U.S. ELECTION 

ASSISTANCE

COMMISSION

 

 

 

 

 

 

INTERIM AGENCY

FINANCIAL REPORT 

 

 

 

 

 

 

 

 

 

November 15, 2012
Election Assistance Commission 

ABOUT THIS REPORT

For FY 2012 reporting purposes, the U.S. Election Assistance Commission (EAC) has 

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

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

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

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

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

and a combined Annual Performance Report/Congressional Budget Justification will 

follow on February 15, 2013 per guidance in OMB Circular A-136 Financial Reporting 

Requirements. 

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

November 15, 2012 

MESSAGE FROM THE CHIEF OPERATING OFFICER AND ACTING 

EXECUTIVE DIRECTOR

Following is the U.S. Election Assistance Commission (EAC) FY 2012 Annual 

Financial Report. The report describes EAC’s financial results over the past year as it 

pursued its mission to assist the effective administration of Federal elections. The report 

highlights efforts to strengthen internal controls and financial management activities. 

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

Accountability of Tax Dollars Act of 2002, and the third year EAC is participating in the 

pilot performance reporting project as described in OMB Circular A-136 on Financial 

Reporting Requirements in place of the Performance and Accountability Report. EAC 

presents summarized performance data in this report, and will provide detailed data in 

February in conjunction with the FY 2014 Congressional Justification.

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

been without commissioners since December 2011. The agency has been able to 

function by following the order of succession in the Roles and Responsibilities 

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

the Strategic Plan 2009-2014 adopted in March of 2009. Under the present structure, if 

EAC is without an Executive Director or General Counsel, as is the case, the Chief 

Operating Officer assumes the responsibilities of the Executive Director in an acting 

capacity. Agency staff is authorized by the Roles and Responsibilities document to 

perform activities such as managing the voting systems certification/decertification 

process, and disbursing Requirements Payment grant funds. The agency cannot process 

second level audit appeals, issue advisory opinions to States on use of Help America 

Vote Act funds, adopt policy, or hire an Executive Director and General Counsel. 

In FY 2012, EAC finalized the human capital handbook. A records management 

handbook is in draft and is expected to be finalized in FY 2013. Further, once a quorum 

of the Commissioners is present, EAC will examine remaining policies and procedures 

related to clearinghouse and communications and public comments regarding the National 

Mail Voter Registration Form. 

During FY 2012, EAC made a great deal of progress in achieving the program area 

goals described in its Strategic Plan, which is based on the mandates of the Help 

America Vote Act (HAVA) of 2002:
Election Assistance Commission 

Communications & Clearinghouse

In Fiscal Year 2012, EAC focused efforts on providing information and best practices to 

election officials and voters in preparation for the 2012 federal election cycle with the 

goal of building a community of knowledge and expertise that would save election 

officials time and money. EAC: 

• Hosted a series of public roundtable discussions about topics and initiatives in 

preparation for 2012 federal election cycle. Questions and comments were taken 

from the public throughout the live webcasts. The subjects included: 

o Cost-effective procedures and best practices for 2012 Voting System 

Preparation; 

o EAC’s role as a national clearinghouse and resource for election officials 

around the country; 

o Getting ready for the November 2012 elections; and 

o Ways to improve access to voting for veterans; 

• Expanded The EAC Blog to provide periodic election updates and highlight 

program activities during each week: 1) Election Updates summarize 

information on upcoming primaries, special elections, and the general election in 

2012; 2) Voting System Testing Updates track progress made on EAC voting 

system certification; and 3ongoing blog posts cover election related topics to 

answer frequently asked questions and provide critical or time sensitive 

information to stakeholders and the media; 

• Expanded @EACgov on Twitter to rapidly deliver information and updates to 

stakeholders and the public about the voting system certification program, EAC 

activities and election information, communicate with election officials, and 

build a community of expertise; 

• Maintained #BReady2012, is the Twitter hashtag where election officials and the 

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

number of EAC Twitter followers grew from 250 to over 900 from October 2011 

through September 2012;

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

officials connect and leverage their collective knowledge by sharing and 

exchanging best practices and information expertise; and

• Provided program updates where the public can customize the kind of 

information and the frequency that it is delivered via EAC’s newsletter and 

automatic program updates; 

• Managed EAC’s Blog to provide periodic election updates and highlight 

program activities; 

• Managed @EACgov on Twitter to rapidly deliver information and updates about 

the voting system certification program, communicate with election officials, and 

build a community of expertise; and

• Maintained #BReady2012, the Twitter hashtag where election officials and the 

public can gather and discuss preparation for the next Federal election.
Election Assistance Commission 

Grants Management

In FY 2012, EAC: 

• Disbursed requirements payment grants to States certifying compliance from the 

FY 2008-FY 2011 awards; 

• Closed the College Poll Worker and the Mock Election grants awarded in FY 

2009; 

• Continued to monitor and provide technical assistance to three-year award 2010 

College Poll Worker grantees to help them carry out successful programs; 

• Continued to monitor and work with the three-year award 2010 Mock Election 

Program grantees; and

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

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

Accessible Voting Technology Initiative grants. In FY 2012, the latter projects 

focused on making pre-election information accessible to voters and using a 

specialized system in the field for elections. 

Research, Policy and Programs

Work completed in FY 2012 includes: 

Research:

• Release of the results of the 2010 Election Administration and Voting Survey 

(EAVS) to Congress and the public; 

• Final draft of a study on the use of Social Security numbers for the purpose of 

voter registration; 

• Final draft of a study on Vote Recounts and Contests describing laws and 

procedures in each state; 

• Award of contracts to perform research on administering elections in urban and 

rural areas, and to administer and analyze the data for the 2012 EAVS; 

• Completion of the process for updating the 2012 Election Administration and 

Voting Survey; 

• Research on new jurisdictions and languages covered by Section 203 of the 

Voting Rights Act as determined by the 2010 census and consideration of its 

application to various minority language election resources; and 

• Responding to requests from state and local election officials, Congress, the 

media and the public-at large for copies of Voter’s Guides to Elections and 

Glossaries of Election Terms in various foreign languages, and NVRA 

registration forms and accompanying state instructions for completing the form; 

clarification of data reported in the biennial EAVS; assistance on completing the 

Federal NVRA form; and requests to clarify certain technical aspects of election 

procedures and processes; 
Election Assistance Commission 

Policy:

• Processing of State requests for modifications to the state-specific instructions on 

the National Mail Voter Registration Form. States include Delaware, Florida, 

Illinois, Maine, Louisiana, Virginia and Washington State; 

Programs: 

• Conducting presentations and distributing material highlighting EAC educational 

resources at conferences and workshops around the country. Topics included 

best practices and tips from EAC research on topics such as poll worker 

recruitment and training, designing ballots, making contingency plans, voting 

accessibility, and communicating with the public; and

• Developing and distributing 30,000 copies of “Voting Tips To Enhance Your 

Voting Experience” to the 55 State election offices. 

Voting Systems Testing and Certification

In FY 2012, EAC:

• Certified four voting systems and published a certification timeline for a fifth 

system; 

• Conducted testing campaigns for four systems; 

• Drafted and published six Requests for Interpretation (RFIs) to the Voluntary 

Voting System Guidelines (VVSG); 

• Drafted and published two Notices of Clarification to Testing & Certification

Program Manuals; 

• Published a Final Formal Investigation Report on a voting system;

• Developed and implemented major updates to EAC’s Virtual Review Tool 

(VRT); 

• Audited a voting system manufacturing facility; 

• Received a revised version of VVSG 1.1 from NIST, incorporated NIST 

comments and new RFI’s into the guidelines, and posted the second draft version 

for Public Comment; 

• Performed two laboratory re-accreditation audits, and an EAC and NVLAP 

initial laboratory audit; and

• Published the Survey of Internet Voting (SIVAR) document on the EAC web 

site. 

