INFORMATION BRIEFING

1. INFORMATION BRIEFING MWR Board of Directors PURPOSE: To provide information on the MWR Board of Directors (BOD)

2. Membership Board Of Directors ASA(M&RA) Cdr, AMC [Chair] Executive Secretary: Cdr, USAREUR DCS, G1 Cdr, FORSCOM Asst Executive Secretary: Cdr, TRADOC CG, CFSC Cdr, USFK Cdr, USARPAC SMA BOD Mission: Develop program, resource, and finance strategies Develop short and long term goals and objectives Establish implementing plans and performance measures Maintain corporate MWR and lodging oversight, including fiduciary responsibility Executive Committee DCS, G1 [Chair] CofS, USFK ASA(M&RA) Rep Nonvoting: AAFES, TJAG DCG/CofS, AMC Small MACOM Representative (MEDCOM) Executive Secretary: CG, CFSC DCG/CofS, FORSCOM Retiree Representative Advisors--LTG(R) Carney, DCG/ CofS, TRADOC DAB PDASA(FM&C), Dir, IMA DCG/CofS, USAREUR ACSIM DCG, USARPAC SMA Rep Audit Committee Small MACOM Rep (MEDCOM) [Co-Chair] PDASA(FM&C) [Co-Chair] Advised by USA Audit Agency Assisted by Internal Review Offices MWR Working Group Investment Subcommittee Capital Investment Review Board

3. Responsibilities Board of Directors • Approves major management initiatives • Reviews Executive Committee actions as necessary • Retains fiduciary responsibility BOD provides strategic direction for Army MWR Executive Committee • Approves major issues for presentation to the MWR BOD • Acts on behalf of the MWR BOD as needed • Approves MWR/lodging goals, management initiatives, & programs • Reviews & approves implementing strategies • Evaluates performance for goal attainment Audit Committee • Identifies vulnerable MWR/lodging programs or systems for audit consideration • Advises management of significant audit results • Directs follow-up for compliance • Monitors MWR/lodging management system of internal controls MWR Working Group Investment Subcommittee Capital Investment Review Board • Proposes investment implementation plan • Develops & analyzes investment implementation options & submits recommendations for review • Evaluates investment performance • Recommends financial management actions/implementation • Reviews summary reports/trends • Develops overall investment strategy • Recommends NAF resource allocation • Reviews & recommends financing plans • Develops working level issues& recommendations • Develops long & short term goals • Recommends implementation plans & measures of performance • Reviews goals & plans for alignment with corporate objectives • Ensures linkage with budget • Reviews & prioritizes projects

4. Meeting Cycle Board Of Directors Meetings: Feb & Oct (In conjunction with CSA Commanders’ Conferences) Executive Committee Meetings: 2-3 weeks prior to MWR BOD Audit Committee Meetings: 1 week before ExCom Investment Subcommittee Capital Investment Review Board MWR Working Group Meetings: 4 wks prior to ExCom

5. 22 Apr 93 3 Mar 94 2 Mar 95 6 Mar 96 18 Feb 97 22 Feb 98 24 Feb 99 22 Feb 00 12 Feb 01 11 Feb 02 11 Feb 03 9 Feb 04 10 Feb 05 21 Oct 93 21 Oct 94 18 Oct 95 16 Oct 96 14 Oct 97 14 Oct 98 13 Oct 99 17 Oct 00 Oct 01 (email) 16 Oct 02 2 Oct 03 20 Oct 04 MWR BOD Meetings

6. MWR Board of DirectorsSummary of Apr 93 Meeting • NAF Major Construction (NAFMC) • Accepted the program execution year 93 and prior scrub of unawarded projects previously approved by Congress • Approved the FY 94 NAFMC program, including $26M in AMWRF-funded projects • Approved NAFMC financial plan to provide approximately $25M/year for future construction • Second Destination Transportation (SDT) • Supported full APF funding of AAFES legitimate SDT outyear costs in support of the Army executive agent commitment • MWR Standards • Unanimously approved the implementation of commander standards with a “mission box” that defines success • Child Development Services • Accepted financial turnaround plan • NAF subsidy goal set at NTE $400/space

7. MWR Board of DirectorsSummary of Oct 93 Meeting • BOD Charter/Bylaws • Approved amendment adding ACSIM as voting member of ExCom • NAF Management Intern Program • Endorsed reinstatement of program • Triennial Needs Assessment • Approved use of standard patron survey model for mandatory installation participation • Central funding and management • MWR Contingency Issues • Unanimously endorsed position that MWR during contingency operations must be funded with APF “mission dollars”

