DoD Financial Management Regulation Volume 13, Chapter 7
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7-1
SUMMARY OF MAJOR CHANGES TO
DoD 7000.14-R, VOLUME 13, CHAPTER 7
“FINANCIAL REPORTING”
All changes are denoted by blue font
Substantive revisions are denoted by a * preceding the section,
paragraph, table, or figure that includes the revision
Hyperlinks are denoted by underlined, bold, italic, blue font
PARAGRAPH
EXPLANATION OF CHANGE/REVISION
PURPOSE
0707
Added line item instructions for preparing the
Nonappropriated Fund (NAF) Balance Sheet.
Add
0708
Added line item instructions for preparing the
Nonappropriated Fund (NAF) Statement of Income and
Expense.
Add
0709
Added line item instructions for preparing Reconciliation
of Net Worth.
Add
0710
Added line item instructions for preparing the
Nonappropriated Fund (NAF) Schedule A – APF and
NAF Expense Summary.
Add
0711
Added line item instructions for preparing the Statement
of Cash Flow.
Add
Figures 7-1
through 7-5
Added the formats for the Balance Sheet, Statement of
Income and Expense, Reconciliation of Net Worth,
Schedule A - APF and NAF Expense Summary, and
Statement of Cash Flow.
Add
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TABLE OF CONTENTS
FINANCIAL REPORTING
0701 Overview
0702 Responsibilities
0703 Financial Reporting
0704 Comparative Analysis of Financial Statements
0705 Reporting to the Internal Revenue Service (IRS)
0706 International Balance of Payments (IBOP) Program
* 0707 Format for the Balance Sheet
* 0708 Format for the Statement of Income and Expense
* 0709 Format for the Reconciliation of Net Worth
* 0710 Format for the Schedule A – APF and NAF Expense Summary
* 0711 Format for the Statement of Cash Flow
* Figure 7-1 Balance Sheet
* Figure 7-2 Statement of Income and Expense
* Figure 7-3 Reconciliation of Net Worth
* Figure 7-4 Schedule A - APF and NAF Expense Summary
* Figure 7-5 Statement of Cash Flow
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CHAPTER 7
FINANCIAL REPORTING
0701 OVERVIEW
070101. Purpose. This chapter prescribes the standard policies for financial
reporting, which are the principal means of communicating accounting information to those
outside an activity.
070102. Scope. The policies in this chapter apply to Department of Defense (DoD)
Nonappropriated Fund Instrumentalities (NAFIs) and their supporting Accounting Offices (AOs).
Except for financial reporting prescribed in paragraphs 070201 and 0703, these policies do not
apply to the Armed Service Exchanges.
0702 RESPONSIBILITIES
070201. DoD Components. The DoD Components are responsible for the fair
presentation in the financial reports of financial position, results of operation, and the program and
personnel information included. In addition, the DoD Components are responsible for compliance
with Nonappropriated Fund (NAF) program laws and regulations. For further information on
reporting responsibilities, refer to Department of Defense Instruction (DoDI) 1015.15,
“Establishment, Management, and Control of Nonappropriated Fund Instrumentalities and
Financial Management of Supporting Resources.”
070202. Accounting Office. The supporting Accounting Office (AO) is
responsible for compiling all the necessary information from accounting and payroll systems, as
well as preparation of financial statements and reports. The integrity of those systems and the
accuracy of the data produced are also AO responsibilities. Refer to Chapter 1 of this volume for
further information.
0703 FINANCIAL REPORTING
070301. Financial Statements. Financial statements provide understandable
information that is useful in making business decisions relative to NAFI operations. They describe
NAFI financial performance during a specific period and how cash is obtained and spent. In
addition to providing explanations and interpretations to assist users in making reasoned choices,
financial statements also contain program and personnel information. The principal financial
statements used to convey information to users are the Balance Sheet, Statement of Income and
Expense, Reconciliation of Net Worth, Schedule A - Appropriated Fund (APF) and NAF Expense
Summary, and Statement of Cash Flow.
A. Balance Sheet. The balance sheet (also known as statement of financial
position) presents NAFI’s financial position at the end of a specified date. It is sometimes
described as a “snapshot” that allows the user to see what NAFI owns as well as what it owes to
others. The major components of the balance sheet are assets, liabilities, and equity (net worth).
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For information on the format and instructions for preparing the Balance Sheet, refer to Section
0707 and Figure 7-1 of this chapter. Additionally, for further information on assets, liabilities, and
equity (net worth) refer to Chapter 3 of this volume.
B. Income Statement. An income statement (also referred to as profit or loss
statement or income and expense statement) provides information about NAFI’s financial
performance during a specified period of time and a summary of NAFI’s profit or loss during the
accounting period. The income statement is used to track revenues and expenses. For information
on the format and instructions for preparing the Statement of Income and Expense, refer to Section
0708 and Figure 7-2 of this chapter. Additionally, refer to Chapter 5 of this volume for further
information on revenue and expenses.
C. Reconciliation of Net Worth. The reconciliation of net worth (also known
as statement of retained earnings) provides information of changes to net worth during a specified
period of time. It shows the establishment, disestablishment, or consolidation of NAFIs, receipt or
distribution of capital, net income or net loss, and prior year material adjustments. Refer to
Chapter 3 of this volume for further information on net worth (equity). For information on the
format and instructions for preparing the Statement of Cash Flow, refer to Section 0709 and Figure
7-3 of this chapter.
D. Schedule A -APF and NAF Expense Summary. Schedule A provides a
detailed breakdown of APF and NAF operating costs and capital expenditures. APF received
and expended through the DoD MWR USA practice, UFM practice, or other APF agreements
shall be reported as APF contractual services support and shall not be reported as NAF
expenditures. NAF costs shall equal the operating expenses, other expenses, and extraordinary
expense lines on the Statement of Income and Expense, which are also reported net of APF
support to avoid double counting. NAF cost of goods sold is excluded. NAF capital
expenditures shall be reported in the year funds are expended and assets are recorded (including
construction in progress and capital leases). For information on the format and instructions for
preparing Schedule A- APF and NAF Expense Summary, refer to Section 0710 and Figure 7-4 of
this chapter.
E. Statement of Cash Flow. A cash flow statement provides information
about cash receipts and cash payments of a NAFI during the accounting period. The statement
shows how changes in balance sheet and income accounts affect cash and cash equivalents and
breaks the analysis down according to operating, investing, and financing activities. For
information on the format and instructions for preparing the Statement of Cash Flow, refer to
Section 0711 and Figure 7-5 of this chapter.
