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EAC MANAGEMENT DECISION:

Resolution of the OIG Audit Report on the Administration of 

Payments Received Under the Help America Vote Act by the 

State of Oregon, for the Period May 1, 2003, Through August 

1, 2008, Report No. E-HP-OR-07-08 

September 15, 2010 

Summary of Decision 

Actions necessary for the Oregon Secretary of State’s Election Division (SOS-ED) to 

resolve the audit finding and implement the recommendations are summarized below: 

(1) Ensure that the property listings of HAVA funded equipment owned by the state 

reflect accurate information as prescribed by the state fixed asset guidelines. 

(2) Instruct the counties to ensure that the property listings of HAVA funded 

equipment in their possession reflect accurate information as prescribed by 41 

CFR 105-71.132. 

(3) Make an assessment of all idle equipment acquired with HAVA funds at both the 

state and county level to determine appropriate disposition thereof. 

BACKGROUND

The EAC is an independent, bipartisan agency created by the Help America Vote Act 

(HAVA). EAC assists and guides state and local election officials in improving the 

administration of elections for Federal office. EAC distributes HAVA funds to States for 

the acquisition of voting systems, and supports the establishment of statewide voter 

registration lists, and other activities to improve the administration of elections for 

Federal office. EAC monitors State use of HAVA funds to ensure funds distributed are 

being used for authorized purposes. To help fulfill this responsibility, the EAC 

determines the necessary corrective actions to resolve issues identified during Single 

Audit Act and Department of Inspector General (OIG) audits of state administration of 

HAVA funds. The EAC OIG has established a regular audit program to review the use 

of HAVA funds by states. The OIG’s audit plan and audit reports can be found at 

www.eac.gov. 

The EAC Audit Follow-up Policy authorizes the EAC Executive Director to issue the 

management decision for OIG audits of Federal funds to state and local governments, to 

non-profit and for-profit organizations, and for single audits conducted by state auditors 

and independent public accountants (external audits). The Executive Director has 

delegated the evaluation of final audit reports provided by the OIG and single audit 

reports to the Director of the HAVA Grants Division of EAC. The Division provides a 

recommended course of action to the Executive Director for resolving questioned costs, 
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administrative deficiencies, and other issues identified during an audit. The EAC 

Executive Director issues the EAC Management Decision that addresses the findings of 

the audit and details corrective measures to be taken by the state. 

States may appeal the EAC management decisions. The EAC Commissioners serve as 

the appeal authority. A state has 30 days to appeal the EAC management decision. All 

appeals must be made in writing to the Chair of the Commission. The Commission will 

render a decision on the appeal no later than 60 days following receipt of the appeal or, in 

the case where additional information is needed and requested, 60 days from the date that 

the information is received from the state. The appeal decision is final and binding. 

AUDIT HISTORY 

The OIG issued an audit report on the SOS-ED’s administration of payments received 

under HAVA on June 22, 2009. The report presented one finding pertaining to the 

maintenance of comprehensive property inventories. 

In preparing the audit report, the auditors issued Notices of Findings and 

Recommendations (NFRs) to the SOS-ED. The SOS-ED summarized its responses to the 

NFRs and the associated recommendations as a response to the audit report. 

AUDIT RESOLUTION

During testing of the existence of HAVA purchased equipment to the inventory 

documentation provided by the Secretary of State staff, the auditors noted equipment 

discrepancies at two state locations and at five of the nine counties visited. 

In accordance with the Uniform Administrative Requirements for Grants and Cooperative 

Agreements With State And Local Governments 41 CFR §105-71.132(b), a State will use, 

manage, and dispose of equipment acquired under a grant by the State in accordance with 

State laws and procedures. The Oregon SOS’s Business Services Division Desk Manual 

contains several extensive procedures for recording and tracking Fixed Assets, including 

the staff positions responsible for various aspects of the process, to ensure that all assets 

meeting the criteria set forth are properly managed and controlled. The policy sets the 

minimum amount for capitalization at $5,000; however, items determined to be 

“walkable” are required to be inventoried if the cost exceeds $500. 

The counties must conform to federal rules, and the Uniform Administrative 

Requirements for Grants and Cooperative Agreements With State and Local 

Governments 41 CFR § 105-71.132, which states that property records must be 

maintained that include a description of the property, serial number or other identification 

number, the source of property, who holds the title, the acquisition date, and costs of the 

property, percentage of federal participation in the cost of the property, the locations, use 

and condition of the property, and any ultimate disposition date including the date of 

disposal and sale price of the property. 
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RECOMMENDATIONS: 

Auditors recommended that the Secretary of State’s Office: 

1) Ensures that the property listings of HAVA funded equipment owned by the state 

reflect accurate information as prescribed by the state fixed asset guidelines. 

2) Instructs the counties to ensure that the property listings of HAVA funded 

equipment in their possession reflect accurate information as prescribed by 41 

CFR §105-71.132. 

3) Makes an assessment of all idle equipment acquired with HAVA funds at both the 

state and county level to determine appropriate disposition thereof. 

SOS’S RESPONSE: 

The SOS’ Election Division Director stated that, in general, they agreed with the finding 

and recommendations and implemented the following actions: 

1) The Business Services Division had already taken steps to improve the 

information recorded. 

2) Copies of 41 CFR §105-71.132 were provided to all county election offices and 

the SOS’ HAVA Manager conducted a training session on the subject matter at 

the February 2009, Oregon Association of County Clerks meeting. 

3) The Business Services Division has completed the assessment and counties have 

been instructed on the proper disposition procedures for surplus equipment. 

EAC MANAGEMENT DECISION 

The EAC generally agrees with the finding and recommendations. In response to the 

audit, counties have been asked by the SOS-ED for serial and model numbers of printers 

that are part of the vote tally equipment. As updated information is received regarding 

the equipment from counties, it is recorded on the master inventory sheet to show the 

equipment has not been sent to surplus or destroyed. The state is going through all old 

paperwork to ensure that all items are listed on the master inventory lists. The lists will 

be sent to counties to verify and update the information. 

The EAC verified that copies of 41 CFR §105-71.132 were provided to the county clerks. 

The information has been reviewed at recent county clerks conferences. 

Based on the response from the SOS-ED, the EAC considers this matter resolved and 

closed.