The objective of this joint audit was to determine whether the Department of Defense (DoD) and Department of State (State) appropriately administered and managed foreign military financing (FMF) provided in response to Russia’s war against Ukraine.
The FMF program is part of the security assistance authorized by the Arms Export Control Act that enables eligible partner nations to purchase U.S. defense articles (such as weapons and other equipment), services, and military training. The FMF program follows the Foreign Military Sales (FMS) process. FMF is a source of financing provided to a partner nation through the issuance of a grant (non‑repayable) or direct loan. FMF funds are transferred to a U.S.‑controlled account maintained on behalf of the foreign partner and executed by the U.S. Government.