8. MWR Board of DirectorsSummary of Mar 94 Meeting • Financial Update • Approved limiting new loans to those for investment purposes only • Need to reduce installation operating deficits for overhead, child development services, and clubs • Business Programs • Endorsed consolidation of support functions • Endorsed strategic partnering to standardize and consolidate the procurement program • Approved position that clubs must break even by 1 Jan 95 • Endorsed initiatives in golf and bowling • Financial Assessment Standards for Category A and B Programs • Category A APF: 100% of requirement will be funded with APF • Category A NAF: NIBD is breakeven or positive; variance is within 15% of budget • Category B NAF: NIBD is breakeven or positive in the aggregate • Category C: NIBD is breakeven or positive, including allocated overhead; variance is within 15% of budget • NAFMC Program • Approved funding FY 95 program at $28.7M • Single Source Concept • Endorsed testing an initiative creating a single funding source

9. MWR Board of DirectorsSummary of Oct 94 Meeting • NAF Cash Sweep • Approved a maximum of 2:1 cash to debt ratio • Approved sweeping cash in FY 95 based on 31 Oct 94 data • Unique NAFIs may apply for exemption • Certain pre-sweep installation commitments will be honored • Approved capital reinvestment assessment of 2% in FY 96, and 3% thereafter • Financial Assessment Standards • Deleted “overhead” in Category C standard effective in FY 95 • Revised child care NAF subsidy standard to $200 effective in FY 95 • IMWRF total NIBD must be > 7 percent of total revenue effective in FY 96 • Revised Category A APF standard for FY 96 to 100% of program requirements • MWR Management Information System • Endorsed mandating use of MWR MIS standards Army-wide • Approved funding MIS centrally at estimated cost of $40M

10. MWR Board of DirectorsSummary of Mar 95 Meeting • Shades of Green • Agreed to defer a final decision on executing purchase until an independent, commercial consultant completes a review • Agreed to reconvene in Jun 95 to make final decision • NAF Major Construction • Approved FY 96 NAFMC program • Total available AMWRF funding to be determined after the analysis of Shades of Green and the AMWRF is finished • Approved project validation assessments for 16 FY 97 NAFMC projects • NAF Cash Sweep • Endorsed MACOM priorities totaling $13.2M • Endorsed exceptions to the sweep of approximately $1.275M • Remainder of $3.9M remains for BOD allocation in FY 95 • FY 94 Club Operations • Armywide, clubs experienced a significant turnaround of $2.3M in FY 94 • Approved annual briefing by MACOMs on club operations to the BOD • Army MWR Standards Assessments for FY 94 • Results of first year’s application were briefed • Army Amusement Game Program • Eight new proposals under consideration • Eight other locations under consideration for feasibility studies

11. MWR Board of DirectorsSummary of Oct 95 Meeting • NAF Major Construction • Approved FY 96 NAFMC AMWRF expenditure of $29.8M after deferring funding level decision at Mar 95 BOD meeting pending decision to purchase Shades of Green • NAF Employee Health Benefits • Approved increasing the employer contribution on the self-insured component to 65% from 50% • Approved AMWRF funding the 15% delta in employer contribution • Cost equates to approximately $3.1M/year • Top 5 Cash Enhancement Initiatives • Endorsed CFSC pursuit of top 5 initiatives as prioritized by MACOMs • APF/NAF Reimbursement • Mandate centralized prime vendor • Provide avenue for APF to contract with NAF for goods and services • Mandate standard product usage • Eliminate premium pay for NAF employees

12. MWR Board of DirectorsSummary of Mar 96 Meeting • Expanded BOD meetings to four per year -- as schedules permit • Approved critical financial management indicators to address cash to debt condition: • Develop an MWR business plan, to include standing policies to take effect when financial goals are not met (e.g., ARM, AAFES, field) • Tighten permissible budget variances • Establish moratorium on new initiatives requiring significant funding • Effective FY 96, aggregate MACOM CPMC execution may not exceed aggregate MACOM annual NIBD; aggregate MACOM cash to debt ratio must be 1:1 • Approved FY 97 NAFMC funding level -- $40M • Approved FY 98 Pre-CRB results • Added SMA to BOD • Green£ 15% revised to £10% • Amber > 15% and £ 25% revised to >10 and £15% • Red > 25% revised to >15%