070302. Footnotes to Financial Statements. Footnotes are an integral part of the
financial statements and are used when more information is needed. When the actual dollar
amounts on the financial statements do not provide sufficient information for decision makers,
accountants supplement the financial statements with more detailed data in the form of footnotes.
Footnotes help management compare the operating results of the current business period with the
operating results of previous periods. Fund equity adjustments and significant business closures
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are examples of occurrences which require footnotes. Refer to
DoDI 1015.15
for specific
footnotes required.
0704 COMPARATIVE ANALYSIS OF FINANCIAL STATEMENTS. Comparative analysis
is the study of relationships and trends to determine whether the financial position, results of
operations, and the financial progress of the business are satisfactory or unsatisfactory. The
objective of any method used to analyze a financial statement is to simplify or reduce the data
under review to more understandable terms.
070401. Accountant Responsibilities. Accountants will compute, organize, and
analyze data on a monthly basis. Analytical data is then assimilated to aid in management
decision making. It is not enough to know at the end of a year, or even a quarter, that costs are
increasing more rapidly than revenues. The accountant must use interim cost standards, ratios,
or other devices in presenting income statement data to help determine the reasoning behind
financial data changes.
070402. Analytical Methods and Techniques. Analytical methods and techniques
used in analyzing financial statements include the following:
A. Comparative balance sheets, income statements, and statements of
retained earnings or net worth. These statements detail the following information:
1. Absolute data (dollar amounts)
2. Comparisons expressed in ratios
3. Increases and decreases in absolute data in terms of dollar amounts
4. Increases and decreases in absolute data in terms of percentages
5. Percentages of total
B. Statement of sources and uses of working capital
C. Trend ratios of selected and/or related financial and operating data. A trend
analysis is performed for each NAFI financial statement. The analysis of the balance sheet
compares actual to actual, and the percentage of increase or decrease is calculated. The analysis of
the income statement for each activity compares actual to actual as well as actual to the budgeted
amounts. The financial statement analysis is made by each activity for items such as sales, cost of
goods sold, labor expenses, net income, and all other revenue and expense items with a material
financial effect on the activity.
D. Common size percentages from balance sheets, income statements, and
individual sections of these statements.
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E. Ratios expressing the relationships of items selected from the balance sheet,
the income statement, or both statements.
F. Statement of variation in net income or gross margin.
070403. Ratios. The behavior of ratios over a series of accounting periods is
indicative of trends and may signal the need for adjustments in the future. The following ratios are
a means of monitoring the efficiency of NAFIs:
A. Accounts Receivable Turnover. Accounts receivable turnover is the
relationship between credit sales and accounts receivable. It indicates the liquidity of an activity’s
receivables. Calculate accounts receivable turnover by dividing net credit sales by the average
accounts receivable (Accounts Receivable Turnover = Net Credit Sales/Average Accounts
Receivable). The average accounts receivable is the beginning accounts receivable plus the ending
accounts receivable, divided by two. The average of the accounts receivable monthly balances are
used in the computation, as it gives recognition to seasonal fluctuations. When such data is not
available, it is necessary to use the average of the balances at the beginning and end of the year.
Prompt collection of receivables reduces the amount of loss from bad debts. Another method of
expressing the result is to divide 365 days by the receivable turnover figure to get the average
number of days that the receivables were on the books.
B. Acid-Test Ratio. The acid-test ratio, or quick ratio, measures the ability of
NAFI to use its quick assets to immediately liquidate its current liabilities. Quick assets include
cash, receivables, and marketable securities. The formula to compute the acid-test ratio is to divide
quick assets (current assets minus inventory) by current liabilities (acid-test ratio = quick
assets/current liabilities). The acid-test ratio should not be less than 1:1; any less and NAFI could
suffer financial difficulties. A ratio of 1:1 shows that for every dollar of current debt there is $1 of
quick assets available to meet current liabilities. The higher the ratio, the greater the immediate
debt-paying ability.
C. Current Ratio. The current ratio, or working capital ratio, measures the
relationship between current assets and current liabilities. It measures the ability of current assets
to pay short-term debts. The formula to compute the current ratio is to divide the total current
assets by the total current liabilities (Current Ratio = Total Current Assets/Total Current
Liabilities). Current ratio of 1.5:1 is considered standard. A ratio that is smaller indicates high
debt. If the current ratio is too high, then current assets are not being efficiently utilized. Current
assets should then be converted to other useful purposes.
D. Inventory Turnover Ratio. The inventory turnover ratio expresses the
relationship between cost of goods sold and the average inventory balance. Excess inventory
reduces available funds and may increase the cost of insurance, storage, and other related expenses.
The formula to compute the inventory turnover is cost of goods sold divided by the average
inventory (Inventory Turnover = Cost of Goods Sold/Average Inventory). Average inventory
equals beginning inventory plus ending inventory, divided by two. The inventory ratio for food
and beverage operations generally should not exceed 2.5:1 on a monthly basis or 30:1 on an annual
basis. A ratio of 1:3 for other sales operations on a monthly basis or a ratio of 4:1 on an annual
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basis is generally considered acceptable and shows about a 3-month inventory supply. A low
turnover rate may indicate overstocking, obsolescence, or deterioration. A high turnover rate may
indicate inadequate inventory levels, which may lead to a loss in business. Appropriate inventory
levels depend on quantity pricing of purchases, shelf life, and restocking lead time that should be
as low as possible, consistent with these conditions.
E. Net Income Ratio. Net income ratio measures the net income as a
percentage of total revenue. It measures the rate of return on revenue. The formula to compute
the net income ratio is net income divided by total revenue (Net Income Ratio = Net Income/Total
Revenue). Net income is calculated as total revenue minus total expenses. Refer to DoDI
1015.15 for further information on net income requirements.
F. Ratio of Net Sales to Assets. The ratio of net sales to assets measures the
efficiency with which NAFI is using their assets to generate sales. In computing the ratio, any
long-term investments are excluded from total assets, as they make no contribution to sales. If
sales can be stated in a common unit, then units of products sold also can be used in place of the
dollar amount of sales. Assets used in determining the ratio may be the total at the end of the
year, the average at the beginning and end of the year, or the average of monthly totals. The
formula to compute the ratio of net sales to assets is to divide net sales by total assets, minus long-
term investments (Ratio of Net Sales to Assets = Net Sales/ (Total Assets - Long-Term
Investments).
G. Return on Assets Ratio. This measures NAFI’s ability to generate revenue
with its existing assets. The formula to compute the return on assets ratio is to divide net income
by the average total assets. Average total assets are beginning total assets plus ending total assets
divided by two (Return on Assets Ratio = Net Income/Average Total Assets).
