U.S. ELECTION 

ASSISTANCE

COMMISSION

AGENCY FINANCIAL

REPORT

November 19, 2019
Election Assistance Commission

FY 2019 Agency Financial Report

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ABOUT THIS REPORT

For FY 2019 reporting purposes, the U.S. Election Assistance Commission (EAC) has again 

elected to submit an Agency Financial Report (AFR), with an Annual Performance Report 

along with the Congressional Budget Justification. The reports are targeted to the Office of 

Management and Budget (OMB), Congress, and the Public, respectively. The AFR allows EAC 

to focus on and lay out its financial position at this time, providing summary performance data. 

A combined Annual Performance Report/Congressional Budget Justification will follow per 

guidance in OMB Circulars A-11, Preparation, Submission, and Execution of the Budget and

A-136, Financial Reporting Requirements. 

Information about EAC’s programs is available at www.EAC.gov. 
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 November 19, 2019

I. MESSAGE FROM THE CHAIRWOMAN

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

by Congress “to assist in the effective administration of Federal elections.” This Fiscal Year (FY) 

2019 Agency Financial Report describes the Commission’s accomplishments, financial activity, 

and ongoing efforts to strengthen internal controls and financial management.

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

Accountability of Tax Dollars Act of 2002. It is the eleventh year that the EAC has chosen the 

option available in the Office of Management and Budget Circular A-136, Financial Report 

Requirements to submit an Agency Financial Report and Annual Performance Report instead of the 

Performance and Accountability Report. The EAC presents summarized performance data in this 

report and will provide more detailed data in conjunction with the FY 2021 Congressional Budget 

Justification.

When the Help American Vote Act (HAVA) was signed into law on October 29, 2002, it 

established sweeping reforms to the nation’s voting process, including creation of the Voluntary 

Voting System Guidelines (VVSG), establishment of a national voting system certification 

program, and the formation of the EAC to serve as the nation’s only federal agency solely focused 

on election administration. Since its inception, the EAC has:

• Issued 62 voting system certifications, including 10 full systems and 52 system 

modifications.

• Conducted election system manufacturing facility audits, quality assurance audits of voting 

system manufacturers, and formal and informal investigations of voting systems in the 

field;

• Accredited and monitored voting system test laboratories;

• Drafted and approved two versions of the VVSG and, are near ready for a Commission vote 

to adopt the next generation of testable voting system requirements that will inspire 

innovation and result in cost savings;

• Awarded, monitored, and audited state HAVA grants totaling nearly $3.7 billion for 

election administration and voting system modernization, including $380 million allocated 

by Congress in March 2018;

• Administered discretionary grant programs for mock election and college poll worker 

programs, accessibility innovations, military voting projects, and logic and accuracy testing;
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• Created, administered, and reported the biennial Election Administration and Voting 

Survey (EAVS) for all federal elections, issuing reports and data sets for each survey year;

• Created and maintained a clearinghouse for election information including a dynamic 

website, robust video catalog, best practices guides, original research products, and social 

media engagement campaigns.

• Convened state and local election officials, federal government experts, academic leaders, 

and voter advocates for a series of roundtables, webinars and summits on a variety of timely 

topics, such as election security, accessibility and efficiency.

The EAC’s FY 2019 activities were largely guided by its new strategic plan, which was formally 

adopted in February 2018. The strategic plan guides the Commission’s activities through 2022. The 

plan focuses on four primary goals: analyze, build, distribute, and operate, which correspond with 

the agency’s mission set forth in HAVA. Below is a summary of the Commission’s key activities 

and accomplishments during FY 2019.

II. DISTIRBUTING HAVA GRANTS

Last year, Members of Congress provided critical financial support to the states and territories 

through the EAC. Congress also factored the Commission’s up-front grant administration costs into 

the Consolidated Appropriations Act of 2018, which appropriated $380 million in HAVA Funds to 

improve the administration of Federal elections. Within three months of the appropriation, the EAC 

received disbursement requests for 100% of the funds from all 55 eligible states and territories, and 

approximately seven months prior to the 2018 Midterm Elections, the EAC made these funds 

available for draw down.

Throughout the disbursement process, approximately 60 percent of states reached out to the EAC 

for assistance with at least one issue related to the new appropriations, including allowable costs, 

policy questions, pre-approval requests, and the state appropriation process. The EAC’s Grant team 

also proactively reached out to states to provide guidance. All states received pre- award notices, 

budget and narrative guidance, access to EAC webinars, phone and email consultations, and an 

EAC review of budgets and plans.

As the HAVA grant funds were the first appropriations disbursed since FY 2010, many of the statelevel contacts were unfamiliar with the process and met a knowledge gap that the EAC’s team ably 

addressed. States were provided the opportunity to seek clarification, ensuring their plans contained 

only expenses allowable under Title 1 Section 101 of HAVA. The EAC’s Grant team also 

responded to inquiries and reviewed proposals.

In April 2019, the EAC released its first expenditure report detailing the impact of the 2018 HAVA 

funds. State plans and expenditure report indicates that most states are spending these funds on 

items that directly improve election security. In fact, at least 90% of the funds have been devoted to 

technological and cybersecurity improvements, the purchase of new voting equipment, and 

improvements to voter registration systems. Based on more recent conversations with states, the 

EAC projects that 85% of the FY 2018 money will be spent throughout to 2019. States have until 

the end of FY 2023 to spend the funds. The EAC’s Grants team continues to work closely with 
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states regarding these funds and have ongoing administrative responsibilities related to the funds 

through the conclusion of the five-year spending timeline.

III.STRENGTHENING ELECTION SECURITY AND VOTER CONFIDENCE

Election security is a theme that continues to shape the national conversation about election 

administration, especially as we look ahead to the 2020 presidential election. Federal law 

enforcement and intelligence officials regularly remind us that the threats election administrators 

faced in 2016 and 2018 remain today and are likely to intensify in the months and years ahead.

The EAC understands that voter confidence enhances, as we adequately prepare for and respond to 

challenges such as: election misinformation campaigns, persistent attempts to breach election 

systems, attempts to breach voting registration databases, and other emerging threats.

The EAC is pleased to report that election officials across the nation successfully navigated these 

challenges in 2018, and they are even better prepared to handle these issues today. This not only 

reflects election officials’ unwavering commitment to secure elections, but it is also a product of 

improved relationships between state and local election administrators and the federal agencies that 

serve them.

As the agency best positioned to communicate directly with election officials across the country, 

the EAC played an early and leading role in establishing trust and open lines of communications 

between state and local leaders and the federal government entities that work on election security. 

The EAC drove the development of the election security working group that eventually became the 

subsector’s Government Coordinating Council (GCC), for which the EAC Chairwoman, serves on 

the council’s executive board. In addition to the EAC’s work with the Department of Homeland 

Security (DHS) to establish the GCC, the Commission played an integral role in establishing the 

Sector Coordinating Council (SCC) comprised of private election equipment manufacturers and 

vendors.

Beyond the GCC and SCC, the Commission takes a multifaceted approach to helping state and 

local election officials strengthen their election security. This work includes testing and Federally 

certifying voting systems, providing hands-on security and post-election audit training across the 

country, producing security-focused resources, disseminating security best practice information and 

checklists to state and local election officials, as well as hosting widely attended forums that 

feature security experts as speakers.

For example, ahead of the 2018 election, the EAC:

• Distributed urgent security alerts and threat indicators from the DHS and the Federal 

Bureau of Investigation (FBI) to states and territories to help protect election systems from 

specific cybersecurity threats.

• Met on multiple occasions with staff from the DHS, the FBI, the Office of National 

Counterintelligence and Security Center in the ODNI, and the White House to discuss 

specific and nonspecific threats, state and local election system security and protocols, and 

the dynamics of the election system and its 8,000 plus jurisdictions nationwide.

• Served as the federal government’s primary communication channel to provide real-time 

cybersecurity information to election officials around the country. This information 
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included current data on cyber threats, tactics for protecting election systems against these 

threats, and the availability and value of DHS resources for protecting cyber-assets.

• Participated in and convened conference calls with federal officials, Secretaries of State and 

other State Chief Election Officials, local election administration officials, federal law 

enforcement, and federal agency personnel to discuss the prospect of designating elections 

as part of the nation’s critical infrastructure. These discussions focused on topics such as 

coordinating security flashes from the FBI, the implications of a critical infrastructure 

designation, education on the nation’s election system, and the dynamics of successfully 

communicating information to every level of election officials responsible for running the 

nation’s election system.

• Provided DHS with perspective, information, and data related to the election system, 

introductions to officials in the election community, and information that assisted the 

agency with shaping communications in a manner that would be useful to the states and 

local election officials.

• Published a white paper entitled “U.S. Election Systems as Critical Infrastructure” that 

provided a basic understanding of critical infrastructure for election officials.

• Contributed to multiple foundational DHS documents used to structure the Elections 

Systems Critical Infrastructure designation and sector.

Ahead of the 2018 Midterm Election, the EAC also focused on steps our Commission could take to 

further serve election officials operating in the new threat environment. The EAC brought together 

election officials, security officials, academics, and federal government partners for an Election 

2018 kick-off summit at the National Press Club in January 2018. Just one month ahead of the 

midterm election in October 2018, the EAC gathered a similar audience in the Capitol Visitors 

Center for an election readiness summit that featured, among others, Senators Blunt and 

Klobuchar, as well as high-level officials from DHS and the National Counterintelligence and 

Security Center. These events and others like them throughout FY 2019 highlighted the importance 

of election officials’ security preparations and the significance of resource availability to help states 

and localities with this critical work.

While discussion about election security is important, the EAC also knows the value of training. 

EAC staff was intricately involved in the establishment of Harvard University’s Belfer Center 

Table Top Exercises, which have since been conducted across the country. During the past year, 

the EAC has presented its “Election Official as IT Manager” training to officials from hundreds of 

election jurisdictions across the country, and worked with DHS to put this training online through 

the FedVTE platform so that many more election officials can easily access it.

The EAC also produced a video and other supporting material to assist local election officials with 

explaining the many levels of election security to stakeholders in their jurisdiction. The video was 

designed for civic group meetings and election worker trainings and can be customized with some 

states tailoring the video for their voters and processes. The EAC plans further work in this regard. 

EAC Commissioners continuously meet with state and local election officials at regional 

conferences across the country to inform of best practices, promote resources available through the 

EAC and federal partners, such as the United States Postal Service, the Department of Defense’s 

Federal Voting Assistance Program (FVAP), and the DHS. These visits also allow for discussion 
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about current concerns and topics in election administration, such as contingency planning, 

accessibility, voter registration, and technology management.

On Election Day 2018, the EAC’s newly hired Chief Information Officer and head of the Testing 

and Certification Program were on site with other federal agencies and key election stakeholders at 

the National Cybersecurity & Communications Integration Center (NCCIC). The EAC successfully 

communicating information to every level of election officials responsible for running the nation’s 

election system.

IV.TESTING AND CERTIFICATION

As states seek to invest in the purchase of new voting equipment, election leaders are continuing to 

turn to the EAC’s Testing and Certification Program as a key resource in ensuring the nation’s 

voting systems are tested to confirm the secure and accurate tabulation of ballots. This includes 

seeking information about how best to develop Requests for Proposals, information on the systems 

currently certified, and implementation of the next iteration of the Voluntary Voting System 

Guidelines, which will be known as VVSG 2.0.

Historically, the VVSG consists of Principles, Guidelines and Requirements against which voting 

systems are tested to determine if the systems meet required standards. The EAC’s goal is to bring 

technological gains in security and other factors to the voters. Some additional factors examined 

under these tests include functionality, accessibility, accuracy, and auditability. HAVA mandates 

that EAC develop and maintain these requirements, as well as test and certify voting systems. 

These guidelines are voluntary, and states may decide to adopt them entirely or in part.

Last year, the EAC’s Technical Guidelines Development Committee (TGDC), as well as, the 

EAC’s Board of Advisors and Standards Board, recommended adoption of the proposed VVSG 2.0 

Guidelines and Principles. Unfortunately, when one of the Commissioners left the EAC, the 

Commission lost its quorum and was unable to vote to adopt new guidelines. Earlier this year, the 

Senate confirmed two new EAC Commissioners. In February 2019, after Commissioner Palmer 

and Commissioner Hovland were confirmed, the EAC’s first official act was to unanimously vote 

to publish the VVSG 2.0 Principles and Guidelines in the Federal Register for a 90-day public 

comment period that concluded in June. In addition, the EAC held public hearings to gather 

feedback on the proposed principles and guidelines. The first public hearing took place on April 10 

in Memphis, Tennessee and the second public meeting occurred in Salt Lake City, Utah on April 

23. On May 20, the third hearing was held at the EAC main office in Silver Spring, Maryland. In 

addition, the EAC hosted a series of teleconferences focused on various aspects of the proposed 

technical guidelines. Following these events, the TGDC convened in Silver Spring on September 

19-20 to review the VVSG 2.0’s technical requirements and a vote is expected in the current fiscal 

year.

V. CHAMPIONING ELECTION ADMINISTRATION RESEARCH & BEST PRACTICES

a) EAVS

On June 26, the EAC released its 2018 Election Administration and Voting Survey (EAVS), the 

most comprehensive source of state and local jurisdiction level data about election administration 
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in the United States. This HAVA mandated report has improved over the years to enhance the 

survey’s data quality and completeness, making it more accessible and useful to the election 

community. For the administration of the 2018 survey, the EAC took multiple steps to strengthen 

the EAVS. For example, EAVS Section F questions on voting equipment makes and models were 

redesigned, resulting in substantially improved data quality. The Policy Survey replaced the 

statutory overview. The Policy Survey is a closed-ended data collection tool that provides better 

context for understanding the EAVS data and makes it easier to interpret the results. The EAC also 

introduced new questions within the Policy Survey relevant to the functionality of statewide voter 

registration databases, online voter registration, election failsafe mechanisms, and post- election 

auditing.

The 2018 EAVS report and accompanying data was released in conjunction with the 2019 Election 

Data Summit on Capitol Hill. The day-long Summit featured panel discussions on data outcomes 

from the newly released biennial EAVS comprehensive report, as well as; panel conversations on 

issues such as how data can be used to address election security, improve voter registration, 

modernize election management systems, and enact best practices for serving voters covered under 

the Uniformed and Overseas Citizens Absentee Voting (UOCAVA) Act.

b) Disaster Preparedness and Recovery

The EAVS survey and other EAC research inform the agency’s efforts to improve the security, 

accessibility and efficiency of federal elections across the nation. In FY 2019, the EAC launched an 

initiative to assist election administrators with disaster preparedness and recovery. Natural and 

man-made disasters have the potential to impede election administration by destroying 

infrastructure, displacing voters, and revealing system vulnerabilities to security threats. Recent 

catastrophic hurricanes, wildfires, floods, volcanic eruptions, terrorist attacks and other disasters 

have unfortunately made election stabilization and recovery a timely topic for election officials 

across the country.

