(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).
Structure US Code
Subtitle A— General Military Law
PART IV— SERVICE, SUPPLY, AND PROPERTY
CHAPTER 165— ACCOUNTABILITY AND RESPONSIBILITY
§ 2771. Final settlement of accounts: deceased members
§ 2772. Share of fines and forfeitures to benefit Armed Forces Retirement Home
§ 2773. Designation, powers, and accountability of deputy disbursing officials
§ 2773a. Departmental accountable officials
§ 2773b. Parking of funds: prohibition; penalties
§ 2774. Claims for overpayment of pay and allowances and of travel and transportation allowances
§ 2775. Liability of members assigned to military housing
§ 2776. Use of receipts of public money for current expenditures
§ 2777. Requisitions for advances and removal of charges outstanding in accounts of advances
§ 2779. Use of funds because of fluctuations in currency exchange rates of foreign countries
§ 2781. Availability of appropriations: exchange fees; losses in accounts
§ 2782. Damage to real property: disposition of amounts recovered
§ 2784a. Management of travel cards
§ 2785. Remittance addresses: regulation of alterations
§ 2788. Property accountability: regulations
§ 2789. Individual equipment: unauthorized disposition
§ 2790. Recovery of improperly disposed of Department of Defense property