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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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