When a disaster strikes close to Election Day, election administrators must ensure that elections are 

still conducted, often without any budgetary or scheduling adjustments. In FY 2019, the EAC 

traveled to Florida and Puerto Rico to conduct research and record interviews with election 

officials that faced devastating natural disasters in 2018. The trips resulted in a series of videos 

detailing how these jurisdictions prepared for the storms, responded during the aftermath, and the 

lessons they learned.

Building on this research, in April 2019, the EAC held its inaugural meeting of a newly-formed 

Disaster Preparedness and Recovery Working Group. Members of this group gathered for an 

information sharing exercise that will help inform future outreach to federal agencies and lay the 

foundation for future EAC products designed to assist election officials facing disasters. In addition 

to the working group, during annual meetings this spring, the EAC’s Board of Advisors and 

Standards Board each formed committees focused on this important work.

c) Accessibility for Voters with Disabilities

As it works to fulfill HAVA’s promise to provide each voter with the opportunity to cast their 

ballot privately and independently, the EAC continues to actively engage voters with disabilities 
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and advocacy groups focused on accessibility. For example, on July 21, just days ahead of the 29th 

anniversary of the Americans with Disabilities Act, the EAC’s four Commissioners met with 

members of the National Council on Independent Living (NCIL) for a pre-conference session on 

accessibility and security in the voting process. Commissioners also heard from attendees about a 

variety of other election access needs for voters with disabilities.

NCIL is a national cross-disability and grassroots organization representing thousands of 

individuals with disabilities and the independent living centers that serve them. At the session, 

Commissioners led a dialogue on the voting rights of people with disabilities, discussed how to 

ensure security measures do not infringe on those rights and received invaluable feedback. The 90-

minute session was composed of two segments, including a discussion on disability and security in 

the voting process and a town hall focused on attendees’ voting experiences.

d) Language Accessibility

According to U.S. Census Bureau, there are nearly 26 million people in the U.S with limited 

English proficiency and more than 66 million who speak a language other than English at home. 

Such individuals can face challenges when attempting to register to vote and cast a ballot. From 

translated materials to bilingual assistance at the polls, election officials across the country take a 

number of steps to help these voters overcome language barriers and participate meaningfully in 

the elections process. In 2016, this type of assistance was required through language provisions in 

the Voting Rights Act (VRA) in 263 jurisdictions and 3 states across the country.

The EAC continues to support language accessibility in elections and has done so since its 

inception in 2002. This includes creating glossaries and phrase books of common election 

terminology, providing Help America Vote Act funds to states to improve language accessibility, 

offering the National Mail Voter Registration Form in 15 languages and in FY 2019, creating a 

braille translation of the form’s content. In addition, in April 2019, the EAC released a 

Clearinghouse Brief on Language Accessibility that aggregated existing resources on language 

accessibility. The brief aims to help election officials and other election stakeholders, better 

understand VRA’s language assistance requirements and enhance current approaches to serving 

voters with language needs.

The EAC continues to augment its language accessibility resources as election officials prepare for 

the 2020 Presidential Elections and beyond.

e) Voter Registration

In FY 2019, the EAC carried out a robust campaign in support of National Voter Registration Day. 

The EAC proudly partners with the National Voter Registration Day team to urge all eligible voters 

to register to vote or verify the accuracy of their existing registration. In July, the EAC’s 

#PlanToVote effort kicked off as the EAC’s four Commissioners issued a joint resolution in 

support of National Voter Registration Day. Throughout September, as the Commission’s 

#PlanToVote campaign was in full swing, EAC Chairwoman Christy McCormick used the EAC’s 

blog capacity to remind Americans to register to vote and to keep their promise to participate in 

democracy. EAC Vice Chair Ben Hovland later spotlighted ways that Americans from coast to 

coast can participate in National Voter Registration Day events. These pieces complemented a 
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sustained social media campaign and participation in National Voter Registration Day events on 

September 24th.

f) Enhanced Website

In anticipation of the 2020 Presidential Election, the EAC updated its website to provide users with 

an enhanced experience. The new homepage approach allows visitors to self-select their 

perspective and area of interests to enrich their online experience and more readily access the 

EAC’s large online clearinghouse.

g) Clearinghouse Awards

In February 2019, the EAC announced the winners of our 2018 Clearinghouse Awards for Best 

Practices in Election Administration. The awards, also known as the Clearies, provide election 

offices across America an opportunity to share their innovative efforts and election administration 

successes. The Clearies play an important role in furthering the EAC’s responsibilities under the 

Help America Vote Act of 2002 (HAVA), to serve as a clearinghouse for election administration

information.

The entries offer great insight and exemplify the can-do spirit of election officials. Following a 

very competitive vote, the EAC announced 10 award recipients. Clearie recipients were from a 

wide range of populous, from a city of 3,500 to a state with more than three million registered 

voters. The EAC shares Clearie recipients’ results so that other jurisdictions might replicate or 

build upon their efforts.

The winners in the outstanding innovations category addressed important election administration 

issues, such as cybersecurity training for local officials, overall efforts to effectively operate 

election offices, programs to extend accessible absentee ballots to underrepresented populations 

and ways to harness off-the-shelf technology in supporting Election Day operations. In the 

accessibility for voters with disabilities category, Clearies’ winners showcased their efforts to train 

poll workers to better serve the needs of voters with disabilities, exhibited a coordinated effort for 

helping veterans and individuals with disabilities, and demonstrated video outreach to assist people 

who are hearing impaired.

Finally, the election worker competition highlighted great results with using high school students 

as poll workers, efforts to modernize training initiatives, and connecting veterans and students to 

serve at the polls.

From advancing cybersecurity training at the local level or helping veterans with disabilities in the 

elections process, the 2018 EAC Clearinghouse Awards were a testament to election officials’ 

leadership efforts across the U.S. The EAC continues to highlight the Clearie winners through 

blogs and additional outreach.

With the restoration of a quorum in FY 2019, the EAC looks ahead to the next fiscal year. It plans 

to build on the success of the previous fiscal year and continues to seek direction from its strategic 

plan. Heading into the 2020 Presidential Election, the Commission will focus on its four primary 

goals - analyze, build, distribute, and operate – and continuing search for ways to improve services 

for election officials and the voters they serve.
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Over the years, the EAC’s Inspector General has conducted operational audits and investigations of 

the agency. The vast majority of recommendations made in the internal audits have been 

implemented by the EAC. The financial and performance data in this report is reliable and

complete, with no material internal control weaknesses. The Commission provides an unqualified 

statement of assurance that the agency’s internal control and financial management system meets 

the Federal Managers’ Financial Integrity Act.

The EAC stands ready to continue assisting state and local election officials to help America vote.

Sincerely,

Christy A. McCormick 

Chairwoman

U.S. Election Assistance Commission
TABLE OF CONTENTS

 Page

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

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

 Funding ..................................................................................................................... 4 

 Organization by Program........................................................................................... 6

 Organization Chart..................................................................................................... 9

I.B. Performance Goals, Objectives, and Results........................................................... 10

How EAC Assesses Performance............................................................................. 10

Accomplishments by Goal ....................................................................................... 10

FY 2019 Performance Summary.............................................................................. 19

Portfolio Analysis..................................................................................................... 20

I.C. Financial Results...................................................................................................... 20

Budgetary Resources ............................................................................................... 20

 Financial Position..................................................................................................... 20

 Results of Operations............................................................................................... 21

 Limitations of the Financial Statements .................................................................. 21

I.D. Analysis of Controls, Management Systems, and Legal Compliance..................... 22

 Internal Control Environment.................................................................................. 22

 Federal Manager’s Financial Integrity Act.............................................................. 22

 Entity-Wide Security Program................................................................................. 22

 Federal Information Security Management Act ...................................................... 23

 Audit Follow-Up...................................................................................................... 23

 Federal Financial Management Improvement Act .................................................. 23

 Accountability of Tax Dollars Act of 2002 ............................................................. 23

 Inspector General Act Amendments of 1988........................................................... 23

 Fraud Reduction Report........................................................................................... 24

 Annual Assurance Statement on Internal Control ................................................... 29

 

SECTION II – Financial Section.................................................................................. 30

II.A. Inspector General’s Assessment.............................................................................. 30

II.B. Independent Auditor’s Report ................................................................................. 32

II.C. Required Supplementary Stewardship Information ................................................ 57

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

III.A. Major Management and Performance Challenges Facing the EAC ...................... 60

III.B. Improper Payments ................................................................................................ 67

III.C. Summary of Financial Statement Audit and Management Assurances................. 67
Election Assistance Commission

FY 2019 Agency Financial Report

1 

SECTION I

Management Discussion and Analysis 

The Management Discussion and Analysis (MD&A) is presented in accordance with the 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; and actions taken or planned to address issues. 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. The Act 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). In passing the EAC’s 2018-2022 Strategic Plan, the EAC framed 

the mission and vision of the agency set out in its chartering legislation with the following. 

EAC Mission Statement:

The U.S. Election Assistance Commission helps election officials improve the administration of 

elections and helps Americans participate in the voting process. 

EAC Vision Statement:

A trusted, proactive, and responsive federal agency that helps election officials administer and 

voters participate in elections.

The EAC is an independent, bipartisan agency. By statute, 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. Currently, there are four Commissioners. The EAC is statutorily

charged with: 

• adopting voluntary voting system guidelines available for use by the states,

• accrediting voting system testing laboratories and certifying voting systems,

• developing guidance for state and local election officials to meet HAVA requirements,

• serving as a national clearinghouse of information on election administration, including

tools and best practices,
Election Assistance Commission

FY 2019 Agency Financial Report

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• maintaining the National Mail Voter Registration Form, developed in accordance with the 

National Voter Registration Act (NVRA) of 1993, 

• promoting accessibility for voters with disabilities,

• providing grantees with technical assistance on use of payments and grant funds, and 

• auditing the use of HAVA funds.

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

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

established the Technical Guidelines Development Committee (TGDC) to assist 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 serves as the Chair of the TGDC, and provides technical support to the Committee. 

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

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

a total to date of $39.4 million 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 statewide voter registration databases, train election 

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

distributed $649.5 million in HAVA funds to the fifty states, Guam, Puerto Rico, the U.S. Virgin 

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

distributed for activities to improve the administration of elections (HAVA 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. The Agency’s Fiscal Year 2004 operating budget was $1.7 million. At the close of 

the fiscal year, the EAC had a staff of 18. The 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 positions: 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 2018, the EAC had 23 full-time and three parttime staff. Since its inception, EAC has received $2,606,150,000 in requirements payments; and 

$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. EAC also tracks and provides technical assistance on the 

Section 101 funds to improve the administration of Federal election which is reported by the states. 

The time period for using the Section 102 punch card/lever replacement funds expired, and EAC 
Election Assistance Commission

FY 2019 Agency Financial Report

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collected all unused funds by the end of FY 2018. In FY 2018, Congress appropriated $380 million in 

formula grants for improvement of federal elections. 

In FY 2015, the Senate confirmed three Commissioners appointed by the President. In FY 2018, 

there were two Commissioner vacancies.

In FY 2019, the Senate confirmed two Commissioners appointed by the President. The 

Commission currently has a full quorum of Commissioners. 
Election Assistance Commission

 FY 2019 Agency Financial Report

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FUNDING

EAC Appropriation History Fiscal Years 2003 - 2019

(Dollars in Thousands)

Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total

Section 101 and 102 649,500 649,500 

Administrative 

Expenses 500 500 

Subtotal 101, 102 650,000 650,000 

Election Reform Program Grants

Requirements 

Payments 830,000 1 1,491,150 115,000 100,000 70,000 1,025,184 3,631,334

Poll Worker Grants 1,500 1,500 

Foundation 1,500 1,500 

Voting Technology 

Research 5,000 3,000 8,000 

Testing & 

Verification 1,000 2,000 3,000 

Election Security 

Grants 380,000 380,000 

Subtotal, Election 

Reform 833,000 1,491,150 115,000 106,000 75,000 380,000 3,000,150 

Election Data Collection Grants

Subtotal, Data 

Collection 10,000 10,000

EAC Salaries & Expenses (S&E) 

Operations 2,000 1,674 2 11,110 10,986 11,313 12,330 12,909 13,409 13,024 8,750 8,292 8,100 8,100 8,100 8,200 8,600 7,950 154,847

Mock Election 

Grants 200 300 300 800 

Poll Worker Grants 300 750 750 750 2,550 

Transfer to NIST 2,778 2,772 4,950 3,250 4,000 3,500 3,243 2,750 2,745 1,900 1,900 1,500 1,400 1,500 1,250 39,438

Subtotal, S&E 2,000 1,674 13,888 14,058 16,263 16,530 17,959 17,959 16,267 11,500 11,037 10,000 10,000 9,600 9,600 10,100 9,200 197,635

TOTAL 1,485,000 1,492,824 13,888 14,058 16,263 141,530 123,959 92,959 16,267 11,500 11,037 10,000 10,000 9,600 9,600 390,100 9,200 3,857,785

1/ Carried forward to FY 2005

2/ Includes $481,092 transferred from the Federal Election Commission
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Status of Help America Vote Act Authorization versus Appropriations

(in whole dollars)

Authorized

Appropriated 

FYs 2003-2019 Remaining

GSA (FY 2003)

Election Administration Improvement (Section 101)

$ 

324,750,000 $ 324,750,000 

$ 

- 

Punch Card/Lever Machine Replacement (Section 102)

 

324,750,000 324,750,000 

 

- 

Administrative Expenses for 101 and 102

 

500,000 

 

500,000 

 

- 

EAC (FY 2003 – 2016)

Requirements Payments (Section 251)

 

3,000,000,000 ** 2,607,175,184 392,824,816

Voting Technology Improvement Research Grants 

(Section 271)

 

20,000,000 

 

8,000,000 12,000,000

Equipment and Technology Testing Pilot Program 

(Section 281)

 

10,000,000 

 

- 10,000,000

Pre-Election Logic and Accuracy Testing & PostElection Verification 

3,000,000 1,4

 

3,000,000 

 

- 

Operations (Section 210)

 

188,435,000 2,4 188,435,000 

 

- 

Election Data Collection Grants

 

10,000,000 3

 

10,000,000 

 

- 

Election Security Grants

 

380,000,000 4 380,000,000 

 

- 

National Student and Parent Mock Election Organization 

(Section 295)

 

200,000 **

 

- 

 

200,000.00 

Poll Worker Grants (Section 501)

 

5,000,000 **

 

1,500,000 

 

3,500,000.00 

Help America Vote Foundation (Section 601)

 

5,000,000 **

 

1,500,000 

 

3,500,000.00 

Total $4,271,635,000 $3,848,585,000 $423,050,000

1/ Authorized by P.L. 111-8

2/ $30 million per HAVA, balance per appropriations. Includes $2.55 million Poll Worker grants and $800,000 Mock Election 

Grants

3/ Authorized by P.L. 110-161

4/ Authorized by appropriations

**Plus such sums as may be necessary in succeeding years

Note: excludes $140 million plus such sums authorized for HHS under Disability Access Section 261 and Participation Section 

291, $15 million appropriated to GSA in FY 2003 for Title I, and $5 million plus such sums for the Help America Vote 

Foundation Section 601
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Organization by Program

EAC has organized its offices around the mandates of HAVA. Below are brief descriptions of the 

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

descriptions is EAC’s organization chart.

