Appendix B to Part 246 - Business and Financial Operations
32:2.1.1.1.43.0.1.8.17 : Appendix B
Appendix B to Part 246 - Business and Financial Operations
A. General Financial Operations. 1. For financial
management purposes, the Unified Commands shall administer the
Stars and Stripes (S&S), with policy oversight exercised by the
Director of the American Forces Information Service (AFIS), as
nonappropriated fund instrumentalities (NAFIs) in accordance with §
246.4(c), except where procedures differ as defined in this part.
The S&S shall report as prescribed in DoD Instruction 7000.12,
1 providing information copies to the Unified Commands and the
Director of the AFIS.
1 Copies may be obtained, at cost, from the National Technical
Information Service, 5285 Port Royal Road, Springfield, VA
22161.
a. The S&S shall be authorized nonappropriated fund (NAF)
and appropriated fund (APF) support as category B NAFIs as provided
under DoD Instruction 1015.6. 2
2 See footnote 1 to A.1. of this appendix.
b. The S&S shall be funded to the maximum extent possible
through the sale and distribution of the newspaper, news magazines,
books, periodicals, and similar products; job printing; authorized
advertising revenues; and other authorized sources of revenue, as
approved by the Department of Defense and the Congress.
c. APF support shall be kept to a minimum, consistent with the
S&S mission.
2. The Secretary of the Army shall be the DoD Executive Agent
for APF and NAF support to the S&S. If adverse conditions
occur, the other Military Services shall provide proportionate
funding support through a memorandum of agreement (MOA) containing
funding procedures coordinated with the affected Unified Commands
and the AFIS. Copies of the agreement shall be provided to all
concerned parties.
3. The Stars and Stripes and other S&S commercial resale
publications may be made available within the Unified Command to
other U.S. Government Agency members, and U.S. Government
contractors, as approved by the Unified Command.
4. The S&S system of accounting and internal control shall
conform with the requirements of DoD Instruction 7000.12, Army
regulations on Morale, Welfare and Recreation (MWR) activities and
NAFIs, and NAF accounting policies and procedures, except as
authorized by the S&S Comptroller's Manual to meet business and
consolidation requirements. The S&S shall ensure that quarterly
reports are furnished to the Unified Commands, the S&S Board of
Directors, and the Director of the AFIS.
B. Appropriated Funds. In addition to DoD Directive
1015.6, the S&S shall be authorized APF support:
1. As provided by the U.S. Army for direct funding support when
adverse conditions make such funding necessary to ensure the
survival of the newspaper without impairment of mission capability.
The Secretary of the Army shall provide such funding when requested
by the affected Unified Command Commander-in-Chief (CINC), through
the Director of the AFIS.
2. For regional air transportation of the newspaper, overseas
“transportation of things” as authorized to joint-Service NAFIs;
and electronic, optical, or satellite transmission of the newspaper
when long distances require these modes to ensure timely and
economical delivery.
3. As required, to transport Stars and Stripes to officially
designated “remote and isolated” locations. The Unified Commands
may authorize DoD official postage to remote and isolated
locations, if that action is required to ensure timely delivery.
Each S&S shall annually review its mailing support to minimize
APF expenditures. The U.S. postal regulations apply to the
S&S.
a. The S&S shall use in-house or other non-postal means of
transportation to distribute the newspaper to areas that are not
designated as remote and isolated.
b. The S&S are authorized to use official managerial and
administrative mail related exclusively to the business of the U.S.
Government in accordance with DoD 4525.8-M, 3 Chapter 3, Subsection
O.8. Such official mail is also authorized to support archive
responsibilities in the United States, as designated by the AFIS.
Official mail may forward the Stars and Stripes through the
Department of Defense to the Congress. Official mail is not
authorized to provide the Stars and Stripes to general readership
or to support in-theater distribution of S&S resale commercial
publications.
3 See footnote 1 to A.1. of this appendix.
4. For transportation of military personnel incident to
mission-essential travel, required military training, participation
in contingency operations, in military field exercises, such as
“REFORGER” or “TEAM SPIRIT,” or to areas of armed conflict.
5. In times of armed conflict or national contingency
deployment, as directed by the Chairman of the Joint Chiefs of
Staff for production and free distribution of the Stars and Stripes
to forces as designated. The other Military Services shall
reimburse the Department of the Army for services as authorized in
the MOA. The Unified Commands shall endeavor to provide the Stars
and Stripes and other S&S services for DoD personnel engaged in
military operations, contingency operations, and exercises in the
most expeditious manner possible as requested by the participating
commands. The requesting Unified Command shall be responsible for
distribution of the Stars and Stripes within its theater of
operations. These services shall be provided on a reimbursable
basis to the S&S.
