BY ORDER OF THE AIR FORCE MANUAL 34-214 …

1 BY ORDER OF THE SECRETARY OF THE AIR FORCE AIR FORCE MANUAL 34-214 14 FEBRUARY 2006 Incorporating Change 5, 23 MARCH 2010 Services PROCEDURES FOR NONAPPROPRIATED FUNDS FINANCIAL MANAGEMENT AND ACCOUNTING COMPLIANCE WITH THIS PUBLICATION IS MANDATORY NOTICE: Publications and forms are available on the e-Publishing website at For downloading or ordering. OPR: HQ AFSVA/SVFA (Ms Susan Epps) Supersedes: AFMAN 34-214 , 8 August 2002 Certified by: HQ USAF/SVF (Col Michael Kelly) Pages: 446 Distribution: F This MANUAL implements AFI 34-209, Nonappropriated Funds Financial Management and Accounting, by explaining procedures for financial management and accounting for all Services (SV) nonappropriated fund (NAF) instrumentalities (NAFI).

2 This MANUAL applies to the same NAFIs covered by AFI 34-209. It is applicable to the Air National Guard (ANG) only upon mobilization. This MANUAL requires collecting and maintaining information protected by the Privacy Act of 1974, authorized by 10 8013 and 9397. Systems of records F176 AFMP A and F176 AFMP D apply. SUMMARY OF REVISIONS This revision incorporates Interim Change IC 2006-01. This change incorporates changes which update payroll and accounts payable information to include electronic funds transfer, off-line payroll processing, changes in the fixed and bulk assets, and redefines the aged accounts receivable schedule.

3 Attachment 2- Attachment 5 have been updated to include all cost center ) indicates revisions from the previous edition. The NAF AO and SSC are interchangeable where the accounting system is at the SSC. This interim change 5 implements new guidelines to update guidance for Services activities acceptance of commercial credit cards, the use of Club Plus to process recurring charges, and limitations on the use of authorized in-house accounts receivable programs, AFMAN 34-214 , 2 AFMAN34-214 14 February 2006 Procedures for Nonappropriated Funds Financial Management and Accounting, Chapter 9 is hereby appended with the following paragraphs: Chapter 1 PRINCIPLES, STANDARDS, AND REQUIREMENTS 11 Establishment, Merger, or Dissolution of NAFIs.

4 11 Procedures for NAFI Dissolutions: .. 11 Management Fee Agreements .. 12 Management of Services Snack Bar Operations.. 13 Assets.. 13 Liabilities.. 13 Fund Equity.. 13 Prior-Period Fund Equity Adjustments.. 14 Extraordinary Items.. 15 LOF File.. 15 Appropriated Fund (APF) Financial Data.. 16 MAJCOM Supplements.. 16 Requests for Technical Assistance or Waiver.. 16 Forms.. 16 Disposition of Records.. 16 Program Training Aids (PTAs).. 16 Chapter 2 NAF AO 17 NAF AO Standards.. 17 NAF AO Relation to Other Type Funds.. 17 NAF AO Funding Support.. 17 NAF AO Organization.. 19 Chapter 3 BUDGETING 20 When to Start the Budget Process.

5 20 Training.. 20 Developing Financial Goals and Objectives.. 20 How to Prepare the NAF Income and Expense (I&E) Budget.. 20 How to Prepare the NRB.. 21 NAF Budget Review and Approval Process.. 21 AFMAN34-214 14 February 2006 3 NAF Cash Flow Budget Preparation.. 22 APF Requirements Budget.. 23 Budget Working Committee.. 23 Variable Budgeting.. 23 Minimum Requirements for Financial Analysis.. 23 NAF Vehicle Budget Exhibit.. 23 Figure Suggested NAF Budgeting Actions Schedule .. 25 Figure Suggested Civilian NAF Budgeting Actions Schedule .. 26 Figure Sample NAF Vehicle Budget Exhibit.. 330 Chapter 4 CHANGES IN CUSTODIAN OR ACTIVITY MANAGER 28 Changes of Custodian and Activity Managers - Timing.

