US Uncovers Additional $2 Billion for Ukraine Aid Due to Accounting Error

The Pentagon has identified errors in the assessment of military aid sent to Ukraine. The declared amount of $8.2 billion exceeded the actual by $2 billion.

The US Department of Defense faced challenges in accurately assessing defense items due to vague accounting definitions. Reuters reports this based on the US Government Accountability Office (GAO) report.

Similar issues occurred previously — in 2023, the Pentagon stated that employees used replacement cost rather than the value of weapons at the time of purchase, including depreciation. Then the error paved the way for sending billions more dollars in aid to Kyiv.

Since then, the Pentagon has identified an additional $2 billion in inflated costs. As a result, additional weaponry may be sent to Ukraine for this amount.

The report notes that unclear cost definitions in the Foreign Assistance Act and the lack of specific guidance from the presidential administration have led to discrepancies in reporting the costs of military aid.

One example from the report: 10 vehicles were valued at $7 million, while supporting documentation indicated they should have been valued at zero, based on their residual value.

The management recommended that Congress clarify cost definitions for defense items within presidential authority to reduce discrepancies in arms reporting.