Block 2 Flashcards
The Air Force Services Activity (AFSVA)
a valuable tool for the successful operation of sustainment activities. This portal serves as a communication platform to share best practices, find solutions, and locate operational instructions.
APF and NAF
Examples of NAFs include the Morale, Welfare, and Recreation (MWR) fund and Army and Air Force Exchange Service (AAFES) dividends.
NAF
- Public Law (10 U.S.C. 2783)
- Commercial Accounting
- Budgeted annually with quarterly updates
APF
- Public Law (10 U.S.C. 2783)
- Governmental Accounting
- Budgeted in Future Years Defense Program
Funding Categories
-Category A
These activities generate little revenue and are funded with 100% APF. They include Library, Fitness Operations, and Community Centers.
Funding Categories
-Category B
These activities have limited ability to generate revenue and are funded with 50% or more APFs.
NAF Budgets
-NAF Requirements Budget
The NRB is a long term (5-year) capital purchase plan for big ticket items. Managers identify their needs, indicating the cost and the quarter in which they want to purchase items.
NAF Budgets
-Cash Flow Budget
: Basically, it is a way of making sure you can afford and have sufficient cash flow to cover the planned operations.
NAF Memorandum of Agreement (MOA)/Memorandum of Understanding (MOU)
-NAFIs are authorized by law to contract with the federal government. The government can ask the NAFI to perform certain functions and then pay the NAFI for the services. This contract between the government and the NAFI is known as a NAF MOA/MOU. NAF MOAs/MOUs are only suitable for functions authorized by APFs because the government pays for the services using APFs. The wing is typically interested in using NAF MOAs/MOUs because they can save APF funds. It is more costly and time-consuming to hire APF personnel versus NAF personnel.
The 4 certain criteria for a MOA/MOU to exist between the AF and the NAFI:
- Make good business sense
2. Beneficial to both the NAFI and the AF
3. The good(s) and/or service(s) provided are inherent to NAF internal operations
4. Creates no additional cost or degradation of service
Commander’s NAF Sustainment Program/NAF Council
The purpose of the NAF councils is to help commander’s execute their NAF sustainment program.
Base NAF Council
The NAF council meets quarterly to approve the financial budgets for the following quarter and proposed NAF Requirements Budget (NRB) purchases based on the cash flow projection. The NAF council also discusses and approves fees.
NAF Financial Policies and Guidance
An important principle behind NAF financial management is NAFs can only be spent when APFs are not authorized.
The Accrual Method of Accounting
This method is used to account for NAFs. The principle behind this method is the revenue is recorded when it is earned.
The Accounting Equation
- Assets are “what we own”
- Liabilities are “what we owe”
- Fund Equity is thought of as our “net worth”
NAF Activity Business Plan
-Part 2 Situation Analysis
Situation Analysis: A common method for assessing the situation is conducting a strengths, weaknesses, opportunities, and threats (SWOT) analysis.
NAF Activity Business Plan
-Part 3 Mission Statement
: Review the Mission Statement to ensure it adequately defines the mission and vision of the activity.
NAF Activity Business Plan
-Part 5: Business and Marketing Objectives
This section contains the marketing and business goals and objectives for the plan.
NAF Activity Business Plan
-Part 6: Marketing Strategies
Just know this part exists
NAF Activity Business Plan
-Part 7: Evaluation
Review this part to ensure the business plan is viable.