Communication

Communications staff 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:

• the EAC Website and Clearinghouse,

• social media, 

• media inquiries,

• external communications,

• Congressional relations,

• the Freedom of Information Act, and

• editorial support including 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, informational videos, research, 

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

information from public meetings, hearings, summits, and roundtables. 

The website features a user-driven notification system, allowing visitors to customize how they 

receive information. Users sign up for daily or weekly automatic e-mail alerts on a variety of 

election topics and events, including public meetings, advisory board meetings, reports, policies, 

and other agency news. 

Payments and Grants Management

The Payments and Grants Management Division:

• provides technical assistance to the states on administering Federal funds,

• processes and disburses payments to the states,

• tracks the submission of and reviews the content of financial and performance reports 

submitted by states,

• analyzes audit reports and works with fund recipients on recommendations to resolve audit 

findings applicable to EAC’s programs,

• reviews amended State Plan submissions on the use of Requirements Payments funds so 

states can comply with HAVA Title III, Uniform and Nondiscriminatory Election 

Technology and Administration Requirements, and

• drafts advisory opinions for Commission approval and issuance. 
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Research

The Research Division: 

• administers the biennial Election Administration and Voting Survey (EAVS) to 50 states,

the District of Columbia, American Samoa, Guam, Puerto Rico and the Virgin Islands (the

states). The survey produces data and reports mandated by HAVA. Topics include the

impact of the National Voter Registration Act of 1993, and the impact of the Uniformed

and Overseas Citizens Absentee Voting Act (UOCAVA) on military and overseas voters’

participation in Federal elections. EAVS is the only comprehensive collection and report of

data on elections in the United States,

• conducts research on election administration topics as mandated by Congress and at the

discretion of the Commission. Research has included administering elections in urban and

rural areas; the feasibility and advisability of establishing free absentee ballot return

postage; the feasibility of alternative voting methods; and the voting experiences of firsttime voters who register to vote by mail,

• manages 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 Program to assist state and local election

officials with conducting secure, efficient, accurate, and accessible elections. The

educational materials provide information and “Quick Tips” on topics such as: Employing

Poll Workers, Polling Place Management, Voting Accessibility, Communicating with the

Public, Contingency Planning, Managing Change in an Election Office, Serving UOCAVA

voters, and Developing an Audit Trail for the verification of votes,

• manages the Language Accessibility Program that provides informational materials on the

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

and translates the National Mail Voter Registration Form into languages other than

English, and

• provides materials to voters and election administration officials to facilitate successful

participation in Federal elections.

Voting System Testing and Certification

Under the Help America Vote Act, the EAC is responsible for assisting states with improvements to 

voting systems through the distribution of Federal funds. The EAC accredits voting system test 

laboratories and certifies voting equipment. Participation by states in the certification program 

is voluntary. Throughout the certification process, test plans, test reports, and reports on voting 

system anomalies in the field are provided to election officials. Staff works with the National 

Institute of Standards and Technology (NIST) to evaluate and accredit voting system test 

laboratories, and on management of the voting system certification process. 

The Testing and Certification (T&C) Division:

• assists states with voluntary certification of voting systems,

• supports local elections officials in the areas of engineering change order updates,

acceptance testing, and pre-election system verification for EAC-certified systems,
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issuance of Requests for Proposal, and information on how to maintain aging voting 

technology, 

• promotes quality control in test laboratories and voting system manufacturing through the

EAC Quality Monitoring Program, including periodic lab and manufacturing facility

audits of EAC-registered entities,

• provides procedures to voting system manufacturers for the testing and certification of

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

Section 231(a)(1),

• upon invitation or with permission from election officials, the EAC conducts reviews of

systems in use in the field, and along with its advisory boards, the EAC and NIST work

together to update and implement voluntary testing guidelines for voting systems. 
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Election Assistance Commission

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I.B. PERFORMANCE GOALS, OBJECTIVES, AND RESULTS

The 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. In accordance with OMB A-11, the EAC adopted a new 

strategic plan in 2018. The EAC new Strategic Plan covers 2018-2022. Following OMB-136, the 

performance goals and results are aligned with the Statement of Net Cost.

How EAC Assesses Performance

The EAC program area’s below describe in general terms the role that the program area plays in

helping the Commission meet its congressional mandates as well as the results needed to

accomplish its goals. The EAC’s strategy for collectively driving its programs to achieve the 

mission of the agency is more extensively listed in the EAC’s 2018-2022 Strategic Plan, which 

can be found on the EAC’s website. 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 and documentable representations of a 

capacity, process, or outcome that is relevant to the assessment of performance.

Program Area: Communication

The Communication division supports the mission of the agency by providing state and local 

election officials, voters, Congress, other federal agencies, and the public with 

reliable, accurate, and non-partisan information about the administration of Federal Elections.

Current Strategic Plan (2018-2022) Goals: 

• Build: Proactively and responsively create products that help election officials improve the

administration of elections and help voters more easily participate in elections

• Distribute: Help election officials improve the administration of American elections

through the distribution of EAC assistance and products.

Communications FY 2019 Accomplishments 

Through the EAC’s ElectionPrep19 Campaign, a year-long effort to help the nation’s election 

officials prepare for the 2020 Presidential Election, the commission achieved its build and 

distribute goals by proactively sharing resources and information to support election 

administrations around the country as they face a host of complex challenges such as cyber 

security. Please note that while this section largely addresses the distribution of materials and 

information, the commission’s efforts to analyze data, develop original research, promote election 

security and accessibility, as well as create other best practices resources are described in more 

detail under Goal 3. 
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FY 2019 Agency Financial Report 

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Communications Events and Outreach 

In FY 2019, the EAC populated its website with dynamic and engaging content resulting in 

531,940 unique users on the website, with nearly 1.2 million page views. The communications 

team distributed 47 news articles, created 68 original blogs written by EAC authors and outside 

experts, produced 41 original videos resulting in 13,600 views. The EAC exponentially grew its 

social media community resulting in 7,534 Twitter followers, 860 tweets, 1,985 Facebook follows, 

482 Facebook Posts, 166 Instagram follows, and 318 LinkedIn follows. The EAC also hosted 6 

events. The following provides additional detail about some of these efforts. 

Media Coverage & Engagement 

The EAC’s robust media engagement effort ensures that reporters have access to timely and 

accurate information about U.S. election administration. The commission’s staff and leadership 

regularly engage in media interviews on and off the record, providing expertise on a broad range 

of topics. In addition, the communications team works to ensure that the EAC’s original research 

is accessible to all audiences through the use of graphic design, creation of searchable datasets, 

factsheets, and other materials which resulted in 717 Website E-Alert Subscribers. These efforts 

have produced solid and sustained coverage growth in recent years. For example, in FY 2019 the 

EAC was mentioned in 8,442 print and broadcast news stories in the United States. 

Events

The EAC hosted several meetings, forums and summits in FY 2019 that focused on elections and 

leveraging information to produce important content to assist election officials and voters. On 

Wednesday, Oct. 3, 2018, one month before the 2018 midterm elections, the U.S. Election 
Election Assistance Commission

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Assistance Commission (EAC) hosted the EAC Election Readiness Summit. The EAC Election

Readiness Summit event aims to inform the public and lawmakers about the steps election leaders

can take to ensure secure, accessible, and efficient elections. The summit provided a platform for 

election officials and stakeholders to engage experts to discuss priorities and solutions for the 

upcoming election year. 

In April 2019, during the EAC’s annual Standards Board and Board of Advisors meetings that are 

mandated by HAVA and include election officials and other election stakeholders from around 

the country, the commission hosted a public forum on election security. During this discussion, 

state and local election officials discussed election disaster relief and detailed their election

cybersecurity efforts in preparation for ongoing elections, specifically the upcoming 2020 

Presidential Election. 

Available 24/7 for the public on EAC.gov, there are videos that range from educational “primers” 

on topics such as election security and the EAC’s Election Administration and Voting Survey to 

issue specific webisodes and event panels. The Commission also launched a new Instagram 

account, where it uses compelling photos to engage voters and share important election 

information. 

On Feb. 15, the EAC announced the winners of our 2018 Clearinghouse Awards for Best Practices 

in Election Administration. The awards, also known as the Clearies, provide election offices 

across America an opportunity to share their innovative efforts and celebrate successes. The 

Clearies play an important role in furthering the EAC’s responsibilities under the Help America 

Vote Act of 2002 (HAVA). Under that act, the EAC serves as a clearinghouse for election 

administration information.

Federal Advisory Committee Act (FACA) Activities

The EAC managed the successful completion of the Congressionally-mandated Annual 

Comprehensive Review Report to Congress for Fiscal Year 2019. It also published Sunshine Act 

Notices in the Federal Register for the Federal Advisory Committee Meetings (the boards). 

Freedom of Information Act (FOIA) Activity

Clearinghouse staff completed 35 FOIA requests for during FY 2019. It also maintained its online 

FOIA reading room to ensure frequently requested documents and information is easily available 

to the public. 

Program Area: Payment and Grants

The Grants division supports the mission of the agency by delivering and managing Federal funds 

that help election officials procure modern election systems. This program primarily supports the 

strategic goals listed below. 

Current Strategic Plan (2018-2022) Goals: 

• Distribute: Help election officials improve the administration of American elections through the

distribution of EAC assistance and products.
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Monitoring of $380 Million in 2018 HAVA Election Security Funds

In FY 2018, Congress signed the Consolidated Appropriations Act of 2018 into law. The Act 

included $380 million in grants, made available to states to improve the administration of 

elections for Federal office, including to enhance technology and make certain election security 

improvements. The 2018 HAVA Election Security Fund, authorized under Title 1 Section 101 of 

the Help America Vote Act (HAVA) of 2002, marked the first new appropriations of HAVA 

grants since FY 2010. The funding provides states with additional resources to secure and improve

election systems. The EAC was charged to administer these funds to states.

Now that the funds are distributed to the states, the EAC is mandated to audit and provide 

technical assistance. The EAC’s Inspector General audits the States’ use of the funds, and EAC 

staff members provide technical assistance to the states as they plan to and implement their plans 

to use the federal funds. Currently, the EAC as well as the EAC’s Inspector General have begun 

taking steps to start providing these services to the nation, and the EAC fully expects this work to 

continue. 

HAVA Section 251 Requirements Payments

In FY 2019, the Payments and Grants Management Division disbursed a net total of $1,025,184 of 

Section 251 Requirement Paymest to twelve states. Requirements Payments are used to meet the 

requirements of Title III Uniform and Nondiscriminatory Election Technology and Administration 

Requirements of HAVA. Title III requirements include voting system standards, voting 

information requirements, provisional voting, statewide voter registration lists, and identification 
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requirements for voters who register by mail. By law, Section 251 funds are calculated according 

to a formula based on the voting age population of each State according to the last census and the 

total voting age population of all States, the District of Columbia, American Samoa, Guam, Puerto 

Rico, and the Virgin Islands. 

The division provided technical assistance to and monitored grant and payment recipients who are 

responsible for establishing and maintaining internal controls over the funds. During FY 2019, 

staff conducted remote technical assistance to three states. The internal controls are intended to 

provide reasonable assurance of compliance with Federal laws, regulations, the provisions of 

HAVA, and payments and grant agreements. Staff also provided indirect cost rate negotiations for 

four states, and resolves any issues identified in state OMB Circular A-133 single audit reports.

During FY 2019, staff reviewed 122 Federal Financial Reports (FFRs) and accompanying 

narrative reports submitted by the States for HAVA Sections 101 Payments to States for activities 

to improve administration of elections, and 251 Requirements payments funds. Information from 

the FFRs as of September 30, 2018 was used to compile the annual grant expenditure report during 

FY 2019. The report is available on www.EAC.gov.

Program Area: Research 

The Research division supports the mission of the agency by providing useful resources that assists 

state and local election officials to administer elections and helps voters participate in the process. 

Among the products created and managed by this program is the EAC’s Election Administration 

and Voting Survey (EAVS). The Research program primarily supports the strategic goals listed 

below. The list of strategic goals derive from the U.S. EAC’s Strategic Plan 2018 through 2022. A 

management discussion and analysis of the Research program’s work towards achieving the listed 

strategic goals follows the list.

Current Strategic Plan (2018-2022) Goals:

• Analyze: Expand the nation’s comprehensive understanding of American election administration. 

• Build: Proactively and responsively, create products that help election officials improve the

administration of elections and help voters more easily participate in elections.

• Distribute: Help election officials improve the administration of American elections through the 

distribution of EAC assistance and products. Research is responsible for gathering and creating 

election administration resources to assist election officials and voters.

Research FY 2019 Accomplishments

Conducting Original Research

On a biennial basis, the EAC administers the EAVS, the most comprehensive survey on data and 

practices concerning the administration of U.S. elections. The survey collects data on more than 

400 variables from all fifty states, the District of Columbia, American Samoa, Guam, Puerto 

Rico, and the Virgin Islands. The EAVS dataset is usable by other federal agencies, election 

officials, academics and other researchers to understand and improve the administration of 
Election Assistance Commission

FY 2019 Agency Financial Report

15

U.S. elections. Additionally, through the successful administration of EAVS, EAC meets 

numerous legislative mandates, related to the Uniformed and Overseas Citizens Absentee Voting 

Act and the National Voter Registration Act, for the collection of information relating to the 

administration of U.S. elections.

In FY 2019, the EAC transitioned the tool that accompanies the EAVS from the Statutory 

Overview to the Policy Survey. The Policy Survey is a closed-ended data collection tool that 

captures and standardizes data for analysis, compared to the Statutory Overview, which was an 

open-ended tool. EAVS, accompanied by the Policy Survey, provides an in-depth understanding 

of how elections are being administered in the United States. The 2018 EAVS also introduced new 

questions within the Policy Survey relevant to the functionality of statewide voter registration 

databases, online voter registration, election failsafe mechanisms, and post-election auditing. 

Cybersecurity of the election systems at the state and local level continues in the headlines as an 

issue of interest. In FY 2019, EAC staff on the research team completed training and obtained 

certification related to cybersecurity, in order to, build a knowledge base to conduct research in 

this area.

Figure 1: Survey improvements allow EAC to capture most commonly used types of voting 

equipment 

The EAC is continually building products using EAVS data. For example, EAVS Deep Dives are a 

series of short papers that present data analysis findings for trends and other related information. 

