U.S. ELECTION 

ASSISTANCE

COMMISSION

 

 

 

 

 

AGENCY FINANCIAL

REPORT

 

 

 

 

 

 

 

 

November 17, 2014
Election Assistance Commission 

ABOUT THIS REPORT

For FY 2014 reporting purposes, the U.S. Election Assistance Commission (EAC) has 

again elected to submit an Agency Financial Report, with an Annual Performance 

Report and Citizens’ Report along with the Congressional Budget Justification. The 

reports are targeted to the Office of Management and Budget (OMB), the Public, and 

Congress, respectively. The AFR allows EAC to focus on and lay out its financial 

position at this time, while providing summary performance data. A Citizen’s Report 

and a combined Annual Performance Report/Congressional Budget Justification will 

follow on February 15, 2014 per guidance in OMB Circular A-136 Financial Reporting 

Requirements.

Information about EAC’s programs is available at www.eac.gov.
Election Assistance Commission 

 

 November 17, 2014

 

MESSAGE FROM THE CHIEF OPERATING OFFICER AND ACTING 

EXECUTIVE DIRECTOR

The U.S. Election Assistance Commission (EAC) is an independent bipartisan agency 

whose mission is to assist in the effective administration of Federal elections. Following 

is EAC’s Fiscal Year (FY) 2014 Agency Financial Report. The report describes EAC’s 

financial results during the past fiscal year, and efforts to strengthen internal controls and 

financial management activities. 

This is the seventh year that EAC has undergone a financial statement audit per the 

Accountability of Tax Dollars Act of 2002, and the sixth year EAC has chosen the option 

available in the Office of Management and Budget Circular A-136 Financial Reporting 

Requirements to submit a separate Agency Financial Report and Annual Performance 

Report instead of the Performance and Accountability Report. EAC presents summarized 

performance data in this report, and will provide detailed data in conjunction with the FY 

2016 Congressional Budget Justification. 

EAC has been without a quorum of commissioners since December 10, 2010 and has 

been without commissioners since December 2011. The agency has functioned by 

following the order of succession in the agency’s Roles and Responsibilities document 

adopted by the Commission in September 2008, and the organization chart in the 

Strategic Plan covering Fiscal Years 2009 through 2014, adopted in March of 2009. 

Under the current structure, when EAC is without an Executive Director or General 

Counsel, which is the case as of this writing, the Chief Operating Officer assumes the 

responsibilities of the Executive Director in an acting capacity until a quorum of 

commissioners is able to hire one pursuant to authorizing language in the Help America 

Vote Act of 2002 (HAVA).

The Roles and Responsibilities document authorizes agency staff to manage the voting 

system certification and decertification process, and disburse HAVA requirements 

payment grant funds. Without commissioners, EAC is unable to process voting system 

decertification appeals, issue a new grant Notice of Funds Availability, adopt policy, or 

hire an Executive Director or General Counsel. Pursuant to HAVA, the Executive 

Director hires the General Counsel.

Over the years, EAC’s Inspector General has conducted operational audits and 

investigations of the agency. The FY 2013 Acquisition and Procurement of Goods and 

Services Audit provided several helpful recommendations, and all recommendations were 
Election Assistance Commission 

considered to be implemented around the end of FY 2014. The vast majority of 

recommendations made in the internal audits have been implemented by EAC. Once a 

quorum of commissioners is present, EAC will work to close two remaining open 

recommendations: clearinghouse of information on Federal elections and 

communications policy, and addressing public comments regarding the National Mail 

Voter Registration Form.

FY 2014 was a very productive year for EAC’s programs. To assist in the effective 

administration of Federal elections, EAC furthered the programmatic goals in its

Strategic Plan: Goal 1 Communicate; Goal 2 Fund & Oversee; Goal 3 Study, Guide and 

Assist; and Goal 4 Test and Certify. EAC also continued to make improvements in Goal 

5 Operations. The agency’s organizational structure is aligned with the four program 

goals. Some of EAC’s significant accomplishments in response to these goals included: 

Communications

The Communications and Clearinghouse division began FY 2014 with focused efforts on 

providing information and best practices to election officials and voters. EAC 

maintained the goal of building a community of knowledge and expertise to save election 

officials time and money in preparation for the 2014 federal election cycle.

The division maintains resources on the EAC website, www.eac.gov, such as: the 

Election Official Exchange, an online resource built by EAC to help local election 

officials connect and leverage their collective knowledge by sharing best practices and 

experience; Events Finder, a comprehensive presentation of all EAC public events, 

including meetings, hearings and roundtable discussions; webcasts of public events; 

Twitter @EACgov, hashtag #EACvote, and blog posts to provide election officials and 

the public with timely updates on elections and program activities, and forums for 

discussions such as preparation for the next Federal election; and a listserv for EAC’s 

newsletter and automatic program updates. 

In FY 2014, EAC hosted three public roundtable discussions which followed up on topics 

raised during prior EAC roundtables. In March, EAC hosted a roundtable consisting of 

two former Presidential Commission on Election Administration (PCEA) commissioners, 

and state and local election officials to discuss recommendations by the PCEA related to 

polling place location and design, managing queues, recruiting and training poll workers,

and the use of precinct management technologies to improve and streamline the voting 

experience.

A second roundtable was held in June to discuss reforms to the voting system testing and 

certification process to better meet the needs of state and local jurisdictions. Panelists 

included state and local election officials, technical experts and former members of 

PCEA. In September, EAC hosted a third roundtable for state and local election officials, 

grant managers and research experts to discuss EAC grant programs' past successes and 

future directions.
Election Assistance Commission 

EAC also publicized and promoted participation in six regional Election Center 

Accessible Voting Workshop seminars to help election jurisdictions of all sizes prepare 

for an anticipated rise in the number of voters with disabilities; four EAC/National 

Institute of Standards and Technology (NIST) Accessible Voting Technology Initiative 

webinars; and an Information Technology and Innovation Foundation (ITIF) panel 

discussion and demonstration of accessible voting technologies developed through an 

ITIF grant funded by EAC. 

Fund & Oversee

The Fund and Oversee Strategic Plan Goal 2 is administered by the Office of Grants 

Management and the Office of the Inspector General (OIG). During FY 2014, some of 

the Grants Management accomplishments included disbursement of over $3.6 million to 

nine states certifying compliance with the provisions of HAVA; providing technical 

assistance to and monitoring grant recipients to help ensure that HAVA funds are spent in 

compliance with federal laws, regulations, and the provisions of HAVA and grant 

agreements -- Section 251 requirements payments, Voting System Pre-Election Logic 

and Accuracy Testing & Post-Election Audit Initiative grants, and Accessible Voting 

Technology Initiative grants. 

The Grants Management Office, along with the Research, Policy and Programs Division,

reviewed final grant financial and narrative reports, and closed out the FY 2010 threeyear award College Poll Worker and Mock Election Programs grants. Further, staff 

closed seven of eight open OIG audits of State use of HAVA funds in FY 2014.

Study, Guide and Assist

Strategic Plan Goal 3, Study, Guide and Assist, is administered by the Research, Policy 

and Programs (RPP) Division. RPP administers the biennial Election Administration and 

Voting Survey (EAVS), an instrument used to collect data from the States on areas such 

as the ability of civilian, military and overseas citizens to successfully cast a ballot, and 

the number of registered voters at the state and county levels. Pursuant to an agreement

reached between EAC and the U.S. Department of Defense Federal Voting Assistance 

Program (FVAP), the next survey will incorporate twelve FVAP questions. 

EAC processed changes to the National Mail Voter Registration Form for several states, 

and posted them along with translations on EAC's website. The “motor voter” form can 

be used by the States to register U.S. citizens to vote, and to update registration 

information to change a voter’s address or name. Each State and territory has its own 

instructions on how to complete the form with voter registration rules and regulations. 

The form is available on the EAC website in seven languages.

During FY 2014, RPP issued four educational products: new downloadable Quick Tips 

(formerly referred to as Quick Start Guides) on: Managing the Voting Process; 

Educating Voters; Poll Worker Recruitment and Training, and Why Good Data Matters. 

The publications offer concise tips for election officials with links to best practices in the 
Election Assistance Commission 

administration of Federal elections. Information contained in the Quick Tips is based on 

conference calls conducted with a select group of local election officials, and on research 

about election jurisdictions around the country. RPP also produced fliers on “10 Tips to 

Enhance Your Voting Experience”, and “14 Facts About Voting in Federal Elections” to 

help voters become more familiar with the voting process before the 2014 election. RPP 

staff also drafted Quick Tips on: Serving UOCAVA Voters, Conducting Audits, Monitors 

at the Polls, Administering Provisional Ballots, Alternative Voting Methods, Disaster and 

Contingency Planning, and Managing Change in Elections. 

Test and Certify

The Test and Certify Strategic Plan Goal 4 is administered by the voting system Testing 

and Certification Division. During FY 2014, staff certified six voting systems, registered 

a new voting system manufacturer, and is working on system testing with the 

manufacturers of five additional systems. 

The division drafted and published four Requests for Interpretation to the Voluntary 

Voting System Guidelines, and three Notices of Clarification to the Testing & 

Certification Program Manuals. Further, staff continued development of and 

implemented major updates to EAC’s Virtual Review Tool, used for reviewing voting 

system test plans, cases and reports submitted by the voting system test laboratories. 

During FY 2014, Testing and Certification staff audited two voting system manufacturing 

facilities; and performed two Manufacturing Quality Assurance audits, two laboratory reaccreditation audits, and a follow-up to an initial new laboratory accreditation audit.

Administrative accomplishments during FY 2014 included among other activities the

agency’s fourth consecutive Federal Information Security Act (FISMA) audit opinion 

that EAC is in substantial compliance with the Act. More detail on FY 2014 

accomplishments can be found in Section I.B. of the following document. 

The financial and performance data in this report is reliable and complete with the 

exception of a $2.2 million improper payment described in the auditor’s report related to 

a material weakness in internal controls over financial management reporting. The 

Commission provides a qualified statement of assurance that the agency’s internal control 

and financial management systems meet the objectives of the Federal Managers’ 

Financial Integrity Act. As discussed later in this document, EAC will work in FY 2015 

to resolve remaining issues. 

Alice P. Miller

Chief Operating Officer and Acting 

Executive Director
Election Assistance Commission 

TABLE OF CONTENTS

 Page

SECTION I - Management Discussion and Analysis................1

I.A. Background, Vision, Mission and Organization Structure........................................ 1

 Organization by Program........................................................................................... 3

 Organization Chart..................................................................................................... 5

I.B. Performance Goals, Objectives, and Results............................................................. 6

 How EAC Assesses Performance .............................................................................. 6

 Accomplishments by Goal......................................................................................... 6

 Summary Performance Information ........................................................................ 14

 Program Performance Indicators ............................................................................. 14

 Portfolio Analysis .................................................................................................... 14

 

I.C. Financial Results...................................................................................................... 15

 Budgetary Resources ............................................................................................... 15

 Financial Position..................................................................................................... 15

 Results of Operations............................................................................................... 16

 Limitations of the Financial Statements .................................................................. 16

I.D. Analysis of Controls, Management Systems, and Legal Compliance..................... 17

 Federal Manager’s Financial Integrity Act.............................................................. 17

 Audit Follow-Up...................................................................................................... 18

 Federal Financial Management Improvement Act .................................................. 18

 Accountability of Tax Dollars Act of 2002 ............................................................. 18

 Federal Information Security Management Act ...................................................... 19

 Inspector General Act Amendments of 1988........................................................... 19

 Annual Assurance Statement on Internal Control .................................................... 20

 

SECTION II – Financial Section ................................................21

II.A. Message from the Chief Financial Officer.............................................................. 21

II.B. Inspector General’s Assessment.............................................................................. 23

II.C. Independent Auditor’s Report ................................................................................. 26

II.D. Financial Statements................................................................................................ 35

II.E. Notes to the Financial Statements............................................................................ 40

II.F. Required Supplementary Stewardship Information................................................. 57

SECTION III - Other Accompanying Information ....................... 59

III.A. IG Assessment of Most Serious Management Challenges Facing EAC ............... 59

III.B. EAC Response to the Most Serious Management Challenges............................... 63

III.C. Improper Payments ................................................................................................ 64

III.D. Summary of Financial Statement Audit and Management Assurances................. 64
Election Assistance Commission 

SECTION I

Management Discussion and Analysis 

Management Discussion and Analysis (MD&A) is presented in accordance with Statement of 

Federal Financial Accounting Standards (SFFAS) 15. The MD&A is intended to provide a clear 

and concise description of the agency’s mission and organizational structure; high-level discussion 

of key performance goals, results and measures; analysis of financial statements; systems, controls, 

and legal compliance (i.e., Management Assurance signed by the Agency Head); compliance with 

laws and regulations; and actions taken or planned to address problems. It provides a balanced 

analytical assessment, with both positive and negative information, of key program and financial 

performance. The MD&A is a vehicle for communicating insights about the agency, its 

operations, programs, successes, challenges and future outlook. Contents of this report and the 

MD&A are in conformance with Office of Management and Budget (OMB) Circular A-136

Financial Reporting Requirements. 

I.A. BACKGROUND, VISION, MISSION AND ORGANIZATIONAL STRUCTURE 

In October 2002, Congress passed the Help America Vote Act (HAVA) of 2002. The law 

recognized the need for States to invest in their election infrastructure and set out comprehensive 

programs of funding, voluntary guidance, and research. To foster those programs and to promote 

and enhance voting for United States citizens, HAVA established the Election Assistance 

Commission (EAC). The vision for EAC, according to the Strategic Plan 2009-2014, adopted 

March 2009, is to lead election reform that reaffirms the right to vote and to have all eligible votes 

counted accurately. 

EAC is an independent, bipartisan agency. Four full-time Commissioners, appointed by the 

President and confirmed by the U.S. Senate, and three Federal advisory committees, the Standards 

Board, Board of Advisors, and Technical Guidelines Development Committee, guide the EAC. Its 

mission is to provide assistance to State and local election officials in the effective administration 

of Federal elections. EAC is statutorily required to: 

 Create a clearinghouse of information for election officials and the public; 

 Distribute and monitor HAVA funds to States for election administration improvements; 

 Issue, periodically review and modify, as necessary, Voluntary Voting System Guidelines 

(VVSG); 

 Accredit voting system test laboratories and certify voting equipment; 

 Conduct periodic studies of election administration issues as determined by the 

Commission; 

 Establish best practices and guidelines on election administration for State and local 

election officials; 

 Maintain the national voter registration form developed in accordance with the National 

Voter Registration Act (NVRA) of 1993; 

 Provide Congress with a bi-annual report to assess the impact of the NVRA. 

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The Standards Board and the Board of Advisors provide advice and guidance to EAC on 

Voluntary Voting System Guidelines (VVSG) and other election administration issues. In 

addition, the Technical Guidelines Development Committee (TGDC) assists EAC in the 

preparation of the VVSG. The VVSG sets the standards against which voting systems are tested. 