Finally, EAC conducted briefings for visiting foreign delegations under the auspices of 

the U.S. State Department to explain EAC’s role and function as a national 

clearinghouse, and how EAC's resources and tools serve and support election officials 

around the country as they prepare for the 2012 election. Delegations included election 

officials and news media journalists from the following nations: Afghanistan, Burkina 

Faso, Chad, Korea, Mali, Mauritania, Senegal, Niger, and Russia. Another briefing was 

conducted for representatives from the Office for Democratic Institutions and Human 

Rights (ODIHR) in the Organization for Security and Cooperation in Europe (OSCE).
Election Assistance Commission 

EAC continues to work on improving its programs and operations, and information 

technology across the agency. Additional information on actions for continued 

improvement can be found in Section I.E. of the Management Discussion and Analysis 

which follows. 

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

exception of issues described in the auditor’s report related to internal controls and 

accounting for advances, receivables and accruals, and the finalization of policies and 

procedures. The Commission provides a qualified statement of assurance that the 

internal control and financial management systems meet the objectives of the Federal 

Managers’ Financial Integrity Act. EAC will work in FY 2013 to remediate the issues 

and finalize policies and procedures. 

We look forward to continuing to provide technical assistance to recipients of Help 

America Vote Act funds, and materials to election officials to assist with the 

administration of Federal elections. 

 Alice P. Miller

Chief Operating Officer and Acting 

Executive Director

 
Election Assistance Commission 

TABLE OF CONTENTS

Page 

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

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

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

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

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

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

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

 Performance Data Collection and Validation ................................................................ 13 

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

 Program Performance Indicators ................................................................................... 15 

 Portfolio Analysis .......................................................................................................... 16 

 

I.C. Financial Results ...................................................................................................... 16 

 Budgetary Resources ..................................................................................................... 17 

 Financial Position........................................................................................................... 17 

 Results of Operations ..................................................................................................... 17 

 Limitations of the Financial Statements ........................................................................ 17 

I.D. Analysis of Controls, Management Systems, and Legal Compliance ..................... 18 

 Federal Manager’s Financial Integrity Act .................................................................... 18 

 Audit Follow-Up ............................................................................................................ 20 

 Federal Financial Management Improvement Act ........................................................ 20 

 Accountability of Tax Dollars Act of 2002 ................................................................... 20 

 Federal Information Security Management Act ............................................................ 20 

 Inspector General Act Amendments of 1988................................................................. 20 

 Annual Assurance Statement on Internal Control ......................................................... 22 

 

SECTION II – Financial Section .................................................................................. 23

II.A. Message from the Chief Financial Officer .............................................................. 23 

II.B. Inspector General’s Assessment .............................................................................. 24 

II.C. Independent Auditor’s Report ................................................................................. 27 

II.D. Financial Statements................................................................................................ 50 

II.E. Notes to the Financial Statements ............................................................................ 54 

II.F. Required Supplementary Stewardship Information ................................................. 65 

SECTION III - Other Accompanying Information .................................................... 68 

III.A. IG Assessment of Most Serious Management Challenges Facing EAC ............... 68 

III.B. EAC Response to the Most Serious Management Challenges ............................... 74 

III.C. Improper Payments ................................................................................................ 75 

III.D. Summary of Financial Statement Audit and Management Assurances ................. 75 
Election Assistance Commission 

SECTION I

Management Discussion and Analysis

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

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

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

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

systems, controls, and legal compliance (i.e., Management Assurance signed by the Agency 

Head); compliance with laws and regulations; and actions taken or planned to address problems. 

It provides a balanced analytical assessment, with both positive and negative information, of key 

program and financial performance. The MD&A is a vehicle for communicating insights about 

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

report and the MD&A are in conformance with Office of Management and Budget (OMB) 

Circular A-136 Financial Reporting Requirements. 

I.A BACKGROUND, VISION, MISSION AND ORGANIZATIONAL STRUCTURE

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

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

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

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

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

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

eligible votes counted accurately. 

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

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

Standards Board, Board of Advisors, and Technical Guidelines Development Committee, guide 

the EAC. Its mission is to provide assistance to State and local election officials in the effective 

administration of Federal elections. EAC is statutorily required to:

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

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

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

(VVSG); 

• Accredit voting system test laboratories and certify voting equipment; 

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

Commission; 

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

election officials; 

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

Voter Registration Act (NVRA) of 1993; 

• Provide Congress with a bi-annual report to assess the impact of the NVRA.
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The Standards Board and the Board of Advisors provide advice and guidance to EAC on 

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

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

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

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

Department of Commerce 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 2004, EAC’s annual appropriations 

have included funds for NIST support. 

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

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

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

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

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

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

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

punch card and lever voting machines (Section 102). 

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

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

2004 operating budget was $1.7 million. At the close of the fiscal year, EAC had a staff of 18. 

EAC’s focus in 2004 was to assemble staff, obtain office space, arrange for administrative 

support from the GSA, establish a website, start election administration clearinghouse 

operations, and distribute Federal financial assistance to the States. In FY 2004, EAC also 

appointed a statutorily-required General Counsel. 

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

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

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

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

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

to its stakeholders. 

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

equivalent staffing ceiling of 24. As of the end of FY 2011, EAC had a full-time staff of 38 

employees, including two Commissioners and special assistants. Since its inception, EAC has 

received $2,606,150,000 in requirements payments, $24,350,000 in discretionary grant funds for 

Poll Workers, Mock Elections, Election Data Collection, Voting Technology Improvement 

Research and Equipment and Pre-Election Logic and Accuracy Testing and Post-Election 

Verification and transferred $24,493,000 to NIST. EAC also tracks and provides technical 

assistance on the Section 101 funds. The time period for using the Section 102 funds has 

expired, and EAC is in the process of collecting remaining unused funds. 
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EAC Organization by Program 

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

descriptions of the four offices responsible for implementing the Strategic Plan programmatic 

goals. Following the descriptions is EAC’s organization chart. 

Communications and Clearinghouse

The Communications and Clearinghouse division is responsible for external communications and 

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

Areas of responsibility include: 

• EAC Website and Clearinghouse 

• Social media 

• Media inquires 

• External communications

• Congressional relations

• The Freedom of Information Act 

• National Archives and Records Act 

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

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

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

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

related information from public meetings, hearings and roundtables. 

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

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

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

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

received in real time on a daily or weekly basis. 

Grants Management

The Grants Management Division:

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

• Awards and monitors discretionary grant programs including: Help America Vote 

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

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

Initiative and Accessible Voting Technology Initiative; 

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

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

submitted by States and discretionary grant recipients;

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

audit findings applicable to EAC programs; 

• Reviews amended State Plan submissions; and 
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• Drafts advisory opinions for Commission approval and issuance. 

Research, Policy and Programs

The Research, Policy and Programs division: 

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

discretion of the Commission; 

• Administers the biennial Election Administration and Voting Survey; 

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

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

• Administers the Election Management Guidelines and Quick Start Guides Program to 

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

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

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

Change in an Election Office, Media and Public Relations, and Developing an Audit 

Trail for the verification of votes; 

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

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

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

languages other than English; and

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

successful participation in Federal elections such as registering to vote. 

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

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

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

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

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

elections in urban and rural areas; and the feasibility and advisability of identifying voters by 

Social Security Number. 

Voting System Testing and Certification

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

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

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

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

certification process.

The Testing and Certification (T&C) division: 

• Assists States with voluntary certification of their systems; 

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

system verification; 
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• Promotes quality control in voting system manufacturing through the EAC quality 

monitoring program; 

• Provides procedures to the voting system manufacturers for the testing and certification 

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

HAVA Section 231. 

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

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

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

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

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

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

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

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

field.

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

EAC’s Frequently Asked Questions on eac.gov. 
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I.B. PERFORMANCE GOALS, OBJECTIVES AND RESULTS

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

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

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

EAC adopted the Plan in March 2009. 

How EAC Assesses Performance

EAC has five strategic goals: 

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

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

2. Deliver and manage Federal funds effectively. 

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

administration of elections for Federal office, issue recommended improvements, 

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

responsibilities under the National Voter Registration Act. 

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

improve system security, operation, and accessibility. 

5. Achieve organizational and management excellence.

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

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

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

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

Performance measures are quantifiable, documentable, representations of a capacity, process or 

outcome that is relevant to the assessment of performance.

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

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

EAC.

