A recent US government audit uncovered new discrepancies in its military aid package for Ukraine, revealing $2 billion in additional errors. The Government Accountability Office (GAO) launched the audit in response to the Department of Defense’s 2023 report of misvalued aid totaling $6.3 billion under the Presidential Drawdown Authority (PDA).
The GAO’s latest report identified $2 billion in errors, attributing part to the incorrect use of “replacement cost” instead of “net book value” in assessing item values. For instance, a 2012 cargo truck’s depreciation would differ from its 2024 replacement cost.
Furthermore, the GAO highlighted the US Army’s non-compliance with Financial Management Regulation (FMR) policies, as officials couldn’t identify specific articles early in the drawdown process. Around 12% of defense articles may require revaluation under PDA, with 61% lacking proper documentation.
The GAO recommended Congress redefine “value” for PDA articles and advised the DOD on addressing the misvaluation issue, urging them to adhere to FMR guidelines.