13. MWR Board of DirectorsSummary of Oct 96 Meeting • MWR Financial Plan • Identifies 2 conditions under which the BOD will take action • When indicators reflect a potential cash to debt ratio of less than 1:1 over a 3-month period • -OR- • When the outstanding loan balance of the AMWRF is projected to exceed 50% of the aggregate field NAFI cash balances • Commanders’ Mission Box Changes • Effective FY 97... • Combine all Club operations into one line • Eliminate “FBE” line • Add new line for Food Operating results, regardless of program element • Beginning FY 98... • Change Child Care NAF subsidy standard from $200/space to...$100 in FY 98 $50 in FY 99 $0 in FY 00 • Service and Operations standards for Army Lodging program • Cost Facilities standards and present to the BOD

14. MWR Board of DirectorsSummary of Feb 97 Meeting • Tobacco Profits/Capital Reinvestment Assessment • AMWRF receives tobacco earnings and CRA rolls back from 3% to 2% beginning in FY 98 providing approximately $8.7M/year to installations • NIBD standard is adjusted upward to 7 percent for FY 98, 8 percent for FY 99, and stabilize thereafter • BOD will review options every 6 months to reach a cash to debt ratio of 1:1 (projected for FY 99) • Commanders’ Mission Box Changes • Effective FY 97... • Add pass/fail (green/red) standard to reflect CPMC execution limitation by splitting the circle • Beginning FY 98... • Set food standard to... 5% in FY 98 6% in FY 99 7% in FY 00 • subject to review thereafter • Army Lodging program • Authorized Facilities standards concept • Detailed requirements/costs to be presented to BOD • Construction Review Board • Approved FY 98 NAFMC program of $39.9M • Approved FY 99 NAFMC candidate projects

15. MWR Board of DirectorsSummary of Oct 97 Meeting • Display of CFSC • Overall reduction of 11 percent since FY 92 • 55 percent of personnel involved in “corporate responsibility,” 45 percent in field support • CFSC to continue internal study • Child Care Review Committee • Examined five performance measures • Challenged DOD formula to calculate demand • Army Lodging • Approved addition of lodging standards for budget, CPMC execution, and cash to debt ratio of the funds to the Commander’s Mission Box • Excess cash to be presented to BOD prior to consolidation • Army Community Service Restructuring • PATs recommended one-stop community service agency • Major issue is consolidation of Family Advocacy Program prevention and MEDCOM treatment programs • Recommended ExCom Issues • Approved the following • Self-Sufficiency Exemptions: Operational and Minor Construction • Medical/Life Insurance Benefits for retired NAF employees • Retirement credit for NAF employees for military service • Adhoc executive group review of DFAS issues

16. MWR Board of DirectorsSummary of Feb 98 Meeting • Changes to Commander’s Mission Box • Category A Program APF: Green = 100% APF funding; Amber = 85-99% APF funding; Red = less than 85% APF funding • Recreation Delivery System: Green = >90% of installations fully implemented; Amber = 75-89% of installations have initiated implementation; Red = <75% of installations have initiated implementation • Management Information System: Metrics to be approved at next BOD meeting • NAF Major Construction • Approved FY 99 NAFMC AMWRF expenditure of $44.3M • Approved additional $12M funded by MACOMs/installations • 18 PVAs approved for FY 00 program • Army Lodging • Approved ABF funding of $3.1M for 3 projects and a feasibility study for new construction at Menwith Hill Station • Approved facility standards • Approved excess cash disposition plan • Public/Private Ventures • Approved modification of contract provisions to allow an equitable settlement by the AMWRF if termination is for “military purposes” as declared by SecArmy • Army Community Service Reorganization • Commanders to have flexibility • Disapproved name change to Soldier and Family Support Center • Family Advocacy Program • MOA will specify details of funding support (OSD and MEDCOM non-OSD funds) • Details on procedure to be briefed at next BOD meeting

17. MWR Board of DirectorsSummary of Oct 98 Meeting • Changes to Commander’s Mission Box • Category A: Delete both standards. Use “GN” APF shortfall department to show unreimbursed NAF spent for APF authorized items. Track in FY 99, implement in FY 00. • CDS: Include all CDS, not just CDCs. Discontinue measuring by space, use NIBD standard of breakeven and measure budget performance. Effective FY 99. • MIS: Left side of gumball measures fielding, right side measures utilization. Effective FY 99. • Business Programs: Raise golf and bowling standards to 15% NIBD, with one percentage point increase per year to 21%. Raise food NIBD standard to 7%. Effective FY 00. • A-76 Corporate Strategy • For installations already announced: Ensure retention of IMWRF, task MACOM/CFSC to review PWS & MEO criteria, ensure NAF cash flow for capitalization. For all other installations: MACOM/CFSC develop template PWS and MEO criteria.

