Press Release: Management Advisory: The Navy’s Execution of Funds to Assist Ukraine (DODIG- 2024-069)

Inspector General Robert P. Storch announced today that the Department of Defense Office of Inspector General released the "Management Advisory: The Navy's Execution of Funds to Assist Ukraine." During an ongoing audit regarding the DoD's execution of Ukraine supplemental funding, the DoD OIG identified internal control deficiencies that resulted in the Navy over-executing supplemental funds on three prior occasions. This management advisory discusses those Navy specific issues.

"Internal controls are essential as they serve as the backbone for ensuring accountability, integrity, and efficiency," said IG Storch. "Without robust internal controls the DoD is vulnerable to inefficiencies that jeopardize its ability to achieve its mission and fulfill its financial responsibilities."

The advisory found that the Navy over-executed its Ukraine funding three times during FY 2022 for a total over-execution of $398.9 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. Although the Navy has long-term plans to address this issue, the Navy should take prompt action to implement preventive controls to avoid over-execution in the future.

The DoD OIG made three recommendations to the Assistant Secretary of the Navy (Financial Management & Comptroller) to develop and implement effective internal controls to prevent the over-execution of supplemental funds, implement corrective actions to address the over-execution that occurred in fiscal year 2022, and update procedure documentation to address the specific controls put in place to monitor and prevent over-execution of supplemental funds. The DoD OIG will continue to monitor the Navy's progress toward full implementation of these recommendations.