REPORT ON BUDGETING FOR EXCHANGE RATES FOR FOREIGN CURRENCY FLUCTUATIONS.

SEC. 1006. REPORT ON BUDGETING FOR EXCHANGE RATES FOR FOREIGN CURRENCY FLUCTUATIONS.(a) Secretary of Defense Report.—(1) Not later than December 1, 2004, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the foreign currency exchange rate projection used in annual Department of Defense budget presentations.(2) In the report under paragraph (1), the Secretary shall—(A) identify alternative approaches for selecting foreign currency exchange rates that would produce more realistic estimates of amounts required to be appropriated or otherwise made available for the Department of Defense to accommodate foreign currency exchange rate fluctuations;(B) discuss the advantages and disadvantages of each approach identified pursuant to subparagraph (A); and118 STAT. 2037(C) identify the Secretary’s preferred approach among the alternatives identified pursuant to subparagraph (A) and provide the Secretary’s rationale for preferring that approach.(3) In identifying alternative approaches pursuant to paragraph (2)(A), the Secretary shall examine—(A) approaches used by other Federal departments and agencies; and(B) the feasibility of using private economic forecasting. (b) Comptroller General Review and Report.—The Comptroller General shall review the report under subsection (a), including the basis for the Secretary’s conclusions stated in the report, and shall submit, not later than January 15, 2005, to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report containing the results of that review.