The Director of the National Institute of Standards and Technology (NIST) of the U.S. Department 

of Commerce serve as the Chair of the TGDC and provide technical support to the Committee. 

Additionally, HAVA specifies that NIST provide recommendations to EAC regarding voting 

system test laboratories. Since Fiscal Year 2004, EAC’s annual appropriations have included 

funds for NIST support. 

In Fiscal Years 2003 and 2004, Congress appropriated nearly $3 billion in Federal financial 

assistance for payments to States under Titles I and II of HAVA. States received the funds to 

upgrade their voting systems, establish a statewide voter registration database, train election 

officials, and educate voters. In Fiscal Year 2003, General Services Administration (GSA) 

distributed $649,500,000 in HAVA funds to the fifty States, Guam, Puerto Rico, the U.S. Virgin 

Islands, American Samoa and the District of Columbia on EAC’s behalf. The funds were 

distributed for activities to improve the administration of elections (Section 101) and to replace 

punch card and lever voting machines (Section 102). 

The Senate confirmed four Commissioners in December 2003 and EAC began operations in 

January 2004, within ten months of the date mandated by HAVA. The Agency’s Fiscal Year 2004 

operating budget was $1.7 million. At the close of the fiscal year, EAC had a staff of 18. EAC’s 

focus in 2004 was to assemble staff, obtain office space, arrange for administrative support from 

the GSA, establish a website, start election administration clearinghouse operations, and distribute 

Federal financial assistance to the States. In FY 2004, EAC also appointed a statutorily-required 

General Counsel. 

During Fiscal Year 2005, EAC appointed its other statutorily-required position, the Executive 

Director, and an interim Inspector General. EAC’s focus in subsequent years was on upgrading 

the VVSG, completing required research to promote effective Federal elections and present key 

data on election practices and voting, instituting a voting system testing and certification program, 

auditing State use of HAVA funds, and providing information on improving elections to its 

stakeholders. 

In FY 2007, Congress recognized the expanding Agency responsibilities and lifted the full-time 

equivalent staffing ceiling of 24. As of the end of FY 2014, EAC had a full-time staff of 23 

employees. Since its inception, EAC has received $2,606,150,000 in requirements payments, 

$24,350,000 in discretionary grant funds for Poll Workers, Mock Elections, Election Data 

Collection, Voting Technology Improvement Research and Equipment and Pre-Election Logic and 

Accuracy Testing and Post-Election Verification and transferred $24,493,000 to NIST. EAC also 

tracks and provides technical assistance on the Section 101 funds. The time period for using the 

Section 102 funds has expired, and EAC is in the process of collecting remaining unused funds. 

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EAC Organization by Program 

EAC has organized its offices around the goals in the Strategic Plan. Below are brief descriptions 

of the four offices responsible for implementing the Strategic Plan programmatic goals. Following 

the descriptions is EAC’s organization chart.

Communications and Clearinghouse

The Communications and Clearinghouse division is responsible for external communications and 

the tools and platforms used to provide information to election officials and the general public. 

Areas of responsibility include: 

 EAC Website and Clearinghouse 

 Social media 

 Media inquires 

 External communications 

 Congressional relations 

 The Freedom of Information Act 

 National Archives and Records Act 

 Editorial support: press releases, speeches, and Congressional testimony 

The agency’s website, www.eac.gov, is the primary communications tool. EAC.gov contains 

thousands of documents and information about voting systems, press releases, informational 

videos, research, data and program-related information. It also features on-demand webcasts and 

related information from public meetings, hearings and roundtables. 

EAC’s award-winning website features a user-driven notification system, allowing visitors to 

customize how they receive information. Users can customize their online experience by signing 

up for automatic e-mail alerts on a variety of election topics and events, including public meetings, 

advisory board meetings, reports, policies and agency news. These alerts can be received in real 

time on a daily or weekly basis. 

Grants Management

The Grants Management Division: 

 Provides technical assistance to the States on administering Federal funds; 

 Awards and monitors discretionary grant programs including: Help America Vote College 

Program, Help America Vote Mock Election Program, Military Heroes Initiative, Voting 

System Pre-Election Logic and Accuracy Testing and Post-Election Audit Initiative and 

Accessible Voting Technology Initiative; 

 Processes and disburses payments to States and discretionary grant recipients; 

 Tracks the submission of and reviews the content of financial and performance reports 

submitted by States and discretionary grant recipients; 

 Reviews audit reports and works with fund recipients on recommendations to resolve audit 

findings applicable to EAC programs; 

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 Reviews amended State Plan submissions; and 

 Drafts advisory opinions for Commission approval and issuance. 

Research, Policy and Programs

The Research, Policy and Programs Division: 

 Conducts research on election administration topics as mandated by Congress and at the 

discretion of the Commission; 

 Administers the biennial Election Administration and Voting Survey; 

 Administers the National Mail Voter Registration Form as prescribed by the National Voter 

Registration Act of 1993 (NVRA), also known as “Motor Voter;”

 Administers the Election Management Guidelines and Quick Start Guides Program to help 

election officials promote secure, efficient, accurate, and accessible elections by providing 

information on topics such as Ballot Design, Polling Place Management, Voting 

Accessibility, Communicating with the Public, Contingency Planning, Managing Change 

in an Election Office, Media and Public Relations, and Developing an Audit Trail for the 

verification of votes; 

 Manages the Language Accessibility Program to provide informational materials on the 

Federal election process and glossaries of election terminology in languages English and 

six other languages, translates the National Mail Voter Registration Form into ten 

languages other than English; and

 Provides materials to voters and election administration officials to facilitate their 

successful participation in Federal elections such as registering to vote. 

Research and reporting is mandated by HAVA on topics such as the impact of the National Voter 

Registration Act of 1993 and on UOCAVA for military and overseas voters’ participation in 

federal elections; the feasibility and advisability of establishing free absentee ballot return postage; 

recounts and contests; the feasibility of alternative voting methods such as electronic voting; the 

voting experiences of first-time voters who register to vote by mail; administering elections in 

urban and rural areas; and the feasibility and advisability of identifying voters by Social Security 

Number. 

Voting System Testing and Certification

Under the Help America Vote Act, EAC accredits voting system test laboratories and certifies 

voting equipment, marking the first time the Federal government has offered these services to the 

States. Participation by States in the program is voluntary. Staff works with NIST to evaluate and 

accredit voting system test laboratories and the management of the voting system certification 

process.

The Testing and Certification (T&C) Division:

 Assists States with voluntary certification of their systems;

 Supports local elections officials in the areas of acceptance testing and pre-election system 

verification;

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 Promotes quality control in voting system manufacturing through the EAC quality 

monitoring program;

 Provides procedures to the voting system manufacturers for the testing and certification of 

voting systems to specified Federal standards consistent with the requirements of HAVA 

Section 231.

EAC’s voting system certification program establishes accountability through its Quality 

Monitoring Program which ensures, through various check points, that the voting systems used in 

the field are the same systems EAC has certified. For instance, under the program, EAC has the 

ability to conduct site visits to production facilities to determine whether systems produced are 

consistent with those that have received EAC certification. In addition, EAC collects reports from 

election officials regarding voting system anomalies. After reviewing the reports, EAC 

disseminates the information to election officials. Furthermore, upon invitation or with permission 

from election officials, the EAC conducts reviews of systems that are in use in the field.

More information about EAC’s Voting System Certification and Testing Program is available in 

EAC’s Frequently Asked Questions on eac.gov. 

 

Commissioners

Inspector General Executive Director

General Counsel Chief Financial Officer/ Budget Director Chief Operating Officer Communications & Clearinghouse

Advisory Board (37 members) Standard Board (110 members) & Technical Guidelines Development Committee (15 members) Statutory, non-monetary positions

Grants Managment

Accounting

Procurement

Voting System Testing and Certification Research, Policy & Programs

Information Technology Service

Human Resources

Administrative Services

ELECTION ASSISTANCE COMMISSION ORGANIZATION CHART

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I.B. PERFORMANCE GOALS, OBJECTIVES AND RESULTS 

EAC formalized its planning, reporting and execution activities with its first five year Strategic 

Plan 2009-2014. The plan was reviewed by the Office of Management and Budget, and presented 

to EAC’s Board of Advisors and Standards Board for comment, as required by HAVA. EAC 

adopted the Plan in March 2009. 

How EAC Assesses Performance 

EAC has five strategic goals: 

1. Communicate timely and accurate information on the effective administration of 

elections for Federal office and on the operations and services offered by EAC. 

2. Deliver and manage Federal funds effectively. 

3. Identify and develop information on areas of pressing concern regarding the 

administration of elections for Federal office, issue recommended improvements, 

guidance, translations, and best practices as required by HAVA, and carry out 

responsibilities under the National Voter Registration Act. 

4. Build public confidence in elections by testing and certifying voting systems to 

improve system security, operation, and accessibility. 

5. Achieve organizational and management excellence. 

The EAC Strategic Plan objectives listed below describe in general terms the results needed to 

accomplish its Strategic Goals. Outcomes measure the effect program outputs have on their 

stakeholders. Outputs are quantifiable targets that directly measure the results of a program. A 

program may have multiple outputs but each output is associated with one program. Performance 

measures are quantifiable, documentable, representations of a capacity, process or outcome that is 

relevant to the assessment of performance. 

Strategic Plan Goal 1: Communicate timely and accurate information on the effective 

administration of elections for Federal office and on the operations and services offered by 

EAC. 

Outcome: The Congress, Federal agencies, State and local election officials and 

the public receive reliable, accurate, and non-partisan information about 

administering, conducting and participating in Federal elections and how, where, 

and when Americans vote. 

Goal 1’s aim of communication of timely and accurate information is the responsibility of the 

Communications and Clearinghouse division. 

Goal 1 FY 2014 Accomplishments

The Communications and Clearinghouse division began Fiscal Year 2014 with focused efforts on 

providing information and best practices to election officials and voters. EAC maintained the goal 

of building a community of knowledge and expertise that could save election officials time and 

money in preparation for the 2014 federal election cycle. 

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EAC.gov Resources 

 The Election Official Exchange: an online resource built by EAC to help local election 

officials connect and leverage their collective knowledge by sharing best practices and 

knowledge. By participating in the Exchange, any U.S. election official can call on a 

colleague for advice about virtually any administrative task they face, from testing voting 

equipment and training poll workers to creating an audit trail and conducting a recount. 

 Events finder: a comprehensive presentation of all EAC public events, including meetings, 

hearings and roundtable discussions. 

 Webcasts: public events are offered live. On demand webcasts are available within 24 

hours. The meeting agenda accompanies the webcast, and the viewer can select topics of 

interest. All meeting materials are also available to the public. 

 Customized program updates: a listserv for EAC’s newsletter and automatic program 

updates. Users are notified daily or weekly when new documents are posted based on their 

delivery preferences. 

Social Media and Stakeholder Updates 

 Blog posts provided periodic election updates and highlight program activities including: 

EAC resources; the 2014 election calendar and election updates; voting system testing 

updates to track progress made on EAC voting system certification; Quick Tips for Voters 

and FAQ Facts about voting in Federal elections; new Quick Start Guides with concise tips 

for election officials; roundtable discussions on managing the polling place; reforms to the 

testing and certification process; the past successes and future direction of the EAC grants 

program, state RFPs for purchases of voting systems/e-pollbooks, and the IEEE/VSSC 

working group on common data format; and ongoing blog posts covering election related 

topics to answer frequently asked questions and provide critical or time sensitive 

information to stakeholders and the media; 

 Used @EACgov on Twitter to rapidly deliver information and updates to stakeholders and 

the public about the voting system certification program, EAC activities and election 

information, communicate with election officials, and build a community of expertise; 

 Maintained Twitter @EACgov and the hashtag #EACvote where election officials and the 

public can gather and discuss preparation for the next Federal election. The number of 

EAC Twitter followers grew from 1,602 to 1,968 from October 2013 through September 

2014;

 Hosted online The Election Official Exchange, a platform to help local election officials 

connect and leverage their collective knowledge by sharing and exchanging best practices 

and information expertise; and 

 Provided program activity updates where the public can customize the kind of information 

and the frequency that it is delivered via EAC’s newsletter and automatic program updates.

 EAC delivered information and updates to election officials and stakeholders about: (1) 

roundtable discussions, workshop seminars and webinars; (2) research products and 

resources; (3) voting system certification; and (4) HAVA grants management. 

 Publicized and circulated EAC’s four new online downloadable Quick Start Guides that 

offer concise tips for election officials with links to examples of materials to help them 

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better manage their elections process on how to: (1) Manage the Voting Process Better; (2) 

Employ Effective Poll Workers; (3) Strengthen Voter Education Programs; and (4) Make 

Election Data Pay Off. 

 Publicized and circulated EAC’s 10 voter tips and 14 voter FAQ facts to help and 

encourage voters to become familiar with the voting process before the 2014 election. 

 Notified States about EAC’s new streamlined process for requesting and receiving HAVA 

funds requirements payments and posted the certification and assurances forms and memo 

to chief election officials on the website. 

 Circulated updated EAC HAVA funding charts with statistics to stakeholders tracking 

HAVA Title I and Title II funds awarded and disbursed to the states 

 EAC Notices for Public Comments: 

o Notice issued for public comment on whether to amend the State-specific NVRA 

instructions for Arizona, Kansas, and Georgia to include additional proof-ofcitizenship instructions on the national mail voter registration form. 

o Notices issued for each of two public comment periods on EAC's 2014 research 

regarding consolidating the FVAP local election official survey into the EAC 

survey. 

o Notices issued for each of two public comment periods on the renewals of two 

existing information collections: EAC's Voting System Testing and Certification 

Program Manual, Version 1.0; and EAC's Voting System Test Laboratory Program 

Manual, Version 1.0. 

 EAC Memorandum of Decision on NVRA Form: posted a memorandum of decision 

concerning state requests to include additional proof-of-citizenship instructions on the 

national mail voter registration form (1-17-14). 

 As requests were received from election officials, EAC continued to add more links to state 

& local election social media sites. 

2014 Public Roundtable Discussions, Workshop Seminars and Webinars 

In Fiscal Year 2014, EAC hosted three public roundtable discussions which followed the series of 

prior EAC roundtables about topics and initiatives. In March, EAC hosted a roundtable consisting 

of two former Presidential Commission on Election Administration (PCEA) commissioners, and 

state and local election officials to discuss recommendations by the PCEA related to polling place 

location and design, managing queues, recruiting and training poll workers and the use of precinct 

management technologies to improve and streamline the voting experience. A second roundtable 

was held in June to discuss reforms to the testing and certification process that can better meet the 

needs of state and local jurisdictions. Panelists included state and local election officials, technical 

experts and former members of PCEA. In September, EAC hosted a third roundtable for state and 

local election officials, grant managers and research experts to discuss the EAC grants program's 

past successes and future direction. All three roundtables were webcast live and featured a live 

Twitterfall. Questions and comments were taken from the public through the webcasts. EAC 

distributed press advisories to national media daybooks and contacts, and to the home state/local 

media outlets representing roundtable participants. 

