§432 — Title 10 Armed Forces | U.S. Code

§432 Use, disposition, and auditing of funds

Title 10 › Subtitle Subtitle A— - General Military Law › Part PART I— - ORGANIZATION AND GENERAL MILITARY POWERS › Chapter CHAPTER 21— - DEPARTMENT OF DEFENSE INTELLIGENCE MATTERS › Subchapter SUBCHAPTER II— - INTELLIGENCE COMMERCIAL ACTIVITIES › § 432

Last updated Apr 6, 2026|Official source

Summary

Money made from an authorized commercial activity can be used to pay the necessary and reasonable costs of running that activity. Only the minimum needed for safe operations may be spent. Any extra money must be turned over to the U.S. Treasury as miscellaneous receipts as often as practical. The Secretary of Defense must pick a DoD unit to audit these activities. That unit must check the money and how it was used at least once a year and report the results to the congressional defense committees and the congressional intelligence committees by December 31 each year.

Title 10, §432

Armed Forces — Source: USLM XML via OLRC

(a)Funds generated by a commercial activity authorized pursuant to this subchapter may be used to offset necessary and reasonable expenses arising from that activity. Use of such funds for that purpose shall be kept to the minimum necessary to conduct the activity concerned in a secure manner. Any funds generated by the activity in excess of those required for that purpose shall be deposited, as often as may be practicable, into the Treasury as miscellaneous receipts.

(b)(1)The Secretary of Defense shall assign an organization within the Department of Defense to have auditing responsibility with respect to activities authorized under this subchapter.

(2)That organization shall audit the use and disposition of funds generated by any commercial activity authorized under this subchapter not less often than annually. The results of all such audits shall be reported to the congressional defense committees and the congressional intelligence committees (as defined in section 437(c) of this title) by not later than December 31 of each year.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2017—Subsec. (b)(2). Pub. L. 115–91 struck out “promptly” before “reported” and inserted before period at end “by not later than December 31 of each year”. 2013—Subsec. (b)(2). Pub. L. 113–66 substituted “the congressional defense committees and the congressional intelligence committees (as defined in section 437(c) of this title).” for “the intelligence committees (as defined in section 437(d) of this title).”