Which items are commonly funded by Non-Appropriated Funds (NAF)?

Study for the Certified Defense Financial Manager (CDFM) Exam 1. Engage with flashcards and multiple choice questions, with hints and explanations for each query. Prepare confidently for your exam!

Multiple Choice

Which items are commonly funded by Non-Appropriated Funds (NAF)?

Explanation:
Non-Appropriated Funds are used to support services and facilities that directly benefit service members and their families through their own revenue streams, rather than through congressional appropriations. This funding supports Morale, Welfare, and Recreation programs and related services, such as activities and facilities that generate income or operate from non-appropriated sources. The items listed—MWR programs, lodging (billeting), retail exchanges, Fisher Houses, the Stars and Stripes newspaper, and chapels—are all classic examples funded by NAF because they exist to provide quality-of-life services funded through user fees, sales, or private support rather than through the General Fund. In contrast, pensions for Army personnel, the General Fund of the Treasury, and grants to states come from appropriated funds and are funded through congressional appropriations.

Non-Appropriated Funds are used to support services and facilities that directly benefit service members and their families through their own revenue streams, rather than through congressional appropriations. This funding supports Morale, Welfare, and Recreation programs and related services, such as activities and facilities that generate income or operate from non-appropriated sources. The items listed—MWR programs, lodging (billeting), retail exchanges, Fisher Houses, the Stars and Stripes newspaper, and chapels—are all classic examples funded by NAF because they exist to provide quality-of-life services funded through user fees, sales, or private support rather than through the General Fund.

In contrast, pensions for Army personnel, the General Fund of the Treasury, and grants to states come from appropriated funds and are funded through congressional appropriations.

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