effort. A Comparative Analysis
of Service ERP Systems was conducted. This resulted in shifting away from
the focus to accomplish an adaptation of the General Fund Enterprise
Business System (GFEBS) to accommodate NAF requirements. Based on the
experiences of the Navy Fleet and Family Readiness and Air Forces Services Agency
NAF ERP implementations and policy implications a standalone NAF ERP would best
meet Army requirements. The most recent accomplishment was the preparation
of a comprehensive Business Case Analysis. Next steps include identification of
funding and establishment of a project management office.


7. COMMERCIAL AUDIT COSTS: (POCs are John Habick, IMWR-IR, COM 703-
275-5205, e-mail: john.habick@us.army.mil and Ben Sands, IMWR-FM, COM 703-681-
7305, e-mail: bengamin.f.sands@us.army.mil)

     a) Financial statement audits of the IMCOM Regions and HQ IMCOM MWR funds
for the reporting period ending 30 September 2010 must support the Army's annual
MWR financial and personnel management report to Office of the Secretary of Defense
(OSD) per DoDI 1015.15. Objectives of the audits are to provide an audit opinion on
each NAFI Region's MWR financial statements (not at Garrison or entity level) and to
review the internal control structure IAW the DoDI 1015.15 (25 May 05) and DoDI
7600.6 (16 Jan 04) and AR 215-1, Chapter 18.

    b) Contract audit fees are fixed price at $475,537 for IMCOM HQ MWR Fund and the
regional MWR funds in Europe, Pacific, West, Southeast, and Northeast. The Korea
audit will be executed against the last option year on the current Korea contract. Travel
costs are in addition to the fixed price audit fees and are considered a variable contract
cost. Internal Review offices will assist to expedite the audit process. To achieve
desired cost benefits and audit contract efficiencies, FMWRC NAF Contracting is the
contracting office for the consolidated (by IMCOM region) worldwide contract for these
financial audits. Individual Contracting Officer Representatives have been appointed at
each Region to administer their portion of the contract.

    c) The HQ IMCOM MWR Fund has initially funded the contract for the commercial
audits. However, all costs associated with a Regions’ Funds audit will be charged to
that Region’s Fund. Each Region’s audit is a separate contract line item number (CLIN)
in the audit contract. Costs associated with a specific Region’s audit will be charged to
that Region’s CLIN, and paid from that Region’s account in the Army Banking and
Investment Fund (ABIF) to properly reflect the expense. Costs will be reported in

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                     FY 11 PROGRAM OPERATING GUIDANCE


program code RP (Fund Administration); department GL (APF Support – Normal
Operations); GLAC 738 (Audit Expense).

 8. ARMY SIMPLIFIED DIVIDEND (ASD) DISTRIBUTION COMPUTATION METHOD:
(POC is Barry Shapiro, IMWR-FMM, DSN 761-7311 or COM (703) 681-7311, e-mail:
Barry.Shapiro1@us.army.mil)

The monthly ASD calculation will be equal to the actual Class Six Direct Operating
Results and 80 percent of the telephone income plus 0.4 percent of the installation
Army and Air Force Exchange Service (AAFES) revenue at each garrison. AAFES
encourages consultations with their local general managers to assist in forecasts.
Lodging commissions generated through AAFES/Sprint/Army Lodging
telecommunications agreements will accrue to Army Lodging activities.


9. AMUSEMENT MACHINE OPERATIONS: (POC is Karen Strunk, IMWR-FMC, COM
(210) 424-8588, e-mail: Karen.m.strunk@us.army.mil or Christine French, IMWR-FMC,
DSN 761-7298 or COM (703) 681-7298, e-mail: Christine.French@us.army.mil.)

For budgeting purposes, do not use general ledger account (GLAC) 524 - ARM Profit
Distribution Income (slot machine revenue) to record income from ARMP supplied
electronic amusement machines. Revenue from ARMP supplied amusement machines
is to be budgeted in GLAC 539 - Amusement Machine Income (Non-Concessionaire)
under the program code for the program that manages the activity. In cases where the
NAFI operates and receives revenue from both ARMP supplied machines and MWR
fund owned machines, both sources of revenue will be recorded in GLAC 539.
Subsidiary records for GLAC 539 will have to be maintained to track each income
source separately.


10. ARMY LEVEL REQUIREMENTS (ALR) MORALE, WELFARE, AND
RECREATION (MWR) UNIT FUND SUPPORT TO DEPLOYED ARMY TROOPS:
(POC is Roger Wilson, IMWR-FMC, DSN 761-7303 or COM (703) 681-7303, e-mail:
Roger.G.Wilson1@us.army.mil)

On 16 Apr 2004, the Family and Morale, Welfare and Recreation Command (FMWRC)
published guidance for this new unit fund dividend program. The program provides unit
fund dividends for Active Duty, Reserve, and National Guard soldiers deployed in
support of Operation Enduring Freedom (OEF), Operation Iraq Freedom (OIF) and
Homeland Security. The full guidance, which may be found at:
http://www.armymwr.org should be reviewed for complete details on eligibility.

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                      FY 11 PROGRAM OPERATING GUIDANCE



Program/Location/Department/General Ledger Account Code Guidance:

Program Code. The ALR MWR Unit Fund Support should be fully accounted for in the
Unit Activities Program, program code HD.

Location Code. Under the Unit Activities Program Code HD, each garrison should
establish a new locally assigned separate location code for all accounting entries for this
dividend program.

Department Code. All unit funds should use department Special Soldier Support
Operations code 5L.

Income Account. Record all income in Army Morale, Welfare, and Recreation Fund
(AMWRF) Dividends, GLAC 809.

Expense Account. Record all expenses in Dividend Expense, GLAC 697.

Receivable Account. Record all receivables due from AMWRF for the ALR MWR Unit
Fund Support in Dividends Receivable, GLAC 132.

Payable Account. Record all advance payments from AMWRF (monies not yet
distributed to unit fund) in Dividends Payable, GLAC 206.

Receipt of AMWRF Funding by Garrison – no prior advance payments by
garrison:

   a. Upon notification of AMWRF distribution, credit Dividends Payable GLAC 206.

   b. When funds are disbursed by garrison to unit funds, debit Dividends Payable
GLAC 206 and credit AMWRF Dividends GLAC 809; debit Dividend Expense GLAC
697 with contra to Cash account.

   c. The goal of the above accounting entries is to ensure the matching of ALR MWR
Unit Fund Support Income with the unit fund expenses so no distortion to garrison
income statements occurs through timing differences.


11. ARMY LEVEL REQUIREMENTS (ALR) SELF-SUFFICIENCY EXEMPTION (SSE)
PROGRAM: (POC is Roger Wilson, IMWR-FMC, DSN 761-7303 or COM (703) 681-
7303, e-mail: Roger.G.Wilson1@us.army.mil)

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    a. The ALR SSE program was initially approved by the MWR BOD Executive
Committee effective FY 04. The Commander, Family and Morale, Welfare and
Recreation Command (FMWRC) administers the program.

     b. The ALR SSE SOP has been updated to include an increase in the funding level
for the School Activity students in a TDY status and Reserve/ Isolated Units. The
funding level for school activity programs and Reserve/Isolated Units has not been
adjusted for over 10 years. The school activity funding level increased from $1.50 to
$2.00 per student for those courses where students are TDY and remain at $25.00 per
student for non-TDY courses. The Reserve Units increase from $2.00 to $2.50 per
person per month and the Isolated Units from $24.00 to $30.00 per person per year.

   c. The ALR SSE program has been limited to a 2 percent inflationary increase each
year for Scouts and Volunteer Reimbursements, and a set per capita amount for
Soldier/NCO of the Year (SOY), school activities, Reserve/Isolated Units and NAF Food
Program OCONUS. Funding levels for SOY and NAF Food Programs OCONUS, have
been reviewed by their respective program managers and funding is adequate for those
programs at this time.

     d. The supporting documents for requesting ALR SSE funding will be available on
the Worldwide Web Army MWR Homepage at www.ArmyMWR.org under Financial
Management, Documents, Standing Operating Procedures, ALR SSE. The documents
include the Memorandum, Program Guidance, Standard Operating Procedures and
Excel spreadsheets.


12. FUNDING ISSUES: (POC is George McNamara, DAIM-IS, DSN 332-1410 or COM
(703) 602-1410, e-mail: Mcnamaragt@us.army.mil.)

   a. General. APF support of NAFIs shall be planned, programmed, and budgeted in
accordance with Program and Budget Review Submission procedures in Volumes 2A
and 2B of DoD 7000.14-R, Financial Management Regulation. NAF support of NAFIs is
authorized by Title 10 U.S. Code, Section 2783, and directs 1) the Secretary of Defense
prescribe regulations governing the use of NAF and 2) subjects individuals who violate
or mismanage NAF funds as prescribe by OSD to the same penalties for violating and
mismanaging the use of APF. OSD implements the law through DODI 1015.15,
Establishment, Management, and Control of Nonappropriated Fund Instrumentalities
and Financial Management of Supporting Resources. The DODI establishes both APF
and NAF funding policy and guidelines (DODI 1015.15, Para 4 and enclosures 4 & 5).
Additional OSD policy and guidelines for the use of APF and NAF for NAF adjunct

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                     FY 11 PROGRAM OPERATING GUIDANCE


operations to Permanent Change of Station (PCS), Temporary Duty (TDY) and military
treatment facility lodging programs are prescribed in DODI 1015.12, Lodging Program
Resource Management. All NAFIs shall maintain custody and control of its NAF
resources and administer APFs to carry out its purposes in accordance DoD guidance.
NAFs are designated for the collective benefit of authorized patrons and the purpose of
the NAFI and shall be administered only through the auspices of a NAFI. NAFs are
entitled to the same protection as funds of the U.S. Treasury. No individual, unit,
organization, installation, or commander has proprietary interest in NAFs or other NAFI
assets.

Per Title 10, U.S. Code, Section 2783, NAF personnel who violate regulations are
subject to the same penalties under Federal laws that govern the misuse of
appropriations by APF personnel. Violations by military personnel are punishable under
the Uniform Code of Military Justice

Law:
http://www.law.cornell.edu/uscode/html/uscode10/usc_sec_10_00002783----000-.html

DODIs:
http://www.dtic.mil/whs/directives/corres/pdf/101515p.pdf

http://www.dtic.mil/whs/directives/corres/pdf/101512p.pdf

   b. Additional Guidance - Environmental Issues

        AR 215-1, table D-1, paragraph 12g. Other Services. Cleanup of underground
storage tank leaks and environmental compliance and remediation are included as
those services normally associated with protecting the health and safety of participants
and employees. Appropriated funds are authorized for such services in all categories of
MWR programs to include Category B and C lodging programs. Nonappropriated funds
will not be used for authorized APF expenditures unless authorized APFs are not
available and a certificate of nonavailability is obtained from the responsible resource
office.

Reference DODI 1015.12, Enclosure 4, Paragraph 4.6., Lodging Operations.
Appropriated funds are authorized for repair and clean up environmental compliance
regardless the funding source (TDY or PCS) for all Category A lodging programs.


13. NONAPPROPRIATED FUNDS (NAFs) USED TO SUPPORT APPROPRIATED
FUND (APF) FIXED ASSET REQUIREMENTS: (POC is Karen Strunk, IMWR-FMC,

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COM (210) 424-8588, e-mail: Karen.m.strunk@us.army.mil or Christine French, IMWR-
FMC, DSN 761-7298 or COM (703) 681-7298, e-mail: Christine.French@us.army.mil.)

Report the NAF used in lieu of APF for MWR fund purchases that meet the NAF
capitalization criteria and APFs are authorized for the purchase. This includes all fixed
asset purchases and capitalized items to include buildings, building improvements, land
improvements, furniture, fixtures and equipment, vehicles, and capitalized maintenance
and repair, which would qualify for APF funding.

   a. Accounting Treatment: Use the following general ledger accounts (GLACs):

GENERAL LEDGER           NAME OF ACCOUNT                    DESCRIPTION
ACCOUNT NUMBER
      181                APF Authorized Fixed Assets        Use for the cost of all
                                                            fixed assets
                                                            purchased with NAF
                                                            but which are eligible
                                                            for APF funding.
         182             Accumulated Depreciation APF       Record the amount
                         Authorized Fixed Assets            of depreciation for
                                                            GLAC 181.
         860             APF Authorized Fixed Asset         Record the
                         Depreciation Expense               depreciation expense
                                                            for assets capitalized
                                                            in GLAC 181 for the
                                                            accounting period.

   b. The correct department to use with GLAC 181 will be the one in which the asset
purchased is providing a benefit. The APF departments such as GL (APF Support -
Normal Operations), GF (APF Support - Expanded Operations), GH (APF Support -
Security), and GJ (APF Support - Emergency Essential Civilian) will not be used to
record the fixed asset's depreciation.

  c. CPMC Quarterly Reporting for FY 11:

      (1) Each region currently reports fixed asset and CPMC activity to IMWR on a
quarterly basis on the form titled Reconciliation of Fixed Assets and CPMC Reporting.