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Election Assistance Commission 

EAC also publicized and promoted participation in six regional Election Center Accessible Voting 

Workshop seminars to help election jurisdictions of all sizes to prepare for an anticipated rise in 

the number of voters with disabilities; four EAC/NIST Accessible Voting Technology Initiative 

(AVTI) webinars; and an Information Technology and Innovation Foundation’s (ITIF) panel 

discussion and demonstration of accessible technologies developed through an ITIF initiative 

funded by EAC. (Background: The webinars and initiatives were made possible through EAC 

grants which are funded under the Congressional Consolidated Appropriations Act for FY 

2009/2010. Congress provided funds to the EAC to develop a research program to continue to 

support accessible voting technology.) 

Strategic Plan Goal 2: Deliver and manage Federal funds effectively. 

Outcome: States and other recipients promptly and accurately receive Federal 

funds administered by EAC and use the funds appropriately to improve the 

administration of elections for Federal office. 

Goal 2 is administered by the Grants Management division and the Office of the Inspector 

General. 

Goal 2 FY 2014 Accomplishments

 Disbursed Requirements Payment grants to states certifying compliance for the FY 2009 

through FY 2011 award years ($2,070,509 for FY 2009 to two states; $1,449,356 for FY 

2010 to two states; and $95,153 for FY 2011 to 5 states); 

 Provided technical assistance to grant recipients as they are responsible for establishing and 

maintaining internal controls that will reasonably ensure compliance with federal laws, 

regulations, and the provisions of the authorizing legislation and grant agreements for the 

applicable grant programs; 

 Monitored and provided technical assistance for the Voting System Pre-Election Logic and 

Accuracy Testing & Post-Election Audit Initiative grants, and the Accessible Voting 

Technology Initiative grants. The projects focused on making pre-election information 

accessible to voters and using specialized systems in the field for elections; 

 Closed the remaining four three-year award 2010 College Poll Worker and four 2010 Mock 

Election Program grants; 

 Closed seven of eight open Office of the Inspector General audits of state use of HAVA 

funds. 

Strategic Plan Goal 3: Identify and develop information on areas of pressing concern 

regarding the administration of elections for Federal office and issue recommended 

improvements, guidance, translations, and best practices as required by HAVA, and carry 

out responsibilities under the National Voter Registration Act. 

Outcome: As a result of this goal: 1) the election community and other key 

stakeholders improve the administration of elections for Federal office on the 

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bases of pertinent, impartial, timely, and high-quality information, 

recommendations, guides and other tools on election and voting issues and 2) 

eligible citizens use the mail voter registration application to register to vote, 

register with a political party, or report a change of name, address, or other 

information. 

Goal 3 is administered by the Research, Policy and Programs division. 

Goal 3 FY 2014 Accomplishments

Research: 

 Responded to ongoing inquiries regarding the 2012 EAVS data and responded to State's 

requests to post updates/corrections to their data files. In preparation for administering the 

2014 EAVS, performed an assessment of the 2012 survey. 

 Completed two Federal Register public comment periods on the 2014 EAVS. Performed a 

review and analysis of public feedback (45 comments) from the Federal Register public 

comment periods, completed the Paperwork Reduction Act (PRA) package for the 2014 

survey submission to Office of Management and Budget (OMB) and responded to the 

OMB Desk Officer’s inquires regarding the 2014 EAVS submission. 

 Received final OMB approval and clearance number for EAC's 2014 EAVS. 

The clearance number is good through April 30, 2017. With this clearance EAC is not 

expected to complete a survey submission process and review for administering the 2016 

EAVS. 

 Pursuant to an MOU reached between EAC and the Federal Voting Assistance Program 

(FVAP) the 2014 EAVS will include 12 additional FVAP questions. These questions are 

incorporated from the previous FVAP local election official survey. EAC staff, FVAP staff 

and each agency’s contractors reached agreement on the final wording of the 2014 

questions, agreed on the rules that will be used to validate the UOCAVA data that state’s 

provide and, agreed to a timeline for the release of the FVAP report that will use 2014 

EAVS data. 

 EAC finalized a contract to ICF International to administer the 2014 EAVS, to analyze the 

data and to prepare a report summarizing the data. 

 In consultation with ICF, staff made final changes to the 2014 EAVS Supplemental 

Instruction Manual and the 2014 EAVS Statutory Overview. By the end of fiscal year 2013 

42 states had completed their submission of data for the 2014 Statutory Overview. 

 Reviewed and gave sign-off to a GAO document referencing EAC data related to EAC data 

on provisional voting and voter registration. 

Policy: 

 Staff met with DOJ staff attorneys regarding pending court cases involving the State of 

Kansas and the State of Arizona. Staff prepared documents and certifications of EAC 

materials related to these court cases including creating a notice for public comment in the 

Federal Register regarding a response to the Kansas court decision on Kobach vs EAC. 

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Election Assistance Commission 

 For follow-up to the Kansas court decision (regarding EAC and its update to the NVRA 

state instructions), EAC worked with DOJ attorneys and other Federal agency staff to 

ensure: prompt and proper posting of a Federal Register Notice; cataloguing and 

monitoring of those public comments through the Federal Document Management System 

(FDMS) website, and; subsequent posting/uploading of the 241 comments captured 

through the FDMS website on to Regulations.gov. 

 EAC processed changes to the NVRA form to update NVRA form state instructions for 

three requesting states. 

 Finalized contract award for translation services to be provided by Translations 

International Inc. Translations International Inc, completed foreign-language updates to 

NVRA state instructions for Georgia, Wisconsin, New York State and Tennessee and these 

updates (including 508 Compliance) were posted to EAC's website. 

 Participated in senior management discussions related to updating the EAC strategic plan 

and completed the update of the RPP portion (Study, Guide and Assist) portion of the 

2015-2010 EAC Strategic Plan. 

Programs:

 Two former local election officials were hired as part-time employees to assist with 

updating the EAC’s Quick Start Guides. A contract also was awarded to HR 

Communications to create a new design and brand for the Quick Start program. 

 During Fiscal Year 2014 four new Quick Tips (formerly referred to as Quick Starts) were 

published on: Managing the Voting Process; Educating Voters; Poll Worker Recruitment 

and Training, and Why Good Data Matters. Information contained in the Quick Tips was 

based on conference calls conducted with a select group of local election officials and 

research done on election jurisdictions from around the country. 

 Drafts of Quick Tips documents were written on 1) Serving UOCAVA Voters, 2) 

Conducting Audits, 3) Monitors at the Polls, 4) Administering Provisional Ballots 5) 

Alternative Voting Methods 6) Disaster and Contingency Planning and 7) Managing 

Change in Elections. These Quick Tips, to be designed and edited by a contract awarded 

to Solstice Advertising, will be published in early FY 2015. 

 A flier on “10 Tips to Enhance Your Voting Experience” was written and posted to 

EAC’s website. This is an update to the 2014 EAC Voter Tips flier. 

 A flier on “14 Facts About Voting in Federal Elections” was written and posted to EAC’s 

website. This is an update to the 2011 EAC brochure Voter’s Guide to Federal Elections.

 In consultation with EAC’s communications department staff developed a social media 

program plan to promote the new Quick Tips program and products through EAC’s social 

media.

 Staff performed ongoing program reviews of final program reports submitted by Mock 

Election and College Poll Worker program grantees. 

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Strategic Plan Goal 4: Build public confidence in elections by testing and certifying 

voting systems to improve system security, operation and accessibility. 

Outcome: Voting equipment operates more reliably and securely and is more 

accessible to the disabled. States use the EAC testing and certification program to 

ensure voting systems meet standards. 

Goal 4 is administered by the Voting System Testing and Certification (T&C) division.

Goal 4 FY 2014 Accomplishments 

 

In FY 2014, the Certification Division: 

 Certified six (6) voting systems; 

 Managed testing campaigns for five (5) additional systems (testing not completed as of the 

date of this report); 

 Processed the registration of one new voting system manufacturer; (Clear Ballot Group, 

Inc.) 

 Drafted and published four (4) Requests for Interpretation (RFIs) to the Voluntary Voting 

System Guidelines (VVSG); 

 Drafted and published three (3) Notices of Clarification (NOCs) to Testing & Certification 

Program Manuals; 

 Continued development and implemented major updates to EAC’s Virtual Review Tool 

(VRT); 

 Audited two (2) voting system manufacturing facilities; 

 Conducted two (2) Manufacturing Quality Assurance audits; 

 Held an in-person Technology Testing Agreement meeting between EAC, VSTL and nontraditional voting system manufacturer. 

 Performed two (2) laboratory re-accreditation audits, and a follow-up EAC to an initial new 

laboratory accreditation audit. 

 Held one (1) EAC VSTL Meeting and one (1) EAC voting System Manufacturers Meeting. 

 

Strategic Plan Goal 5 is to implement a high performance organization. The anticipated 

outcome of the goal is that EAC proficiently carries out EAC’s strategic objectives.

The three strategic objectives of Goal 5 are to improve performance, strengthen internal controls; 

and maximize efficiencies. 

Key performance measures include implementing 90 percent of Office of the Inspector General 

audit recommendations within agreed upon timeframes, and to meet and exceed annual 

performance measures. To date, only two of the recommendations remain open pending a quorum 

of the Commission for final resolution. 

On the metric regarding meeting annual performance measures, management continually works to 

foster a culture of accountability among staff. Agency directors responsible for implementation of 

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the EAC Strategic Plan goals report on their division metrics in the Agency Financial Report, the 

Annual Performance Report along with the Congressional Budget Justification, and on planned 

metrics in the OMB Budget Justification each September. 

Towards efforts at continually improving internal controls, the agency seeks to improve staff 

satisfaction ratings and achieve management excellence. Directors complete assessable unit risk 

assessment questionnaires and individual letters of assurance, which are reviewed and rolled into 

the agency’s Annual Statement of Assurance. EAC will continue to focus on resolution of issues 

identified in audits, setting up sound systems and policies and procedures, working with managers 

on the relationship between budget and performance, maximizing use of staff and financial 

resources, and training EAC staff on financial management processes and their responsibilities. 

In FY 2014, EAC provided valuable financial management tools and support. All staff were 

offered internal control training on-site; Contracting Officer’s Representative were offered 

financial report and accrual training; and managers held a retreat on updating performance 

measures in the draft EAC Strategic Plan for 2015- 2020. Agency staff is able to utilize four 

automated systems (procurement, travel, purchase-card, and time and attendance) via interagency 

agreements.

During FY 2014, to further maximize efficiencies, EAC stored hundreds of boxes of files 

inexpensively at the National Archives and Records Administration Federal Records Center 

according to their records retention schedules. Further, EAC continued its commitment made in 

October 2010 to reduce staff; has reassigned functions internally and uses the services of other 

agencies to obtain efficiencies of scale. 

The agency moved to new space in a Federal building in Silver Spring, Maryland from 

Washington, DC. The move was consistent with Section 3 of Office of Management and Budget 

Memorandum 12-12 Promoting Efficient Spending to Support Agency Operations, and OMB 

Management Procedures Memorandum 2013-02 Freeze the Footprint policy implementing 

guidance. The number of square feet utilized by the agency declined from 17,548 in FY 2013 at 

$52.46 per square foot ($920,568.08) to 6,000 in FY 2014 at $37.12 per square foot ($222,720) 

after the move. The agency’s move to new open office space, saved $697,848.08 or over 75 

percent on rent. 

The open office space concept allows for scaling the number of staff up or down through the use of 

telecommuting. In FY 2014, staff was equipped with laptop computers so they could telecommute 

two days per week from any location. Telecommuting has been shown to improve staff’s worklife balance and morale. It also helps ensure that the agency is able to implement its continuity of 

operations plans if needed. 

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Summary Performance Information 

The following table presents key EAC FY 2014 program performance data. As much detailed 

performance information as possible will be presented, and variances discussed, in the FY 2014 Annual 

Performance Report due February 15, 2015 along with the FY 2016 Congressional Justification.

EAC FY 2014 Performance Summary

Program Performance Indicator

Type of 

Indicator Planned Actual

Strategic Goal 1: Communicate

Issue Clearinghouse policy Output Final

In Final Draft (quorum 

required for final approval)

Issue Policies/Procedures to process requests from 

outside EAC Output Final In Final Draft

Strategic Goal 2: Fund and Oversee

Award grants within established timeframes Output 100%

L&A round two pending 

quorum (to approve new 

Notice of Funds Availability)

Resolve 100 percent of audit findings within 

established time frames. Output 100% 88% (one audit remains open)

Negotiate indirect cost rates within 30 days of receipt 

of acceptable indirect cost proposals Output 100%

Submit requests for 

negotiation to HHS upon 

receipt (proposals are 

forwarded by EAC 

electronically to HHS for 

negotiation)

Strategic Goal 3: Study, Guide, Assist

Issue reports to Congress by statutory deadlines Output 3 3

Disseminate all completed research project reports to 

stakeholders Output 100% 100%

Strategic Goal 4: Test and Certify

Produce updates to the VVSG in Fiscal years 2010 

and 2014 Output

VVSG Version 1.1 revised and 

updated. Awaiting EAC 

Commissioners

Conduct at least one review of a manufacturing 

facility of a registered manufacturer at least once 

every 4 years. Output 1

2 (Dominion and MicroVote)

Plan to conduct field reviews for at least 50 percent of 

jurisdictions that volunteer for reviews Output 50%

N/A (No requests made in FY 

2014)

Portfolio Analysis

Since 2004, EAC has received funds in three appropriations: Salaries and Expenses, Election 

Reform Programs, and for FY 2008 only, Election Data Collection Grants. The purpose of the 

Data Collection grants of $2.0 million each to five States was to measure the costs of improving 

the collection of election data at the precinct level during the 2008 Federal election. In FY 2014, 

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the Salaries and Expenses appropriation of $10.0 million funded a $1.9 million transfer to NIST, 

staff salaries and benefits, travel, rent and telecommunications, printing, contracts, supplies and 

equipment. 

I.C. FINANCIAL RESULTS

This analysis is intended to help readers understand EAC’s financial results, position and condition 

as portrayed in the financial statements and notes to the statements. It explains changes in assets, 

liabilities, costs, revenues, obligations, and outlays; includes comparisons of FY 2014 to FY 2013; 

and discusses the relevance of balances and amounts in the financial statements and notes. The 

changes are discussed in the context of whether the year’s activities improved or deteriorated the 

agency’s financial position. 

