H. R. 1585—296 
available to the Department of Defense in this division for 
fiscal year 2008 between any such authorizations for that fiscal 
year (or any subdivisions thereof). Amounts of authorizations 
so transferred shall be merged with and be available for the 
same purposes as the authorization to which transferred. 
(2) LIMITATION.—Except as provided in paragraph (3), the 
total amount of authorizations that the Secretary may transfer 
under 
the 
authority 
of 
this 
section 
may 
not 
exceed 
$5,000,000,000. 
(3) EXCEPTION
FOR
TRANSFERS
BETWEEN
MILITARY
PER-
SONNEL AUTHORIZATIONS.—A transfer of funds between military 
personnel authorizations under title IV shall not be counted 
toward the dollar limitation in paragraph (2). 
(b) LIMITATIONS.—The authority provided by this section to 
transfer authorizations— 
(1) may only be used to provide authority for items that 
have a higher priority than the items from which authority 
is transferred; and 
(2) may not be used to provide authority for an item that 
has been denied authorization by Congress. 
(c) EFFECT
ON AUTHORIZATION AMOUNTS.—A transfer made 
from one account to another under the authority of this section 
shall be deemed to increase the amount authorized for the account 
to which the amount is transferred by an amount equal to the 
amount transferred. 
(d) NOTICE TO CONGRESS.—The Secretary shall promptly notify 
Congress of each transfer made under subsection (a). 
SEC. 1002. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED 
BUDGETS IN FISCAL YEAR 2008. 
(a) FISCAL YEAR 2008 LIMITATION.—The total amount contrib-
uted by the Secretary of Defense in fiscal year 2008 for the common- 
funded budgets of NATO may be any amount up to, but not in 
excess of, the amount specified in subsection (b) (rather than the 
maximum amount that would otherwise be applicable to those 
contributions under the fiscal year 1998 baseline limitation). 
(b) TOTAL AMOUNT.—The amount of the limitation applicable 
under subsection (a) is the sum of the following: 
(1) The amounts of unexpended balances, as of the end 
of fiscal year 2007, of funds appropriated for fiscal years before 
fiscal year 2008 for payments for those budgets. 
(2) The amount specified in subsection (c)(1). 
(3) The amount specified in subsection (c)(2). 
(4) The total amount of the contributions authorized to 
be made under section 2501. 
(c) AUTHORIZED AMOUNTS.—Amounts authorized to be appro-
priated by titles II and III of this Act are available for contributions 
for the common-funded budgets of NATO as follows: 
(1) Of the amount provided in section 201(1), $1,031,000 
for the Civil Budget. 
(2) Of the amount provided in section 301(1), $362,159,000 
for the Military Budget. 
(d) DEFINITIONS.—For purposes of this section: 
(1) 
COMMON-FUNDED
BUDGETS
OF
NATO.—The 
term 
‘‘common-funded budgets of NATO’’ means the Military Budget, 
the Security Investment Program, and the Civil Budget of
H. R. 1585—297 
the North Atlantic Treaty Organization (and any successor 
or additional account or program of NATO). 
(2) FISCAL
YEAR
1998
BASELINE
LIMITATION.—The term 
‘‘fiscal year 1998 baseline limitation’’ means the maximum 
annual amount of Department of Defense contributions for 
common-funded budgets of NATO that is set forth as the annual 
limitation in section 3(2)(C)(ii) of the resolution of the Senate 
giving the advice and consent of the Senate to the ratification 
of the Protocols to the North Atlantic Treaty of 1949 on the 
Accession of Poland, Hungary, and the Czech Republic (as 
defined in section 4(7) of that resolution), approved by the 
Senate on April 30, 1998. 
SEC. 1003. AUTHORIZATION OF ADDITIONAL EMERGENCY SUPPLE-
MENTAL APPROPRIATIONS FOR FISCAL YEAR 2007. 
Amounts authorized to be appropriated to the Department of 
Defense for fiscal year 2007 in the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109–364) are 
hereby adjusted, with respect to any such authorized amount, by 
the amount by which appropriations pursuant to such authorization 
are increased by a supplemental appropriation or by a transfer 
of funds, or decreased by a rescission, or any thereof, pursuant 
to the U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, 
and Iraq Accountability Appropriations Act, 2007 (Public Law 110– 
28). 