       (2) The reporting of CPMC items is on a year-to-date basis. As such, quarterly
reporting of GLAC 181 assets being capitalized could change in a later quarter, if
USA/UFM MWR funding for the asset were received. If USA/UFM MWR funding were
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                     FY 11 PROGRAM OPERATING GUIDANCE


received at a later date, the asset would be removed from the Balance Sheet and would
be reported on the Income and Expense Statement in the applicable APF department.
      (3) Note the requirement of FM memo 07-02 for specific CPMC as pertains to the
purchase of fixed assets which are authorized APF support.

   d. Other: Appendices D and E of AR 215-1 contain detailed information on
authorized funding sources.


14. CURRENT, NEW, REVISED AND RESCINDED PROGRAM, DEPARTMENT AND
GENERAL LEDGER ACCOUNT CODES (GLACs): (POC is Karen Strunk, IMWR-
FMC, COM (210) 424-8588, e-mail: Karen.m.strunk@us.army.mil or Christine A.
French, IMWR-FMC, DSN 761-7298 or COM (703) 681-7298, e-mail:
Christine.French@us.army.mil.)

    a. All program codes, department codes, and GLAC codes in effect for FY 11 are
listed in Encl 12. Note: These codes and standardized transaction codes for reporting
under RecTrac/Golftrac/CYMS are to ensure continuity and uniform reporting within
respective program areas throughout Army MWR and must be adhered to.

   b. New/Revised Program and Department Codes, effective for FY 11 are listed
below:

Title                               Code       To be used by
Warrior Zone (New)                  WZ         All MWR NAFIs (see paragraph 31)

Leisure Travel Services (Title      KD         All MWR NAFIs (see paragraph 33)
changed)
Vehicles (LTS Only) (Revised)       B8         Leisure Travel Services only. Revised
                                               to reflect new program code title


15. IMWRF AND LODGING FUND SERVICES AND OVERHEAD COST
ALLOCATIONS: (MWR NAFI POC is Karen Strunk, IMWR-FMC, COM (210) 424-
8588, e-mail: Karen.m.strunk@us.army.mil or Christine French, IMWR-FMC, DSN 761-
7298 or COM (703) 681-7298, e-mail: Christine.French@us.army.mil. ALF POC is
Sheryl Cleland IMWR-HP, COM (210) 424-8631, e-mail: Sheryl. Cleland@us.army.mil)

    a. During FY 03 and FY 04, the Army Audit Agency conducted audits at selected
sites on the allocation methodologies used for reimbursements between Garrison
lodging and MWR activities for common support overhead. The reports indicate that in

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                     FY 11 PROGRAM OPERATING GUIDANCE


several instances there was no review performed to determine if the allocations could
be supported by the level of service provided. In order to provide a better basis, the
allocation guidance separates those services which can be documented by service
provided versus those where a percentage allocation of total costs is applicable.
Identifiable service allocations will be charged to the applicable General Ledger Account
Code (GLAC) as identified in the following guidance.

    b. MOAs will be executed to define the specific services and overhead to be
provided between MWR and Lodging. No reimbursement is authorized for expenses
directly funded with APF, nor can reimbursements plus funding received from other
sources for specific functions exceed the actual gross costs incurred by the program
providing the service. The methodology for allocating costs for these services and
overhead costs will be the result of business analysis for services which are authorized
and available to be provided from an alternate source, the guidance in these
instructions, and negotiations including the MWR manager and Lodging manager at the
Garrison. Managers may also seek input from personnel in the departments providing
support and services during the negotiation process. The negotiated agreement will be
signed by the Army Lodging Region Assistant Fund Manager for Korea and Europe
Regions and the Army Lodging Fund Manager for CONUS and Pacific Region
operations and the garrison MWR operating entity manager. A copy of the signed
agreement will be furnished to the servicing accounting office. Overhead cost
allocations based on estimated numbers of transactions and transaction costs will be
reviewed twice each fiscal year and reconciled to actual documented expenses
incurred, and, if necessary, adjusted to ensure that they are appropriate. The Army
Lodging Region Assistant Fund Manager for Korea and Europe Regions and the
Garrison Army Lodging Manager at CONUS and Pacific operations will request the
region Internal Review Offices to review MOAs and actual allocation of costs to ensure
appropriateness.

      (1) Task/Service identifiable costs include:

       (a) Accounting costs for those garrisons serviced by NAF Financial Services will
be billed directly and no reimbursement between lodging and MWR is applicable. For
those garrisons serviced by an accounting office which is within the MWR fund, the
accounting costs will be based on an average transaction count. In both instances, the
accounting costs will be expensed on the lodging activity income statement under
GLAC 685 Central Accounting Office Expense.

      (b) Civilian Personnel Office (CPO) costs will be allocated based on the actual
number of personnel transactions processed. CPO costs will be expensed to GLAC
682 Civilian Personnel Services Expense.

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       (c) Contracting/Procurement costs. Reimbursement of contracting/procurement
costs is not authorized as all Army Lodging contracting/procurement support is centrally
executed and funded by the ALF.

        (d) Other Services. Lodging may purchase services from MWR when a business
analysis determines MWR provides the best value to the lodging activity as compared to
estimates from private providers or execution of the services in-house. Lodging may
provide services to MWR under the same conditions. The providing activity when
developing cost estimates should include direct and indirect costs. Direct costs would
include such items as gas for lawnmowers, in the case of landscaping services, or
utilities costs for warehouse/storage facilities. Indirect costs would include such items
as division chief and supporting staff salaries and benefits. In these instances, services
will be billed on a quarterly basis. Labor transfers may not be substituted for these
billings.

       (2) Maintenance and Repair. Costs for maintenance and repair are categorized
as those associated with actual work performed; flat fee costs for providing “on call”
services or regularly scheduled maintenance.

        (a) For actual work performed, costs will include labor and parts and be billed on
an individual basis. These costs will be recognized by the receiving program as GLACs
658 (Equipment Maintenance and Repair Expense); 659 (Vehicle Maintenance and
Repair Expense) or 657 (Facilities Maintenance and Repair Expense) for maintenance
and repair costs which do not meet the capitalization criteria as outlined in DOD
7000.14-R. For those costs meeting the capitalization criteria, the cost is to be
identified to the appropriate fixed asset category. The providing activity will recognize
the income as GLAC 501 (Service/Recreation Activity Income).

       (b) Flat fee costs for providing the ability for “on call” emergency service
requirements will be based on the costs attributable to maintaining this effort. These
costs will be negotiated as an annual (fiscal year) contract and billed separately.
Repairs performed as a result of the call will be billed per sub-paragraph (2)(a) above.
The flat fee costs will be recognized by the receiving activity as GLAC 686 (Contractual
Services Expense). The providing activity will recognize the income as GLAC 501
(Service/Recreation Activity Income).

        (c) Regularly scheduled maintenance such as grass cutting will be based on the
costs of providing the required level of service and will be negotiated on an annual
(fiscal year) basis. The MOA will describe the level and frequency of service. The costs
will be recognized by the receiving activity as GLAC 686 (Contractual Services

                                            14
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Expense). The providing activity will recognize the income as GLAC 501
(Service/Recreation Activity Income).

       (3) Warehousing/Storage. Costs will be allocated based on square footage
allocated for storage. Square footage costs should be based on net costs of
warehousing operation attributable to the storage function only.

       (a) Costs for deliveries will be allocated based on level of delivery service
required as described in the MOA.

     (b) Other functions performed by warehouse personnel such as supply
management will be clearly identified in the MOA.

       (c) All costs associated with the warehousing/storage functions will be
recognized by the receiving activity as GLAC 686 (Contractual Services Expense). The
providing activity will recognize the income as GLAC 501 (Service/Recreation activity
Income).

        (4) Marketing. Marketing costs will be based on costs for individual services
required; e.g., production of in room directories. Each service/deliverable will be clearly
identified in the MOA and priced separately. The receiving activity will recognize these
costs based on the product/service provided. The providing activity will recognize the
income as GLAC 501 (Service/Recreation Activity Income).

        (5) Common support is authorized to be charged to lodging activities for the
following MWR management/centralized functions under program codes: RC – Director
MWR/Deputy Director MWR/Fund Custodian, RQ - Community Operations/Business
Programs, RI - MWR Information Technology Services and RF - Financial Management.
Allocated costs will be reported as an expense on the lodging activity income statement
under GLAC 688 (Common Service Fund Expense). The MWR activity will report the
income under GLAC 547 (Income from Allocation of Expenses) within the applicable
program code.

       (a) Positions reimbursed will be consistent with the standard IMCOM Standard
Garrison Organization (IMCOMSGO). Expenses of the MWR administrative/overhead
programs will not duplicate authorized encumbered positions in the Army Lodging
staffing guide.

      (b). Allocated costs will be reported as an expense on the lodging activity income
statement under GLAC 688 (Common Service Fund Expense). The MWR activity will


                                            15
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                      FY 11 PROGRAM OPERATING GUIDANCE


report the income under GLAC 547 (Income from Allocation of Expenses) within the
applicable program code.

      (c) The DFMWR/Deputy DFMWR/Fund Custodian (program code RC) net costs
percentage allocation will be based on the number of departments and activities (as
defined on the IMCOMSGO) present at the garrison. The percentage allocation may
be adjusted for costs directly associated with a specific activity, e.g., upwards to include
costs solely attributable to attending a lodging conference.

       (d) The Community Operations/Business Programs Division (program code RQ)
costs will be based on the number of activities (as defined by the IMCOMSGO) present
at the garrison within the Community Operations/Business Programs Division. The
percentage allocation may be adjusted for costs directly associated with a specific
activity, e.g. downwards to exclude costs solely attributable to attending a bowling
conference.

      (e) Percentage allocations to the lodging activity for program codes RC and RQ
may also be adjusted when an auditable demonstration of the Director MWR/Deputy
Director MWR or Business Operations Department Chief’s time associated with
management support to the lodging activity is documented.

      (f) Allocations for program code RI - MWR Information Technology support will
be based primarily as a percentage of the number of lodging activity computers and
periphery equipment versus those in Morale, Welfare and Recreation activities. This
calculation will exclude the inventory of the centrally funded Army Lodging Property
Management System (ALPMS) software, equipment, service or interfaces.

       (g) The allocation of costs for program code RF –Financial Management will be
based on time associated with command required financial management functions. In
addition lodging may negotiate other desired services. The MOA will separately identify
command required functions and the associated cost of these functions versus those
which are desired by lodging management.


16. FINANCIAL MANAGEMENT: (POC is Karen Strunk, IMWR-FMC, COM (210) 424-
8588, e-mail: Karen.m.strunk@us.army.mil or Christine French, IMWR-FMC, DSN 761-
7298 or COM (703) 681-7298, e-mail: Christine.French@us.army.mil.)

  a. Program Code, RF - Financial Management is available for reporting financial
management activity that is a result of operating a garrison or Region MWR Financial
Management Division (FMD). This program code is also used to report expense and

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revenue transactions that result from providing financial management support services
(operational activity) including services provided to other divisions of MWR and other
Nonappropriated Fund Instrumentalities (NAFIs). The overall majority of activity should
be reported in Department Codes GL - APF Support - Normal Operations, since most
functions of an FMD operation are authorized APF. In addition to the department code
above, there are department codes that are appropriate for reporting NAF financial
management administrative activity that is related to resale or NAF only operations (see
enclosure 7, Program code “RF” Financial Management

     b. Only transactions that are a result of conducting financial management functions
are to be reported under Program Code RF - Financial Management. For example, the
cost of checking, coordinating, and consolidating budgets, monitoring their execution,
etc.; managing APF and NAF Table of Distribution and Allowances (TDA) and
Personnel Requirements Document (PRD), internal control procedures; addressing
budget variances and preparing and conducting command review and analysis;
administering RIMP, debt collection, unit fund expenditures, membership data bases,
etc.

    c. Revenues to be reported in RF are only those, which result from conducting
financial management functions. Some examples are providing financial management
services such as budgeting assistance, preparing financial reports and analysis, and
conducting debt service for other funds/NAFIs (Army Lodging, Supplemental Missions,
etc.).

   d. Revenue that is related to or associated with a number of MWR programs and
cannot be identified to individual programs or that is not a direct result of financial
management administration within the MWR fund should be reported under Program
Code, RP - Fund Administration.

   e. Concession income, whether from local or national contracts, is to be reported
under the program where the operation is located, using a department code that closely
describes the activity and a separate location code for the activity (front door facility
locations). For example, reporting concession food and beverage income from a
concessionaire-operated snack bar under the management of a community club is
reported under Program Code, KG - Community Club, in department 14 - Snack Bar,
using a separate location code to identify the contract operation. Also, individual
AAFES contract income (excluding the Army Simplified Dividend (ASD), which is
reported under RP using GLAC 545 - AAFES Dividend Income) is to be reported under
the program where the contract operation is located in a department code that closely
describes the activity. Use GLAC 549- AAFES Other Income, to record the income.


                                            17
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                      FY 11 PROGRAM OPERATING GUIDANCE


  f. For FY 11 Financial Management Program Budget Guidance, LINK TO ENCL 7,
PROGRAM CODE “RF” Financial Management.

   g. Other reminders:
      (1). Recent review of actual financial statements reveals that RIMP insurance
expenses are not being properly distributed to the respective operational locations.

