Section 506(a)(1) of the Foreign Assistance Act authorizes the President to  “drawdown” defense articles, services, and military education and training  from DOD and the military services’ inventories and provide such articles  and services to foreign countries or international organizations. DSCA Does Not Meet Congressional Reporting Requirements

Overall, DSCA’s reports to the Congress on the status of drawdowns are  inaccurate and incomplete. Its information system for tracking the status of  drawdowns is outmoded, and the military services do not regularly provide  DSCA updated information on the transfers they are implementing. Drawdowns Benefit the United States and Foreign Recipients

Drawdowns are an additional tool for the President to address U.S. foreign  policy and national security objectives. Drawdowns also allow the United States to provide additional or improved  military capability to foreign recipients. According to State officials, the transfer of defense articles under  drawdowns and excess defense articles help to expand markets for U.S.  defense firms. Military Services Are Not Being Reimbursed for Costs Associated with Drawdowns

According to DOD and military service officials, the services are not  reimbursed for the defense articles provided or the associated costs of  drawdowns, and the articles are usually not replaced. Consequently, the recipients’ ability to conduct military or police missions  in support of U.S. foreign policy diminishes as vehicles and weapons break  down and as parts for these older defense articles become more difficult to  obtain. Conclusions

Drawdowns give the President the ability to provide defense articles,  training, and services to foreign countries and international organizations  without first seeking specific appropriations from the Congress. Recommendation for Executive Action

To help ensure that the Congress has accurate and complete information  on the use of drawdowns, we recommend that the Secretary of Defense, in  consultation with the Director of DSCA and the Secretaries of the military  services, develop a system that will enable DSCA to report to the Congress  on the cost, type, quantity, and delivery status of defense articles and  services transferred to foreign recipients through drawdowns, as required. Over the  years, over 55 countries and other organizations such as the United Nations  have been authorized U.S. military assistance through drawdowns.
What GAO Found

Since 1961, the President has had special statutory authority to order the "drawdown" of defense articles--such as aircraft, vehicles, various weapons, and spare parts--and services or military education and training from Department of Defense (DOD) and military service inventories and transfer them to foreign countries or international organizations. Drawdowns give the President the ability to respond to U.S. foreign policy and national security objectives, such as counternarcotics efforts, peacekeeping needs, and unforeseen military and nonmilitary emergencies, by providing military assistance without first seeking additional legislative authority or appropriations from Congress. The Defense Security Cooperation Agency's reports to Congress on the costs and delivery status of drawdowns are inaccurate and incomplete. Two principal problems contribute to the agency's inability to meet the reporting requirements. First, its information system for recording drawdown data is outmoded and difficult to use--service drawdown reports are in different formats, and any conversion errors have to be manually corrected. Second, the services do not regularly provide updates to the agency on drawdown costs and deliveries, and available information sometimes does not get into the system. Drawdowns benefit the United States and foreign recipients primarily by providing the President the flexibility to address foreign policy and national security objectives quickly. Drawdowns also allow the President to provide defense articles and services to improve foreign recipients' capability to conduct military and police missions in support of U.S. foreign policy. Other benefits cited include improved military-to-military relations between the U.S. military services and the foreign recipients and expanded markets for U.S. defense firms. According to U.S. and foreign military officials, the use of drawdowns presents some concerns. Because drawdowns are used to quickly address U.S. national interests and emergencies, the costs associated with a drawdown, such as refurbishment and transportation, are not budgeted for by the services and are not reimbursed.