 

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

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

administering, conducting and participating in Federal elections and how, 

where, and when Americans vote. 

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

Communications and Clearinghouse division. 

Goal 1 FY 2012 Accomplishments

In Fiscal Year 2012, the Communications and Clearinghouse division focused its efforts on 

providing information and best practices to election officials and voters in preparation for the 

2012 federal election cycle. The goal was to build a community of knowledge and expertise that 

would save election officials time and money as they faced the challenge of providing more 
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services to voters with fewer resources and more budget constraints. EAC embraced the tenets 

of Government 2.0 and established a robust network of information sharing for election officials 

and professionals. 

 

EAC.gov Resources

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

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

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

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

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

• Enhanced and improved search tool: based on usability studies and user feedback, EAC’s 

search tool is an intuitive and user friendly way for the public to find information. 

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

meetings, hearings and roundtable discussions. 

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

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

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

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

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

their delivery preferences. 

Social Media and Stakeholder Updates

• The EAC Blog: allows EAC to provide periodic election updates and highlight program 

activities. Weekly Election Updates summarize information on upcoming primaries, 

special elections, and the general election in 2012. Weekly Voting System Testing 

Updates track progress made on EAC system certification. Ongoing blog posts cover 

election related topics to answer frequently asked questions and provide critical or time 

sensitive information to stakeholders and the media. 

• @EACgov on Twitter: another tool used to communicate with stakeholders and the 

public on EAC activities and election information. The number of EAC Twitter 

followers grew from 250 to over 900 from October, 2011 through September, 2012.

• #BReady2012: a Twitter hashtag hosted and created by EAC provides an online meeting 

place for election officials and the public to gather and discuss preparation for the next 

federal election. 

• EAC maintains and emails a public list of election officials and has used the platform to 

inform thousands of people about program activities. For example, EAC can rapidly 

deliver information and updates about the voting system certification program across the 

country. As requests are received from election officials, EAC continues to add more 

links to state & local election social media sites.

Preparing for the 2012 Elections: The Roundtable Series of Public Discussions

In Fiscal Year 2012, EAC continued hosting a series of public roundtable discussions about 

topics and initiatives in preparation for 2012 federal election cycle. Four roundtable discussions 

were webcast live and featured a live Twitterfall. Questions and comments were taken from the 
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public through the webcasts. Participants included election officials and subject experts who 

provided real world solutions to the issues facing election officials and voters as we prepare for 

the 2012 elections. EAC distributed press advisories to national media daybooks and contacts, 

and to the home state/local media outlets representing roundtable participants

• 2012 Voting System Preparation (Nov. 17, 2011), a discussion on cost-effective 

procedures and best practices for conducting voting system preparation activities. Topics 

included ballot preparation, acceptance testing, and logic and accuracy testing. 

• EAC Clearinghouse (March 20, 2012) roundtable to highlight and build on EAC’s role as 

a national clearinghouse and resource for election officials around the country. 

Participants shared ideas and strategies for improving the administration of elections in 

the U.S. 

• Getting Ready for November (June 19, 2012), a discussion on what to expect and how to 

prepare for November and beyond. Participants shared ideas and strategies about voting 

system preparation, ballot preparation, voter education, polling places, voter turnout, 

provisional ballots and more. 

• Veterans Voting This November (Sept 13, 2012), a roundtable where participants 

discussed election operations, procedures and accessibility best practices for improving 

access to voting for veterans with disabilities.

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

Outcome: States and other recipients promptly and accurately receive Federal 

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

administration of elections for Federal office.

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

General. 

Goal 2 FY 2012 Accomplishments

Section 251 Requirements Payments 

Section 251 funds were included in the Election Reform Programs no-year appropriation. 

Congress appropriated $115 million in FY 2008, $100 million in FY 2009 and $70 million in FY 

2010. In FY 2012, EAC disbursed $575,000 from the FY 2008 appropriation, $500,000 from the 

FY 2009 appropriation and $2,464,199 from the FY 2010 appropriation. EAC also paid 

$435,808 from funds made available in FY 2011 that were previously undistributed requirements 

payments or returned Section 102 funds. These funds were requested by the States by September 

30, 2012. The funds are distributed according to a formula based on the voting age population of 

the State per the last Census and the total voting age population of all States. In order to draw 

the funds, the States certify that they are in compliance with applicable laws and requirements 

per HAVA Section 253. 
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A State may use requirements payments to carry out activities to improve the administration of 

elections for Federal office outside of the activities listed under HAVA Title III if the State per 

Section 251 certifies that the State has implemented the requirements of Title III, or the amount 

it will spend on other activities will not exceed an amount equal to the minimum payment 

amount applicable to the State under section 252. Title III includes voting system standards, 

voting information requirements, provisional voting, statewide voter registration lists, and 

identification requirements for voters who register by mail. States may also use requirements 

payments to improve the administration of Federal elections. 

To date, EAC has awarded 89 grants totaling $3.1 million to recruit and train college poll 

workers since the College Program was established in 2004. In FY 2012, EAC closed the 

College Poll Worker grants awarded in FY2009. EAC continued to monitor and work with the 

2010 College Poll Worker grantees to help them carry out successful programs. The grants are 

three-year awards. 

Mock Election Program grants are authorized under HAVA Section 295. To date, EAC has 

awarded grants totaling $998,820 to organizations under this program since the Mock Election 

program was established in 2004. The grants allow students to become familiar with voting

processes and technologies so that when they become eligible to vote they will be more 

comfortable with their civic duties. In FY 2012, EAC closed the Mock Election grants awarded 

in FY 2009. EAC continued to monitor and work with the 2010 Mock Election Program 

grantees to help them carry out successful programs. The 2010 grants are three-year awards. 

The purpose of the Voting System Pre-Election Logic and Accuracy Testing & Post-Election 

Audit Initiative is to develop and document processes and best practices for coordinating quality 

and cost-effective: 1) voting system pre-election logic and accuracy testing (L&A), and 2) postelection audits. Outcomes will include tool kits, guides, best practices, research findings and 

recommendations that could be disseminated widely within the election community. In FY 

2011, EAC awarded $1,463,074 to 12 award recipients. EAC did not award the remaining 

$1,536,926 on no-year funded L&A grants in FY 2012 pending a quorum of the commissioners 

to approve the Notice of Funding Availability. 

The purpose of the Accessible Voting Technology Initiative is to support research and 

development activities to increase the accessibility of new, existing, and emerging technological 

solutions in areas such as assistive technologies, interoperability, and the design of voting 

systems. Funding supports research for: 1) promising technologies and practices; 2) technology 

testing and adoption; and 3) development of administrative processes and training improvements 

to increase accessibility of existing voting procedures and election systems. 

In FY 2011, EAC awarded $4,500,000 to Clemson University in Clemson, SC and $2,500,000 to 

Information Technology and Innovation Foundation in Washington, DC for the initiative. In FY

2012, the projects focused on making pre-election information accessible to voters and using the 

Prime III system in the field for elections. 

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

regarding the administration of elections for Federal office and issue recommended 
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improvements, guidance, translations, and best practices as required by HAVA, and carry 

out responsibilities under the National Voter Registration Act.

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

stakeholders improve the administration of elections for Federal office on the 

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

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

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

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

information. 

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

Goal 3 FY 2012 Accomplishments

Research:

• Release of the results of the 2010 Election Administration and Voting Survey to 

Congress and the general public. This included a data overview and summary, along 

with a survey FAQ.

• Completed final draft of a study on the use of Social Security numbers for the purpose of 

voter registration.

• Completed final draft of a study on Vote Recounts and Contests describing laws and 

procedures in each state. 

• Completed statement of work and awarded a contract to perform research on 

administering elections in urban and rural areas. 

• Completed the process for updating the 2012 Election Administration and Voting Survey 

(EAVS).

• Completed a competitive procurement process and awarded a contract to administer and 

analyze the data for the 2012 EAVS.

• Conducted research on new jurisdictions and languages covered by Section 203 of the 

Voting Rights Act as determined by the 2010 census and considered its application to 

various minority language election resources. 

