
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC2783]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
             CHAPTER 165--ACCOUNTABILITY AND RESPONSIBILITY
 
Sec. 2783. Nonappropriated fund instrumentalities: financial 
        management and use of nonappropriated funds
        
    (a) Regulation of Management and Use of Nonappropriated Funds.--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) Penalties for Violations.--(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) Notification of Violations.--(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).

(Added Pub. L. 102-484, div. A, title III, Sec. 362(a), Oct. 23, 1992, 
106 Stat. 2379, Sec. 2490a; renumbered Sec. 2783 and amended Pub. L. 
103-160, div. A, title XI, Sec. 1182(a)(8)(A), Nov. 30, 1993, 107 Stat. 
1771.)


                               Amendments

    1993--Pub. L. 103-160 renumbered section 2490a of this title as this 
section.
    Subsec. (b)(2). Pub. L. 103-160, Sec. 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, Sec. 1182(a)(8)(A)(ii), substituted 
``armed forces'' for ``Armed Forces''.


Standardization of Certain Programs and Activities of Military Exchanges

    Section 361 of Pub. L. 102-484 provided that:
    ``(a) Standardization of Exchanges.--The Secretary of Defense shall 
standardize among the military departments the following programs and 
activities of the military exchanges of the military departments:
        ``(1) Accounting (including account titles and item 
    descriptions).
        ``(2) Financial reporting formats.
        ``(3) Automatic data processing and telecommunications data in 
    order to facilitate the transfer of information among military 
    exchanges.
    ``(b) Time and Manner.--The standardization of programs and 
activities required by subsection (a) shall be completed not later than 
March 31, 1994, and shall be carried out in the most efficient manner 
practicable.
    ``(c) Report.--Not later than March 31, 1993, the Secretary of 
Defense shall submit to the Congress a report on other programs and 
activities of the military exchanges, if any, that the Secretary 
determines can be economically and efficiently managed through 
standardization or consolidation under a single nonappropriated fund 
instrumentality.''