18. MWR Board of DirectorsSummary of Oct 98 Meeting (cont’d) • Army Lodging • Approved testing “one-roof” concept at one installation from FORSCOM, TRADOC, USARPAC, AMC, & USAREUR, beginning Oct 99. PAT will establish rules/goals and report back in Feb 99. • Approved ABF loans for Eustis & Lee renovations, and feasibility studies for Patch, Redstone, Bragg, Aberdeen, & Dugway. • Approved mandating ALPMS (GEAC/UX) deployment in guesthouses by Dec 99, funded by installations/ MACOMs. ABF funds help desk in FY 00, with guesthouse reimbursement. • Other Decision Items • WRAMC Mologne House: Approved abrogation of the $15.9M AMWRF loan to WRAMC IMWRF. • Ft Richardson Golf Course: Approved use of no more than $1.1M AMWRF funds for cost overruns. USARAK funds FF&E and course grow-in/maintenance costs • “Crunch Time: Approved funding $365K from AMWRF. Reduce FY 00 NAFMC by like amount. • SSE: Approved operational SSE of $10.8M, and minor construction projects at Bad Aibling ($292K - guesthouse) and USMA ($482K - driving range). • CSRS Retirement Credit for NAF Service: Support granting credit to employees w/NAF service from 1966-1986. Forward letter from Chair, BOD, thru CSA, to ASA(M&RA), supporting legislation.

19. MWR Board of DirectorsSummary of Feb 99 Meeting • Commander’s Mission Box: MWR/ACS Quality of Life Standards • Template to be staffed with MACOMs • Standards presented for approval at Fall 99 BOD • A-76 Corporate Strategy • Approved the withdrawal of child and youth services, Army Community Service, fitness/sports, and Category C activities from A-76 studies • Develop a corporate MWR/ACS MEO • Army Lodging Management • Rescinded directive to test “one-roof” concept • Directed MWR to assume operational and financial management of all lodging at every MACOM and installation • Executive-level PAT to determine the most efficient operational model • Capital reinvestment standards for TDY and guesthouse facilities to be presented for approval at Fall 99 BOD • NAF Major Construction (NAFMC) Program • Approved revised FY 00 NAFMC list including the Fort Hood bowling center project • Approved revised FY 01 project validation assessment list including community club project for Hawaii • Total AMWRF expenditure: $41.21M • Other • Fort Sam Houston Guesthouse Loan: Approved extending the repayment period from 15 to 20 years and suggested the commander lower room rates for lower grade soldiers in semi-official status • AFRC-Europe: Agreed with plan, adding that plan should be provided to CSA, SecArmy, and Congressional staffers before proceeding with the request for qualification

20. MWR Board of DirectorsSummary of Oct 99 Meeting • MWR/ACS Baseline and Mission Box Standards • Approved standards as presented • Results of Army-wide assessment to be presented at Feb 00 BOD meeting • DOD NAF Health Benefits Program • Approved funding the additional 5 percent of employer share from the AMWRF to achieve the 70 percent employer funding standard • Army Lodging Wellness Plan and Guest House Policy • Approved Wellness Plan • Approved creation of Army Lodging Fund, merging TDY billeting and guest house revenue from official travelers • Approved $6.00 per occupied room night surcharge to fund assessments, projects, and payment to AMWRF/IMWRF for undepreciated value of guest houses

21. MWR Board of DirectorsSummary of Oct 99 Meeting (cont’d) • Management Information System (MIS) • Approved increase in the MIS sustainment budget of $2.455M for FY 00 • Performance assessment of MIS to be presented at future BOD meeting • Enterprise Management System (EMS) • Approved creation of a selection panel to review the 4 candidate projects • Panel to report findings, including costs of each project, at future BOD meeting • Deferred vote on EMS acquisition until after panel report • Other • Fort Sam Houston Guesthouse Loan: Approved abrogation of the loan • Recreation Lodging NIBD Standards: Approved adding NIBD standards for the 2 CAT C recreation lodging components, effective FY 01 • Armed Forces Recreation Center - Europe: Negotiations ongoing regarding scope, cost, and debt service

