ACN 075/19 - JUL 2019 MORALE, WELL BEING, AND RECREATION (MWR) – UPDATED POLICY GUIDANCE

united states coast guard

ALCOAST COMMANDANT NOTICE                            CANCEL DATE 17 JUL 2020


R 180836 JUL 19
FM COMDT COGARD WASHINGTON DC//CG-1//
TO ALCOAST
UNCLAS//N01710//
ACN 075/19
SUBJ:  MORALE, WELL BEING, AND RECREATION (MWR) – UPDATED POLICY GUIDANCE
A. Coast Guard Morale, Well-Being, and Recreation Manual, COMDTINST
M1710.13 (series)
1. The Community Services Command (CSC) MWR staff will be updating REF (A)
with the anticipated revision being released in May 2020. To assist Commands
in planning for NAF (Non-Appropriated Funds) Year 2020 and to assist with the
current NAF Year 2019 operations, the following policy guidance is provided
to update REF (A):
    a. External Audit Requirement: Chapter 8.C.2. of REF (A) should now read:
“Commands with NAF employees within Category B and C MWR Activities must
engage a Certified Public Accountant (CPA) to conduct its annual MWR audit
once every three years. A local audit board must be used during other years.”
Units that have not conducted this external CPA audit for NAF Years 2017 or
2018 must plan to conduct an external CPA audit of their program for NAF
Year 2019, which ends 31 January 2020. Although appropriated funds (APF)
are authorized for this purpose, if APF is not available, units must plan
accordingly to pay for this expense with the use of NAF.
    b. Debit Cards: Chapter 10.A.2.d. of REF (A) should now read: “Debit and
credit cards may be used as a procurement tool per the procurement guidance
obtained in REF (A). Commands using these type cards for NAF procurement
purposes must establish internal controls to properly safeguard them.”
It should be noted that a debit card provides a greater risk to unit MWR
accounts if compromised. Units should continuously maintain oversight and
accountability of their accounts and take action at any sign of compromise.
    c. Resale Operations: Chapter 10.B.1.b.(5) of REF (A) should now read:
“Commands must get written authorization from the CSC prior to accepting
credit or debit cards, as a form of payment for goods or services within
the MWR/NAFI program, with a point-of-sale (POS) system or with an online
third-party service provider. Commands must maintain Payment Card Industry
(PCI) and European Mastercard VISA (EMV) compliance, annually, in order to
accept payment cards. The CSC will provide annual compliance standards for
units to fulfill. Failure to maintain compliance will result in the loss of
the ability to accept payment cards as a form of payment. Commands authorized
to accept payments cards within their MWR/NAFI program, will be required to
pay their prorated share of the central Cyber Insurance premium expense
associated with PCI/EMV compliance.” Additional policy requirements for
online E-commerce to support MWR/NAFI events are as follows: “If accepting
payment cards online, in addition to the 3rd party vendor being PCI compliant,
the liability for a breach must be assumed by the 3rd party. In all cases of
accepting payment cards online or in person, the bank account(s) associated
with payment collection must be in the name of the unit’s morale fund/NAFI
account and never an individual’s name.”
2. These changes will be implemented into the next revision of REF (A), which
will be released within the next year.
3. Please direct any questions to the CSC point of contact Mr. Ron Ray at:
Ron.H.Ray@uscg.mil or (757) 842-4927. PCI/EMV Compliance questions should
be directed to Mr. James Palmer at: James.Palmer@cgexchange.org or
(757) 842-4907.
4. Released by RADM J. M. Nunan, Assistant Commandant for Human Resources.
5. Internet release is authorized.