H. Return on Fund Equity. The return on fund equity measures NAFI's ability
to use leverage by earning a higher rate of return than is paid for the funds used to operate. The
formula to compute the return on fund equity is to divide net income by the average fund equity
(Return on Fund Equity = Net Income/Average Fund Equity). Average fund equity is the opening
equity plus the closing equity divided by two.
I. Turnover of Working Capital. Working capital is a valuation metric that is
calculated as current assets minus current liabilities. Current assets include accounts receivable
and inventory. Current liabilities include accounts payable. These various components are
analyzed individually to account for changes from period to period. The turnover of working
capital reflects the extent to which NAFI is operating on a small or large amount of working capital
in relation to sales. The formula to compute the working capital turnover is to divide the net sales
by the average working capital (Turnover of Working Capital = Net Sales/Average Working
Capital). Average working capital is ending current assets minus ending current liabilities plus
beginning current assets minus beginning current liabilities, divided by two.
J. Other Ratios. The ratios referenced in the previous paragraphs are not the
only ones that can be computed. Following are additional ratios that can be used:
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1. Fixed Asset Turnover
2. Working Capital to Total Assets
3. Return on Tangible Assets
070404. Comparative Statements
A. General. Any fact by itself has limited significance. Other related facts are
necessary to give the first fact increased meaning. The validity of this observation is demonstrated
as follows: Learning that last year’s net income of a certain activity was $68,514 offers little
insight. Does that amount of net income indicate a successful or unsuccessful year? Does the
amount present an improvement or decline from the year before? Is the amount large or small in
relation to sales, assets, or equity? How does it compare with similar activities? If the information
about last year’s income is to have any real meaning, then other facts must be known.
B. Comparison. If the financial statements are analyzed on a comparative
basis, then they can be much more informative and meaningful. Four comparison types are
possible:
1. Comparison of the latest financial statements and relationships
between various elements with the statements and relationships of one or more previous periods
2. Comparison of the statements and financial relationships of the fund
with data for other similar activities
3. Comparison of statements and financial relationships of two or more
divisions or branches of the same activity
4. Comparison of information in the statements with preset plans or
goals (normally in the form of budgets)
C. Horizontal Analysis. A comparison of the amounts for the same item in the
financial statements of two or more periods is called horizontal analysis. The term is applied
because the analysis, which suggests probabilities, weaknesses, or strengths, includes data from
year to year rather than as of one date or period of time as a whole. If the amount of any change
and its relative size are shown, then a comparison is facilitated. In computing the percent of
change, the amount for the earlier year serves as the base. In general, the percentage of change is
of greater interest than the actual amounts.
D. Vertical Analysis. The amount of each item in a statement can be expressed
as a percentage of the total. Percentages resulting from vertical analysis may be compared across
two or more periods to discover trends over time.
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0705 REPORTING TO THE INTERNAL REVENUE SERVICE (IRS)
070501. General. All records relating to payments to individuals and firms are
retained for at least four years and available for IRS review. Continental United States (CONUS)
offices consult their local IRS office when forms, publications, or assistance are needed. Overseas
offices contact the IRS, Assistant Commissioner (International), by going to www.irs.gov, to get
the address and telephone number of the nearest IRS representative. IRS representatives, in
CONUS and overseas, are available to provide instructions concerning IRS procedures for return
preparation and filing, and depositing employment tax payments.
070502. Contract Payments (Nonpersonal Services). Cumulative payments made by
NAFIs under service contracts of $600 or more to anyone, during a calendar year, are reported to
the IRS along with the total amounts paid to include the name, address, and Social Security
number of the individual. For businesses, report the amount paid, the business name, business
address, and business tax identification number. NAFI contracts with entertainers are considered
service contracts. If a single payment to an individual is less than $600 but total payments made
during the calendar year to the same individual reach $600, then a report must be filed. The report
is provided to the individual or firm and to the IRS using IRS Form 1099-MISC, “Miscellaneous
Income.” The individual or firm receives a copy of the IRS Form 1099-MISC by January 31 of the
following calendar year of payment. This requirement also applies to individuals who, in addition
to being NAFI employees, have contracts with NAFI for nonpersonal services. A separate IRS
Form 1099-MISC is prepared for each individual or firm to whom total payments of $600 or more
are made. IRS Form 1096, “Annual Summary and Transmittal of U.S. Information Returns,” is
used to transmit the IRS copy of 1099s to the IRS. These forms are forwarded to the IRS by
February 28 of the following year. Refer to www.irs.gov for preparation instructions and filing
requirements.
070503. Gambling and Bingo Winnings. IRS reporting requirements for gambling
and bingo winnings are tied to individual games. Unlike contract payments, winnings are not
accumulated from game to game; each game stands alone for IRS reporting requirements.
Whenever cash, merchandise, or a combination thereof with a total value of $1,200 or more is
awarded to a person for winning a single bingo game or other gambling activity, an
IRS Form W-2G, “Certain Gambling Winnings,” is prepared. Individuals receive their copies of
the IRS Form W-2G either at the time payment is made or not later than January 31 of the
following year. IRS Form 1096 is used to transmit the IRS copy of the IRS Form W-2Gs to the
IRS. Additionally, IRS Form 1042S, “Foreign Person’s U.S. Source Income Subject to
Withholding,” is prepared for reporting foreign nationals gaming winnings and withholdings.
These forms must be forwarded to the IRS by February 28 of the following year. Refer to
www.irs.gov for preparation instructions and filing requirements.
0706 INTERNATIONAL BALANCE OF PAYMENTS (IBOP) PROGRAM. IBOP is an
accounting of a country’s international transactions for a particular time period. NAFIs are subject
to the IBOP reporting requirements prescribed in DODI 7060.03, “International Balance of
Payments Program – Nonappropriated Fund Activities,” and Volume 6A, Chapter 13.
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*0707 FORMAT FOR THE BALANCE SHEET
070701. Format for the Balance Sheet. The format presented in Figure 7-1 shall be
used for the consolidated Balance Sheet. The working versions of all statements and notes shall
include line numbers as shown.
070702. Instructions for the Preparation of the Balance Sheet. The Balance Sheet
presents, as of a specific time, amounts of economic benefits owned or managed by the reporting
entity (assets), amounts owed by the entity (liabilities), and amounts which comprise the
difference (net worth). Individual statement crosswalks are prepared from information utilizing
the Nonappropriated Fund Standard General Ledger guidance and crosswalks found in Chapter 2
of this volume. Complete the heading on the form to indicate: (a) Military Service, (b) Program
Group, and (c) the reporting period (month and calendar year).
