U.S. ELECTION 

ASSISTANCE

COMMISSION

 

 

 

 

 

 

AGENCY FINANCIAL

REPORT

 

 

 

 

 

 

 

 

 

November 16, 2015
Election Assistance Commission

ABOUT THIS REPORT

For FY 2015 reporting purposes, the U.S. Election Assistance Commission (EAC) has 

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

along with the Congressional Budget Justification, and a Citizens’ Report. The reports are 

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

respectively. The AFR allows EAC to focus on and lay out its financial position at this 

time, while providing summary performance data. A combined Annual Performance 

Report/Congressional Budget Justification, and a Citizen’s Report, will follow 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 16, 2015

MESSAGE FROM THE CHAIRWOMAN

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

whose mission is, “For the EAC to assist in the effective administration of Federal 

elections.” Following is the EAC’s Fiscal Year (FY) 2015 Agency Financial Report. The 

report describes the EAC’s accomplishments, financial results during the past fiscal year, 

and efforts to strengthen internal controls and financial management activities. 

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

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

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

Reporting Requirements to submit an Agency Financial Report and Annual Performance 

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

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

conjunction with the FY 2017 Congressional Budget Justification. 

From December 2011 through December 2014, the EAC operated without Presidential 

Appointees confirmed by the Senate to serve as Commissioners. In December 2014, the 

Senate confirmed three Presidential nominees to be EAC Commissioners, and on January 

13, 2015, they were formally appointed by the President and took the oath of office. The 

EAC now has a quorum of Commissioners for the first time since December 10, 2010. 

In the first nine months since appointment, the Commission has, among other things, reconvened its advisory boards; held four public meetings, a roundtable discussion, a 

symposium and a data summit; adopted several new management policies, approved a 

long-standing research report; and disseminated guidance to state and local election 

officials on use of Help America Vote Act (HAVA) funds. 

On their first day in office, the Commissioners found on their desks letters from the Cochairs of the Presidential Commission on Election Administration (PCEA) and the 

National Association of Election Directors (NASED) asking the Commission to take 

action on a number of items important to the election community. Those items included 

approving revisions to the decade-old Voluntary Voting System Guidelines (VVSG), 

updating the Testing & Certification Program Manual and the Voting System Test 

Laboratory Program Manual, certifying a Voting System Testing Laboratory (VSTL) 

that had been awaiting a Commission vote for three years, and providing for continuity of 

the HAVA-mandated Standards Board, Board of Advisors and Technical Guidelines 

Development Committee should the agency again find itself in a position where the 

Commission lacked a quorum or if all Commissioner positions become vacant. The 
Election Assistance Commission

Commission was asked to take action on these items within six months of taking office, 

but achieved them within three months by taking various actions at Public Meetings held 

in February and March 2015.

The new Commissioners immediately hired a transition team of seasoned election 

officials to analyze the Commission’s structure, staffing and mission. That team 

interviewed the Commissioners and every member of the Commission’s staff, reviewed 

work performance against the agency’s mandated mission, and provided 

recommendations for restructuring and appropriate focus to the Commissioners in a 

written report. The Commissions have already implemented a number of the 

recommendations of the transition team and are working on implementing others.

Because the Commissioners see the EAC as a service agency, they also embarked on a 

listening tour to determine the most effective approach for the EAC to achieve it’s 

mission of serving state and local election officials. To that end, the Commissioners have 

been meeting with members of the election community, including the EAC’s Standards 

Board and Board of Advisors members; state and local elections staff; national and 

international election associations; state legislator and lawyer associations; academics; 

computer scientists; electrical and electronics engineers; Federal Voting Assistance 

Program personnel; voting system manufacturers; and advocacy groups. These meetings 

have allowed the Commissioners to gather information for the purpose of developing and

setting appropriate goals to further the mandates of the agency and to allow it to provide 

valuable assistance to election officials.

In February 2015, the EAC, in conjunction with the National Institute of Standards and 

Technology (NIST), hosted, “The Future of Voting Systems Symposium II.” The 

discussion focused on the future of voting systems and explored emerging trends in 

voting. The Symposium, which included election officials, voting system manufacturers, 

voting system test laboratory representatives, standards developers, academics, and 

Federal, state and local government officials, provided interactive discussions among the 

attendees and served to inform the current state and future possibilities in voting 

equipment and technology and how we may continue to modernize the administration of 

election of our elections. 

In March, as part of it’s listening tour, the Commission convened a roundtable entitled, 

“Priorities, Policy, and Strategy: Next Steps for the EAC.” The agency vetted short-term 

goals, long-term strategies and priorities with its stakeholders. The roundtable explored 

election administration practices and issues faced by many of the institutions and 

constituencies who share the EAC’s mission of improving election administration in the 

United States.

In April, the Commission re-established the aforementioned HAVA-mandated EAC 

Standards Board and Board of Advisors. The Standards Board consists of 110 state and 

local elections administrators from each state and territory. The Board of Advisors has 37 

members representing voter interest groups. Both boards are critical to the standardssetting process and informing the Commission’s work and priorities.
Election Assistance Commission

In July, the EAC commemorated the 25th Anniversary of the Americans with Disabilities 

Act by holding a public meeting focusing on improving accessibility for voters with 

disabilities. HAVA, the agency’s authorizing legislation, mandates that individuals with 

disabilities must be provided the same opportunity to vote freely and independently. The 

Commission heard testimony from accessibility advocates, experts, and individuals with 

disabilities regarding the progress made since the passage of HAVA, and the work still to 

be done. The EAC’s highly successful Accessible Voting Technology Initiative (AVTI) 

competitive grant program resulted in over 45 technological and administrative solutions 

for assisting voters with disabilities. The initiative included the EAC’s Military Heroes 

grant aimed at providing the specific assistance needed for recently injured military 

personnel to participate in elections. 

Building on the February Symposium and recognizing that the nation’s elections systems 

must utilize rapidly advancing technology and innovations, in July, the EAC along with 

NIST convened a preliminary meeting of the Technical Guidelines Development 

Committee (TGDC). The group identified issues that will impact the development of a 

new set of national voting systems guidelines, discussed lessons learned from past efforts, 

and created a plan to implement public working groups that will meet over the next year 

to focus on specific subjects to be incorporated in a new VVSG.

The EAC held a first of its kind Election Data Summit at American University’s School 

of Presidential and Congressional Affairs in August. The Summit included over 40 

election officials and academics representing 20 states and numerous localities. 

Discussion centered on how participants collect, analyze, and use data to create 

efficiencies, re-allocate limited resources, inform decision-making, and ultimately to 

improve elections. Participants considered best practices and uses of election data, the 

value to election officials and academics of data in election management, and ways to 

improve the data collected through the EAC’s biennial Election Administration and 

Voting Survey (EAVS). 

In FY 2015, the Commission issued ten funding advisory opinions on payments and 

grants questions, adopted a policy expediting responses to routine use of payments and 

grant funds, and released the 2014 Election Administration and Voting Survey (EAVS)

Report. The report includes, A Summary of Key Findings, The Impact of the National 

Voter Registration Act (NVRA) of 1993 on the Administration of Elections for Federal 

Office 2013-2014, and a Survey of Findings of the Uniformed and Overseas Citizens 

Absentee Voting Act (UOCAVA). Additionally, the Commission adopted the study and 

the findings of the HAVA-mandated Urban Rural Study Report.

In addition to providing forums and adopting policies and reports, the EAC provides 

numerous resources to our nation’s approximately 11,000 jurisdictions that administer 

elections. These resources are available to election officials directly from the 

Commission and may also be viewed or downloaded through the EAC’s website, 

www.eac.gov. In FY 2015, in view of the concern over aging election infrastructure, the 

EAC began developing Managing Election Technology guides to help election officials 

of all skill levels better handle their information technology (IT) demands, help election 
Election Assistance Commission

officials identify their primary responsibilities as IT managers, and to provide ideas and 

best practices for achieving success in this role. The EAC has published the first two 

guides entitled, “Ten Things to Know About Selecting a Voting System,” and “Ten 

Things to Know About Managing Aging Voting Systems.” The Commission has also 

begun collecting and publishing contracts and Requests for Proposals (RFPs) for election 

technology to help election administrators inform their own purchasing needs. Dedicated 

EAC personnel are also readily available to assist election officials as they develop their 

own list of equipment requirements.

Another resource created and disseminated in FY 2015 was the EAC “Resource Bank”

toolkit. The toolkit is a growing repository in support of the EAC’s vision, “For the EAC 

to be a service agency and the go-to resource on election information, best practices, data, 

technology, technical advice and assistance for election administrators, officials, and 

voters across America.” The “Resource Bank” toolkit was designed specifically for 

election officials to help solve election-cycle challenges. Leading up to elections, election 

officials are faced with the enormous responsibility of informing voters about where, 

when and how to vote; training poll workers; and conducting fair, accessible, accurate 

and secure elections. The toolkit contains:

o thirteen new Quick Tips Guides designed to assist election officials with 

administering elections, on a wide range of topics, such as managing change, 

using election data, employing poll workers, administering provisional ballots, 

serving UOCAVA Voters, and educating voters,

o “14 Facts About Voting in Federal Elections” in seven languages, 

o hyperlinks on certain election administration best practice materials and, 

o a series of guides to help promote discussion around various election 

administration topics.

The agency’s organizational structure is aligned with the four program goals which are 

based on the mandates of the Help America Vote Act. Goal 1, Communicate, is 

administered by the Communications division. Goal 2, Fund & Oversee, is managed by 

the Payments and Grants Management division and the Office of the Inspector General. 

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

division. Goal 4, Test and Certify, is managed by the voting system Testing and

Certification division. The EAC also continued to make improvements in Goal 5, 

Operate. Goal 5 captures progress in performance, internal controls, and efficiencies.

Other FY 2015 EAC accomplishments in response to the goals included: 

Communications

• publicized four public meetings, a symposium, a roundtable, and a summit; the 

EAC’s educational materials; research products; and program activity updates;

• disseminated information via five press releases, 16 newsletters, 23 

announcements and Sunshine Act Notices, 34 blog posts, Facebook, Twitter 
Election Assistance Commission

account @EACgov, hashtag #EACvote, and 33 E-Alert automatic program 

updates on the EAC website;

• provided the information to election officials; Congressional staff; academics; 

national, state and local the media outlets; and other stakeholders.

Fund & Oversee

• disbursement of over $930,000 to three states certifying compliance with the 

provisions of HAVA;

• technical assistance on use of the $451.7 million reported by the states as 

available to fund the mandates of HAVA;

• close out of: 1) the Voting System Pre-Election Logic and Accuracy Testing & 

Post-Election Audit Initiative grants, 2) the Accessible Voting Technology 

Initiative grants, 3) three Office of the Inspector General audits of state use of 

HAVA funds, and 4) two audits conducted pursuant to the Office of Management 

and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit 

Organizations.

Study, Guide and Assist

• the 2014 Statutory Overview, a compilation of each state’s election laws and 

regulations;

• the 2014 EAVS data sets, and data visualizations of the 2014 mid-term elections;

• distribution of over 300 Quick Start toolkits at state election administrator 

association conferences during the summer and early fall of 2015.

Test and Certify

• certification of six voting systems; 

• continued development of state requirements mapping and implementation of

major updates to the EAC’s Virtual Review Tool (VRT); 

• audit of one voting system manufacturing facility; 

• collection and posting of closed state and local RFP documents for voting systems 

and electronic pollbooks on eac.gov;

• a Technology Testing Agreement meeting between the EAC, a Voting System 

Test Laboratory (VSTL), and a non-traditional voting system manufacturer; a 

VSTL Meeting; and a Voting System Manufacturers Meeting.