      (2). All current program codes, department codes, and GLAC codes are listed in
Encl 12. These codes and standardized transaction codes for reporting under
RecTrac/Golftrac/CYMS are to ensure continuity and uniform reporting throughout Army
MWR and must be adhered to.


17. MG ROBERT M. JOYCE FAMILY AND MWR ACADEMY: (POC is Dr. Patricia
Tucker, FMWRC-WD, DSN 235-5880 or COM (703) 275-5880, e-mail:
Patricia.Tucker@us.army.mil or Jeff Manville, FMWRC-WD, DSN 235-5880 or COM
(703) 275-5880, e-mail: Jeff.Manville@us.army.mil)

    a. All costs associated with Army MWR, Army Lodging, and ACS employees
attending Family and MWR Academy courses are borne by the Family and MWR
Command (FMWRC) and the Army Morale, Welfare, and Recreation Fund (AMWRF)
(except where indicated in this budget guidance, the Family and MWR Academy on-line
instructions, and Memorandums of Agreement (MOAs)). Travel orders for both APF
and NAF students are prepared in coordination with the Family and MWR Academy.
Travel must be by the most expedient and cost effective means. For students traveling
to training from the commuting area, FMWRC and JFTR Vol.2 policies regarding TDY
travel authorization will be followed. FMWRC policies will be followed regarding funding
of travel for contractor personnel. Where funding is authorized for contractor personnel,
travel is initially funded by the home installation/work site. Travel for local national
employees is also initially funded by the garrison. Where travel reimbursement is
authorized (for contractor and local national personnel), the garrison will be reimbursed
following completion of travel and submission of an invoice to the Academy. Specific
guidance on travel reservations and travel orders is contained in the Family and MWR
Academy travel information at www.mwraonline.com <http://www.mwraonline.com>.

    b. Employees of MWR activities from other services may attend Family and MWR
Academy courses. Funding of tuition, travel and per diem is the responsibility of the
individual’s parent organization. Lodging is generally provided by contract and is
included in the tuition fee for some courses. Most on-line training is at no cost but
tuition is required for a limited number of courses. For information concerning tuition,
lodging, and course availability contact the Family and MWR Academy at 5285

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                      FY 11 PROGRAM OPERATING GUIDANCE


Shawnee Road, Suite 200, Alexandria, VA 22312; or call DSN 235-5880, Commercial
(703) 275-5880.

   c. Military, or civilians who do not fall into the categories described in 4a or 4b
above, may apply to attend courses on a space available basis. If the military or civilian
applicant is accepted for training, a tuition fee will be charged. Funding of tuition,
travel lodging, and per diem is the responsibility of the individual’s parent organization.

   d. Costs associated with Army MWR NAF employees attending specific Civilian
Education System (CES) courses are centrally funded by TRADOC. Information on the
program and on registration is located at https://www.us.army.mil/suite/portal/index.jsp


18. BUSINESS PLANS: (POC is Tony Violante, IMWR-FMA, DSN 761-7299 or COM
(703) 681-7299, email: tony.violante@us.army.mil)

   a. FY11 Business Plans will be submitted in the same format as in the past, or as
required by region guidance.

   b. On-line business plan templates are being developed and will be piloted during
FY11 with targeted implementation in FY12. Additional information and guidance will be
provided as the pilot is conducted.

  c. Business and Action plans for all business operations are addressed in paragraph
24b.


19. NAF MINOR CONSTRUCTION: (MWR POC is Michael Cauthen, IMWR-FD, DSN
761-7490 or COM (703) 681-7490, e-mail: Michael.Cauthen@us.army.mil)

All minor construction projects must be included in the Region approved budget
submitted to FMWRC prior to execution. Approval authority is delegated to the Region
Director for projects over $200K but less than $750K for the cost of construction (design
and FF&E costs are excluded). The IMWR-FD is required to report all minor
construction projects to OSD annually. To ensure visibility of how this authority is being
exercised, at the time of project approval, a copy of the DD Form 1391, Military
Construction Project Data, (signed by the Garrison Commander), and a copy of the
Business Case will be forwarded to the Commander, Family and Morale, Welfare and
Recreation Command, ATTN: IMWR-FD or emailed to the POC mentioned above.
Projects budgeted at less than $750K that exceed that amount due to subsequent
foreign currency exchange fluctuations will not be considered a major construction

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                     FY 11 PROGRAM OPERATING GUIDANCE


project, regardless of the final amount. If bids received cause the construction cost to
exceed $750K, the project shall be approved by USD(P&R) and reported to Congress
before being placed under contract. Construction cost is defined as the project cost on
the DD Form 1391 (includes contingency and SIOH). All projects must meet
environmental requirements/clearances, applicable standard designs and professional
interior design support for fixtures, furniture and equipment. Garrisons needing technical
assistance in developing DD Form 1391s or project scopes of work and project
management support may request assistance through the Region to the MWR POC
above. FMWRC Facilities Directorate will publish a guide to Minor Construction
Planning and Execution under separate cover.


20. FUNDING FAMILY AND MWR FACILITY SUSTAINMENT, RESTORATION AND
MODERNIZATION (SRM) WITH NAF: (POC, Art Stafford, IMWR-FD, COM
(210) 424-8586, e-mail: arthur.stafford@us.army.mil)

   a. Garrison APF SRM is the project funding source for SRM projects at Garrison
Family and MWR facilities as stated in AR 215-1, Table D-1, subparagraph j. NAFs will
not be used when APFs are available. Budgeted Garrison Family and MWR SRM NAF
funded projects will be to the HQ, FMWRC Capital Investment Review Board before
being placed under contract. Projects may be submitted to POC at any time during the
FY. The dollar thresholds and the review/approval process contained in AR 420-1
“Army Facilities Management” for Family and MWR Facility SRM Projects remains the
same. Also, the certification signed by the Garrison Commander that APFs are not
available is still required prior to the expenditure of NAF for garrison Family and MWR
Facility SRM Projects.

    b. Local Garrison DFMWR Facility SRM/Construction Point of Contact will maintain
visibility and track all Family and MWR SRM Projects funded with NAF and report these
projects through their IMCOM Region DFMWR Facility Coordinator to IMWR-FD, ATTN:
Facility SRM Program Manager. Report format will include project’s: Work Order
Request number (DA Form 4283); facility number and facility category code; a brief
description of the project; and dollar amount of project.

   c. Garrison DFMWRs are authorized to use the Uniform Funding and Management
(UFM) where it would be a more efficient and effective way to execute the SRM dollars
to meet MWR requirement. All UFM guidance must be followed. The use of the UFM
process does not relieve the garrisons from complying with all regulatory and statutory
guidance for SRM.



                                           20
                                                                             Enclosure 5
                     FY 11 PROGRAM OPERATING GUIDANCE


    d. More information concerning Family and MWR Facility SRM can be obtained at
the following Army Knowledge Online web page:
https://www.us.army.mil/suite/page/632135
“HQ, FMWRC Facilities SRM/Construction Community of Practice”.


21. PROCUREMENT: (POC is Jennifer Sherman, IMWR-NC, DSN 761-5302 or COM
(703) 681-5302, e-mail: Jennifer.C.Sherman@us.army.mil)

   a. Acquisition Planning: Acquisition planning must be a part of the CPMC and FY
budget process to ensure that the best overall value is obtained for the
NAFI. Acquisition planning requires market research, clear written objectives for a
procurement, and advanced planning by all personnel involved to fulfill the NAFI’s
needs in a timely manner at a reasonable cost. During this process the needs of the
requester should be developed in a manner that promotes competition and ensures that
the NAFI receives the best overall value, price and other factors considered. Requesting
activities should account for sufficient procurement lead-time so that the NAF
Contracting Office can meet their required delivery schedule. Depending on the dollar
amount of a requirement, contracting processes can take from 30 to 120 days or
more. Requesting activities should contact their servicing NAF Contracting Office early-
on concerning lead times and additional guidance on market research and acquisition
planning is detailed in Army Regulation 215-4 Nonappropriated Fund Contracting.

    b. Payment: Prior to issuing an award, a clear pathway must be set for payment
and a purchase request with adequate funding must be submitted through the
appropriate approval process before the contracting office can solicit offers and
proposals. Once the contractor performs, the requesting activity must submit the
contractor’s invoice, along with a receiving report specifying the services received, to
the appropriate payment office. Contracts awarded using UFM or MWR USA processes
will use procurement policies and procedures set forth in AR 215-4.

   c. Procurement Costs – MWR: Costs related to services provided by the Central
Procurement Directorate of FMWRC are to be budgeted and reported under Program
Code RP (IMWRF Admin) using GLAC 684 (Central Procurement Expense) at the
region level. (POC: Ben Sands, IMWR-FMC, DSN 761-7305 or COM (703) 681-7305,
email: Benjamin.F.Sands@us.army.mil.)


22. FMWRC CONSOLIDATED ENTERPRISE BUYS – MANDATORY
PARTICIPATION: (Business Initiatives POC: Clotis Wafford, COM (210) 424-8573, e-


                                          21
                                                                            Enclosure 5
                      FY 11 PROGRAM OPERATING GUIDANCE


mail:clotis.m.wafford (NAF Contracting POC: Pamela Jones, COM (210) 424-8453, e-
mail: Pamela.Jayne.Jones@us.army.mil).

     a. The following guidance is applicable to all Army Lodging, AFRC and IMCOM
Garrison MWR programs. The Consolidated/Enterprise Buy program requires
mandatory participation to support leveraging buying power to yield Army-wide cost
efficiencies through the standardization of products and the reduction of product pricing.
Purchases executed under the program are normally locally funded. Please note that
the guidance provided in this section does not apply to other standard products
initiatives/central contracts such as the Army Lodging amenities or bed and bath linen
contracts. Those agreements remain the sole authorized vehicle for the procurement of
those items.

   b. The Consolidated/Enterprise Buys program is the only authorized method for the
procurement of the items listed in the procurement calendar (Document 1). Additional
items may be identified as a result of aggregating garrison CPMC or other requirements
once the FY11 budget process has concluded. Regions/Garrisons may also request
additional consolidated or enterprise buys by emailing Clotis Wafford at
clotis.m.wafford@us.army.mil. The request must contain the item’s description and the
proposed specifications.

   c. FMWRC program managers have developed standard specifications for each
consolidated/enterprise buy item. These standards are provided at Document 2. Each
item has been assigned a United Nations Standard Product and Services Code
(UNSPSC). This code is located with their respective item standard specification.
Requestors will ensure that all Consolidated/Enterprise Buy purchase requests contain
the appropriate UNSPSC. The UNSPSC must be annotated on the main page (SNACS
GLOBAL) in the primary product/service code block and under the items page,
product/service code block. Documentation of the UNSPSC allows for accurate
reporting of Consolidated/Enterprise Buys.

    d. Any requests to procure items listed on Document 1, must follow the standard
procedures for submitting an approved purchase request to their assigned Regional
NAF Contracting office. Requestors must adhere to the procurement timelines as
defined in the procurement calendar.

    e. Exceptions for valid emergency procurements or requirements for
consolidated/enterprise buy items with specialized regional specifications (e.g. vehicles
in Japan, voltage requirements in Europe, etc.) shall be forwarded, with justification, to
Clotis Wafford at clotis.m.wafford@us.army.mil, for review and approval prior to
processing a purchase request. The appropriate FMWRC program manager is

                                            22
                                                                              Enclosure 5
                     FY 11 PROGRAM OPERATING GUIDANCE


responsible for approving or disapproving the request. Ms. Wafford will notify the
requestor of the FMWRC program manager’s decision. If approved, the requestor must
submit a purchase request, attaching the approval, to their Regional NAF Contracting
office for processing.


23. FAMILY AND MWR DELIVERY SYSTEM (FMWR-DS): (POC is Jean Neal,
IMWR-CR, Commercial 210-424-8507, e-mail: Jean.neal@us.army.mil and David
Roudybush, IMWR-BO, (210) 424-8571, e-mail: david.roudybush@us.army.mil)

   a. FMWR-DS is a designed process to foster delivery of integrated, customer
focused programs geared to each Garrison’s unique needs. FMWR-DS supports the
SFAP through identifying and leveraging resources enabling Garrisons to meet
customer needs, supporting the mission, and making performance management culture
work. FMWR-DS is a critical component of the Family and MWR Club Strategy that will
provide an environment conducive to the growth of esprit de corps, sense of community
and informal Soldier mentoring.

   b. The DFMWR has responsibility to establish, maintain and have oversight of the
FMWR-DS program. The Chief, Community Recreation will have direct supervision of
the core team of programmers and implementation of the FMWR-DS process.

   c. Each Garrison will establish a dedicated, non-facility based programming team.
The authorization and requirement for a core team of programmers was established by
NETCALL 2007-40. The core team is comprised of FMWR-DS programmers. The
team composition and numbers should be representative of the individual Garrison’s
functional programs. The number of recognized full-time recreation staff on this team is
based on the Army Community Recreation Baseline Standards. (A small garrison may
only be authorized one programmer.) Ad-hoc team members from other program
areas will be made available to support the FMWR-DS process.

        (1) The ad-hoc team may consist of personnel whose salaries are funded
through APF/UFM. However, these APF/UFM funded personnel are not authorized to
directly support revenue producing (Category C) programs, facilities, or any resale
activity within Category A or B programs.

