Standards for Military Family Readiness programs

2020 Edition

Administration and Management (MIL-AM) 2: Managing MFR Program Funds

The MFR program has a system for managing its funds in accordance with applicable DoD and Service regulations and policies.

2020 Edition




Through sound administration and effective management, the MFR program achieves its vision, mission and strategic goals; assures appropriate use of resources for the good of customers; and remains responsive to the needs of the military community.
Full Implementation, Outstanding Performance
A rating of (1) indicates that the programs’ practices fully meet the standard and reflect a high level of capacity.  All elements or requirements outlined in the standard are evident in practice, with rare or no exceptions; exceptions do not impact service quality or overall performance.  
Substantial Implementation, Good Performance 
A rating of (2) indicates that a programs’ infrastructure and practices are basically sound but there is room for improvement. The majority of the standards requirements have been met and the basic framework required by the standard has been implemented.  Minor inconsistencies and practices that are not fully developed are noted; however, these do not significantly impact service quality or overall performance.
Partial Implementation, Concerning Performance
A rating of (3) indicates that significant aspects of the programs’ observed infrastructure and/or practices require significant improvement. The program has not implemented the basic framework of the standard but instead has in place only part(s) of this framework. Omissions or exceptions to the practices outlined in the standard occur regularly, or practices are implemented in a cursory or haphazard manner.  Service quality or program functioning may be compromised. Capacity is at a basic level.
Unsatisfactory Implementation and Performance
A rating of (4) indicates that implementation of the standard is minimal or there is no evidence of implementation at all. The programs’ observed administration and management infrastructure and practices are weak or non-existent; or show signs of neglect, stagnation, or deterioration.

Please see Rating Guidance for additional rating examples. 
Self-Study EvidenceOn-Site EvidenceOn-Site Activities
No Self-Study Evidence
  • MFR program level operating budget for the prior and current fiscal year including budget guidance from oversight entities (MIL-AM 2.01)
  • Fiscal summaries and/or analysis (MIL-AM 2.03)
  • Reports to fiscal authorities (MIL-AM 2.03)
  • Interview:
    1. MFR program director

MIL-AM 2.01

The MFR program develops an operating budget that:
  1. supports the MFR program's mission and goals;
  2. serves as a guide for managing the MFR program's discretionary funds; and
  3. includes a statement of balance and expenditures.

MIL-AM 2.02

The MFR program implements a financial record keeping system to track how funds are being used, and ensures the records are kept up-to-date and balanced monthly.

MIL-AM 2.03

The MFR program evaluates its financial status monthly and regularly reports to the fiscal authority on the MFR program’s finances consistent with DoD and Service regulations and policies.


In the absence of DoD or Service regulations and policy guidance on the frequency of reports to the fiscal authority, reports should be made quarterly.


Examples of relevant factors to consider during the evaluation of financial status include:
  1. financial capacities and resources;
  2. resources needed to operate the MFR program;
  3. anticipated problems; and
  4. financial planning.