10 USC § 2783 - Nonappropriated fund instrumentalities: financial management and use of nonappropriated funds

---
identifier: "/us/usc/t10/s2783"
source: "usc"
legal_status: "official_legal_evidence"
title: "10 USC § 2783 - Nonappropriated fund instrumentalities: financial management and use of nonappropriated funds"
title_number: 10
title_name: "ARMED FORCES"
section_number: "2783"
section_name: "Nonappropriated fund instrumentalities: financial management and use of nonappropriated funds"
chapter_number: 165
chapter_name: "ACCOUNTABILITY AND RESPONSIBILITY"
part_number: "IV"
part_name: "SERVICE, SUPPLY, AND PROPERTY"
positive_law: true
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(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.)"
---


# § 2783. Nonappropriated fund instrumentalities: financial management and use of nonappropriated funds

**(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).

---

**Source Credit**: (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— renumbered  as this section.

Subsec. (b)(2). , substituted “chapter 47 of this title” for “chapter 47 of title 10, United States Code”, “Justice) is” for “Justice), is”, and “” for “section 892 of such title”.

Subsec. (c)(1). , substituted “armed forces” for “Armed Forces”.

## Statutory Notes and Related Subsidiaries

### Standardization of Certain Programs and Activities of Military Exchanges

, , , 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 , and report to Congress, no later than , on other programs and activities that could be standardized or consolidated.