Are NAF separate and apart from the funds recorded in the books of Treasury?

• A. No
• B. Yes
• C. Only for certain programs
• D. Not applicable

Answer: (B)

Non-appropriated funds are revenues that do not come from congressional appropriations and are kept separate from the funds recorded in the Treasury. They come from activities the organization operates themselves—such as clubs, recreation programs, services, and other fee-based activities—and are accounted for in their own NAF books. This separation ensures these resources are used specifically for the programs and services they fund, rather than being part of the general government funds managed through the Treasury. While they are distinct from appropriated funds, NAF still belong to the government and are governed by appropriate internal controls and financial management practices to ensure proper stewardship.