Which personnel are directly involved in the prevention and reporting of nonappropriated fund losses?

The correct answer is both military and civilian personnel because nonappropriated fund (NAF) operations involve a diverse workforce. In a NAF environment, both military and civilian staff members engage in managing financial resources, operating facilities, and implementing internal controls. Their collective responsibilities include identifying potential areas of financial risk, actively preventing losses, and reporting any discrepancies or losses that do occur.

Engaging both military and civilian personnel makes the prevention and reporting process more comprehensive. Military personnel bring a unique perspective and understanding of regulations and operational integrity, while civilian employees often have specialized training in financial matters and compliance. Together, they create an effective system for safeguarding NAF resources.

Furthermore, restricting the roles to only one type of personnel—whether military, civilian, or finance personnel exclusively—would limit the scope of awareness and proactive measures that could be taken to prevent losses, thereby undermining the overall effectiveness of NAF management.