Policy:

In accordance with HAVA, EAC has responsibility to implement portions of the National Voter 

Registration Act of 1993 (NVRA) that relate to the form and content of the national mail voter 

registration form and include submitting a biennial report to Congress on the impact of the 

NVRA. 

During FY 2012 : 

• Staff received and processed State requests for modifications to the state-specific 

instructions on the National Mail Voter Registration Form from Delaware, Florida, 

Illinois, Maine, Louisiana, Virginia and Washington State. 
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• Made a series of minor technical corrections to the NVRA form so that it was 508 

Complaint in English and easy to complete (fillable) when downloaded from EAC’s 

website.

• Developed an interim procedure for processing state requests to modify their statespecific instructions on the national mail voter registration form. The procedure was 

approved by both the General Counsel and the Executive Director. The interim 

procedure will be used by Staff to process such requests until a quorum is established on 

the Commission.

Programs: 

• EAC program staff conducted a number of presentations and distributed material 

highlighting its educational resources at conferences and workshops around the country. 

For example, presentations in Washington, DC, San Diego and Boston highlighted key 

best practices and tips gathered from EAC research on topics such as poll worker 

recruitment and training, designing ballots, making contingency plans, ensuring voting 

accessibility and communicating with the public.

• In recognition of September as Voter Registration month, EAC staff developed a guide 

“Voting Tips To Enhance Your Voting Experience”. In an effort to enhance the 

November voting experience, EAC distributed 30,000 of these voter’s guides to each of 

the 55 State election offices. 

• Program staff assisted in planning and executing a June roundtable discussion on EAC’s 

clearinghouse of educational resource materials and was a regular contributor to EAC 

blog posts that offered helpful tips and best practices on effective election administration 

procedures.

Throughout the year and, on a continual basis, RPP division staff respond to requests from state 

and local election officials, Congress, the media and the public-at large for a range of materials 

including: 

• Voter’s Guides to Elections; 

• Glossaries of Election Terms in various foreign languages; 

• NVRA registration forms and accompanying state instructions for completing the form.

 

Throughout the year RPP staff has also, on a continuing basis: 

• Clarified various data reported in the biennial EAC Election Administration and Voting 

Survey; 

• Provided assistance regarding the completion of the Federal NVRA form; 

• Responded to requests to clarify certain technical aspects of election procedures and 

processes, and; 

• Met with numerous foreign delegations in order to explain the American election process 

and the role of the EAC. 
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Strategic Plan Goal 4: Build public confidence in elections by testing and certifying 

voting systems to improve system security, operation and accessibility.

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

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

to ensure voting systems meet standards. 

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

Goal 4 FY 2012 Accomplishments 

In FY 2012 in the area of voting system certification, EAC: 

• Certified four voting systems; 

• Drafted and published six Requests for Interpretation (RFIs) to VVSG; 

• Drafted and published two Notices of Clarification to Testing & Certification Program 

Manuals; 

• Published a Final Formal Investigation Report on a voting system; 

• Developed and implemented major updates to the EAC’s Virtual Review Tool (VRT). 

EAC is currently rolling out the addition of the ECO Database to the VRT tool to track 

engineering change orders for all EAC certified voting systems; 

• Published the Certification Timeline for ES&S Unity 3.4.0.0 voting system;

• Conducted a Unisyn Manufacturer Facility audit of the manufacturing process; 

• Observed the installation and acceptance testing of a voting system in Cuyahoga, Ohio; 

and 

• Observed the acceptance testing of a voting system in Arlington, Virginia. 

There are currently four voting systems in active test campaigns. 

In the area of Voluntary Voting System Guidelines (VVSG) and Test Suites, in FY 2012, EAC

received a new revised version of VVSG 1.1 from NIST. EAC incorporated NIST comments 

and new RFI’s into VVSG 1.1. EAC posted the second draft version of VVSG 1.1 for a 90 day 

Public Comment period beginning September 6, 2012. Subsequent comments regarding the 

comment period coinciding with the General election persuaded EAC to revise the Public 

Comment period to 130 days. 

Regarding laboratory accreditation in FY 2012, EAC performed a laboratory re-accreditation 

audit; an EAC and NVLAP initial laboratory audit; and a lab re-accreditation audit. 

Further, in FY 2012, EAC attended meetings with NASED; Election Center; EVN, technical 

reviewers; manufacturers; Pennsylvania State Election Officials; the Technical Guidelines 

Development Committee (TGDC); NIST;, a voting system manufacturer for the kick-off 

overview meeting on a new system in Omaha, Nebraska; with election officials in Indianapolis, 

Indiana on State Certification; and USENIX on voting technology. 
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Finally, EAC published the Survey of Internet Voting (SIVAR) document on the EAC web site.

Strategic Plan Goal 5 consists of one clear-cut objective: Implement a high performance 

organization. 

Goal 5 is administered by the Commissioners, the Standards Board, the Board of Advisors, the 

Technical Guidelines Development Committee, Executive Director, Chief Operating Officer and 

Chief Financial Officer with support from the Offices of the General Counsel and Administration.

Each quarter, EAC reports to the Chair and Ranking Member of the House Subcommittee on 

Elections, Committee on House Administration on the status of 82 OIG audit recommendations 

made as of March 2008. To date, only three of the 82 recommendations remain open. Two of 

the open recommendations require a quorum of the Commission for final resolution. 

On the performance measure regarding meeting annual performance measures, management is 

working to foster a culture of accountability among staff. The agency was successful in

improving staff satisfaction ratings on the 2011 annual employee survey. Agency directors 

responsible for implementation of the EAC Strategic Plan goals report on their division metrics 

in the Agency Financial Report in November, the Annual Performance Report along with the 

Congressional Budget Justification in February, and on planned metrics in the OMB Budget 

Justification each September. 

EAC financial staff complete assessable unit risk assessment questionnaires and individual 

letters of assurance, and the Chief Operating Officer provides a letter of assurance. The letters of 

assurance are rolled into the CFO’s Annual Statement of Assurance. 

EAC will continue to focus on resolution of issues identified in audits, setting up sound systems 

and policies and procedures, working with managers on the relationship between budget and 

performance, maximizing use of staff and financial resources, and training EAC staff on 

financial management processes and their responsibilities.

Performance Data Collection and Validation 

Managing for results and producing an Annual Performance Plan requires valid, reliable and 

high-quality performance measures and data. EAC is committed to the continuous improvement 

of its performance and financial management data. To this end, EAC verifies mandatory source 

documentation, and documentation of calculation methodology for performance indicators to 

provide reasonable assurance that the reported programmatic performance data is relevant and 

reliable. 

Key Performance Measures

o Implement 90 percent of the OIG audit 

recommendations within agreed upon timeframes.

o Meet annual performance measures.
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Summary Performance Information 

By program, summary performance information for FY 2012 is as follows:

Communications & Clearinghouse – 

• Maintained The Election Official Exchange; 

• Offered a series of public roundtable discussions 2012 Voting System Preparation; EAC 

Clearinghouse; Getting Ready for November; and Veterans Voting This November; 

• Provided Customized program updates so the public can customize the kind of 

information and the frequency that it is delivered via EAC’s newsletter and automatic 

program updates; and

• Expanded The EAC Blog, @EACgov on Twitter, and #BReady2012.

Grants Management – 

• Disbursed requirements payment grants for States certifying compliance from funds 

obligated in FYs 2008-2011; 

• Closed the College Poll Worker and the Mock Election grants awarded in FY 2009; 

• Continued to monitor and provide technical assistance to 2010 College Poll Worker, 

2010 Mock Election Program, Voting System Pre-Election Logic and Accuracy Testing 

& Post-Election Audit Initiative, and Accessible Voting Technology Initiative grantees to 

help them carry out successful programs. the latter projects focused on making preelection information accessible to voters and using a specialized system in the field for 

elections. 