6 28 Custodian or Alternate Custodian Change.. 28 Activity Manager Changes.. 28 Acceptance of Accountability.. 29 Figure Format for Memorandum Receipt Custodian or Alternate Custodian Change .. 30 Figure Format for Memorandum Receipt-Activity Manager.. 31 Chapter 5 COMMERCIAL CREDIT SYSTEMS AND MERCHANTS AGREEMENTS 32 Commercial Credit Systems.. 32 Merchant Agreements.. 33 Chapter 6 PAYROLL 35 Nonappropriated Fund Management Information System (NAFMIS) Payroll.. 35 Circular E.. 35 Payroll Checks/EFT.. 35 MANUAL Pay Preparation.. 35 Loans to Employees.. 36 Payroll Interface to the General Ledger (PRIGL).. 36 Adjustments to PRIGL.

7 36 Unclaimed Payroll Checks.. 37 Individual Pay Record (IPR).. 37 Basis for Entitlements.. 37 Annual and Sick Leave.. 37 Leave Balance Insufficient to Cover Leave Requested.. 37 4 AFMAN34-214 14 February 2006 Advance Annual and Sick Leave.. 38 Transfer of Annual and Sick Leave.. 38 Transfer of Annual Leave Under Portability.. 38 Annual and Sick Leave Timekeeping Responsibilities: .. 38 Military Leave.. 39 Military Furlough.. 39 Court Leave.. 39 Meals Furnished to Employees.. 40 Employee Awards.. 40 Unemployment Compensation.. 40 Severance Benefits.. 41 Separation Allowances.. 41 Labor Transfers.. 42 Withholding Allowance Certificate.

8 42 Advance Payment of Earned Income Credit (EIC).. 43 Tax Tables and Tax Periods.. 43 Methods of Withholding.. 43 Adjustments to Withheld Income Taxes: .. 45 Tax Returns and Payments.. 45 TD Form W-2.. 45 Withholding in Overseas Areas.. 46 Withholding From Nonresident Aliens in the United States: .. 46 Withholding From Resident Aliens.. 46 Local and State Government Reports.. 46 Foreign Payroll Deductions: .. 46 Federal Payroll Taxes.. 47 Quarterly and Annual Reports.. 48 Annual Wage and Tax Reconciliations.. 49 US Savings Bonds.. 49 Other Authorized Deductions.. 49 Supporting Statement for Voluntary Deductions.. 50 Net Pay to Financial Institutions.

9 50 Tip Reporting and Allocation.. 50 AFMAN34-214 14 February 2006 5 Service Charges.. 51 Group Health and Life Insurance.. 51 Workers' Compensation Program.. 51 SF 1150.. 52 Chapter 7 PROPERTY 53 When to Capitalize NAF Fixed Assets.. 53 Construction-In-Progress.. 53 Fixed Assets-APF Titled.. 55 Live Stock.. 55 Grants.. 55 Donations.. 55 Non-reimbursable Transfers.. 55 General Services Administration (GSA) Seized Property.. 55 DRMO Property.. 56 Leases: .. 56 Repair of Fixed Assets.. 58 Depreciation.. 58 Trade-In of Assets.. 59 Disposition of Assets.. 59 NAF Fixed Assets Inventory.. 59 Acquisition of Expendable Items.

10 59 Reserved.. 61 Aero Clubs.. 61 NAF Labor Costs Incurred During Self-Help Renovation Projects: .. 61 Table Criteria for Capitalizing Purchases.. 63 Table Depreciation/Amortization Rate Schedules.. 64 Chapter 8 REVENUE AND PROMOTIONAL PROCESSING 68 Daily Revenue Processing.. 68 Special Function Gratuities.. 68 Accountability Using Point of Sale (POS) System: .. 68 AF Form 1875.. 68 Cash Refunds.. 69 Petty Cash Purchases From Change Funds/Receipts.. 69 6 AFMAN34-214 14 February 2006 Returned Checks.. 69 Telephone Charges.. 69 Promotions.. 69 Coupons.. 69 Gift Certificates.. 69 Recycling Program.. 70 Token Accountability.