§432. Use, disposition, and auditing of funds
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Latest Jul 12, 2026 NOW As last amended Dec 12, 2017 — Pub. L. 115–9110 U.S.C. § 432
Use of Funds.— 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.
Audits.—
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.
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, amendments, and revision history
(Added Pub. L. 102–88, title V, § 504(a)(2), Aug. 14, 1991, 105 Stat. 438; amended Pub. L. 113–66, div. A, title IX, § 921(a), Dec. 26, 2013, 127 Stat. 827; Pub. L. 115–91, div. A, title XVI, § 1623, Dec. 12, 2017, 131 Stat. 1732.)
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).”