22. MWR Board of DirectorsSummary of Feb 00 Meeting • Baseline and Mission Box Standards Assessment • Continue to refine/update standards thru Fall 00 BOD cycle • Minimize authorized funding migration from MWR programs • Complete crosswalk between assessment and POM 02-07 • Introduce incremental requirements in POM 03-08 • Address “eaches” UFRs in FY 01 and FY 02 budget processes • Army Lodging Wellness Plan and Guest House Policy • Wellness Plan Methodology • Approved execution of MACOM-approved CPMC projects • Adopted range of 300-600 SF as standard for room sizes • Included inadequate facilities in assessment, $.50 vice $6 LCA • Approved LCA increase to $9 in FY 02 and $12 in FY 03 • Army Lodging Fund Payment to IMWRFs for GH assets • FY 01-FY 03 payments made to MACOMS (except EUSA) at $12M/year • Repay EUSA $4.5M annually in FY 04-FY 06 • Payments exempt from CRA and NIBD/CPMC limitation

23. MWR Board of DirectorsSummary of Feb 00 Meeting (cont’d) • Other • NAF Post Retirement Medical Benefit Funding: Approved assessing costs as a percentage of total payroll. • FY 01 NAF Major Construction Program: Approved $37.5M NAFMC, $3.1M golf maintenance upgrade program, $2M in discretionary commitments (includes 17 PVAs for FY 02 projects). Total AMWRF program of $42.6M. • Smoking Policy: Approved “accommodating” smoking in FY 00 projects, and in future projects FY 01 and out. Existing facility retrofits are installation prerogative and will be locally funded CPMC. CFSC to conduct cost-benefit analysis of ARMP facilities. • Armed Forces Recreation Center - Europe/Shades of Green: Approved HCMF expenditure of $5M for design of both projects in FY 00. CFSC to obtain CSA, SA, and congressional approvals to proceed with plan, negotiate $135M mortgage loan, and report progress at next meeting.

24. MWR Board of DirectorsSummary of Oct 00 Meeting • FY 02 NAFMC Program • Deferred decision until Feb 01 meeting • Requested CFSC provide detailed alternatives besides curtailing NAFMC to improve the AMWRF cash position • Enterprise Management System (EMS) • Approved proceeding with acquisition of EMS • Project costs limited to $14.7M (+ 25%) • Uniform Resource Expanded Program (UREP) • Approved PAT recommendations for implementation plan development • Personnel transition • Accountability • DA funding distribution • Seek authority from OSD to include ACS in UREP • Changes to Commander’s Mission Box • APF Execution: All direct APF support for MWR/Family programs, effective FY 01 • Club Net Income Before Depreciation (NIBD): Raised to 8% effective FY 02; track in FY 01

25. MWR Board of DirectorsSummary of Feb 01 Meeting • Career Management and Staffing Program (CMSP) • Approved the concept and funding for FY 01 • Funding for future years will be addressed with the cash mitigation options at the Oct 01 BOD meeting • Cash Mitigation Strategy • Approved Option 4 • limits the FY 02 AMWRF-funded NAFMC program to $5M • approved the self-funded NAFMC program of $48.9M • increased the AFRC CRA from 2 to 3 percent effective FY 02 • CFSC to host a NAF construction strategy process action team • Agreed to change the previously-approved BOD guidance on CPMC from “MACOM CPMC NTE MACOM NIBD” to “Army-wide CPMC and self-funded NAFMC NTE Army-wide NIBD” • Oct 01 BOD to consider options for AMWRF repayment of the Field NAFI loan balance and changes to the Financial Management Plan parameters • AFRC-Europe/Shades of Green (AFRC-E/SOG) Construction • Approved the funding strategy as presented, including the acquisition of a commercial loan for $135M • CFSC will obtain Congressional approval of the two projects

26. MWR Board of DirectorsOct 01 • Financial Management Options – deferred decision until Feb 02 • Loan payback 4th Qtr FY 08 • NAFMC: FY 03-FY 04 -- $15M • FY 05-FY 06 -- $25M • Adopt recommended Army Operating Cash to Field current liabilities ratio parameter: 1.5:1 by FY 07 • Adopt recommended Army Operating Cash to Army current liabilities ratio parameter: 0.8:1 by FY 03. • NAFMC Strategy - approved • Six focus areas: recreational lodging, outdoor recreation, bowling, golf, community activity center, youth services • Contract between MACOM/installation and MWR BOD to codify expectations for operational performance • MACOM reps on ExCom brief post-PVA analysis of facilities (similar to existing gumballs) the first full year after operations commence • Repair and Maintenance will be funded to requirements for every facility built with AMWRF funding and made part of the contract between MACOM and MWR BOD in accordance with PVA • CIRB review list against new guidance and present updated list to ExCom for recommendation • FY 02 MIS Sustainment Budget - approved • Increase budget from $4.1M to $6.6M for hardware, CYMS, SNACS, WebTrac test, TLMS