Each Deep Dive focuses on an individual topic found in the data, and presents the information in 

an objective, reader-friendly format. Additionally, the EAC updated its online interactive tool 

using EAVS 2018 data, which greatly enhances the accessibility of EAVS data to election 

officials, policymakers, researchers, and the broader public.

The EAC implements a primarily qualitative data collection effort that results in white papers, 

known as Topic Briefs. In FY 2019, “Managing the Complexities of Ballot Design” was developed 
Election Assistance Commission

FY 2019 Agency Financial Report

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as the first of a series of topic briefs. These white papers explore the practices and perspectives of 

a select group of state and local election officials on a variety of election administration topics. 

When applicable, EAVS data complements the mainly qualitative methodology incorporating a 

mixed methodology.

Highlighting Election Administration Best Practices

In an effort to collect and distribute information about best practices in election administration 

across the nation, the EAC again presented its competition centered around best practices, the 

Clearinghouse Awards or the “Clearies.” These awards highlight leaders in the field of election 

administration so that others may learn from them and their success. In FY 2019, the EAC 

awarded ten participants in three Clearies categories: 1) Outstanding Innovations in Election 

Administration, 2) Improving Accessibility for Voters with Disabilities and, 3) Best Practices in 

Recruiting, Training and Retaining Election Workers. After the success of the second Clearies, in 

the latter half of FY 2019, EAC collected information and submissions for the third year from 

election officials around the country and will award the winners in FY 2020.

Serving Voters

In FY 2019, the EAC processed twelve state-requested updates to the National Mail Voter 

Registration form instructions and accompanying language translations. In addition to the form’s 

availability in 15 languages, the EAC added a Braille translation of the form’s content. EAC 

understands that it must not only help election officials improve the administration of their 

elections, but EAC must also directly help voters. Voter resources is one of the most frequently 

visited portions of the agency’s website. Voters can find a Voter’s Guide to Federal Elections, 

resources for overseas and military voters, information on registering to vote – including the 

National Mail Voter Registration Form, information about becoming a poll worker, general 

educational information, and Election Day contact information.

The EAC’s 2019 Election Data Summit event coincided with the release of the 2018 Election 

Administration and Voting Survey (EAVS) and featured expert speakers examining how to use 

data to help America vote. The day’s keynote speakers and panel discussions included a look at 

how data can be used to address election security, improve voter registration, modernize election 

management systems, and enact best practices for serving voters covered under the Uniformed and 

Overseas Citizens Absentee Voting (UOCAVA) Act. This gathering of election administration’s 

subject matter experts was live-streamed and recorded for election official and voter access 

nationwide. 

Program Area: Testing and Certification 

The Testing and Certification divison supports the mission of the agency by crafting a national 

standard for testing and certifying vendor-created voting systems and administering a testing 

program in which voting systems that meet the standard are certified. Election officials use this 

certification for guidance in voting system procurement. This program primarily supports the 

strategic goals listed below. 
Election Assistance Commission

FY 2019 Agency Financial Report 

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Current Strategic Plan (2018-2022) Goals:

• Build: Proactively and responsively create products that help election officials improve the

administration of elections and help voters more easily participate in elections

• Distribute: Help election officials improve the administration of American elections

through the distribution of EAC assistance and products.

FY 2019 Accomplishments 

The EAC administers and manages the only national standard-setting program for building, 

testing, and certifying voting systems. States’ use of this program and its standard is voluntary. 

More than 40 states use the program in some way. The program operates by creating the VVSG 

with TGDC, certifying test laboratories to test to these guidelines, and administering voting 

system test campaigns – voting systems are submitted to the test laboratories for testing against the 

guidelines. If a voting system meets all of the requirements established in the guidelines, then the 

EAC certifies the voting system. Election officials use this information to help them know that 

they are procuring high-quality, reliable, voting systems. Certain states only allow their officials to 

procure and use voting systems that have been certified to the VVSG. Other states use the standard 

by itself, and still others use the testing program’s labs to help with their own certifications. 

In order to ensure that the EAC is setting a standard of modern quality that helps ensure voting 

systems are secure, accessible, up-to-date and functional, the EAC’s Testing and Certification 

program works to update the standard and its underlying components. In FY 2019, EAC made 

significant progress in the continued crafting and presentation of the newest set of standards, 

VVSG 2.0. This certification standard includes modern security, accessibility, and functionality 

standards. Technology, its uses, and the threats against it, is changing, and EAC is working to 

help ensure voting systems are ready for current challenges. The VVSG 2.0 draft requirements

were drafted and reviewed by the Technical Guidelines Development Committee during their 

September 2019 meeting. 

In addition to the work on VVSG 2.0, the EAC’s Testing and Certification program tested and 

certified eleven voting systems. To continue EAC cybersecurity efforts, the program provided 

Election Technology and Security Training to over 400 state and local election officials in three

states across the country. Election officials are managers of complex IT systems, and EAC uses its

unique ability to collect information and practices from around the country to help election 

officials be effective IT managers. The training prepares election officials to have a better

understanding of how to best manage and secure their IT systems in their states. 

The Testing and Certification program also provided risk-limiting audit (RLA) assistance to states

to several states. Some assistance included drafting protocols and providing hands-on training 

for pilot RLAs, and some assistance involved discussions about how RLAs could be implemented 

in particular jurisdictions.

These on-going, regular efforts to assist election officials are critical to successful operation of the 

program. Thousands of election jurisdictions around the country are continually researching and 
Election Assistance Commission

FY 2019 Agency Financial Report 

18 

procuring voting equipment, and the EAC’s Testing and Certification Division helps them 

navigate this process with confidence. 

Additional Information Regarding Agency Management and Operations 

The EAC leadership regularly works to further the mission of the agency by providing EAC 

staff the necessary resources to improve performance and strengthen internal controls that will 

maximize the operation of the agency. This program primarily supports the the strategic goals 

listed below.

Current Strategic Plan (2018-2022) Goals: 

• Operate: Ensure continued effective operation of the EAC in order to achieve its goals while

acting as good stewards of public funds.

During FY 2019, the EAC held a Standards Boards and Board of Advisors meeting in April 

pursuant to the Help America Vote Act. The Advisory Boards reviewed the next generation of 

VVSG, discussed the intent and application process for newly appropriated HAVA funding, 

examined election security efforts and tackled other timely election-related issues, such as disaster 

recovery contingency planning. 

Pursuant to initiatives for government reform, the EAC is actively working with the Office of 

Management and Budget and looking at our funding mechanism with NIST. In addition, the 

Office of Personnel Management (OPM) completed an assessment of our structure and positions 

that will contribute to the creation of the Human Resources Plan, address EAC’s planning and 

strategy processes, and evaluate internal policies and procedures. 

The EAC continues to focus on establishing sound systems and policies and procedures, working 

with managers on the relationship between budget and performance, maximizing efficient use of 

staff and financial resources, and training EAC’s staff on financial management processes and 

their specific, individual responsibilities. Budget holders complete assessable unit risk and fraud 

assessment questionnaires and individual letters of assurance to assess risk to goal

accomplishment, and provide a review of the effectiveness of internal controls in their areas of 

responsibility for the fiscal year. The risk and fraud assessments and letters of assurance are 

reviewed by the Executive Director and the Financial Manager, and rolled into the agency’s 

Annual Statement of Assurance that is presented in this report. 

In FY 2019, the EAC continued to provide financial management tools and support to staff. 

Agency staff is able to utilize five automated systems (procurement, travel, purchase card, 

invoice, and time and attendance) via interagency agreements with the General Services 

Administration and the U.S. Department of Treasury Bureau of the Fiscal Service. The EAC staff 

Contracting Officer’s Representatives (CORs) were provided annual training and have access to 

free online COR and invoice approval training via the procurement service provider agency. 
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FY 2019 Agency Financial Report 

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FY 2019 Performance Summary 

The following table presents key EAC FY2019 program performance results data.

Performance Indicator

Type of 

Indicator Outcome

Program Area: Communications and 

Clearinghouse

Regularly issue information on EAC activities. Output Generated 47 news articles, 68 blogs posts, 

860 Facebook posts, 482 tweets.

Produce the annual report of EAC activities to 

Congress by January 31 of each year for the 

preceding year ending September 30, and other 

original documents.

Output February 2019 (extension due to lapse of 

funding). 

Program Area: Payments and Grants 

Consolidated Appropriations Act of 2018 Output Continuous monitoring of grant activities

Review financial and performance reports from 

grantees and notify recipients of reporting 

anomalies or failures to file within 30 days.

Output 100%

Program Area: Research 

Effectively and efficiently distribute 

federal resources to EAC stakeholders. 

Output Updated 12 state requests to the NVRA form, 

created 1 online tool for election research and 

data.

Serve as an expert on the administration of

American elections. 

Output Published 2 Deep Dives, 9 External Research 

Presentations 

Program Area: Testing and Certification

Test and certify voting systems. Output Certified 11 voting systems.

Produce voting system guidance for use in 

the field.

Output VVSG draft requirements were drafted and 

reviewed by TGDC.
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FY 2019 Agency Financial Report 

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Portfolio Analysis 

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

Reform Programs, and for FY 2008 only, Election Data Collection Grants. In FY 2019, the EAC 

received funds in the Salaries and Expenses appropriation of $9.2 million. The appropriation was 

used for a $1.25 million transfer to NIST, payroll, travel, rent, telecommunications, printing, 

contracts, supplies, subscriptions, equipment and software. 

I.C. FINANCIAL RESULTS

The following analysis is intended to provide information on the EAC’s financial results, position, 

and condition as portrayed in the financial statements and the notes to the statements presented in 

Sections II.D and II.E of this report. Changes in assets, liabilities, costs, revenues, obligations, and 

outlays are explained; comparisons are made between amounts in FY 2019 to FY 2018; and the 

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

changes provide context as to how the year’s activities impacted the agency’s financial position. 

Budgetary Resources

Budgetary resources are the amounts made available and their status at the end of the fiscal year.

The majority of EAC’s available budgetary resources are in the one year Salaries and Expenses

appropriation. Budgetary resources include new Budget Authority from annual Salaries and 

Expenses appropriations, unpaid obligations, recoveries, offsetting collections, carryover no year

grant funds, and unobligated balances. 

FY 2019, the available budgetary resources were $14.5 million, down from $396.5 million in FY 

2018. In FY 2019, as mentioned previously, the EAC’s appropriations totaled $9.2 million for 

Salaries and Expenses, including a $1.25 million non-expenditure transfer to NIST. 

Obligations Incurred decreased from $388.3 million in FY 2018 to $7.8 million in FY 2019. The 

decrease was due primarily to the security grants. The Unobligated Balance – Apportioned 

decreased from $1.8 million in FY 2018 to $1.6 million in FY 2019. 

Financial Position

Assets 

The EAC had $10.1 million in total assets (Fund Balance with Treasury; Accounts Receivable; 

Property, Equipment, and Software; and Other Assets) as of September 30, 2019, compared to 

$12.8 million in FY 2018. 

Liabilities 

The EAC had total liabilities (Accounts Payable, accrued salaries and benefits, and unfunded 

leave) of $678,350 as of September 30, 2018. Liabilities decreased to $645,871 as of September 

30, 2019. 
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FY 2019 Agency Financial Report 

21 

Net Position

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

$12.2 million in FY 2018, to $9.5 million in FY 2019. 

Results of Operations 

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

programs: Analyze; Build; Study, Distribute; and Operate. Costs specifically identified with each 

of the programs, such as direct personnel costs and specific program contract expenses, are 

allocated to the programs directly. Other general agency overhead costs, such as rent, information 

technology, and financial management, are allocated on a per employee basis. The 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.

The Total Net Cost of Operations (expenses in the Salaries and Expenses, and Election Reform 

Programs appropriations) for the EAC was $388.6 million (due to appropriation of the security 

grants) for Fiscal Year 2018, decreasing to $9 million in FY 2019. 

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. Code 3515(b). The statements 

have been prepared from the books and records of the EAC 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 during execution of the budget, which are 

prepared from the same books and records. 

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

Government, a sovereign entity. 
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FY 2019 Agency Financial Report 

22 

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

COMPLIANCE

Internal Control Environment

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

effective internal controls. The 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. 

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

controls with the aim of ensuring that: 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 operational 

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 unqualified assurance that internal control over financial reporting is 

effective, ensuring 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. The EAC ensures that assets are properly acquired and used, and 

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

Laws that help the 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 internal controls (FMFIA Section 2) and financial management systems (FMFIA 

Section 4) that protect the integrity of Federal programs. 

Entity-Wide Security Program 

The EAC’s Information Technology (IT) staff explores innovations to update and improve 

network services for security, availability, efficiency, and productivity. Currently, the EAC 

operates its own infrastructure, using GSA’s network backbone for security purposes. The EAC 

IT staff of four that maintains personal computers, smart phones, and servers; provides software 

requested by EAC staff, remote access services, Voice Over Internet Protocol and Interactive 

Voice Response telecommunications tools; and performs vulnerability scans (in addition to GSA’s 

backbone 
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FY 2019 Agency Financial Report 

23 

infrastructure scans). IT staff remediates and updates security patches so that staff is equipped to

perform work both on- and off-site in a secure environment. 

GSA manages a firewall, external intrusion detection, T1 lines, and routers and switches for 

Federal Information Security Management Act (FISMA) compliance on EAC’s behalf. The EAC’s 

cybersecurity management needs are covered by GSA through an annual Memorandum of 

Understanding for IT services and equipment at $28,000 for FY 2019. The agreement funds the 

tools that enable GSA to continuously monitor EAC's IT systems security as described in OMB M10-15, FY 2010 Reporting Instructions for the FISMA and Agency Privacy Management, dated

April 21, 2010.

Federal Information Security Management Act

The EAC was overall in compliance with the Federal Information Security Management Act at the 

end of FY 2019. The audit will be available on EAC’s website. 

Audit Follow-Up

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

operations. The Office of the Chief Financial Officer (OCFO) works closely with the EAC 

management and the OIG to complete actions necessary to respond to audit findings. The EAC’s 

Inspector General’s statement of major management and performance challenges are documented in 

Section III.A. of this report. The 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,” the 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 2019 financial statement audit report identified no material weaknesses in internal 

control over financial reporting. 

Inspector General Act Amendments of 1988

The EAC Office of the Inspector General audits HAVA funds administered by recipients of 

HAVA payments and grants, and transmits OMB Circular A-133 single audit reports that present 

findings on HAVA funds to the EAC. The principal recipients of HAVA payments and grant funds 

are state governments. 
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FY 2019 Agency Financial Report 

24 

Fraud Reduction Report

Pursuant to the Fraud Reduction and Data Analytics Act of 2015 (Public Law 114-186, 32 U.S. 

Code 3321 note), EAC is reporting on its fraud reduction efforts since the final quarter of FY 2019 

in three key areas:

I. Implementation of financial and administrative controls

Financial and administrative controls are described in the EAC’s Annual Accounting Handbook, 

Annual Financial Statement Preparation Guide, Procurement Handbook, Budget Policy, 

Administrative Control of Funds Policy, Internal Control Procedures, Grants Handbook, and 

Travel Handbook. Standard Forms 49 Requisitions are used for credit card approvals. The forms 

are used to reconcile monthly purchase card statements in the Citi system, entered by cardholders

and reviewed and approved by the Financial Manager as cardholder agency point of contact. 

