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LegalText 10 U.S.C. § 2783 Nonappropriated fund instrumentalities: financial management and use of nonappropriated funds us united_states_code code_section 10 ARMED FORCES 165 ACCOUNTABILITY AND RESPONSIBILITY 2783 10 U.S.C. § 2783 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc10@119-100.zip /us/usc/t10/s2783 data/legal/raw/us/code/title-10/usc10.xml 0e88eeb69337c60bbe53b0583c1288e6b1cf2027e22672bf0e1f2551c9eb5ccf 06a2679d38355c44f4219c983fdad34009233205d6ba271593a4c1b17a739ec1 a950824f40a7449d679af13398934d251297dc5a0b5e1851a98eec6e54fd3607 2026-07-04 official
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10 U.S.C. § 2783 - Nonappropriated fund instrumentalities: financial management and use of nonappropriated funds

Text

(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. 102484, div. A, title III, § 362(a), Oct. 23, 1992, 106 Stat. 2379, § 2490a; renumbered § 2783 and amended Pub. L. 103160, div. A, title XI, § 1182(a)(8)(A), Nov. 30, 1993, 107 Stat. 1771.)

Notes

Editorial Notes

Amendments1993—Pub. L. 103160 renumbered section 2490a of this title as this section. Subsec. (b)(2). Pub. L. 103160, § 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. 103160, § 1182(a)(8)(A)(ii), substituted “armed forces” for “Armed Forces”.

Statutory Notes and Related Subsidiaries

Standardization of Certain Programs and Activities of Military ExchangesPub. L. 102484, 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.