U.S. ELECTION ASSISTANCE 

COMMISSION 

OFFICE OF INSPECTOR GENERAL 

FINAL REPORT: 

Administration of Payments Received 

Under the Help America Vote Act by the 

Illinois State Board of Elections 

JANUARY 1, 2006 THROUGH AUGUST 31, 2010 

Report No. 

E-HP-IL-12-10 

May 2011 
 

 

 

 

 

 

 

 

 

 

U.S. ELECTION ASSISTANCE COMMISSION
 

OFFICE OF INSPECTOR GENERAL
 

1201New York Ave. NW - Suite 300
 

Washington, DC 20005
 

May 6, 2011 

Memorandum 

To:	 Thomas Wilkey 

Executive Director 

From:	 Curtis W. Crider 

Inspector General 

Subject: Final Audit Report - Administration of Payments Received Under the Help America 

Vote Act by the Illinois State Board of Elections 

(Assignment Number E-HP-IL-12-10) 

We contracted with the independent certified public accounting firm of Clifton Gunderson 

LLP (Clifton Gunderson) to audit the administration of payments received under the Help America 

Vote Act (HAVA) by the Illinois State Board of Elections (SBOE). The contract required that the 

audit be done in accordance with U.S. generally accepted government auditing standards. Clifton 

Gunderson is responsible for the attached auditor’s report and the conclusions expressed therein. 

In its audit of the SBOE, Clifton Gunderson concluded that, except for the maintenance of 

comprehensive property records, the SBOE generally accounted for and expended HAVA funds in 

accordance with the HAVA requirements and complied with the financial management 

requirements established by the U.S. Election Assistance Commission. The SBOE also complied 

with section 251 requirements. 

In its February 22, 2011 response to the draft report (Appendix A-1), the SBOE agreed with 

the report’s finding and recommendation, and provided corrective action. 

On April 7, 2011, the EAC response (Appendix A-2) indicated general agreement with the 

report finding and recommendation, and stated that they would work with the state to ensure 

corrective action. We would appreciate being kept informed of the actions taken on our 

recommendations as we will track the status of their implementation. Please respond in writing to 

the finding and recommendation included in this report by July 6, 2011. Your response should 

include information on actions taken or planned, targeted completion dates, and titles of officials 

responsible for implementation. 

The legislation, as amended, creating the Office of Inspector General (5 U.S.C. § App.3) 

requires semiannual reporting to Congress on all audit reports issued, actions taken to implement 

audit recommendations, and recommendations that have not been implemented. Therefore, this 

report will be included in our next semiannual report to Congress. 

If you have any questions regarding this report, please call me at (202) 566-3125. 
 

 

 

 

 

 

 

 

PERFORMANCE AUDIT REPORT
 

ADMINISTRATION OF PAYMENTS RECEIVED
 

UNDER THE
 

HELP AMERICA VOTE ACT
 

BY THE
 

STATE OF ILLINOIS
 

January 1, 2006 Through August 31, 2010 

UNITED STATES ELECTION
 

ASSISTANCE COMMISSION
 

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TABLE OF CONTENTS 

PAGE
 

EXECUTIVE SUMMARY 1
 

BACKGROUND 2
 

AUDIT OBJECTIVES 3
 

SCOPE AND METHODOLOGY 4
 

AUDIT RESULTS 4
 

APPENDICES
 

Appendix A-1: Illinois State Board of Elections Response to Audit Results 6
 

Appendix A-2: U. S. Election Assistance Commission Response to Audit Results 7
 

Appendix B: Audit Methodology 8
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Election Assistance Commission
 

Performance Audit of the Administration of Payments Received Under the
 

Help America Vote Act by the State of Illinois
 

EXECUTIVE SUMMARY 

Clifton Gunderson LLP was engaged by the U.S. Election Assistance Commission (EAC or the 

Commission) Office of Inspector General (OIG) to conduct a performance audit of the Illinois 

State Board of Elections (SBOE) for the period January 1, 2006 through August 31, 2010 to 

determine whether the SBOE used payments authorized by Sections 101, 102, and 251 of the 

Help America Vote Act of 2002 (HAVA or the Act) in accordance with HAVA and applicable 

requirements; accurately and properly accounted for property purchased with HAVA payments 

and for program income, and met HAVA requirements for Section 251 funds for an election fund 

and for a matching contribution. In addition, we were engaged to conduct a performance audit 

of the election fund receipts from August 27, 2003 to December 31, 2005. 

