STUDY ON WORKING CAPITAL FUND CASH BALANCES.

SEC. 1402. STUDY ON WORKING CAPITAL FUND CASH BALANCES.(a) Study Required.—Not later than 30 days after the date of the enactment of this Act, the Secretary of Defense shall seek to enter into a contract with a federally funded research and development center with appropriate expertise in revolving fund financial management to carry out a study to determine a sufficient operational level of cash that each revolving fund of the Department of Defense should maintain in order to sustain a single rate or price throughout the fiscal year.(b) Contents of Study.—In carrying out a study pursuant to a contract entered into under subsection (a), the federally funded research and development center shall—(1) qualitatively analyze the operational requirements and inherent risks associated with maintaining a specific level of cash within each revolving fund of the Department;(2) for each such revolving fund, take into consideration any effects on appropriation accounts that have occurred due to changes made in the rates charged by the fund during a fiscal year;(3) take into consideration direct input from the Secretary of Defense and officials of each of the military departments with leadership responsibility for financial management;(4) examine the guidance provided and regulations prescribed by the Secretary of Defense and the Secretary of each of the military departments, as in effect on the date of the enactment of this Act, including such guidance with respect to programming and budgeting and the annual budget displays provided to Congress;(5) examine the effects on appropriations accounts that have occurred due to congressional adjustments relating to excess cash balances in revolving funds;(6) identify best business practices from the private sector relating to sufficient cash balance reserves;(7) examine any relevant applicable laws, including the relevant body of work performed by the Government Accountability Office; and(8) address—(A) instances where the fiscal policy of the Department of Defense directly follows the law, as in effect on the date of the enactment of this Act, and instances where such policy is more restrictive with respect to the fiscal management of revolving funds than such law requires;(B) instances where current Department fiscal policy restricts the capability of a revolving fund to achieve the most economical and efficient organization and operation of activities;(C) fiscal policy adjustments required to comply with recommendations provided in the study, including proposed adjustments to—(i) the Department of Defense Financial Management Regulation;(ii) published service regulations and instructions; and124 STAT. 4410(iii) major command fiscal guidance; and(D) such other matters as determined relevant by the center carrying out the study.(c) Availability of Information.—The Secretary of Defense and the Secretary of each of the military departments shall make available to a federally funded research and development center carrying out a study pursuant to a contract entered into under subsection (a) all necessary and relevant information to allow the center to conduct the study in a quantitative and analytical manner.(d) Report.—Any contract entered into under subsection (a) shall provide that not later than 9 months after the date on which the Secretary of Defense enters into the contract, the chief executive officer of the entity that carries out the study pursuant to the contract shall submit to the Committees on Armed Services of the Senate and House of Representatives and the Secretary of Defense a final report on the study. The report shall include each of the following:(1) A description of the revolving fund environment, as of the date of the conclusion of the study, and the anticipated future environment, together with the quantitative data used in conducting the assessment of such environments under the study.(2) Recommended fiscal policy adjustments to support the initiatives identified in the study, including adjustments to—(A) the Department of Defense Financial Management Regulation;(B) published service regulations and instructions; and(C) major command fiscal guidance.(3) Recommendations with respect to any changes to any applicable law that would be appropriate to support the initiatives identified in the study.(e) Submittal of Comments.—Not later than 90 days after the date of the submittal of the report under subsection (d), the Secretary of Defense and the Secretaries of each of the military departments shall submit to the Committees on Armed Services of the Senate and House of Representatives comments on the findings and recommendations contained in the report.