6. In other agreements as made with the Unified Commands, the
Department of Defense, and the U.S. Army as the DoD Executive
Agency.
C. Nonapproriated Funds. 1. So that the Department of the
Army may perform its duties as the DoD Executive Agency, the
S&S NAFS shall be invested in the Army's Banking and Investment
Program and insured with the Army's Risk Management Insurance
Program in accordance with DoD instruction 7000.12 and the
implementing Army regulations.
2. Excess NAFs belonging to the S&S may be declared excess
by the Unified Command CINC, upon the recommendation of the S&S
board of directors, under the guidelines in section C.3. of this
appendix. Disposition of excess NAFs shall be as directed by the
Unified Command CINC. The S&S NAFs declared in excess in one
theater may be allocated or loaned to the other Unified Command for
S&S-related activities.
3. The S&S NAFs may be declared in excess only if the
following conditions are met:
a. The S&S working capital is at a level to continue prudent
operations.
b. The local national S&S employee retirement and severance
accounts are fully funded. The other S&S employment agreements
required by applicable NAF regulations must also be fully
funded.
c. Sufficient capital is available from an investment and/or
contingency fund to complete all planned and projected capital
expenditure projects, and to fulfill the other legitimate S&S
business obligations.
d. Additional sinking funds are available to sustain the S&S
through foreseeable periods of financial crisis created by adverse
conditions. The sinking fund level shall be determined by the
S&S board of directors and recommended to the Unified Command
CINC for approval.
e. The retail price of the Stars and Stripes is at, or below,
the most prevalent charge for similar U.S. newspapers. That shall
be determined by the S&S board of directors and recommended to
the Unified Command CINC for approval. The Director of the AFIS
will be informed of any decision to raise the retail sales price of
Stars and Stripes and will provide the Unified Command CINC an
assessment of average commercial newspaper sales prices throughout
the United States. The availability of the Stars and Stripes at
reasonable cost to overseas personnel, commensurate with the retail
sales price of comparable commercial newspapers throughout the
United States, is a major quality-of-life consideration. A
reasonable retail sales price is critical to ensure the greatest
access for all overseas personnel and their family members to
current print news and information so that they may remain informed
U.S. citizens.
f. The S&S books, periodicals, magazines, and similar
products are to be sold at no more than cover price and should be
discounted to an appropriate level that still sustains full S&S
operations, as determined by the S&S board of directors and
recommended to the Unified Command CINC for approval.
4. Under adverse conditions, the S&S commander/publisher may
apply for NAF support through the Unified Commands to the Director
of the AFIS. Following approval by the Unified Command, the
Director of the AFIS shall forward the request to the Secretary of
the Army for appropriate action. Such NAF requests must first be
recommended by the S&S board of directors and approved by the
Unified Command CINC. In these cases, the S&S NAFs in either
Unified Command may be considered as the first source before
forwarding a request to the Department of the Army. The Unified
Commands may lend NAFs from one S&S to the other through an
MOA.
D. Bookstores and Related Resale Activities. 1. The
S&S shall endeavor to provide the same selection of resale
commercial publications that would be available in quality
bookstores in the United States through its bookstores, or, at the
discretion of the S&S management, other authorized sales
outlets. The S&S has the same authorities and rights for resale
and distribution of commercial publications that the military
exchange services have on military installations for other
nonsubsistence goods and services. The assortment of commercial
books, periodicals, magazines, and similar products shall
approximate publications commercially available in United States
bookstore chains of similar size. Decisions on which publications
to include shall be made by the S&S on the basis of
marketability and service, not content. As an exception to the Army
NAF procurement regulations, contracting authority limitations
applicable to U.S. Army and joint-Service NAFIs do not apply to the
S&S procurement of resale commercial publications. Limitations
will be as recommended by the S&S board of directors and
approved by the Unified Command.
2. The Unified Command CINC shall adjudicate publications resale
issues within the theater that cannot be resolved by the S&S at
the operating level.