070703. Line Item Instructions for Preparing the Balance Sheet
A. Current Assets
1. Cash/Investments, Line 1. This is a summary line for cash and
investments. General ledger account 1110 (Cash) is a summary account that includes general
ledger accounts 1111, 1112, 1113, and 1114. Report the balances of the following accounts:
GL Acct # Title
1110 Cash
1120 Savings Account
1130 Marketable Securities
1140 Other Short-Term Investments
2. Receivables, Line 2. This is a summary line for all receivables.
Report the balances of the following accounts:
GL Acct # Title
1210 Accounts Receivable - This is a summary account that
includes general ledger accounts 1211, 1212, 1213, 1214, and 1215.
1220 Deposits Receivable
1230 NAFI Receivables
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Current Assets (continued)
GL Acct # Title
1240 Returned Check Receivable
1250 Employee Receivable
1260 Accrued Interest Receivable
1270 Loans Receivable
1280 Morale, Welfare, and Recreation (MWR) Utilization
Support and Accountability (USA) Receivable
1290 Other Current Receivables (Specify)
1299 Allowance for Doubtful Accounts
3. Other Current Assets, Line 3. This is a summary line for all
prepaid assets. Report the balances of the following accounts:
GL Acct # Title
1310 Travel Advances
1320 Prepaid Contracts
1330 Prepaid Insurance
1340 Prepaid Rent
1350 Prepaid Supplies
1360 Prepaid Tax and License
1370 Other Prepaid Expenses (Specify).
4. Inventory, Line 4. This is a summary line for all inventory
accounts. Report the balances of the following accounts:
GL Acct # Title
1410 Inventory Warehouse/Storeroom
1420 Inventory Sales Outlet Resale
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Current Assets (continued)
GL Acct # Title
1430 Inventory In-Transit
5. Total Current Assets, Line 5. Report the net total of line 1
through line 4.
B. Noncurrent Assets
1. NAFI-Owned Fixed Assets, Line 6. This is a summary line for all NAFI-
owned fixed assets. Report the balances of the following accounts:
GL Acct # Title
1510 Land Improvements
1520 Construction in Progress
1530 Buildings and Improvements
1540 Furniture and Fixtures
1550 Equipment
1560 Internal-Use Software
1570 Fixed Assets in Transit
2. Less: Accumulated Depreciation on NAFI-Owned Fixed Assets,
Line 7. This is a summary line for the accumulated depreciation for all NAFI owned fixed
assets. Report the balances of the following accounts:
GL Acct # Title
1511 Accumulated Depreciation on Land Improvements
1531 Accumulated Depreciation on Buildings and Improvements
1541 Accumulated Depreciation on Furniture and Fixtures
1551 Accumulated Depreciation on Equipment
1561 Accumulated Amortization on Internal-Use Software
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3. Net NAFI Owned Fixed Assets, Line 8. Report the net total of
lines 6 and 7.
4. Government Titled Fixed Assets, Line 9. This line is for reporting
fixed assets for which title has been transferred to the Government. Footnotes are required.
Report the balance of the following account:
GL Acct # Title
1580 Buildings and Improvements-Government Titled
5. Less: Accumulated Depreciation on Government Titled Fixed
Assets, Line 10. This line is for depreciation of government titled fixed assets. Report the
balance of the following account:
GL Acct # Title
1581 Accumulated Depreciation on Buildings and Improvements
- Government Titled
6. Net Government Titled Fixed Assets, Line 11. Report the net total
of lines 9 and 10.
7. Pension Benefit Asset, Line 12. This new general ledger account
is used for reporting the difference when the Plan Assets are greater than the Plan Benefit
Obligation. Report the balance of the following account:
GL Acct # Title
1610 Pension Benefit Asset
8. Other, Line 13. This is the summary line for all other noncurrent
assets that include receivables and investments. Report the balances of the following accounts:
GL Acct # Title
1620 Long-Term Receivables
1630 Sinking Fund
1640 Long-Term Investments
9. Total Noncurrent Assets, Line 14. Report the net total of line 6
through line 13.
10. Total Assets, Line 15. Report the net total of line 5 and 14.
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C. Current Liabilities
1. Accounts Payable, Line 16. This is the summary for all accounts
payable. Report the balance for the following account:
GL Acct # Title
2100 Accounts Payable
2. Post-Retirement Benefit Obligation, Line 17. This new general
ledger account is used for reporting the difference when the Plan Assets are less than the Plan
Benefit Obligation. The difference is classified as a current liability as determined and provided
by the pension provider when the amount is due within the year. This also includes any other
post-retirement benefit plan, such as retiree health care. Report the balance of the following
account:
GL Acct # Title
2200 Post-Retirement Benefit Obligation - Current
3. Other Current Liabilities, Line 18. This is a summary line for all
other current liabilities. General ledger account 2300 (Other Current Liabilities) is a summary
account that includes general ledger accounts 2310, 2320, 2330, 2340, 2350, 2360, 2370, 2380,
2390, 2410, 2420, and 2430. Additionally, general ledger account 2370 (Salaries Payable) is a
summary account and includes general ledger accounts 2371, 2372, 2373, 2374, 2375, 2376, and
2377.
4. Total Current Liabilities, Line 19. Report the total of lines 16
through line 18.
D. Long Term Liabilities
1. Loans Payable, Line 20. Report the amount of loans and notes that
will not be paid within 12 months. Report the balance of the following account:
GL Acct # Title
2510 Long Term Loans Payable
2. Post-Retirement Benefit Obligation, Line 21. This new general
ledger account is used when the difference of the Plan Assets are less than the Plan Benefit
Obligation. The difference is classified as a long-term liability as determined and provided by
the pension provider and exceeds 12 months. This also includes any other post-retirement benefit
plan, such as retiree health care. Report the balance of the following account:
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GL Acct # Title
2520 Post-Retirement Benefit Obligation – Long Term
3. Other, Line 22. This is a summary line for all other long-term
liabilities. Report the balances of the following accounts:
GL Acct # Title
2530 Long Term Leases Payable
2540 Other Long Term Liabilities (Specify)
4. Total Long Term Liabilities, Line 23. Report the total of lines 20
through line 22.
5. Total Liabilities, Line 24. Report the total of line 19 and 23.
E. Net Worth
1. Net Worth, Line 25. Report the amount of retained earnings, net
income (loss), pension adjustment, and other equity transactions, pursuant to DoDI 1015.15,
paragraph 6.4.2. Report the balances of the following accounts.
GL Acct # Title
3010 Retained Earnings
3020 Contributed Capital
3030 Minimum Pension Liability Adjustment
3040 Other Equity Transactions
2. Total Liabilities and Net Worth, Line 26. Report the total of lines
24 and 25.
