"(2) reimbursed from available appropriations or otherwise credited for the cost of stores, supplies, materials, or equipment furnished and of services rendered or work performed, including applicable administrative expenses. Reports. Reports of the condition and operations of such funds shall be made annually to the President and to the Congress. Sources of capital. "(d) The Secretary of Defense is authorized to provide capital for such working-capital funds by capitalizing inventories on hand and, with the approval of the President, by transfer, until December 31, 1954, from unexpended balances of any appropriations of the military departments not carried to the surplus fund of the Treasury: Pro- vided, That no deficiency shall be incurred in any such appropriation Appropriation au- as a result of any such transfer. To the extent that such methods do not, in the determination of the Secretary of Defense, provide adequate amounts of working capital, there is hereby authorized to be appropriated, out of any moneys in the Treasury not appropriated for other purposes, such sums as may be necessary to provide adequate working capital. Allocationofrespon- "(e) Subject to the authority and direction of the Secretary of sibuity. Defense, the Secretaries of the military departments shall allocate responsibility within their respective military departments for the execution of functions which each military department is authorized by law to perform in such a manner as to effect the most economical and efficient organization and operation of the activities and use of the inventories for which working-capital funds are authorized by this section. Cost limitation. "(f) No greater cost shall be incurred by the requisitioning agency for stores, supplies, materials, or equipment drawn from inventories, and for services rendered or work performed by the industrial-type or commercial-type activities for which working-capital funds are authorized by this section, than the amount of appropriations or funds available for such purposes. Regulations. "(g) The Secretary of Defense is authorized to issue regulations to govern the operation of activities and use of inventories authorized by this section, which regulations may, whenever he determines the measures set forth in this subsection to be required by the needs of the Department of Defense, and when such measures are authorized by law, permit stores, supplies, materials, and equipment to be sold to, and services to be rendered or work performed for, purchasers or users outside the Department of Defense. In such cases, the working- capital funds involved may be reimbursed by charges against appro- priate appropriations or by payments received in cash. redit for returned "(h) The appraised value of all stores, supplies, materials, and e equipment returned to such working-capital funds from any depart- ment, activity, or agency, may be charged to the working-capital fund concerned and the proceeds thereof shall be credited to the current appropriations concerned; the amounts so credited shall be available for expenditures for the same purposes as the appropriations credited: Provided, That the provisions of this subsection shall not permit credits to appropriations as the result of capitalization of inventories Suprsa. authorized by subsection (d) of this section. "MANAGEMENT FUNDS 341U. s5.C.64, "SEC. 406. The Act of July 3,1942 (56 Stat. 645, c. 484), as amended, 34U. s. .. 528a and is hereby further amended to read as follows: note. "'(a) For the purpose of facilitating the economical and efficient conduct of operations in the Department of Defense which are financed by two or more appropriations where the costs of the operations are 588 PUBLIC LAWS-CH. 412 -AUG. 10, 1949 [63 STAT.
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