        (2) Pure NAF ad-hoc team members may support revenue producing (Category
C) programs, facilities, or any resale activity. However, if this is a non Garrison-wide
event, their costs are to be charged directly to the supported Category C or resale
activity/department.


                                           23
                                                                             Enclosure 5
                      FY 11 PROGRAM OPERATING GUIDANCE


       (3) Core team labor for directed FMWR-DS program/events that are garrison-
wide; such as concerts, talent shows, road rally, etc., will be charged Program Code, JN
– Recreation Program Team. In addition, costs incurred for planning and developing
programs, but not implementing a program, will also be captured under the program
team code, JN.
Note: JN is no longer to be used for BOSS; the BOSS program code is QD.

      (4) Garrison-wide Recreation Programs/Events - Revenue generated or
expenses (other than FMWR-DS team costs) incurred by conducting garrison-wide
FMWR-DS programs/events are to be charged to the garrison-wide recreation Program
Code, JQ – Garrison-wide Recreation Events.

       (5) Where there are two or more MWR activities sponsoring a specific program
developed by a core team, the income and operating expenses are shared between the
MWR Activities. An example, the Outdoor Recreation Program General (JE) sponsoring
a hiking trip and the Community Club (KG) provided a country style barbecue and
dance, they would assume the cost and revenue from the food and beverages served
and ODR (JE) would garner the income and cost for the other portions of the program.

  d. Garrison-level FMWR-DS Action Plan, to include revisions and supporting
documents will be uploaded to the ACRRO website concurrently with FY11 Budget
cycle submission due date.

       (1) FY11 Community Recreation spending plan will be designed to support the
Garrison FMWR-DS Action Plan and will address the resources required to accomplish
the Key Result Areas that are applicable.

       (2) Upon submission of FWMR-DS Action Plan changes, the Regions and HQ
will approve or disapprove the plans based on the Action Plan Review Criteria.
Disapproved action plans will be sent back to the Garrisons for changes. Adjustments
and Region and HQ approvals will be completed NLT 29 October 2010.

   e. Supplemental Information:

        (1) Programmer(s) will have the primary responsibility for planning of programs,
e.g., special events, classes, tournaments, field days, etc., and will identify and conduct
directed Family and MWR programs for the military community. FMWR-DS team will be
responsible for ascertaining market needs, developing the program to meet the
customers’ needs, preparing the cost analysis and pricing, promoting, and determining
the best method to deliver the program(s) and conduct the program(s). Programmer(s)


                                            24
                                                                              Enclosure 5
                      FY 11 PROGRAM OPERATING GUIDANCE


will also register participants in RecTrac and collect feedback and evaluate customer
satisfaction.

      (2) APF support is not authorized for use in or to support resale and/or revenue-
producing activities, regardless of the category or program. The DODI 1015.10 defines
resale as the “acquisition and resale of goods and services by MWR programs or
concessionaires.” The definition does not cover those activities that only charge
nominal user fees or participate in minor incidental resale activities to recoup NAF
expenses.

Example of Garrison-wide events:

       (1) Fourth of July celebration.

        (2) Community Health Fair: Includes booths with information and activities from
all the MWR programs plus booths from the hospital, chaplain, local organizations on
and off post which contribute to mental and physical health and well being. Events can
be held in the gym or fitness center or the community recreation/activity center or in a
field.

        (3) Holiday in the Park: Units can make and display large (4’x6’) holiday cards
for judging by a panel. MWR Arts and Crafts can provide activities to design seasonal
ornaments. Youth Services can provide gift-wrapping or gifts for family members.
Libraries can sponsor a reading corner for seasonal stories. Clubs can provide a booth
for food sales, etc. There can be a tree lighting ceremony and an area for a Festival of
Lights, where cars can drive through or people can walk through. This can be
accomplished using commercial sponsorship and offering display opportunities to
various garrison groups. A fee can be charged for entry to the park or individual fees for
different activities.


24. COMMERCIAL SPONSORSHIP AND ADVERTISING: (POC is Gabriele Drechsel,
IMWR-MK-C, DSN 761-1622 or COM (703) 681-1622, e-mail:
Gabriele.Drechsel@us.army.mil.)

   a. On the garrison, the FMD is the authorized office that accepts commercial
sponsorship and advertising monies.

   b. Commercial Sponsorship revenue is to be reported in the department within the
program or programs that actually put on (deliver) the sponsored event/activity.
Expenses incurred to obtain the sponsorship (i.e., long distance calls, postage, travel to

                                            25
                                                                              Enclosure 5
                      FY 11 PROGRAM OPERATING GUIDANCE


meet with potential sponsors, professional training etc.) are to be reported in
Department Code 9G under Program Code RU - Marketing. Expenses incurred that are
directly attributable to delivering the sponsored event are not commercial sponsorship
expenses and are to be reported under the program that actually carries out (executes)
the event/activity.

    c. For FY 11 Commercial Sponsorship Program Budget Guidance. LINK TO ENCL
7, DEPARTMENT CODE 9G “Commercial Sponsorship”

     d. Commercial Advertising revenue generated by the marketing or advertising office
is to be reported in Department Code 9H – Advertising, under Program Code RU –
Marketing. Commercial Advertising revenue is any income generated by selling
advertising space in NAFI publications, media, or other venues, such as banners, signs,
etc., to include electronic formats, i.e., unofficial websites. Report expenses incurred to
complete the sale of commercial advertising (i.e., long distance calls, postage, travel to
meet with potential advertisers, professional training etc.) in Department Code 9H –
Advertising, under Program Code RU – Marketing. If Advertising revenue is generated
for a specific activity, i.e., golf program, the revenue can be reported under the activity’s
program code (i.e., LQ for Golf.)

  e. For FY 11 Commercial Advertising Program Budget Guidance. LINK TO ENCL 7,
DEPARTMENT CODE 9H “Advertising”

     f. In accordance with AR 215-1, Chapter 11, Section I, paragraph 11-4 and Section
II, paragraph 11-12, garrison sponsorship and advertising managers are to complete a
separate annual revenue summary report for the fiscal year, which includes the value of
in-kind goods and services and expenses annually (November 30 due date) on the
sponsorship and advertising programs. The FMWRC Corporate Partnerships Branch
will provide the reporting templates and written guidance for these reports. Garrison
sponsorship and advertising managers should review monthly financial statements for
their programs to ensure the incomes and expenses are recorded IAW matrix.


25. BUSINESS PROGRAMS: (POC is Michael McCoy, IMWR-BO, (210) 424-8599,
e-mail: michael.patrick.mccoy@us.army.mil.)

For FY11 Program & Department Codes, (Click Here)

   a. Family and MWR Club Strategy / Family and MWR – Delivery System
(FMWR-DS): (POC is David Roudybush, IMWR-BO, (210) 424-8571, e-mail:
david.roudybush@us.army.mil)

                                             26
                                                                                Enclosure 5
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The Family and MWR Club Strategy is a holistic approach to Family and Morale,
Welfare and Recreation program delivery and includes far more than the traditional idea
of a military club. The primary goal of the Strategy is to bring like-minded individuals
together in a social setting; while providing an environment conducive to the growth of
esprit de corps, sense of community, and informal Soldier mentoring. FMWR-DS
guidance can be found in paragraph 23.

  b. Family and MWR Business and Action Plan: (POC is David Roudybush,
IMWR-BO, (210) 424-8571, e-mail: david.roudybush@us.army.mil.)

All business operations will develop and implement a business plan, which will include
an action plan, as an annual requirement. These business and actions plans must be
created and stored based on the template within the Family and MWR business plan
development website at http://businessplan.armymwr.com. This business plan must be
complete, support the needs in the local garrison market and specifically support budget
objectives.

  c. Club, Food, Beverage, and Entertainment (CFBE) Operations (POC is David
Roudybush, IMWR-BO, (210) 424-8571, e-mail: david.roudybush@us.army.mil.)

       (1) The goal for FY11 is to refocus our CFBE operations on providing the social
benefits for which they were initially established. Our primary purpose in CFBE
programs is to touch Soldiers’ lives in positive ways, providing opportunities to reduce
stress and have fun. NIBD is a resource that must be managed well in order to
recapitalize facilities and continue to provide social opportunities. As such, Region
Directors are responsible for setting the NIBD goals based on each Installation’s
specific circumstances and requirements.

       (2) Historically, Army-wide, the CFBE budget-versus-actual variances have
exceeded ten percent. In this regard, managers should conduct sufficient research and
planning to ensure budget projections are realistic and attainable.

      (3) Operating managers should compare actual performance in key result areas
(revenue, labor, cost of goods sold, other operating expenses, and NIBD) against
budgeted goals, at least on a monthly basis. Significant variances will be investigated
and corrective actions should be taken. It may be necessary to revise the budget due to
unforeseen circumstances; however, such action should only be taken when fully
warranted.



                                           27
                                                                              Enclosure 5
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       (4) When alcoholic beverage sales exceed 25 percent of snack bar sales, the
operation will set up and account for sales in the Bar Department 01. Components
include all associated costs, expenses, labor, equipment, and inventory.

       (5) Army Family and MWR will operate CFBE activities that represent leading
commercial industry trends by: (a) Properly positioning the business activity, (b)
Creating new business activity models through contracts with name brand restaurants
(Public Private Venture), licensing agreements or franchises, (c) Partnering with
FMWRC Branded Restaurant Operations, (d) Partnering with AAFES.

         (6) It is essential that the correct program and location codes be used to account
for all revenue and expenses in each activity. Program Codes are to be used as
follows:

           KE - Officers Club
           KF - NCO Club
           KG - Community Club
           KL - Stand Alone Branded Restaurant Operation
           LT - Freestanding Snack Bars
           KM - Other CFBE activities; to include facilities used solely for bingo or
catering

       (7) Bingo is accounted for in department E1 under the appropriate program
location unless the facility is used solely for bingo; in which case it will have a program
code of KM, department code E1.

       (8) Locations with catering operations that contribute 25 percent or more of total
food or bar sales from any type of catering function and/or private parties must report
catering income and expenses separately in Department Code 03 for Private Party Bar
and Department Code 13 for Private Party Food.

For FY11 CFBE Transaction Codes, (Click Here)

  d. FMWRC Branded Restaurant Operations: (POC is Brad Puterbaugh,
IMWR-BO, (210) 424-8558, e-mail: brad.puterbaugh@us.army.mil)

Program code KL will be used for all stand-alone FMWRC Branded Restaurant
Operations whose financial activities are not located in or reported as a sub-activity of
another Family and MWR program. All Branded Restaurant Operations, to include
stand-alone (KL) and those reported under another Program code (i.e. Strike Zone in a
bowling center) will use Department Code 26 for food and beverage sales. When

                                             28
                                                                                Enclosure 5
                       FY 11 PROGRAM OPERATING GUIDANCE


alcoholic beverage sales exceed 25 percent of sales the operation will set up and
account for beverage sales in Department 25. Use of Department Codes 25 and 26 is
restricted to FMWRC franchised Branded Restaurant Operations. Department Code F2
– Miscellaneous Sales will be used to record revenue from Branded Restaurant
Operations' promotional items; such; as, T-shirts, caps and mugs.

For Branded Restaurant Transaction Codes, (Click Here)

   e. Golf: (POC is Michael McCoy, IMWR-BP, (210) 424-8599, e-mail:
michael.patrick.mccoy@us.army.mil.)

        (1) Participation is a key indicator in identifying if the golf activity is meeting the
demands of their customers in the delivery of products and services. The actual
participation or “starts” are reported against the activity’s capacity. The capacity is
based on the size of the operation (number of holes) and the number of open days.
Activities shall identify their participation benchmark as part of their annual business
plan. 70 percent is the suggested appropriate benchmark for all Golf Program activities.
Performance against targeted benchmarks will be reported quarterly in conjunction with
the Regions to FMWRC. Consolidated Region submissions shall be provided to the
above POC no later than 30 days after the conclusion of each quarter. For Golf Rounds
Report, Click Here.

        (2) For FY 11, when calculating rounds-played, count all 18-hole, 9-hole, and
twilight rounds as starts without converting to 18-hole equivalents. The total “starts” will
be used for actual rounds played.

        (3) When selling a gift certificate, record the sale by crediting GLAC 267 –
Miscellaneous Other Unearned Income and debiting the appropriate offsetting tender
type GLAC. When the certificate is redeemed, record the sale by debiting 267 and
crediting the appropriate sales GLAC (GLAC 301 - 306).

       (4) Multi-play cards afford the customer another option between paying daily fees
and purchasing an Annual Green Fee. In establishing the “punch cards”, recommend a
discount not to exceed 15 percent from the average daily fee to be used with a
maximum of 10 rounds per card. When issuing a punch/multi-play card, record the sale
by crediting GLAC 267 – Miscellaneous Other Unearned Income and debiting the
appropriate offsetting tender type GLAC. When the punch card is redeemed, record the
sale by debiting 267 and crediting 507 – Guaranteed Participation Income. Note: The
maximum time for a patron to redeem a punch/multi-play card is 12 months from the
date of issue. For extenuating circumstances, such as deployment, an unredeemed
portion may be refunded at the discretion of management. Report unredeemed

                                              29
                                                                                  Enclosure 5
                      FY 11 PROGRAM OPERATING GUIDANCE


punch/multi-play card revenue using GLAC 599 – Miscellaneous Other Operating
Income. The mechanism exists within Golftrac to track and record “punch card” usage
as indicated above.