More detail on FY 2015 accomplishments can be found in Section I.B. of the following 

document. 

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

investigations of the agency. The vast majority of recommendations made in the internal 

audits have been implemented by the EAC. The financial and performance data in this 

report is reliable and complete, with no material internal control weaknesses. The 

Commission provides an unqualified statement of assurance that the agency’s internal 
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control and financial management systems meet the objectives of the Federal Managers’ 

Financial Integrity Act. 

The new Election Assistance Commission stands ready to assist our state and local 

election officials to help America vote.

Sincerely yours,

 

 Christy A. McCormick

 Chairwoman
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........................................................................................... 2

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

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

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

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

Program Performance Indicators............................................................................. 13

FY 2015 Performance Summary............................................................................. 13

Portfolio Analysis.................................................................................................... 13

 

I.C. Financial Results...................................................................................................... 14

Budgetary Resources ............................................................................................... 14

 Financial Position..................................................................................................... 14

 Results of Operations............................................................................................... 15

 Limitations of the Financial Statements .................................................................. 15

I.D. Analysis of Controls, Management Systems, and Legal Compliance..................... 15

 Internal Control Environment.................................................................................. 15

 Federal Manager’s Financial Integrity Act.............................................................. 16

 Entity-Wide Security Program................................................................................. 16

 Audit Follow-Up...................................................................................................... 16

 Federal Financial Management Improvement Act .................................................. 17

 Accountability of Tax Dollars Act of 2002 ............................................................. 17

 Federal Information Security Management Act ...................................................... 17

 Inspector General Act Amendments of 1988........................................................... 17

 Annual Assurance Statement on Internal Control ................................................... 18

 

SECTION II – Financial Section.................................................................................. 19

II.A. Message from the Chief Financial Officer.............................................................. 19

II.B. Inspector General’s Assessment.............................................................................. 20

II.C. Independent Auditor’s Report ................................................................................. 22

II.D. Financial Statements................................................................................................ 27

II.E. Notes to the Financial Statements............................................................................ 32

II.F. Required Supplementary Stewardship Information................................................. 44

SECTION III - Other Accompanying Information.................................................... 46

III.A. Most Serious Management Challenges Facing the EAC....................................... 46

III.B. The EAC’s Response to the Most Serious Management Challenges..................... 50

III.C. Improper Payments ................................................................................................ 51

III.D. Summary of Financial Statement Audit and Management Assurances................. 51
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SECTION I 

Management Discussion and Analysis

The 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; and actions taken or planned to address issues. It provides a balanced analytical 

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

The MD&A is a vehicle for communicating insights about the agency, its operations, programs, 

successes, challenges and future outlook. Contents of this report and the MD&A are in conformance 

with Office of Management and Budget (OMB) Circular A-136, Financial Reporting Requirements. 

I.A. BACKGROUND, VISION, MISSION AND ORGANIZATIONAL 

STRUCTURE

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

recognized the need for states to invest in their election infrastructure. The Act set out 

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

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

Assistance Commission (EAC). The vision is: For the EAC to be a service agency and the go-to 

resource on election information, best practices, data, technology, technical advice and assistance 

for election administrators, officials, and voters across America. The mission is: For the EAC to 

assist in the effective administration of Federal elections.

The EAC is an independent, bipartisan agency. By statute, four full-time Commissioners, appointed 

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

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

the EAC. Currently, there are three Commissioners. The EAC is statutorily charged with:

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

• accrediting voting system testing laboratories and certifying voting systems, 

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

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

tools and best practices,

• maintaining the national mail voter registration form, developed in accordance with the 

National Voter Registration Act (NVRA) of 1993, 

• promoting accessibility for voters with disabilities,

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

• auditing the use of HAVA funds.

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

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

established the Technical Guidelines Development Committee (TGDC) to assist the EAC in the 

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

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

included $33.8 million for NIST support. 

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

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

upgrade their voting systems, establish statewide voter registration databases, train election officials, 

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

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

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

activities to improve the administration of elections (HAVA Section 101) and to replace punch card 

and lever voting machines (Section 102). 

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

January 2004. The Agency’s Fiscal Year 2004 operating budget was $1.7 million. At the close of the 

fiscal year, the EAC had a staff of 18. The EAC’s focus in 2004 was to assemble staff, obtain office 

space, arrange for administrative support from the GSA, establish a website, start election 

administration clearinghouse operations, and distribute Federal financial assistance to the states.

In FY 2004, the EAC also appointed a statutorily-required General Counsel. During Fiscal Year 

2005, the EAC appointed its other statutorily-required positions: the Executive Director, and an 

interim Inspector General. The 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 2015, the EAC had 21 full-time and six parttime staff. Since its inception, EAC has received $2,606,150,000 in requirements payments; and 

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

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

Accuracy Testing and Post-Election Verification. The EAC also tracks and provides technical 

assistance on the $67.7 million of Section 101 funds reported by the states as available. The time 

period for using the Section 102 funds expired, and the EAC collected all unused funds by the end of 

FY 2014.

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

currently one Commissioner vacancy. 

Organization by Program

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

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

descriptions is the EAC’s organization chart. 
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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:

• the EAC Website and Clearinghouse,

• social media,

• media inquiries,

• external communications,

• Congressional relations,

• the Freedom of Information Act,

• editorial support including press releases, speeches, and Congressional testimony.

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

thousands of documents and information about voting systems, informational videos, research, data,

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

public meetings, hearings, summit, and roundtables. 

The EAC’s website features a user-driven notification system, allowing visitors to customize how 

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

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

other agency news. 

Payments and Grants Management

The Payments and Grants Management Division:

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

• processes and disburses payments to the states and discretionary grant recipients,

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

submitted by states and discretionary grant recipients,

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

findings applicable to the EAC’s programs,

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

• drafts advisory opinions for Commission approval and issuance. 

Research, Policy and Programs

The Research, Policy and Programs Division: 

• administers the biennial Election Administration and Voting Survey (EAVS) to 55 states, the 

District of Columbia, and territories. The survey produces data and reports mandated by 

HAVA. Topics include the impact of the National Voter Registration Act of 1993, and on the 

Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA) for military and 

overseas voters’ participation in Federal elections. EAVS is the only comprehensive 

collection and report of data on elections in the United States,
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• conducts research on election administration topics as mandated by Congress and at the 

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

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

the feasibility of alternative voting methods; and the voting experiences of first-time voters 

who register to vote by mail,

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

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

• administers the Election Management Guidelines Program to assist state and local election 

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

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

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

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

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

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

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

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

than English, and

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

participation in Federal elections. 

Voting System Testing and Certification

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

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

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

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

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

Standards and Technology (NIST) to evaluate and accredit voting system test laboratories, and on

management of the voting system certification process. 

The Testing and Certification (T&C) Division:

• assists states with voluntary certification of their systems,

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

acceptance testing, and pre-election system verification for EAC-certified systems, issuance 

of Requests for Proposal, and information on how to maintain aging voting technology,

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

EAC Quality Monitoring Program, including periodic lab and manufacturing facility audits 

of EAC-registered entities,

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

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

Section 231(a)(1),

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

systems in use in the field,

• along with its advisories boards, the EAC and NIST work together to update and implement 

voluntary testing guidelines for voting systems. 
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Inspector General Commissioners

Executive Director

General Counsel Chief Financial Officer/

Budget Officer

Chief Operating 

Officer

Communications & 

Clearinghouse

Advisory Board (37 members)

Standards Board (110 members) 

and Technical Guidelines 

Development Committee (15 

members).

Statutory, non-monetary positions

Payments 

and Grants 

Management

Accounting

Procurement

Voting System 

Testing and 

Certification

Research, Policy 

& Programs

Information 

Technology 

Human 

Resources

Administrative 

Services

ELECTION ASSISTANCE COMMISSION 

ORGANIZATION CHART
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I.B. PERFORMANCE GOALS, OBJECTIVES, AND RESULTS

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

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

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

adopted the Plan in March 2009. A new five-year plan is being developed.

How the EAC Assesses Performance

The 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 the 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 accessibility, security, and functionality,

5. implement a high-performance organization. 

The EAC objectives listed below describe in general terms the results needed to accomplish its 

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 and

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. The anticipated outcome of the goals is to provide Congress, Federal agencies, state and local 

election officials, and the public with reliable, accurate, and non-partisan information about the 

administration of Federal elections. 

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

Communications and Clearinghouse Division. 

Goal 1 FY 2015 Accomplishments

The Communications and Clearinghouse Division began Fiscal Year 2015 with a focused effort on 

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

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

money in preparation for the 2016 Federal election cycle. Division staff notified stakeholders, 

media, and Congress that EAC has new commissioners and that a quorum has been restored to 

conduct new policy business.
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Website eac.gov 

In FY 2015, division staff maintained: Events finder: a comprehensive presentation of all EAC 

public events, including meetings, hearings and roundtable discussions; the Accessible Voting 

Resources page; a listserv for EAC’s newsletter and automatic program updates; and links to state 

and local election social media sites as they were received. Staff awarded a new website contract, 

and met with the website contractor’s project manager and the EAC’s program staff, sought 

feedback from advisory boards and stakeholders about changes needed before launch of the new 

website, and worked on implementing a new website security project.

Stakeholder Updates

The division publicized four public meetings, a symposium, a roundtable, and a summit; the EAC’s 

educational materials; research products; and program activity updates. Dissemination of 

information occurred via five press releases, 16 newsletters, 23 announcements and Sunshine Act 

Notices, 34 blog posts, Facebook, Twitter account @EACgov, hashtag #EACvote, and 33 E-Alert

automatic program updates on the EAC website. The information went to election officials; 

Congressional staff; academics; national, state and local the media outlets; and other stakeholders.

The public meetings, roundtable, and summit were webcast live and featured a live Twitterfall. The 

corresponding meeting agendas, webcasts, reports, and transcripts, as applicable, are posted to the 

website.

Program updates included voting system certification; HAVA grants and payments funding charts 

and statistics, final grant reports, the EAVS 2014 report and data sets, and other EAC activities and 

election information.

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

resources; Voting System Testing Updates; Aging Voting Technology; EAC-NIST Public Working 

Groups for New Voting System Guidelines; Election Data Summit; Commissioner Notes from the 

Road; Top Ten Priorities of EAC Stakeholders; Listening Feedback; Future of Voting Systems 

Symposium; State/Local Voting Systems Search Map; Quick Start Guides & Tips for Election 

Officials; and ongoing blog posts covering election related topics to answer frequently asked 

questions and provide critical or time sensitive information to stakeholders and the media. 

Facebook “Likes” increased 628.6 percent since this time last year. From October 2014 through 

September 2015, and the number of the EAC’s Twitter followers grew from 1,968 to 2,469.
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Note: screen shot as of October 15, 2015

Federal Advisory Committee Act (FACA)

• managed the successful completion of the Congressionally-mandated Annual Comprehensive 

Review (ACR) report to Congress for Fiscal Year 2014,

• published Sunshine Act Notices in the Federal Register for the Federal Advisory Committee 

Meetings,

• EAC Committee Management Officer (CMO) staff worked with the EAC’s compliance desk 

officer at the GSA’s Committee Management Secretariat (CMS) to reactivate the EAC’s three 

advisory Federal Advisory Committee Act (FACA) boards. The process includes: selection of 

the EAC’s Designated Federal Officers (DFOs); charters and Federal Register Notices; 

notification of charter filings to the U.S. Senate Rules Committee, the Committee on House 

Administration, and the Library of Congress; posting the charters and TGDC nominations 

announcement on eac.gov, and updating the EAC’s section on the GSA’s FACA website with 

the new charters and documentation.

