Armed Forces Recreation Center-Europe

摘要

The audit was performed in response to DoD Hotline allegations concerning the facility management and contracts for the Armed Forces Recreation Center-Europe (AFRC). AFRC supports the U.S. European Command by providing recreation, hospitality, and other morale and welfare enhancing activities. Army Regulation 215-1, update 16, 'Administration of Army Morale, Welfare, and Recreation Activities and Nonappropriated Fund Instrumentalities', October 10, 1990, establishes a system to categorize activities according to their relationship to the Army mission and their ability to be financially self- sustaining. Self-sustaining businesses capable of funding most of their own expenses are Category C activities and should receive very limited direct appropriated fund support. A review conducted by Pannell, Kerr, Forster in 1984 stated that AFRC was not self- sufficient or cost-effective. A financial statement report for FY 1992 disclosed that AFRC depends on appropriated fund support for its continued operations. The nonappropriated fund financial statements also reported that AFRC operated with a FY 1992 nonappropriated fund loss of about $0.31 million after depreciation.