Financial and administrative controls are further described in annual cycle memoranda prepared as

part of the annual financial statement audit, which lasts from April through mid-November. The 

memos are in the areas of: Fund Balance with Treasury, Accounts Receivable, Accounts Payable, 

Payroll, Budget, Cash Receipts and Disbursements, and Undelivered Orders. 

II. The fraud risk principle in the Standards for Internal Control in the Government (the GAO

Green Book)

Principle 8 of the Green Book requires agency management, “to consider the potential for fraud 

when identifying, analyzing, and responding to risks.” The Green Book defines fraud as 

“obtaining something of value through willful misrepresentation.” Historically, the EAC has not 

experienced willful fraud. Management views the risk of fraud as minimal given the agency’s size, 

budget, existence of shared service providers, and a culture of zero tolerance for fraud. Further, 

management signed a document stating that they are not aware of instances of fraud in FY 2019. 

Annually, EAC completes the independent financial statement auditor’s comprehensive 

Fraud, Waste and Abuse questionnaire. The nineteen point questionnaire is completed 

and signed each year by the agency’s Chair, Executive Director, General Counsel and 

CFO. Assertions are made that managers are not aware of allegations of fraud or 

suspected fraud, and that they understand risks specific to EAC. 

The Green Book identifies three types of fraud: 

1. Fraudulent financial reporting (intentional misstatements or omissions or disclosures)

2. Misappropriation of assets (theft, embezzlement, fraudulent payments)

3. Corruption (bribery and other illegal acts)

Another fraud risk is misconduct (e.g., waste or abuse of government resources). 
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FY 2019 Agency Financial Report 

25 

The EAC, has built-in segregation of duties with a contractual financial, travel and procurement 

services provider at another federal agency via interagency agreement, a second federal agency 

provider for payroll and human resources services, a third interagency for a large contract, and a 

full-time Inspector General. Most financial transactions involve three individuals. 

The EAC is assessed to have a low risk of fraud in these areas: 

• Fraudulent financial reporting risk: financial reporting is provided by one of the four OMBauthorized financial service providers. All financial reporting, including financial statements

and necessary journal entries, is reviewed and approved by the EAC CFO prior to publication.

Further, the EAC has undergone a financial statement audit by an independent financial 

auditor each year since Fiscal Year 2008. The auditors’ working papers are reviewed by the 

agency’s Inspector General.

• Misappropriation of assets: assets are recorded in the general ledger, inventoried and tagged by 

two offices within the EAC, and schedules of depreciation of the assets are maintained by the

financial services provider. The EAC’s building and its assets are secured by the Federal

Protective Service via interagency agreement. Property removed from the building requires

presentation of a signed property pass to a guard.

• Bribery: contracting officers are located at other agencies, the EAC staff serves as vendor 

contract proposal evaluation panel reviewers, funds for procurements are certified by the CFO, 

and staff is made aware in mandatory training and at all staff meetings that taking gifts valued

over $20 is prohibited.

• Illegal acts: staff is encouraged to report perceived illegal acts to the General Counsel as Ethics 

Officer, supervisors, and the Inspector General. The EAC’s Human Resource Handbook

provides thorough descriptions of standards of conduct, fitness for duties based on character

and conduct, disciplinary and adverse actions for misconduct, and ethics.

• Waste of government resources and abuse of authority or position: the IG maintains a fraud,

waste, abuse hotline. Staff and the public can call the hotline anonymously to report perceived

cases of fraud, waste, or abuse. Further, staff is provided with Whistleblower training, so they

know how to protect themselves from repercussions related to reporting wrongdoing. Other

EAC mandatory training includes Privacy Act and IT security training. Standards of conduct

are laid out in the EAC’s Office of Human Resources Handbook, available on the agency’s

shared drive, and reviewed at New Employee Orientation. The manual specifies that the

agency’s General Counsel serves as the Designated Agency Ethics Officer, who should be

consulted on specific issues of concern. 

Fraud risk factors in the Green Book are incentive/pressure, opportunity (e.g., absence of or 

ineffective controls, override of controls), and attitude/rationalization. The risk factors are used by 

management to identify fraud risks. As mentioned above, the EAC relies on Inspector General and 

internal auditors and other internal and external individuals to provide information about suspected 

fraud or allegations of fraud. 

The risk of opportunity is greatly reduced with financial staff at the EAC separate from the 

accounting and procurement service provider. Independent auditors recommendations are taken 

seriously and implemented timely, at times in conjunction with the service providers’ controls. The 

EAC does not have identified material weaknesses in internal controls over operations in FY 2019. 
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FY 2019 Agency Financial Report 

26 

Any management override of controls would necessarily involve staff at two federal agencies since 

the EAC does not have “write” access to the core financial system. 

Management communicates the consequences of committing fraud in mandatory Ethics, 

Prohibited Practices and Whistleblower Protection, Information Technology Security, Privacy Act, 

and Privacy Rules of Behavior training. 

III. OMB Circular A-123 with respect to leading practices for managing fraud risk

The EAC management and its independent financial statement and Federal Information Security 

Management Act (FISMA) auditors are responsible for disclosing detected risks. This and other 

information helps management identify and assess risks. Assessment of fraud risk is crucial so that 

it can be mitigated or prevented and does not adversely impact agency mission and operations 

objectives by affecting its ability to effectively and efficiently use its resources. 

The EAC is required to report on progress in identifying risks and vulnerabilities to fraud, 

including the areas of: payroll, beneficiary payments (such as life insurance), grants, large 

contracts, information technology and security, asset safeguards, purchase cards, and travel cards. 

the EAC has assessed its vulnerabilities to fraud in these areas as low, taking into account use of 

another federal agency for payroll, IT and human resources services, and a second federal agency 

for accounting services, disbursement of grant funds, and purchase and travel card programs. Via 

interagency agreement, two agencies award EAC’s large contracts. As mentioned elsewhere in this 

report, assets are protected by Federal Protective Service guards assigned to the building, and by a 

key card system protecting the EAC’s suite within the building. 

Due to its size and relationship with federal service providers, where the majority of financial 

transactions involve separation of duties and involvement by at least three staff, the risks within 

the agency are assessed to be low. Grant risks are remediated by Inspector General audits and 

agency assistance to grantees on technical assistance and audit resolution. The EAC controls 

include controls related to its use of service organizations. Separation of duties between federal 

entities is laid out in the roles and responsibilities sections of their interagency agreements. 

The EAC utilizes automated time and attendance, procurement, contract payments, and travel and 

purchase card systems housed at other agencies. The EAC has agency points of contact for 

purchase and travel cards, as does the financial service provider. The EAC’s CFO reviews all travel 

receipts for reimbursement before approving travel vouchers, generally entered into the travel 

system by EAC travel arrangers. Travel service provider accountants reconcile EAC’s Central 

Billing Account each month. Agency-specified types of vendors allowed for use are established 

under the procurement card program via the use of Master Contract Codes. All other vendors will 

result in a card decline until the type of procurement is reviewed and access is given temporarily 

for the purchase. 

Grantees, as well as vendors, are required to be registered in the federal System for Award

Management (SAM). Grantee requests for payment are reviewed by several staff at EAC, recorded

on route slips prior to sending the requests to the service provider’s Accounts Payable office. 

Further, grantee Federal Financial Reports are reviewed and analyzed each year. The process

includes confirmation of period of performance of the award, report type (annual or final), Dun & 
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FY 2019 Agency Financial Report 

27 

Bradstreet Number and Employer Identification Number. Total award, Required Match, and 

Program Incomes are reviewed for accuracy. The reports are reconciled against prior year

submission to analyze spending rates over time. Questions and errors are relayed back to the 

grantee timely. EAC creates reports tracking key metrics related to expenditure of

federal funds and State match. Grant expenditure reports are provided to Congress and posted on 

eac.gov. 

Requests for payments to vendors are reviewed by trained and certified Contracting Officer’s 

Representatives. Payments are made by service provider staff for interagency agreements, and in

the Internet Payment Platform for the two federal agencies that award contracts on EAC’s behalf

for commercial vendors by EAC CORs. If a vendor claims nonpayment of bills, Treasury reports 

are requested to provide banking information confirming payment with banking information. It 

should be noted that grantees and vendors contact the agency if a payment is not received timely,

which could be an indicator of fraud, so misdirection of funds is considered low risk. Financial 

system controls prevent vendor overpayment. 

Further, CORs and the EAC CFO provide quarterly accruals and deobligations to the financial 

service provider on all open obligations. The CFO is required to certify that the open obligations 

are valid. The certification is reviewed by the financial statement auditors each year. 

Each year, the EAC performs an Improper Payments Elimination and Recovery Improvement Act 

review for the financial statement audit. Due to the budget of the agency, EAC reports that the 

IPERIA is not applicable in the annual Agency Financial Report. 

Strategies, Procedures and Other Steps 

The EAC is required to report progress to curb fraud by establishing strategies, procedures, and 

other steps. Steps include agency requirement for ethics training for all staff, which includes how 

to avoid a conflict of interest. Several staff members complete confidential and public Financial 

Disclosure reports annually. The reports are reviewed by the Ethics Officer for conflicts of interest. 

Further, Contracting Officer’s Representatives (about one-third of all full-time staff) are required

to take Ethics in Contracting training, which further reinforces the need to avoid conflicts of 

interest in procurements. Contracting Officer’s Representative can also take a free online course 

entitled Procurement Fraud Indicators. 

Cards and system access are cancelled for exiting employees. The financial service provider asks

for annual certification from the CFO on all systems access by EAC staff. The process includes 

review of roles and transaction amount limits for authorized staff. 

The EAC has started an A-123 revised review of information technology by an independent party. 

Plans are that the review structure established to review IT for risk including fraud risk will be 

used in future for other functions of the agency. If risks are identified, the EAC would proceed 

with actions such as reallocation of roles to enhance segregation of duties. 

The EAC undergoes annual financial statement and Federal Information Security Management Act 

audits. The EAC reviews grant audit findings and works with grantees pre- and post-audit. 
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FY 2019 Agency Financial Report 

28 

The EAC reviews financial transactions for error and potential fraud, and the financial service 

provider has staff accountants with CPAs who review financial transactions. Generally, the 

requestor of a transaction, his or her supervisor, and the EAC funds certifier sign off on 

transactions. The service providers obligate procurement funds. The EAC analyzes its shared 

service provider’s regular audits throughout the year including purchase card payment timeliness, 

completeness of card logs, and accuracy of payments; Internet Payment Platform invoice postpayment audits of timeliness and accuracy, prompt pay reports; accounts payable delinquencies; 

and travel audits of compliance with the Federal Travel Regulation, attachment of required 

receipts to vouchers, and accuracy and timeliness of payment amounts. 
Election Assistance Commission

FY 2019 Agency Financial Report 

29 

Christy A. 

Annual Assurance Statement on Internal Control

November 18, 2019 

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 (FMFIA) and Office of Management and Budget 

(OMB) Circular A-123, Management's Responsibility for Enterprise Risk Management and 

Internal Control. Internal control is an integral component of EAC's management, providing 

reasonable assurance that the following objectives are being achieved: effectiveness and efficiency 

of operations, reliability of financial reporting, and compliance with applicable laws and 

regulations. 

The 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. With respect to 

assessing internal control designed to ensure the reliability of financial reporting, the 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 functions (accounting, budget, 

payments and grants, and procurement), and administrative offices.

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

the evaluation conducted by its independent auditors and the Inspector General. 

In FY 2019, the auditors found no material weaknesses or significant deficiencies in internal 

controls over financial management reporting. Further, the auditors found no instances of 

noncompliance with laws and regulations. 

The Commission provides an unmodified statement of assurance that internal control and financial 

management systems meet the objectives of the Federal Managers’ Financial Integrity Act.

Chairwoman
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FY 2019 Agency Financial Report 

30 

SECTION II

 Financial Section 
Telephone: 301-734-3104 https://www.eac.gov/inspector-general/, E-mail: eacoig@eac.gov Toll free: 1- 866-552-0004

OFFICE OF THE INSPECTOR GENERAL

November 18, 2019

Christy McCormick, Chairwoman

U.S. Election Assistance Commission

1335 East-West Highway, Suite 4300

Silver Spring, MD 20910

Re: Audit of the U.S. Election Assistance Commission’s Financial Statements for Fiscal Year 2019

(Assignment No. I-PA-EAC-01-19)

Introduction

The Chief Financial Officer’s (CFO) Act of 1990 (P.L. 101-576), as amended, requires the Inspector 

General for the U. S. Election Assistance Commission (EAC) or an independent external auditor, as 

determined by the Inspector General, to audit EAC’s financial statements. The independent public 

accounting firm of Brown & Company CPAs, PLLC (Brown & Company) performed the audit of the 

EAC’s financial statements under contract with the Office of Inspector General (OIG). The contract 

required the audit to be performed in accordance with auditing standards generally accepted in the 

United States of America; Government Auditing Standards issued by the Comptroller General of the 

United States; Office of Management and Budget (OMB) Bulletin 19-03, Audit Requirements for 

Federal Financial Statements; and the Financial Audit Manual issued jointly by the Council of the 

Inspectors General on Integrity and Efficiency (CIGIE) and the Government Accountability Office.

Results of Audit

In Brown & Company’s opinion, the financial statements present fairly, in all material respects, the 

financial position of EAC as of September 30, 2019 and 2018, and its net costs, changes in net 

position, budgetary resources, and custodial activities for the years then ended, in accordance with 

accounting principles generally accepted in the United States of America. Within the limitations on

the scope of their testing of controls and compliance as described in the report, Brown & Company 

also reported no material weaknesses in control and no instances of noncompliance with laws, 

regulations, or significant provisions of contracts or grant agreements.
2

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 qualifications 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 draft audit report;

• Performed other procedures we deemed necessary; and

• Coordinated issuance of the audit report.

Brown & Company is responsible for the attached auditor’s report and the conclusions expressed in 

the report. Our review of the contractor’s performance was not an audit of the financial 

statements, internal controls, or compliance, and was not sufficient to conclude on any of those 

subjects of the audit. Consequently, the OIG does not express any opinion on EAC’s financial 

statements or conclusions on the effectiveness of internal control or compliance with laws,

regulations, or provisions of contracts or grant agreements.

Report Distribution

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

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

been implemented. Therefore, we will report the issuance of this audit report in our next 

semiannual report to Congress. The distribution of this report is not limited and copies are available

for public inspection on the EAC OIG website (EAC IG Website) and on CIGIE’s oversight web page 

(Oversight.gov).

The OIG appreciates the courtesies and cooperation EAC extended to Brown & Company and the 

OIG during the audit. If you, or your staff, has any questions, please contact me at (301) 734-3104.

