TERMINATION OF AUTHORITY TO MANAGE WORKING-CAPITAL FUNDS AND CERTAIN ACTIVITIES THROUGH THE DEFENSE BUSINESS OPERATIONS FUND.

SEC. 1008. TERMINATION OF AUTHORITY TO MANAGE WORKING-CAPITAL FUNDS AND CERTAIN ACTIVITIES THROUGH THE DEFENSE BUSINESS OPERATIONS FUND. (a) Revision of Certain DBOF Provisions and Reenactment To Apply to Working-Capital Funds Generally.— Section 2208of title 10, United States Code, is amended by adding at the end the following: “(m) Capital Asset Subaccounts.— Amounts charged for depreciation of capital assets shall be credited to a separate capital asset subaccount established within a working-capital fund. “(n) Separate Accounting, Reporting, and Auditing of Funds and Activities.— The Secretary of Defense, with respect to the working-capital funds of each Defense Agency, and the Secretary of each military department, with respect to the working-capital funds of the military department, shall provide for separate accounting, reporting, and auditing of funds and activities managed through the working-capital funds. “(o) Charges for Goods and Services Provided Through the Fund.— (1) Charges for goods and services provided for an activity through a working-capital fund shall include the following: “(A) Amounts necessary to recover the full costs of the goods and services provided for that activity. 112 STAT. 2116 “(B) Amounts for depreciation of capital assets, set in accordance with generally accepted accounting principles. (2) Charges for goods and services provided through a working capital fund may not include the following: “(A) Amounts necessary to recover the costs of a military construction project (as defined in section 2801(b) of this title), other than a minor construction project financed by the fund pursuant to section 2805(c)(1) of this title. “(B) Amounts necessary to cover costs incurred in connection with the closure or realignment of a military installation. “(C) Amounts necessary to recover the costs of functions designated by the Secretary of Defense as mission critical, such as ammunition handling safety, and amounts for ancillary tasks not directly related to the mission of the function or activity managed through the fund. “(p) Procedures For Accumulation of Funds.— The Secretary of Defense, with respect to each working-capital fund of a Defense Agency, and the Secretary of a military department, with respect to each working-capital fund of the military department, shall establish billing procedures to ensure that the balance in that working-capital fund does not exceed the amount necessary to provide for the working-capital requirements of that fund, as determined by the Secretary. “(q) Annual Reports and Budget.— The Secretary of Defense, with respect to each working-capital fund of a Defense Agency, and the Secretary of each military department, with respect to each working-capital fund of the military department, shall annually submit to Congress, at the same time that the President submits the budget under section 1105 of title 31, the following: “(1) A detailed report that contains a statement of all receipts and disbursements of the fund (including such a statement for each subaccount of the fund) for the fiscal year ending in the year preceding the year in which the budget is submitted. “(2) A detailed proposed budget for the operation of the fund for the fiscal year for which the budget is submitted. “(3) A comparison of the amounts actually expended for the operation of the fund for the fiscal year referred to in paragraph (1) with the amount proposed for the operation of the fund for that fiscal year in the President’s budget. “(4) A report on the capital asset subaccount of the fund that contains the following information: “(A) The opening balance of the subaccount as of the beginning of the fiscal year in which the report is submitted. “(B) The estimated amounts to be credited to the subaccount in the fiscal year in which the report is submitted. “(C) The estimated amounts of outlays to be paid out of the subaccount in the fiscal year in which the report is submitted. “(D) The estimated balance of the subaccount at the end of the fiscal year in which the report is submitted. “(E) A statement of how much of the estimated balance at the end of the fiscal year in which the report is submitted will be needed to pay outlays in the immediately following fiscal year that are in excess of the amount to be credited to the subaccount in the immediately following fiscal year.”. 112 STAT. 2117 (b) Repeal of Authority To Manage Through the Defense Business Operations Fund.— Section 2216a of title 10, United States Code, and the item relating to that section in the table of sections at the beginning of chapter 131 of such title, are repealed.