*0708 FORMAT FOR THE STATEMENT OF INCOME AND EXPENSE
070801. Format for the Statement of Income and Expense. The format presented
in Figure 7-2 shall be used for the Statement of Income and Expense.
070802. Instructions for the Preparation of the Statement of Income and Expense.
NAF income and expense for common support functions is allocated to and reported by the
benefiting categories (Category A, B, and C). Allocation procedures are the same as those used
to prepare Schedule A – APF and NAF Expense Summary. Allocated or prorated management
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overhead is not reported below the category level. Individual statement crosswalks are prepared
from information utilizing the Nonappropriated Fund Standard General Ledger guidance and
crosswalks found in Chapter 2 of this volume. Complete the heading on the form to indicate (a)
Military Service, (b) Program Group, (c) Category, and (d) the reporting period (month and
calendar year).
070803. Line Item Instructions for Preparing the Statement of Income and Expense
A.. Sales, Line 1. This is a summary line for income from sale of goods or
services less returns and allowances and discounts. Report the balances for the following
accounts:
GL Acct # Title
4010 Sales
4011 Sales Returns and Allowances
4012 Sales Discounts
B. Cost of Goods Sold, Line 2. This is a summary line for the Cost of Goods
Sold calculation. Report the balances for the following accounts:
GL Acct # Title
6010 Purchases – Resale
6011 Purchases Returns and Allowances – Resale
6012 Freight – Resale
6013 Vendor Rebates – Resale
C. Gross Margin, Line 3. Gross Margin is a calculation. The calculation is
the total sales revenue minus the cost of goods sold, divided by the total sales revenue, expressed
as a percentage.
D. Other Operating Income, Line 4. This is the heading for reporting Other
Operating Income, as follows.
1. Participation Fees and Charges, Line 4a. Report the balances for
the following accounts:
GL Acct # Title
4020 Participation Fees and Charges
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GL Acct # Title
4040 Other Fee Income (Specify)
4060 Amusement Machine Income
4090 Gaming Machine Income
2. Dues and Assessments, Line 4b. Report the balance for the
following account:
GL Acct # Title
4050 Dues and Assessment Income
3. Concessionaire Income, Line 4c. Report the balance for the
following account:
GL Acct # Title
4080 Concessionaire Income
4. Other, Line 4d. Report the balances for the following accounts:
GL Acct # Title
4030 Other Service/Recreation Activity Income (Specify)
4070 Commission Income
E. Total Other Operating Income, Line 5. Report the total of lines 4a, 4b, 4c
and 4d.
F. Gross Operating Income, Line 6. Report the total of line 1 less line 2 plus
line 5.
G. Operating Expenses, Line 7. Report the operating expenses from
Schedule A, Lines 1-13. Refer to Figure 7-4 of this chapter. This section does not crosswalk to
general ledger accounts.
H. Operating Margin, Line 8. Operating Margin is a calculation only. Report
the difference in Gross Operating Income (Line 6) and Operating Expenses (Line 7).
I. Other Income, Line 9. Non-operating income (loss) consists of
income/expenses that are not related to the NAFI’s primary operation.
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1. Dividends, Line 9a. Report the balance for the following account:
GL Acct # Title
4130 Exchange Dividend Income
2. Grants, Line 9b. Report the balance for the following account:
GL Acct # Title
4240 Grant Income
3. Other, Line 9c. Report the balances for the following accounts:
GL Acct # Title
4110 Commercial Sponsorship Income
4120 Recyclable Material Income
4140 U.S. Department of Agriculture Income
4150 Uniform Funding and Management (UFM) Income
4160 Cash Overage
4170 Contributions and Donations
4180 Intrafund Income
4190 Interest Income
4210 Other Income (Specify)
4220 Gain on Disposition of Fixed Assets
4230 Gain on Foreign Currency
J. Total Non-Operating Income, Line 10. Report the total of lines 9a, 9b
and 9c.
K. Other Expenses, Line 11. Report other expenses from Schedule A, Line
14. This section does not crosswalk to general ledger accounts.
L. Net Income Before Extraordinary Items, Line 12. Report the sum of
Line 5 and Line 10.
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M. Extraordinary Income, Line 13. Extraordinary income is income that is
unusual and infrequent and is to be accorded special treatment in the accounts or separate
disclosure in financial statements. Report the balance of the following account:
GL Acct # Title
7100 Extraordinary Income (Specify)
N. Extraordinary Expense, Line 14. Extraordinary expenses are expenses that are
unusual and infrequent and are to be accorded special treatment in the accounts or separate disclosure in
financial statements. Report the balances of the following accounts:
GL Acct # Title
7200 Extraordinary Expense (Specify)
7300 Base Realignment & Closure (BRAC) and Installation
Closure Expense.
O. Net Income, Line 15. Report the net of lines 12 through 14.
*0709 FORMAT FOR THE RECONCILIATION OF NET WORTH
070901. Format for the Reconciliation of Net Worth. The format presented in
Figure 7-3 shall be used for the Reconciliation of Net Worth.
070902. Instructions for the Preparation of the Reconciliation of Net Worth. The
Reconciliation of Net Worth presents, as of a specific time, the reconciliation of the additions
and reductions of net worth. Individual statement crosswalks are prepared for information
utilizing the Nonappropriated Fund Standard General Ledger guidance and crosswalks found in
Chapter 2 of this volume. Complete the heading on the form to indicate: (a) Military Service,
(b) Program group and (c) the reporting period (month and calendar year).
070903. Line Items Instructions for Preparing the Reconciliation of Net Worth
A. Line 1, Net Worth, Beginning. Report the amount of Line 25 on the Balance
Sheet from the preceding year.
B. Line 2, Net Income. Report the amount of Line 15 from the Statement of
Income and Expense.
C. Line 3, Grants Received. Report the balance of general ledger account 4240,
Grant Income (new account) on Line 9b from the Statement of Income and Expense.
D. Line 4, Other Increases. Report the balances of general ledger accounts (as
appropriate) for 3020 - Contributed Capital, 3030 – Minimum Pension Liability Adjustment, and
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3040 – Other Equity Transactions. Examples of increases include donated assets, recycling
contributions, prior year material corrections, change in funded status of pension and other
postretirement liabilities, and funds for BRAC property.
E. Line 5, Total Additions. Report the sum of Lines 2, 3, and 4.
F. Line 6, Net Loss. Report the amount on Line 15 of the Statement of Income
and Expense (if appropriate).
G. Line 7, Grants Disbursed. Report the balance of general ledger account 5430,
Grants Expense from Schedule A - APF and NAF Expense Summary.
