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BumRushDaShow

(137,091 posts) Fri Jul 26, 2024, 09:35 AM Jul 26

Pentagon finds accounting errors worth $2 billion in aid for Ukraine

Source: Kyiv Independent

July 26, 2024 2:06 AM

The U.S. Defense Department has identified another $2 billion worth of accounting errors in its estimations of military aid sent to Ukraine, a U.S. Government Accountability Office (GAO) report revealed on July 25.

The Pentagon announced on June 21, 2023 that it had overestimated the value of arms sent to Ukraine over the past two years by $6.2 billion. Now, the discovery of additional errors brings the total unspent sum to $8.2 billion.

The Pentagon has struggled to accurately estimate the cost of defense articles shipped to Ukraine, the GAO report said. U.S. Presidential Drawdown Authority (PDA) allows the president to allocate equipment from U.S. stocks, such as ammunition, vehicles, and medical supplies, to respond to crises abroad. PDA arises from the Foreign Assistance Act of 1961.

The Pentagon's "efforts to properly value defense articles for drawdown are hampered because the Foreign Assistance Act does not clearly define certain terms and DOD lacks PDA-specific valuation guidance," according to the GAO. Due to the errors, the Defense Department can send a further $2 billion in weapons to Ukraine to cover the amount already approved by U.S. President Joe Biden.

Read more: https://kyivindependent.com/pentagon-finds-accounting-errors-worth-2-billion-in-aid-for-ukraine/

15 replies

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Highlight:

Pentagon finds accounting errors worth $2 billion in aid for Ukraine (Original Post) BumRushDaShow Jul 26 OP

A billion here and a billion there, and pretty soon you're talking about real money. mahatmakanejeeves Jul 26 #1

Now that's a blast from the past! niyad Jul 26 #4

Billions in accounting errors, but no student loan forgiveness for our young people. CrispyQ Jul 26 #6

And good Friday afternoon to you! BumRushDaShow Jul 26 #11

Jack Paar Nasruddin Jul 26 #14

Fantastic, Keep them coming gab13by13 Jul 26 #2

Ukraine's lucky day! SupportSanity Jul 26 #3

I'm skeptical bucolic_frolic Jul 26 #5

When budget requests are put in, they are done as "estimates" BumRushDaShow Jul 26 #12

"ACCOUNTING ERROR" James48 Jul 26 #7

From your lips, to G-d's ear, as they say! 70sEraVet Jul 26 #8

Makes me think of this BumRushDaShow Jul 26 #13

Gotta Love It... GB_RN Jul 26 #9

That will surly PO Moscow Marge, Moscow Mitch and Leningrad Lindsey. republianmushroom Jul 26 #10

A very positive mistake Kaleva Jul 26 #15

mahatmakanejeeves

(59,613 posts)

1. A billion here and a billion there, and pretty soon you're talking about real money.

Reply to BumRushDaShow (Original post)

Fri Jul 26, 2024, 09:38 AM

Jul 26

And good morning.

ETA:

Unfortunately, the attribution regarding the saying seems too good to be true.

Everett Dirksen

{snip}

U.S. senator

{snip}

Oratory

The saying, "A billion here, a billion there, pretty soon, you're talking real money" has been attributed to Dirksen, but there is no direct record of Dirksen saying the remark. Dirksen is also quoted as having said, "The mind is no match with the heart in persuasion; constitutionality is no match with compassion."

{snip}

niyad

(117,641 posts)

4. Now that's a blast from the past!

Reply to mahatmakanejeeves (Reply #1)

Fri Jul 26, 2024, 09:50 AM

Jul 26

CrispyQ

(37,512 posts)

6. Billions in accounting errors, but no student loan forgiveness for our young people.

Reply to mahatmakanejeeves (Reply #1)

Fri Jul 26, 2024, 10:00 AM

Jul 26

I realize they aren't totally related issues but stories like this make me so mad.

BumRushDaShow

(137,091 posts)

11. And good Friday afternoon to you!

Reply to mahatmakanejeeves (Reply #1)

Fri Jul 26, 2024, 12:40 PM

Jul 26

Trying to catch up. Amazing what one can find when they actually look for something.

Nasruddin

(779 posts)

14. Jack Paar

Reply to mahatmakanejeeves (Reply #1)

Fri Jul 26, 2024, 01:43 PM

Jul 26

I thought there was a clip of him saying that on the Jack Paar show (an early version of the Tonight show).
I remember it as a taped clip that Paar was commenting on or joking about.
It would have to have been in the early '60's. I guess not many of these have survived.

gab13by13

(23,789 posts)

2. Fantastic, Keep them coming

Reply to BumRushDaShow (Original post)

Fri Jul 26, 2024, 09:38 AM

Jul 26

Europe just gave Ukraine over a billion from frozen Russian assets.

The tide is turning, gonna be a bright sun shiny day.

SupportSanity

(602 posts)

3. Ukraine's lucky day!

Reply to BumRushDaShow (Original post)

Fri Jul 26, 2024, 09:46 AM

Jul 26

This and Russian frozen billions starting to be unfrozen to Ukraine!!!!

In a first, EU transfers 1.5 billion to Ukraine using Russia's frozen assets
https://www.democraticunderground.com/10143279429

What great news!!!

bucolic_frolic

(45,600 posts)

5. I'm skeptical

Reply to BumRushDaShow (Original post)

Fri Jul 26, 2024, 09:54 AM

Jul 26

Tight Congressional purse strings meets foreign policy objectives. Do they value at cost? Or replacement value? Is there depreciation? Do they deduct storage/transport fees? $2 billion is a lot of money.

BumRushDaShow

(137,091 posts)

12. When budget requests are put in, they are done as "estimates"

Reply to bucolic_frolic (Reply #5)

Fri Jul 26, 2024, 12:44 PM

Jul 26

and they will include general line-item estimated costs. Of course "estimates" are usually not going to automatically result in the same as "actuals" (although sometimes things go the other way and are over-budget).

James48

(4,542 posts)

7. "ACCOUNTING ERROR"

Reply to BumRushDaShow (Original post)

Fri Jul 26, 2024, 10:14 AM

Jul 26

Here is what they are NOT telling you in that story.

the "accounting error" is simply the VALUE of the equipment/goods/ammunition given to Ukraine.

Under DoD policy, the value SHOUD be counted as the actual value of the item, calculated from what is cost new, and then depreciated over time. So a 105mm artillery shell, purchased in 1980, and stored since then, should be valued at the orignal cost ($4500), less depreciation. (a 30 year old shell is worth about half that on the books).

Instead , the military counted the PRICE TO REPLACE THE ITEM WITH A LIKE-NEW ITEM ORDERED in 2024 as the value of the item.
That is about $8500 in today's prices.

So it's a difference of $2250 actual value, vs. a $8500 value made in the inventory accounting.

We can send a LOT MORE to Ukraine for the dollars already allocated.