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Report | June 11, 2024

Audit of the DoD’s Revaluation of the Support Provided to Ukraine Through Presidential Drawdown Authority (Report No. DODIG‑2024‑095)

Audit

The objective of this audit was to determine the extent and impact of the March 2023 estimation change for valuing assets provided under Presidential Drawdown Authority (PDA), determine whether DoD Components followed the current policy when updating the value of items provided to the Government of Ukraine through PDA, and assess whether the current PDA valuation policy complies with Federal laws and regulations.

From August 2021 through April 2024, the President issued 56 drawdown orders totaling $23.9 billion to provide defense articles to the GoU. Defense articles provided to the GoU during this timeframe included military vehicles, ammunition, missiles, clothing, body armor, medical supplies, and a variety of other equipment. Congress set a cumulative limit of $25.6 billion for the value of defense articles that could be provided to the GoU. To ensure compliance with these limits, the DoD is required to value the defense articles in accordance with Federal law and DoD policy.

From August 2021 to May 2023, the DoD provided defense articles to the GoU through 37 PDAs. On June 20, 2023, the DoD announced that during its review of defense articles provided to the GoU, it identified a net $6.2 billion valuation overstatement that required adjustments for the defense articles provided to the GoU. The DoD stated that this adjustment was due to incorrectly using replacement cost to value the items provided by PDA to the GoU. We focused our audit on this revaluation effort.