§2209 Management funds

Summary

Creates three management funds—one for the Army, one for the Navy, and one for the Air Force—to pay for Defense operations that are charged to two or more different appropriations when the costs cannot be charged right away. Each fund starts with $1,000,000 and can get more money from Congress. Each fund is run by that service’s Secretary, and the Secretary of Defense must approve any account set up for an operation paid from a fund. Under rules set by the Secretary of Defense, the funds can pay for supplies (not stock), people’s pay, and contract services. The fund cannot be used unless the cost can be charged to available appropriations of that department or another Defense agency, and then the fund must be repaid quickly from those appropriations. Money can be advanced to a fund based on estimated costs and later adjusted as real costs are known. Final settlement is made in the fiscal year the advance was given, and advances can be obligated only in that same fiscal year unless another law says otherwise.