According to a report from Reuters, the Pentagon overestimated the value of military equipment it sent to Ukraine by $3 billion, meaning the US could ship even more weapons to the country.
Two unnamed Pentagon officials said the error was assigning a higher value to weapons the US has shipped to Ukraine from US military stockpiles. “We’ve discovered inconsistencies in how we value the equipment that we’ve given,” one official told Reuters.
The officials said that the value that was being assigned to the arms was based on what it would cost to replace them, not their current value after depreciation.
Congress was notified of the error on Thursday. Changing the value of the arms will give the Biden administration more funds to work with and means the White House could delay asking Congress to authorize more funding to spend on the war.
POLITICO reported Monday that funding to ship weapons to Ukraine could dry up by mid-Summer and that the administration was preparing to ask Congress for more. But changing the value could give them more time.
So far, the US has authorized about $113 billion to spend on the war in Ukraine, which includes military aid, direct budgetary aid, training, funding for US troop deployments in Eastern Europe, and other types of assistance.
Wish I had those kind of math problems…
Not to worry you’re safe – Russian oil and gas is still flowing through Ukraine.
When was the last time the Pentagon passed a government audit?
I am scratching my head on that one. How about never.
”Pentagon Error Overvalued Weapons Sent to Ukraine by $3 Billion….The error means the US will have more funds to ship arms to Ukraine”.
How suspiciously convenient.
I’m not falling for this one either – first of all the Pentagone has previously proven unable to account for a whopping 21 Trillion while Ukraines Zerlensky’s government has proven to be utterly corrupt.
Times of peace are far more profitable for taxpayers – not the war profiteers such as Vanguard and Blackrock and lets not forget the notorious Kagans.
Wonder how they cost in the bribes?
Imagine that without them their entire re-election campaign would fail.
“The officials said that the value that was being assigned to the arms
was based on what it would cost to replace them, not their current value
after depreciation.”
This is pure crapola; Any business that valued inventory in this manner would soon empty its shelves and not be able to restock without borrowing more money.
It’s an accounting trick is all it is and one you learn in your Freshman college classes.
First in, first out is not a normal practice.
It’s quite comical that they are pulling it.
First in first out is absolutely normal practice. It matches historical cost against revenue, giving the truest picture of net income and inventory valuation on the balance sheet. Last in first out can be elected, and when done it is for the purpose of artificially lowering taxable income. I’m a retired CPA.
I know; you use it to lower income or to be able to ship more arms.
They also actually decided they needed to depreciate the stuff too to further lower the value.
All those shenanigans to lower what it supposedly is costing us so we can ship more arms.
Give me a break….lol.
If the value of inventory has been impaired then it would be normal to write it down to fair market value.
Of course the government is engaging in shenanigans. That’s just what they do. But, in general, the use of first in first out is normal practice for an entity to account for the cost of inventory used. Your statement above implied that was not the case.
First in first out is involved with freshness or novelty. Replacement cost at current value is how one refills inventory.
Correct. I took Accounting 1A,2A, Cost Accounting, Econ 1A, 2A. Then decided I did not want to push numbers. Drifted to Sociology, History. Took 2 courses in statistics. Still pushed numbers in my career(s). Go figure.
Accountancy might not be the most lucrative career for most (I practiced in one of the poorest counties in the state), but there was always a demand for accountants. I never had to worry about not finding work. And I loved pushing numbers.
First in, first blown up.
Accounting 1A. Lifo vs Fifo.
Somebody has their fingers in the cookie jar.
I was thinking of nasty claws and peoples pockets but that works
With a wide lip to make it easier to grasp.
In my studies I took a lot of classes that delt with numbers; accounting, stats, modeling, etc. and this has the smell of government accounting upon it.
They just discovered they messed up the numbers……lol.
That’s government-speak for fiddling with the books.
First in and first out?
They are not doing replacement cost now?
Comical..
Reeeeaaaaaaaalllllly now. How interesting. How about this instead: instead of sending more weapons, we tell the Ukraine they’re free to get $3bn worth more use out of what we’ve already sent. That way, there’s no more weapons being sent (some of which are no doubt already in the hands of shady characters) and the Ukrainian forces get a lesson in conservation of supplies.
What an insult to the USA taxpayer!! PURGE THE DC GHOULS, Save the USA republic! Whoops, it is already too late. 🙁
How convenient.