« PreviousContinue »
(ii) fiscal, cost, operating, and capital property accounting,
(B) policies and procedures relating to the expenditure and collection of funds administered by the Department of Defense; and
(3) establish uniform terminologies, classifications and procedures in all such matters. July 26, 1947, c. 343, Title IV, $ 401, as added Aug. 10, 1949, c. 412, § 11, 63 Stat. 585. [Former Section 172a is now contained in 10 U.S.C. 3014, 5061, and 8014.]
Section 172b. Performance budgets-(a) Preparation of budget
estimates; form and pattern. The budget estimates of the Department of Defense shall be prepared, presented, and justified, where practicable, and authorized programs shall be administered, in such form and manner as the Secretary of Defense, subject to the authority and direction of the President, may determine, so as to account for, and report, the cost of performance of readily identifiable functional programs and activities, with segregation of operating and capital programs. So far as practicable, the budget estimates and authorized programs of the military departments shall be set forth in readily comparable form and shall follow a uniform pattern. (b) Conversion to new budget practices; transfers and adjust
ments between appropriations; reports to Congress. In order to expedite the conversion from present budget and accounting methods to the cost-of-performance method prescribed in sections 172-1723 of this title, the Secretary of each military department, with the approval of the President and the Secretary of Defense, is authorized and directed, until the end of the second year following August 10, 1949, to make such transfers and adjustments within the military department of which he is the head between appropriations available for obligation by such department in such manner as he deems necessary to cause the obligation and administration of funds and the reports of expenditures to reflect the cost of performance of such programs and activities. Reports of transfers and adjustments made pursuant to the authority of this subsection shall be made currently by the Secretary of Defense to the President and the Congress. ***, as added Aug. 10, 1949, c. 412, § 11, 63 Stat. 585.
Section 172c. Obligations of appropriations.
In order to prevent overdrafts and deficiencies in any fiscal year for which appropriations are made, on and after the beginning of the next fiscal year following August 10, 1949, appropriations
made to the Department of Defense or to the military departments, and reimbursements thereto, shall be available for obligation and expenditure only after the Secretary of Defense shall approve scheduled rates of obligation, or modifications thereof: Provided, That nothing in this section shall affect the right of the Department of Defense to incur such deficiencies as may be now or hereafter authorized by law to be incurred. * * *, as added Aug. 10, 1949, c. 412, § 11, 63 Stat. 585. Section 172d. Working-capital funds-(a) Authority to estab
lish; purpose. In order more effectively to control and account for the cost of programs and work performed in the Department of Defense, the Secretary of Defense is authorized to require the establishment of working-capital funds in the Department of Defense for the purpose of
(1) financing inventories of such stores, supplies, materials, and equipment as he may designate; and
(2) providing working capital for such industrial-type activities, and for such commercial-type activities as provide common services within or among the departments and agencies of the Department of Defense, as he may designate. (b) Establishment on books of Treasury Department.
The Secretary of the Treasury is authorized and directed to establish on the books of the Treasury Department at the request of the Secretary of Defense the working-capital funds established pursuant to the authority of this section. (c) Charges and reimbursements.
Such funds shall be (1) charged, when appropriate, with the cost of stores, supplies, materials, and equipment procured or otherwise acquired, manufactured, repaired, issued, and consumed and of services rendered or work performed, including applicable administrative expenses; and
(2) reimbursed from available appropriations or otherwise credited for the cost of stores, supplies, materials, or equipment furnished and of services rendered or work performed, including applicable administrative expenses.
Reports of the condition and operations of such funds shall be made annually to the President and to the Congress. (d) Capital for funds; appropriations.
The Secretary of Defense is authorized to provide capital for such working-capital funds by capitalizing inventories on hand and, with the approval of the President, by transfer, until December 31, 1954, from unexpended balances of any appropriations of the military departments not carried to the surplus fund of the Treasury: Provided, That no deficiency shall be incurred in any such appropriation as a result of any such transfer. To the extent that such methods do not, in the determination of the Secretary of Defense, provide adequate amounts of working capital, there is authorized to be appropriated, out of any moneys in the Treasury not appropriated for other purposes, such sums as may be necessary to provide adequate working capital. (e) Responsibility in military departments for economical and
efficient use of funds.
Subject to the authority and direction of the Secretary of Defense, the Secretaries of the military departments shall allocate responsibility within their respective military departments for the execution of functions which each military department is authorized by law to perform in such a manner as to effect the most economical and efficient organization and operation of the activities and use of the inventories for which working-capital funds are authorized by this section. (f) Limitation of cost of supplies and services.
No greater cost shall be incurred by the requisitioning agency for stores, supplies, materials, or equipment drawn from inventories, and for services rendered or work performed by the industrial-type or commercial-type activities for which workingcapital funds are authorized by this section, than the amount of appropriations or funds available for such purposes. (g) Regulations.
