Audit of the DoD’s Revaluation of the Support Provided to Ukraine Through Presidential Drawdown Authority

Rec. A.1.a: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, in coordination with the Defense Security Cooperation Agency, reevaluate the policy for valuing General Equipment, including items with a net book value of zero, provided through Presidential Drawdown Authority and update the Defense Security Cooperation Agency's Security Assistance Management Manual accordingly.

Rec. A.1.b.1: The DoD OIG recommended that the Assistant Secretary of the Army (Financial Management and Comptroller) perform a review of Presidential Drawdown Authority Execute Orders 38?56 to ensure that the Execute Orders complied with DoD's Presidential Drawdown Authority policies for General Equipment.

Rec. A.1.b.3: The DoD OIG recommended that the Assistant Secretary of the Air Force (Financial Management and Comptroller) perform a review of Presidential Drawdown Authority Execute Orders 38?56 to ensure that the Execute Orders complied with DoD's Presidential Drawdown Authority policies for General Equipment.

Rec. A.1.c: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, in coordination with the Defense Security Cooperation Agency, determine whether General Equipment below the capitalization threshold provided through Presidential Drawdown Authority should be valued at other than net book value and if so, update the Defense Security Cooperation Agency's Security Assistance Management Manual accordingly and alert the Military Departments to this change.

Rec. A.2.b: The DoD OIG recommended that the Under Secretary of Defense for Policy and the Director, Defense Security Cooperation Agency update the Security Assistance Management Manual to include information on developing initial estimates for valuing defense articles on the Presidential Determination and Defense Security Cooperation Agency Presidential Drawdown Authority Execute Orders, and guidance on updating initial estimated costs to actual costs of the Presidential Drawdown Authority Execute Orders.

Rec. A.2.c.2: The DoD OIG recommended that the Under Secretary of Defense for Policy and the Director, Defense Security Cooperation Agency, in coordination with the Office of the Under Secretary of Defense for Acquisition and Sustainment, develop a centralized repository of serialized General Equipment provided under Presidential Drawdown Authority that tracks the assets by serial number and by specific Presidential Drawdown Authority under which the serialized General Equipment was provided.

Rec. B.1.a.1: The DoD OIG recommended that the Assistant Secretary of the Army (Financial Management and Comptroller) perform a review of Presidential Drawdown Authority Execute Orders 38?56 to ensure that the Execute Orders complied with DoD's Presidential Drawdown Authority policies for Operating Materials and Supplies.

Rec. B.1.a.3: The DoD OIG recommended that the Assistant Secretary of the Air Force (Financial Management and Comptroller) perform a review of Presidential Drawdown Authority Execute Orders 38?56 to ensure that the Execute Orders complied with DoD's Presidential Drawdown Authority policies for Operating Materials and Supplies.

Rec. B.1.b: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, require the Military Departments to develop and implement procedures to ensure there are adequate controls over valuing defense articles provided under Presidential Drawdown Authority.