          (5) Advanced Green Fees (AGF) allows the customer the opportunity to save
money on green fees by paying for the year up front. It is up to the customer to decide
if it is advantageous to pay the annual fee or choose other options. When calculating
the annual fees, a breakeven number of rounds played should be established and used
in conjunction with the respective daily fee (average daily fee if activity offers separate
fees for weekday and weekend). A 30 round breakeven point is recommended as a
baseline. The individual player’s “discount” is a function of the number of rounds above
the breakeven rate they play.

Example: Avg. daily fee of $20 X 30 rounds (breakeven) = $600 AGF

Each year, during the development of the Business Plan, fees are to be reviewed in
terms of current expenses and income requirements. AGF and punch card fees/rates
will be tied to the daily fee structure. There must be a defined period of time that
applies to annual fees. This period will be the same each year. The fiscal year, or the
golf season (1 April-31 March) for those with a winter season, is the recommended AGF
period. Annual green fees will be pro-rated for players initiating AGF payment during
the period. Thereafter, full payment is necessary regardless of when the player actually
choose to renew their AGF.

When advanced green fees are sold, they are to be amortized over the entire period of
the advanced green fee. For example, an annual fee purchased in October for a fiscal
period, would be amortized equally over the remaining fiscal year. Garrisons that have
an unusually abbreviated golf season may amortize equally over the term of the courses
expected opening period. When choosing the amortization period for annual fee
income, management should keep in mind that the annual fee income is to coincide with
or match expenses incurred for maintaining the course. For annual fees, record the
sale by crediting GLAC 262, Dues and Assessments Advance Payments, and amortize
the GLAC 509 monthly, or as appropriate, when received.

       (6) The following department codes will be used by all golf operations:

Department Code 41-Greens Operations. Ensure green fees are reported in the
appropriate GLAC corresponding to the type round played as specified below. Include
course maintenance expenses that may have been previously reported using
Department Code 88 – Property Operation Maintenance and Energy.


                                            30
                                                                               Enclosure 5
                      FY 11 PROGRAM OPERATING GUIDANCE


Department Code 42 – Driving Range. Use GLAC 532 – Driving Range Income, in this
department to report driving range income

Department Code 43 – Use GLAC 533 – Golf Cars/Carts Income, in this department
code to report income from golf car/cart rentals.

Department Code 14 - Snack Bar. When there is snack bar activity.

Department Code 39 – Pro-Shop. When pro-shop activity exists.

Department Code G1 – Administration. Report program management and
administrative operations in department code G1. For all other golf operations, use
above department codes that are applicable.

      (7) General Ledger Account Codes (GLAC) Income Accounts:

GLAC 501 - Service/Recreation Activity Income is among the most commonly used for
golf. There are other specific income GLACs that are available for use under the golf
program such as:

            504 – Rental and Usage Income,
            507 – Guaranteed Participation income (for reporting multiple play-card
income),
           509 – Dues and Assessments Income (for advanced fees),
           531 – Greens Fee Income,
           532 – Driving Range Income,
           533 – Golf Cars/Carts Income,
           534 – Instruction Fee Income.
           599 – Miscellaneous Other Operating Income (use only when none of the
other 500 series GLAC are appropriate to use).

GLAC 502 – Concessionaire Commission Income is used for recording all income and
fees including food, beverage, merchandise, vending and/or amusement machine
income from a concession agreement. When the concessionaire machines are located
in the snack bar, use this GLAC under Department Code, 14 – Snack Bar; if located in
the Pro Shop for example; report the income in Department Code 39 – Sports Specialty
Pro Shop Operations.

Tournament Income or other golf related events are to be reported in Department Code
41, Greens Operations 531 – Greens Fee Income.


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                                                                            Enclosure 5
                      FY 11 PROGRAM OPERATING GUIDANCE


All food and beverage sales within the Golf Program shall be accounted for under an
appropriate food and/or bar department code, e.g., 01, 03, 04, 11, 12, 13, 14, 16, 25, or
26. Do not report food or beverage sales using GLAC 503, or in Department Code 5G –
Special Events.

      (8) Expenses:

Labor should be charged to the department code where the work was actually
performed. In instances where employees work in multiple departments, use
reasonable judgment to appropriately prorate the labor to the department codes that
reflect where the work actually took place. In the case where an employee works 20
percent or less of his/her total hours in several different departments, the employee's
total labor cost is not required to be prorated among the different departments.

Depreciation Expense is to be reported in the department where the asset is used; e.g.,
depreciation expenses of MWR fund owned golf cars/carts are recorded under the golf
program, in Department Code 43 – Golf Cars/Carts.

Other Operating Expenses, such as materials and supply expenses should be recorded
in department codes that appropriately reflect where the materials and supplies are
used. If supplies are purchased by a department then used by several operating
departments, prorate the costs among the appropriate department codes. The intent of
this is to assist is to support management decision making.

For FY 11, in order to more closely align income and associated expenses related to
rounds of golf, golf course maintenance labor and expenses related to maintaining the
playing surface (formerly reported in Department Code 88 (Property Operations and
Maintenance) will be reported in Department Code 41 (Greens Operations). This
change aligns guidance with that for golf courses reporting less than 20,000 rounds
annually. Expenses associated with building maintenance, etc., will continue to be
reported in Department Code 88.

Location codes will not be used as an administrative accounting mechanism because
this distorts the proper accounting of revenue and expenses.

      (9) Enterprise Buys:

Golf Enterprise Buys will be executed at the PGA Merchandise Show, January 2011
and the Golf Course Superintendents Association of America Show, February 2011.
The products will be centrally procured against submitted purchase request, versus


                                            32
                                                                              Enclosure 5
                      FY 11 PROGRAM OPERATING GUIDANCE


purchase using government purchase card. The list below outlines the anticipated
additional Golf Program enterprise buy products for 2011:

Retail                          Supplies                            Maintenance
Titleist Golf Balls             Driving Range Balls                 Grass Seed
Callaway Golf Balls             Hitting Mats                        Fertilizer
Golf Gloves                     Range buckets                       Chemicals

Expansion of centralized buys will continue each year within both the retail merchandise
and golf course supply items

Golf Cars: Golf Cars required in the MWR Business Programs Corporate Strategies
and the Golf Car replacement program will be purchased centrally using NAF contract
NAFBA1-06-D-0022. No installation will directly purchase any type of golf cars that are
covered under the terms or agreements contained in the central NAF contracts and/or
required by the baseline standards. HQ, FMWRC will place the initial delivery orders
against these contracts in the first quarter of the fiscal year.

     (10) For FY11 Golf Program Budget Guidance, LINK TO ENCL 7, PROGRAM
CODE “LQ” Golf.

       (11) For Golftrac Transaction/Billing Codes, Click Here

   f. Bowling: (POC is Ms. Wanda Arthur, IMWR-BP, DSN 761-5202 or COM (703)
681-5202, e-mail: Wanda.Arthur@us.army.mil.)

        (1) Participation is a key indicator in measuring if the Bowling Program activity is
delivering the products and services to meet the customer demand. Activities shall
identify their participation benchmark as part of their annual business plan.
Performance against targeted benchmarks will be reported quarterly in conjunction with
the Regions to FMWRC. Consolidated Region submissions shall be provided to the
above POC no later than 30 days after the conclusion of each quarter. For Bowling
Lineage Report, Click Here.

        (2) When issuing a gift certificate, record the sales by crediting GLAC 267
(Miscellaneous Other Unearned Income) and debiting the appropriate offsetting GLAC.
When the certificate is redeemed, record the transaction by debiting GLAC 267 and
crediting the appropriate GLAC (generally GLAC 301 or GLAC 535/536).

      (3) Labor should be charged to the department code where the work was actually
performed. In instances where employees work in multiple departments, use

                                             33
                                                                                Enclosure 5
                     FY 11 PROGRAM OPERATING GUIDANCE


reasonable judgment to appropriately prorate the labor to department codes that reflect
where the work actually took place. For example, when the same individual who
collects money for the pro shop sales (39), lane fees (45), also works in the snack bar
(14), and their labor hours must be prorated to the appropriate department code based
on the number of hours actually worked. This is necessary to accurately evaluate the
financial activity of different operating departments within the bowling program. In the
case where an employee works 20 percent or less of his/her total hours in several
different departments, the employee’s labor cost is not required to be prorated among
the different departments. It may be reported in total in Department Code G1 –
Administration. Management and administrative employees should report their labor
and associated costs in department codes GL – APF Support-Normal Operations for
Bowling Program Code KA, except NAF costs associated with resale that are to be
reported in G1-Administration. Bowling program code LE administrative and
management employees must be reported in department code G1, except when the
>16 lane bowling program is located at a remote and isolated site (see AR 215-1, Table
5-2), in which case, the guidance in AR 215-1 Table D-1 and the guidance provided in
the frequently asked questions in the UFM section of the operating guidance should be
followed.

        (4) Report depreciation expense for assets in an appropriate department code
that reflects where the asset is used rather than reporting it all in department code G1.
For example, the depreciation expense of bowling lane-dressing equipment is recorded
in Department Code 88 – Property Operations Maintenance and Energy.

       (5) Other Operating Expenses, such as materials and supply expenses should be
recorded in department codes that appropriately reflect where the materials and
supplies are used. If supplies are purchased by a department then used by several
operating departments, prorate the costs among the appropriate department codes.
The intent of this is to assist with management decision making.

         (6) The cost of resurfacing bowling lanes is normally amortized over 24 months.
If it is more realistic to amortize the resurfacing expense for less than 24 months, the
expected life of resurfacing may be amortized over fewer months. The amortization
period, however, may not exceed 24 months. To report lane-resurfacing transactions,
use GLAC 154 – Prepaid Maintenance and Repair, to record the full amount paid in
advance. The monthly expense amortized is reported in GLAC 658 – Equipment
Maintenance and Repair Expense. Consult DFAS 37-1, Chapter 32 GLAC 154 and 658
nomenclature for recording details and normal contra GLAC that are to be used. This
was coordinated with the Defense Finance & Accounting Service.



                                           34
                                                                             Enclosure 5
                     FY 11 PROGRAM OPERATING GUIDANCE


      (7) GLAC 503, Special Events Income is not to be used to report party or
tournament income. Parties usually consist of food & beverage, lineage (games
bowled), rentals, accessories sales, etc. Party contracts in bowling should be broken
down and recorded in the correct reporting departments and GLACS.

       (8) Concessionaire Commission Income is used for recording all income and fees
including food, beverage, merchandise, or other income from a concession agreement.
If a concessionaire operates a food and/or bar operation, use GLAC 502 in the
appropriate Food and Beverage Department.

      (9) For RecTrac Bowling Transaction/Billing Codes, Click Here.

     (10) Location codes will not be used as an administrative accounting
mechanism; such use distorts the proper accounting of revenue and expenses.

       (11) The Bowling Program will participate in the Enterprise Buy Program. The
products will be centrally procured against submitted purchase request, versus
purchase using government purchase card. Bowling pins will be procured through the
Enterprise Buy Program. Addition items may be identified based on aggregate
requirements presented as part of the budget process.

    (12) For FY11 Bowling Program Budget Guidance, LINK TO ENCL 7,
BOWLING.

  g. Recycling: (POC is James Moore, IMWR-BP, (210) 424-8591, e-mail:
James.Albert.Moore@us.army.mil)

The use of GLAC 538, Recyclable Material Income (Grant/Distribution) and GLAC 540,
Recyclable Material Income (MWR Operation), will be limited for use under Program
Code TT- Recycling.

   h. Business Revitalization Program (BRP): (POC is Glenn Pietras, IMWR-BO,
(210) 424-8590, e-mail: glenn.pietras@us.army.mil.)

       (1) The Category C BRP replaces the former Performance Improvement
Program (PIP) and is intended to focus on the importance of increasing participation
and to synchronize with the Family and MWR Club Strategy. The BRP applies a
systematic approach to ensure struggling operations increase programming and
revenue in order to become viable.



                                          35
                                                                            Enclosure 5
                      FY 11 PROGRAM OPERATING GUIDANCE


       (2) Operations are placed in the BRP when annual results are 15% below the
budget approved by the Region Director. Publication of the results will normally be in
the second quarter of the following fiscal year. Operations will remain in the program for
the remainder of the current and entire next fiscal years. At the end of this duration,
each operation will be reviewed for viability. Additional details will be provided under
separate cover.

        (3) Activities in this program will specifically identify and implement actions that
will increase participation by a sufficient amount needed to achieve approved budgeted
goals by the end of that cycle. Focus should be placed on controlling costs while
seeking to increase revenue. Quarterly reviews will be conducted to evaluate progress
in the program.