Research, Policy and Programs – 

• Released the results of the 2010 Election Administration and Voting Survey (EAVS) to 

Congress and the public, and completed the process for updating the 2012 EAVS;

• Completed final drafts of studies on the use of Social Security numbers for the purpose of 

voter registration, and on Vote Recounts and Contests describing laws and procedures in 

each state; 

• Awarded contracts to perform research on administering elections in urban and rural 

areas, and to administer and analyze the data for the 2012 EAVS; 

• Researched the new jurisdictions and languages covered by Section 203 of the Voting 

Rights Act as determined by the 2010 census and analyzed its application to various 

minority language election resources; 

• Processed State requests for modifications to the state-specific instructions on the 

National Mail Voter Registration Form; and

• Developed and distributed 30,000 copies of “Voting Tips To Enhance Your Voting 

Experience” to the 55 State election offices. 
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Voting Systems Testing and Certification – 

• Certified four voting systems and published a certification timeline for a fifth system, and 

conducted testing campaigns for four systems; 

• Published six Requests for Interpretation (RFIs) to the Voluntary Voting System 

Guidelines (VVSG); two Notices of Clarification to Testing & Certification Program 

Manuals; a Final Formal Investigation Report on a voting system; and the Survey of 

Internet Voting (SIVAR) document; 

• Developed and implemented major updates to EAC’s Virtual Review Tool (VRT); 

• Performed audits of a voting system manufacturing facility, two labs for re-accreditation, 

and an EAC and NVLAP initial laboratory audit; and

• Received a revised version of VVSG 1.1 from NIST, incorporated NIST comments and 

new RFI’s into the guidelines, and posted the second draft version for Public Comment. 

Program Performance Indicators

The following table presents key EAC FY 2012 program performance data. As much detailed 

performance information as possible will be presented, and variances discussed, in the FY 2012 

Annual Performance Report due February 15, 2013 along with the FY 2014 Congressional 

Justification. 

EAC FY 2012 Performance Summary

Program Performance Indicator

Type of 

Indicator Planned Actual

Strategic Goal 1: Communicate

Issue Clearinghouse policy Output Final

In Final Draft (quorum 

required for final approval)

Issue Policies/Procedures to process requests from 

outside EAC Output Final In Final Draft

Strategic Goal 2: Fund and Oversee

Award grants within established timeframes Output 100%

L&A round two pending 

quorum

 

Resolve 100 percent of audit findings within 

established time frames. Output 100%

No overdue management 

decisions as of 9/30/12

Negotiate indirect cost rates within 30 days of receipt 

of acceptable indirect cost proposals Output 100%

Submit requests for 

negotiation to HHS upon 

receipt

Strategic Goal 3: Study, Guide, Assist 

Issue reports to Congress by statutory deadlines Output 3 3

 

Disseminate all completed research project reports to 

stakeholders Output 100% 100% 

Strategic Goal 4: Test and Certify

Produce updates to the VVSG in Fiscal years 2010 

and 2013 Output VVSG Version 1.1 updated

Conduct at least one review of a manufacturing 

facility of a registered manufacturer at least once 

every 4 years. Output 1 1
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Plan to conduct field reviews for at least 50 percent of 

jurisdictions that volunteer for reviews Output 50% 100%

Portfolio Analysis

 

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

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

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

the collection of election data at the precinct level during the 2008 Federal election. In FY 2012, 

the Salaries and Expenses appropriation of $11.5 million funded a $2.75 million transfer to 

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

supplies and equipment. 

I.C. FINANCIAL RESULTS

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

condition as portrayed in the financial statements and notes to the statements. It explains 

changes in assets, liabilities, costs, revenues, obligations, and outlays; includes comparisons of 

FY 2012 to FY 2011; and discusses the relevance of balances and amounts in the financial 

statements and notes. The changes are discussed in the context of whether the year’s activities 

improved or deteriorated the agency’s financial position. 

Budgetary Resources 

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

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

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

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

from appropriations and unobligated balances of Budget Authority provided in previous years in 

the no year Election Reform Program account. 

For FY 2012, the available budgetary resources were $20.8 million, down from $32.3 million in 

FY 2011. In FY 2012, EAC’s appropriations totaled $11.5 million, for salaries and expenses, 

down from $16.3 million appropriated in FY 2011. 

In FY 2008, EAC recorded $50.7 million of unspent HAVA Section 102 payments paid to the 

States in FY 2003 and FY 2004. These funds were originally disbursed by the General Services 

Administration (GSA) acting as Administrator. Any funds remaining unspent as of November 1, 

2011, have returned or are in the process of being returned to EAC to be disbursed as HAVA 

Section 251 payments. 

Obligations Incurred decreased from $19.8 million in FY 2011 to $9,153,251 in FY 2012 

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

reduction in the annual appropriation. Unobligated Balance – Apportioned decreased from $5.6 

million in FY 2011 to $3.2 million in FY 2012. 
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Financial Position

Assets

EAC had $40.1 million in total assets (Fund Balance with Treasury, Advances and Prepayments, 

and Other Assets) as of September 30, 2012, down from $47.9 million in FY 2011. This is 

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

Liabilities

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

of $2.2 million as of September 30, 2011 and September 30, 2012. As of September 30, 2012, 

all Requirements Payments due had been disbursed and no accrual was recorded. 

Net Position

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

FY 2012 to $37.9 million from $45.7 million in FY 2011. Unexpended Appropriations 

decreased primarily due to expenditure of Requirements Payments. 

Results of Operations

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

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

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

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

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

Requirements Payments and the other EAC grants. In years in which EAC receives significant 

appropriation for these HAVA funds, this program, Fund and Oversee, typically exceeds the 

other programs in overall costs. Other general agency overhead costs such as rent, human 

resource costs and financial management costs are allocated on a per employee basis. This 

methodology is outlined in EAC’s Cost Allocation Model and is reviewed by the financial 

statement auditors each year to ensure the accurate allocation of expenses to each program. 

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

for the EAC was $14.0 million for Fiscal Year 2012. 

Limitations of the Financial Statements 

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

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

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

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

prescribed by the Office of Management and Budget, the statements are in addition to the 

financial reports that are used to monitor and control budgetary resources, which are prepared 

from the same books and records. 
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The statements should be read with the realization that they are for a component of the U.S. 

Government, a sovereign entity. 

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

COMPLIANCE

Internal Control Environment

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

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

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

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

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

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

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

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

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

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

and used for decision-making. 

The agency can provided limited assurance that internal controls over financial reporting to 

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

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

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

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

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

follows: 

Federal Manager’s Financial Integrity Act

 

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

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

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

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

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

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

During FY 2008, the EAC evaluation was limited to identifying weaknesses disclosed in reports 

issued by the General Accountability Office and by the EAC Office of the Inspector General, 

including the weaknesses identified through the year’s financial statement audit. During FY 

2009, EAC began the process of designing, implementing, and assessing internal controls in full 

compliance with Office of Management and Budget Circular A-123, Management’s 

Responsibility for Internal Control, and FFMIA. A-123 requires the managers of Federal 

agencies to take responsibility for assessing internal controls over financial reporting. EAC 

contracted for independent review of the key business processes impacting financial operations 
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and the financial statements, and business processes with no material impact on the financial 

statements but which have some potential for risk or exposure for the agency. 

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

internal controls to further demonstrate evaluation of internal controls. 

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

lack of effective written policies and procedures. EAC plans on finalizing records management 

procedures in FY 2013. EAC plans on adopting Communications and Clearinghouse Policy and 

National Voter Registration Act revised rules once a quorum is in place. 

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

financial reporting are strong. 

Entity-Wide Security Program

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

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

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

 

During FY 2012, EAC continued work on an information technology (IT) modernization project 

that began in FY 2011to enhance the agency’s network infrastructure. As part of the agency’s 

effort to improve IT services, EAC replaced aging laptop workstations with high-performance 

desktop workstations as well as finished upgrading to Microsoft Office 2007 from Office 2003. 

The agency migrated from LOTUS Notes email messaging to Microsoft Exchange server 2010 

with Outlook 2007 as email client and enabled secured online email access for users to manage 

their emails when teleworking. EAC upgraded servers from Windows 2003 to Windows 2008, 

and Windows XP workstations to Windows 7. 

EAC implemented a self-contained system recovery backup solution at the main office as well as 

at the Continuity of Operations (COOP) site to protect mission-critical data against system 

downtime and for disaster recovery purposes. To ensure internal security, EAC applied 

additional access controls including an intrusion detection appliance. 