Freedom of Information Act (FOIA)

• completed thirteen FOIA requests for the EAC,

• responded to two FOIA requests received by other agencies involving communications between 

their employees and EAC staff. 
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Other

• delivered the EAVS report to Congress and issued a news release.

• submitted Federal Register Notices for publication of two concurring 30-Day Public Comment 

Periods for: 1) the EAC Voting System Testing and Certification Program Manual, Version 2.0, 

and 2) the EAC Voting System Test Laboratory Program Manual, Version 2.0. 

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

outcome of the goal is for the states and other recipients to promptly and accurately receive 

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

administration of elections for Federal office in accordance with HAVA. 

Goal 2 is administered by the Payments and Grants Management Division and the Office of the 

Inspector General. 

Goal 2 FY 2015 Accomplishments

In FY 2015, the Payments and Grants Management division disbursed $930,066 to three states 

certifying compliance with the provisions of HAVA. The division provided technical assistance to 

and monitored grant and payment recipients who are responsible for establishing and maintaining 

internal controls that will reasonably ensure compliance with Federal laws, regulations, the 

provisions of HAVA, and payments and grant agreements. Staff conducted three technical assistance 

and audit-related visits during the year.

The Payments and Grants Management division reviewed final grant financial and narrative reports. 

The division closed the Voting System Pre-Election Logic and Accuracy Testing & Post-Election 

Audit Initiative grants, and the Accessible Voting Technology Initiative grants. Further, staff closed 

three Office of the Inspector General audits of state use of HAVA funds, and two OMB Circular A133 single audit reports that presented findings on HAVA funds use in FY 2015.

Strategic Plan Goal 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. The anticipated outcomes for this 

goal are: 1) that the elections community and other key stakeholders may improve the administration 

of elections for Federal office based on having pertinent, impartial, high-quality information, 

recommendations, guides, and other tools on election and voting issues, and 2) that the national mail 

voter registration form is available to citizens 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 2015 Accomplishments

Research:

• administered the 2014 Election Administration and Voting Survey (EAVS), 

• delivered, “The 2014 EAC Election Administration and Voting Survey Comprehensive 

Report” to Congress on June 30, 2015. The report includes a Summary of Key Findings, a 
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• Report on the Impact of the National Voter Registration Act (NVRA) of 1993 on the 

Administration of Elections for Federal Office, and a Survey of Findings of the Uniformed 

and Overseas Citizens Absentee Voting Act (UOCAVA),

• made available via the EAC’s website (www.eac.gov) the 2014 EAVS data sets, the 2014 

Statutory Overview (a compilation of each state’s election laws and regulations), and data 

visualizations of the 2014 mid-term elections, e.g.:

• responded to ongoing inquiries from a variety of stakeholder groups regarding the 2014 

EAVS data,

• in March 2015, the EAC Commissioners formally adopted a study and the findings required 

by the HAVA 241(b)(15) on administering elections in rural and urban areas,

• in August 2015, convened a national Election Data Summit at American University’s School 

of Presidential and Congressional Affairs. The event included a broad range of election 

officials and academics from throughout the United States. Participants considered best 

practices and uses of election data, the value to election officials and academics of data in 

election management, and ways to improve the data collected through the EAVS,

• began planning and collaborating with U.S. Department of Defense Federal Voting 

Assistance Program (FVAP) on administrating the 2016 EAVS.

Policy:

• responded to ongoing inquiries from states regarding the interpretation of various NVRA 

requirements,

• received and implemented a request from one state to make certain changes to its NVRA 

state instructions.
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Programs:

• created an EAC Resource Bank toolkit containing 13 new Quick Tip Guides designed to 

assist election officials with administering elections. The toolkit provides information on a 

wide range of topics, such as managing change, using election data, employing poll workers, 

administering provisional ballots, serving UOCAVA Voters, and educating voters. The 

toolkit also includes Facts on Voting in Federal Elections in seven languages, hyperlinks to

certain election administration best practice materials, and a series of guides to help promote 

discussion around various election administration topics,

• distributed over 300 Quick Start toolkits at state election administrator association 

conferences held over the summer and early fall of 2015,

• began developing two new Quick Tip Guides related to serving voters with disabilities.

• began a process for updating the Successful Practices for Poll Worker Recruitment, Training 

and Retention Guidebook. The new guidebook is planned for release for use in the 2016 

Federal election cycle,

• began a process for updating the EAC’s six foreign language glossaries of election terms.

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

systems to improve system accessibility, security, and functionality. The anticipated outcome of 

the goal is voting equipment that operates more reliably and securely, and is more accessible to 

individuals with disabilities. States voluntarily participate in the EAC testing and certification 

program to help ensure that their voting systems meet the Voluntary Voting System Guidelines

(VVSG) standards, and voting system manufacturer specifications. 

Goal 4 is administered by the Voting System Testing and Certification division. 

Goal 4 FY 2015 Accomplishments 

In FY 2015 in the area of voting system testing and certification, the EAC:

• certified six voting systems,

• managed testing campaigns for three additional systems (testing was not completed as of the 

date of this report),

• drafted and published three Requests for Interpretation (RFIs) to the Voluntary Voting 

System Guidelines (VVSG), and drafted two additional RFI’s,

• completed editorial changes and presented for Commission vote (and ultimate adoption), 

Version 2.0 of both the Testing & Certification Program Manual, and the Voting System Test 

laboratory Program Manual,

• completed editorial changes and presented for Commissioner vote (and ultimate adoption), 

Version 1.1 of the EAC Voluntary Voting System Guidelines,

• continued development of state requirements-mapping, and implemented major updates to 

the EAC’s Virtual Review Tool,

• audited one voting system manufacturing facility,

• developed a new series of guidance documents entitled Managing Election Technology, and 

published the first two documents in this series,

• assisted state and local election officials by collecting, and posting on the EAC web site,

closed state and local Request for Procurement documents for both voting systems and 

electronic pollbooks,
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• held an in-person Technology Testing Agreement meeting between EAC, a Voting System 

Test Laboratory (VSTL) and a non-traditional voting system manufacturer,

• worked with NIST staff on the re-organization of the EAC Technical Guidelines 

Development Committee (TGDC), 

• held an EAC VSTL Meeting and a Voting System Manufacturers Meeting. 

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

outcome of the goal is that the EAC Commissioners and staff proficiently and efficiently carry out 

the EAC’s strategic objectives. The objectives of Goal 5 are to improve performance, strengthen 

internal controls, and maximize efficiencies. 

The measure to obtain an unmodified audit opinion on agency financial statements was achieved in 

FY 2015. On the performance measure on implementing audit recommendations, to date, only two 

percent of the 82 operational recommendations remain open. On the metric regarding meeting 

annual performance measures, management works to foster a culture of accountability among staff. 

The agency seeks to improve staff satisfaction ratings and achieve management excellence through 

continuous improvement of internal controls. Agency directors responsible for implementation of 

the EAC Strategic Plan goals report on their division metrics for: 1) the Agency Financial Report

each November, 2) the Annual Performance Report, along with the Congressional Budget 

Justification, usually in February each year, and 3) actual planned metrics in the OMB Budget 

Justification each September. 

The EAC continues 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 efficient use of staff and financial resources, and training the EAC’s staff 

on financial management processes and their specific, individual responsibilities. Staff completes 

assessable unit risk assessment questionnaires and individual letters of assurance. The risk 

assessments and letters are reviewed by the Chief Operating Officer and Acting Executive Director, 

and the Chief Financial Officer, and rolled into the agency’s Annual Statement of Assurance

presented in this report.

In FY 2015, the EAC provided financial management tools and support to staff. All staff was 

offered Appropriations Law training on-site. Agency staff is able to utilize four automated systems 

(procurement, travel, purchase card, and time and attendance) via interagency agreements.

Contracting Officer’s Representatives (CORs) were provided accrual training. CORs have access to 

free online training on invoice approval via the procurement service provider agency. 

To improve effectiveness and efficiency, the EAC transferred financial, procurement and travel 

services to the U.S. Department of Treasury. Treasury is one of the four agencies chosen for the 

effort to eliminate Federal duplication and enable agencies to direct more resources from 

administrative expenses to programs. The EAC moved to smaller, open office space (17,548 square 

feet in FY 2013 to 6,000 square feet in FY 2014), and stores most records electronically or 

inexpensively at the National Archives and Records Administration Federal Records Center to 

comply with federal guidelines and to save taxpayers’ money. EAC continued its commitment made 

in October 2010 to reduce staff, and has reassigned functions internally and uses the services of 

other agencies to obtain efficiencies of scale.
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The agency is set up to participate in telecommuting, which provides the added benefit of equipping 

the EAC with the ability to deal with any continuity of operations disruptions. Staff are provided

with a secure “virtual office” of email data. Personal and shared computer drive files and folders are

accessible remotely.

Program Performance Indicators

The following table presents key EAC FY 2015 program performance data. As much detailed

performance information as possible will be presented, and variances discussed, in the FY 2015 

Annual Performance Report. The performance report will accompany the FY 2017 Congressional 

Justification.

FY 2015 Performance Summary

Program Performance Indicator

Type of 

Indicator Planned Actual

Strategic Goal 1: Communicate

Regularly issue information on EAC activities Output Quarterly press 

releases

5 press releases, 34

blog posts

Produce the annual report of EAC activities to 

Congress by January 31 of each year for the 

preceding year ending September 30

Output 1/31/15 2/3/15

Strategic Goal 2: Fund and Oversee

Resolve 100 percent of audit findings within 

established time frames

Output 100% 100%

Negotiate indirect cost rates within 30 days of 

receipt of acceptable indirect cost proposals

Output 100% Submit requests for rate 

negotiation to HHS 

upon receipt for 

services via interagency 

agreement

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

Conduct at least one review of a manufacturing 

facility of a registered manufacturer at least

once every 4 years

Output 1 1

Plan to conduct field reviews for at least 50 

percent of jurisdictions that volunteer for 

reviews

Output 50% N/A (no requests made 

in FY 2015)

Portfolio Analysis

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

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

Collection Grants of $2 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 2015, the 
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EAC received appropriations in the Salaries and Expenses appropriation of $10 million. The 

appropriation was used for a $1.9 million transfer to NIST, payroll, travel, rent, telecommunications, 

printing, contracts, supplies, subscriptions, and equipment. 

I.C. FINANCIAL RESULTS

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

and condition as portrayed in the financial statements and the notes to the statements. Changes in 

assets, liabilities, costs, revenues, obligations, and outlays are explained; comparisons are made 

between amounts in FY 2015 to FY 2014; and the relevance of balances and amounts in the 

financial statements and notes are discussed. The changes provide context as to how the year’s 

activities impacted the agency’s financial position. 

Budgetary Resources 

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

The majority of the EAC’s available budgetary resources are in the no year Election Reform 

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

Expenses appropriations, unpaid obligations, recoveries, offsetting collections, and unobligated 

balances. 

For FY 2015, the available budgetary resources were $21.0 million, up from $19.9 million in FY 

2014. In FY 2015, EAC’s appropriations totaled $10 million for Salaries and Expenses, including a 

$1.9 million non-expenditure transfer to NIST. 

Obligations Incurred decreased from $6.5 million in FY 2014 to $6.3 million in FY 2015. The 

decrease was due primarily to the disbursement of FYs 2009 to 2011 Requirements Payments. The 

Unobligated Balance – Apportioned increased from $4.2 million in FY 2014 to $5.1 million in FY 

2015. 