EAC OIG conducted a performance audit of SBOE’s expenditures, but not the total receipts, of 

the HAVA program from inception through December 31, 2005, and issued a report dated 

October 18, 2006. We have reviewed SBOE’s corrective actions with respect to the findings 

and recommendations included in the EAC OIG report. We found that the recommendations 

have been implemented. 

Our audit did not include a determination that the SBOE met the requirements for maintenance 

of a base level of state outlays, commonly referred to as Maintenance of Expenditures (MOE). 

On June 28, 2010, the Commission issued a revised definitive policy on the requirements for the 

MOE. The policy included a provision that the states will have 12 months from the date of the 

revised policy to voluntarily submit a revised MOE plan to the EAC. Accordingly, our scope of 

audit did not include a determination of whether the SBOE and its subgrantees met the 

requirements for MOE. 

In addition, the Commission requires states to comply with certain financial management 

requirements, specifically: 

•	 Comply with the Uniform Administrative Requirements for Grants and Cooperative 

Agreements with State and Local Governments (also known as the “Common Rule”) as 

published in the Code of Federal Regulations 41 CFR 105-71. 

•	 Expend payments in accordance with cost principles for establishing the allowance or 

disallowance of certain items of cost for federal participation issued by the Office of 

Management and Budget (OMB) in Circular A-87, Cost Principles for State, Local, and 

Indian Tribal Governments. 

•	 Submit detailed annual financial reports on the use of Title I and Title II payments. 

We conducted this performance audit in accordance with Generally Accepted Government 

Auditing Standards. Those standards require that we plan and perform the audit to obtain 

sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions 

based on our audit objectives. We believe that the evidence obtained provides a reasonable 

basis for our findings and conclusions based on the audit objectives. Because of inherent 

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limitations, a study and evaluation made for the limited purposes of our review would not 

necessarily disclose all weaknesses in administering HAVA payments. 

Except for the maintenance of adequate property records over HAVA funded equipment, as 

discussed below, our audit concluded that the SBOE generally accounted for and expended 

HAVA funds in accordance with the requirements mentioned above for the period from January 

1, 2006 through August 31, 2010. The exception needing SBOE’s management attention is as 

follows: 

•	 Inventory listings of voting equipment did not conform to the requirements of 41 C.F.R. 

105-71.132 (d) (1), (the Common Rule) at five of the seven local election jurisdictions we 

visited. The listings did not include required elements such as the use and condition of 

the property, or the federal, state, or county percentage of ownership. 

We have included in this report as Appendix A-1 the SBOE management’s formal response to 

the draft report dated February 22, 2011. Although we have included management’s written 

responses to our notices of findings and recommendations, such responses have not been 

subjected to the audit procedures and, accordingly, we do not provide any form of assurance on 

the appropriateness of the responses or the effectiveness of the corrective actions described 

therein. SBOE officials agreed with our recommendations. 

The draft report, including the SOS responses, was provided to the Executive Director of the 

EAC for review and comment. The EAC responded on April 7, 2011, and generally agreed with 

the report’s finding and recommendation. The EAC stated that they would work with the state to 

ensure appropriate corrective action. The EAC’s complete response is included as Appendix A2. 

BACKGROUND 

HAVA created the Commission to assist states and insular areas with the improvement of the 

administration of Federal elections and to provide funds to states to help implement these 

improvements. HAVA authorizes payments to states under Titles I and II, as follows: 

•	 Title I, Section 101 payments are for activities such as complying with Title III of HAVA for 

uniform and nondiscriminatory election technology and administration requirements, 

improving the administration of elections for Federal office, educating voters, training 

election officials and poll workers, and developing a state plan for requirements 

payments. 

•	 Title I, Section 102 payments are available only for the replacement of punch card and 

lever action voting systems. 

•	 Title II, Section 251 requirements payments are for complying with Title III requirements 

for voting system equipment; and for addressing provisional voting, voting information, 

statewide voter registration lists, and voters who register by mail. 