H. Line 8, Other Decreases (specify). Report the balances of general ledger
accounts (as appropriate) for 3020 - Contributed Capital, 3030 – Minimum Pension Liability
Adjustment, and 3040 -Other Equity Transactions. Examples of decreases include transfer of
headquarters funded projects after books closed, change in funded status of pension and other
postretirement benefit liabilities, net decreases in fair value of derivative instruments, annual
leave transfers, asset write offs, data conversion write offs, prior period adjustments, interest
distribution, dividends paid, audit adjustments, and closing facilities.
I. Line 9, Total Reductions. Report the sum of Lines 6, 7, and 8.
J. Line 10, Net Additions/Reduction to Net Worth. Report the net of Line 5 and
Line 9.
K. Line 11, Net Worth, Ending. Report the sum of Line 1 and Line 10.
*0710 FORMAT FOR THE SCHEDULE A - APF AND NAF EXPENSE SUMMARY
071001. Format for Schedule A – APF and NAF Expense Summary. The format
presented in Figure 7-4 shall be used for Schedule A.
071002. Instructions for the Preparation of Schedule A. NAF expenses for
common support functions are allocated to and reported by the benefiting categories (Category
A, B, and C). Allocated or prorated management overhead is not reported below the category
level. Individual statement crosswalks are prepared from information utilizing the
Nonappropriated Fund Standard General Ledger guidance and crosswalks found in Chapter 2 of
this volume. Complete the heading on the form to indicate (a) Military Service, (b) the Program
Group, and (c) Year Ending.
071003. Line Item Instructions for Preparing Schedule A
A. Cost Expense Captions
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1. Military Personnel, Line 1. This line includes the cost of the
services of active duty military personnel computed according to policy in DoDFMR Volume
7A. Report the balance of the following account:
GL Acct # Title
5580 Appropriated Fund (APF) Payroll Expense
2. Civilian Personnel (Salaries and Wages), Line 2. This line
includes the cost of the services of civilian personnel computed according to policy in DoD FMR
Volume 7A. Report the balance of the following account:
GL Acct # Title
5010 Salaries and Wages Expense
5020 Capitalized Labor Costs
3. Civilian Personnel (Services and Benefits), Line 3. This line
includes the cost of services of civilian personnel paid from appropriated funds and the cost of
personnel compensation and benefits, including employer costs for Civil Service Retirement
System, Federal Employees Retirement System, Thrift Savings Plan, Federal Employees Group
Life Insurance, and Federal Employees Group Health Insurance. Report the balances of the
following accounts:
GL Acct # Title
5030 Annual Leave Expense
5040 Sick Leave Expense
5070 Foreign National (FN) Benefits Expense
5080 Other Employee Benefit Expense (Specify)
4. Utilities, Line 4. This line includes the cost of heat, light, power,
water, gas, electricity, steam, and other utility services. Report the balance of the following
account:
GL Acct # Title
5450 Utilities Expense
5. Rent, Line 5. This line includes rental of equipment (except
transportation equipment) and real property. Report the balance of the following account:
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GL Acct # Title
5490 Rent Expense
6. Communications, Line 6. This line includes charges for the
transmission of messages from place to place, postal charges, and electronic communications
(telephone and telephone installation charges, Internet, television, DSN, fax, public address
systems, and other electronic media). Report the balances of the following accounts:
GL Acct # Title
5460 Cable/Satellite Service Expense
5470 Communications Expense
5660 Internet Expense
7. Sustainment, Restoration, and Modernization (Including APF
minor construction), Line 7. This line includes sustainment, restoration, and modernization of
facilities and real property supplied through commercial contracts. The costs are allocated on
the basis of job costing systems, using fixed charges or unit costs for specific categories of
maintenance. Report the balance of the following account:
GL Acct # Title
5250 Building and Structures Maintenance and Repair Expense
8. Supplies and Equipment, Line 8. This line includes the cost of
supplies, equipment, and materials that are ordinarily consumed or expended within 2 years or
used to fix property (such as repair parts). Also, includes appropriated fund software that is not
capitalized. Report the balance of the following account:
GL Acct # Title
5170 Supplies Expense
5550 Minor Property and Equipment Expense
9. Contractual Services, Line 9. This line includes the cost of
services that are provided indirectly through contracts or Memoranda of Agreements (MOAs).
Report the balance of the following account:
GL Acct # Title
5370 Contractual Expense
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10. Travel of Personnel, Line 10. This line includes travel and
transportation of persons when the primary purpose is to conduct NAFI business. Report the
balance of the following account:
GL Acct # Title
5240 Travel Expense
11. Transportation of Things, Line 11. This line includes expenses
for the transportation of things, whether incurred through contract or use of Government
resources. Report the balance of the following account:
GL Acct # Title
5480 Freight Expense
12. Reimbursed Common Support NAF, Line 12. This line includes
expenses provided by a different Program Group and reimbursed by the benefiting Program
Group as identified in DoDI 1015.15, paragraph 6.1.1.1. Report the balance of the following
account:
GL Acct # Title
5380 Administrative Common Support Service
13. NAF Depreciation, Line 13. This line includes depreciation
expense on NAFI capitalized tangible fixed assets, both NAFI-owned fixed assets and fixed
assets to which title has been transferred to the Government. Report the balance of the following
account:
GL Acct # Title
5620 Depreciation Expense
14. All Other Expenses, Line 14. Report the balances of the
following accounts:
GL Acct # Title
5090 Spoilage, Breakage, and Obsolescence
5110 Promotion Expense
5120 Advertising Expense
5130 Child Care Food Expense
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GL Acct # Title
5140 Manager's Expense
5150 Sports Activities Expense
5160 Amenities Expense
5180 Laundry and Dry Cleaning Expense
5190 Tableware, Kitchenware, Linen and Uniform Expense
5210 Intra Fund Expense
5220 Professional Membership Expense
5230 Training Expense
5260 Vehicle, Boat, Aircraft Maintenance and Gas Expense
5270 Vehicle Registration Program Expense
5280 Awards and Prizes
5290 Official Hosting and Representation Expense
5310 Entertainment Expense
5320 Printing Expense
5330 Program and Brochure Expense
5340 Volunteer Service Expense
5350 Bank and Service Charge Expense
5360 Credit Card Expense
5390 401 K Administrative Surcharge Expense
5410 Claims Expense
5420 Dividend Expense
5430 Grants Expense
5440 Vending Machine Income Sharing Expense
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GL Acct # Title
5510 Insurance Expense
5520 Subscription and Dues
5530 Tax and License Expense
5540 Late Payment Interest Expense
5560 Franchise/Royalties Expense
5570 Audit Expense
5590 Cash Shortage
5610 Other Expense (Specify)
5630 Interest Expense
5640 Unit Allocation
5650 Lease Expense
5670 Flexible Spending Account Admin Fee
5680 Bad Debt Expense
5690 Prior Period Expense
5710 Loss on Disposition of Fixed Assets
5720 Loss on Foreign Currency
15. Total Expense, Line 15. Report the total of lines 1
through 14 for Categories A, B and C for APF and NAF.
