Federal · Title 10 — Armed Forces

10 U.S.C. § 2783: Nonappropriated fund instrumentalities: financial management and use of nonappropriated funds

Civil

What this law says, in plain English

This statute establishes rules for managing nonappropriated funds within the Department of Defense, prescribes penalties for violations, and creates a notification and investigation process for reporting mismanagement.

Read the full statutory text

the purposes for which nonappropriated funds of a nonappropriated fund instrumentality of the United States within the Department of Defense may be expended; and the financial management of such funds to prevent waste, loss, or unauthorized use. 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. 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). a violation by another person of any law, rule, or regulation regarding the management of such funds; or other mismanagement or gross waste of such funds. 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. The Secretary shall prescribe regulations to protect the confidentiality of a person making a notification under paragraph (1).

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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.