27. MWR Board of DirectorsSummary of Feb 02 Meeting • Financial Management Options - Approved • Loan payback 4th Qtr FY 08 • NAFMC: FY 03-FY 04 -- $15M • FY 05-FY 06 -- $25M • Army Operating Cash to Field current liabilities ratio parameter: 1.5:1 by FY 07 • Army Operating Cash to Army current liabilities ratio parameter: 0.8:1 by FY 03 • FY 03/FY 04 NAFMC Program • Approved the FY 03 self-funded program for $26.9M (five projects) • Approved two CPMC SSE projects for $0.38M • Approved AMWRF-funded FY 03 program of $15.6M ($0.6M carryover from CPMC SSE) and additional $3M for golf maintenance facilities • Approved AMWRF-funded FY 04 program of $14.4M • Approved Army Lodging program for FY 03-05 for $53M • Review criteria used to prioritize projects • Leisure Travel Baseline Standards - Approved • Increase to Lodging Capital Assessment (LCA) • Approved increase of $1 per night per year from FY 03 until FY 08 • Continue to advocate allocation of authorized APF to lodging program and seek MILCON construction dollars • Continue to evaluate cost, impact, and feasibility of public private partnerships

28. MWR Board of DirectorsSummary of Oct 02 Meeting • MWR Board of Directors Membership - Deferred • Continue to meet as MWR BOD until senior leadership decides the relationship between MWR and IM BODs • Schedule MWR BOD the same day as IM BOD • Army Lodging Wellness Plan - Approved • Conduct Army-wide assessment and apply approved methodology • Apply Project Prioritization Factors: • Facility condition - 75% • Unmet primary occupant - 15% • OCONUS/Remote/Isolated - 10% • Use 80% as target occupancy rate for right-sizing • Apply defined scope of projects for central funding (ALF); Additional “features” funded by installation

29. MWR Board of DirectorsSummary of Oct 02 Meeting (Cont’d) • Apply defined criteria and process for project priority reconsideration requests • Reordered next five ALF projects: • FY 04: Hohenfels and Fort Lewis • FY 05: Fort Jackson • FY 06: Selfridge ANGB • Delete Menwith Hill Station assuming installation transfers to USAF • Consider next projects at Jan ’05 CIRB after PVAs are complete • Include Lodging Success Program for official travel needs as part of the PVA process where applicable • Continually evaluate funding enhancements/alternatives

30. MWR Board of Directors Summary of Feb 03Meeting • Changes to BOD/ExCom Membership • Disapproved adding new non-voting members to BOD • Approved SMA rep as voting member of ExCom • Disapproved adding new voting members to ExCom • Disapproved need for designated alternate or proxy for ExCom • Directed ExCom to review voting members of ExCom • Repayment of AAFES Telephone Overpayment • Disapproved AMWRF repayment of $2M telephone revenue • Directed CFSC to prepare memo for Chairman, BOD, signature recommending overpayment be decrement to AAFES retained earnings • Directed CFSC to renegotiate 1991 MOA • Elimination of Capital Reinvestment Assessment (CRA) & AMWRF Operational Self-Sufficiency Exemptions (SSE) • Approved elimination of Garrison 2% CRA effective FY 04 • Approved elimination of AMWRF SSE payment to Regions in FY 04 • Approved retaining AFRC 3% CRA • Approved continued AMWRF funding for ARWRF requirements

31. MWR Board of Directors Summary of Feb 03Meeting (Cont’d) • Elimination of Army Lodging Fund Operational SSE • Approved elimination effective FY 04 • Elimination of AMWRF Minor Construction SSE • Administrative instructions approved elimination effective FY 04 • Reallocation of AAFES Army Simplified Dividend from Garrison to Region Funds • Deferred action. Requested IMA issue instructions on funding Region HQs NAF requirements and report back to BOD • Ft Belvoir Marina Project • Directed PVA be conducted and project compete for FY 05 NAFMC program at Jan 04 Capital Investment Review Board (CIRB) • Changes to MWR Standards Assessment (Gumball) • Action deferred due to time constraints • Present at next BOD meeting

