Department of Defense Financial Management Regulation (DoD FMR) Volume 13, titled “Nonappropriated Funds Policy,” establishes the comprehensive financial management, accounting, and reporting framework for all DoD Nonappropriated Fund Instrumentalities (NAFIs). Operating independently from the Treasury's appropriated funds, NAFIs are required by this volume to adhere to Financial Accounting Standards Board (FASB) Generally Accepted Accounting Principles (GAAP) and utilize accrual accounting. The regulation mandates the use of the NAF Standard General Ledger (NAFSGL) and provides detailed guidance on the classification, valuation, and recording of assets, liabilities, net worth, income, and expenses. It outlines rigorous financial reporting standards, including th ...