Sincerely,

Patricia L. Layfield

Inspector General

Attachment
0

ELECTION ASSISTANCE COMMISSION

INDEPENDENT AUDITOR’S REPORT

AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED SEPTEMBER 30, 2019 AND 2018 

TABLE OF CONTENTS

INDEPENDENT AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS ............ ...1 

BALANCE SHEET ................................................................................................................. 6 

STATEMENT OF NET COST ................................................................................................ 7 

STATEMENT OF CHANGES IN NET POSITION .................................................................8 

STATEMENT OF BUDGETARY RESOURCES ....................................................................9 

NOTES TO THE FINANCIAL STATEMENTS .................................................................... 10 
1

INDEPENDENT AUDITOR’S REPORT 

U.S. Election Assistance Commission

Washington, D.C.

In our audits of the fiscal years 2019 and 2018 financial statements of the U.S. Election Assistance 

Commission (EAC), we found

• EAC’sfinancial statements as of and for the fiscal years ended September 30, 2019, and 2018,

are presented fairly, in all material respects, in accordance with U.S. generally accepted

accounting principles;

• no material weaknesses in internal control over financial reporting based on the limited

procedures we performed; and

• no reportable noncompliance for fiscal year 2019 with provisions of applicable laws,

regulations, contracts, and grant agreements we tested.

The following sections discuss in more detail (1) our report on the financial statements, which includes 

requiredsupplementary information(RSI) andotherinformationincluded withthefinancialstatements;

(2) our report on internal control over financial reporting; and (3) our report on compliance with laws,

regulations, contracts, and grant agreements.

Report on the Financial Statements

In accordance with the provisions of Accountability of Tax Dollars Act of 2002 (ATDA) (Pub. L. No.

107-289), we have audited EAC’s financial statements. EAC’s financial statements comprise the

balance sheets as of September 30, 2019, and 2018; the related statements of net cost, changes in net

position, and budgetary resources for the fiscal years then ended; and the related notesto the financial

statements.

We conducted our audits in accordance with U.S. generally accepted government auditing standards and the 

provisions of OMB Bulletin No.19-03, Audit Requirements for Federal Financial Statements. We believe

that the audit evidence we obtained issufficient and appropriate to provide a basisfor our audit opinions.

Management’sResponsibility

EAC’s management isresponsible for (1) the preparation and fair presentation of these financial statements

in accordance with U.S. generally accepted accounting principles; (2) preparing, measuring, and presenting

the RSI in accordance with U.S. generally accepted accounting principles; (3) preparing and presenting

other information included in documents containing the audited financial statements and auditor’s report,

and ensuring the consistency of that information with the audited financial statements and the RSI; and (4)

maintaining effective internal control over financial reporting, including the design, implementation, and

maintenance of internal control relevant to the preparation and fair presentation offinancial statements that

are free from material misstatement, whether due to fraud or error.
2

Auditor’s Responsibility

Our responsibility isto express an opinion on these financial statements based on our audits. U.S. generally

accepted government auditing standards require that we plan and perform the audit to obtain reasonable

assurance about whether the financial statements are free from material misstatement. We are also

responsible for applying certain limited procedures to RSI and other information includedwith the financial

statements.

An audit offinancial statements involves performing proceduresto obtain audit evidence about the amounts

and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,

including the auditor’s assessment ofthe risks of material misstatement ofthe financial statements, whether

due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to

the entity’s preparation and fair presentation of the financial statements in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit offinancial

statements also involves evaluating the appropriateness of the accounting policies used and the

reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overall 

presentation of the financial statements. Our audits also included performing such other procedures as we

considered necessary in the circumstances.

Opinion on Financial Statements

In our opinion, EAC’s financial statements present fairly, in all material respects, EAC’s financial

position as of September 30, 2019, and 2018, and its net cost of operations, changes in net position, and

budgetary resources for the fiscal years then ended in accordance with U.S. generally accepted accounting

principles.

Other Matters

RequiredSupplementary Information

U.S. generally accepted accounting principles issued by the Federal Accounting Standards

Advisory Board (FASAB) require that the RSI be presented to supplement the financial

statements. Although the RSI is not a part of the financial statements, FASAB considers this

information to be an essential part of financial reporting for placing the financial statements in

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

procedures to the RSI in accordance with U.S. generally accepted government auditing

standards, which consisted of inquiries of management about the methods of preparing the RSI

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

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

financial statements, in order to report omissions or material departures from FASAB

guidelines, if any, identified by these limited procedures. We did not audit and we do not

express an opinion or provide any assurance on the RSI because the limited procedures we

applied do not provide sufficient evidence to express an opinion or provide any assurance.
3

Other Information

EAC’s other information contains a wide range of information, some of which is not directly

related to the financial statements. This information is presented for purposes of additional

analysis and is not a required part of the financial statements or the RSI. We read the other 

information included with the financial statements in order to identify material inconsistencies,

if any, with the audited financial statements. Our audit was conducted for the purpose of

forming an opinion on EAC’s financial statements. We did not audit and do not express an

opinion or provide any assurance on the other information.

Report on Internal Control over Financial Reporting

In connection with our audits of EAC’s financial statements, we considered EAC’s internal control

over financial reporting, consistent with our auditor's responsibility discussed below. We performed

our procedures related to EAC’s internal control over financial reporting in accordance with U.S.

generally accepted government auditing standards.

Management’s Responsibility

EAC’s management is responsible for maintaining effective internal control over financial reporting,

including the design, implementation, and maintenance of internal control relevant to the preparation 

and fair presentation of financial statements that are free from material misstatement, whether due to

fraud or error.

Auditor’s Responsibility

In planning and performing our audit of EAC’s financial statements as of and for the year ended

September 30, 2019, in accordance with U.S. generally accepted government auditing standards, we

considered the EAC’s internal control over financial reporting as a basisfor designing audit procedures

that are appropriate in the circumstances for the purpose of expressing our opinion on the financial

statements, but not for the purpose of expressing an opinion on the effectiveness of EAC’s internal

control over financial reporting. Accordingly, we do not express an opinion on EAC’s internal control

over financial reporting. We are required to report all deficiencies that are considered to be significant 

deficiencies or material weaknesses. We did not consider all internal controls relevant to operating

objectives, such asthose controls relevant to preparing performance information and ensuring efficient

operations.

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.
4

Definition and Inherent Limitations of Internal Control over Financial Reporting

An entity’s internal control over financial reporting is a process effected by those charged with

governance, management, and other personnel, the objectives of which are to provide reasonable

assurance that (1) transactions are properly recorded, processed, and summarized to permit the

preparation of financial statements in accordance with U.S. generally accepted accounting principles,

and assets are safeguarded against loss from unauthorized acquisition, use, or disposition, and (2)

transactions are executed in accordance with provisions of applicable laws, including those governing

the use of budget authority, regulations, contracts, and grant agreements, noncompliance with which

could have a material effect on the financial statements.

Because of itsinherent limitations, internal control over financial reporting may not prevent, or detect

and correct, misstatements due to fraud or error.

Results of Our Consideration of Internal Control over Financial Reporting

Our consideration of internal control was for the limited purpose described above, and was not

designed to identify all deficiencies in internal control that might be material weaknesses and

significant deficiencies or to express an opinion on the effectiveness of EAC’s internal control over

financial reporting. Given these limitations, during our audit, we did not identify any deficiencies in

internal control over financial reporting that we consider to be material weaknesses. However,

material weaknesses may exist that have not been identified.

Intended Purpose of Report on Internal Control over Financial Reporting

The purpose of this report issolely to describe the scope of our consideration of EAC’s internal control

over financial reporting and the results of our procedures, and not to provide an opinion on the

effectiveness of the EAC’s internal control over financial reporting. This report is an integral part of

an audit performed in accordance with U.S. generally accepted government auditing standards in

considering internal control over financial reporting. Accordingly, this report on internal control over

financial reporting is not suitable for any other purpose.

Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements

In connection with our audits of EAC’s financial statements, we tested compliance with selected

provisions of applicable laws, regulations, contracts, and grant agreements consistent with our

auditor’s responsibility discussed below. We caution that noncompliance may occur and not be

detected by these tests. We performed our tests of compliance in accordance with U.S. generally

accepted government auditing standards.

Management’s Responsibility

EAC’s management is responsible for complying with laws, regulations, contracts, and grant 

agreements applicable to EAC.
5

Auditor’s Responsibility

Our responsibility is to test compliance with selected provisions of applicable laws, regulations,

contracts, and grant agreements applicable to EAC that have a direct effect on the determination of

material amounts and disclosures in EAC’s financial statements, and perform certain other limited

procedures. Accordingly, we did not test compliance with all laws, regulations, contracts, and grant

agreements applicable to EAC.

Results of Our Testsfor Compliance with Laws, Regulations, Contracts, and Grant Agreements

Our tests for compliance with selected provisions of applicable laws, regulations, contracts, and grant

agreements disclosed no instances of noncompliance for fiscal year 2019 that would be reportable

under U.S. generally accepted government auditing standards. However, the objective of our tests was

not to provide an opinion on compliance with laws, regulations, contracts, and grant agreements 

applicable to EAC. Accordingly, we do not express such an opinion.

Intended Purpose of Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements

The purpose of this report is solely to describe the scope of our testing of compliance with selected

provisions of applicable laws, regulations, contracts, and grant agreements, and the results of that

testing, and not to provide an opinion on compliance. This report is an integral part of an audit

performed in accordance with U.S. generally accepted government auditing standards in considering

compliance. Accordingly, this report on compliance with laws, regulations, contracts, and grant

agreements is notsuitable for any other purpose.

This report is intended for the information and use of the EAC management, OIG and the U.S. Congress, 

and is made available to the public.

Greenbelt, Maryland

November 18, 2019
The accompanying notes are an integral part of these financial statements.

6

2019 2018

Assets:

Intragovernmental

Fund Balance With Treasury (Note 2) $ 9,241,889 $ 11,882,152

Accounts Receivable (Note 3) 6,400 -

Other (Note 4) 614,764 652,925

Total Intragovernmental 9,863,053 12,535,077

Accounts Receivable, Net (Note 3) 33,460 1,358

Property, Equipment, and Software, Net (Note 5) 249,426 306,689

Total Assets $ 10,145,939 $ 12,843,124

Liabilities:

Intragovernmental

Accounts Payable $ 25,370 $ 30,019

Other (Note 7) 43,447 34,806

Total Intragovernmental 68,817 64,825

Accounts Payable 235,545 224,076

Other (Note 7) 341,509 389,449

Total Liabilities $ 645,871 $ 678,350

Net Position:

Unexpended Appropriations - Other Funds $ 9,411,674 $ 12,124,765

Cumulative Results of Operations - Other Funds 88,394 40,009

Total Net Position $ 9,500,068 $ 12,164,774

Total Liabilities and Net Position $ 10,145,939 $ 12,843,124

ELECTION ASSISTANCE COMMISSION

BALANCE SHEET

AS OF SEPTEMBER 30, 2019 AND 2018

(In Dollars)
The accompanying notes are an integral part of these financial statements.

7

2019 2018

Gross Program Costs (Note 9):

Program A : Analyze

Gross Costs $ 1,081,987 $ 1,681,625

Less: Earned Revenue (770) -

Net Program Costs $ 1,081,217 $ 1,681,625

Program B : Build

Gross Costs $ 876,900 $ 2,312,486

Less: Earned Revenue (624) -

Net Program Costs $ 876,276 $ 2,312,486

Program C : Distribute

Gross Costs $ 2,416,573 $ 2,889,725

Less: Earned Revenue (1,719) -

Net Program Costs $ 2,414,854 $ 2,889,725

Program D: Operate

Gross Costs $ 4,621,269 $ 381,763,206

Less: Earned Revenue (3,287) -

Net Program Costs $ 4,617,982 $ 381,763,206

Net Cost of Operations $ 8,990,329 $ 388,647,042

ELECTION ASSISTANCE COMMISSION

STATEMENT OF NET COST

FOR THE YEARS ENDED SEPTEMBER 30, 2019 AND 2018

(In Dollars)
The accompanying notes are an integral part of these financial statements.

8

2019 2018

Consolidated Total Consolidated Total

Unexpended Appropriations:

Beginning Balances $ 12,124,765 $ 13,066,800

Adjustments

Beginning Balances, as Adjusted 12,124,765 13,066,800

Budgetary Financing Sources:

Appropriations Received 9,200,000 390,100,000

Appropriations Transferred In/Out (1,250,000) (1,500,000)

Other Adjustments (1,833,388) (1,096,406)

Appropriations Used (8,829,703) (388,445,629)

Total Budgetary Financing Sources (2,713,091) (942,035)

Total Unexpended Appropriations $ 9,411,674 $ 12,124,765

Cumulative Results of Operations:

Beginning Balances $ 40,009 $ 31,278

Adjustments

Beginning Balances, as Adjusted 40,009 31,278

Budgetary Financing Sources:

Appropriations Used 8,829,703 388,445,629

Other Financing Sources (Non-Exchange):

Imputed Financing Sources 209,011 210,144

Total Financing Sources 9,038,714 388,655,773

Net Cost of Operations (8,990,329) (388,647,042)

Net Change 48,385 8,731

Cumulative Results of Operations $ 88,394 $ 40,009

Net Position $ 9,500,068 $ 12,164,774

ELECTION ASSISTANCE COMMISSION

STATEMENT OF CHANGES IN NET POSITION

FOR THE YEARS ENDED SEPTEMBER 30, 2019 AND 2018

(In Dollars)
The accompanying notes are an integral part of these financial statements.

9

2019 2018

Budgetary Resources:

Unobligated balance from prior year budget authority, net $ 6,570,730 $ 7,921,422

Appropriations 7,950,000 388,600,000

Borrowing authority - -

Contract Authority - -

Spending authority from offsetting collections 6,400 -

Total Budgetary Resources $ 14,527,130 $ 396,521,422

Status of Budgetary Resources:

New obligations and upward adjustments (total) $ 7,824,216 $ 388,256,900

Unobligated balance, end of year:

 Apportioned, unexpired account 1,563,271 1,776,917

 Exempt from apportionment, unexpired accounts - -

 Unapportioned, unexpired accounts 1,596,066 1,557,795

Unexpired unobligated balance, end of year 3,159,337 3,334,712

Expired unobligated balance, end of year 3,543,577 4,929,810

Unobligated balance, end of year (total) 6,702,914 8,264,522

Total Budgetary Resources $ 14,527,130 $ 396,521,422

Outlays, net:

Outlays, net, (total) 8,756,875 388,466,668

Distributed Offsetting Receipts

Agency outlays, net $ 8,756,875 $ 388,466,668

ELECTION ASSISTANCE COMMISSION

STATEMENT OF BUDGETARY RESOURCES

FOR THE YEARS ENDED SEPTEMBER 30, 2019 AND 2018

(In Dollars)
Election Assistance Commission

NOTES TO THE FINANCIAL STATEMENTS

10

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.