32. MWR Board of Directors Summary of Oct 03Meeting • Changes to ExCom Membership • Eliminated Cdr, MDW as voting member • Approved retention of small MACOM rep as voting member • Represents all small MACOMs/DRUs, including MDW • Appointed for 4-yr term, extensions w/approval of G-1 • MEDCOM serves as initial small MACOM/DRU rep • Serves as co-chair of Audit Committee • Approved retention of DAB and ACSIM as voting members • Approved retention of retiree rep as voting member • G-1 nominates rep, in coordination w/Army Retiree Council, for BOD approval • Appointed for 4-yr term, 1-yr extensions w/approval of G-1 • Dir, IMA added as non-voting advisor

33. MWR Board of Directors Summary of Oct 03Meeting (Cont’d) • Financial Management • Approved use of auxiliary “gumball” chart • Approved deletion of MIS fielding/utilization and Rec Delivery System measures from “gumball chart” • Requested AAFES to present future forecast at Feb 04 BOD • Expressed concern over continued practice and magnitude of APF shortfall. Tasked CFSC/IMA to present timeline to eliminate the shortfall • Review revised loan payment schedule and recommended level of AMWRF-funded NAFMC at Feb 04 BOD meeting • NAF Major Construction (NAFMC) • Approved withdrawal of $11M Baumholder Bowling Center project from FY 04 NAFMC program • Approved adding the $11M to the $25M FY 05 NAFMC program • Approved $10M Vicenza Family Activity Center for FY 05 NAFMC program

34. MWR Board of Directors Summary of Oct 03 Meeting (Cont’d) • Army Lodging • Approved Lodging CIRB consideration of investments on project/building basis vice total installation • Directed ACSIM present his decision on centralization of fund and operational management • Approved increasing LCA to $9 for FY 04; deferred decision to increase LCA in FY 05/06 • Hotel Thayer • Tasked CFSC legal and contracting officers to present options regarding this project at Feb 04 BOD meeting

35. MWR Board of Directors Summary of Feb 04Meeting • ExCom Retiree Representative • Approved the G-1 nomination of MG(Ret) Whelden as the Retiree Representative effective Feb 04 • AAFES Update • Tasked CFSC to provide total APF amount spent on AAFES, to include SDT, utilities, etc • Financial Management Overview • Tasked CFSC to present various financial plans based on realignment assumptions for ARMP/other programs at Oct 04 BOD • Approved changing Army policy to severely restrict the use of NAF for APF requirements. CFSC will prepare memo for VCSA signature by 1 Apr 04, and draft policy in coordination with ASA(M&RA) and ASA(FM&C) by 1 Jun 04 • ACSIM will direct IMA and CFSC to review all operating expenses to reduce APF and NAF costs. ACSIM to report to the Oct 04 BOD on ability to fund shortfall

36. MWR Board of DirectorsSummary of Feb 04Meeting (Cont’d) • FY 05 MWR and Army Lodging NAFMC Program • Approved four IMA self-funded projects at Camp Carroll (three) and Camp Zama, for a total of $15.3M • Approved substituting the Fort Eustis golf clubhouse project for the Fort Belvoir golf clubhouse project • Approved an AMWRF-funded FY 05 NAFMC of $24.6M for reporting to Congress, but agreed to apply no funds for design/construction award until the Oct 04 BOD reviews the AMWRF cash position and approves a funding level • Approved the recommended list for PVAs, with seven funded by the AMWRF at $40K each, and seven funded by IMA • Approved an FY 05 ALF program of $96.1M for reporting to Congress, but agreed to apply no funds for construction award until the Oct 04 BOD reviews and approves a funding level

37. MWR Board of DirectorsSummary of Feb 04Meeting (Cont’d) • Army Lodging • Requested the PAL office brief the Oct 04 BOD on their privatization plan, to include decisions to exclude Alaska and Hawaii and to privatize CONUS lodging by FY 11, and address the question of whether lodging privatization can be tied to RCI • Tasked CFSC to explain the history of the lodging funds, GAO study, etc, in answer to questions on moving funds from lodging to other programs • Approved the FY05 financial standards of occupancy rate, average daily rate, and NIBD per occupied room night • Career Management and Staffing Program • Deferred decision on CMSP until the details are staffed • Hotel Thayer • Supported ExCom strategy of AMWRF borrowing funds for the debt requirement in FY 08 rather than incurring any cash outlays • CFSC will make specific recommendations to Oct 07 BOD regarding strategy for loan and management ofthe hotel