Financial Position

Assets

EAC had $22.8 million in total assets (Fund Balance with Treasury; Accounts Receivable; Property, 

Equipment, and Software; and Other Assets) as of September 30, 2015, down from $25.9 million in 

FY 2014. The decrease is largely the result of disbursement of collection of an improper 

Requirements Payment of $2.3 million. 

Liabilities

EAC had total liabilities (Accounts Payable, accrued salaries and benefits, and unfunded leave) of 

$3.5 million as of September 30, 2014 and $765,867 as of September 30, 2015. 
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Net Position

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

2015 to $22.0 million from $22.3 million in FY 2014. Unexpended Appropriations decreased 

primarily due to disbursement of Requirements Payments. 

Results of Operations

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

programs: Communications and Clearinghouse; Fund and Oversee (Grants Management and the 

Office of the Inspector General; Study, Guide and Assist (Research, Policy, and Programs); and 

Testing and Certification. Costs specifically identified with each of the programs, such as direct

personnel costs and specific program contract expenses, are allocated to the programs directly. The 

Fund and Oversee program reports the expenditures for the Requirements Payments and the EAC’s

grants. Other general agency overhead costs, such as rent, information technology, and financial 

management, are allocated on a per employee basis. The methodology is outlined in EAC’s Cost 

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

accurate allocation of expenses to each program. 

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

Programs appropriations) for the EAC was $7.7 million for Fiscal Year 2015, down from $7.9

million in FY 2014. 

Limitations of the Financial Statements

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

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

been prepared from the books and records of the EAC in accordance with Generally Accepted 

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

Management and Budget. The statements are in addition to the financial reports that are used to 

monitor and control budgetary resources, which are prepared from the same books and records. 

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

Government, a sovereign entity. 

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

COMPLIANCE

Internal Control Environment

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

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

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

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

delivery of services to customers, and maximizes desired program outcomes. 
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The EAC has developed and implemented management, administrative and financial system 

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

efficiently and effectively, 2) resources are used in accordance with the mission of the agency, 3) 

programs and resources are protected from waste, fraud and abuse, 4) program and operations 

activities are in compliance with laws and regulations, and 5) reliable, complete and timely data are 

maintained and used for decision-making. 

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

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

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

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

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

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

follows:

Federal Manager’s Financial Integrity Act

 

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

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

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

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

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

Section 4) that protect the integrity of Federal programs. 

Entity-Wide Security Program 

The Office of the Chief Information Officer (OCIO) explores innovations to update and improve 

network services for security, availability, efficiency, and productivity. For example, the EAC is 

working with the General Services Administration (GSA) to leverage the GSA’s private cloud 

computing strategy to host the EAC continuity of operations plan (COOP) site. 

The EAC operates its own infrastructure, using the GSA’s network backbone for its infrastructure

for security purposes. The EAC IT staff of two maintains personal computers, smart phones, and 

servers; provides software requested by the EAC staff, remote access services, Voice Over Internet 

Protocol and Interactive Voice Response telecommunications tools; and performs vulnerability 

scans (in addition to the GSA’s backbone infrastructure scans). IT staff remediates and updates 

security patches so that staff are equipped to perform work both on- and off-site in a secure 

environment. The EAC is in the process of establishing an intranet where policies and procedures 

can be posted in place of use of a shared drive to improve usability and communications. 

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

Information Security Management Act (FISMA) compliance on the EAC’s behalf. EAC’s cyber 

security management needs are covered by GSA through an annual Memorandum of Understanding 

for IT services and equipment at approximately $88,500 for FY 2017. The agreement funds the tools 

that enable GSA to continuously monitor the EAC's IT systems security as described in OMB M-10-

15, FY 2010 Reporting Instructions for the FISMA and Agency Privacy Management, dated April 

21, 2010. In FY 2015, EAC received a clean opinion on its FISMA audit.
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Audit Follow-Up

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

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

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

September 30, 2015, the EAC has two open operational recommendations to consider. The EAC 

made improvements in all Agency management challenges. The EAC also considers and responds to 

recommendations from audits and reviews conducted by the Government Accountability Office. 

Federal Financial Management Improvement Act

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

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

the Federal Financial Management Improvement Act. 

Accountability of Tax Dollars Act of 2002 

 

The Fiscal Year 2015 financial statement audit report identified no material weaknesses in internal 

control over financial reporting.

Federal Information Security Management Act

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

FY 2015. 

 

Inspector General Act Amendments of 1988

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

payments and grants, and transmits to the EAC OMB Circular A-133 single audit reports that 

present findings on HAVA funds. The principal recipients of HAVA payments and grant funds are 

state governments. 
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Annual Assurance Statement on Internal Control

November 16, 2015

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, providing reasonable assurance that the following 

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

reporting, and compliance with applicable laws and regulations.

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

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

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

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

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

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

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

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

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

offices (accounting, budget, payments and grants, and procurement), and administrative offices. 

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

evaluation conducted by its independent auditors and the Inspector General.

In FY 2015, EAC resolved one material weakness in the effectiveness of its internal control over 

operations: a $2.2 million improper payment made in FY 2014 using canceled FY 2008 funds. The 

EAC submitted the required letter to report the Anti-Deficiency Act violation. The EAC and its

financial services provider implemented all recommended internal control improvements, and 

collected the funds. The auditors found no material weaknesses or significant deficiencies in internal 

controls over financial management reporting. Further, the auditors found no instances of 

noncompliance with laws and regulations

The Commission provides an unmodified statement of assurance that the internal control and 

financial management systems meet the objectives of the Federal Managers’ Financial Integrity 

Act.

 

 Christy A. McCormick

 Chairwoman
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SECTION II

Financial Section

II.A. MESSAGE FROM THE CHIEF FINANCIAL OFFICER

The EAC’s financial statements for FY 2015 are an integral component of the Agency Financial 

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

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

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

performance data in this report, and plans on providing detailed data in conjunction with the Fiscal 

Year (FY) 2017 Congressional Justification and FY 2015 Annual Performance Report. 

 For FY 2015, the EAC received an unmodified audited financial statement opinion, with no material 

weaknesses. In FY 2015, the agency addressed all financial audit findings and recommendations,

improving internal controls. Staff was provided training related to accruals and Appropriations Law. 

All material weakness remediation work related to an FY 2013 improper payment was completed by 

September 30, 2015.

In FY 2015, the agency implemented all recommendations related to the Acquisition and 

Procurement of Goods and Services audit covering Fiscal Years 2009 through 2012. Work with 

EAC’s procurement services provider began on providing onsite supplemental, tailored Contracting 

Officer’s Representatives training for staff. After one year of Internet Payment Platform audits, 

EAC’s financial service provider reported that, “We have been performing monthly post payment 

audits for a year now and the results are impressive! The system controls are working and your 

CORs are diligently reviewing their invoices.”

Further EAC completed a successful Internal Revenue Service compliance review related to payroll 

deductions in February 2015.

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

Annette Lafferty

November 16, 2015
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II.B. INSPECTOR GENERAL’S ASSESSMENT

U.S. ELECTION ASSISTANCECOMMISSION

OFFICE OF INSPECTOR GENERAL

1335 East West Highway - Suite 4300 

Silver Spring, MD 20910

November 12, 2015

Memorandum

To: Ms. Alice Miller

Acting Executive Director

From: Roger La Rouche

Deputy Inspector General, U.S. Election Assistance Commission

Subject: Audit Report of the U.S. Election Assistance Commission’s Financial 

 Statements for Fiscal Years 2015 and 2014 (Assignment No. I-PA-EAC-01-

 15)

Introduction

The Chief Financial Officer’s (CFO) Act of 1990 (P.L. 101-576) as amended, requires the 

Inspector General for the U. S. Election Assistance Commission (EAC) or an independent 

external auditor, as determined by the Inspector General, to audit EAC’s financial statements. 

The independent public accounting firm of Brown & Company CPAs, PLLC (Brown & Company) 

performed the audit of the EAC’s financial statements as of September 30, 2015 and for the year 

then ended. The audit was performed by Brown & Company under a contract that was 

monitored by the Office of Inspector General (OIG). The contract required that the audit be 

performed in accordance with Government Auditing Standards issued by the Comptroller 

General of the United States; Office of Management and Budget (OMB) Bulletin 14-02, Audit 

Requirements for Federal Financial Statements; and the Financial Audit Manual of the 

Government Accountability Office/President’s Council on Integrity and Efficiency.

Results of Audit

In Brown & Company’s opinion, the financial statements present fairly, in all material respects, 

the financial position of EAC as of September 30, 2015, and its net costs, changes in net position, 

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

accounting principles generally accepted in the United States ofAmerica.

In its response to the draft audit report, EAC agreed with the facts stated in the report and the 

audit results.
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Evaluation of Brown & Company’s Audit Performance

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

management requirements, the OIG:

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

• Evaluated the qualification and independence of the auditors;

• Monitored the progress of the audit at key points;

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

and recommendations;

• Reviewed Brown & Company’s audit report;

• Performed other procedures we deemed necessary; and

• Coordinated issuance of the audit report.

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

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

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

Report Distribution

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

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

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

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

available for public inspection.

The OIG appreciates the courtesies and cooperation EAC extended to Brown & Company and the 

OIG during the audit. If you, or your staff, have any questions, please contact me at (301) 734-

3106.

Attachment
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II.C. INDEPENDENT AUDITOR’S REPORT

 BROWN & COMPANY

CERTIFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS, PLLC

INDEPENDENT AUDITOR'S REPORT

U.S. Election Assistance Commission 

Silver Spring. MD

Report on the Financial Statements

We have audited the accompanying balance sheet of the U.S. Election Assistance Commission (EAC) as of 

September 30, 2015 and 2014. and the related statements of net cost, changes in net position, budgetary 

resources, and custodial activity for the year then ended (collectively referred to as the financial statements). 

and the related notes to the financial statements.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance 

with U.S. generally accepted accounting principles; this includes the design, implementation. and maintenance 

of internal control relevant to the preparation and fair presentation of financial statements that are free from 

material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our 

audit in accordance with U.S. generally accepted government auditing standards and the standards applicable to 

financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United 

States: and the Office of Management and Budget (OMB) Bulletin No. 15-02, Audit Requirements for Federal 

Financial Statements. Those standards and OMB Bulletin No. 15-02, require that we plan and perform the audit 

to obtain reasonable assurance about whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the 

financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the 

risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk 

assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the 

financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the 

purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no 

such opinion. An audit includes test of compliance with provisions of applicable laws, regulations, contracts, 

and grant agreements that have a direct effect on the determination of material amounts and disclosure in the 

financial statements. The purpose was not to provide an opinion on compliance with provisions of applicable 

laws, regulations, contracts and grant agreements and, therefore, we do not express such opinion. An audit also 

includes evaluating the appropriateness of accounting policies used and the reasonableness of significant 

accounting estimates made by management. as well as evaluating the overall presentation of the financial 

statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 

audit opinion.

__________________________________________________________________________ 1101 MERCANTILE LANE, SUITE 122 • LARGO, MD 20774

PHONE: (240) 770-4900 • FAX: (301) 773-2090 • mail@brownco-cpas.com • www.brownco-cpas.com
Election Assistance Commission

23

Opinion on the Financial Statements

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

position of EAC as of September 30, 2015 and 2014, and its net costs, changes in net position, budgetary 

resources, and custodial activity for the years then ended, in accordance with U.S. generally accepted 

accounting principles.