The Secretary of Defense is authorized to issue regulations to govern the operation of activities and use of inventories authorized by this section, which regulations may, whenever he determines the measures set forth in this subsection to be required by the needs of the Department of Defense, and when such measures are authorized by law, permit stores, supplies, materials, and equipment to be sold to, and services to be rendered or work performed for, purchasers or users outside the Department of Defense. In such cases, the working-capital funds involved may be reimbursed by charges against appropriate appropriations or by payments received in cash. (h) Appraised-value charges against funds; credits to appro
The appraised value of all stores, supplies, materials, and equipment returned to such working-capital funds from any department, activity, or agency, may be charged to the workingcapital fund concerned and the proceeds thereof shall be credited to the current appropriations concerned; the amounts so credited shall be available for expenditures for the same purposes as the appropriations credited: Provided, That the provisions of this subsection shall not permit credits to appropriations as the result of capitalization of inventories authorized by subsection (d) of this section. July 26, 1947, c. 343, Title IV, § 405, as added Aug. 10, 1949, c. 412, § 11, 63 Stat. 585.
Section 172d-1. Credit to appropriations of proceeds from sales
of supplies, etc.; incurrence of obligations against anticipated reimbursements to stock
funds. Current applicable appropriations of the Department of Defense may be credited with moneys arising from the disposition of such supplies, goods, and materiel as are not financed under stock funds pursuant to section 172d of this title: Provided, That obligations may be incurred against anticipated reimbursements to stock funds in such amounts and for such periods determined by the Secretary of Defense, with the approval of the Director of the Bureau of the Budget, to be necessary to maintain required stock levels not inconsistent with planned operations for the succeeding fiscal year, without regard to fiscal year limitations. Aug. 1, 1953, c. 305, Title VI, § 645, 67 Stat. 357. Section 172e. Management funds (a) Establishment; control
and direction; appropriations. For the purpose of facilitating the economical and efficient conduct of operations in the Department of Defense which are financed by two or more appropriations where the costs of the operations are not susceptible of immediate distribution as charges to such appropriations, there are established the Navy Management Fund, the Army Management Fund, and the Air Force Management Fund, each within, and under the direction of the respective Secretaries of, the Departments of the Navy, Army, or Air Force, as the case may be. There are authorized to be appropriated from time to time such funds as may be necessary to accomplish the purposes of the funds. (b) Corpus of funds; financing of individual operations.
The corpus of the Navy Management Fund shall consist of the sum of $1,000,000 heretofore transferred to the Naval Procurement Fund from the Naval Emergency Fund (17X0300), which amount, and all balances in, and obligations against, any accounts in the Naval Procurement Fund, are transferred to the Navy Management Fund; the corpus of the Army Management Fund shall consist of the sum of $1,000,000, which shall be transferred thereto from any unobligated balance of any appropriation available to the Department of the Army; the corpus of the Air Force Management Fund shall consist of the sum of $1,000,000, which shall be transferred thereto from any unobligated balance of any appropriation available to the Department of the Air Force; in each case together with such additional funds as may from time to time be appropriated to any of said funds. Accounts for the individual operations to be financed under the respective management funds shall be established only upon approval by the Secretary of Defense. (c) Expenditures; reimbursement of funds from appropria
tions chargeable; obligation of advances; final adjust
Expenditures may be made from said management funds from time to time for material (other than material for stock) and for personal and contractual services under such regulations as may be prescribed by the Secretary of Defense: Provided, (1) That no obligation shall be incurred against any such fund which is not properly chargeable to available funds under an appropriation of the department within which the fund is established or, whenever necessary to effectuate purposes authorized by sections 171-171n, 172-1723, 181-1, 181-2, 411a, 411b, and 626-626d of this title and sections 401-405 of Title 50 to funds of another department or agency within the Department of Defense, and (2) that each fund shall be promptly reimbursed from the appropriate appropriations of such department for all expenditures properly chargeable thereto. Nothing herein or in any other provision of law shall be construed to prevent advances by check or warrant, or reimbursements to any of said management funds from appropriations of said departments on the basis of the estimated cost of a project, such estimated cost to be revised and necessary appropriation adjustments made when adequate data become available. (d) Availability for obligation.
Except as otherwise provided by law, amounts advanced to the management funds under the provisions of sections 171-171n, 172–172j, 181-1, 181-2, 411a, 411b, and 626-626d of this title and sections 401-405 of Title 50 shall be available for obligation only during the fiscal year in which they are advanced: Provided, That nothing contained in said sections shall alter or limit the authorized period of availability of the funds from which such advances are made. Final adjustments of advances in accordance with actual costs shall be effected with the appropriate funds for the fiscal year in which such funds are advanced. *** as added Aug. 10, 1949, c. 412, § 11, 63 Stat. 585.
Section 172f. Adjustment of accounts; transfer of employees.
(a) When under authority of law a function or an activity is transferred or assigned from one department or agency within the Department of Defense to another such department or agency,