10 U.S.C. § 2783
(a)
Regulation of Management and Use of Nonappropriated Funds.— The Secretary of Defense shall prescribe regulations governing—
(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).
Notes, amendments, and revision history
(Added Pub. L. 102–484, div. A, title III, § 362(a), Oct. 23, 1992, 106 Stat. 2379, § 2490a; renumbered § 2783 and amended Pub. L. 103–160, div. A, title XI, § 1182(a)(8)(A), Nov. 30, 1993, 107 Stat. 1771.)
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.