B. Capital Expenditure Captions. This section does not crosswalk to general
ledger accounts. Per Office of the Under Secretary of Defense (Personnel and Readiness),
Resale Activities Division, this section must tie to the Capital Investment Summary Report as
required by Enclosure 10 of DoDI 7700.18.
1. Facilities and Improvements (Land and Structures), Line 16.
Lines 16a and 16b include capitalized costs for tangible fixed assets, land, buildings, and other
structures; additions to buildings; nonstructural improvements; and fixed equipment.
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2. Equipment (Investment type), Line 17. This line includes all
other capitalized tangible fixed assets not included in DoDI 1015.15, paragraph E7.2.3.
3. Total Costs (less depreciation), Line 18. Report the total for lines
16.a, 16.b, and 17 for Capital Expenditures.
*0711 FORMAT FOR THE STATEMENT OF CASH FLOW
071101. Format for the Statement of Cash Flow. The format presented in Figure
7-5 shall be used for the Statement of Cash Flow.
071102. Instructions for the Preparation of the Statement of Cash Flow. The
Statement of Cash Flow discloses the gross cash receipts and cash payments with an explanation
of the changes in cash or cash equivalents for the reporting period. Individual statement
crosswalks are prepared from information utilizing the Nonappropriated Fund Standard General
Ledger guidance and crosswalks found in Chapter 2 of this volume. Complete the heading on
the form to indicate: (a) Military Service, (b) Program Group, and (c) Period Ending.
071103. Line Item Instructions for Preparing the Statement of Cash Flow
A. Operating Activities: Net Income, Line 1. This amount comes from the
Line 8, Operating Margin from the Statement of Income and Expenses.
B. Adjustments to Reconcile Net Income to Net Cash Provided by Operating
Activities
1. Depreciation and Amortization, Line 2. The Depreciation and
Amortization expenses are not paid in cash and require a positive adjustment to the net cash flow
from operations. This amount comes from Line 13, Schedule A - APF and NAF Expense
Summary.
2. Loss on Disposal of Fixed Assets, Line 3. A loss on disposal of
fixed assets requires a positive adjustment to the net cash flow from operations. This amount
comes from Line 14, Schedule A – APF and NAF Expense Summary and is specifically identified
as Loss on Disposition of Fixed Assets (general ledger account number 5710).
3. Decrease (Increase) in Accounts Receivable, Line 4. The change in
accounts receivable balances between the end of the preceding and current fiscal year comes
from Line 2 on the Balance Sheet. A decrease in Accounts Receivable balances adds to the cash
balance. An increase in Accounts Receivable reduces the cash balance.
4. Decrease (Increase) in Inventories, Line 5. The change in
inventory balances between the end of the preceding and current fiscal year comes from Line 4
on the Balance Sheet. A decrease in Inventory balances adds to the cash balance. An increase in
Inventory balances reduces the cash balance.
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5. Decrease (Increase) in Prepaid Expenses, Line 6. The change in
prepaid expense balances between the end of the preceding and current fiscal year comes from
Line 3 (Other Current Assets) on the Balance Sheet. A decrease in prepaid expense balances
adds to the cash balance. An increase in prepaid expense balances reduces the cash balance.
6. Increase (Decrease) in Accounts Payable, Line 7. The change in
accounts payable balances between the end of the preceding and current fiscal years comes from
Line 16 on the Balance Sheet. An increase in accounts payable balances adds to the cash
balance. A decrease in accounts payable balances reduces the cash balance.
7. Increase (Decrease) in Unearned Income, Line 8. The change in
unearned revenue balances between the end of the preceding and current fiscal years comes from
Balance Sheet Line 18, Other Current Liabilities, specifically, general ledger accounts UFM
Unearned Revenue (2380) and Unearned Revenue (2390). An increase in unearned revenue
balances adds to the cash balance. A decrease in unearned revenue balances reduces the cash
balance.
8. Increase (Decrease) in Other Current Liabilities, Line 9. The
change in other current liabilities balances between the end of the preceding and current fiscal
years comes from Balance Sheet Line 18 less general ledger account Other Liabilities (2430) less
Line 8 on the Statement of Cash Flow. An increase in other current liabilities balances adds to
the cash balance. A decrease in other current liabilities balances reduces the cash balance.
9. Other Liabilities (specify), Line 10. The change in other liabilities
(specify) balances between the end of the preceding and current fiscal years comes from Balance
Sheet Line 18, specifically general ledger account 2430, Other Liabilities (Specify). An increase
in other liabilities balances adds to the cash balance. A decrease in other liabilities balances
reduces the cash balance.
10. Total Adjustments, Line 11. Total adjustments are the sum of
Lines 2 through 10.
11. Net Cash Provided by (Used in) Operating Activities, Line 12. The
net cash provided by (used in) operating activities is the total of line 1 and 11.
C. Investing Activities. Investing activities include acquiring and disposing
of debt or property, plant, and equipment and other productive assets that are used in the
production of goods or services.
1. Purchase of Fixed Assets, Line 13. Amounts disbursed for the
purchase of property, plant, and equipment that reduce the cash balance and amounts disbursed
for minor construction.
2. Proceeds from the Sale of Fixed Assets, Line 14. The collections
or proceeds from the sale of surplus property, plant, and equipment that increase the cash
balance.
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3. Other (Specify), Line 15. The net amounts of other collections or
disbursements associated with the purchase and sale of other investments. Identify the nature of
each investment purchased and sold.
4. Net Cash Used in Investing Activities, Line 16. The net cash used
in investing is the sum of Lines 13 through 15.
D. Financing Activities. Financing Activities include proceeds from banks
and grants or disbursements to banks, individuals, businesses for amounts owed or payment of
dividends.
1. Net Borrowing (specify), Line 17. The cash proceeds borrowed
from the bank or cash disbursed to the banks for loans.
2. Payment of Dividends, Line 18. The cash disbursed for dividends.
3. Capital Grants, Line 19. The cash proceeds from grants.
4. Net Proceeds from (Payments on) Other Long-Term Liabilities-
Other (specify), Line 20. The cash disbursed on other long term liabilities.
E. Net Cash Provided By (Used In) Financing Activities, Line 21. The net
cash provided (used in) financing activities is the sum of Lines 17 through 20.