Further, EAC finished work to upgrade of the telephone system to a menu-driven interactive 

voice response (IVR) system. The main switch number uses a telephone menu to direct callers 

to offices and provides voter contact information for State voter information lines during 

elections. To improve internal and external communication, EAC completed work on unified 

messaging with a Voice Over IP (VOIP) phone system that allows users to access voicemail via 

email, a custom auto-attendant, call forwarding and audio conferencing at anytime from any 

location. 

The FY 2012 Federal Information Security Management Act (FISMA) evaluation report found 

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

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

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

Privacy Act requirements; established a continuous monitoring program that substantially 
Election Assistance Commission 

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addressed all NIST requirements (using Asset management and IT service desk utilities); 

provided annual security awareness training and specialized training to its IT specialists; 

developed and tested a contingency plan; and had established required access controls sufficient 

to meet identified risks. 

A recommendation that was made in the report to strengthen the control over servers and 

perform expanded vulnerability scans. The recommendation was implemented during the course 

of the audit. The table below summarizes EAC’s level of compliance in the FY 2012 FISMA 

evaluation. There were no findings of “not in substantial compliance.” There were no 

deficiencies for a beginning balance, and no deficiencies were identified in FY 2012. 

 

Audit Follow-Up

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

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

management and the OIG to complete actions necessary to respond to audit findings. OCFO 

tracks the completion of the audit recommendations in a Quarterly Audit Recommendation 

Tracking Report. The report is carefully reviewed by EAC and is submitted each month to 

Congressional Oversight staff. As of September 30, 2012, EAC has three open findings to 

resolve. EAC made improvements in all Agency management challenges. EAC also considers 

and responds to recommendations from audits and reviews conducted by the Government 

Accountability Office. 

Federal Financial Management Improvement Act

Per OMB Bulletin No. 07-04 “Audit Requirements for Federal Financial Statements,” EAC as an 

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

the Federal Financial Management Improvement Act.

Accountability of Tax Dollars Act of 2002 

 

The Fiscal Year 2012 financial statement audit report identified material weaknesses in internal 

control over financial reporting. 

Federal Information Security Management Act

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

2012. 

 

Inspector General Act Amendments of 1988

 

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

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

recipients of HAVA grant funds are State governments. In FY 2012, EAC resolved audit reports 

issued by the IG for Alabama, Utah, Pennsylvania, Illinois, New Jersey, Kansas, Texas, Arizona, 
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and Nevada. In FY 2012, EAC also resolved Single Audit Act findings for West Virginia, 

Virginia, Bullitt County and Parke County. 
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U.S. ELECTION ASSISTANCE COMMISSION

1201 New York Ave. NW – Suite 300 

Washington, DC 20005 

November 15, 2012 

Annual Assurance Statement on Internal Control

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

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

objectives of the Federal Managers’ Financial Integrity Act (FMFIA) and Office of Management 

and Budget (OMB) Circular A-123 Management’s Responsibility for Internal Control. Internal 

control is an integral component of EAC’s management that provides reasonable assurance the 

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

financial reporting, and compliance with applicable laws and regulations. 

 

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

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

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

Chief Financial Officer (OCFO). With respect to assessing internal control designed to ensure 

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

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

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

departmental risk assessments and letters of assurance over the accounting, budget, grants, 

procurement and overall OCFO functions. With respect to 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 2012, EAC worked to resolve one material weakness in the effectiveness of its internal 

control over operations: lack of effective written policies and procedures in the areas of Human 

Resources, Communications and Clearinghouse, and National Voter Registration Act 

regulations. EAC finalized Human Resources procedures as of this writing, and will work in FY 

2013 to finalize the remaining policies and procedures once there is a quorum of Commissioners. 

The auditor’s report presented in the Agency Financial Report identifies two material 

weaknesses in internal control over financial reporting and concludes that a disclaimer of opinion 

on the statements was required. Due to material weaknesses in internal controls over financial 

management reporting, the Commission provides a qualified statement of assurance that the 

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

Financial Integrity Act. We expect to address the report recommendations in time to obtain an 

unqualified opinion for FY 2013 as we did initially in FY 2009. 

 

 

 

Alice P. Miller
Election Assistance Commission 

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SECTION II

Financial Section

II.A. MESSAGE FROM THE CHIEF FINANCIAL OFFICER 

EAC’s financial statements for FY 2012 are an integral component of the Agency Financial 

Report (AFR). This is the fifth year in its nine year operational existence that EAC has prepared 

financial statements and submitted them for audit. This is the fourth year EAC is presenting an 

AFR in place of the Performance and Accountability Report. EAC presents summarized 

performance data in this report, and will provide detailed data in February 2013 in conjunction 

with the Fiscal Year (FY) 2014 Congressional Justification. 

 For FYs 2009 through 2011, EAC had unqualified audited financial statement opinions. From 

April 2009 through late September 2011, EAC had a full-time staff accountant. However, as you 

will see in the independent auditor’s report and the agency’s response, the auditors were unable 

to opine on the FY 2012 financial statements. This was due primarily to transfer of financial 

services from one federal agency to another late in the fiscal year and running out of time to 

complete the conversion before end-of-year financial statements were due. Had the transfer of 

data between the providers been timely, the internal controls used by the providers been 

compatible, and the new provider not been upgrading its financial system at the time we 

transferred, we believe that the audit opinion for FY 2012 would have been unqualified. 

During FY 2012, EAC was in a position where we had to take the risk of changing financial 

services to another federal agency as a condition for obtaining procurement services via 

memorandum of understanding with another federal agency. EAC’s former procurement 

services provider was no longer able to provide support due to staffing constraints, and no other 

agency contacted was able to provide established procurement services for the same reason. The 

decisions to outsource procurement services and not hire a full-time staff accountant were made: 

1) to increase efficiency by tapping into administrative services provided by other agencies; 2) in 

response to long-standing criticism that EAC has too many administrative staff at the expense of 

program staff; and 3) to potential elimination or dismantling of the agency and proposed large 

cuts to the agency’s operations budget. 

Efficiency increased in FY 2012 with automation of travel, procurement and purchase card 

systems for the first time, but it became apparent that even though EAC is a micro-agency, a fulltime staff accountant with knowledge of agency programs and operations is critical to our 

success. We will hire a full-time accountant and develop an action plan to address audit findings 

and restore our internal controls to the level we operated under when we had a full-time staff 

accountant. The action plan will include detailed procedures and training related to advances, 

accruals, and accounts receivable; and a review of accounting treatment for FY 2012 financial 

entries. We expect that issues described in the auditors’ report will be resolved quickly. 

Annette Lafferty

November 15, 2012 
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II.B. INSPECTOR GENERAL’S ASSESSMENT 
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II.C. INDEPENDENT AUDITORS’ REPORT 
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 II.D. FINANCIAL STATEMENTS (UNAUDITED)

The Balance Sheet presents information as of September 30, 2012, amounts of future economic 

benefits owned or managed by EAC (i.e., assets), amounts owed by EAC (i.e., liabilities), and 

amounts that comprise the difference (i.e., net position).
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II.E NOTES TO THE FINANCIAL STATEMENTS (Unaudited)

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

The 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. 

Four EAC commissioners are appointed by the President and confirmed by the United States 

Senate. 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 Operations and 

Facilities, Engineering and Development 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 
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amended, and EAC accounting policies which are summarized in this note. These statements, 

with the exception of the Statement of Budgetary Resources, are different from financial 

management reports, which are also prepared pursuant to OMB directives that are used to 

monitor and control EAC’s use of budgetary resources. The financial statements 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 EAC’s funds with Treasury in 

expenditure accounts. Appropriated funds recorded in expenditure accounts are available to pay 

current liabilities and finance authorized purchases. 

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 
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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, 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. 

 

Total prepayments and advances to non-governmental entities as of September 30, 2012 were 

$1,093. The prepayments and advances to governmental entities were $392,040 as of September 

30, 2012. These included deposited accounts with the Department of Interior, Acquisition 

Services Directorate to provide acquisition support services to EAC. 

