§2783 — Title 10 Armed Forces | U.S. Code

Summary

Secretary of Defense must make rules on what nonappropriated funds may be used for and how to manage them to prevent waste or misuse. Civilian employees paid from those funds who seriously break rules face the same penalties as misuse of appropriated funds; the Secretary will set rules. If subject to chapter 47 (Uniform Code of Military Justice), the violation is punishable under section 892 (article 92). Handlers must report suspected violations or gross waste to the Secretary, who will name receivers, ensure prompt investigation, and protect reporters’ confidentiality.

Title 10, §2783

Armed Forces — Source: USLM XML via OLRC

(a)The Secretary of Defense shall prescribe regulations governing—

(1)the purposes for which nonappropriated funds of a nonappropriated fund instrumentality of the United States within the Department of Defense may be expended; and

(2)the financial management of such funds to prevent waste, loss, or unauthorized use.

(b)(1)A civilian employee of the Department of Defense who is paid from nonappropriated funds and who commits a substantial violation of the regulations prescribed under subsection (a) shall be subject to the same penalties as are provided by law for misuse of appropriations by a civilian employee of the Department of Defense paid from appropriated funds. The Secretary of Defense shall prescribe regulations to carry out this paragraph.

(2)The Secretary shall provide in regulations that a violation of the regulations prescribed under subsection (a) by a person subject to chapter 47 of this title (the Uniform Code of Military Justice) is punishable as a violation of section 892 of this title (article 92 of the Uniform Code of Military Justice).

(c)(1)A civilian employee of the Department of Defense (whether paid from nonappropriated funds or from appropriated funds), and a member of the armed forces, whose duties include the obligation of nonappropriated funds, shall notify the Secretary of Defense of information which the person reasonably believes evidences—

(A)a violation by another person of any law, rule, or regulation regarding the management of such funds; or

(B)other mismanagement or gross waste of such funds.

(2)The Secretary of Defense shall designate civilian employees of the Department of Defense or members of the armed forces to receive a notification described in paragraph (1) and ensure the prompt investigation of the validity of information provided in the notification.

(3)The Secretary shall prescribe regulations to protect the confidentiality of a person making a notification under paragraph (1).

Notes & Related Subsidiaries

Editorial Notes

Amendments

1993—Pub. L. 103–160 renumbered section 2490a of this title as this section. Subsec. (b)(2). Pub. L. 103–160, § 1182(a)(8)(A)(i), substituted “chapter 47 of this title” for “chapter 47 of title 10, United States Code”, “Justice) is” for “Justice), is”, and “section 892 of this title” for “section 892 of such title”. Subsec. (c)(1). Pub. L. 103–160, § 1182(a)(8)(A)(ii), substituted “armed forces” for “Armed Forces”.

Statutory Notes and Related Subsidiaries

Standardization of Certain Programs and Activities of Military Exchanges Pub. L. 102–484, div. A, title III, § 361, Oct. 23, 1992, 106 Stat. 2379, directed the Secretary of Defense to standardize among the military departments the accounting, financial reporting formats, and automatic data processing and telecommunications data transfer of information by no later than Mar. 31, 1994, and report to Congress, no later than Mar. 31, 1993, on other programs and activities that could be standardized or consolidated.

§2783 Nonappropriated Fund Instrumentalities: Financial Management and Use of Nonappropriated Funds