Budgetary Resources 

Budgetary resources (Obligations Incurred, apportioned unobligated balances, and unobligated 

balances not available) are the amounts available to enter into new obligations and to liquidate 

them. The majority of EAC’s available budgetary resources are for Requirements Payments in the 

Election Reform Program appropriation. Budgetary resources include new Budget Authority from 

appropriations and unobligated balances of Budget Authority provided in previous years in the no 

year Election Reform Program account. 

For FY 2014, the available budgetary resources were $19.9 million, in both FY 2014 and the 

restated FY 2013. In FY 2014, EAC’s appropriations totaled $10.0 million, for salaries and 

expenses. 

The remaining unspent HAVA Section 102 payments made to the States in FY 2003 and FY 2004 

were returned to EAC in FY 2014. These funds will be disbursed as HAVA Section 241 

payments. 

Obligations Incurred increased from $8.1 million in the restated FY 2013 to $6.5 million in FY 

2014 primarily as a result of the disbursement of FYs 2008-2011 Requirements Payments and the 

reduction in the annual appropriation. Unobligated Balance – Apportioned increased from $3.3 

million in the restated FY 2013 to $4.2 million in FY 2014. 

Financial Position 

Assets 

EAC had $25.9 million in total assets (Fund Balance with Treasury, Advances and Prepayments, 

and Other Assets) as of September 30, 2014, down from $29.3 million in restated FY 2013. This 

is decrease is largely the result of disbursements of Requirements Payments from FYs 2008-2011. 

Liabilities 

EAC had total liabilities (accounts payables, accrued payroll and benefits, and unfunded leave) of 

$6.5 million as of September 30, 2013 and $3.5 million September 30, 2014. 

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Net Position 

Net position (Unexpended Appropriations and Cumulative Results of Operations) decreased in FY 

2014 to $22.3 million from $22.8 million in FY 2013. Unexpended Appropriations decreased 

primarily due to expenditure of Requirements Payments. 

Results of Operations 

EAC, as presented in its Statement of Net Costs, reports its results of operations within four 

programs: Communications and Clearinghouse, Fund and Oversee, Research, Policy and 

Programs, and Testing and Certification. Costs specifically identified with each of these programs 

such as assigned personnel costs and specific program contract costs are allocated to the program 

directly. The Fund and Oversee program reports the expenditures for the Requirements Payments 

and the other EAC grants. In years in which EAC receives significant appropriation for these 

HAVA funds, this program, Fund and Oversee, typically exceeds the other programs in overall 

costs. Other general agency overhead costs such as rent, human resource costs and financial 

management costs are allocated on a per employee basis. This methodology is outlined in EAC’s 

Cost Allocation Model and is reviewed by the financial statement auditors each year to ensure the 

accurate allocation of expenses to each program. 

Total Net Cost of Operations (expenses in the salaries and expenses, and grant appropriations) for 

the EAC was $7.9 million for Fiscal Year 2014. 

Limitations of the Financial Statements 

The principal financial statements have been prepared to report the financial position and results of 

operations of the entity, pursuant to the requirements of 31 U.S.C. 3515(b). While the statements 

have been prepared from the books and records of the entity in accordance with Generally 

Accepted Accounting Principles (GAAP) for Federal entities and the formats prescribed by the 

Office of Management and Budget, the statements are in addition to the financial reports that are 

used to monitor and control budgetary resources, which are prepared from the same books and 

records. 

The statements should be read with the realization that they are for a component of the U.S. 

Government, a sovereign entity. 

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Election Assistance Commission 

I.D. ANALYSIS OF CONTROLS, MANAGEMENT SYSTEMS, AND LEGAL 

COMPLIANCE 

Internal Control Environment

EAC is subject to numerous legislative and regulatory requirements that promote and support 

effective internal controls. EAC believes that maintaining integrity and accountability in its 

programs and operations is critical for good government, demonstrates responsible stewardship 

over assets and resources, helps ensure high-quality and responsible leadership, allows for 

effective delivery of services to customers, and maximizes desired program outcomes. 

EAC has developed and implemented management, administrative and financial system controls 

that with the aim of ensuring: 1) programs and operations achieve intended results efficiently and 

effectively; 2) resources are used in accordance with the mission of the agency; 3) programs and 

resources are protected from waste, fraud and abuse; 4) program and operations activities are in 

compliance with laws and regulations; and 5) reliable, complete and timely data are maintained 

and used for decision-making. 

The agency can provide qualified assurance that internal control over financial reporting to ensure 

that transactions are: executed in accordance with budgetary and financial laws and other 

requirements, consistent with the purposes authorized, and recorded in accordance with Federal 

accounting standards. EAC ensures that assets are properly acquired and used, safeguarded to 

deter theft, accidental loss or unauthorized disposition, and fraud. 

Laws that help EAC improve the management of its financial operations and programs are as 

follows: 

Federal Manager’s Financial Integrity Act

 

The Federal Manager’s Financial Integrity Act (FMFIA) of 1982 requires Executive Branch 

agencies to establish, maintain, and assess internal controls to ensure that agency program and 

financial operations are performed effectively and efficiently. To help ensure that controls have 

been identified and implemented, the heads of agencies must annually evaluate and report on the 

effectiveness of the internal control (FMFIA Section 2) and financial management systems 

(FMFIA Section 4) that protect the integrity of Federal programs. 

Since FY 2009, EAC has incorporated the results of self-assessments of financial management 

internal controls to further demonstrate evaluation of internal controls. 

A material weakness was identified by management beginning in FY 2008 concerning EAC’s lack 

of effective written policies and procedures. EAC finalized records management procedures in FY 

2014. EAC plans on adopting Communications and Clearinghouse Policy and National Voter 

Registration Act revised rules once a quorum is in place. 

EAC is working with the new financial services provider to ensure internal controls over financial 

reporting are strong. 

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Entity-Wide Security Program 

EAC recognizes that effective security management is critical to EAC's mission. The ability to 

ensure confidentiality, integrity, and availability of its information assets is essential to 

minimizing risks of inadvertent or deliberate misuse, fraud or destruction. 

The FY 2014 Federal Information Security Management Act (FISMA) evaluation report found that 

EAC was in substantial compliance with FISMA requirements. Specifically, it was noted that EAC 

had established sufficient policies and procedures relating to its IT security program to address 

identified risks; implemented actions to address prior concerns relating to meeting Privacy Act 

requirements; established a continuous monitoring program that substantially addressed all NIST 

requirements (using Asset management and IT service desk utilities); provided annual security 

awareness training and specialized training to its IT specialists; developed and tested a 

contingency plan; and had established required access controls sufficient to meet identified risks. 

The summary in EAC’s 2014 FISMA audit shows that EAC was in substantial compliance with 

FISMA requirements, OMB policy and guidelines, and applicable NIST standards and guidelines 

for the security control areas evaluated. EAC had developed an agency-wide IT security program 

based upon assessed risk. The FISMA audit concluded that the security program in place provided 

reasonable assurance that the agency’s information and information systems are appropriately 

protected. 

 

Audit Follow-Up

EAC’s Office of Inspector General (OIG) conducts audits and reviews of the agency’s operations. 

The Office of the Chief Financial Officer (OCFO) works closely with EAC management and the 

OIG to complete actions necessary to respond to audit findings. OCFO tracks the completion of 

the audit recommendations in a Quarterly Audit Recommendation Tracking Report. The report is 

carefully reviewed by EAC and is submitted each month to Congressional Oversight staff. As of 

September 30, 2014, EAC has two open findings to resolve. EAC made improvements in all 

Agency management challenges. EAC also considers and responds to recommendations from 

audits and reviews conducted by the Government Accountability Office. 

Federal Financial Management Improvement Act

Per OMB Bulletin No. 14-02 “Audit Requirements for Federal Financial Statements,” EAC as an 

Accountability of Tax Dollars Act of 2002-covered agency, is not subject to the requirements of 

the Federal Financial Management Improvement Act. 

Accountability of Tax Dollars Act of 2002 

 

The Fiscal Year 2014 financial statement audit report identified a material weakness in internal 

control over financial reporting. 

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Federal Information Security Management Act

EAC was in compliance with the Federal Information Security Management Act at the end of FY 

2014. 

Inspector General Act Amendments of 1988

 

The EAC Office of the IG audits HAVA funds administered by recipients of HAVA grants and 

transmits to EAC single audit reports that present findings on HAVA funds. The principal 

recipients of HAVA grant funds are State governments. 

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 Election Assistance Commission

U.S. ELECTION ASSISTANCE COMMISSION

1335 East-West Highway. Suite 4300 

Rockville, MD 20910

November 17, 2014

Annual Assurance Statement on Internal Control

The management of the Election Assistance Commission (EAC) is responsible for establishing and 

maintaining effective internal control and financial management systems that meet the objectives

of the Federal Managers’ Financial Integrity Act (FMF1A) and Office of Management and Budget 

(OMB) Circular A-123 Management's Responsibility for Infernal Control. Internal control is an 

integral component of EAC's management that provides reasonable assurance the following 

objectives are being achieved: effectiveness and efficiency of operations, reliability of financial 

reporting, and compliance with applicable laws and regulations.

EAC's assessment of internal controls for ensuring the effectiveness and efficiency of operations 

focused on assessing controls for ensuring the reliability of information associated with the 

performance measures presented in its strategic plan, and on self-assessments in the Office of the 

Chief Operating Officer and Acting Executive Director, Office of the Chief Financial Officer and 

program and administrative staff. With respect to assessing internal control designed to ensure the 

reliability of financial reporting, EAC is not required by OMB Circular A-123 to perform a 

separate assessment. EAC relied upon the evaluation of internal controls over financial reporting 

conducted by its independent auditors, on reports issued by the Inspector General, and on agency 

risk assessments and letters of assurance over the program offices, financial management offices 

(accounting, budget, grants and procurement), and administrative offices. With respect to internal 

controls to ensure compliance with laws and regulations, EAC relied upon the evaluation 

conducted by its independent auditors and the Inspector General.

In FY 2014, EAC worked to resolve one material weakness in the effectiveness of its internal 

control over operations: a $2.2 million improper payment made in FY 2014 using canceled FY 

2008 funds. The auditors found one material weakness in internal controls over financial 

management reporting. EAC and its financial services provider have implemented measures to 

improve internal controls, and are working to collect the funds. EAC is working with the Office of 

Management and Budget on the required letter to report the Anti-Deficiency Act violation.

Except for the material weakness described above, the Commission provides a qualified 

statement of assurance that the internal control and financial management systems meet the 

objectives of the Federal Managers” Financial Integrity Act.

U.S. Election Assistance Commission

1335 East-West Highway, Suite 4-300

Silver Spring, MD 20910

www.eac.gov

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Election Assistance Commission 

SECTION II

Financial Section 

II.A. MESSAGE FROM THE CHIEF FINANCIAL OFFICER 

EAC’s financial statements for FY 2014 are an integral component of the Agency Financial 

Report (AFR). This is the seventh year in its eleven year operational existence that EAC has 

prepared financial statements and submitted them for audit. This is the sixth year EAC is 

presenting an AFR and Annual Performance Report in place of the Performance and 

Accountability Report. EAC presents summarized performance data in this report, and will 

provide detailed data in conjunction with the Fiscal Year (FY) 2016 Congressional Budget 

Justification. 

In FY 2014, EAC received its fourth opinion on the annual Federal Information Security 

Management Security Act (FISMA) audits that the agency is in substantial compliance with the 

requirements of FISMA. The independent auditors opined that EAC has developed an agencywide Information Technology security program that is based on assessed risk. Further, the 

auditors found that the program provides reasonable assurance that EAC’s information and 

information systems are appropriately protected. 

In FY 2014, EAC was able to implement recommendations in and close out the rigorous FY 

2013 Acquisition and Procurement of Goods and Services independent audit covering FYs 2009 

through 2012. 

 After receiving three unqualified financial statement audit opinions in FY 2009 through FY 

2011, as described in earlier Agency Financial Reports, the agency received two disclaimer 

opinions on the financial statements in FY 2012 and FY 2013. The FY 2013 disclaimer was due 

primarily to uncertainties around disbursement of $2.2 million from a cancelled FY 2008 fund in 

October 2013. 

The FY 2014 audit opinion found one material weaknesses. The weakness is mandatory and is 

related to the FY 2013 restatement to correct entries for the $2.2 million improper payment that 

resulted in a violation of the Anti-Deficiency Act. EAC issued the required letter to report the 

violation, and has requested that the recipient of the funds return them. To account for the 

disbursement, EAC introduces a Custodial Activity Statement for FY 2014. EAC will continue 

to work to resolve issues around the disbursement such as strengthening internal guidance on the 

control of funds and arranging additional staff training. 

EAC continually focuses on resolution of issues identified in audits, setting up sound systems 

and policies and procedures, maximizing use of staff and financial resources, and training staff 

on financial management processes and their responsibilities. In FY 2014, EAC provided 

valuable financial management tools and training to its staff. All staff was offered internal 

control training on-site, and Contracting Officer’s Representatives and financial staff were 

offered financial report and accrual training. Agency staff is able to utilize four automated 

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Election Assistance Commission 

systems (procurement, travel, purchase-card, and time and attendance) via the economies of 

scale realized with interagency agreements.

During FY 2014, to maximize efficiencies, EAC staff settled into smaller open office space in 

Silver Spring, Maryland after moving from Washington, DC. The move was consistent with 

Office of Management and Budget guidance on efficient spending in support of operations and 

reduction of office space. The agency’s move to new open office space saved nearly $700,000 

or over 75 percent on rent. EAC continues its commitment to making the space paperless by 

utilizing inexpensive file storage at the National Archives and Records Administration Federal 

Records Center in Suitland, Maryland according to retention schedules rather than in costly 

office space. 

The open office space concept allows for scaling the number of staff up or down through the use 

of telecommuting. Staffing levels have been drastically reduced due to budget reductions, lack 

of commissioners, and uncertainty about the future of the agency. Staff is assigned different 

functions so that the important mission of EAC – to assist with the effective administration of 

Federal elections – can continue. In FY 2014, staff was equipped with laptop computers so they 

can telecommute two days per week from any location. Telecommuting has been shown to 

improve staff’s work-life balance and morale. It serves another purpose of helping to ensure that 

the agency is experienced at telecommuting and is able to implement continuity of operations 

plans if needed. 

Following for your review are EAC’s auditor’s report, and financial statements and notes. 

Annette Lafferty 

November 17, 2014 

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II.B. INSPECTOR GENERAL’S ASSESSMENT

23
The predecessor auditors reported on the financial statements as of and for the period ended 

September 30, 2013 before the restatement. The financial statements as of and for the year ended 

September 30, 2013 were audited by Leon Snead & Company, P.C. whose report, dated 

December 16, 2013, expressed a disclaimer opinion on those statements. The disclaimer was due 

to significant and pervasive uncertainties relating to a $2.2M grant liability accrual, as well as, 

the validity of remaining obligations reported for a 2008 requirement payment appropriation. 