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 
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also accrues liabilities for Section 251 grants, research and development grants for such items as 

improving voting technology and processes for injured military personnel, and logic and 

accuracy testing grants. See the required supplemental information for a more detailed 

explanation of the grants. 

Liabilities not covered by budgetary resources are liabilities that are not funded by any current 

appropriation or other funding source. These liabilities consist of accrued annual leave. 

I. Annual, Sick, and Other Leave

Annual leave is accrued as it is earned, and the accrual is reduced as leave is taken. The balance 

in the accrued leave account is adjusted to reflect current pay rates. Liabilities associated with 

other types of vested leave, including compensatory, restored leave, and sick leave in certain 

circumstances, are accrued at year-end, based on latest pay rates and unused hours of leave. 

Funding will be obtained from future financing sources to the extent that current or prior year 

appropriations are not available to fund annual and other types of vested leave earned but not 

taken. Nonvested leave is expensed when used. Any liability for sick leave that is accrued but 

not taken by a Civil Service Retirement System (CSRS)-covered employee is transferred to the 

Office of Personnel Management (OPM) upon the retirement of that individual. Credit is given 

for sick leave balances in the computation of annuities upon the retirement of Federal Employees 

Retirement System (FERS)-covered employees effective at 50% beginning FY 2010 and 100% 

in 2014. 

J. Accrued and Actuarial Workers’ Compensation

The Federal Employees' Compensation Act (FECA) administered by the U.S. Department of 

Labor (DOL) addresses all claims brought by 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 EAC 

terminates without cause may receive unemployment compensation benefits under the 

unemployment insurance program also administered by DOL, which bills each agency quarterly 

for paid claims. Future appropriations will be used for the reimbursement to DOL. 

K. Retirement Plans

EAC employees participate in either the CSRS or the FERS. The employees who participate in 

CSRS are beneficiaries of EAC matching contribution, equal to seven percent of pay, distributed 

to their annuity account in the Civil Service Retirement and Disability Fund.

Prior to December 31, 1983, all employees were covered under the CSRS program. From 

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.
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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. 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 

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 2012 and 2011 to the extent 

directed by accounting standards. 

O. Grants 

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 
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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.

NOTE 2. FUND BALANCE WITH TREASURY

Fund balance with Treasury account balances as of September 30, 2012 and 2011, were as 

follows: 

2012 

(Unaudited) 2011

Fund Balances:

Appropriated Funds $ 38,450,929 $ 45,153,024 

Total $ 38,450,929 $ 45,153,024 

Status of Fund Balance with Treasury:

Unobligated Balance

 Available $ 3,181,236 $ 5,636,700 

 Unavailable 8,493,852 6,788,338 

Obligated Balance Not Yet Disbursed 26,775,841 32,727,986 

Total $ 38,450,929 $ 45,153,024 

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, 2012 and 2011, were as follows: 
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2012 2011

(Unaudited)

Intragovernmental

Accounts Receivable $ 20,000 $ -

Total Intragovernmental Accounts Receivable $ 20,000 $ -

With the Public

Section 102 Grants $ 302,096 $ -

Employee Receivables 2,823 326

Total Public Accounts Receivable $ 304,919 $ 326

Total Accounts Receivable $ 324,919 $ 326

The accounts receivable is primarily made up of moneys due from the states for unused Section 

102 grants and funds that had been advanced for services that were not used. 

Historical experience has indicated that the majority of the receivables are collectible. There are 

no material uncollectible accounts as of September 30, 2012 and 2011. 

NOTE 4. ADVANCES AND PREPAYMENTS

2012 2011

(Unaudited)

Intragovernmental

Advances and Prepayments $ 392,039 $ 612,994

Total Intragovernmental $ 392,039 $ 612,994

With the Public

Advances and Prepayments $ 1,093 $ 793,395

Total Public $ 1,093 $ 793,395

Total Advances & Prepayments $ 393,132 $ 1,406,389

NOTE 5. PROPERTY, EQUIPMENT, AND SOFTWARE

Schedule of Property, Equipment, and Software as of September 30, 2012 (Unaudited): 
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Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Leasehold Improvements 675,216 422,010 $ 253,206

Furniture & Equipment 1,230,518 686,910 543,608

Software 172,721 58,831 113,890

Software Under Development 28,835 - 28,835

Total $ 2,107,290 $ 1,167,751 $ 939,539

Schedule of Property, Equipment, and Software as of September 30, 2011: 

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Leasehold Improvements 675,216 261,647 $ 413,569

Furniture & Equipment 1,230,518 485,191 745,327

Software 172,721 17,261 155,460

Software Under Development 28,835 - 28,835

Total $ 2,107,290 $ 764,099 $ 1,343,191

Depreciation expense was $403,652 and $399,514 for fiscal years 2012 and 2011, respectively. 

NOTE 6. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

The liabilities for EAC as of September 30, 2012 and 2011include 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. 

2012 2011

(Unaudited)

Intragovernmental – FECA $ 1,057 $ 1,057

Unfunded Leave 220,039 293,961

Total Liabilities Not Covered by Budgetary Resources $ 221,096 $ 295,018

Total Liabilities Covered by Budgetary Resources 1,951,827 1,909,200

Total Liabilities $ 2,172,923 $ 2,204,218

FECA and the Unemployment Insurance liabilities represent the unfunded liability for actual 

workers compensation claims and unemployment benefits paid on EAC’s behalf and payable to 

the DOL. 
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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, 2012 (Unaudited) were as follows: 

Current Year:

Current Non Current Total

Intragovernmental

Other Payroll Liabilities $ 13,983 $ - $ 13,983

Payroll Taxes Payable 235,144 - 235,144

Total Intragovernmental Other Liabilities $ 249,127 $ - $ 249,127

With the Public

 Payroll Taxes Payable $ 32,693 $ - $ 32,693

 Accrued Funded Payroll and Leave 169,489 - 169,489

 Unfunded Leave 220,039 - 220,039

 Grants 353,744 - 353,744

Total Public Other Liabilities $ 775,965 $ - $ 775,965

Other liabilities account balances as of September 30, 2011 were as follows: 

Prior Year:

Current Non Current Total

Intragovernmental

Other Payroll Liabilities $ 1,057 $ - $ 1,057

Payroll Taxes Payable 18,854 - 18,854

Total Intragovernmental Other Liabilities $ 19,911 $ - $ 19,911

With the Public

 Accrued Funded Payroll and Leave 83,138 - 83,138

 Unfunded Leave 293,961 - 293,961

Unemployment 22,258 - 22,258

Payroll Taxes Payable 1,739 - 1,739

Total Public Other Liabilities $ 401,096 $ - $ 401,096

NOTE 8. LEASES

EAC has no capital leases. EAC occupies office space under a lease agreement that is accounted 

for as an operating lease. EAC has a lease for the headquarters office located at 1201 New York 

Avenue, NW, Suite 300 Washington, DC which expires on March 31, 2014. EAC also has a 
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lease for additional space located at 1225 New York Ave, NW, Washington, DC which also 

expires on March 31, 2014. Below is a schedule of future payments for the term of the lease. 

Operating Lease:

Washington, DC 

Fiscal Year Building Totals

2013 $ 1,043,565 $ 1,043,565 

2014 528,059 528,059 

Total Future Payments $ 1,571,624 $ 1,571,624

The operating lease amount does not include estimated payments for leases with annual renewal 

options. 

NOTE 9. INTRAGOVERNMENTAL COSTS AND EXCHANGE REVENUE

Intragovernmental costs and revenue represent exchange transactions between EAC and other 

federal government entities, and are in contrast to those with non-federal entities (the public). 