The four EAC commissioners are appointed by 

the president and confirmed by the United 

States Senate. EAC currently has three

commissioners. 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.

EAC has rights and ownership of all assets 

reported in these financial statements. EAC 

does not possess any non-entity assets.

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 
11

financial statements 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, a receivable is recorded. EAC has also 

made advance grant payments to the states for 

the primary purpose of replacing punch card or 

lever voting machines. The period of use of this 

grant money has expired. All unused funds that 

have not been returned have been recorded as a 

receivable. 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 non-governmental, as well as 

governmental, vendors.
12

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 2015.

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.
13

Prior to December 31, 1983, all employees were 

covered under the CSRS program. From 

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 2019 and 2018 to the extent directed by 

accounting standards.
14

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 

recorded as advances and are included in the 

balance sheet.

P. Classified Activities

Accounting standards require all reporting 

entities to disclose that accounting standards 

allow certain presentations and disclosures to be 

modified, if needed, to prevent the disclosure of 

classified information.
15

NOTE 2. FUND BALANCE WITH TREASURY

Fund balance with Treasury account balances as of September 30, 2019 and 2018, were as follows:

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).

NOTE 3. ACCOUNTS RECEIVABLE

Accounts receivable balances as of September 30, 2019 and 2018, were as follows:

2019 2018

Status of Fund Balance with Treasury:

Unobligated Balance

 Available $ 1,563,270 $ 1,776,917 

 Unavailable 5,139,643 6,487,605 

Obligated Balance Not Yet Disbursed 2,538,976 3,617,630 

Non-Budgetary FBWT - - 

Total $ 9,241,889 $ 11,882,152 

2019 2018

Intragovernmental

Accounts Receivable $ 6,400 $ -

Total Intragovernmental Accounts Receivable $ 6,400 $ -

With the Public

Accounts Receivable $ 33,460 $ 1,358

Allowance - -

Total Public Accounts Receivable $ 33,460 $ 1,358

Total Accounts Receivable $ 39,860 $ 1,358
16

The accounts receivable is primarily made up of moneys due from funds that had been advanced 

for services that were not used and employee receivables.

Historical experience has indicated that the majority of the receivables are collectible. There are 

no material uncollectible accounts as of September 30, 2019 and 2018.

NOTE 4. ADVANCES AND PREPAYMENTS

Advances and Prepayments balances as of September 30, 2019 and 2018, were as follows:

NOTE 5. PROPERTY, EQUIPMENT, AND SOFTWARE

Schedule of Property, Equipment, and Software as of September 30, 2019

Schedule of Property, Equipment, and Software as of September 30, 2018

2019 2018

Intragovernmental

Advances and Prepayments $ 614,764 $ 652,925

Other Assets - -

Total Intragovernmental OtherAssets $ 614,764 $ 652,925

With the Public

Grant Advances $ - $ -

Other Assets - -

Total Other Assets $ 614,764 $ 652,925

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Building $ - $ - $ -

Leasehold Improvements 1,205,830 1,205,830 -

Furniture & Equipment 1,149,097 979,561 169,536

Software 172,721 172,721 -

Construction-in-Progress - N/A -

Software-in-Development 79,890 N/A 79,890

Total $ 2,607,538 $ 2,358,112 $ 249,426

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Building $ - $ - $ -

Leasehold Improvements 1,205,830 1,205,830 -

Furniture & Equipment 1,149,097 922,299 226,798

Software 172,721 172,721 -

Construction-in-Progress - - -

Software-in-Development 79,891 - 79,891

Total $ 2,607,539 $ 2,300,850 $ 306,689
17

Depreciation expense was $57,263 and $84,755 for the twelve months ending September 30, 2019 

and 2018, respectively.

NOTE 6. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

The liabilities for EAC as of September 30, 2019 and 2018, 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. 

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, 2019 were as follows:

2019 2018

Unfunded Leave 194,492 268,038

Total Liabilities Not Covered by Budgetary Resources 194,492 $ $ 268,038

Total Liabilities Covered by Budgetary Resources 451,379 410,312

Total Liabilities Not Requiring Budgetary Resources - -

Total Liabilities $ 645,871 $ 678,350

Current Non Current Total

Intragovernmental

FECA Liability $ 6,450 $ - $ 6,450

Unemployment Insurance Liability - - -

Payroll Taxes Payable 36,997 - 36,997

 Custodial Liability - - -

Total Intragovernmental Other Liabilities $ 43,447 $ - $ 43,447

With the Public

 Payroll Taxes Payable $ 7,646 $ - $ 7,646

 Accrued Funded Payroll and Leave 139,371 - 139,371

 Unfunded Leave 194,492 - 194,492

 Custodial Liability - - -

Total Public Other Liabilities $ 341,509 $ - $ 341,509
18

Other liabilities account balances as of September 30, 2018 were as follows:

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.

In November 2013, the EAC signed a five year lease. Under the agreement, the last full year of the 

lease started Oct 1,2017 to September 30, 2018, Also, the agreement included one month, Oct 1, 

2018 to October 31, 2018. The new 10 year lease begins on November 1st. The first year of the 

new lease is from November 1, 2018 to September 30, 2019.

The operating lease amount does not include estimated payments for leases with annual renewal 

options.

Scheduled of Future Lease Payments

Current Non Current Total

Intragovernmental

FECA Liability $ 6,450 $ 6,450

Payroll Taxes Payable 28,356 - 28,356

Total Intragovernmental Other Liabilities $ 34,806 $ - $ 34,806

With the Public

 Payroll Taxes Payable $ 9,413 $ - $ 9,413

 Accrued Funded Payroll and Leave 111,998 - 111,998

 Unfunded Leave 268,038 - 268,038

Total Public Other Liabilities $ 389,449 $ - $ 389,449

Fiscal Year Office Space

2020 261,113 

2021 262,687 

2022 264,294 

2023 265,934 

2024 267,609 

Thereafter 1,110,816 

Total Future Payments $ 2,432,453 
19

NOTE 9. INTRA-GOVERNMENTAL COSTS AND EXCHANGE REVENUE

Intra-governmental 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:

NOTE 10. EXPLANATION OF DIFFERENCES BETWEEN THE SBR AND THE 

BUDGET OF THE U.S. GOVERNMENT

SFFAS No. 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling 

Budgetary and Financial Accounting, calls for explanation of differences between amounts 

reported in the Statement of Budgetary Resources and the actual balances published in the Budget 

of the U.S. Government (the President’s Budget). The President’s Budget that will include fiscal 

year 2019 actual budgetary execution information has not yet been published. The President’s 

Budget is scheduled for publication in February 2020 and can be found at the OMB website 

http://www.whitehouse.gov/omb. The 2020 Budget of the United States Government, with the 

“Actual” column completed for 2018, has been reconciled to the Statement of Budgetary Resources 

and there were no material differences..

2019 2018

Analyze Communications and Clearinghouse

 Intragovernmental Costs $ 268,709 Intragovernmental Costs $ 12,622

 Public Costs 813,278 Public Costs 1,669,003

Less: Earned Revenue (770)

 Total Costs 1,081,217 1,681,625

Build Testing and Certifications

 Intragovernmental Costs $ 217,775 Intragovernmental Costs $ 2,865,347

 Public Costs 659,125 Public Costs 378,897,859

Less: Earned Revenue (624)

 Total Costs 876,276 381,763,206

Distribute Research, Policy, and Programs

 Intragovernmental Costs $ 600,148 Intragovernmental Costs $ 21,541

 Public Costs 1,816,425 Public Costs 2,868,184

Less: Earned Revenue (1,719)

 Total Costs 2,414,854 2,889,725

Operate Fund and Oversee

 Intragovernmental Costs $ 1,147,677 Intragovernmental Costs $ 17,357

 Public Costs 3,473,592 Public Costs 2,295,129

Less: Earned Revenue (3,287)

 Total Costs 4,617,982 2,312,486

Total Intragovernmental costs 2,234,309 Total Intragovernmental costs 2,916,867

Total Public costs 6,762,420 Total Public costs 385,730,175

 Total Costs 8,996,729 388,647,042

Less: Earned Revenue (6,400) -

Total Net Cost $ 8,990,329 $ 388,647,042
20

The budget that includes the fiscal year 2018 actual execution information is as follows:

NOTE 11. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED

Obligations incurred and reported in the Statement of Budgetary Resources in 2019 and 2018

consisted of the following:

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, 2019 and 2018, budgetary resources obligated for 

undelivered orders are as follows:

Distributed

Budgetary Obligations Offsetting Net

FY2018 Resources Incurred Receipts Outlays

Statement of Budgetary Resources $396 $388 $0 $388

Spending Authority from Offsetting

 Collections 0

Unobligated Balance Not Available 5

Difference - Due to Rounding ($1) $0 $0 $0

Budget of the U.S. Government $390 $388 $0 $388

2019 2018

Direct Obligations, Category B $ 7,817,816 $ 388,256,900

Reimbursable Obligations, Category B 6,400 -

Total Obligations Incurred $ 7,824,216 $ 388,256,900

FY 2019

Federal Non-Federal Total

Paid Undelivered Orders $ 614,763 $ - $ 614,764

Unpaid Undelivered Orders 126,163 1,967,835 2,093,998

Total Undelivered Orders $ 740,927 $ 1,967,835 $ 2,708,761

FY2018

Federal Non-Federal Total

Paid Undelivered Orders $ 652,925 $ - $ 652,925

Unpaid Undelivered Orders 146,529 3,060,789 3,207,318

Total Undelivered Orders $ 799,454 $ 3,060,789 $ 3,860,243
21

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.

NOTE 14. REQUIREMENT PAYMENTS AND GRANT PROGRAMS

The largest of the EAC 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. EAC’s 

discretionary grants have been completed and closed.

Intragovernmental With the Public Total 

Net Operating Cost (SNC) $ 2,464,721 $ 6,525,607 $ 8,990,329

Property, plant, and equipment depreciation (57,263) (57,263)

(Increase)/Decrease in assets not affecting Budget Outlays:

Accounts receivable 6,400 32,101 38,501

Other assets (38,161) - (38,161)

(Increase)/Decrease in liabilities not affecting Budget Outlays:

Accounts payable 4,649 (11,469) (6,820)

Salaries and benefits (8,641) (25,605) (34,246)

Other liabilities - 73,546 73,546

Other financing sources:

Imputed federal employee retirement benefit costs (209,011) (209,011)

$ (244,764) $ 11,310 $ (233,454)

Net Outlays (Calculated Total) $ 2,219,957 $ 6,536,917 $ 8,756,875

Related Amounts on the Statement of Budgetary Resources

Outlays, net, (total) (SBR 4190) 8,756,875

Distributed offsetting receipts (SBR 4200)

Outlays, Net (SBR 4210) $ 8,756,875

BUDGET AND ACCRUAL RECONCILIATION

FOR THE YEAR ENDED SEPTEMBER 30, 2019

(In Dollars)

Components of Net Operating Cost Not Part of the Budgetary Outlays 

Total Components of Net Operating Cost Not Part of the Budget Outlays

2019 2018

Election Security Grants $ $ 380,000,000

Net Cost of Operations $ 380,000,000 - $ 
22

NOTE 15. CUSTODIAL ACTIVITY

NOTE 16. INTER-ENTITY COSTS

EAC recognizes certain inter-entity costs for goods and services that are received from other federal 

entities at no cost or at a cost less than the full cost. Certain costs of the providing entity that are 

not fully reimbursed are recognized as imputed cost and are offset by imputed revenue. Such 

imputed costs and revenues relate to employee benefits and claims to be settled by the Treasury 

Judgement Fund. EAC recognizes as inter-entity costs the amount of accrued pension and postretirement benefit expenses for current employees. The assets and liabilities associated with such 

benefits are the responsibility of the administering agency, OPM. For the periods ended September 

30, 2019 and 2018, respectively, inter-entity costs were as follows:

2019 2018

Revenue Activity:

Miscellaneous 25 79

Total Cash Collections 25 79

Accrual Adjustments (75) 

Total Custodial Revenue 25 4 

Disposition of Collections:

Transferred to Others (by Recipient) 154

Increase/(Decrease) in Amounts Yet to be Transferred (75) 

Retained by the Reporting Entity 25 (75) 

Total Disposition of Collections 25 4 

Net Custodial Activity -$ $ -

STATEMENT OF CUSTODIAL ACTIVITY

FOR THE YEARS ENDED SEPTEMBER 30, 2019 AND 2018

(In Dollars)
What is the OIG mission? 

The OIG mission is to provide timely, high-quality professional products 

and services that are useful to OIG’s clients. OIG seeks to provide value 

through its work, which is designed to enhance the economy, efficiency, 

and effectiveness in EAC operations so they work better and cost less in 

the context of today's declining resources. OIG also seeks to prevent or 

detect and investigate fraud, waste, abuse, and mismanagement in these 

programs and operations. Products and services include traditional 

financial and performance audits, contract and grant audits, information 

systems audits, and evaluations.

How can I obtain copies of OIG 

reports? 

Copies of OIG reports are available at the EAC OIG website:

https://www.eac.gov/inspector-general/reports/

The reports are also available at Oversight.gov, a one-stop, publicly 

accessible, searchable website containing the latest public reports 

from the Federal Inspectors General who are members of the Council 

of the Inspectors General on Integrity and Efficiency: 

https://www.oversight.gov/

Copies may also be requested directly from the OIG using the contact 

information below.

How can I report fraud, waste or 

abuse involving the U.S. Election 

Assistance Commission or Help 

America Vote Act Funds? 

Mail: U.S. Election Assistance Commission 

Office of Inspector General

1335 East-West Highway, Suite 4300

Silver Spring, MD 20910

E-mail: eacoig@eac.gov

OIG Hotline: 866-552-0004 (toll free) 

FAX: 301-734-3115
Election Assistance Commission

FY 2019 Agency Financial Report

57

II.C. 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). The law recognized the 

need for states to invest in their election infrastructure. 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. 

The following chart shows expenditures using Federal HAVA funds for voting and voting-related 

equipment, as well as applied voting research by states and other agency recipients of grants and 

payments funds. Amounts are reported in the fiscal year proceeding the year the expense was 

incurred.

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 were used to purchase 

physical property.

Section 251 Funds. HAVA Section 251 Requirements Payments are used to meet the 

requirements of Title III and improve the quality of Federal elections. As such, Requirements 

Payments have been used in part to purchase physical property, and to provide funds to the states

to carry out other activities to improve the administration of Federal elections. 

HAVA Security Grants. Congress signed the Consolidated Appropriations Act of 2018 into law. 