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Title II also requires that states must: 

•	 Have appropriated funds “equal to 5 percent of the total amount to be spent for such 

activities [activities for which requirements payments are made].” [Section 253(b) (5)]. 

•	 “Maintain the expenditures of the state for activities funded by the [requirements] payment 

at a level that is not less than the level of such expenditures maintained by the state for 

the fiscal year ending prior to November 2000.” [Section 254 (a) (7)]. 

•	 Establish an election fund for amounts appropriated by the state “for carrying out the 

activities for which the requirements payment is made,” for the Federal requirements 

payments received, for “such other amounts as may be appropriated under law,” and for 

“interest earned on deposits of the fund.” [Section 254 )(b)(1)]. 

AUDIT OBJECTIVES 

The objectives of our audit were to determine whether the Illinois SBOE: 

1.		 Used payments authorized by Sections 101, 102, and 251 of HAVA in accordance with 

HAVA and applicable requirements; 

2.		 Accurately and properly accounted for property purchased with HAVA payments and for 

program income; 

3.		 Met HAVA requirements for Section 251 funds for an election fund and for a matching 

contribution except for the requirements for maintenance of a base level of state outlays, 

commonly referred to as Maintenance of Expenditures (MOE). On June 28, 2010, the 

Commission issued a revised definitive policy on the requirements for the MOE. The 

policy included a provision that the states will have 12 months from the date of the 

revised policy to voluntarily submit a revised MOE plan to the EAC. Accordingly, our 

scope of audit did not include a determination of whether the SBOE and its subgrantees 

met the requirements for MOE. 

In addition, to accounting for HAVA payments, the Act requires states to maintain records that 

are consistent with sound accounting principles that fully disclose the amount and disposition of 

the payments, that identify the project costs financed with the payments and other sources, and 

that will facilitate an effective audit. The Commission requires states receiving HAVA funds to 

comply with certain financial management requirements, specifically: 

1.		 Comply with the Uniform Administrative Requirements for Grants and Cooperative 

Agreements with State and Local Governments (also known as the “Common Rule”) as 

published in the Code of Federal Regulations at 41 CFR 105-71. 

2.		 Expend payments in accordance with cost principles for establishing the allowance or 

disallowance of certain items of cost for federal participation issued by the OMB. 

3.		 Submit detailed annual financial reports on the use of Title I and Title II payments.1 

1 EAC requires states to submit annual reports on the expenditure of HAVA Sections 101, 102, and 251 funds. 

Through December 31, 2008, for Sections 101 and 102, reports were due on February 28 for the activities of the 

previous calendar year, and, for Section 251, reports were due by March 30 for the activities of the previous fiscal 

year ending on September 30. Beginning in calendar year 2009, all reports will be effective as of September 30, 

20XX for the fiscal year ended that date and will be due by December 31, 20XX. 

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SCOPE AND METHODOLOGY 

We audited the HAVA funds received from August 27, 2003 through August 31, 2010, and 

disbursed from January 1, 2006 through August 31, 2010. 

Funds received and disbursed by the HAVA program from inception, August 27, 2003, through 

August 31, 2010 (85-month period) are shown in the following table: 

FUNDS RECEIVED

TYPE OF 

PAYMENT

EAC

PAYMENT

PROGRAM

INCOME

STATE

MATCH

INTEREST

EARNED

TOTAL

AVAILABLE

FUNDS

DISBURSED

DATA
 

AS OF 
 

Section 101 $ 11,129,030 $ 0 $ 0 $ 1,134,816 $12,263,846 $10,840,978 8/31/2010

Section 102 33,805,617 0 0 1,232,393 35,038,010 33,669,668 8/31/2010

Section 251 110,542,880 0 5,816,250 7,633,287 123,992,417 103,582,838 8/31/2010

Total $ 155,477,527 $ 0 $5,816,250 $10,000,496 $ 171,294,273 $148,093,384 8/31/2010

Our audit methodology is set forth in Appendix B. 

