scope:

Policies in this chapter apply to all NAFIs, NAF payroll offices, and their supporting accounting offices (AOs). In accordance with Department of Defense Instruction (DODI) 1015.15, "Establishment, Management, and Control of Nonappropriated Fund Instrumentalities and Financial Management of Supporting Resources", section 5.4., they do not apply to the Armed Service Exchanges.

Purpose

This chapter provides the standard Nonappropriated Fund (NAF) policies for NAF payroll. NAF employees are not paid from funds appropriated by Congress but from funds generated by Nonappropriated Fund Instrumentalities (NAFIs). NAF employees are Federal employees, but they are not covered by most laws administered by the Office of Personnel Management (OPM), unless specifically provided by statute (e.g., statutes cover NAF employees in areas such as wage-grade pay and labor relations).