AFMAN34-209 2 OCTOBER 2019 43
4.3.4. Nonappropriated Fund Construction. Nonappropriated Fund facility construction
projects or facility renovations are charged to construction-in-progress, general ledger account
code 185XXXX or 180XXXX, based on Internet Based Purchasing System purchase order or
contract, Internet Based Purchasing System receiving reports for goods received or partially
completed construction or paid by Purchasing Card. Construction in progress includes all costs
attributable to an ongoing construction project to include costs of new buildings, renovations
of existing buildings, and fixed assets purchased as part of the project. This includes payments
such as contract progress payments, design costs, project validation assessment, purchases of
equipment items and purchases of supplies, which will not be used until the project is complete.
The Nonappropriated Fund Accounting Office will maintain general ledger account code
185XXXX by Nonappropriated Fund Instrumentality, activity, program, and cost center. The
Nonappropriated Fund Accounting Office will use the activity cost center of the accounting
string to designate the specific project or a separate general ledger account code 185XXXX or
180XXXX.
4.3.4.1. Beneficial Occupancy. The beneficial occupancy date is the date the new or
renovated facility is open for patron use. If the project is not for patron use, the beneficial
occupancy date is the date the structure is used by employees (e.g., golf maintenance
facility) or for its intended purpose (e.g., golf irrigation system). The Force Support
Deputy takes the necessary actions outlined in AFI34-205, Services Nonappropriated Fund
Facility Projects, on the beneficial occupancy date for Nonappropriated Fund funded
projects.
4.3.4.2. The Nonappropriated Fund Accounting Office will maintain a separate project
subsidiary folder for each ongoing project. (T-1) The folder contains copies of all
accounting-related documents pertaining to the project (e.g. contract, modifications,
budget approvals, copies of paid invoices, receiving reports, etc.). In addition to the
detailed supporting documents, the subsidiary must contain a construction summary, which
lists the financial transactions relating to the project. (T-1) As a minimum, the summary
should list each payment, payment date, amount, and the purpose of the payment (e.g.
construction, equipment, bulk purchases, supplies). The Nonappropriated Fund
Accounting Office must reconcile the subsidiary to the general ledger monthly. (T-1) This
summary and the backup documents are used at the end of the project to remove items
from the construction in progress account to the respective general ledger account codes.
4.3.4.3. When starting a new renovation, the Nonappropriated Fund Accounting Office
should review the property list of the respective activity to identify previous renovations in
the same activity. The Resource Management Flight Chief, working with the activity
manager, determines which previous renovations will be substantially changed by the new
renovation. If the renovation description on the property list is unclear, the Resource
Management Flight Chief makes the final determination or changes the property
description to include more descriptive information to better identify the renovation area.
The Resource Management Flight Chief writes off the undepreciated value of a previous
renovation when the new renovation substantially changes the previous one. The
undepreciated value is written-off to the gain or loss on Disposal of Assets accounts in the
benefiting activity (general ledger account code 9130000, Gain or Loss on Disposal of
Assets). See paragraph 4.12. for information on disposal documentation.