AUDIT RESULTS 

We conducted this performance audit in accordance with Generally Accepted Government 

Auditing Standards. Those standards require that we plan and perform the audit to obtain 

sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions 

based on our audit objectives. We believe that the evidence obtained provides a reasonable 

basis for our findings and conclusions based on the audit objectives. Because of inherent 

limitations, a study and evaluation made for the limited purposes of our review would not 

necessarily disclose all weaknesses in administering HAVA payments. 

Except for the maintenance of adequate property records, our audit concluded that the SBOE 

generally accounted for and expended HAVA funds in accordance with the requirements 

mentioned above. The SBOE has taken action on or is working to resolve the exceptions 

described below as set forth in Appendix A-1: 

I. Property Records for HAVA Funded Equipment 

The equipment listings provided to us by the five of the seven local jurisdictions we visited, did 

not conform to the requirements of 41 C.F.R. 105-71.132 (d)(1), (the Common Rule). We noted 

that the listings included the serial number and the location, but it did not always include a 

description of the property and use and condition, source, or federal or local jurisdiction 

percentage of ownership 

The Uniform Administrative Requirements for Grants and Cooperative Agreements with State 

and Local Governments, 41 CFR § 105-71.132(d)(1), referred to as the Common Rule, states 

that property records must be maintained that include a description of the property, a serial 

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number or other identification number, the source of property, who holds the title, the acquisition 

date, cost of the property, percentage of Federal participation in the cost of the property, the 

location, use and condition of the property, and any ultimate disposition data including the date 

of disposal and sale price of the property. The Common Rule, 41 CFR § 105-71.132(d)(3), also 

requires that a control system must be developed to ensure adequate safeguards to prevent 

loss, damages or theft of the property. 

SBOE election officials had advised local jurisdictions of the requirements of the Common Rule 

but not all of these jurisdictions had prepared inventory records that were in compliance with the 

Common Rule. 

Recommendation: 

We recommend that the SBOE continue to work with local jurisdictions to ensure that the 

property records include the minimum information required by the Common Rule. 

SBOE’s Response: 

The SBOE concurred with the finding and recommendation, and stated that, although they had 

notified the jurisdictions of the requirements on multiple occasions and provided them with a 

worksheet to comply with the rules, a number of jurisdictions have not complied. The SBOE 

stated that they would continue to work with the sub-recipients to achieve compliance. 

We provided a draft of our report to the appropriate individuals of the Illinois SBOE and the 

EAC. We considered any comments received prior to finalizing this report. 

The EAC’s response dated April 7, 2011, generally agreed with the report’s finding and 

recommendation. The EAC stated that they would work with the state to ensure appropriate 

corrective action. The EAC’s complete response is included as Appendix A-2. 

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CG performed its work between September 13, 2010 and October 1, 2010. 

Calverton, Maryland 

October 15, 2010 

5 
STATE BOARD OF ELECTIONS 


STATE OF ILLINOIS 


1020 South Spring Street, P.O. Box 4187 

Springfield, Illinois 62708 

217/782-4141 TTY: 2171782-1518 

Fax: 217/782-5959 

James R. Thompson Center 

100 West Randolph, Suite 14-100 

Chicago, Illinois 60601 

312/814-6440 TTY: 312/814-6431 

Fax: 312/814-6485 

BOARD MEMBERS 

Bryan A. Schneider, Chairman 

Wanda L. Rednour, Vice Chairman 

Patrick A. Brady 

John R. Keith 

William M. McGuffage 

Albert S. Porter 

Jesse R. Smart 

Robert J. Walters 

EXECUTIVE DIRECTOR 

Rupert T. Borgsmiller 

February 22, 2011 

Mr. Curtis Crider 

I nspector General 

U.S. Election Assistance Commission 

1201 New York Avenue NW - Suite 300 

Washington, DC 20005 

Dear Mr. Crider: 

The Illinois State Board of Elections (SBE) has received the draft report entitled 

"Performance Audit Report - Administration of Payments Received Under the Help 

America Vote Act by the State of Illinois" for the audit period January 1, 2006 through 

August 31,2010. 

