Project Announcement: Joint Audit of the Foreign Military Financing (FMF) Program

The Department of State’s (Department) Ukraine-related activities are a top oversight priority for the Department of State Office of Inspector General (State OIG). State OIG will conduct an audit jointly with the Department of Defense Office Inspector General (DoD OIG) to oversee Department and DoD Foreign Military Financing (FMF) program activities for Ukraine. The objective of this audit is to determine whether DoD and the Department appropriately administered and managed foreign military financing provided in response to Russia’s war against Ukraine.

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The FMF program is part of the U.S. government’s foreign security assistance portfolio that enables eligible partner nations to purchase defense articles, defense services, and military training from the United States. FMF is a financing source provided to partner nations through grant or direct loan issuance. The Department, in coordination with DoD, is responsible for managing and supervising all aspects of U.S. security cooperation programs, including FMF. While DoD implements the FMF program, the Department ensures FMF assistance is consistent with U.S. foreign policy and national security objectives. 

The U.S. government has committed approximately $4.73 billion in FMF for Ukraine and partner nations impacted by the war in Ukraine. State OIG and DoD OIG will review FMF activity in Ukraine and partner nations from October 2021 to March 2024. State OIG and DoD OIG will review the extent to which the Department and the DoD adhered to established policies and procedures for FMF programs; the extent to which Department and DoD personnel monitored and evaluated FMF programs to ensure that they achieve intended results; and the extent to which the Department and DoD coordinated with intra- and interagency partners during FMF program budget planning and funds expenditure processes.

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State OIG has ongoing projects related to Ukraine and will be announcing additional projects in the coming months. Visit OIG’s Ukraine Response Oversight page to follow our work in this area and contact us at [email protected] for additional information.

U.S. Department of State OIG
 www.stateoig.gov