Brown & Company identified a material weakness in internal control over disbursements. 

EAC’s controls over disbursements were not effective, to ensure disbursements were not made 

from a canceled fund. EAC made a $2,266,085 disbursement from a fiscal year (FY) 2008 fund 

after the fund was canceled on September 30, 2013. The disbursement was unable to be 

authorized from the FY 2008 authority. The payment was liquidated directly from Treasury’s 

General Fund which caused EAC to be in violation of the Anti-Deficiency Act. This also caused 

the agency to make an improper payment. Brown & Company determined that the responsible 

officials had no willful or knowing intent to violate the Anti-deficiency Act.

In its response to the draft report, the EAC indicated that it had reported the Anti-Deficiency Act 

violation to the President, Congress and the Comptroller General on October 21, 2014, and that 

the EAC was in the funds collection process. Corrective actions had been taken to remove 

canceling funds prior to expiration; a system control had been added; and EAC's Administrative 

Control of Funds Policy had been amended to emphasize OMB Circular A-II Section 130.14, 

and to include the Closing Act, 31 U.S. Code 1552. Staff had been counseled, will review the 

revised funds control policy, and are scheduled to take training in December 2014 and January 

2015. 

Evaluation of Brown & Company’s Audit Performance

To fulfill our responsibilities under the CFO Act of 1990, as amended, and other related financial 

management requirements, the OIG:

• Reviewed Brown & Company’s approach and planning of the audit; 

• Evaluated the qualification and independence of the auditors; 

• Monitored the progress of the audit at key points; 

• Coordinated periodic meetings with EAC management to discuss progress, findings, and 

recommendations; 

• Reviewed Brown & Company’s audit report; 

• Performed other procedures we deemed necessary; and

• Coordinated issuance of the audit report. 

Brown & Company, CPAs is responsible for the attached auditor’s report and the conclusions 

expressed in the report. We do not express any opinion on EAC’s financial statements or 

conclusions on the effectiveness of internal control, or compliance with laws and regulations. 

24
Report Distribution

The Inspector General Act of 1978, as amended, requires semiannual reporting to Congress on all 

reports issued, actions taken to implement recommendation, and recommendations that have not 

been implemented. Therefore, we will include the information in the attached audit report in our 

next semiannual report to Congress. The distribution of this report is not restricted and copies are 

available for public inspection. 

The Office of Inspector General appreciates the courtesies and cooperation EAC extended to 

Brown & Company and the OIG during the audit. If you, or your staff, have any questions, 

please contact me at (301) 734-3104. 

Attachment

 

 

 

 

25
Election Assistance Commission 

II.C. INDEPENDENT AUDITORS’ REPORT

26
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Opinion on the Financial Statements 

In our opinion, the financial statements referred to above present fairly, in all material respects, the 

financial position of EAC as of September 30, 2014, and its net costs, changes in net position, budgetary 

resources, and custodial activity for the year then ended, in accordance with accounting principles 

generally accepted in the United States of America. 

Other Matters 

Required Supplementary Information 

Accounting principles generally accepted in the United States of America require that the information in 

the Management’s Discussion and Analysis (MD&A) and Required Supplementary Information (RSI) 

sections be presented to supplement the basic financial statements. Such information, although not a part 

of the basic financial statements, is required by the Federal Accounting Standards Advisory Board, who 

considers it to be an essential part of financial reporting for placing the basic financial statements in an 

appropriate operational, economic, or historical context. We have applied certain limited procedures to 

the required supplementary information in accordance with auditing standards generally accepted in the 

United States of America, which consisted of inquiries of management about the methods of preparing the 

information and comparing the information for consistency with management’s responses to our 

inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic 

financial statements. We do not express an opinion or provide any assurance on the information because 

the limited procedures do not provide us with sufficient evidence to express an opinion or provide any 

assurance. 

Prior Year Financial Statements 

The financial statements as of and for the year ended September 30, 2013, were restated because of 

material adjustments. We audited the adjustments described in Note 16 that were applied to restate the 

financial statements as of and for the year ended September 30, 2013. In our opinion, such adjustments 

are appropriate and have been properly applied. 

The accompanying restated financial statements as of and for the year ended September 30, 2013, were 

not audited, and accordingly, we do not express an opinion or any other form of assurance on them. 

The predecessor auditor’s reported on the financial statements as of and for the period ended September 

30, 2013 before the restatement. The financial statements as of and for the year ended September 30, 

2013 were audited by other auditors whose report, dated December 16, 2013, expressed a disclaimer 

opinion on those statements. The disclaimer was due to significant and pervasive uncertainties relating to 

a $2.2M grant liability accrual, as well as, the validity of remaining obligations reported for a 2008 

requirement payment appropriation. 

Report on Internal Control Over Financial Reporting 

In planning and performing our audit of the financial statements, we considered EAC’s internal control 

over financial reporting (internal control) to design audit procedures that are appropriate in the 

circumstances for the purpose of expressing an opinion on the financial statements, but not for the 

purpose of expressing an opinion on the effectiveness of EAC’s internal control. Accordingly, we do not 

express an opinion on the effectiveness of EAC’s internal control. 

27
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to prevent, or 

detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination 

of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement 

of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A 

significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less 

severe than a material weakness, yet important enough to merit attention by those charged with 

governance. 

Our consideration of the internal control was for the limited purpose described in the first paragraph of 

this section and was not designed to identify all deficiencies in internal control that might be deficiencies, 

significant deficiencies or material weaknesses and therefore, material weaknesses or significant 

deficiencies may exist that were not identified. However, we identified a material weakness in internal 

control, which states EAC’s controls over disbursements were not effective, to ensure a disbursement was 

not made from a canceled obligation. The material weakness is described in Section I. 

Report on Compliance and Other Matters 

As part of obtaining reasonable assurance about whether EAC’s financial statements are free from 

material misstatement, we performed tests of its compliance with applicable provisions of laws, 

regulations, contracts and grant agreements, noncompliance with which could have a direct and material 

effect on the determination of financial statement amounts. However, providing an opinion on 

compliance with those provisions was not an objective of our audit, and accordingly, we do not express 

such an opinion. The results of our tests disclosed an instance of noncompliance or other matter that is 

required to be reported under Government Auditing Standards or OMB Bulletin No. 14-02. The 

noncompliance is described in Section 1. 

Management’s Responsibility for Internal Control and Compliance 

EAC’s management is responsible for (1) evaluating effectiveness of internal control based on criteria 

established under the Federal Managers Financial Integrity Act (FMFIA), (2) providing a statement of 

assurance on the overall effectiveness of internal control over financial reporting, and (3) ensuring 

compliance with other applicable laws and regulations. 

Auditor’s Responsibilities 

We are responsible for: (1) obtaining a sufficient understanding of internal controls to plan the audit, (2) 

testing compliance with certain provisions of laws and regulations that have a direct and material effect 

on the financial statements and applicable laws for which OMB Bulletin 14-02 requires testing, and (3) 

applying certain limited procedures with respect to the MD&A and other RSI. 

We did not evaluate all internal controls relevant to operating objectives as broadly established by the 

FMFIA, such as those controls relevant to preparing statistical reports and ensuring efficient operations. 

We limited our internal control testing to testing controls over financial reporting. Because of inherent 

limitations in internal control, misstatements due to error or fraud, losses, or noncompliance may 

nevertheless occur and not be detected. We also caution that projecting our audit results to future periods 

is subject to risk that controls may become inadequate because of changes in conditions or that the degree 

of compliance with controls may deteriorate. In addition, we caution that our internal control testing may 

not be sufficient for other purposes. 

28
 

 

 

 

 

 

 

 

 

 

 

 

 

 

We did not test compliance with all laws and regulations applicable to EAC. We limited our tests of 

compliance to certain provisions of laws and regulations that have a direct and material effect on the 

financial statements and those required by OMB Bulletin 14-02 that we deemed applicable to EAC’s 

financial statements for the fiscal year ended September 30, 2014. We caution that noncompliance with 

laws and regulations may occur and not be detected by these tests and that such testing may not be 

sufficient for other purposes. 

Status of Prior Year’s Control Deficiencies and Noncompliance Issues 

We have reviewed the status of EAC’s corrective action plan with respect to the findings included in the 

prior year’s Independent Auditors’ Report, dated December 16, 2013. The status of prior year is 

presented in Section II. 

Purpose of the Report on Internal Control over Financial Reporting and the Report on Compliance 

and Other Matters 

The purpose of the Report on Internal Control over Financial Reporting and the Report on Compliance 

and Other Matters sections of this report is solely to describe the scope of our testing of internal control 

and compliance and the result of that testing, and not to provide an opinion on the effectiveness of EAC’s 

internal control or on compliance. These reports are an integral part of an audit performed in accordance 

with Government Auditing Standards in considering EAC’s internal control and compliance. 

Accordingly, these reports are not suitable for any other purpose. 

This report is intended solely for the information and use of the management of EAC, OMB, OIG and 

Congress, and is not intended to be and should not be used by anyone other than these specified parties. 

Largo, Maryland 

November 3, 2014 

29
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SECTION I Material Weakness and Noncompliance 

Anti-Deficiency Violation 

Condition: 

EAC’s controls over disbursements were not effective, to ensure disbursements were not made from a 

canceled fund. EAC made a $2,266,085 disbursement from a fiscal year (FY) 2008 fund after the fund 

was canceled on September 30, 2013. Specifically, EAC received a request for FY 2008 funds, submitted 

by a State in a letter to EAC dated September 6, 2013, certifying compliance with Help America Vote Act 

of 2002 (HAVA) Section 251 Requirements Payment funds requirements. On October 17, 2013, the 

agency sent a written request to its financial service provider, to disburse the funds to the State. The FY 

2008 fund disbursement was made on October 25, 2013, from the canceled fund, which caused EAC to be 

anti-deficient. 

Criteria: 

31 U.S. Code Section 1552, states that “On September 30th of the 5th fiscal year after the period of 

availability for obligation of a fixed appropriation accounts ends, the account shall be and any remaining 

balance (whether obligated or unobligated) in the account shall be canceled and thereafter shall not be 

available for obligation or expenditure for any purpose.” 

OMB A-11 Section 130.14 states that legitimately incurred obligations that have not been disbursed at the 

time a Treasury Appropriation Fund Symbol (TAFS) is canceled cannot be disbursed from the canceled 

obligated or unobligated balances of the canceled TAFS. 

Cause: 

The FY 2008 funds were appropriated as annual funds and expired in five years; therefore, the FY 2008 

fund were canceled on September 30, 2013 and returned to Department of Treasury. The disbursement 

was made in error from canceled funds. 

Effect: 

The disbursement was unable to be authorized from the FY 2008 authority. Therefore the payment was 

liquidated directly from Treasury’s General Fund. This caused EAC to be in violation of the AntiDeficiency Act. This also caused the agency to make an improper payment. We determined that the 

responsible officials had no willful or knowing intent to violate the Anti-deficiency Act. 

Recommendation: 

We recommend that EAC revise the agency’s internal guidance on control of funds to ensure 

disbursements are made in accordance with OMB policy and procedures and disbursements does not 

violate the Anti-deficiency Act. We also recommend that EAC’s responsible officials are counseled and 

receive additional fiscal law and program management training. In addition, we recommend that EAC 

report the Anti-Deficiency Act violation to the President and to Congress. 

30
 

 

 

 

Management’s Response 

Management generally agrees with the recommendation. EAC’s “Administrative Control of Funds 

Policy” references adherence to compliance with 31 USC 1341. To remediate circumstances that allowed 

the FY 2014 ADA violation, EAC staff will be required to retake appropriations law training in FY 2015 

from GAO, and will be instructed to review EAC’s Administrative Control of Funds Policy. 

Auditor’s Response to Management’s Response 

Management has presented a response to the finding identified in our report. We did not audit EAC’s 

response and, accordingly, we express no opinion on it. 

31
 

 

 

 

SECTION II Status of Prior Year Recommendations 

Finding 

No. Finding FY 2013 Recommendation Status 

1 Significant Uncertainties 

Relating to Transactions 

Recorded in a FY 2008 

Appropriation and Reported in 

the 2013 Financial Statements 

1. Fully document all interim decisions 

made concerning the accrual and 

subsequent disbursement of the 

approximately $2.2 million payment 

made to one grantee from 2008 

appropriations. Based upon an 

assessment of this documentation, 

strengthen internal control processes 

at EAC and, as appropriate, request 

internal controls at the service 

provider be further strengthened in 

this area. 

2. Take action, if EAC management 

officials determine, based upon 

authoritative legal guidance, that the 

2008 requirements payment 

appropriation should have been 

canceled, to meet the reporting 

requirements of the ADA and OMB 

Circular A-136. 

Open. 

EAC has not 

completed training. 

Closed. 

2 Interim Financial Statements 

Were Materially Misstated 

1. Ensure a comprehensive analysis of 

Journal Vouchers (JV) is completed 

prior to approving JVs prepared by 

service provider. Analyze the 

problems reported with JVs 

processed during 2013, and 

strengthen controls to preclude these 

errors from recurring. 

2. Develop specific information 

requirements and financial statement 

preparation checklists that the service 

provider and EAC much complete, 

including affirmation that 

documentation is sufficient and 

supports all financial statements and 

footnotes, prior to submitting 

financial statements to OMB and for 

audit. 

3. Strengthen internal controls to ensure 

that necessary supporting 

documentation for all financial 

statement line items and footnotes is 

complied, reviewed, and approved by 

EAC personnel before submitting the 

Closed. 

Closed. 

Closed. 

32
 

Finding 

No. Finding FY 2013 Recommendation Status 

financial statements for audit and to 

OMB. 

4. Strengthen the quality control process 

used by EAC to ensure that financial 

statements reports are presented to 

OMB and audits are fairly stated in 

all material respects, and in 

accordance with FASAB, USSGL 

and OMB Circular A-136. 

Closed. 

Finding 

No. Finding FY 2012 Recommendation Status 

1 Material Weaknesses Impacted 

EAC’s Ability to Prepare 2012 

Financial Statements. 

1. Develop a detailed operating 

procedure that provides guidance on 

the preparation, review and approval 

of agency financial statements, and 

requires supporting documentation to 

be compiled, reviewed and approved 

for all financial statement line items 

and footnotes prior to submission for 

audit. 

Closed. 

2 Errors and Lack of Controls 

over Journal Vouchers 

Continue. 

1. Implement an internal control process 

that provides appropriate agency 

oversight over the JVs processed by 

the current service provider. 

2. Provide training to EAC accounting 

personnel to ensure that they have the 

skills to provide adequate oversight 

of this area. 

Closed. 

Closed. 