We concur with your observation that specific election jurisdictions have not fully 

complied with maintaining property management records as required by the Common 

Rule. Although we have notified the jurisdictions on multiple occasions of their 

responsibility to maintain such records and have supplied them with an Excel 

spreadsheet to include all of the necessary information, a number of jurisdictions have 

not complied. Upon the final report being issued to the EAC, we will once again 

communicate with all sub-recipient counties, to remind them of their obligation to 

comply with Federal property control requirements. 

If you need further information do not hesitate to contact our office. 

Sincerely, 

Rupert T. Borgsmiller 

Executive Director 

cc: 	 Becky Glazier, HAVA Operations 

Mike Roate, Chief Fiscal Officer 

www.elections.il.gov 
~"""--.. 

C§

-'-.-~'~'-.'-'-' . 

EAC RESPONSE TO THE DRAFT AUDIT: 

OIG Performance Audit Report on the Administration of 

Payments Received Under the Help America Vote Act by the 

State of Illinois, for the Period January 1, 2006 Through 

August 31, 2010. 

April 7, 2011 

MEMORANDUM 

To: 	 Curtis Crider 

Inspector General 

Thomas R. Wilkey 

Executive Director 

Subject: 	 Draft Performance Audit Report - "Administration of Payments 

Received Under the Help America Vote Act by the State of Illinois". 

Thank you for this opportunity to review and respond to the draft audit report for 

Illinois. 

The Election Assistance Commission (EAC) generally concurs with the results of 

the review and recommendation. The EAC will work with the Illinois State Board 

of Elections (SBOE) to ensure appropriate corrective action. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix B 

AUDIT METHODOLOGY 

Our audit methodology included: 

•	 Assessing audit risk and significance within the context of the audit objectives. 

•	 Obtaining an understanding of internal control that is significant to the administration of the 

HAVA funds. 

•	 Understanding relevant information systems controls as applicable. 

•	 Identifying sources of evidence and the amount and type of evidence required. 

•	 Determining whether other auditors have conducted, or are conducting, audits of the 

program that could be relevant to the audit objectives. 

To implement our audit methodology, below are some of the audit procedures we performed: 

•	 Interviewed appropriate SBOE employees about the organization and operations of the HAVA 

program. 

•	 Reviewed prior single audit report and other reviews related to the state’s financial 

management systems and the HAVA program for the last 2 years. 

•	 Reviewed policies, procedures and regulations for the SBOE’s management and accounting 

systems as they relate to the administration of HAVA programs. 

•	 Analyzed the inventory lists of equipment purchased with HAVA funds. 

•	 Tested major purchases and supporting documentation. 

•	 Tested randomly sampled payments made with the HAVA funds. 

•	 Verified support for reimbursements to local governments (counties, cities, and 

municipalities). 

•	 Reviewed certain state laws that impacted the election fund. 

•	 Examined appropriations and expenditure reports for state funds used to meet the five 

percent matching requirement for section 251 requirements payments. 

•	 Evaluated compliance with the requirements for accumulating financial information reported 

to the Commission on the Financial Status Reports, Forms SF-269 and 425, accounting for 

property, purchasing HAVA related goods and services, and accounting for salaries. 

•	 Verified the establishment and maintenance of an election fund. 

•	 Conducted site visits of selected counties/towns to perform the following: 

� Observe equipment purchased with HAVA funds for proper accounting and 

safeguarding 

� Ensure compliance with HAVA Act. 

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OIG’s Mission 

The OIG audit 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 detect and prevent 

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. 

Obtaining 

Copies of 

OIG Reports 

Copies of OIG reports can be requested by e-mail. 

(eacoig@eac.gov). 

Mail orders should be sent to: 

U.S. Election Assistance Commission 

Office of Inspector General 

1201 New York Ave. NW - Suite 300 

Washington, DC 20005 

To order by phone: Voice: (202) 566-3100 

Fax: (202) 566-0957 

To Report Fraud, 

Waste and Abuse 

Involving the U.S. 

Election Assistance 

Commission or Help 

America Vote Act 

Funds 

By Mail: U.S. Election Assistance Commission 

Office of Inspector General 

 1201 New York Ave. NW - Suite 300 

 Washington, DC 20005 

E-mail: eacoig@eac.gov 

OIG Hotline: 866-552-0004 (toll free) 

FAX: 202-566-0957