LIMITATIONS ON THE USE OF DEFENSE BUSINESS OPERATIONS FUND.

SEC. 341. LIMITATIONS ON THE USE OF DEFENSE BUSINESS OPERATIONS FUND. (a) Extension of Limitation on Period of Management.—Section 316(a) of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (Public Law 102–190; 105 Stat. 1338; 10 U.S.C. 2208 note) is amended— (1) by striking out “April 15, 1993” and inserting in lieu thereof “April 15, 1994”; and (2) by inserting “(in this section referred to as the ‘Fund’)” before the period at the end of the first sentence. (b) Separate Accounting, Reporting, and Auditing of Funds and Activities.—Section 316 of such Act is amended by adding at the end the following new subsection: “(c) Separate Accounting, Reporting, and Auditing of Funds and Activities.—For purposes of accounting, financial reporting, and auditing, the Secretary of Defense shall maintain— 106 STAT. 2375 “(1) the separate identity of each fund and activity managed through the Fund that (before the establishment of the Fund) was managed as a separate fund or activity; and “(2) separate records for each function for which payment is made through the Fund and which (before the establishment of the Fund) was paid directly through appropriations, including the separate identity of the appropriation account used to pay for the performance of the function.”. (c) Implementation of DBOF.—Such section is further amended by adding after subsection (c), as added by subsection (b), the following new subsections: “(d) Implementation of the Fund.—The Secretary of Defense shall implement the Fund in three phases (referred to in this section as ‘milestones’) as follows: “(1) Milestone i.— Not later than thirty days after the date of the enactment of the National Defense Authorization Act for Fiscal Year 1993, the Secretary of Defense shall— “(A) substantially complete the development of the policies of the Department of Defense governing the operations of the Fund; “(B) identify the interim systems requirements of the Fund; and “(C) prepare an evaluation report on the adequacy of the skills and resources devoted to the Fund and its related systems. “(2) Milestone ii.— Not later than March 1, 1993, the Secretary of Defense shall— “(A) develop performance measures, and corresponding performance goals, for each business area of the Fund; and “(B) prepare a report that— “(i) specifies the status of interim systems efforts, including efforts to improve the accuracy of information in the Fund systems; “(ii) specifies whether the Department of Defense has selected a standard cost accounting system, and prepared an implementation plan (with milestone dates) for installing the system at the Fund’s activities; and “(iii) identifies specific tangible benefits resulting from the operation of the Fund, including, if applicable, the reduced costs of providing goods and services and the improvement of the efficiency of Fund operations. “(3) Milestone iii.—Not later than September 30, 1993, the Secretary of Defense shall conduct a field test of the standard cost accounting system selected by the Secretary for the Fund. “(e) Use of Certain Accounting Standards.—The Secretary of Defense shall take actions to achieve the milestones prescribed in subsection (d) and otherwise to implement the Fund consistent with— “(1) generally accepted accounting principles; “(2) accounting principles, standards, and requirements generally applicable to Federal agencies; “(3) internal accounting and administrative control standards prescribed by the Comptroller General of the United States; and 106 STAT. 2376 “(4) the provisions of chapter 9 of title 31, United States Code, and sections 3515, 3521 (e) through (h), 9105, and 9106 of such title, and related requirements prescribed by the Office of Management and Budget.”. (d) Monitoring and Evaluation by the Comptroller General; Reports.—Such section is further amended by adding after subsection (e), as added by subsection (c), the following new subsection: “(f) Monitoring and Evaluation by the Comptroller General; Reports.— “(1) Monitoring and evaluation.—The Comptroller General of the United States shall monitor and evaluate the progress of the Department of Defense in achieving the milestones prescribed in subsection (d) and in implementing the Fund, including the development of policies, performance measures, and actions to improve the Fund’s systems. “(2) Reports.— “(A) Report on the nonachievement of milestones.—If the Comptroller General determines, pursuant to the monitoring and evaluation conducted under paragraph (1), that the Department of Defense has not achieved any of the milestones prescribed in subsection (d), the Comptroller General shall submit to the Congress, as soon as practicable, a report containing the findings, conclusions, and recommendations of the Comptroller General with respect to the nonachievement of the milestone. “(B) Final report.—Not later than February 15, 1994, the Comptroller General shall submit to the Congress a report containing the findings and conclusions of the Comptroller General pursuant to the monitoring and evaluation conducted under paragraph (1) and any recommendations for legislation or administrative action that the Comptroller General considers to be appropriate.”.