33
East-West 

Spring, 

Response to 

ission's Financial 

1-14) 

and concur 

weakness in 

e resultant 

on October 21, 

taken to remove 

's 

A-I I Section 

u.s. Election Assistance Commission 

1335 Highway, Suite 4300 

Silver MD 20910 

To: Curtis W. Crider, Inspector General Date: November 3, 2014 

From: Alice P. Miller, Chief Operating Officer 

and Acting Executive Director 

Subject: Election Assistance Commission 

Election Assistance Comm 

(Assignment No. I-PA-EAC-O 

the Draft Audit Report of the U.S. 

Statements for Fiscal Year 2014 

We have reviewed the Draft Audit Report with the facts stated in the report and the 

results of the audit. As noted, a material internal control over financial reporting 

was identified. The agency reported th Anti-Deficiency Act violation to the President, 

Congress and the Comptroller General 2014, and we are in the funds collection 

process. Corrective actions have been canceling funds prior to expiration; a 

system control has been added; and EAC Administrative Control of Funds Policy has been 

amended to emphasize OMB Circular 130.14, and to include the Closing Act, 31 

U.S. Code 1552. Staff has been counseled, will review the revised funds control policy, and are 

scheduled to take training in December 20 14 and January 2015. 

Thank you for the opportunity to respond to the auditor's report. We also appreciate your 

cooperation and assistance, as well as the auditor's, throughout the audit process. 

34
Election Assistance Commission 

II.D. FINANCIAL STATEMENTS 

ELECTION ASSISTANCE COMMISSION

BALANCE SHEET

AS OF SEPTEMBER 30, 2014 AND 2013

(In Dollars)

2014 Restated 2013

Assets:

Intragovernmental

Fund Balance With Treasury $ 22,151,806 $ 27,774,952 

Accounts Receivable - -

Other 531,739 287,680 

Total Intragovernmental 22,683,545 28,062,632 

Accounts Receivable, Net 2,283,930 1,012 

Property, Equipment, and Software, Net 893,101 1,253,566 

Other - 17,638 

Total Assets $ 25,860,576 $ 29,334,848 

Liabilities:

Intragovernmental

Accounts Payable $ 518,507 $ 825,403 

Other 27,979 15,549 

Total Intragovernmental 546,486 840,952 

Accounts Payable 211,356 408,467 

Other 2,770,121 5,226,419 

Total Liabilities $ 3,527,963 $ 6,475,838 

Net Position:

Unexpended Appropriations $ 21,657,604 $ 21,820,863 

Cumulative Results of Operations 675,009 1,038,147 

Total Net Position $ 22,332,613 $ 22,859,010 

Total Liabilities and Net Position $ 25,860,576 $ 29,334,848 

35
Election Assistance Commission 

ELECTION ASSISTANCE COMMISSION

STATEMENT OF NET COST

FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

(In Dollars)

2014 Restated 2013

Program Costs:

Communications and Clearinghouse

Gross Costs $ 716,562 $ 662,201 

Fund and Oversee

Gross Costs $ 3,578,663 $ 14,110,016 

Research, Policy, and Programs

Gross Costs $ 1,294,209 $ 1,495,652 

Testing and Certifications

Gross Costs $ 2,273,479 $ 3,039,641 

Net Cost of Operations $ 7,862,913 # $ 19,307,510 

36
Election Assistance Commission 

ELECTION ASSISTANCE COMMISSION

STATEMENT OF CHANGES IN NET POSITION

FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

(In Dollars)

2014 Restated 2013

Cumulative Results of Operations:

Beginning Balances $ 1,038,147 $ 705,470 

Beginning Balances, as Adjusted 1,038,147 705,470 

Budgetary Financing Sources:

Appropriations Used 7,276,848 19,459,811 

Imputed Financing Sources 222,927 180,376 

Total Financing Sources 7,499,775 19,640,187 

Net Cost of Operations (7,862,913) (19,307,510)

Net Change (363,138) 332,677 

Cumulative Results of Operations $ 675,009 $ 1,038,147 

Unexpended Appropriations:

Beginning Balances $ 21,820,863 $ 37,668,292 

Beginning Balances, as Adjusted 21,820,863 37,668,292 

Budgetary Financing Sources:

Appropriations Received 10,000,000 11,500,000 

Appropriations Transferred In/Out (1,900,000) (2,744,500)

Other Adjustments (986,411) (5,143,118)

Appropriations Used (7,276,848) (19,459,811)

Total Budgetary Financing Sources (163,259) (15,847,429)

Total Unexpended Appropriations $ 21,657,604 $ 21,820,863 

Net Position $ 22,332,613 $ 22,859,010 

37
Election Assistance Commission 

ELECTION ASSISTANCE COMMISSION

STATEMENT OF BUDGETARY RESOURCES

FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

(In Dollars)

2014 Restated 2013

Budgetary Resources:

Unobligated Balance Brought Forward, October 1 $ 11,873,513 $ 11,956,227 

 Unobligated Balance Brought Forward, October 1, as adjusted 11,873,513 11,956,227 

Recoveries of Prior Year Unpaid Obligations 955,053 3,586,464 

Other changes in unobligated balance (986,412) (4,679,940)

Unobligated balance from prior year budget authority, net 11,842,154 10,862,751 

Appropriations 8,100,000 8,292,322 

Spending authority from offsetting collections 1,012 784,656 

Total Budgetary Resources $ 19,943,166 $ 19,939,729 

Status of Budgetary Resources:

Obligations Incurred $ 6,466,742 $ 8,066,216 

Unobligated balance, end of year:

 Apportioned 4,241,385 3,340,944 

 Exempt from apportionment - -

 Unapportioned 9,235,039 8,532,569 

Total unobligated balance, end of year 13,476,424 11,873,513 

Total Budgetary Resources $ 19,943,166 $ 19,939,729 

Change in Obligated Balance

 Unpaid Obligations:

Unpaid Obligations, Brought Forward, October 1 $ 15,901,439 $ 26,534,702 

Obligations Incurred 6,466,742 8,066,216 

Outlays (gross) (12,737,746) (15,113,015)

Recoveries of Prior Year Unpaid Obligations (955,053) (3,586,464)

Unpaid Obligations, End of Year (Gross) 8,675,382 15,901,439 

Uncollected payments:

Uncollected Customer Payments, Federal Sources, Brought Forward, October 1 - (20,000)

Change in Uncollected Customer Payments, Federal Sources - 20,000 

Uncollected Customer Payments, Federal Sources, End of Year - -

Memorandum entries:

Obligated Balance, Start of Year $ 15,901,439 $ 26,514,702 

Obligated Balance, End of Year $ 8,675,382 $ 15,901,439 

Budget Authority and Outlays, Net:

Budget authority, gross $ 8,101,012 $ 9,076,978 

Actual offsetting collections (1,012) (804,656)

Change in uncollected customer payments from Federal sources - 20,000 

Budget Authority, net $ 8,100,000 $ 8,292,322 

Outlays, gross $ 12,737,746 $ 15,113,015 

Actual offsetting collections (1,012) (804,656)

Outlays, net 12,736,734 14,308,359 

Distributed Offsetting Receipts - -

Agency outlays, net $ 12,736,734 $ 14,308,359 

38
Election Assistance Commission 

ELECTION ASSISTANCE COMMISSION

STATEMENT OF CUSTODIAL ACTIVITY

FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

(In Dollars)

2014 Restated 2013

Revenue Activity:

Sources of Cash Collections:

Individual Income and FICA/SECA Taxes $ - $ -

Corporate Income Taxes

Excise Taxes

Estate and Gift Taxes

Federal Unemployment Taxes

Customs Duties

Miscellaneous 1,265 -

Total Cash Collections 1,265 -

Accrual Adjustments 2,266,085 -

Total Custodial Revenue 2,267,350 -

Disposition of Collections:

Transferred to Others (by Recipient) 1,265 -

Increase/(Decrease) in Amounts Yet to be Transferred 2,266,085 -

Refunds and Other Payments - -

Retained by the Reporting Entity - -

Net Custodial Activity $ - $ -

39
Election Assistance Commission 

II.E. NOTES TO THE FINANCIAL STATEMENTS 

NOTE 1. SUMMARY OF SIGNIFICANT 

ACCOUNTING POLICIES 

A. Reporting Entity 

U.S. Election Assistance Commission (EAC) 

is an independent, bipartisan commission 

charged with developing guidance to meet the 

Help America Vote Act (HAVA) 

requirements, adopting voluntary voting 

system guidelines, and serving as a national 

clearinghouse of information about election 

administration. EAC also accredits testing 

laboratories and certifies voting systems, as 

well as audits the use of HAVA funds. 

Other responsibilities include distributing and 

monitoring HAVA funds provided to States 

and other grantees; and maintaining the 

national mail voter registration form developed 

in accordance with the National Voter 

Registration Act of 1993. 

HAVA established the Standards Board and 

the Board of Advisors to advise EAC. The law 

also established the Technical Guidelines 

Development Committee to assist EAC in the 

development of voluntary voting system 

guidelines. 

By statute four EAC commissioners are 

appointed by the president and confirmed by 

the United States Senate. The Agency does 

not have commissioners at this time. EAC is 

required to submit an annual report to 

Congress as well as testify periodically about 

HAVA progress and related issues. The 

commission also holds public meetings and 

hearings to inform the public about its progress 

and activities. 

The EAC reporting entity is comprised of 

General Funds. 

General Funds are accounts used to record 

financial transactions arising under 

congressional appropriations or other 

authorizations to spend general revenues. 

EAC manages Salaries and Expenses, Election 

Reform Program and Election Data Collection 

Grants General Fund accounts. 

B. Basis of Presentation 

The financial statements have been prepared to 

report the financial position and results of 

operations of EAC. The Balance Sheet 

presents the financial position of the agency. 

The Statement of Net Cost presents the 

agency’s operating results; the Statement of 

Changes in Net Position displays the changes 

in the agency’s equity accounts. The Statement 

of Budgetary Resources presents the sources, 

status, and uses of the agency’s resources and 

follows the rules for the Budget of the United 

States Government.

The statements are a requirement of the Chief 

Financial Officers Act of 1990, the 

Government Management Reform Act of 1994 

and the Accountability of Tax Dollars Act of 

2002. They have been prepared from, and are 

fully supported by, the books and records of 

EAC in accordance with the hierarchy of 

accounting principles generally accepted in the 

United States of America, standards issued by 

the Federal Accounting Standards Advisory 

Board (FASAB), Office of Management and 

Budget (OMB) Circular A-136, Financial 

Reporting Requirements, as amended, and 

EAC accounting policies which are 

summarized in this note. These statements, 

with the exception of the Statement of 

Budgetary Resources, are different from 

financial management reports, which are also 

prepared pursuant to OMB directives that are 

used to monitor and control EAC’s use of 

budgetary resources. The financial statements 

40
Election Assistance Commission 

and associated notes are presented on a 

comparative basis. Unless specified otherwise, 

all amounts are presented in dollars. 

C. Basis of Accounting 

Transactions are recorded on both an accrual 

accounting basis and a budgetary basis. Under 

the accrual method, revenues are recognized 

when earned, and expenses are recognized 

when a liability is incurred, without regard to 

receipt or payment of cash. Budgetary 

accounting facilitates compliance with legal 

requirements on the use of federal funds. 

D. Fund Balance with Treasury 

Fund Balance with Treasury is the aggregate 

amount of the EAC’s funds with Treasury in 

expenditure accounts. Appropriated funds 

recorded in expenditure accounts are available 

to pay current liabilities and finance authorized 

purchases. 

The EAC does not maintain bank accounts of 

its own, has no disbursing authority, and does 

not maintain cash held outside of Treasury. 

Treasury disburses funds for the agency on 

demand. 

E. Accounts Receivable 

Accounts receivable consists of amounts owed 

to EAC by other Federal agencies and the 

general public. EAC has made advance 

payments for services from other Federal 

Agencies. When the period of performance for 

these services expires without fulfillment of 

the contract or grant, a receivable is recorded. 

Amounts due from Federal agencies are 

considered fully collectible. Accounts 

receivable from the public include 

reimbursements from employees. An 

allowance for uncollectible accounts 

receivable from the public is established when, 

based upon a review of outstanding accounts 

and the failure of all collection efforts, 

management determines that collection is 

unlikely to occur considering the debtor’s 

ability to pay. 

F. Property, Equipment, and Software 

Property, equipment and software represent 

furniture, fixtures, equipment, and information 

technology hardware and software which are 

recorded at original acquisition cost and are 

depreciated or amortized using the straight-line 

method over their estimated useful lives. 

Major alterations and renovations are 

capitalized, while maintenance and repair costs 

are expensed as incurred. EAC's capitalization 

threshold varies based on the property 

classification for assets with a useful life of 2 

or more years. For general property and 

equipment, the capitalization threshold is 

$10,000 with a bulk purchase policy of 

$100,000. For leasehold improvements and 

software, the capitalization threshold is 

$25,000. 

Property, equipment, and software acquisitions 

that do not meet the capitalization criteria are 

expensed upon receipt. Applicable standard 

governmental guidelines regulate the disposal 

and convertibility of agency property, 

equipment, and software. The useful life 

classifications for capitalized assets are as 

follows: 

Description Useful Life (years)

Leasehold Improvements 4 - 7

Office Furniture 5

Computer Equipment 5

Office Equipment 5

Software 5

G. Advances and Prepaid Charges 

On occasion the EAC prepays amounts in 

anticipation of receiving future benefits. 

Although a payment has been made, an 

expense is not recorded until goods have been 

received or services have been performed. The 

EAC has prepayments and advances with nongovernmental, as well as governmental, 

vendors. 

41
Election Assistance Commission 

H. Liabilities

Liabilities represent the amount of funds likely 

to be paid by the EAC as a result of 

transactions or events that have already 

occurred. 

EAC reports its liabilities under two 

categories, Intragovernmental and With the 

Public. Intragovernmental liabilities represent 

funds owed to another government agency. 

Liabilities With the Public represents funds 

owed to any entity or person that is not a 

federal agency, including private sector firms 

and federal employees. Each of these 

categories may include liabilities that are 

covered by budgetary resources and liabilities 

not covered by budgetary resources. 

Liabilities covered by budgetary resources are 

liabilities funded by a current appropriation or 

other funding source. These consist of 

accounts payable and accrued payroll and 

benefits. Accounts payable represent amounts 

owed to another entity for goods ordered and 

received and for services rendered except for 

employees. Accrued payroll and benefits 

represent payroll costs earned by employees 

during the fiscal year which are not paid until 

the next fiscal year. EAC also accrues 

liabilities for Section 251 grants, research and 

development grants for such items as 

improving voting technology and processes for 

injured military personnel, and logic and 

accuracy testing grants. See the required 

supplemental information for a more detailed 

explanation of the grants. 

Liabilities not covered by budgetary resources 

are liabilities that are not funded by any 

current appropriation or other funding source. 

These liabilities consist of accrued annual 

leave. 