Other Matters

Required Supplementary Information

U.S. generally accepted accounting principles require that the information in the Management's Discussion 

and Analysis (MD&A) and Required Supplementary Information (RSI) sections be presented to supplement 

the basic financial statements. Such information, although not a part of the basic financial statements, is 

required by the Federal Accounting Standards Advisory Board, who considers it to be an essential part of 

financial reporting for placing the basic financial statements in an appropriate operational, economic, or 

historical context. We have applied certain limited procedures to the required supplementary information 

in accordance with U.S. generally accepted government auditing standards, which consisted of inquiries of 

management about the methods of preparing the information and comparing the information for consistency 

with management's responses to our inquiries, the basic financial statements, and other knowledge we 

obtained during our audit of the basic financial statements. We do not express an opinion or provide any 

assurance on the information because the limited procedures do not provide us with sufficient evidence to 

express an opinion or provide any assurance.

Other Information

Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. 

The Message From The Chairwoman, Message From The CFO and the Other Information sections are 

presented for purposes of additional analysis and are not a required part of the financial statements. Such 

information has not been subjected to the auditing procedures applied in the audits of the financial 

statements, and accordingly, we do not express an opinion or provide any assurance on it.

Report on Internal Control Over Financial Reporting

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

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

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

of providing an opinion on internal control. Accordingly, we do not express such an opinion.

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

or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, 

misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in 

internal control, such that there is a reasonable possibility that a material misstatement of the entity's 

financial statements will not be prevented or detected and corrected on a timely basis. A significant 

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

material weakness, yet important enough to merit attention by those charged with governance.

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

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

significant deficiencies or material weaknesses. During the audit of the financial statements, no deficiencies 

in internal control were identified that were considered to be material weaknesses. However, material 

weaknesses may exist that have not been identified.

BROWN & COMPANY ________________________ CERTIFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS, PLLC ___________________________
Election Assistance Commission

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Report on Compliance and Other Matters

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

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

contracts and grant agreements, noncompliance with which could have a direct and material effect on the 

determination of financial statement amounts. We limited our tests of compliance to the provisions 

described in the preceding sentence, and we did not test compliance with all laws, regulations and contracts 

applicable to EAC. The objective was not to provide an opinion on compliance with provisions of laws, 

regulations, contracts and grant agreements and therefore, we do not express such an opinion. The results 

of our tests disclosed no instance of noncompliance or other matter that is required to be reported under 

Government Auditing Standards or OMB Bulletin No. 15-02.

Management's Responsibility for Internal Control and Compliance

EAC's management is responsible for (1) evaluating effectiveness of internal control over financial 

reporting based on criteria established under the Federal Managers Financial Integrity Act (FMFIA), (2) 

providing a statement of assurance on the overall effectiveness of internal control over financial reporting, 

and (3) ensuring compliance with other applicable laws and regulations.

Auditor's Responsibilities

We are responsible for (1) obtaining a sufficient understanding of internal control over financial reporting 

to plan the audit, (2) testing compliance with certain provisions of laws and regulations that have a direct 

and material effect on the financial statements and applicable laws for which OMB Bulletin 15-02 requires 

testing, and (3) applying certain limited procedures with respect to the MD&A and other RSI.

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

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

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

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

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

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

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

not be sufficient for other purposes.

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

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

financial statements and those required by OMB Bulletin 15-02 that we deemed applicable to EAC's 

financial statements for the fiscal year ended September 30, 2015. We caution that noncompliance with 

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

for other purposes.

Status of Prior Year's Control Deficiencies and Noncompliance Issues

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

prior year's Independent Auditors' Report, dated November 3, 2014. The status of prior year is presented 

in Section I.

 BROWN & COMPANY

________________________CERTIFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS, PLLC__________________________
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Purpose of the Report on Internal Control over Financial Reporting and the Report on Compliance 

and Other Matters

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

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

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

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

with Government Auditing Standards in considering EAC's internal control and compliance. Accordingly, 

these reports are not suitable for any other purpose.

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

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

Largo, Maryland

November 12, 2015

BROWN & COMPANY

______________________CERTIFIED PUBLIC ACCOUNTANTS AND MANAGEMENT CONSULTANTS, P LLC___________________________
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SECTION I Status of Prior Year Recommendations

Finding

No. Finding FY 2013 Recommendation Status

1 Significant Uncertainties 1. Fully document all interim decisions Closed.

Relating to Transactions made concerning the accrual and

Recorded in a FY 2008 subsequent disbursement of the

Appropriation and Reported in approximately $2.2 million payment

the 2013 Financial Statements made to one grantee from 2008 

appropriations. Based upon an 

assessment of this documentation, 

strengthen internal control processes at 

EAC and, as appropriate, request 

internal controls at the service 

provider be further strengthened in 

this area.

 BROWN & COMPANY

________________________CERTIFIED PUBUC ACCOUNTANTS AND MANAGEMENT CONSULTANTS, PLLC__________________________
II.D. FINANCIAL STATEMENTS

ELECTION ASSISTANCE COMMISSION

BALANCE SHEET

AS OF SEPTEMBER 30, 2015 AND 2014

(In Whole Dollars)

2015 2014

Assets:

Intragovernmental

Fund Balance With Treasury $ 21,932,149 $ 22,151,806 

Loans Receivable - -

Other 363,506 531,739 

Total Intragovernmental 22,295,655 22,683,545 

Accounts Receivable, Net (30) 2,283,930 

Property, Equipment, and Software, Net 500,906 893,101 

Other - -

Total Assets $ 22,796,531 $ 25,860,576 

Stewardship PP&E 

Liabilities:

Intragovernmental

Accounts Payable $ 89,124 $ 518,507 

Other 22,091 27,979 

Total Intragovernmental 111,215 546,486 

Accounts Payable 104,271 211,356 

Other 550,381 2,770,121 

Total Liabilities $ 765,867 $ 3,527,963 

Commitments and Contingencies 

Net Position:

Unexpended Appropriations - Funds from Dedicated 

Collections $ - $ -

Unexpended Appropriations - Other Funds $ 21,761,683 $ 21,657,604 

Cumulative Results of Operations - Funds from Dedicated 

Collections - -

Cumulative Results of Operations - Other Funds 268,981 675,009 

Total Net Position $ 22,030,664 $ 22,332,613 

Total Liabilities and Net Position $ 22,796,531 $ 25,860,576 
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ELECTION ASSISTANCE COMMISSION

STATEMENT OF NET COST

FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014

(In Whole Dollars)

2015 2014

Program Costs:

Communications and Clearinghouse

Gross Costs $ 753,62 $ 716,562 

Fund and Oversee

Gross Costs $ 3,354,32 $ 3,578,663 

Research, Policy, and Programs

Gross Costs $ 1,209,79 $ 1,294,209 

Testing and Certifications

Gross Costs $ 2,348,90 $ 2,273,479 

Net Cost of Operations $ 7,666,64 $ 7,862,913 
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ELECTION ASSISTANCE COMMISSION

STATEMENT OF CHANGES IN NET POSITION

FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014

(In Whole Dollars)

2015 2014

Cumulative Results of Operations:

Beginning Balances $ 675,009 $ 1,038,147 

Adjustments

Changes In Accounting Principles - -

Corrections of Errors - -

Beginning Balances, as Adjusted 675,009 1,038,147 

Budgetary Financing Sources:

Other Adjustments - -

Appropriations Used 7,021,479 7,276,848 

Nonexchange Revenue - -

Donations and Forfeitures of Cash and Cash 

Equivalents - -

Transfers In/Out Without Reimbursement - -

Other - -

Other Financing Sources (Non-Exchange):

Donations and Forfeitures of Property - -

Transfers In/Out Reimbursement - -

Imputed Financing Sources 239,136 222,927 

Other - -

Total Financing Sources 7,260,615 7,499,775 

Net Cost of Operations (7,666,643) (7,862,913)

Net Change (406,028) (363,138)

Cumulative Results of Operations $ 268,981 $ 675,009 

Unexpended Appropriations:

Beginning Balances $ 21,657,604 $ 21,820,863 

Adjustments

Changes In Accounting Principles - -

Corrections of Errors - -

Beginning Balances, as Adjusted 21,657,604 21,820,863 

Budgetary Financing Sources:

Appropriations Received 10,000,000 10,000,000 

Appropriations Transferred In/Out (1,900,000) (1,900,000)

Other Adjustments (974,442) (986,411)

Appropriations Used (7,021,479) (7,276,848)

Total Budgetary Financing Sources 104,079 (163,259)

Total Unexpended Appropriations $ 21,761,683 $ 21,657,604 

Net Position $ 22,030,664 $ 22,332,613 
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ELECTION ASSISTANCE COMMISSION

STATEMENT OF BUDGETARY RESOURCES

FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014

(In Whole Dollars)

2015 2014

Budgetary Resources:

Unobligated Balance Brought Forward, October 1 $ 13,476,424 $ 11,873,513 

Adjustment to Unobligated Balance Brought Forward, October 1 - -

 Unobligated Balance Brought Forward, October 1, as 

adjusted 13,476,424 11,873,513 

Recoveries of Prior Year Unpaid Obligations 370,805 955,053 

Other changes in unobligated balance (974,442) (986,412)

Unobligated balance from prior year budget authority, net 12,872,787 11,842,154 

Appropriations 8,100,000 8,100,000 

Borrowing authority - -

Contract Authority - -

Spending authority from offsetting collections 23,727 1,012 

Total Budgetary Resources $ 20,996,514 $ 19,943,166 

Status of Budgetary Resources:

Obligations Incurred $ 6,273,134 $ 6,466,742 

Unobligated balance, end of year:

 Apportioned 5,121,218 4,241,385 

 Exempt from apportionment - -

 Unapportioned 9,602,162 9,235,039 

Total unobligated balance, end of year 14,723,380 13,476,424 

Total Budgetary Resources $ 20,996,514 $ 19,943,166 

Change in Obligated Balance

 Unpaid Obligations:

Unpaid Obligations, Brought Forward, October 1 $ 8,675,382 $ 15,901,439 

Adjustment to Unpaid Balance, Start of Year - -

Obligations Incurred 6,273,134 6,466,742 

Outlays (gross) (7,368,942) (12,737,746)

Actual transfers, unpaid obligations - -

Recoveries of Prior Year Unpaid Obligations (370,805) (955,053)

Unpaid Obligations, End of Year (Gross) 7,208,769 8,675,382 

Uncollected payments:

Uncollected Customer Payments, Federal Sources, Brought 

Forward, October 1 - -

Adjustment to Uncollected Customer Payments, Federal Sources, 

Start of Year - -

Change in Uncollected Customer Payments, Federal Sources - -

Actual transfers, uncollected customer payments, Federal 

Sources - -

Uncollected Customer Payments, Federal Sources, End of Year - -

Memorandum entries:

Obligated Balance, Start of Year $ 8,675,382 $ 15,901,439 

Obligated Balance, End of Year $ 7,208,769 $ 8,675,382 
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Budget Authority and Outlays, Net:

Budget authority, gross $ 8,123,727 $ 8,101,012 

Actual offsetting collections (23,727) (1,012)

Change in uncollected customer payments from Federal sources - -

Anticipated offsetting collections $ - $ -

Budget Authority, net $ 8,100,000 $ 8,100,000 

Outlays, gross $ 7,368,942 $ 12,737,746 

Actual offsetting collections (23,727) (1,012)

Outlays, net 7,345,215 12,736,734 

Distributed Offsetting Receipts - -

Agency outlays, net $ 7,345,215 $ 12,736,734 

ELECTION ASSISTANCE COMMISSION

STATEMENT OF CUSTODIAL ACTIVITY

FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014

(In Whole Dollars)

2015 2014

Revenue Activity:

Sources of Cash Collections:

Individual Income and FICA/SECA Taxes $ - $ -

Corporate Income Taxes

Excise Taxes

Estate and Gift Taxes

Federal Unemployment Taxes

Customs Duties

Miscellaneous 2,266,086 1,265 

Total Cash Collections 2,266,086 1,265 

Accrual Adjustments (2,266,085) 2,266,085 

Total Custodial Revenue 1 2,267,350 

Disposition of Collections:

Transferred to Others (by Recipient) 1 1,265 

Increase/(Decrease) in Amounts Yet to be Transferred - 2,266,085 

Refunds and Other Payments - -

Retained by the Reporting Entity - -

Net Custodial Activity $ - $ -
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II.E. NOTES TO THE FINANCIAL STATEMENTS

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

U.S. Election Assistance Commission (EAC) is an independent, bipartisan commission 

charged with developing guidance to meet the Help America Vote Act (HAVA) 

requirements, adopting voluntary voting system guidelines, and serving as a national 

clearinghouse of information about election administration. EAC also accredits testing 

laboratories and certifies voting systems, as well as audits the use of HAVA funds.