The Act included $380 million in grants, made available to states to improve the administration of 

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Section 

102 Funds $ 19,905,709 $ 36,838,905

$ 

(163,130) $90,122 $137,401 

$ 

(267,813)

$ 

(10,769)

$ 

0 

 

$(60,652.18) 

 

0 

Section 

251 Funds 262,018,224 143,247,989 104,356,159 40,410,437 43,417,090 168,169,476 75,586,153 110,248,566 72,618,422 0

HAVA 

Security 

Grants 380,000,000

Total

 

$281,923,933 

180,086,894

 

$104,193,029

 

$40,500,559

 

$43,554,491 $167,901,663

 

$75,575,384 $110,248,566

 

$72,557,770

 

$380,000,000
Election Assistance Commission

FY 2019 Agency Financial Report

58

elections for Federal office, including to enhance technology and make certain election security 

improvements. 

Research and Development

EAC had two research and development initiatives completed in FY 2015. The 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 Technology Initiative. EAC awarded $7.5 million in grants for three threeyear grants to fund research to identify and develop technological and administrative solutions that 

help ensure that all citizens can vote privately and independently, a requirement of HAVA (42 

U.S. Code 15441). The initiative supported research and development activities to increase the 

accessibility of new, existing, and emerging technological solutions in areas such as assistive 

technologies, interoperability, and design of voting systems. One of the grants provided data on 

accommodations and assistance needed for recently-injured military personnel to participate in 

Federal elections. The initiative resulted in over 45 research and development proposals.

Pre-Election Logic and Accuracy and Post-Election Audit Grant Program. EAC awarded $1.4 

million in grant funds to develop and document processes and best practices for coordinating 

quality and cost-effective voting system pre-election logic and accuracy testing, and post-election 

audits. Funds supported the research, development, documentation, and dissemination of a range 

of procedures and processes used in managing and conducting high quality Logic and Accuracy 

testing and post-election audit activities by type of voting method, vendor specific equipment, 

jurisdiction size, and other ways.

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Accessible Voting 

Technology 

Initiative $ 270,011 $ 1,630,476 $ 2,809,602 $ 2,429,159 $ - $ (6,605) $ 0 $ 0 

Logic and Accuracy - 275,040 485,600 236,499 (17,638)

 

(1,520) 0 0

Total $ 270,011 $1,905,516 $3,295,202 $2,665,658 $(17,638) $ (8,125) $ 0 $ 0
Election Assistance Commission

FY 2019 Agency Financial Report

59

SECTION III

Other Accompanying Information
Telephone: 301-734-3104 Fax: 301-734-3115 Toll free: 1- 866-552-0004

EAC Inspector General Website Link, E-mail: eacoig@eac.gov

OFFICE OF THE INSPECTOR GENERAL

Memorandum

To: Christy A. McCormick

Chairwoman, U.S. Election Assistance Commission

From: Patricia L. Layfield

Inspector General

Date: November 5, 2019

Subject: Top Management Challenges Facing the U.S. Election Assistance Commission 

Report No. I-MC-EAC-03-20

In accordance with the Reports Consolidation Act of 2000, I am submitting our annual 

statement summarizing the areas which the Office of Inspector General considers to be the 

most serious management and performance challenges facing the U.S. Election Assistance 

Commission. This list is based upon our audit, inspection and evaluation work and general 

knowledge of the Agency’s operations.

The only remaining challenges from prior years are the issue of records management, on which 

EAC has completed several key initiatives, and the continuing effects on EAC of the declaration 

of election systems as critical infrastructure. We noted the progress that EAC has made on the

records management issue. For fiscal year 2019, I am reporting a new challenge: vacancies in 

key Agency positions.

If you have any questions or need additional information, please don’t hesitate to contact me.

Attachment

cc: Commissioner Benjamin W. Hovland, Vice Chair

Commissioner Donald L. Palmer

Commissioner Thomas Hicks
EAC Top Management Challenges 2019 Page 2

Introduction

The Reports Consolidation Act of 2000 requires the Office of Inspector General (OIG) to report 

annually on what it considers to be the most serious management and performance challenges 

facing the U.S. Election Assistance Commission (EAC). Management challenges are derived 

from cross-cutting issues that arise during our regular audit, evaluation and investigatory work. 

They are also influenced by our general knowledge of the Agency’s operations and the works of 

other evaluative bodies such as the Government Accountability Office (GAO).

For fiscal year 2019, the OIG is reporting on two challenges, Records Management and Elections 

Systems as Critical Infrastructure that we have reported in prior years. We have added one 

additional challenge for 2019, key Agency vacancies.

Challenge 1: Vacancies in Key Agency Positions

The Help America Vote Act (HAVA) mandated the appointment of an Executive Director and a 

General Counsel for terms of four years each. The Commission appointed an Executive Director 

and General Counsel on October 22, 2015. The four year terms of the person in each of those 

positions ended on October 22, 2019, and the positions became vacant, effective October 23, 

2019. In addition, EAC’s part-time Grants/Financial Expert resigned, effective September 30, 

2019.

On October 19, 2019, the Commission approved a Succession Plan. Under the plan, the 

Commissioners identified the positions of General Counsel (as required by HAVA), then Chief 

Operating Officer, who would become Acting Executive Director in the event that the Executive 

Director position became vacant. As of the date of the Executive Director’s departure, both of 

those positions were vacant. In the interim, based on the Commission’s approved Succession 

Plan, the Chief Information and Security Officer has added to her existing duties those of Acting 

Executive Director. EAC is also working to obtain legal counsel on an interim, reimbursable 

basis while the Agency conducts a recruitment process.

EAC posted job announcements on USAJobs.gov for both the Executive Director and General 

Counsel positions. Both announcements are slated to close on November 28. EAC and its 

Human Resources service provider will screen, prepare, and refer qualified applicants for the 

Executive Director position to the Executive Director Search Committees of the Standards Board 

and Board of Advisors. Under HAVA, the Commission is required to consider recommendations 

from the Search Committees. Although the Commission is not bound by those 

recommendations, they carry great weight in the Commission’s deliberations.

HAVA does not require the Commission to obtain similar recommendations from its advisory 

boards to hire a General Counsel. EAC expects the Commission to begin interviews once they 

identify qualified applicants.
EAC Top Management Challenges 2019 Page 3

Before the previous Executive Director’s departure, EAC began a recruitment for a full-time 

grants expert to replace and expand upon the role of the Grants/Financial Expert. The Agency 

identified several promising candidates and expects to bring the grants expert on board by late 

November or early December.

Challenge 2: Elections Systems as Critical Infrastructure – Originally Issued 

2017

Citing the vital role elections play in the country, the Department of Homeland Security (DHS) 

designated elections systems as critical infrastructure in January 2017. EAC possessed the 

subject matter expertise, the relationships with state and local elections officials, and the indepth understanding of local election operations necessary to provide much-needed support to 

DHS in implementing that designation. As such, EAC has played a key role in helping DHS 

understand the elections sub-sector. The agency has also used its communication channels 

with state and local elections officials to educate officials and the public on critical 

infrastructure concepts, roles, responsibilities and DHS’ capabilities to apply cybersecurity 

intelligence to hardening the nation’s elections systems against intrusion, disruption, and loss. 

As the nation’s clearinghouse for election administration information, EAC has taken on the 

challenge of supporting DHS and state and local elections administrators as a crucial partner in 

securing the election infrastructure. EAC has struggled to balance that additional role with its 

existing mission functions despite limited human and financial resources that have steadily 

decreased over the past few years due to decreases in appropriations.

EAC’s role in supporting the protection of election systems as critical infrastructure has evolved 

into an integral function within its clearinghouse mission. For example, EAC is a member of the 
EAC Top Management Challenges 2019 Page 4

Government Coordinating Council (GCC) and serves as a distribution channel to state and local 

officials.

However, EAC’s salaries and administration appropriation has not grown in a manner that 

reflects the mission-related duties the Agency assumed upon the designation of elections 

systems as critical infrastructure. Early on, EAC functioned as a liaison between the DHS and 

state and local election officials. Although that particular role has declined, the EAC’s 

clearinghouse function continues to provide publications, training, and other materials and 

services to assist election officials in understanding and addressing election security, including 

cybersecurity. Funding constraints have also stymied EAC’s plans to hire a cybersecurity expert 

to advise the Agency on cybersecurity matters for its internal systems and processes as well as 

external demands, such as those related to the clearinghouse mission.

The only recent increase in EAC’s budget was a one-time increase of $400 thousand in fiscal 

year 2018, the year in which EAC received an appropriation of $380 million for

Congressionally-directed formula grants to states and territories. EAC awarded and paid all of 

those grants in 2018 and continues to monitor states’ usage of the funds and provide related 

guidance. However, in the year after the grant funds appropriation, EAC’s salaries and 

administration budget fell to $7.9 million, which was less than the Agency had been receiving in 

annual funding before the designation of election systems as critical infrastructure or the 

appropriation of additional grant funding.

Challenge 3: Records Management – Originally Issued 2010

Maintaining complete and accurate records of the operations, policies, procedures and practices 

are critical to effective agency performance. Furthermore, retention of government records is 

mandated by federal law. Without these records, an agency cannot retain an institutional 

knowledge.

At the time the OIG originally raised this issue as a significant challenge, EAC did not have 

formal documented policies and procedures for management and retention of records. The OIG 

first noted the EAC’s lack of a records management system in 2008, when it issued the 

Assessment of EAC’s Program and Financial Operations.

The lack of an approved system for records retention leaves the EAC vulnerable to lawsuits by 

information requesters and susceptible to waste, fraud, or abuse of its resources and the 

intentional destruction of government records in violation of federal law. The OIG 

recommended that EAC complete its remaining records retention schedules, obtain approval of 

those schedules as needed from the National Archives and Records Administration (NARA), and 

train its staff on the proper retention of federal government records.
EAC Top Management Challenges 2019 Page 5

EAC’s Progress

In March 2013, the Executive Director of EAC signed a document titled, U.S. Election Assistance 

Commission (EAC) Records Management Standard Operating Procedures. EAC has completed 

the records retention schedules for the Office of Inspector General, Human Resources, the 

Executive Director, the Commissioners, the General Counsel, the Chief Financial Officer, and 

Grants and Communications and submitted the schedules to the National Archives and Records 

Administration (NARA) as needed.

During 2018, EAC implemented a new e-mail system with automated indexing that allows the 

Agency to index, search, and retrieve records electronically. EAC has also identified means by 

which the Agency can convert or capture records created using previous e-mail systems. EAC’s

Chief Information Officer completed the task to configure electronic records retention. EAC has 

scanned paper copies of records and saved them in portable document format (PDF). EAC has 

coordinated with the NARA to provide training for all employees. The Agency believes retention 

of electronic records is on schedule to comply with the required 2019 deadline.

EAC adopted the Capstone approach for e-mail retention and submitted the form required by 

that approach (NA-1005) for approval by NARA. Capstone offers agencies the option of using a 

more simplified and automated approach to managing email, as opposed to using either print

and file systems or records management applications that require staff to file email records 

individually. Using this approach, an agency can categorize and schedule email based on the 

work and/or position of the email account owner. The Capstone approach allows for the 

capture of records that should be preserved as permanent from the accounts of officials at or 

near the top of an agency or an organizational subcomponent.

The records schedule for Testing and Certification and Research have been submitted to NARA 

for review and approval. The Agency implemented appropriate markings for email 

communications that may transmit documents that contain controlled unclassified information. 

A uniformed naming convention has been defined but has not been yet been deployed. As of 

September 30, 2019, EAC was awaiting final NARA approval of the submitted documents.
 November ___, 2012

MEMORANDUM

Date: November 18, 2019

To: Patricia L. Layfield, Inspector General 

From: Mona Harrington, Acting Executive Director 

RE: Response to Inspector General’s Statement Summarizing the Major Management and 

Performance Challenges Facing the U.S. Election Assistance Commission

The EAC concurs with the Inspector General’s Statement Summarizing the Major Management 

and Performance Challenges Facing the U.S. Election Assistance Commission, dated November 

5, 2019. 

The U.S. Election Assistance Commission (EAC) is a trusted, proactive, and responsive 

bipartisan federal commission that supports state and local officials in the administration of 

elections and promotes voter participation. Established by the Help America Vote Act of 2002 

(HAVA), EAC serves as the nation’s clearinghouse for information on election administration, 

conducts the Election Administration and Voting survey, develops and manages the Voluntary 

Voting System Guidelines, accredits testing laboratories, certifies voting systems, administers 

and audits HAVA funds, and administers the National Mail Voter Registration form, in 

accordance with the National Voter Registration Act of 1993. 

Despite the EAC’s critical mission outlined above, the EAC budget continues to decline. We 

strongly believe that EAC’s activities and research provide incomparable and invaluable data 

that neither can be replicated nor replaced elsewhere in the federal government. Over the last 

year, EAC Commissioners and staff have provided written and oral testimony raising these 

challenges with Congressional oversight and appropriations committees in addition to providing 

programmatic justification to acquire additional funding for FY2020. Over the last ten years, the 

EAC’s budget has decreased by 50%. Notably, in FY 2019, the EAC received its lowest 

appropriation with an operating budget of $7.95 million, which was $650,000 less than FY 2018. 

The EAC’s budget predominately covers salaries, Inspector General activities and mandatory 

operational expenses. The remainder of the budget leaves a limited amount of funds for hiring 

key personnel and program activities. 

Entering the 2020 Presidential election year, the EAC’s mission is more critical than it has ever 

been and current funding prevents the Commission from adequately expanding mission to meet 

the demand following the designation of elections as critical infrastructure. In January of 2017, 

the Department of Homeland Security (DHS) designated the nation’s election administration 

infrastructure as part of the Nation’s Critical Infrastructure, and federal resources for protecting 

U.S. Election Assistance Commission

1335 East-West Highway, Suite 4300

Silver Spring, MD 20910
this infrastructure are being developed in accordance with the National Infrastructure Protection 

Plan. The EAC requires additional resources to appropriately assist election officials impacted by 

this designation and enhanced security challenges posed by foreign adversaries. 

In conclusion, investment in the EAC to support effective and secure elections and the funding of 

programs can no longer be ignored. The EAC has a proven track record of effectiveness serving 

the election community and the American people. The need for increased funding cannot be 

understated. We are hopeful the President and Congress can work together to acknowledge the 

importance of the EAC’s mission and adequately fund the Commission going forward.
Election Assistance Commission

FY 2019 Agency Financial Report

67

III.B. 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 

2019, the 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.C. SUMMARY OF FINANCIAL STATEMENT AUDIT AND 

MANAGEMENT ASSURANCES

SUMMARY OF FISCAL YEAR 2019 FINANCIAL STATEMENT AUDIT

Audit Opinion Unmodified

Material Weaknesses

Beginning 

Balance New Resolved Consolidated

Ending 

Balance

Financial Accounting & Reporting 0 0

Total Material Weaknesses 0 0

Summary of Management Assurances

Statement of Assurance (FMFIA§ 2) Unmodified

No. Summary

Beginning 

Balance New Resolved Consolidated

Ending

Balance

1 Material Weaknesses 

(FMFIA§ 2) 0 0

Total 0 0