I. Annual, Sick, and Other Leave 

Annual leave is accrued as it is earned, and the 

accrual is reduced as leave is taken. The 

balance in the accrued leave account is 

adjusted to reflect current pay rates. Liabilities 

associated with other types of vested leave, 

including compensatory, restored leave, and 

sick leave in certain circumstances, are accrued 

at year-end, based on latest pay rates and 

unused hours of leave. Funding will be 

obtained from future financing sources to the 

extent that current or prior year appropriations 

are not available to fund annual and other 

types of vested leave earned but not taken. 

Nonvested leave is expensed when used. Any 

liability for sick leave that is accrued but not 

taken by a Civil Service Retirement System 

(CSRS)-covered employee is transferred to the 

Office of Personnel Management (OPM) upon 

the retirement of that individual. Credit is 

given for sick leave balances in the 

computation of annuities upon the retirement 

of Federal Employees Retirement System 

(FERS)-covered employees effective at 50% 

beginning FY 2010 and 100% in 2014. 

J. Accrued and Actuarial Workers’ 

Compensation 

The Federal Employees' Compensation Act 

(FECA) administered by the U.S. Department 

of Labor (DOL) addresses all claims brought 

by the EAC employees for on-the-job injuries. 

The DOL bills each agency annually as its 

claims are paid, but payment of these bills is 

deferred for two years to allow for funding 

through the budget process. Similarly, 

employees that the EAC terminates without 

cause may receive unemployment 

compensation benefits under the 

unemployment insurance program also 

administered by the DOL, which bills each 

agency quarterly for paid claims. Future 

appropriations will be used for the 

reimbursement to DOL. 

K. Retirement Plans 

EAC employees participate in either the CSRS 

or the FERS. The employees who participate 

in CSRS are beneficiaries of EAC matching 

contribution, equal to seven percent of pay, 

distributed to their annuity account in the Civil 

Service Retirement and Disability Fund. 

Prior to December 31, 1983, all employees 

were covered under the CSRS program. From 

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January 1, 1984 through December 31, 1986, 

employees had the option of remaining under 

CSRS or joining FERS and Social Security. 

Employees hired as of January 1, 1987 are 

automatically covered by the FERS program. 

Both CSRS and FERS employees may 

participate in the federal Thrift Savings Plan 

(TSP). FERS employees receive an automatic 

agency contribution equal to one percent of 

pay and EAC matches any employee 

contribution up to an additional four percent of 

pay. For FERS participants, EAC also 

contributes the employer’s matching share of 

Social Security. 

FERS employees and certain CSRS 

reinstatement employees are eligible to 

participate in the Social Security program after 

retirement. In these instances, EAC remits the 

employer’s share of the required contribution.

EAC recognizes the imputed cost of pension 

and other retirement benefits during the 

employees’ active years of service. OPM 

actuaries determine pension cost factors by 

calculating the value of pension benefits 

expected to be paid in the future and 

communicate these factors to EAC for current 

period expense reporting. OPM also provides 

information regarding the full cost of health 

and life insurance benefits. EAC recognized 

the offsetting revenue as imputed financing 

sources to the extent these expenses will be 

paid by OPM. 

EAC does not report on its financial statements 

information pertaining to the retirement plans 

covering its employees. Reporting amounts 

such as plan assets, accumulated plan benefits, 

and related unfunded liabilities, if any, is the 

responsibility of the OPM, as the 

administrator. 

L. Other Post-Employment Benefits 

EAC employees eligible to participate in the 

Federal Employees' Health Benefits Plan 

(FEHBP) and the Federal Employees' Group 

Life Insurance Program (FEGLIP) may 

continue to participate in these programs after 

their retirement. The OPM has provided the 

EAC with certain cost factors that estimate the 

true cost of providing the post-retirement 

benefit to current employees. The EAC 

recognizes a current cost for these and Other 

Retirement Benefits (ORB) at the time the 

employee's services are rendered. The ORB 

expense is financed by OPM, and offset by the 

EAC through the recognition of an imputed 

financing source. 

M. Use of Estimates 

The preparation of the accompanying financial 

statements in accordance with generally 

accepted accounting principles requires 

management to make certain estimates and 

assumptions that affect the reported amounts 

of assets, liabilities, revenues, and expenses. 

Actual results could differ from those 

estimates. 

N. Imputed Costs/Financing Sources 

Federal Government entities often receive 

goods and services from other Federal 

Government entities without reimbursing the 

providing entity for all the related costs. In 

addition, Federal Government entities also 

incur costs that are paid in total or in part by 

other entities. An imputed financing source is 

recognized by the receiving entity for costs 

that are paid by other entities. EAC 

recognized imputed costs and financing 

sources in fiscal years 2014 and 2013 to the 

extent directed by accounting standards. 

O. Grants 

The EAC administers and oversees the grant 

making process in connection with federal 

Requirement Payments and grants made to 

recipient organizations and the HAVA. As 

Requirement Payments and grants are 

awarded, they are recorded as obligations and 

represent uses of budgetary resources. 

Payments made under the grant awards for 

expenditures already incurred by the recipients 

are fully expended and are included in the 

statement of net costs. Grant awards made to 

grantees in advance of expenditures are 

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recorded as advances and are included in the 

balance sheet. 

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NOTE 2. FUND BALANCE WITH TREASURY 

Fund balance with Treasury account balances as of September 30, 2014 and 2013, were as 

follows: 

2014 2013

Fund Balances:

Appropriated Funds $22,151,806 $27,774,952 

Total $22,151,806 $27,774,952 

Status of Fund Balance with Treasury:

Unobligated Balance

 Available $ 4,241,385 $ 3,340,944 

 Unavailable 9,235,039 8,532,569 

Obligated Balance Not Yet Disbursed 8,675,382 15,901,439 

Total $22,151,806 $27,774,952 

No discrepancies exist between the Fund Balance reflected on the Balance Sheet and the balances 

in the Treasury accounts. 

The available unobligated fund balances represent the current-period amount available for 

obligation or commitment. 

The unavailable unobligated fund balances represent the amount of appropriations for which the 

period of availability for obligation has expired. These balances are available for upward 

adjustments of obligations incurred only during the period for which the appropriation was 

available for obligation or for paying claims attributable to the appropriations. 

The obligated balance not yet disbursed includes accounts payable, accrued expenses, and 

undelivered orders that have reduced unexpended appropriations but have not yet decreased the 

fund balance on hand (see also Note 12).

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NOTE 3. ACCOUNTS RECEIVABLE 

Accounts receivable balances as of September 30, 2014 and 2013, were as follows: 

2014 2013

Intragovernmental

Accounts Receivable $ - $ -

With the Public

Accounts Receivable 2,283,723 -

Employee Receivables 207 1,012

Total Accounts Receivable $2,283,930 $1,012

The accounts receivable is primarily made up of a receivable for $2,266,085 due to an improper 

payment (see note 15). The receivable is classified as a non-entity asset. A non-entity asset is one 

that is not available for use in its operations. 

NOTE 4. ADVANCES AND PREPAYMENTS 

Advances and Prepayments balances as of September 30, 2014 and 2013, were as follows: 

2014 2013

Intragovernmental

Advances and Prepayments $531,739 $287,680

With the Public

Advances and Prepayments - 17,638

Total Other Assets $531,739 $305,318

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NOTE 5. PROPERTY, EQUIPMENT, AND SOFTWARE

Schedule of Property, Equipment, and Software as of September 30, 2014 

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Leasehold Improvements $ 771,037 $ 697,175 $ 73,862

Furniture & Equipment 902,626 638,650 263,976

Software 172,721 127,918 44,803

Construction-in-Progress 434,793 N/A 434,793

Software-in-Development 75,667 N/A 75,667

Total $ 2,356,844 $ 1,463,743 $ 893,101

Schedule of Property, Equipment, and Software as of September 30, 2013 

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Leasehold Improvements $ 675,216 $ 590,814 $ 84,402

Furniture & Equipment 1,389,721 886,350 503,371

Software 172,721 93,375 79,346

Construction-in-Progress 530,614 N/A 530,614

Software-in-Development 55,833 N/A 55,833

Total $ 2,824,105 $ 1,570,539 $1,253,566

Depreciation expense was $294,705 and $406,668 for the twelve months ending September 30, 

2014 and 2013, respectively. 

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NOTE 6. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES 

The liabilities for EAC as of September 30, 2014 and 2013, include liabilities not covered by 

budgetary resources. Congressional action is needed before budgetary resources can be provided. 

Although future appropriations to fund these liabilities are likely and anticipated, it is not certain 

that appropriations will be enacted to fund these liabilities. 

2014 2013

Intragovernmental – FECA $ 234 $ 1,057

Intragovernmental – Unemployment Insurance 5,536 -

Unfunded Leave 230,166 215,345

Total Liabilities Not Covered by Budgetary Resources $ 235,936 $ 216,402

Total Liabilities Covered by Budgetary Resources 3,292,027 6,259,436

Total Liabilities $3,527,963 $6,475,838

FECA liabilities represent the unfunded liability for actual workers compensation claims on 

EAC’s behalf and payable to the DOL. 

Unfunded leave represents a liability for earned leave and is reduced when leave is taken. The 

balance in the accrued annual leave account is reviewed quarterly and adjusted as needed to 

accurately reflect the liability at current pay rates and leave balances. Accrued annual leave is 

paid from future funding sources and, accordingly, is reflected as a liability not covered by 

budgetary resources. Sick and other leave is expensed as taken. 

NOTE 7. OTHER LIABILITIES

Other liabilities account balances as of September 30, 2014 were as follows: 

Current Non Current Total

Intragovernmental

FECA Liability $ 738 $ - $ 738

Unemployment Insurance Liability 10,921 - 10,921

Payroll Taxes Payable 16,320 - 16,320

Total Intragovernmental Other Liabilities $ 27,979 $ - $ 27,979

With the Public

 Payroll Taxes Payable $ 2,398 $ - $ 2,398

 Accrued Funded Payroll and Leave 67,751 - 67,751

 Unfunded Leave 230,166 - 230,166

 Custodial Liability 2,266,085 - 2,266,085

 Other Liabilities w/related Budgetary Obligations 203,721 - 203,721

Total Public Other Liabilities $2,770,121 $ - $2,770,121

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Other liabilities account balances as of September 30, 2013 were as follows: 

Current Non Current Total

Intragovernmental

FECA Liability $ 1,795 $ - $ 1,795

Payroll Taxes Payable 13,754 - 13,754

Total Intragovernmental Other Liabilities $ 15,549 $ - $ 15,549

With the Public

 Payroll Taxes Payable $ 2,247 $ - $ 2,247

 Accrued Funded Payroll and Leave 62,756 - 62,756

 Unfunded Leave 215,345 - 215,345

 Other Liabilities w/related Budgetary Obligations 4,946,071 - 4,946,071

Total Public Other Liabilities $5,226,419 $ - $5,226,419

NOTE 8. LEASES

EAC has no capital leases. EAC relocated from its headquarters office located at 1201 New York 

Avenue NW, Suite 300, Washington, DC, on November 1, 2013. EAC also ended the lease for 

additional space at 1225 New York Avenue NW, Washington, DC, at the same time. EAC 

entered into a new lease for its headquarters office located at 1335 East-West Highway, Silver 

Spring, MD, which expires on or around November 1, 2018. 

Scheduled of Future Lease Payments 

Fiscal Year Building Totals

2015 $230,432 $ 230,432

2016 232,198 232,198

2017 234,002 234,002

2018 235,842 235,842

2019 19,675 19,675

Total Future Payments $952,149 $ 952,149 

The operating lease amount does not include estimated payments for leases with annual renewal 

options. 

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NOTE 9. INTRAGOVERNMENTAL COSTS AND EXCHANGE REVENUE 

Intragovernmental costs and revenue represent exchange transactions between EAC and other 

federal government entities, and are in contrast to those with non-federal entities (the public). 

Such costs and revenue are summarized as follows: 

2014 2013

Communications and Clearinghouse

 Intragovernmental Costs $ 199,678 $ 103,647

 Public Costs 516,884 558,554

 Total Costs 716,562 662,201

Fund and Oversee

 Intragovernmental Costs $ 997,236 $ 2,467,686

 Public Costs 2,581,427 11,642,330

 Total Costs 3,578,663 14,110,016

Research, Policy, and Programs

 Intragovernmental Costs $ 360,646 $ 234,097

 Public Costs 933,563 1,261,555

 Total Costs 1,294,209 1,495,652

Testing and Certification

 Intragovernmental Costs $ 633,532 $ 475,761

 Public Costs 1,639,947 2,563,880

 Total Costs 2,273,479 3,039,641

Total Intragovernmental costs 2,191,092 3,281,191

Total Public costs 5,671,821 16,026,319

Total Net Cost $ 7,862,913 $19,307,510

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Election Assistance Commission 

NOTE 10. BUDGETARY RESOURCE COMPARISONS TO THE BUDGET OF THE 

UNITED STATES GOVERNMENT 

The President’s Budget that will include fiscal year 2014 actual budgetary execution information 

has not yet been published. The President’s Budget is scheduled for publication in February 2015 

and can be found at the OMB Web site: http://www.whitehouse.gov/omb/. The 2015 Budget of 

the United States Government, with the "Actual" column completed for 2013, has been 

reconciled to the Statement of Budgetary Resources and there were no material differences. 

The budget that includes the fiscal year 2013 actual execution information is as follows: 

Budgetary Obligations Net

FY2013 Resources Incurred Outlays

Statement of Budgetary Resources $19,939,729 $ 8,066,216 $14,308,359

Spending Authority from Offsetting

 Collections (784,656)

Unobligated Balance Not Available (8,532,569)

Rounding (1,622,504) (66,216) (308,359)

Budget of the U.S. Government $9,000,000 $8,000,000 $14,000,000

NOTE 11. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED 

Obligations incurred and reported in the Statement of Budgetary Resources in 2014 and 2013 

consisted of the following:

2014 2013

Direct Obligations, Category B $6,466,742 $8,066,216

Total Obligations Incurred $6,466,742 $8,066,216

Category B apportionments typically distribute budgetary resources by activities, projects, objects 

or a combination of these categories.

NOTE 12. UNDELIVERED ORDERS AT THE END OF THE PERIOD 

For the twelve months ended September 30, 2014 and 2013, budgetary resources obligated for 

undelivered orders amounted to $8,181,178 and $9,947,320, respectively.

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NOTE 13. RECONCILIATION OF NET COST OF OPERATIONS TO BUDGET 

EAC has reconciled its budgetary obligations and non-budgetary resources available to its net 

cost of operations. 