3. Both S&S shall consolidate their wholesale purchases of
commercial publications to the maximum extent, consistent with
Unified Command distribution criteria, actual economies of scale,
and cost-efficiencies. Consolidation initiatives shall be worked in
concert with the Unified Commands, the AFIS, and the S&S board
of directors. As recommended by the S&S board of directors and
approved by the Unified Command CINC, the S&S bookstores shall
offer discounts similar to commercial United States bookstore
franchises. The offering of discounts should not endanger the
financial viability of the S&S.
4. The S&S bookstores shall be audited by the S&S
management at least annually. Where bookstores are operating at a
consistent financial loss, the S&S may consider servicing
readers through arrangements with exchanges, other military
outlets, or consider consolidation at central points.
a. Bookstore inventory levels shall be verified internally on a
semiannual basis. Inventory levels shall be held to cost-effective
levels that still consider the servicing needs of overseas
customers.
b. The S&S shall establish affidavit-return procedures to
vendors and/or publishers, where possible, to return damaged
merchandise, overstock, or out-of-date publications to reduce APF
expenditures necessary for “over-the-water” transportation.
5. The S&S shall conduct local “market-penetration” surveys.
The S&S shall also operate a “customer-complaint” feedback
system to monitor its service and provide the best possible service
to its customers. The results of those surveys shall be provided to
the Unified Command with recommendations to the S&S board of
directors, as required.
E. Advertising. 1. As U.S. Government publications, the
Stars and Stripes operate under the authority of the “Government
Printing & Binding Regulations” 4 issued by the Joint Committee on
Printing (JCP) of the U.S. Congress. To serve the readership, the
JCP has granted an exemption to Title III of the “Government
Printing and Binding Regulations”, authorizing the Stars and
Stripes to carry limited advertising so that they may provide
information to overseas DoD personnel and their families on
commercial goods and services. The Stars and Stripes are authorized
to solicit, sell, publish, and circulate display advertising, paid
classified ads, and supplement section advertising, to include
price and brand names of products or services and related coupons
that are available through authorized Government outlets, their
concessionaires, NAF activities, or private organizations operating
on DoD installations under 32 CFR part 212. The Stars and Stripes
may have run-of-the-paper display advertising not to exceed 25
percent of the newspaper over a period of 1 month. In addition, the
Stars and Stripes are authorized to sell, publish, and circulate
display advertising, and supplement section advertising for
consumer goods and services not available through authorized
Government outlets, their concessionaires, NAF activities, or
private organizations operating on DoD installations under 32 CFR
part 212 when sponsored by MWR activities, NAFIs, or Type I
(Federally Sanctioned) private organizations as defined by 32 CFR
part 212. Implementation of the advertising authority shall be as
specified by the Director of the AFIS, who shall coordinate with
the JCP.
4 Copies may be obtained from the Joint Committee on Printing of
the U.S. Congress, 818 Hart Senate Office Building, Washington, DC
20510.
2. The Stars and Stripes may sell, through commercial
advertising agencies, run-of-the-paper advertising of DoD
recruiting and retention programs or activities.
3. The S&S has the right to refuse any advertising.
4. The Stars and Stripes may publish news stories on special
DoD-affiliated tours or entertainment opportunities for DoD
personnel and their dependents in accordance with DoD Instructions
1015.2 5 and 1330.13 6 .
5 See footnote 1 to A.1 of this appendix.
6 See footnote 1 to A.1 of this appendix.
5. The S&S may promote the Stars and Stripes, books,
periodicals, magazines and similar products; authorized
advertising; and job printing services (except APF) in the Stars
and Stripes. Books, periodicals, magazines, and similar product
promotions may include publications by name, title, author, and
price. The Stars and Stripes also may promote literacy, health,
safety, and other community service issues.
6. The S&S may promote AFRTS schedules, programs, and
services in their newspapers and bookstores. The S&S shall
cooperate with AFRTS outlets to promote each others' programs and
services as authorized by DoD Directive 5120.20 7 .
7 See footnote 1 to A.1 of this appendix.
7. As a newspaper operated by the Department of Defense, the
Stars and Stripes may not:
a. Contain any material that implies that the DoD Components or
their subordinate levels endorse or favor a specific commercial
and/or individually-owned product, commodity, or service.
b. Subscribe, even at no cost, to a commercial, feature wire, or
other service whose primary purpose is the advertisement or
promotion of commercial products, commodities, or services.
c. Carry any advertisement that implies discrimination as to
race, age, origin, gender, politics, religion, or physical
characteristics that include health.
F. Trademark. The S&S shall trademark the Stars and
Stripes in overseas areas where it is distributed.