(6) The term "subcontracting participation goal", with respect to a Department of Defense contract, means a goal for the extent of the participation by disadvantaged small business concerns in the subcontracts awarded under such contract, as established pursuant to section 23235 of title 10, United States Code, and section 8(d) of the Small Business Act (15 U.S.C. 637(d)).

(7) The term "qualified organization employing the severely disabled" means a business entity operated on a forprofit or nonprofit basis that

(A) uses rehabilitative engineering to provide employment opportunities for severely disabled individuals and integrates severely disabled individuals into its workforce;

(B) employs severely disabled individuals at a rate that averages not less than 20 percent of its total workforce;

(C) employs each severely disabled individual in its workforce generally on the basis of 40 hours per week; and

(D) pays not less than the minimum wage prescribed pursuant to section 6 of the Fair Labor Standards Act (29 U.S.C. 206) to those employees who are severely disabled individuals.

(8) The term "severely disabled individual" means an individual who has a physical or mental disability which constitutes a substantial handicap to employment and which, in accordance with criteria prescribed by the Committee for the Purchase From the Blind and Other Severely Handicapped established by the first section of the Act of June 25, 1938 (41 U.S.C. 46; popularly known as the "Wagner-O'Day Act"), is of such a nature that the individual is otherwise prevented from engaging in normal competitive employment.

(n) AVAILABILITY OF FUNDING.-Funds authorized and appropriated to carry out the program shall remain available until September 30, 1999.

TITLE XIV-GENERAL PROVISIONS

PART A-FINANCIAL AND BUDGET MATTERS

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SEC. 1405. CONTROLS ON AVAILABILITY OF APPROPRIATION ACCOUNTS

(a) PROCEDURES FOR CLOSING APPROPRIATION ACCOUNTS.[Revised in their entirety sections 1551 through 1557 of title 31, United States Code 6]

(b) TRANSITION.-[31 U.S.C. 1551 note]

5 Section 2323 of title 10, United States Code, was formerly section 1207 of Public Law 99661. Such section 1207 was codified into title 10 by section 801 of Public Law 102-484.

Sections 1551 through 1557 of title 31, United States Code, are set forth beginning on page

(1) APPLICATION OF AMENDMENTS.-The amendments made by subsection (a) shall apply to any appropriation account the obligated balance of which, on the date of the enactment of this Act, has not been transferred under section 1552(a)(1) of title 31, United States Code, as in effect on the day before the date of the enactment of this section [Nov. 5, 1990].

(2) RESTORATION OF CERTAIN UNOBLIGATED AMOUNTS.-The balance of any unobligated amount withdrawn under section 1552(a)(2) of title 31, United States Code, as in effect on the day before the date of the enactment of this Act [Nov. 5, 1990], from an account the obligated balance of which has not been transferred under section 1552(a)(1) of title 31, United States Code, as in effect on the day before the date of the enactment of this section [Nov. 5, 1990], is hereby restored to that account.

(3) CANCELLATION OF UNOBLIGATED BALANCES.-All balances of unobligated funds withdrawn from an account under subsection 1552(a)(2) of title 31, United States Code, as in effect on the day before the date of the enactment of this Act (other than funds restored under paragraph (2)) are canceled, effective at the end of the 30-day period beginning on the date of the enactment of this Act.

(4) CANCELLATION OF OBLIGATED BALANCES.-On the third September 30th after the date of the enactment of this Act [Nov. 5, 1990], all obligated balances transferred under subsection 1552(a)(1) of title 31, United States Code, as in effect on the day before the date of the enactment of this Act, shall be canceled.

(5) OBLIGATION OF EXISTING BALANCES.-After the date of the enactment of this Act [Nov. 5, 1990], an obligation of any part of a balance transferred before the date of the enactment of this Act under section 1552(a)(1) of title 31, United States Code, shall be subject to section 1553(c) of such title, as amended by subsection (a).

(6) CANCELLATION OF OLDEST OBLIGATED BALANCES.—(A) At the end of the 30-day period beginning on the date on which the President submits to Congress the budget for fiscal year 1992, any amount in an account established under paragraph (1) of section 1552 of title 31, United States Code, as in effect before the date of the enactment of this Act [Nov. 5, 1990], that has been in that account as of that date for a period in excess of five years shall be deobligated and shall be withdrawn in the manner provided in paragraph (2) of that section. Amounts so deobligated and withdrawn may not be restored.

(B) Subparagraph (A) shall not apply so as to require the deobligation of amounts

(i) for which there is documentary evidence that payment will be required within 180 days of the date of the enactment of this Act (Nov. 5, 1990]; or

(ii) that are determined to be necessary for severance payments for foreign national employees.

(7) OBLIGATIONS AND ADJUSTMENT OF OBLIGATIONS.—(A) After cancellation of unobligated balances under paragraph (3) or cancellation of obligated balances under paragraph (4) or

paragraph (6) and subject to the provisions of subparagraph (B), obligations and adjustments to obligations that would have been chargeable to those balances before such cancellations and that are not otherwise chargeable to current appropriations of the agency concerned may be charged to current appropriations of that agency available for the same purpose. Any charge made pursuant to this subsection shall be limited to the unobligated expired balances of the original appropriation available for the same purpose.