2014 2013

 Obligations Incurred $6,466,742 $ 8,066,216

 Spending Authority from Offsetting Collections and Recoveries (956,065) (4,371,120)

 Obligations Net of Offsetting Collections and Recoveries 5,510,677 3,695,096

 Imputed Financing from Costs Absorbed by Others 222,927 180,376

 Net Other Resources Used to Finance Activities 222,927 180,376

 5,733,604 3,875,472

 1,745,486 15,025,370

 7,479,090 18,900,842

 383,823 406,668

$7,862,913 $19,307,510

 Total Resources Used to Finance the Net Cost of Operations 

Resources Used to Finance Activities

Budgetary Resources Obligated

Other Resources

 Total Resources Used to Finance Activities 

Resources Used to Finance Items Not Part of the 

Net Cost of Operations

 Total Resources Used to Finance Items Not Part of the Net 

 Cost of Operations 

Net Cost of Operations

Components of the Net Cost of Operations That 

Will Not Require or Generate Resources in the 

Current Period

 Total Components of Net Cost of Operations That Will Not 

 Require or Generate Resources in the Current Period 

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NOTE 14. REQUIREMENT PAYMENTS AND GRANT PROGRAMS 

The EAC Requirements Payments and Grant programs are funded through annual appropriations. 

The largest of the grant programs is the Help American Vote Act (HAVA) Section 251 

Requirements Payments to the states to help them meet the Title III requirements of HAVA. The 

EAC periodically receives additional grant money to fund grant programs such as Research of 

Voting Technology Improvements, College Poll Worker and Mock Election grants. 

2014 2013

FY 2009 Section 251 Requirement Payments 2,070,509 -

FY 2010 Section 251 Requirement Payments 1,449,356 4,292,871

FY 2011 Section 251 Requirement Payments 172,994 221,853

College Poll Worker Grants - 53,377

Accessible Voting Technology 2,429,159 2,809,602

Logic and Accuracy Grant Program 236,499 485,600

Mock Election Grants - 17,118

Net Cost of Operations $6,358,517 $7,880,421

 

NOTE 15. IMPROPER PAYMENT 

On October 26, 2013 funds were improperly disbursed on behalf of EAC in the amount 

of $2,266,085. The supporting payment request was initiated in September and was 

intended to satisfy a valid grant obligation from Treasury Account Symbol 95 8 1651, 

Election Reform Programs (FY08 appropriation). In accordance with the current account 

closing procedures, authority in the FY08 appropriation cancelled on September 30, 

2013. Due to the cancellation of the FY08 appropriation, the disbursement made in 

October was unfunded and therefore made from the General Fund of the Treasury. 

The improper payment is a violation of the Anti-Deficiency Act (ADA). EAC notified 

OMB and GAO of the violation, as required, and is actively pursuing corrective actions, 

including efforts to collect from the grantee. In the event that EAC recovers any balance 

from the grantee, these collections would be deposited to the General Fund of the 

Treasury. It is unclear whether EAC will recover the payment from the recipient. 

The improper payment remains unclassified in the Fund Balance with Treasury reporting 

process, and therefore is a Statement of Difference for EAC’s agency location code. The 

Statement of Difference will remain until the improper payment is classified. 

Since the improper payment was made from the General Fund and not funds available to 

EAC in FY2014, the disbursement transaction is properly classified as a custodial 

receivable and liability on the Balance Sheet and custodial revenue on the Statement of 

Custodial Activity. 

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Election Assistance Commission 

NOTE 16. RESTATEMENT of FY13 FINANCIAL STATEMENTS 

EAC’s Balance Sheet, Statement of Net Cost, Statement of Changes in Net Position and 

Statement of Budgetary Resources have been restated to correct the financial reporting 

for the following reasons: 

1. FY 2013 financial statements incorrectly reflected $3,186,085 in Fund Balance with 

Treasury: $2,266,085 in a single expenditure, and $920,000 in obligations to four 

grantees. 

2. The $3,186,085 originated from a one year FY 2008 appropriation, and was therefore 

warranted with Treasury and apportioned with the Office of Management and Budget as 

one year funds (95 08 1650, with the “08” representing single year funds available for 

five years). Additionally, EAC provided guidance in FY 2009 to its grantees that the 

funds were available to them through September 30, 2013. 

3. EAC approved the disbursement of the $2,266,085 funds on September 30, 2013, and 

then requested disbursement of the funds after two forms, not material to the approval of 

the disbursement, were received from the grantee on October 1 and 2, 2013. The 

disbursement request occurred on October 17, 2014, the first day the agency was open 

after a partial government shutdown. 

4. The agency’s contractual financial service provider (FSP) disbursed the funds that 

canceled the previous month, and it is not clear if the funds had not been removed from 

the books timely or if the financial system lacked controls to stop the disbursement. The 

disbursement was therefore made from the U.S. Department of Treasury from the 

General Fund because the funds were no longer available to EAC. 

5. EAC, working with its FSP, began to take steps at the end of FY 2014 to retrieve the 

funds from the grantee, and return them to the Treasury General Fund. The FY 2008 

obligations totaling $920,000 were removed. 

6. The restatement reflects the improper payment as unclassified in the Fund Balance 

with Treasury. 

See chart below for overview of the restatement: 

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Financial Statement Adjustment Lines

Previously

Reported Amount

Adjustment 

Amount

 Restatement 

Amount Explanation for Adjustment

Balance Sheet Fund Balance With Treasury $ 30,961,037.00 $ (3,186,085.00) $ 27,774,952.00 Included cancelled FY08 funds in error

Balance Sheet Total Intragovernmental $ 31,248,717.00 $ (3,186,085.00) $ 28,062,632.00 Cumulative of error listed above

Balance Sheet Total Assets $ 32,520,933.00 $ (3,186,085.00) $ 29,334,848.00 Cumulative of error listed above

Balance Sheet Liabilities, Other $ 7,492,504.00 $ (2,266,085.00) $ 5,226,419.00 Included accrued liability for cancelled FY08 fund in error

Balance Sheet Total Liabilities $ 8,741,923.00 $ (2,266,085.00) $ 6,475,838.00 Cumulative of error listed above

Balance Sheet Unexpended Approprations $ 22,740,863.00 $ (920,000.00) $ 21,820,863.00 Included appropriations for cancelled FY08 fund in error

Balance Sheet Total Net Position $ 23,779,010.00 $ (920,000.00) $ 22,859,010.00 Cumulative of error listed above

Balance Sheet Total Liabilities and Net Position $ 32,520,933.00 $ (3,186,085.00) $ 29,334,848.00 Cumulative of liabilities and net position errors listed above

Statement of Net Cost Gross Costs, Fund and Oversee $ 16,376,101.00 $ (2,266,085.00) $ 14,110,016.00 Included accrued expense for cancelled FY08 fund in error

Statement of Net Cost Net Cost of Operations $ 21,573,595.00 $ (2,266,085.00) $ 19,307,510.00 Cumulative of error listed above

Statement of 

Changes in Net Position Approprations Used $ 21,725,896.00 $ (2,266,085.00) $ 19,459,811.00 Included expense accrual for cancelled FY08 fund in error

Statement of 

Changes in Net Position Total Financing Sources $ 21,906,272.00 $ (2,266,085.00) $ 19,640,187.00 Cumulative of error listed above

Statement of 

Changes in Net Position Net Cost of Operations $ (21,573,595.00) $ 2,266,085.00 $ (19,307,510.00) Cumulative of error listed above

Statement of 

Changes in Net Position Other Adjustments $ (1,957,033.00) $ (3,186,085.00) $ (5,143,118.00) Omitted in error the adjustment to cancel FY08 fund

Statement of 

Changes in Net Position Approprations Used $ (21,725,896.00) $ 2,266,085.00 $ (19,459,811.00) Included expense accrual for cancelled FY08 fund in error

Statement of 

Changes in Net Position Total Budgetary Financing Sources $ (14,927,429.00) $ (920,000.00) $ (15,847,429.00) Cumulative of error to cancel FY08 fund and expense accrual error

Statement of 

Changes in Net Position Total Unexpended Approprations $ 22,740,863.00 $ (920,000.00) $ 21,820,863.00 Cumulative of errors listed above

Statement of 

Changes in Net Position Net Position $ 23,779,010.00 $ (920,000.00) $ 22,859,010.00 Cumulative of errors listed above

Statement of 

Budgetary

Resources Recoveries of Prior Year Unpaid Obligations $ 400,379.00 $ 3,186,085.00 $ 3,586,464.00 Omitted recoveries in error for cancelled FY08 obligations

Statement of 

Budgetary

Resources Other Changes in Unobligated Balance $ (1,493,855.00) $ (3,186,085.00) $ (4,679,940.00) Omitted in error the adjustment to cancel FY08 fund

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Financial Statement Adjustment Lines

Previously

Reported Amount

Adjustment 

Amount

 Restatement 

Amount Explanation for Adjustment

Statement of 

Budgetary

Resources Recoveries of Prior Year Unpaid Obligations $ (400,379.00) $ (3,186,085.00) $ (3,586,464.00) Omitted recoveries in error for cancelled FY08 obligations

Statement of 

Budgetary

Resources Unpaid Obligations, End of Year (Gross) $ 19,087,524.00 $ (3,186,085.00) $ 15,901,439.00 Cumulative of error in recoveries listed above

Statement of 

Budgetary

Resources Obligated Balance, Start of Year $ 26,494,702.00 $ 20,000.00 $ 26,514,702.00 Subtracted the offsetting collections double in error

Statement of 

Budgetary

Resources Obligated Balance, End of Year $ 19,087,524.00 $ (3,186,085.00) $ 15,901,439.00 Included obligations for the cancelled FY08 fund in error

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Election Assistance Commission 

II.F. REQUIRED SUPPLEMENTARY STEWARDSHIP INFORMATION 

(UNAUDITED)

Non-Federal Physical Property

Stewardship investments are substantial investments made by the Federal Government for the 

benefit of the nation but are not physical assets owned by the Federal Government. When 

incurred, they are treated as expenses in determining the net cost of operations. However, these 

items merit special treatment so that users of Federal financial reports know the extent of 

investments that are made for long-term benefit. Such investments are measured in terms of 

expenses incurred for non-Federal physical property, human capital, and research and 

development. In October 2002, Congress passed the Help America Vote Act (HAVA). A major 

provision of HAVA, Title III Uniform and Nondiscriminatory Election Technology and 

Administration Requirements, sets forth requirements for each voting system used in an election 

for Federal office. This chart shows expenditures using Federal HAVA funds for voting and 

voting-related equipment, as well as applied voting research by States and other agency grantees. 

Amounts are reported in the fiscal year proceeding the year the expense was incurred. 

Type FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Sect. 102 

Funds $ 19,905,709 $ 36,838,905 $ (163,130) $ 0 $ 0 $ 0

Sect. 251 

Funds 262,018,224 143,247,989

 

105,087,464 

 

39,863,820 

 

42,571,196 41,936,200

Data Collection 

Grants 447,650 167 (235) 130 198 N/A

Total $282,371,583 $180,087,061 $104,192,794 $108,662,412 $24,955,783 $41,936,200

Section 102 Funds. Section 102 funds were disbursed to States for the primary purpose of 

replacing punch card or lever voting machines. As such, Section 102 funds have been used to 

purchase physical property. 

Section 251 Funds. Section 251 requirements payments are to be used to meet the requirements 

of Title III Uniform and Nondiscriminatory Election Technology and Administration 

Requirements and improve the quality of federal elections. As such, Requirements Payments 

have been used in part to purchase physical property but also to provide funds to States to carry 

out other activities to improve administration of elections. 

Data Collection Grants. In Fiscal Year 2008, EAC awarded $10.0 million in Election Data 

Collection Grants to five States. These funds were to be used to improve the collection of 

precinct-level data relating to the November 2008 elections. Based on budgetary information 

supplied by each State, Federal physical property purchased with these funds is presented above. 

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Research and Development

 

The EAC has two research and development initiatives that were completed in 2014. These 

initiatives provided funds to support the search for new or improved election voting technology 

that increases the accessibility and 

accuracy of voting for all citizens. Costs 

incurred on these initiatives are included 

in the calculation of net costs. 

Accessible Voting Disability 

Technology Initiative

The U.S. Election Assistance Commission has made available up to $7,000,000 in grant funds 

for a three-year grant to fund research to identify and develop technological and administrative 

solutions that help ensure all citizens can vote privately and independently, a requirement of the 

Help America Vote Act (HAVA) of 2002 (42 U.S.C. §15441). This initiative will support 

research and development activities to increase the accessibility of new, existing, and emerging 

technological solutions in such areas as assistive technologies, interoperability, and design of 

voting systems. 

Pre-Election Logic and Accuracy and Post-Election Audit Initiative

The U.S. Election Assistance Commission has awarded $1.4 million in grant funds to develop 

and document processes and best practices for coordinating quality and cost-effective A) voting 

system pre-election logic and accuracy testing (L&A) and B) post-election audits. Funds will 

support the research, development, documentation, and dissemination of a range of procedures 

and processes used in managing and conducting high-quality L&A testing and post-election audit 

activities by type of voting method, vendor-specific equipment, jurisdiction size, or other ways. 

Initiative Fiscal Year 

2013

Fiscal Year 

2014

Accessible Voting 

Disability Technology $2,809,602 $3,692,859

Logic and Accuracy 485,600 236,649

Total $3,295,202 $3,929,508

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SECTION III

Other Accompanying Information 

III.A. MOST SERIOUS MANAGEMENT CHALLENGES FACING EAC ACCORDING TO THE 

INSPECTOR GENERAL 

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Election Assistance Commission 

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Election Assistance Commission 

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Election Assistance Commission 

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III.B. EAC’S RESPONSE TO THE MOST SERIOUS MANAGEMENT CHALLENGES 

FACING EAC ACCORDING TO THE INSPECTOR GENERAL

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Election Assistance Commission 

III.C. IMPROPER PAYMENTS 

The Improper Payments Act requires each Federal agency to assess all programs and identify 

which, if any, may be subject to high risk with respect to improper payments. For fiscal year 2014 

EAC does not believe that it has any programs where the erroneous payments could exceed 2.5 

percent of program payments or $10.0 million threshold (set in OMB Guidance) to trigger further 

agency action. 

III.D. SUMMARY OF FINANCIAL STATEMENT AUDIT AND MANAGEMENT 

ASSURANCES 

SUMMARY OF FISCAL YEAR 2014 FINANCIAL STATEMENT AUDIT

Audit Opinion Unmodified

Restatement FY 2013

Material Weaknesses

Beginning 

Balance New Resolved Consolidated

Ending 

Balance

Financial Accounting & Reporting 1 1 1 0 1

Total Material Weaknesses 1 1 1 0 1

Summary of Management Assurances

Statement of Assurance (FMFIA§ 2) Qualified

Material Weaknesses (FMFIA§ 4)

Systems conform to financial management system 

requirements

No. Summary

Beginning 

Balance New Resolved Consolidated

Ending 

Balance

1

Material Weaknesses 

(FMFIA§ 2) 1 0 0 0 1

Total 1 0 0 0 1

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