F. Net Decrease/Increase in Cash and Cash Equivalents, Line 22. The sum of
net cash provided (used) in operating, investing, and financing activities is the sum of Lines 12,
16, and 21.
G. Cash and Cash Equivalents at Beginning of Year, Line 23. The balances
for cash and cash equivalents are the sum of account balances at the beginning of the fiscal year.
H. Cash and Cash Equivalents at End of Year, Line 24. The cash and cash
equivalent balances at year end should equal the net of lines 22 and 23 and should agree with
Line 1 on the Balance Sheet.
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BALANCE SHEET
MILITARY SERVICE: ____________
PROGRAM GROUP: _____________
AS OF: _________________________
($ in thousands)
ASSETS
Current Assets
Cash/Investments (Line 1)
Receivables (Line 2)
Other Current Assets (Line 3)
Inventories (Line 4)
Total Current Assets (Line 5)
Noncurrent Assets
NAFI-Owned Fixed Assets (Line 6)
Less: Accumulated Depreciation (Line 7)
Net NAFI-Owned Fixed Assets (Line 8)
Government Titled Fixed Assets (Line 9)
Less: Accumulated Depreciation (Line 10)
Net Government Titled Fixed Assets (Line 11)
Pension Benefit Asset (Line 12)
Other (Line 13)
Total Noncurrent Assets (Line 14)
Total Assets (Line 15)
LIABILITIES and NET WORTH
Current Liabilities
Accounts Payable (Line 16)
Post-Retirement Benefit Obligation (Line 17)
Other Current Liabilities (Line 18)
Total Current Liabilities (Line 19)
Long Term Liabilities
Loans Payable (Line 20)
Post Retirement Benefit Obligation (Line 21)
Other (Line 22)
Total Long Term Liabilities (Line 23)
Total Liabilities (Line 24)
Net Worth (Line 25)
Total Liabilities and Net Worth (Line 26)
*Figure 7-1 Balance Sheet
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STATEMENT OF INCOME AND EXPENSE
MILITARY SERVICE: ________________
PROGRAM GROUP: _________________
CATEGORY: ________________________
FOR THE YEAR ENDING: _____________
Current Year Prior Year
Percent Percent
Amount of Revenue Amount of Revenue
Sales (Line 1)
Cost of Goods Sold (Line 2)
Gross Margin (Line 3)
Other Operating Income (Line 4)
Participation Fees and Charges
Dues and Assessments
Concessionaire Income
Other
Total Other Operating Income (Line 5)
GROSS OPERATING INCOME (Line 6)
Operating Expenses (Schedule A) (Line 7)
OPERATING MARGIN (Line 8)
Other Income (Line 9)
Dividends
Grants – net
Other
Total Non-Operating Income (Line 10)
Other Expense (Schedule A) (Line 11)
NET INCOME BEFORE
EXTRAORDINARY ITEMS (Line 12)
Extraordinary Income (Line 13)
Extraordinary Expense (Schedule A) (Line 14)
NET INCOME (Line 15)
*Figure 7-2 Statement of Income and Expense
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RECONCILIATION OF NET WORTH
MILITARY SERVICE: ________________
PROGRAM GROUP: _________________
AS OF: _____________________________
($ in thousands)
Net Worth, Beginning: (Line 1)
Additions to Net Worth:
Net Income (Line 2)
Grants Received (Line 3)
Other Increases (specify) (Line 4)
Total Additions (Line 5)
Reductions to Net Worth:
Net Loss (Line 6)
Grants Disbursed (Line 7)
Other Decreases (specify) (Line 8)
Total Reductions (Line 9)
Net Additions/Reductions to Net Worth (Line 10)
Net Worth, Ending (Line 11)
*Figure 7-3 Reconciliation of Net Worth
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SCHEDULE A - APF AND NAF EXPENSE SUMMARY
MILITARY SERVICE: ____________________
PROGRAM GROUP: _____________________
FOR YEAR ENDING: _____________________
($ in thousands)
Category A Category B Category C TOTAL
Cost Expense Captions APF NAF APF NAF APF NAF APF NAF
Military Personnel (Line 1)
Civilian Personnel (Line 2)
(Salaries and Wages)
Civilian Personnel (Line 3)
(Services and Benefits)
Utilities (Line 4)
Rent (Line 5)
Communications (Line 6)
Sustainment, Restoration and Modernization (Line 7)
(including APF minor construction)
Supplies and Equipment (Line 8)
Contractual Services (Line 9)
Travel of Personnel (Line 10)
Transportation of Things (Line 11)
Reimbursed Common Support (Line 12)
NAF Depreciation (Line 13)
All Other Expenses (Line 14)
TOTAL EXPENSE (Line 15)
Capital Expenditures Captions
Facilities and Improvements (Land and Structures) (Line 16)
APF (MILCON)
NAF
Equipment (Investment type) (Line 17)
TOTAL COSTS (less depreciation) (Line 18)
*Figure 7-4 Schedule A – APF and NAF Expense Summary
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STATEMENT OF CASH FLOW
MILITARY SERVICE: _________________
PROGRAM GROUP: ___________________
FOR THE PERIOD ENDING: ____________
Current Year Prior Year
Operating Activities: Net Income (Line 1)
Adjustments to Reconcile Net Income to Net Cash Provided by
Operating Activities:
Depreciation and Amortization (Line 2)
Loss on Disposal of Fixed Assets (Line 3)
Changes in Assets and Liabilities
Decrease (Increase) in Accounts Receivable (Line 4)
Decrease (Increase) in Inventories (Line 5)
Decrease (Increase) in Prepaid Expenses (Line 6)
Increase (Decrease) in Accounts Payable (Line 7)
Increase (Decrease) in Unearned Income (Line 8)
Increase (Decrease) in Other Current Liabilities (Line 9)
Other Liabilities (specify) (Line 10)
Total Adjustments (Line 11)
Net Cash Provided by (Used in) Operating Activities (Line 12)
Investing Activities:
Purchase of Fixed Assets (Line 13)
Proceeds from the Sale of Fixed Assets (Line 14)
Other (specify) (Line 15)
Net Cash Used in Investing Activities (Line 16)
Financing Activities:
Net Borrowing (specify) (Line17)
Payment of Dividends (Line 18)
Capital Grants (Line 19)
Net Proceeds from (Payments on) Other Long-Term Liabilities
Other (specify) (Line 20)
Net Cash Provided by (Used in) Financing Activities (Line 21)
Net Decrease/Increase in Cash and Cash Equivalents (Line 22)
Cash and Cash Equivalents at Beginning of Year (Line 23)
Cash and Cash Equivalents at End of Year (Line 24)
*Figure 7-5 Statement of Cash Flow
