Pentagon accounting error: How they came up with the $6.2 billion figure

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By ADAM ANDRZEJEWSKI | REAL CLEAR WIRE

A previously-reported Pentagon accounting error has more than doubled, as new reports show what was thought to be a $3 billion error in aid to Ukraine now totals $6.2 billion, according to Reuters.

The error resulted from overvaluing some of the equipment the Department of Defense sent to Ukraine, valuing older equipment as if it were brand new. This column previously quoted a Pentagon spokesperson, who explained, “In some cases, ‘replacement cost’ rather than ‘net book value’ was used, therefore overestimating the value of the equipment drawn down from U.S. stocks.”

This time, a Pentagon spokesperson said the additional funding was uncovered as Pentagon officials researched the situation more thoroughly and clarified protocols for valuing equipment based on Financial Management Regulation and Department of Defense policy.

The error amounts to a $2.6 billion overvaluation in 2022 and a $3.6 billion overvaluation in 2023, meaning the DoD has another $6.2 billion in military aid that it can send to Ukraine.

This helps the Biden administration continue to send more money to Ukraine despite Congressional resistance to further funding.

The Pentagon is notorious for its poor financial controls. It has yet to receive a clean audit opinion, and the Government Accountability Office often cites Pentagon processes and controls as “high risk areas” for waste, fraud, and abuse. Just a few months ago, this column reported it lost track of $220 billion in equipment.

With a budget of $842 billion, and a total of $75 billion sent to support Ukraine, taxpayers can only brace themselves for additional errors that are coming.

The #WasteOfTheDay is brought to you by the forensic auditors at OpenTheBooks.com

This article was originally published by RealClearInvestigations and made available via RealClearWire.

9 COMMENTS

  1. It’s not an error, it’s fraud. They are manufacturing reasons to send billions in extra funds without a new Congressional authorization. This is unconstitutional, fraudulent, and arguably treasonous.

    • You’re right Jay. Recharacterizing the depreciation schedule has another name: cooking the books.

  2. Errors in Ukraine funding are not trivial, but do note the reports of 10x greater fraud in just one US Covid giveaway program, which some estimate to exceed $400 billion.
    Government at work, not at its best.

  3. Isn’t it awesome how we are funding world War lll because that’s the direction this dumpster fire is headed. Fools!!! And now back to Jackie with another look at the weather.

  4. “Just a few months ago, this column reported it lost track of $220 billion in equipment.”
    They didn’t lose track of it, it’s sitting exactly where they left it….Afghanistan.
    Remember the embarrassing surrender led by ol sleepy joe?
    The one where we decided to leave terrorists an insurmountable amount of money,ammo, weapons and vehicles. Good job 81 million, now we can pay for the war in Ukraine, cuz ya know……borders matter…..and sovereignty…..ahem, ahem.

  5. Don’t worry, big brother will send those new armed IRS agents after you for not reporting the $600 in transactions you received through online payment platforms.

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