Such costs and revenue are summarized as follows: 

2012 2011

(Unaudited)

Communications and Clearinghouse

 Intragovernmental Costs $ 146,768 $ 600,452

 Public Costs 524,167 1,410,611

Total Costs 670,935 2,011,063

Fund and Oversee

 Intragovernmental Costs 1,876,169 1,143,629

 Public Costs 6,700,546 99,232,694

Total Costs 8,576,715 100,376,323

Research, Policy, and Programs

 Intragovernmental Costs 385,924 887,091

 Public Costs 1,378,290 2,083,999

Total Costs 1,764,214 2,971,090

Testing and Certification

 Intragovernmental Costs 663,111 971,908

 Public Costs 2,368,233 2,283,253

Total Costs 3,031,344 3,255,161

 Net Program Costs $ 14,043,208 $ 108,613,637
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NOTE 10. BUDGETARY RESOURCE COMPARISONS TO THE BUDGET OF THE 

UNITED STATES GOVERNMENT

The President’s Budget that will include fiscal year 2012 actual budgetary execution information 

has not yet been published. The President’s Budget is scheduled for publication in February 

2013 and can be found at the OMB Web site: http://www.whitehouse.gov/omb/. The 2013 

Budget of the United States Government, with the "Actual" column completed for 2011, has 

been reconciled to the Statement of Budgetary Resources and there were no material differences. 

The budget that includes the fiscal year 2011 actual execution information is as follows: 

Budgetary Obligations Net

FY2011 Resources Incurred Outlays

Statement of Budgetary Resources $32,258,816 19,833,778 $ $105,827,756

Spending Authority from Offsetting

 Collections (1,136,128)

Unobligated Balance Not Available (6,788,338)

Rounding 1,665,650 1,166,222 172,244

Budget of the U.S. Government $26,000,000 $21,000,000 $106,000,000

NOTE 11. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED

Obligations incurred and reported in the Statement of Budgetary Resources in 2012 and 2011 

consisted of the following:

2012 2011

(Unaudited)

Direct Obligations, Category B $9,153,251 $19,833,778

 Net Obligations Incurred $9,153,251 $19,833,778

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 fiscal years ended September 30, 2012 and 2011, budgetary resources obligated for 

undelivered orders amounted to $25,559,241 and $30,818,786, respectively. 

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: 
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2012 2011

(Unaudited)

Resources Used to Finance Activities:

Budgetary Resources Obligated

Obligations Incurred $ 9,153,251 $ 19,832,101

Spending Authority From Offsetting Collections and Recoveries (2,355,058) (3,684,241)

Net Obligations 6,798,193 16,147,860

Other Resources

Imputed Financing From Costs Absorbed By Others 231,849 352,837

Other Resources (93) -

Net Other Resources Used to Finance Activities 231,756 352,837

Total Resources Used to Finance Activities 7,029,949 16,500,697

Resources Used to Finance Items Not Part of the Net Cost of Opera 6,683,529 91,745,784

Total Resources Used to Finance the Net Cost of Operations 13,713,478 108,246,481

Components of the Net Cost of Operations That Will Not Require or

Generate Resources in the Current Period: 329,730 367,156

Net Cost of Operations $ 14,043,208 $ 108,613,637

II.F. REQUIRED SUPPLEMENTARY STEWARDSHIP INFORMATION (Unaudited)

Non-Federal Physical Property

Stewardship investments are substantial investments made by the Federal Government for the 

benefit of the nation but are not physical assets owned by the Federal Government. When 

incurred, they are treated as expenses in determining the net cost of operations. However, these 

items merit special treatment so that users of Federal financial reports know the extent of 

investments that are made for long-term benefit. Such investments are measured in terms of 

expenses incurred for non-Federal physical property, human capital, and research and 

development. In October 2002, Congress passed the Help America Vote Act (HAVA). 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.

Fiscal Year 

2008

Fiscal Year 

2009

Fiscal Year 

2010

Fiscal Year 

2011

Fiscal Year 

2012

Section 102 

Funds $ 2,103,632 $ 19,905,709 $36,853,333 - -

Section 251 

Funds 358,536,246 262,018,224 105,865,616 78,575,556 3,285,126

Data Collection 

Grants - 447,650 188 - -

Total $360,639,878 $282,371,583 $142,719,137 $78,575,556 $3,285,126
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Section 102 Funds. Section 102 funds were disbursed to States for the primary purpose of 

replacing punch card or lever voting machines. As such, Section 102 funds have been used to 

purchase physical property. These funds will be converted to Section 251 requirement payments 

and redistributed to the states. 

Section 251 Funds. Section 251 requirements payments are to be used only to meet the 

requirements of Title III Uniform and Nondiscriminatory Election Technology and 

Administration Requirements. As such, Requirements Payments have been used in part to 

purchase physical property but also to provide funds to States to carry out other activities to 

improve administration of elections. 

Data Collection Grants. In Fiscal Year 2008, EAC awarded $10.0 million in Election Data 

Collection Grants to five States. These funds were to be used to improve the collection of 

precinct-level data relating to the November 2008 elections. Based on budgetary information 

supplied by each State, Federal physical property purchased with these funds is presented above. 

Research and Development

 

The EAC has three research and development initiatives. These initiatives provide 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. 

Initiative Fiscal Year 2012

Military Heroes $220,507

Accessible Voting 

Disability Technology 1,409,969

Logic and Accuracy 275,040

Total $1,905,516

Military Heroes Initiative

The U.S. Election Assistance Commission has made available up to $500,000 in funds for a twoyear grant focused on research to improve voting technology and processes for recently injured 

military personnel. The purpose of this grant is to enable better understanding of the needs of 

injured military personnel in major hospital, recovery and rehabilitation facilities related to 

election processes, including; 1) documentation of current practices associated with voting 

activities at these facilities; 2) identification of barriers that may prevent this population from 

voting privately and independently; and 3) reviews and assessments of new and innovative 

technologies for assisting military personnel’s ability to participate in the electoral process. 

Accessible Voting Disability Technology Initiative

The U.S. Election Assistance Commission has made available up to $7,000,000 in grant funds 

for a three-year grant to fund research to identify and develop technological and administrative 

solutions that help ensure all citizens can vote privately and independently, a requirement of the 

Help America Vote Act (HAVA) of 2002 (42 U.S.C. §15441). This initiative will support 
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research and development activities to increase the accessibility of new, existing, and emerging 

technological solutions in such areas as assistive technologies, interoperability, and design of 

voting systems. 

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

The U.S. Election Assistance Commission has awarded $1.4 million in grant funds to develop 

and document processes and best practices for coordinating quality and cost-effective A) voting 

system pre-election logic and accuracy testing (L&A) and B) post-election audits. Funds will 

support the research, development, documentation, and dissemination of a range of procedures 

and processes used in managing and conducting high-quality L&A testing and post-election audit 

activities by type of voting method, vendor-specific equipment, jurisdiction size, or other ways. 

An additional $1.5 million will be available to state and local entities that currently lack adequate 

funding or capacity for conducting pre-election logic and accuracy testing and post-election 

audits to support the implementation of pilot programs funded under this funding notice. 
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SECTION III

Other Accompanying Information

III.A. MOST SERIOUS MANAGEMENT CHALLENGES FACING EAC ACCORDING

TO THE INSPECTOR GENERAL
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III.B. EAC’S RESPONSE TO THE MOST SERIOUS MANAGEMENT CHALLENGES 

FACING EAC ACCORDING TO THE INSPECTOR GENERAL
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III.C. IMPROPER PAYMENTS

The Improper Payments Act requires each Federal agency to assess all programs and identify 

which, if any, may be subject to high risk with respect to improper payments. For fiscal year 

2011, EAC does not believe that it has any programs where the erroneous payments could 

exceed 2.5 percent of program payments or $10.0 million threshold (set in OMB Guidance) to 

trigger further agency action.

III.D. SUMMARY OF FINANCIAL STATEMENT AUDIT AND MANAGEMENT 

ASSURANCES

SUMMARY OF FISCAL YEAR 2012 FINANCIAL STATEMENT AUDIT

Audit Opinion Disclaimer

Restatement None

Material Weaknesses

Beginning 

Balance New Resolved Consolidated 

Ending 

Balance 

Financial Accounting & Reporting 0 2 0 0 2

Total Material Weaknesses 0 2 0 0 2

Summary of Management Assurances

Statement of Assurance (FMFIA§ 2) Qualified

Material Weaknesses (FMFIA§ 4)

Systems conform to financial management system 

requirements

No. Summary

Beginning 

Balance New Resolved Consolidated

Ending 

Balance

1 Material Weaknesses 

(FMFIA§ 2) 1 0 0 0 1 

Total 1 0 0 0 1
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