26. LIBRARY AND INFORMATION SERVICES: (POC is Barbara Christine,
IMWR-CRL, DSN 761-7208 or COM (703) 681-7208, email:
Barbara.Christine@us.army.mil)

    a. The program code for libraries is HA. Libraries are Category A activities which
support readiness and the military mission; professional military and technical education
and training, personal and technical skill development of members of the Army
community; quality of life at home, when deployed or assigned to remote locations;
voluntary education, lifelong learning; family support; transition and career assistance;
relocation assistance; and leisure needs of the military community. Category A
activities should be supported primarily with APF, through the UFM process, with the
use of NAF limited to specific instances where APF support is prohibited by law or
where the use of NAF is essential for the operation of the facility or program.

   b. On post libraries operate using the General Library Information System (GLIS)
which facilitates automated services including book loans/returns, book reserves, and
access to a variety of electronic databases supporting research, life-long learning,
do-it-yourself projects, and child education geared to elementary and secondary school
curriculums. Outreach services are provided through partnerships with other MWR
activities, and for Families in outlying communities, through GLIS Web-based services
available over the “My Library” operation on Army Knowledge Online.

    c. In addition to Family outreach and on post library support, the Army’s GLIS
program also offers virtual library services to expeditionary forces. These services
include the ability to borrow material from GLIS libraries and to access full text
magazines and newspapers, eBooks, downloadable audio books, practice test for
college entrance exams and ASVAB, automotive repair manuals and college research
material for classes, exams, and research papers.

                                             36
                                                                                Enclosure 5
                      FY 11 PROGRAM OPERATING GUIDANCE



   d. For FY11 Library Program Guidance, LINK TO ENCL 7, PROGRAM CODE “HA”
Libraries.


27. SPORTS, FITNESS, AND AQUATICS: (POC is Darrell Manuel, IMWR-CR, or
COM (210) 424-8510, email: darrell.manuel@us.army.mil.) Physical fitness,
Soldier/Unit Sports and Aquatics are Category A programs. They should be supported
primarily with APF, with the use of NAF limited to specific instances where APF support
is prohibited by law or where the use of NAF is essential for the operation of a facility or
program. Programs are structured to maximize Soldier physical readiness, improve
mental well-being and overall fitness. Garrisons should ensure sports, fitness and
aquatics activities are recorded in the correct program codes IAW with the program
codes changes made in FY10:

    a. Program Code HB was renamed “Physical Fitness Facilities” in FY10 and is used
to report activities within dedicated facilities designed, equipped, and staffed to support
Soldier fitness (directed or self-directed) and Unit Sports programs.

    b. Program Code HJ was established to report support provided to Soldier “Aquatics
Training” (CAT A). Aquatics Training enhances Soldier physical readiness and
improves swimming ability and confidence. Aquatic Training includes, Water Survival
Training, Shallow Water Egress Training (SWET), Physical Training (directed or self-
directed physical training) to name a few. Program Code JF will continue to be used for
reporting Recreational Swimming Pools and swimming activities. Recreation Swimming
Pools/Activities are Category B programs and should receive substantial amounts of
APF support. Water parks, spray parks, etc. are Program Code LA, Aquatic Center,
Category C activities.

   c. Program Code: HH Sports/Athletics (directed and self-directed) is a Category A
program providing opportunities for Soldier/Unit intramural athletics and athletic
self-directed activities.

   d. Program Code: JA Sports (above intramural level) is for Category B sports
activities (e.g. Varsity Sports Team, Post Team, Army Ten Miler Team, etc) which are
athletics above unit-level intramural.

   e. For FY11 Sports, Fitness & Aquatics Program Budget Guidance, LINK TO ENCL
7, SPORTS, FITNESS & AQUATICS.



                                             37
                                                                                Enclosure 5
                     FY 11 PROGRAM OPERATING GUIDANCE


28. CONSOLIDATED FITNESS EQUIPMENT PROCUREMENT: (POC is Marlon
Martin, IMWR-CR, DSN 761-1544 or COM (703) 681-1544, e-mail:
marlon.martin@us.army.mil

     a. FMWRC has negotiated NAF contracts for fitness equipment. These centralized
contracts provide additional volume price reductions and stipulated service delivery
efficiencies over and above those available to individual garrisons ordering equipment.
Blanket Purchase Agreements (BPAs) are available for garrison/regional use for
required items not covered under the central contracts for equipment required by the
MWR Baseline standards.

    b. The following guidance is applicable to those garrisons/regions within the IMCOM
structure.

   c. Centralized management and standardization of purchases, and service delivery
methodology are critical aspects of IMCOM’s drive to standardize levels of service
across the Army. The following guidance applies to all purchases of fitness equipment
required by standard:

       (1) Strength Equipment: Specified equipment required in the MWR baseline
standards for Physical Fitness Facilities will be purchased using NAF contract NAFBA1-
07-D-0037 (Nautilus) for selectorized and NAFBA1-07-D-0038 (Life Fitness) for plate
loaded and free weights. FMWRC will place the initial delivery orders against these
contracts in the second quarter of the fiscal year. Additional delivery orders may be
placed by IMCOM Garrisons to meet bona fide out of cycle requirements.

        (2) Cardiovascular/Aerobic exercise equipment: Specified equipment required
by Army Baseline Standards will be purchased using NAFBA1-10-F-0401 (Life Fitness
treadmills & incline trainers) and NAFBA1-10-F-0550 (Precor ellipticals, upright &
recumbent bikes). No installation will directly purchase any type of cardiovascular
exercise machine that is covered under the terms or agreements contained in the
central NAF contracts and/or required by the baseline standards. HQ, FMWRC will
place the initial delivery orders against these contracts in the second quarter of the
fiscal year. Additional delivery orders may be placed by IMCOM Garrisons to meet
bona fide out of cycle requirements.

        (3) Funding: Fitness equipment will be centrally funded. However, in order to
meet requirements of generally accepted accounting principles, equipment must be paid
for by the garrison in order to add it to your sensitive item inventories. Because of this
requirement, HQ, FMWRC will transfer funds to the garrison upon receipt of the


                                           38
                                                                             Enclosure 5
                     FY 11 PROGRAM OPERATING GUIDANCE


receiving report; NFS will then pay for the equipment from funds transferred. This
process will be accomplished automatically without further action from the garrisons.

      (4) General instructions for centrally purchased Equipment under the IMCOM
Bulk Purchase Program:

       (a) Upon placement of the order, the vendor will coordinate delivery date & time
with the Garrison POC. Upon receipt of property, the Garrison POC notifies (e-mail) the
Region/IMCOM Contracting Officers Representative (COR) of receipt of the property.
The COR will process the receiving reports (once invoices are received) and provide a
copy of the invoice to the Region POC. All property purchased under the terms of these
contracts will be recorded on the NAF sensitive item inventory and insured under RIMP
as applicable.

        (b) Maintenance and repair of equipment – You must provide the serial number
of the unit, when requesting a service work order. The primary POC for each Contract
follows:

LIFE FITNESS
10601 W. Belmont Avenue
 Franklin Park, IL 60131

Program Manager for Contract:
Pat Odell, Director, Government Sales
Phone: 301-862-5363, Fax: 301-862-5454
E-mail: pat.odell@lifefitness.com
Equipment: Treadmill, Stair Climber
M&R support --Call: 800-494-6344, press option #3

PRECOR INCORPORATED
20031 142nd Avenue NE
Woodinville, WA 98072-4002

Program Manager for Contract:
Frank Palmer, Gov’t Sales Manager
Phone: 817-429-2407, Fax: 817-561-2564
E-mail: frank.palmer@precor.com
Equipment: Elliptical, upright and recumbent bikes
M&R support -- Call: 888-665-4404, technical support

NAUTILUS GSA (Tactical Fitness)

                                           39
                                                                            Enclosure 5
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6465 Dunbar Dr.
PO Box 1389
Hudson, OH 44236
Phone 1-800-785-9073
E-mail: customersupport@nautilusgsa.com

       (5) Contract Requirements:

        (a) Program Management. The designated POC from the Garrison is responsible
to coordinate with the Contracting Officer and/or FMWRC COR on any issue related to
successful performance of the contract, including coordination of training schedules,
logistic activities, or warranty issues .

       (b) Maintenance and Repairs.

        - 48-Hours response time for equipment under warranty.

        - Installation of parts will be completed within three (3) calendar days after
vendor notification.

        (c) Contractor Logistical Support. Contract requires the vendor to provide inside
delivery and set-up in CONUS upon request. Most deliveries are performed by
qualified subcontractors, any issue with a subcontractor must be reported to the
Contract vendor POC and the FMWRC COR.

       (d) Training. Contractor and FMWRC will coordinate training dates and
locations with contractors.

       Contracting Officer: Caydra Speed, FMWRC NAF Contracting Directorate
(IMWR-NCA), 4700 King Street, Alexandria, Virginia 22302-4415. Tel (COM) (703)
681-5306, DSN 761-5306; FAX (703) 681-5362/63; e-mail: caydra.speed@us.army.mil.

       Contracting Officer’s Representative: Marlon Martin, Program Manager, Soldier
Programs & Community Recreation, COM) (703) 681-1544, e-mail:
marlon.martin@us.army.mil.


29. RECREATION CENTERS: (POC is Kris D. Alessandro, IMWR-CR, DSN 761-7204
or COM (703) 681-7204, email: Kris.DAlessandro@us.army.mil.)



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    a. Program Code HC Recreation Centers are Category A activities which deliver a
full range of social, educational, cultural, and recreational opportunities to the military
community to promote mental and physical fitness. Installation Recreation Centers
provide a single location for recreation and leisure activities/facilities such as special
events, meeting rooms, internet cafes, online gaming, big screen TV/DVD viewing,
board games, chess, darts, poker, billiards and food and beverage operations.
Recreation Centers have the possibility to explore all kinds of organized programs such
as cooking, languages, tours, tournaments, leagues, large special family events, BOSS
lounge/office and partner events with the local economy and other Community
Recreation programs.

  b. For FY11 Recreation Center Program Budget Guidance, LINK TO ENCL 7,
PROGRAM CODE “HC” RECREATION CENTERS.


30. BETTER OPPORTUNITIES FOR SINGLE SOLDIERS (BOSS): (POC is Joanne
Geer, IMWR-CR COM (210) 424-8495, email:joanne.geer@us.army.mil.)

    a. Program Code QD was renamed to BOSS in the FY10 FMWRC Program
Operating Guidance. BOSS is a Category A MWR activity which supports single
Service member concerns such as morale, living environment, personal growth, and
development. BOSS has three primary types of programs which are referred to as
pillars; they are Quality of Life, Community Service, and Recreation and Leisure.

    b. The APF support provided via the UFM process is to be reported in accordance
with the UFM accounting procedures for Department code GL. Department Code 9F is
to be used for BOSS NAF activity. Any revenue in the BOSS program, for example
GLAC 503 – Special Events Income or GLAC 553 – Commercial Sponsorship Income,
is intended for the benefit of the Single Soldier. Revenue generated by the BOSS
program during a given fiscal year will be made available to the program until executed
in accordance to the BOSS budget plan. The BOSS treasurer and MWR BOSS Advisor
will compile budget information. Prior to submission, the BOSS president and the MWR
BOSS Advisor will conduct a final review. Once approved, the BOSS program budget
will be submitted as part of the garrison MWR program total submission.

   c. The BOSS executive council will recommend approval of all procurement
requests. All requests must be forwarded to the MWR Advisor for processing of final
approval and signature. Soldiers will not sign procurement documents.

A frequently asked question (FAQ) from BOSS managers and participants:


                                            41
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                      FY 11 PROGRAM OPERATING GUIDANCE


Question: "We are developing next year's NAF Annual Operating Budget (AOB) input
and my Financial Management Division Chief tells me I cannot plan a dinner and dance
for participants next November because there is not enough NAF funding available for
BOSS. However, I know we have earned at least $5,000 during the year and I have
spent only about $3,500 through September, so where does the balance of the money
go, and why can't I plan to use the unspent amount ($1,500) next year?"

Answer (two parts): First, accounting for Army NAF follows the Generally Accepted
Accounting Principles (GAAP). At the fiscal year end (30 September), NAF income and
expense balances are moved to retained earnings on the Balance Sheet. This is a
standard bookkeeping entry that does not affect the cash in the bank. At 1 October, the
opening income and expense balances on the Income Statement are set back to zero.
This is why we hear, "at the end of each fiscal year all income and expenses of the
BOSS activity lose their identity."

Second, MWR BOSS program managers, through the FMD, provide input using the
Annual Operating Budget (AOB) and Capital Purchases and Minor Construction
(CPMC) budget process, then make overall funding decisions based on the total
resources available. To assist with competing for NAF funding in the new FY, the MWR
BOSS programmer needs to develop a "Sub-Ledger" to track the on-going financial
transactions of the various BOSS activities (ask for assistance from the FMD for setting
up and maintaining a "Sub-Ledger" record). The Sub-Ledger will aid in determining
what activities were most financially successful, and will make it easier to budget future
activities. The sub-ledger record should be reconciled monthly with the MWR fund's
BOSS income statement (Department Code 9F).

Note that in accordance with HQ IMCOM guidance, IMCOM Garrison MWR BOSS
program managers will maintain the described sub-ledgers. In addition, IMCOM
garrisons will ensure that funds are available for use by BOSS in instances where
BOSS income generating activities/events occur in one fiscal year, but the expenditure
is planned for/ budgeted to occur in the next fiscal year.