38. MWR Board of DirectorsSummary of Oct 04 Meeting • FY05 NAF Major Construction Program: approved AMWRF funding of $17.0M • Fort Wainwright Ski Lodge $2.3M • Vicenza Community Activity Center $11.7M • Fort Sam Houston Cabins at Canyon Lake $3.0M • Army Lodging • Deferred decision on funding the FY 05 Army Lodging Fund program of $96.1M, agreeing to review at the Feb 05 BOD meeting • Approved closing or converting to other use those lodging operations with assessed demand of 25 rooms or less by the end of FY05, except Kitzingen and Babenhausen which will close at end of FY06

39. MWR Board of DirectorsSummary of Oct 04 Meeting (Cont’d) • MWR Leader Development Program: • Approved continued AMWRF funding of $.3M in FY05 and $.6M in FY06 • Reemphasized Feb 04 task to change policy to severely restrict the use of NAF for APF requirements

40. MWR Board of DirectorsSummary of Feb 05 Meeting • Agreed to provide EOH an outbrief of BOD concerns and serve as advocate for MWR and Family programs • BOD Chairman sent memo to EOH on 11 Feb 05 recommending: • Increase APF funding to meet authorized funding levels • Terminate Technical Guidance Memorandum (TGM) study of child care resourcing; fund child care programs in FY06 thru POM to sustain 65% of demand; and increase child care APF funding 3-4% annually in FY07-11 POM to meet DoD goal of 80% of demand • Establish policy to severely restrict the use of NAF for APF requirements. • FY06 NAF Major Construction Program: approved four self-funded projects for $19.3M • Camp Henry Multi-purpose field - $3.1M • K-16 Airfield Swimming Pool - $3.4M • Camp Carroll Community Center - $10.8M • Camp Zama Golf Clubhouse Renovation - $2.0M

41. MWR Board of DirectorsSummary of Feb 05 Meeting (Cont’d) • Army Lodging: • Approved execution of the $96.1M FY05 lodging NAFMC program: Fort Jackson, USA Garrison – Michigan, Fort Knox, Chievres, and Camp Humphreys • Approved reporting FY06/07 NAFMC projects for Congressional approval: Grafenwohr, Vicenza, Wiesbaden, Tripler, and Camp Zama. (Tripler also under consideration to be moved to first group of priorities under Privatization of Army Lodging) • Approved High Speed Internet Access (HSIA) as the long-term standard for all lodging rooms • Require HSIA to be included in all privatized facilities • HSIA completed in all CONUS DVQs NLT Aug 05 • Hospitality Cash Management Fund - CFSC to pursue: • Obtaining $7.4M in APF for FP expenses • Recouping other reimbursable APF costs • Raising prices • Approved G-8 to attend BOD meetings as non-voter

42. BOD Facts • First Meeting: 22 Apr 93 • Number of Meetings: 25 (two per year) • Top BOD Decisions since inception: • MWR Standards: Unanimously approved the implementation of commander financial standards with a “mission box” that defines success • Single Source Concept: Endorsed testing an initiative creating a single funding source (forerunner of UFM) • NAF Cash Sweep: Approved a maximum of 2:1 cash to debt ratio, sweeping cash in FY 95 based on 31 Oct 94 data, and instituted capital reinvestment assessment in FY 96 • MWR Management Information System: Endorsed mandating use of MWR MIS standards Army-wide, and approved funding MIS centrally at estimated cost of $40M • AFRC: Approved purchase of Shades of Green in Jun 95; approved funding strategy for SOG expansion and new construction of Edelweiss Lodge and Resort • Critical Financial Indicators: Developed an MWR financial plan, identifying 2 conditions when BOD will take action (cash to debt ratio and loan balance). Instituted MACOM CPMC and self-funded NAFMC/NIBD limitation rule. • Army Lodging: Directed MWR to assume operational and financial management of all lodging at every MACOM and installation. Approved Wellness Plan and creation of Army Lodging Fund, merging TDY billeting and guest house revenue, and ALF payment to IMWRFs for GH assets • A-76 Corporate Strategy: Approved the withdrawal of child and youth services, Army Community Service, fitness/sports, and Category C activities from A-76 studies • MWR/ACS Baseline and Mission Box Standards: Approvedstandards with continued refinement, supported minimizing authorized funding migration from MWR programs and completing crosswalk between assessment and POM • NAF Major Construction Program: Approved AMWRF funding of $401.3 since inception