Department of Defense Directive, 7410.4: Regulations Governing Industrial Fund Operations

A decision is requested regarding a procedure incorporated in Department of Defense Directive 7410.4, Regulations Governing Industrial Fund Operations which generally requires that proceeds from the from the sale of scrap be deposited to the industrial fund. In addition to the question of legality, the effect of the DOD procedure would be to increase an industrial fund corpus without going through the appropriation process, particularly in any case where a substantial amount of scrap is generated under a project and sold.