Finally, the best way to maintain and make use of BOSS NAFs is to strive for a
realistic/detailed budget coupled with on target budget execution. Rather than
requesting that BOSS NAFs be “fenced”, think in terms of planning, budgeting and
executing your budgeted activities. Remember; “Hope is not a method” and that there
is no substitute for good planning and budget execution.


31. WARRIOR ZONES: (POC is Kris D. Alessandro, IMWR-CR, DSN 761-7204 or
COM (703) 681-7204, email: Kris.DAlessandro@us.army.mil.)

                                           42
                                                                              Enclosure 5
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   a. Program Code WZ, Warrior Zone, is a Category B MWR activity; a multi-purpose
facility where junior enlisted personnel can socialize and participate in individual and
competitive activities. The authority for Warrior Zones is based on the establishment of
Service Member Techno-Activity Centers (Techno Centers) as a new Category B
Morale, Welfare and Recreation Program by the Department of Defense in November
2009.

    b. Services may include recreational and competitive activities using state-of-the-art
platforms (arcade, audio, console, handheld, online gaming, and PC) for a variety or
genres (action, adventure, role playing, simulation, sports, computer gaming,
tournaments, and strategy). It may also include state of the art sound and lighting for
commercial, high tech entertainment and sporting events, Wi-Fi access, special events,
social activities, and meeting space. The nature of the WZ activities, with their focus on
state of the art entertainment and gaming, differentiates the program from Category A
Recreation Center programs. While targeted at junior enlisted personnel, the center
should be configured to accommodate diverse service and designed with sufficient
flexibility to allow modifications based on changing technology. Food and beverage
elements are Category C activities and should be recorded in department codes 01 or
14 as appropriate. Slot machines are not permitted. Patronage is restricted to enlisted
personnel and their accompanied guests, 18 years of age and older.

    c. Consistent with DoD Instruction (DODI) 1015.10, Category B activities have a
limited ability to generate revenues. Consequently, Warrior Zones are authorized APF
IAW the guidance in AR215-1 for Category B programs.

  d. For FY11 Warrior Zone Program Budget Guidance, LINK TO ENCL 7,
PROGRAM CODE “WZ” WARRIOR ZONES.

32. COMMUNITY ACTIVITIES CENTER (CAC): (POC is Kris D. Alessandro,
IMWR-CR, DSN 761-7204 or COM (703) 681-7204, email:
Kris.DAlessandro@us.army.mil.)

CACs were designed to provide a wide array of MWR programs within the same
physical facility. Within the facility each program’s funding authorization, budgeting and
reporting is to be treated as the program is in a stand-alone facility. While the initial
concept primarily focused on the housing of recreation centers, outdoor recreation
programs, arts and crafts centers which are all Category A and B programs, the concept
has expanded in recent years to include some Category C programs. Inclusion of
Category C programs does meet the intent of the CAC concept but the inclusion of
these types of programs requires management to ensure funding authorizations are not

                                            43
                                                                              Enclosure 5
                       FY 11 PROGRAM OPERATING GUIDANCE


violated. Management is reminded that the CAC is not a separate MWR program but
refers to the facility. There are multiple programs collocated within a CAC, each
program must use its respective program code for all financial reporting. There is no
program code for a CAC.


33. LEISURE TRAVEL SERVICES (LTS): (POC is Dan Yount, IMWR-CR, COM (210)
424-8758, email: Dan.Yount@us.army.mil.)

   a. Program Code LS – Commercial Travel is no longer a valid program code based
on a change to the DoDI 1015.10, 9 Jul 09. All Leisure Travel Services revenues
should be coded under Program Code KD.

    b. Program Code, KD - Leisure Travel Services is to be used to report financial
activity generated by traditional ITR services such as arranged group tours regardless
of individual components of the activity, hotel reservations, drive package tour
arrangements, tour service/handling fee income, scenic rail arrangements, as well as
vacation travel arrangements that are incidental to the ITR operation – for example
cruises, package vacations, and specific air travel arrangements made in conjunction
with ITR vacation packages bookings. In addition, revenue from non-incidental
commercial travel services are to be recorded in Program Code KD beginning in FY11.
At this time only Fort Jackson, SC, and Fort Monmouth, NJ are the only two offices
operating non-incidental commercial travel services.

    c. As a reminder, ensure that only the mark-up is recorded for the consignment
ticket(s) sold, and not the entire ticket price, using GLAC 550 – Consignment Income.

    d. Commercial Travel Contracts: The CONUS garrison MWR activities that
currently contract to provide on post leisure travel offices are urged to evaluate their
future need for contracted leisure commercial travel services. Morale, Welfare and
Recreation managers should review volume of sales handled by the contractor,
including the cost of providing facilities and utilities to the contractor, the availability of
off post agencies and online web sites, compared with current concession fees paid to
the MWR NAFI. Recent data indicates more than 60% of soldiers acquire their airline
travel arrangements either online or from other off post sources. It has been proven
that ITR offices are capable of providing key non air services, for example, cruises,
vacation packages, and lodging reservations, at less cost to the soldier and with
substantially greater net income to the NAFI than from using commercial travel offices.
Where a NAFI has contracted commercial travel services and from which contracts fees
are derived, such fees will be recorded using Program Code KD and GLAC 541


                                              44
                                                                                  Enclosure 5
                      FY 11 PROGRAM OPERATING GUIDANCE


(Commercial Travel Office Commission Income) and Department Code B7 (Tours and
Travel Services).

    e. Baseline Recreation Standards cite an ITR/MWR role to assist patrons in booking
their own air travel arrangements. The standards were created with the current
circumstances in mind, and with an assumption that competing financial factors would
eventually price commercial travel contractors off military garrisons. For FY11, MWR
program and financial managers should plan and budget for an end to Commercial
Travel Contracts: ITR offices that have not yet done so should initiate cruise sales
programs. As revenues increase, NAFIs should employ qualified travel agents to
support sale of cruises and other non-air services with full commission adhering to the
ITR office. Current ITR managers and staff should attend training that will qualify them
to provide non-air travel services which will increase NAF earnings.

   f. Equipment: Garrison ITR offices which have not yet done so, should budget to
purchase a BOCA Thermal Ticket Printer (Specifications: Micro 22/42 Boca thermal
Ticket Printer, 8ips, 203DPI/2”+, Label/Ticket, No Cutter, Heavy Duty, High Volume
Network Printer). This printer will produce vouchers and tickets with most input entered
via a scanned bar code, resulting in significant labor productivity savings and a superior,
more professional appearing product for the customer. The process will also support
automatic printing of non-reserved General Admission tickets on-demand, thereby
saving garrisons the cost of acquiring pre-printed tickets from outside vendors.
Minimum requirement to use the printer system of RecTrac Version 10.1. The Army,
Navy and Marine Corps anticipate conversion of major national ticket suppliers from
“hard” tickets maintained in inventory, to tickets produced via a link to the vendor’s
commercial website(s) via interface with RecTrac. The intent is to eventually eliminate
one hundred percent of pre-printed ticket stock, thereby eliminating the requirement to
conduct extensive monthly inventories of all tickets.

  g. For FY11 Leisure Travel Services Program Budget Guidance. LINK TO ENCL 7,
PROGRAM CODE "KD” LEISURE TRAVEL SERVICES,


34. OUTDOOR RECREATION. (POC is Mr. John O’Sullivan, IMWR-CR, DSN 761-
5373 or COM (703) 681-5373, e-mail: john.osullivan@us.army.mil.) The purpose of the
program operating guidance for Outdoor Recreation (ODR) programs is to ensure all
ODR programs report in a manner reflective of DOD and Army policy.

   a. The Outdoor Recreation (ODR) program can involve many diverse program
elements and categorizations within an ODR organization. The overall ODR


                                            45
                                                                              Enclosure 5
                     FY 11 PROGRAM OPERATING GUIDANCE


organization will involve programs, facilities and financial management in some
combination of the following:

      (1) Category A: (HF) Parks & Picnic Areas

      (2) Category B: (JE) General Outdoor Recreation; (JK) Small RV
Parks/Campgrounds; (KB) Marinas without Private Berthing; (KC) Equipment Checkout
Program; (KJ) Stables without Private Stalls

       (3) Category C: (KK) Large RV Parks and Campgrounds; (LA) Aquatic Centers;
(LF) Recreational Lodging; (LG) Marinas with Private Berthing; (LH) Skating Rinks (Ice
or Roller) Free Standing; (LK) Stables with Private Boarding Stalls; (LL) Rod & Gun;
(LM) Parachute/Skydiving; (LP) Flying; (LW) Recreational Equipment Rental/Sales

    b. Warrior Adventure Quest (WAQ). Approved programs will receive funds
distribution from FMWRC. The memorandum announcing the distribution will include all
financial reporting requirements.

   c. Waterfront Operations, those activities associated with lake fronts, river and
ocean beaches, are authorized to be reported using Department Code 50 – Waterfront
Operations, under Outdoor Recreation program codes:

      (1) HF – Parks & Picnic Areas (Category A).

      (2) JE – Outdoor Recreation Program General (Category B)

       (3) JK - Small Travel Camps/Campgrounds (Category B)

   d. Aquatic Centers/pools will continue to report under Program Code LA – Aquatic
Centers (Category C) using the department codes that currently exist.

   e. Sport Shooting facility operations are reported under Program Code LL – Rod &
Gun (Category C). Non facility based Rod & Gun-type activities may be reported under
JE using an appropriate department code such as 44 (Instruction Fees), 59 (Hunting),
5C (Fishing), etc.

    f. Equipment Checkout: See AR 215, Chapter 8-25, Para 5, for defined differences
between equipment checkout (Category B) and equipment rental (Category C). Note
that Department 60 (equipment issue) can be used to identify/report Category B
program support elements within outdoor recreation in program codes JE or KC.


                                          46
                                                                           Enclosure 5
                        FY 11 PROGRAM OPERATING GUIDANCE


    g. Travel Camp/RV/Campground Definitions: See AR-215-1 (8-25, e) for
descriptions of small and large RV campgrounds. Camp space refers to designated
campsite, RV site, or shelter site (e.g. cabin or cabanas), supported with tent pad, RV
pad, or shelter, parking space (for POV), equipment (e.g. picnic table, BBQ grill, lantern
stand, etc.), and individual utility hook-ups. Utilities are all inclusive electrical, potable
water and sewage (either direct connection or supported with on-grounds dump station).

        (1) JK Small Campground (Category B) : Has less than 100 camp spaces (as
defined above). A greater number of primitive campsites (don't fully meet "camp space"
definition), or inclusion of shower and washhouse facilities will not otherwise cause a
change in category.

         (2) KK Large Campground (Category C): Has 100 or more camp spaces (as
defined above). Grounds, at minimum, are supported by shower and washhouse
facilities.

    h. Recreational Lodging. The appropriate Program Code for Category C
Recreational Lodging is LF (Cabins, Cottages and Recreational Guesthouses). Based
on a datacall issued jointly by Soldier & Community Recreation and Business Initiatives
group in June 2009, the following Category C Recreational Lodging definitions were
established:

         (1) Stand-Alone Lodging

         (a) Cabins-small, usually wood structures that are typically found in rural/resort
areas.

      (b) Cabanas-small structure most commonly built in tropical climates near
bodies of water.

       (c) Cottages-typically a rural or semi-rural location and may have a second
upstairs level.

     (d) Manufactured/Modular Homes-also known as prefabricated housing, it is
assembled in a factory and then transported to the intended site. They are offered in
many bedroom and bath configurations.

         (2) Multiple-Unit Lodging

     (a) Lodge - a rustic accommodation that has a more rural location that may be
themed such as (mountains, beach, etc.).

                                              47
                                                                                 Enclosure 5
                      FY 11 PROGRAM OPERATING GUIDANCE


       (1) Standard room provides the basic amenities that travelers need usually in a
one or two bed configuration.

        (2) Suite room designed for maximum comfort usually has a separate
sitting/sleeping/dining area.

      (b) Hotels are a multi-room structure usually offering travelers a variety of room
types with different levels of service.

      (1) Standard room provides basic amenities travelers need usually in a one or
two bed configuration.

     (2) Suite room designed for comfort with separate areas for rest and relaxation.
Room configurations usually contingent on the level of service being offered.

       (c) Apartments are a multi-room structure that can provide a variety of floor-
plans based on the needs of the traveler and typically in one, two and three bedroom
arrangements.

      (1) Standard Town Homes - typically a terrace or row house that is usually
narrow with multiple floors.

       (2) Deluxe Town Homes - the same as a standard but with unique architectural
features and possibly more amenities such as crown molding, stainless appliances, etc.

       (3) Studio - a particular type of small apartment that is usually occupied by only
one to two people.

       (4) Duplex – a particular type of apartment that has two units or levels and many
times in a two-story configuration.

       Occupancy is a key indicator in identifying whether a Recreational Lodging activity
is meeting the demands of their customers. Occupancy percentages should take into
consideration the number of rooms and the number of days per year the facility is open.
Activities shall identify their occupancy benchmark as part of their annual business plan.
The Recreational Lodging Quarterly Datacall will assist in tracking occupancy rates and
will be distributed in July. Regions will collect the datacalls and forward to the above
POC no later than 30 days after the conclusion of each quarter.