Other responsibilities include distributing and monitoring HAVA funds provided to states 

and other grantees; and maintaining the national mail voter registration form developed in 

accordance with the National Voter Registration Act of 1993.

HAVA established the Standards Board and the Board of Advisors to advise EAC. The law 

also established the Technical Guidelines Development Committee to assist EAC in the 

development of voluntary voting system guidelines.

By statute, four EAC commissioners are appointed by the President and confirmed by the 

United States Senate. The Agency currently has three commissioners. EAC is required to 

submit an annual report to Congress as well as testify periodically about HAVA progress 

and related issues. The commission also holds public meetings and hearings to inform the 

public about its progress and activities.

The EAC reporting entity is comprised of General Funds.

General Funds are accounts used to record financial transactions arising under 

congressional appropriations or other authorizations to spend general revenues. EAC 

manages Salaries and Expenses, Election Reform Program and Election Data Collection 

Grants General Fund accounts.

EAC has rights and ownership of all assets reported in these financial statements. EAC 

does not possess any non-entity assets.

B. Basis of Presentation

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

operations of EAC. The Balance Sheet presents the financial position of the agency. The 

Statement of Net Cost presents the agency’s operating results; the Statement of Changes in 

Net Position displays the changes in the agency’s equity accounts. The Statement of 

Budgetary Resources presents the sources, status, and uses of the agency’s resources and 

follows the rules for the Budget of the United States Government.

The statements are a requirement of the Chief Financial Officers Act of 1990, the 

Government Management Reform Act of 1994 and the Accountability of Tax Dollars Act 
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33

of 2002. They have been prepared from, and are fully supported by, the books and records 

of EAC in accordance with the hierarchy of accounting principles generally accepted in the 

United States of America, standards issued by the Federal Accounting Standards Advisory 

Board (FASAB), Office of Management and Budget (OMB) Circular A-136, Financial 

Reporting Requirements, as amended, and EAC accounting policies which are summarized 

in this note. These statements, with the exception of the Statement of Budgetary 

Resources, are different from financial management reports, which are also prepared 

pursuant to OMB directives that are used to monitor and control EAC’s use of budgetary 

resources. The financial statements and associated notes are presented on a comparative 

basis. Unless specified otherwise, all amounts are presented in dollars.

C. Basis of Accounting

Transactions are recorded on both an accrual accounting basis and a budgetary basis. 

Under the accrual method, revenues are recognized when earned, and expenses are 

recognized when a liability is incurred, without regard to receipt or payment of cash. 

Budgetary accounting facilitates compliance with legal requirements on the use of federal 

funds.

D. Fund Balance with Treasury

Fund Balance with Treasury is the aggregate amount of the EAC’s funds with Treasury in 

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

pay current liabilities and finance authorized purchases. 

The EAC does not maintain bank accounts of its own, has no disbursing authority, and does 

not maintain cash held outside of Treasury. Treasury disburses funds for the agency on 

demand. 

E. Accounts Receivable

Accounts receivable consists of amounts owed to EAC by other Federal agencies and the 

general public. EAC has made advance payments for services from other Federal Agencies. 

When the period of performance for these services expires without fulfillment of the 

contract, a receivable is recorded. EAC has also made advance grant payments to the states 

for the primary purpose of replacing punch card or lever voting machines. The period of 

use of this grant money has expired. All unused funds that have not been returned have 

been recorded as a receivable. Amounts due from Federal agencies are considered fully 

collectible. Accounts receivable from the public include reimbursements from employees. 

An allowance for uncollectible accounts receivable from the public is established when, 

based upon a review of outstanding accounts and the failure of all collection efforts, 

management determines that collection is unlikely to occur considering the debtor’s ability 

to pay.
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F. Property, Equipment, and Software

Property, equipment and software represent furniture, fixtures, equipment, and information 

technology hardware and software which are recorded at original acquisition cost and are 

depreciated or amortized using the straight-line method over their estimated useful lives. 

Major alterations and renovations are capitalized, while maintenance and repair costs are 

expensed as incurred. EAC's capitalization threshold varies based on the property 

classification for assets with a useful life of 2 or more years. For general property and 

equipment, the capitalization threshold is $10,000 with a bulk purchase policy of $100,000. 

For leasehold improvements and software, the capitalization threshold is $25,000. 

Property, equipment, and software acquisitions that do not meet the capitalization criteria 

are expensed upon receipt. Applicable standard governmental guidelines regulate the 

disposal and convertibility of agency property, equipment, and software. The useful life 

classifications for capitalized assets are as follows:

Description Useful Life (years)

Leasehold Improvements 4 - 7

Office Furniture 5

Computer Equipment 5

Office Equipment 5

Software 5

G. Advances and Prepaid Charges

On occasion the EAC prepays amounts in anticipation of receiving future benefits.

Although a payment has been made, an expense is not recorded until goods have been 

received or services have been performed. The EAC has prepayments and advances with 

non-governmental, as well as governmental, vendors.

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 
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and received and for services rendered except for employees. Accrued payroll and benefits 

represent payroll costs earned by employees during the fiscal year which are not paid until 

the next fiscal year. EAC also accrues liabilities for Section 251 grants, research and 

development grants for such items as improving voting technology and processes for 

injured military personnel, and logic and accuracy testing grants. See the required 

supplemental information for a more detailed explanation of the grants.

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

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

leave. 

I. Annual, Sick, and Other Leave

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

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

associated with other types of vested leave, including compensatory, restored leave, and 

sick leave in certain circumstances, are accrued at year-end, based on latest pay rates and 

unused hours of leave. Funding will be obtained from future financing sources to the extent 

that current or prior year appropriations are not available to fund annual and other types of 

vested leave earned but not taken. Nonvested leave is expensed when used. Any liability 

for sick leave that is accrued but not taken by a Civil Service Retirement System (CSRS)-

covered employee is transferred to the Office of Personnel Management (OPM) upon the 

retirement of that individual. Credit is given for sick leave balances in the computation of 

annuities upon the retirement of Federal Employees Retirement System (FERS)-covered 

employees effective at 50% for the 1st quarter of FY 2014 and 100% thereafter.

J. Accrued and Actuarial Workers’ Compensation

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

of Labor (DOL) addresses all claims brought by the EAC employees for on-the-job injuries. 

The DOL bills each agency annually as its claims are paid, but payment of these bills is 

deferred for two years to allow for funding through the budget process. Similarly, 

employees that the EAC terminates without cause may receive unemployment 

compensation benefits under the unemployment insurance program also administered by 

the DOL, which bills each agency quarterly for paid claims. Future appropriations will be 

used for the reimbursement to DOL. 

K. Retirement Plans

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

participate in CSRS are beneficiaries of EAC matching contribution, equal to seven percent 

of pay, distributed to their annuity account in the Civil Service Retirement and Disability 

Fund.

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

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 
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36

participate in the federal Thrift Savings Plan (TSP). FERS employees receive an automatic 

agency contribution equal to one percent of pay and EAC matches any employee 

contribution up to an additional four percent of pay. For FERS participants, EAC also 

contributes the employer’s matching share of Social Security.

FERS employees and certain CSRS reinstatement employees are eligible to participate in 

the Social Security program after retirement. In these instances, EAC remits the 

employer’s share of the required contribution.

EAC recognizes the imputed cost of pension and other retirement benefits during the 

employees’ active years of service. OPM actuaries determine pension cost factors by 

calculating the value of pension benefits expected to be paid in the future and communicate 

these factors to EAC for current period expense reporting. OPM also provides information 

regarding the full cost of health and life insurance benefits. EAC recognized the offsetting 

revenue as imputed financing sources to the extent these expenses will be paid by OPM.

EAC does not report on its financial statements information pertaining to the retirement 

plans covering its employees. Reporting amounts such as plan assets, accumulated plan 

benefits, and related unfunded liabilities, if any, is the responsibility of the OPM, as the 

administrator.

L. Other Post-Employment Benefits

EAC employees eligible to participate in the Federal Employees' Health Benefits Plan 

(FEHBP) and the Federal Employees' Group Life Insurance Program (FEGLIP) may 

continue to participate in these programs after their retirement. The OPM has provided the 

EAC with certain cost factors that estimate the true cost of providing the post-retirement 

benefit to current employees. The EAC recognizes a current cost for these and Other 

Retirement Benefits (ORB) at the time the employee's services are rendered. The ORB 

expense is financed by OPM, and offset by the EAC through the recognition of an imputed 

financing source. 

M. Use of Estimates

The preparation of the accompanying financial statements in accordance with generally 

accepted accounting principles requires management to make certain estimates and 

assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. 

Actual results could differ from those estimates. 

N. Imputed Costs/Financing Sources

Federal Government entities often receive goods and services from other Federal 

Government entities without reimbursing the providing entity for all the related costs. In 

addition, Federal Government entities also incur costs that are paid in total or in part by 

other entities. An imputed financing source is recognized by the receiving entity for costs 

that are paid by other entities. EAC recognized imputed costs and financing sources in 

fiscal years 2015 and 2014 to the extent directed by accounting standards.
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O. Grants

The EAC administers and oversees the grant making process in connection with federal 

Requirement Payments and grants made to recipient organizations and the HAVA. As 

Requirement Payments and grants are awarded, they are recorded as obligations and 

represent uses of budgetary resources. 

Payments made under the grant awards for expenditures already incurred by the recipients 

are fully expended and are included in the statement of net costs. Grant awards made to 

grantees in advance of expenditures are recorded as advances and are included in the 

balance sheet.

NOTE 2. FUND BALANCE WITH TREASURY

Fund balance with Treasury account balances as of September 30, 2015 and 2014, were as 

follows:

No discrepancies exist between the Fund Balance reflected on the Balance Sheet and the 

balances in the Treasury accounts.

The available unobligated fund balances represent the current-period amount available for 

obligation or commitment. 

The unavailable unobligated fund balances represent the amount of appropriations for 

which the period of availability for obligation has expired. These balances are available for 

upward adjustments of obligations incurred only during the period for which the 

appropriation was available for obligation or for paying claims attributable to the 

appropriations.

The obligated balance not yet disbursed includes accounts payable, accrued expenses, and 

undelivered orders that have reduced unexpended appropriations but have not yet decreased 

the fund balance on hand (see also Note 12).

2015 2014

Fund Balances:

Appropriated Funds $21,932,149 $22,151,806 

Other Fund Types - - 

Total $21,932,149 $22,151,806 

Status of Fund Balance with Treasury:

Unobligated Balance

 Available $5,121,218 $4,241,385 

 Unavailable 9,602,162 9,235,039 

Obligated Balance Not Yet Disbursed 7,208,769 8,675,382 

Non-Budgetary FBWT - - 

Total $21,932,149 $22,151,806 
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NOTE 3. ACCOUNTS RECEIVABLE

Accounts receivable balances as of September 30, 2015 and 2014, were as follows:

The accounts receivable is primarily made up of moneys due from funds that had been 

advanced for services that were not used and employee receivables.

