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/
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mahatmakanejeeves
(59,613 posts)And good morning.
ETA:
Unfortunately, the attribution regarding the saying seems too good to be true.
{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)CrispyQ
(37,512 posts)I realize they aren't totally related issues but stories like this make me so mad.
BumRushDaShow
(137,091 posts)Trying to catch up. Amazing what one can find when they actually look for something.
Nasruddin
(779 posts)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)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)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)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)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)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.
70sEraVet
(3,903 posts)I looked at your DU profile, James48 -- glad you're on our side!
BumRushDaShow
(137,091 posts)![](https://kkingdavid.com/wp-content/uploads/2017/09/bank-error-in-your-favor.png)
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GB_RN
(2,857 posts)When accounting errors are found and go in your favor. In this case, $2 bln will be great news for Ukraine and buys a good bit of equipment!
republianmushroom
(16,301 posts)Putin will tell us that those funds were for the NRA to support the convicted felon. and fellow MAGA republicans.