SEC. 1004. MODIFICATION OF FISCAL YEAR 2007 GENERAL TRANSFER 
AUTHORITY. 
Section 1001(a) of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109–364; 120 
Stat. 2371) is amended by adding at the end the following new 
paragraph: 
‘‘(3) EXCEPTION
FOR
CERTAIN
TRANSFERS.—The following 
transfers of funds shall be not be counted toward the limitation 
in paragraph (2) on the amount that may be transferred under 
this section: 
‘‘(A) The transfer of funds to the Iraq Security Forces 
Fund under reprogramming FY07–07–R PA. 
‘‘(B) The transfer of funds to the Joint Improvised 
Explosive Device Defeat Fund under reprogramming FY07– 
11 PA. 
‘‘(C) The transfer of funds back from the accounts 
referred to in subparagraphs (A) and (B) to restore the 
sources used in the reprogrammings referred to in such 
subparagraphs.’’. 
SEC. 1005. FINANCIAL MANAGEMENT TRANSFORMATION INITIATIVE 
FOR THE DEFENSE AGENCIES. 
(a) FINANCIAL MANAGEMENT TRANSFORMATION INITIATIVE.— 
(1) IN
GENERAL.—The Director of the Business Trans-
formation Agency of the Department of Defense shall carry 
out an initiative for financial management transformation in 
the Defense Agencies. The initiative shall be known as the 
‘‘Defense Agencies Initiative’’ (in this section referred to as 
the ‘‘Initiative’’). 
(2) SCOPE OF AUTHORITY.—In carrying out the Initiative, 
the Director of the Business Transformation Agency may
H. R. 1585—298 
require the heads of the Defense Agencies to carry out actions 
that are within the purpose and scope of the Initiative. 
(b) PURPOSES.—The purposes of Initiative shall be as follows: 
(1) To eliminate or replace financial management systems 
of the Defense Agencies that are duplicative, redundant, or 
fail to comply with the standards set forth in subsection (d). 
(2) To transform the budget, finance, and accounting oper-
ations of the Defense Agencies to enable the Defense Agencies 
to achieve accurate and reliable financial information needed 
to support financial accountability and effective and efficient 
management decisions. 
(c) REQUIRED ELEMENTS.—The Initiative shall include, to the 
maximum extent practicable— 
(1) the utilization of commercial, off-the-shelf technologies 
and web-based solutions; 
(2) a standardized technical environment and an open and 
accessible architecture; and 
(3) the implementation of common business processes, 
shared services, and common data structures. 
(d) STANDARDS.—In carrying out the Initiative, the Director 
of the Business Transformation Agency shall ensure that the Initia-
tive is consistent with— 
(1) the requirements of the Business Enterprise Architec-
ture and Transition Plan developed pursuant to section 2222 
of title 10, United States Code; 
(2) the Standard Financial Information Structure of the 
Department of Defense; 
(3) the Federal Financial Management Improvement Act 
of 1996 (and the amendments made by that Act); and 
(4) other applicable requirements of law and regulation. 
(e) SCOPE.—The Initiative shall be designed to provide, at a 
minimum, capabilities in the major process areas for both general 
fund and working capital fund operations of the Defense Agencies 
as follows: 
(1) Budget formulation. 
(2) Budget to report, including general ledger and trial 
balance. 
(3) Procure to pay, including commitments, obligations, 
and accounts payable. 
(4) Order to fulfill, including billing and accounts receiv-
able. 
(5) Cost accounting. 
(6) Acquire to retire (account management). 
(7) Time and attendance and employee entitlement. 
(8) Grants financial management. 
(f) CONSULTATION.—In carrying out subsections (d) and (e), 
the Director of the Business Transformation Agency shall consult 
with the Comptroller of the Department of Defense to ensure that 
any financial management systems developed for the Defense Agen-
cies, and any changes to the budget, finance, and accounting oper-
ations of the Defense Agencies, are consistent with the financial 
standards and requirements of the Department of Defense. 
(g) PROGRAM CONTROL.—In carrying out the Initiative, the 
Director of the Business Transformation Agency shall establish— 
(1) a board (to be known as the ‘‘Configuration Control 
Board’’) to manage scope and cost changes to the Initiative; 
and