U.S. Navy Overspent Nearly $400 Million in Ukraine Aid

The U.S. Navy overspent $398.9 million in Ukraine aid, a report from the U.S. Department of Defense Office of Inspector General (OIG) revealed.

According to the report, the Navy “over-executed its funding three times during FY 2022,” totaling nearly $400 million. “While the Navy had funds available to reverse the over-execution on those occasions, such funds may not be available in the future, which could lead to a potential Antideficiency Act violation.”

“The Navy did not have adequate internal controls to prevent the over-execution of funds from reoccurring,” the report asserted, explaining that the internal controls “focused on identifying the over-execution after it occurred, rather than preventing it from occurring.”

Over-execution was due to the Navy Standard Accounting, Budgeting, and Reporting System’s (NSABRS) “limitations and inability to prevent the over-execution of funds.”

The report noted that the Navy has acknowledged its lack of financial oversight since fiscal year 2018.

Beginning in fiscal year 2026, the Navy will shift to a new system called the Navy Enterprise Resource Planning (ERP). Until then, poor financial oversight is expected to continue.

“Without automated controls or effective manual controls, the Navy does not have the proper visibility of the execution of funds to prevent the over-execution of funds or a potential Antideficiency Act violation,” the report warned. As a result of the flawed system, the Navy provided defense officials and Congress with “inaccurate execution information for Ukraine supplemental funds.”

“Internal controls are essential as they serve as the backbone for ensuring accountability, integrity, and efficiency,” Inspector General Robert Storch said in a press release. “Without robust internal controls the DoD is vulnerable to inefficiencies that jeopardize its ability to achieve its mission and fulfill its financial responsibilities.”

U.S. Defense Secretary Lloyd Austin claimed there is “no credible evidence” that aid to Ukraine was misused.

“The United States continues to work hard to monitor and account for U. S. Security assistance delivered to Ukraine. And we’ve seen no credible evidence of the misuse or illicit diversion of American equipment provided to Ukraine. But what we do see is Ukraine using the capabilities that we provided to defend itself against Russian aggression,” he said during a meeting about Ukraine.

Ukrainian President Volodymyr Zelensky recently spoke with House Speaker Mike Johnson (R-LA) and asked for more aid.

“I spoke with @SpeakerJohnson and thanked him personally, both parties, the American people, and President Biden for their critical support of Ukraine since the start of Russia’s full-scale invasion,” Zelensky wrote on X following the meeting.

“I briefed Speaker Johnson on the battlefield situation, specifically the dramatic increase in Russia’s air terror. Last week alone, 190 missiles, 140 ‘Shahed’ drones, and 700 guided aerial bombs were launched at Ukrainian cities and communities. Ukraine’s largest hydroelectric power plant has gone offline.”

He emphasized that “quick passage of US aid to Ukraine by Congress is vital.”