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

There are no material uncollectible accounts as of September 30, 2015 and 2014.

NOTE 4. ADVANCES AND PREPAYMENTS

Advances and Prepayments balances as of September 30, 2015 and 2014, were as follows:

NOTE 5. PROPERTY, EQUIPMENT, AND SOFTWARE

Schedule of Property, Equipment, and Software as of September 30, 2015:

2015 2014

Intragovernmental

Accounts Receivable $ - $ -

With the Public

Accounts Receivable - 2,283,723

Employee Receivables (30) 207

Total Accounts Receivable $ (30) $ 2,283,930

2015 2014

Intragovernmental

Advances and Prepayments $363,506 $531,739

With the Public

Advances and Prepayments - -

Total Other Assets $363,506 $531,739

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Leasehold Improvements $1,203,003 $928,114 $274,889

Furniture & Equipment 902,626 766,758 135,868

Software 172,721 162,464 10,257

Construction-in-Progress - N/A -

Software-in-Development 79,892 N/A 79,892

Total $2,358,242 $1,857,336 $500,906
Election Assistance Commission

39

Schedule of Property, Equipment, and Software as of September 30, 2014:

Depreciation expense was $393,592 and $294,705 for the twelve months ending September 

30, 2015 and 2014, respectively.

NOTE 6. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

The liabilities for EAC as of September 30, 2015 and 2014, include liabilities not covered 

by budgetary resources. Congressional action is needed before budgetary resources can be 

provided. Future appropriations to fund these liabilities are likely and anticipated. 

FECA liabilities represent the unfunded liability for actual workers compensation claims on 

EAC’s behalf and payable to the DOL. 

Unfunded leave represents a liability for earned leave and is reduced when leave is taken. 

The balance in the accrued annual leave account is reviewed quarterly and adjusted as 

needed to accurately reflect the liability at current pay rates and leave balances. Accrued 

annual leave is paid from future funding sources and, accordingly, is reflected as a liability 

not covered by budgetary resources. Sick and other leave is expensed as taken. 

NOTE 7. OTHER LIABILITIES

Other liabilities account balances as of September 30, 2015 were as follows:

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Leasehold Improvements $771,037 $697,175 $73,862

Furniture & Equipment 902,626 638,650 263,976

Software 172,721 127,918 44,803

Construction-in-Progress 434,793 N/A 434,793

Software-in-Development 75,667 N/A 75,667

Total $2,356,844 $1,463,743 $893,101

2015 2014

Intragovernmental – FECA $234 $234

Intragovernmental – Unemployment Insurance - 5,536

Unfunded Leave 236,261 230,166

Total Liabilities Not Covered by Budgetary Resources $236,495 $235,936

Total Liabilities Covered by Budgetary Resources 529,372 3,292,027

Total Liabilities $765,867 $3,527,963
Election Assistance Commission

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Other liabilities account balances as of September 30, 2014 were as follows:

NOTE 8. LEASES

EAC has no capital leases. EAC relocated from its headquarters office located at 1201 

New York Avenue NW, Suite 300, Washington, DC, on November 1, 2013. EAC also 

ended the lease for additional space at 1225 New York Avenue NW, Washington, DC, at 

the same time. EAC entered into a new lease for its headquarters office located at 1335 

East-West Highway, Silver Spring, MD, which expires on or around November 1, 2018.

Current Non Current Total

Intragovernmental

FECA Liability $738 $ - $738

Unemployment Insurance Liability - - -

Payroll Taxes Payable 21,353 - 21,353

Total Intragovernmental Other Liabilities $22,091 $ - $22,091

With the Public

 Payroll Taxes Payable $3,100 $ - $3,100

 Accrued Funded Payroll and Leave 103,336 - 103,336

 Unfunded Leave 236,261 - 236,261

 Custodial Liability - - -

 Other Liabilities w/related Budgetary Ob 207,684 - 207,684

Total Public Other Liabilities $550,381 $ - $550,381

Current Non Current Total

Intragovernmental

FECA Liability $738 $ - $738

Unemployment Insurance Liability 10,921 - 10,921

Payroll Taxes Payable 16,320 - 16,320

Total Intragovernmental Other Liabilities $27,979 $ - $27,979

With the Public

 Payroll Taxes Payable $2,398 $ - $2,398

 Accrued Funded Payroll and Leave 67,751 - 67,751

 Unfunded Leave 230,166 - 230,166

 Custodial Liability 2,266,085 - 2,266,085

 Other Liabilities w/related Budgetary Ob 203,721 - 203,721

Total Public Other Liabilities $2,770,121 $ - $2,770,121
Election Assistance Commission

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Schedule of Future Lease Payments:

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

renewal options.

NOTE 9. INTRA-GOVERNMENTAL COSTS AND EXCHANGE REVENUE

Intra-governmental costs and revenue represent exchange transactions between EAC and 

other federal government entities, and are in contrast to those with non-federal entities (the 

public). Such costs and revenue are summarized as follows:

Fiscal Year Building Totals

2015 234,472 234,472

2016 236,267 236,267

2017 238,100 238,100

2018 19,863 19,863

2019 - -

Total Future Payments $ 728,702 $ 728,702 

2015 2014

Communications and Clearinghouse

 Intragovernmental Costs $190,573 $199,678

 Public Costs 563,051 516,884

 Total Costs 753,624 716,562

Fund and Oversee

 Intragovernmental Costs $848,225 $997,236

 Public Costs 2,506,098 2,581,427

 Total Costs 3,354,323 3,578,663

Research, Policy, and Programs

 Intragovernmental Costs $305,927 $360,646

 Public Costs 903,868 933,563

 Total Costs 1,209,795 1,294,209

Testing and Certification

 Intragovernmental Costs $593,979 $633,532

 Public Costs 1,754,922 1,639,947

 Total Costs 2,348,901 2,273,479

Total Intragovernmental costs 1,938,704 2,191,092

Total Public costs 5,727,939 5,671,821

Total Net Cost $7,666,643 $7,862,913
Election Assistance Commission

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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 2015 actual budgetary execution 

information has not yet been published. The President’s Budget is scheduled for 

publication in February 2016 and can be found at the OMB Web site: 

http://www.whitehouse.gov/omb/. The 2016 Budget of the United States Government, with 

the "Actual" column completed for 2014, has been reconciled to the Statement of 

Budgetary Resources and there were no material differences. 

The budget that includes the Fiscal Year 2014 actual execution information is as follows:

NOTE 11. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED

Obligations incurred and reported in the Statement of Budgetary Resources in 2015 and 

2014 consisted of the following:

Category B apportionments typically distribute budgetary resources by activities, projects, 

objects or a combination of these categories.

NOTE 12. UNDELIVERED ORDERS AT THE END OF THE PERIOD

For the twelve months ended September 30, 2015 and 2014, budgetary resources obligated 

for undelivered orders are as follows:

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.

Budgetary Obligations Net

FY2014 Resources Incurred Outlays

Statement of Budgetary Resources $19,943,166 $6,466,742 $12,736,734

Spending Authority from Offsetting

 Collections 1,012

Unobligated Balance Not Available 9,235,039

Rounding (2,707,115) (466,742) (736,734)

Budget of the U.S. Government $8,000,000 $6,000,000 $12,000,000

2015 2014

Direct Obligations, Category B $6,273,134 $6,466,742 

Total Obligations Incurred $6,273,134 $6,466,742

2015 2014

Undelivered Orders $7,038,302 $8,181,178 

Total Undelivered Orders $7,038,302 $8,181,178 
Election Assistance Commission

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NOTE 14. REQUIREMENT PAYMENTS AND GRANT PROGRAMS

The EAC Requirements Payments and Grant programs are funded through annual 

appropriations. The largest of the grant programs is the Help American Vote Act (HAVA) 

Section 251 Requirements Payments to the states to help them meet the Title III 

requirements of HAVA. The EAC periodically receives additional grant money to fund 

grant programs such as Research of Voting Technology Improvements, College Poll 

Worker and Mock Election grants. 

During FY 2015, EAC received a Logic and Accuracy Grant payment refund in the amount 

of $17,638. There were no offsetting requirement payments during that period.

NOTE 15. CUSTODIAL CASH COLLECTIONS

During October 2013, Election Assistance Commission (EAC) disbursed a $2.2 million 

Requirements payment as part of section 251 of the Help America Vote Act (HAVA). The 

payment was made against funds that cancelled September 2013. EAC collected the 

improper payment through Treasury Offset in June, 2015.

2015 2014

 Obligations Incurred $6,273,134 $6,466,742

 Spending Authority from Offsetting Collections and Recoveries (394,532) (956,065)

 Obligations Net of Offsetting Collections and Recoveries 5,878,602 5,510,677

 Transfers in/out Without Reimbursement - -

 Imputed Financing from Costs Absorbed by Others 239,136 222,927

 Net Other Resources Used to Finance Activities 239,136 222,927

 6,117,738 5,733,604

 1,149,218 1,745,486

 7,266,956 7,479,090

Generate Resources in the Current Period 399,687 383,823

$7,666,643 $7,862,913

 Total Resources Used to Finance the Net Cost of Operations 

Resources Used to Finance Activities

Budgetary Resources Obligated

Other Resources

 Total Resources Used to Finance Activities 

 Total Resources Used to Finance Items Not Part of the Net Cost of 

Operations 

Net Cost of Operations

2015 2014

FY 2009 Section 251 Requirement Payments $ 500,000 $ 2,070,509

FY 2010 Section 251 Requirement Payments 350,000 1,449,356

FY2011 Section 251 Requirement Payments 80,066 172,994

Accessible Voting Technology - 2,429,159

Logic and Accuracy Grant Program (17,638) 236,499

Net Cost of Operations $ 912,428 $ 6,358,517
Election Assistance Commission

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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. 

The following chart shows expenditures using Federal HAVA funds for voting and votingrelated equipment, as well as applied voting research by states and other agency recipients 

of grants and payments funds. Amounts are reported in the fiscal year proceeding the year 

the expense was incurred.

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

Section 102 Funds $ 19,905,709 $ 36,838,905 $ (163,130) $90,122 $137,401 $ (267,813) $ (10,769)

Section 251 Funds 262,018,224 143,247,989 104,356,159 40,410,437 43,417,090 168,169,476 75,586,153

Total $281,923,933 $180,086,894 $104,193,029 $40,500,559 $43,554,491 $167,901,663 $75,575,384 

Section 102 Funds. Section 102 funds were disbursed to states for the primary purpose of 

replacing punch card or lever voting machines. As such, section 102 funds have been used 

to purchase physical property.

Section 251 Funds. The HAVA Section 251 Requirements Payments are used to meet the 

requirements of Title III and improve the quality of Federal elections. As such, 

Requirements Payments have been used in part to purchase physical property, and to 

provide funds to the states to carry out other activities to improve the administration of 

Federal elections. 

2015 2014

Miscellaneous $2,266,086 $1,265 

Total Cash Collections $2,266,086 $1,265 
Election Assistance Commission

45

Research and Development

The EAC had two research and development initiatives completed in FY 2014. The 

initiatives provided funds to support the search for new or improved election voting 

technology that increases the accessibility and accuracy of voting for all citizens. Costs 

incurred on these initiatives are included in the calculation of net costs.

