; and (ii) the monthly amount of the basic allowance for housing payable under section 403 of title 37 for a member with dependents in pay grade E–5 residing in the military housing area that encompasses all or the majority portion of the ZIP code area in which is located the primary residence of the individual, multiplied by 12. (B) In the second year of the pilot program, $20,000. (C) In the third year of the pilot program, $20,000. (2) The Secretary shall make payments under this section as follows: (A) In the first year of the pilot program, and as requested by an individual under the program— (i) for— (I) the first month, in a lump sum equal to 60 percent of the total amount under subsection (d)(1)(A); and (II) each subsequent month, in an amount equal to 40 percent of the total amount under such subsection divided by 11; or (ii) on a monthly basis. (B) In the second and third year of the pilot program, on a monthly basis. (e) Expenditure reporting and tracking system The Secretary, in collaboration with the Administrator, shall establish and operate a secure electronic reporting system through which— (1) an individual participating in the pilot program may report— (A) expenditures of a qualified business enterprise established or operated under the pilot program; and (B) such other information as the Secretary may require; and (2) the Secretary may track expenditures and other information reported under paragraph (1). (f) Review of expenditures; improper use of funds The Secretary shall— (1) at least once every two months, review the system established under subsection (e) to determine whether an individual participating in the pilot program is using financial assistance under the pilot program for allowable expenses described in subsection (c)