(B) Any charge made pursuant to subparagraph (A) shall be subject to the maximum amount chargeable under subsection (b) of section 1553 of title 31, United States Code, as amended by this section, and shall be included in the calculation of the total amount charged to any account under that section.

(8) OBLIGATIONS AND ADJUSTMENTS OF OBLIGATIONS FOR EXPIRED BUT NOT CLOSED ACCOUNTS. (A) Subject to subparagraphs (B), (C), and (D), in the case of an appropriation account for a fiscal year before fiscal year 1992 for which the period of availability for obligation has expired but which has not been closed under the provisions of section 1552(a) of title 31, United States Code, or paragraph (4) of this section, an obligation and an adjustment of an obligation may be charged to any current appropriation account of the Department of Defense that is available for the same purpose as the expired account if

(i) the obligation would have been properly chargeable (except as to amount) to the expired account before the end of the period of availability of that account; and

(ii) the obligation is not otherwise properly chargeable to any current appropriation account of the Department of Defense.

(B) The total amount charged to a current appropriation account under subparagraph (A) may not exceed an amount equal to the lesser of

(i) one percent of the total amount of the appropriations for that account; or

(ii) one percent of the total amount of the appropriations for the expired account.

(C) No obligation or adjustment of an obligation may be charged pursuant to the provisions of this paragraph until the Committees on Armed Services and the Committees on Appropriations of the Senate and House of Representatives are notified of the intent to make such a charge and a period of 30 days elapses after the notification is submitted.

(D) CERTIFICATIONS.-No obligation or adjustment of an obligation may be charged pursuant to the provisions of this paragraph until the Secretary of Defense (except as otherwise provided in subparagraph (E)) certifies to Congress the following:

(i) That the limitations on expending and obligating amounts established pursuant to section 1341 of title 31, United States Code, are being observed within the Department of Defense.

(ii) That reports on any violations of such section 1341, whether intentional or inadvertent, are being submitted to the President and Congress immediately and with all relevant facts and a statement of actions taken as required by section 1351 of title 31, United States Code.

(E) ALTERNATIVE TO CERTIFICATION.—If the Secretary of Defense is unable to make the certifications referred to in subparagraph (D) within 60 days after the date of the enactment of this subparagraph [Oct. 23, 1992], the Secretary shall submit to the Congress a report stating that the Secretary is unable to make such certifications and setting forth the actions that the Secretary will take in order to enable the Secretary to make such certifications after the end of that period. (c) CONFORMING REPEAL.-[Repealed section 2782 of title 10, United States Code.]

SEC. 1406. [31 U.S.C. 1552 note] AUDIT OF OBLIGATED BALANCES OF DEPARTMENT OF DEFENSE.7

(a) AUDIT REQUIREMENT.-The Secretary of Defense shall provide for an audit of each account of the Department of Defense established under paragraph (1) of section 1552(a) of title 31, United States Code, as in effect on the day before the date of the enactment of this Act [Nov. 5, 1990]. The audit shall, with respect to each such account, identify

(1) the balance in the account;

(2) the amount of such balance that is considered by the Secretary (as of the time of the audit) to represent amounts required for valid obligations (as supported by documentary evidence as required by section 1501 of title 31) and the amount of such balance that is considered by the Secretary (as of the time of the audit) to represent amounts for obligations that are considered no longer valid;

(3) the sources of amounts in the account, shown by fiscal year and by amount for each fiscal year; and

(4) such other matters as the Secretary considers appropriate.

(b) DEOBLIGATION OF OBLIGATIONS NO LONGER VALID.-Any obligated amounts in accounts of the Department of Defense established under paragraph (1) of section 1552(a) of title 31, United States Code, that are determined pursuant to the audit under subsection (a) to represent amounts for obligations that are no longer valid shall be deobligated and canceled.

(c) REPORT ON AUDIT.-Not later than December 31, 1991, the Secretary of Defense shall submit to Congress a report containing the results of the audit conducted pursuant to subsection (a). The report shall set forth

7 For a related provision, see section 1003 of Public Law 102-484, set forth beginning on page 372.

Public Law 101-510 was enacted on November 5, 1990. Paragraph (1) of section 1552(a) of title 31, United States Code, as in effect before that date, provided:

(a) Each appropriation account available for obligation for a definite period is closed as follows:

(1) The obligated balance is transferred on September 30th of the 2d fiscal year after the period of availability ends to an appropriation account of the agency responsible for paying the obligation. Amounts transferred from all appropriation accounts for the same general purpose are merged in the account for paying obligations.

(1) the information required to be identified pursuant to subsection (a); and

(2) for each appropriation account (A) the average length of time funds have been obligated, (B) the average size of the obligation, and (iii) the object classification of the obligations, all shown for total obligations and separately for valid obligations and obligations that are no longer valid.