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CHAPTER  3 FUNDING In   this   chapter,   we   will   discuss   the   various   types of  funds  for  which  you,  as  an  official  mail  manager (OMM),   will   be   responsible.   We   will   also   discuss   the accounting   system   for   prepaid   postage,   metering systems,   and   various   cost-saving   mail   services. TYPES  OF  FUNDS There   are   three   basic   types   of   funds:   appropriated (operations   and   maintenance,   Navy   [O&M,N]); Nonappropriated   funds   (NAF);   and   Navy   Working Capital   Funds.   Operations   and   maintenance,   Navy funds   and   Navy   Working   Capital   funds   are   authorized by    Congress,    whereby    nonappropriated    funds    are obtained   from   various   Department   of   the   Navy   (DON) funding. APPROPRIATED Appropriated   funds   is   the   money   allocated   by Congress   to   the   Department   of   the   Navy   for   the O&M,N  fund.  Official  postage  funding  is  part  of  the appropriated   allocation.   Official   mailings   of   host activities  for  support  to  tenant  activities  is  authorized f r o m    a p p r o p r i a t e d    f u n d s    f o r    t h e    f o l l o w i n g organizations: Operations   and   maintenance,   Navy   is   funded   by Navy   and   Marine   Corps   tenant   activities   on   a non-reimbursable   basis Other   government   agencies   (U.S.   Army,   U.S. Air  Force,  and  so  forth)  on  a  reimbursable  basis The   only   mailings   authorized   from   O&M,N   funds for   nonappropriated   fund   activities,   such   as   clubs   and recreational   services   are   reports   and   correspondence concerning   regulations   or   policies   administered   by   the Department   of   the   Navy   (DON).   Operational   mailings, such   as   advertising   matter,   may   not   use   appropriated funds. Official   mailings   should   be   restricted   to authorized   patrons   only. Q1.   Appropriated   funds   are   appropriated   by   what legislative  branch  of  the  government? 3-1 NONAPPROPRIATED    FUNDS Nonappropriated  funds  (NAF)  are  generated  from s e r v i c e     f e e s     a n d     o t h e r     N a v y     r e c r e a t i o n revenue-generating   sources.   A   portion   of   these   funds are   then   used   for   official   mailings   by   NAF   activities. Navy  exchanges  may  use  Department  of  Defense (DOD)   official   intratheater   mail   for   official   mailings between   overseas   exchanges   of   uniform   items   that   the exchanges   are   required   to   carry   by   the   Navy. Nonappropriated   funds   are   used   for   operational mailings,   such   as   advertising   matter. Advertising   matter   may   consist   of   the,   following: Skeet   shoot   events Golf   tournaments Required  admission  fees Films   for   paid   exhibition Bills   mailed   to   members   or   customers NAVY  WORKING  CAPITAL FUNDS Navy   Working   Capital   Funds   is   money   allocated by   U.S.   Congress   to   DOD   for   operational   matters. Official   postage   funding   is   a   portion   of   this   allocation. Official   mailings   of   tenant   activities   maybe   paid   for through   the   Navy   Working   Capital   Funds   of   the   host activity   on   a   reimbursable   basis. Q2.  Navy  Working  Capital  funds  may  only  be  used  by activities   for   what   type   of   mailings? ACCOUNTING   SYSTEM   FOR   PREPAID POSTAGE The   command   official   mail   manager   (OMM)   and at   least   one   alternate   will   file   a   Signature   Card,   DD Form  577  (fig.  3-1),  with  the  serving  disbursing  officer (DO).   The   signature   card   authorizes   the   OMM   to accept   checks   payable   to   the   applicable   postmaster   to purchase   postage   instruments   such   as   envelopes, postage   stamps,   stamped   cards,   and   so   forth.

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