63 STAT.] 81ST CONG. , 1ST SESS.-CH. 412 -AUG. 10 , 1949 and authorized programs shall be administered, in such form and manner as the Secretary of Defense, subject to the authority and direc- tion of the President, may determine, so as to account for, and report, the cost of performance of readily identifiable functional programs and activities, with segregation of operating and capital programs. So far as practicable, the budget estimates and authorized programs of the military departments shall be set forth in readily comparable form and shall follow a uniform pattern. "(b) In order to expedite the conversion from present budget and accounting methods to the cost-of-performance method prescribed in this title, the Secretary of each military department, with the approval of the President and the Secretary of Defense, is authorized and directed, until the end of the second year following the date of enact- ment of this Act, to make such transfers and adjustments within the military department of which he is the head between appropriations available for obligation by such department in such manner as he deems necessary to cause the obligation and administration of funds and the reports of expenditures to reflect the cost of performance of such programs and activities. Reports of transfers and adjustments made pursuant to the authority of this subsection shall be made currently by the Secretary of Defense to the President and the Congress. " OBLIGATION OF APPROPRIATIONS "SEC. 404. In order to prevent overdrafts and deficiencies in any fiscal year for which appropriations are made, on and after the beginning of the next fiscal year following the date of enactment of this Act appro- priations made to the Department of Defense or to the military depart- ments, and reimbursements thereto, shall be available for obligation and expenditure only after the Secretary of Defense shall approve sched- uled rates of obligation, or modifications thereof: Provided, That nothing in this section shall affect the right of the Department of Defense to incur such deficiencies as may be now or hereafter author- ized by law to be incurred. "WORKING-CAPITAL FUNDS "SEC. 405. (a) In order more effectively to control and account for the cost of programs and work performed in the Department of Defense, the Secretary of Defense is authorized to require the estab- lishment of working-capital funds in the Department of Defense for the purpose of- "(1) financing inventories of such stores, supplies, materials, and equipment as he may designate; and "(2) providing working capital for such industrial-type activi- ties, and for such commercial-type activities as provide common services within or among the departments and agencies of the Department of Defense, as he may designate. "(b) The Secretary of the Treasury is authorized and directed to establish on the books of the Treasury Department at the request of the Secretary of Defense the working-capital funds established pur- suant to the authority of this section. "(c) Such funds shall be- "(1) charged, when appropriate, with the cost of stores, sup- plies, materials, and equipment procured or otherwise acquired, manufactured, repaired, issued, and consumed and of services rendered or work performed, including applicable administra- tive expenses; and 587 Transfers and ad- justments. Reports to Presi- dent and Congress. Deficiencies. Purpose.
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