                                            48
                                                                              Enclosure 5
                      FY 11 PROGRAM OPERATING GUIDANCE


    CAT C Recreational Lodging will participate in the Enterprise Buy Program. The
products will be centrally procured against submitted purchase request, versus
purchases made using a government purchase card.

  i. FOR FY11 Outdoor Recreation Program Budget Guidance, LINK TO ENCL 7,
COMMUNITY RECREATION.


35. ARTS & CRAFTS PROGRAM: (POC is Linda Ezernieks, IMWR-CR, DSN
761-7754 or COM 681-7754, email: Linda.Ezernieks@us.army.mil.)

    a. The Arts and Crafts Program is a Category B MWR activity, provides educational,
self development activities that advance technical knowledge and skills and offer
opportunities for creative growth. Activities may be offered in a dedicated Arts and
Crafts facility with tools and equipment set up in a studio environment or in other types
of recreational facilities on the garrison.

    b. Resale services and supplies offered in arts and crafts facilities are in support of
skill development programs offered. Net income from resale items should be
maximized, however COGS for resale items should be budgeted realistically.

   c. Structured classes at different skill levels, workshops, demonstrations, and
exhibits should be offered in addition to the open shop studio environment. Standard
Department Codes use by Arts and Crafts are 34-Arts and Crafts Materials, 91-
Woodworking, 92-Photography, 93-Multicrafts, 96-Engraving, 97-Screen Print Shop, F1-
Miscellaneous, F2-Misc Sales, G1-administration, GL-APF Support-Normal Operations,
GF-APF Support-Expanded Operations, GH-APF Support-Security and GJ Emergency
Essential Civilian.

   d. Labor should be charged to the department code where the work is performed. If
an employee works in multiple departments, the labor should be prorated among
departments. Expenses for tools and supplies should be charged to the department
where they are used. Managers should budget for awards for local arts and crafts and
photo contests.

  e. For FY11 Arts and Crafts Program Budget Guidance, LINK TO ENCL 7,
PROGRAM CODE “JB” ARTS AND CRAFTS.


36. AUTOMOTIVE SKILLS PROGRAM: (POC is Linda Ezernieks, IMWR-CRDSN
761-7754 or COM 681-7754, email: Linda.Ezernieks@us.army.mil.)

                                             49
                                                                                Enclosure 5
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   a. The Automotive Skills Program is a Category B MWR activity, provides garage
type facilities, equipment, technical instruction, skilled assistance and problem solving
services. The primary focus of the program is to develop individual skills and to provide
a self-help alternative to commercial repair garages. Incidental repair services for a fee
may be done as a resale operation on a space available basis when it does not interfere
with the skills program. Structured classes in basic auto repair and maintenance should
be offered in addition to the self help open shop program. Automotive personnel should
make every effort obtain ASE certification.

   b. Standard Department Codes used by Automotive Skills are 94-Auto Shop, 35-
Auto Parts, 9E-Auto Stripping Operations, 95-Car Wash Operations, F1-Miscellaneous,
F2-Misc Sales, G1-administration, GL-APF Support-Normal Operations, GF-APF
Support-Expanded Operations, GH-APF Support-Security and GJ Emergency Essential
Civilian.

   c. Labor should be charged to the department code where the work is performed. If
an employee works in multiple departments, the labor should be prorated among
departments. Expenses for tools and supplies should be charged to the department
where they are used.

    d. A separate Category C automotive service garage may be established (per
guidance in AR 215-1, Chapter 8-10, paragraph b (18)) if a demand exists beyond
incidental repair and maintenance. AR 215-1 permits authorized patrons to use the
Automotive Skills facility to inspect and perform mechanical work on a vehicle they plan
to purchase. Resale services are offered in support of the auto skills program and
should be equal to or less than offered outside the garrison. COGS in Automotive Skills
facilities which have resale operations should be budgeted realistically and should never
exceed 100%.

  e. For FY11 Automotive Skills Program Budget Guidance, LINK TO ENCL 7,
PROGRAM CODE “JC” AUTO CRAFTS.


37. CYS SERVICES BUDGET GUIDANCE: (POC is Ed Fowler, IMWR-CYS, COM
(210) 424-8486 e-mail: ed.fowler@us.army.mil)

   a. Family Child Care (FCC) Subsidies. Garrisons should continue to use current
garrison FCC Subsidy process and rates to start FY11. During first quarter FY11
garrisons will receive additional guidance for implementation of centrally funded
subsidy.


                                           50
                                                                             Enclosure 5
                     FY 11 PROGRAM OPERATING GUIDANCE


    b. MWR Partnerships’ designated pilot sites will budget for labor and operating
expenses using the program/department codes outlined below. Any garrison wishing to
begin an MWR Partnership program must receive approval from Region/FMWRC-CY
prior to budget submission.

   (1). The department code to budget for labor/benefits and associated operating
expenses (travel, training, supplies) for oversight of the MWR Partnerships is GL-APF
Support – Normal Operations.

    (2). When reporting pure NAF income from fee collection use GLAC 501 –
Service/Recreation Activity Income. When reporting pure NAF expenses for the MWR
Partnership program operations where services are procured from another MWR
program on the garrison the costs are to be budgeted and reported using GLAC 798 -
Intrafund Transaction Expense within the following:

   i In Youth Services, use program code JM-Middle School / Teen Programs
(MS/Teen) and department code 7L-Recreation/Activity.

   ii In School Age Services, use program code QL-School Age Services (SAS) and
department code 7Q-Before/After School Care.

Additionally, the MWR program providing the service will report the income received
from CYS Services as GLAC 598 – Intrafund Transaction Revenue.

   (3). For Neighborhood Activity Homes, budget for labor and operating expenses at
every garrison unless participation is nonexistent. Budget using program code JM-
Middle School / Teen Programs (MS/Teen) and department code 7L-Recreation/Activity.

    (4). For Child Development Homes, 24/7 Homes, and permanent Short Term
Alternative Child Care (STACC) sites, budget for labor and operating expenses using
program code JG-Child Development Center Programs (CDC) using department code
7C-CYS Options / Support. Garrison Child and Youth Services (CYS) programs with
unmet demand must plan to operate at least one CD Home.

    (5). For new facilities, budget labor and operating expenses using the following
information as provided in NETCALL 2008-128 SUBJECT: Staffing Requirements for
Newly Constructed Child, Youth & School (CYS) Services Facilities:

Time                         Event
18 Months from Opening       Develop staffing needs for the new Facility-staff needed for
                             each room, percent of part time, full time and FLEX,

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                                                                           Enclosure 5
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                              determine the staffing schedule. (CYS)
12 Months from Opening        Develop and implement a hiring action plan to transition to
                              the new setting. (CYS and HR)
6 Months from Opening         Establish a transition team to include current Coordinator,
                              Directors, Trainers, Program Operations Specialist, and
                              HR staff. Begin marketing initiative to recruit new staff.
                              Arrange for “job fairs” etc. (CYS and HR)
4 Months from Opening         New managers on-board. Training of new managers
                              begins.
3 Months from Opening         Notify current staff and new hires who will move to the new
                              Facility. Interview and hire for new direct in-ratio positions.
                              Finalize staffing patterns to include pairing of new and
                              current staff.
1-2 Months from Opening       Train new staff using modified Individual Development
                              Plan.

   (6). Army Family Covenant (AFC) expenses (those designated in matrix at ENCL 7)
should be considered baseline requirements. In FY11, an estimated allocation for AFC
requirements will be included in the annual CYS Services Annual Allocation. Budget
expenses using department code GF-APF Support Expanded Operations using Child
and Youth program codes QA, QB, QC. The Army Family Covenant reporting tool (AFC
Tool) will continue to be completed monthly for these expenses. Garrisons should
ensure expenses in both the AFC Tool and SMIRF financial records are reconciled.

   (7) SKIESUnlimited supports both Child and Youth Programs. SKIES is supported
by MDEP QCYS and executed through UFM budget for SKIESUnlimited in program
code PG-Outreach Services CDS (OS-CYS).

   (8). For FY 11 Child Development Services Program Guidance, see CHILD AND
YOUTH SERVICES OVERVIEW and CHILD DEVELOPMENT SERVICES (CDS) and
SCHOOL AGE SERVICES (SAS) matrices at LINK TO ENCL 7. These matrices
provide standardized department codes for all CYS programs. Budgeting/reporting any
department code other than those listed on the matrices require prior coordination with
FMWRC-CY. These standardized codes are to ensure continuity and uniform reporting
within these program areas throughout Army MWR.

    (9). For FY 11 Youth Services Program Budget Guidance, see YOUTH SERVICES
(YS) matrix at LINK TO ENCL 7. This matrix provides standardized department codes
for all CYS programs. Budgeting/reporting any department code other than those listed
on the matrix require prior coordination with FMWRC-CY. These standardized codes


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                     FY 11 PROGRAM OPERATING GUIDANCE


are to ensure continuity and uniform reporting within these program areas throughout
Army MWR.


38. ARMY VOLUNTEER CORPS : (POC is James Boelens, IMWR-FP, (210) 242-
8555, e-mail: sharon.g.fields@us.army.mil

All Family and MWR organizations using volunteers, including Army Community Service
(ACS), Army Family Action Plan (AFAP), and Army Family Team Building (AFTB)
should program NAF for appropriate volunteer recognition expenses and
reimbursement of volunteer incidental expenses. Volunteers authorized by 10
USC 1588 may be reimbursed for certain incidental expenses associated with
their volunteer service. Although volunteer reimbursement may be made from either
APFs or NAFs, it is preferred that the funding source for reimbursements be linked with
the funding source of the program. Typically volunteers may be reimbursed for training,
travel, mileage, parking, telephone, and child-care expenses. See AR 215-1, 5-13 m
(6). Volunteers from the local area may at times be authorized reimbursement for
meals when supporting a conference concerning Army Family programs or quality of
life/well-being issues. Expenses such as certain meal surcharges incurred as a result of
voluntary services, reimbursements of volunteers in the Reserve Components, and
methods to reimburse child care expenses using NAFs are established in AR 215-1.
Recognition programs may include mementos, identifying insignia such as pins
and nametags, recognition ceremonies to include food and beverages for those
being recognized, and distinctive clothing and promotional items. NAF may
only be used when APF are not authorized or not available. See AR 215-1,
para 5-13,a(3), d (1)(a), m, and q for additional information.


39. ARMY COMMUNITY SERVICE:

    a. Appendix J to AR 608-1 provides general guidance on the operation of the NAF
FRG Supplemental Mission Activity. NAF department code “9J” has been created as
the General Ledger Account Code (GLAC) to meet financial reporting requirements.
The Installation Management Command’s Letter of Instruction for managing the FRG
Supplemental Mission Activity has been published (IMWR-FP, Subject: Letter of
Instruction (LOI) – Family Readiness Group (FRG) Supplemental Mission Activity, 14
March 2007) along with IMWR-FMC NAF Financial Management Memorandum 07-01,
subject: New Department Code – Family Readiness Groups, 26 April 2007. NETCALL
2009-05, Subj: Family Readiness Group Program Funding Guidance, was published 2
February 2009 to clarify FRG funding practices. In FY11 ACS will reimburse CYSS for
child care provided for official FRG meetings, regardless of the units' status in the

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                    FY 11 PROGRAM OPERATING GUIDANCE


ARFORGEN cycle. Units desiring to utilize this program will coordinate with the
supporting ACS to provide cost estimates and meet accounting requirements. Billable
hours will not exceed more than three hours per month per child. IMCOM provides child
care through CYSS to encourage attendance at official monthly FRG meetings in
support of the FRG mission to disseminate command information. POC is Kathy
Ledbetter, IMWR-FP, DSN 761-1429 or (703) 681-1429, e-mail:
Katherine.quinn.ledbetter@us.army.mil.

    b. Soldier and Family Assistance Center Donations Management Letter of
Instruction was published 27 May 2008 and may be accessed at
www.armyonesource.com. Donations to Soldier and Family Assistance Centers
(SFACs) are centrally managed through the FMWRC Family Programs Directorate but
may also be completed by the individual using the Gifts to the Army link on
www.armyonesource.com. Questions about donations supporting Wounded, Ill and
Injured Soldiers and their Families may be directed to Charles O'Leary, SFAC Program
Manager, (210) 424-8566, e-mail: charles.oleary1@us.army.mil.

     c. Eligibility for Exceptional Family Member Program (EFMP) respite care funding
will be based on EFMP enrollment and exceptional Family member’s medical or
educational condition. Qualifying Families are eligible to receive up to 40 hours of
EFMP respite care monthly for each certified exceptional Family member. If additional
hours are needed, the Army Community Service (ACS) Director may submit an
electronic request for exception to policy through their IMCOM Region to Family and
Morale, Welfare and Recreation Command (FMWRC). Installation ACS staff must use
the Family Services Needs Matrix to determine allowable hours and cost per month.
The EFMP Respite Care Tracking Sheet must be received by FMWRC no later than the
5th working day of each month (for the previous month). POC is Sharon Fields, IMWR-
FP, DSN 761-6244 or COM (703) 681-6244, e-mail sharon.g.fields@us.army.mil.




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                                                                          Enclosure 5