Report | July 8, 2022

Management Advisory: The DoD’s Use of Ukraine Supplemental Appropriations Act, 2022 Funds (DODIG-2022-112)

Audit

Publicly Released: July 12, 2022

This management advisory informs Congress and DoD leadership of the DoD’s use of Ukraine Supplemental Appropriations Act, 2022 funds and highlights areas of concern with the DoD’s tracking and reporting of the supplemental funds.

We determined that, as of June 2, 2022, the Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD (OUSD[C]/CFO), has implemented procedures for DoD Components to follow in reporting through Advancing Analytics (Advana) the execution of $6.5 billion in funds appropriated to the DoD to provide assistance to Ukraine.

OUSD(C)/CFO personnel implemented processes to help ensure DoD Components are reporting the transactions supporting the assistance the DoD is providing to Ukraine. However, the DoD’s use of systems that are not able to directly feed into Advana could limit the transparency of the execution of the Ukraine supplemental funds.

DoD leadership and Congress rely on accurate financial information reporting when ensuring transparency and accountability of the DoD’s use of the Ukraine Supplemental Appropriations Act, 2022, funds. We observed that the OUSD(C)/CFO made improvements to their reporting processes and controls for Emergency Supplemental Funding as a result of lessons learned and recommendations from Report No. DODIG-2022-054, “Management Advisory Regarding Results From Future Audits and Evaluations Related to the Effects of the 2019 Novel Coronavirus on DoD Operations,” issued in January 2022. However, as the DoD is building processes and procedures to ensure the transparency of the reporting for the Ukraine supplemental funds, we identified multiple areas of concern that, if not adequately addressed, could reduce the traceability of Ukraine supplemental funds and the transparency in the DoD’s reporting.