Accessible Voting Technology Initiative. The EAC awarded $7.5 million in grants for 

three three-year grants to fund research to identify and develop technological and 

administrative solutions that help ensure that all citizens can vote privately and 

independently, a requirement of HAVA (42 U.S.C. 15441). The initiative supported 

research and development activities to increase the accessibility of new, existing, and 

emerging technological solutions in areas such as assistive technologies, interoperability, 

and design of voting systems. One of the grants provided data on accommodations and 

assistance needed for recently injured military personnel to participate in Federal elections. 

The initiative resulted in over 45 research and development proposals.

Pre-Election Logic and Accuracy and Post-Election Audit Grant Program. The EAC 

awarded $1.4 million in grant funds to develop and document processes and best practices 

for coordinating quality and cost-effective voting system pre-election logic and accuracy 

testing, and post-election audits. Funds supported the research, development, 

documentation, and dissemination of a range of procedures and processes used in managing 

and conducting high quality Logic and Accuracy testing and post-election audit activities 

by type of voting method, vendor specific equipment, jurisdiction size, and other ways.

Fiscal Year 

2011

Fiscal Year 

2012

Fiscal Year 

2013

Fiscal Year 

2014

Fiscal 

Year 2015

Accessible Voting Technology 

Initiative $ 270,011 $ 1,630,476 $ 2,809,602 $ 2,429,159 $ - 

Logic and Accuracy - 275,040 485,600 236,499 (17,638)

Total $ 270,011 $1,905,516 $3,295,202 $2,665,658 $(17,638)
Election Assistance Commission

46

SECTION III

Other Accompanying Information

III.A. Most Serious Management Challenges Facing the EAC

SECTION III Other Accompanying Information

III.A. MOST SERIOUS MANAGEMENT CHALLENGES FACING THE EAC 

ACCORDING TO THE INSPECTOR GENERAL

October 13, 2015 

Memorandum

To: Alice Miller

 Acting Executive Director

From: Roger La Rouche 

Deputy Inspector General

Subject: Inspector General’s Statement Summarizing the Major Management and 

Performance Challenges Facing the U.S. Election AssistanceCommission

In accordance with the Reports Consolidation Act of 2000, I am submitting our annual 

statement summarizing the areas which the Office of Inspector General considers to be the 

most serious management and performance challenges facing the U.S. Election Assistance 

Commission. We compiled this list based upon our audit, inspection and evaluation work; 

and general knowledge of the agency’s operations.

This year’s management challenges are the same as last year: (1) performance 

management and accountability and (2) records management. We have noted the progress 

that EAC has made on each of the challengesidentified.

If you have any questions or need additional information, please contact me at (301) 

734-3106 or at rlarouche@eac.gov.

Attachment

cc: Chair, U.S. Election Assistance Commission

U.S. ELECTION ASSISTANCECOMMISSION

 OFFICE OF INSPECTOR GENERAL

 1335 East West Highway - Suite 4300 

 Silver Spring, MD 20910

 
Election Assistance Commission 

47

 Attachment

U.S. ELECTION ASSISTANCE COMMISSION

 OFFICE OF INSPECTOR GENERAL

 _________________________________________________________

U.S. ELECTION ASSISTANCE COMMISSION

MAJOR MANAGEMENT AND PERFORMANCE

CHALLENGES

Introduction

The Reports Consolidation Act of 2000 requires the Office of Inspector General (OIG) to report 

annually on what it considers to be the most serious management and performance challenges 

facing the U.S. Election Assistance Commission(EAC). Management challenges are derived 

from cross-cutting issues that arise during our regular audit, evaluation and investigatory work. 

They are also influenced by our general knowledge of the agency’s operations and the works of 

other evaluative bodies such as the Government Accountability Office(GAO).

For fiscal year 2015, the OIG is reporting on two management and performance challenges 

facing the EAC. Each of these management challenges have been reported in prior years:

• Performance Management and Accountability

• Records Management

In February of 2008, the OIG issued a report that identified long-standing and overarching 

weaknesses related to EAC operations. The assessment disclosed that the EAC needed to

establish:

• Short and long-term strategic plans, performance goals and measurements to guide 

the organization andstaff.

• An organizational structure that clearly defines areas of responsibility and an 

effective hierarchy forreporting.

• Appropriate and effective internal controls based on riskassessments.

• Policies and procedures in all program areas to document governance and 

accountability structure and practices in place. It is imperative that the 

Commissioners define their roles and responsibilities in relationship to the daily 

operations of the EAC and to assume the appropriate leadership role.

CHALLENGE 1: PERFORMANCE MANAGEMENT

AND ACCOUNTABILITY - ISSUED IN 2008
Election Assistance Commission 

48

 Attachment

U.S. ELECTION ASSISTANCE COMMISSION

 OFFICE OF INSPECTOR GENERAL

 ________________________________________________________________

Effective management and accountability are integral to any operation and must start with 

senior management. At the EAC, direction and management are carried out by four full-time 

commissioners and an executive director. Generally, the commissioners establish policy and the 

executive director carries out policy by administering theday-to- day operations of the 

organization. The Help America Vote Act requires that any action of the commissioners be 

carried out by the approval (vote) of at least three. For almost five years through December 

2014, EAC has lacked a quorum. Thus, critical businesses; including holding formal public 

meetings, adopting new policy and plans, issuing formal advisory opinions, accrediting EAC 

Voting System Test Laboratories, acting on appeals of voting system certification denials or 

revocations, and modifying or updating the Voluntary Voting System Guidelines; have not been 

carried out. Furthermore, EAC has persevered without an executive director since October 2011. 

These conditions and some confusion over the roles and responsibilities of the commissioners 

and the executive director have resulted in a lack of leadership, an inability of EAC to focus on 

key duties, a failure to hold people accountable, and a decline in staff morale.

EAC’s Progress

Progress has been made. The Senate confirmed three new commissioners who were sworn-in 

on January 13, 2015. The Commissioners issued new policy in February which (1) defines the 

Commission and its duties, (2) provides for the division of duties regarding policy making and 

day-to-day operations, and (3) establishes an order of succession in the case of key vacancies. 

Also, the Commissioners obtained a high-level review which covered EAC’s organization and 

mission, and selected othermatters.

Further action is needed. This includes completing the process to hire an executive director and 

a general counsel; obtaining input from key stakeholders on EAC mission, goals, and objectives 

and how to achieve them; revising the strategic plan; assessing the organization structure; 

identifying skill sets needed to meet strategic goals and objectives; crafting a staffing plan; and 

evaluating draft policies and procedures.

Maintaining complete and accurate records of the operations, policies, procedures and practices 

are critical to effective agency performance. Furthermore, retention of government records is 

mandated by federal law. Without these records, an agency cannot retain an institutional 

knowledge. In that regard, since its inception in December 2003, the EAC has seen eight 

commissioners, two general counsels, and program directors come andgo.

CHALLENGE 2: RECORDS MANAGEMENT -

ISSUED IN 2010
Election Assistance Commission 

49

 Attachment

U.S. ELECTION ASSISTANCE COMMISSION

 OFFICE OF INSPECTOR GENERAL

 ________________________________________________________________

The EAC does not have an approved records retention schedule. Similarly, there are no 

procedures for management and retention of records being uniformly implemented at the EAC. 

The OIG first noted the EAC’s lack of a records management system in 2008, when it issued the 

Assessment of EAC’s Program and Financial Operations. Since that time, the OIG has 

conducted several audits and evaluations of EAC and its programs that have revealed a 

continuing problem with maintaining records. Most recently, in 2010, the OIG audited a grant 

distributed by the EAC. EAC staff was unable to locate the file related to that grant or any emails 

from the previous grants director under whose administration the grant was awarded. In 

addition, the EAC disbursed payment on that grant without records of whether and to what 

extent the grantee had performed services commensurate with the grant proposal andaward.

The lack an approved system for records retention leaves the EAC vulnerable to suit by 

information requesters and susceptible to waste, fraud, or abuse of its resources and the 

intentional destruction of government records in violation of federal law. The EAC should 

expeditiously take steps to adopt a records management system, obtain approval of that system 

from the National Archives and Records Administration (NARA), and train its staff on the 

proper retention of federal government records.

EAC’s Progress

EAC completed the records retention schedules for Human Resources, the Office of General 

Counsel, Chief Financial Officer, and Grants and Communications on February 15, 2015, and 

submitted the schedules to NARA. The schedule for the Research Division is in the development 

stages and will be submitted by December 15, 2015. The schedule for Testing and Certification 

was submitted to and returned by NARA for wording changes. The target for resubmission is 

also December 15, 2015. Finally, EAC has begun to plan for a system to organize and archive 

EAC emails.

3
Election Assistance Commission 

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III.B. THE EAC’S RESPONSE TO THE MOST SERIOUS MANAGEMENT 

CHALLENGES FACING EAC ACCORDING TO THE INSPECTOR 

GENERAL

In the area of performance management and accountability, the Election Assistance Commission 

(EAC) would like to clarify that in February 2015, the Commissioners revised the Roles and 

Responsibilities document adopted in September 2008. The revision was made to ensure that 

future lapses in the functioning of the agency’s advisory boards do not occur.

The EAC concurs with the statement that the Commissioners obtained a high-level review of the 

agency’s organization and mission, and that the review included organization and mission. Other 

matters included staffing, restructuring, and work rules.

Regarding further action recommended for this challenge, the areas mentioned in the statement are 

in the purview of the Commissioners. It should be noted that the Commissioners have completed 

the interview processes for the hire of an Executive Director and General Counsel, and are in the 

process of making hiring decisions. Further, the Commissioners have spent a great deal of time 

meeting with the election community: EAC’s Standards Board and Board of Advisors; state and 

local elections staff; national and international election associations; academics; computer 

scientists; electrical and electronics engineers; the Federal Voting Assistance Program; voting 

system manufacturers; and advocacy groups. The meetings have resulted in a broad range of 

information gathering that has provided for the development of setting goals tied to the mandates 

of the agency and assisting election officials.
Election Assistance Commission 

51

The second outstanding major challenge is a records retention schedule for EAC. EAC’s assigned 

Archivist from the National Archives and Records Administration determined, based on her 

review, that the vast majority of the agency records are within the General Records Schedule 

(GRS). As such, Human Resources, Chief Financial Officer, Grants, Commissioners/Executive 

Office (which includes Chief Operating Officer and Executive Director), Chief Information 

Officer, General Counsel, Inspector General, and National Voter Registration Act records are 

completed. The EAC concurs with the status of the records for Communications, Research, and 

Testing and Certification, and with the statement on the plan for organizing and archiving EAC 

emails. 

-2-

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 

2015, the EAC does not believe that it has any programs where the erroneous payments could 

exceed 2.5 percent of program payments or $10.0 million threshold (set in OMB Guidance) to 

trigger further agency action. 

III.D. SUMMARY OF FINANCIAL STATEMENT AUDIT AND 

MANAGEMENT ASSURANCES

SUMMARY OF FISCAL YEAR 2015 FINANCIAL STATEMENT AUDIT

Audit Opinion Unmodified

Material Weaknesses

Beginning 

Balance New Resolved Consolidated

Ending 

Balance

Financial Accounting & Reporting 1 1 0 0

Total Material Weaknesses 1 1 0 0

Summary of Management Assurances

Statement of Assurance (FMFIA§ 2) Unmodified

No. Summary

Beginning 

Balance New Resolved Consolidated

Ending 

Balance

1 Material Weaknesses 

(FMFIA§ 2) 1 0 0

Total 1 0 0

Note: in FY 2014, the FMFIA § 2 referred to two non-financial operational audit recommendations and have been 

removed for FY 2015.
Election Assistance Commission 

52