U.S. ELECTION 

ASSISTANCE

COMMISSION

 

 

 

 

 

 

AGENCY FINANCIAL REPORT

 

 

 

 

 

 

 

 

 

November 15, 2018
Election Assistance Commission

 FY 2018 Agency Financial Report

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ABOUT THIS REPORT

For FY 2018 reporting purposes, the U.S. Election Assistance Commission (EAC) has again 

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

with the Congressional Budget Justification, 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, providing summary 

performance data. A combined Annual Performance Report/Congressional Budget 

Justification, and a Citizen’s Report, will follow per guidance in OMB Circulars A-11, 

Preparation, Submission, and Execution of the Budget and A-136, Financial Reporting 

Requirements. 

Information about EAC’s programs is available at www.EAC.gov. 
 

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 November 15, 2018

MESSAGE FROM THE CHAIRMAN

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

established by Congress “to assist in the effective administration of Federal elections.” This 

Fiscal Year (FY) 2018 Agency Financial Report describes the commission’s accomplishments, 

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

controls and financial management. 

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

Accountability of Tax Dollars Act of 2002. In the Independent Auditor’s Report, the EAC 

received an unmodified (“clean”) audited financial statement opinion with no material 

weaknesses. It is the tenth year that the EAC has chosen the option available in the Office of 

Management and Budget Circular A-136, Financial Report Requirements to submit an Agency 

Financial Report and Annual Performance Report instead of the Performance and 

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

provide more detailed data in conjunction with the FY2020 Congressional Budget Justification. 

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

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

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

certification program, and the formation of the EAC to serve as the nation’s only federal 

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

• Issued 52 voting system certifications, including 10 full systems and 40 system modifications.

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

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

• Accredited and monitored voting system test laboratories;

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

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

and result in cost savings;

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

administration and voting system modernization, including $380 million allocated by Congress 

in March 2018; 
 

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

programs, accessibility innovations, military voting projects, and logic and accuracy testing;

• Created, administered, and reported the biennial Election Administration and Voting Survey 

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

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

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

engagement campaigns.

• Brought together state and local election officials, federal government experts, academic 

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

timely topics, such as election security, accessibility and efficiency.

The EAC’s FY18 activities were largely guided by its new strategic plan, which was formally

adopted in February 2018. The strategic plan, which will guide the commission’s activities 

through 2022, is rooted in four primary goals: analyze, build, distribute, and operate. Each goal 

has a set of concrete supporting objectives. Below is a summary of the commission’s key 

activities and accomplishments during FY18:

DISTIRBUTING HAVA GRANTS

On March 23, 2018, the Consolidated Appropriations Act of 2018 was signed into law, making 

$380 million available to states to improve the administration of federal elections, the first 

new appropriations for HAVA funds since FY2010. These funds came at a critical time. Voting 

equipment across the country had surpassed 10, or in some cases, 15 years of age and election 

officials were working to improve the security of their election systems.

With the 2018 midterm elections not far off, the EAC worked to make funds available to states 

as quickly as possible so they could have an immediate impact. States received grant award 

notification letters in early April, which allowed them to incur costs, with prior EAC approval, 

against the forthcoming grant awards. The Commission has also distributed Congressional 

guidance on how states could spend the funding and held a public forum on April 18, 2018 to 

provide additional guidance. Funds were then available for states to draw down and deposit in 

their election accounts once they returned signed grant documents and the required 

certifications and assurances, making it feasible for jurisdictions to immediately begin system 

upgrades to enhance election security ahead of the 2018 Federal Election. 

Even as election officials across the nation prepared for the upcoming midterm elections, they 

wasted no time in requesting HAVA funds and developing their plans to bolster election 

security and administration. By July 17, the EAC announced each of the 55 eligible states and 

territories had requested 100 percent of the newly appropriated HAVA funds and an 88 

percent or $333,921,264 had already been transferred into state accounts.

On Tuesday, August 21, 2018, less than five months after the omnibus appropriations bill was 

signed into law and 77 days before the 2018 midterm elections, the EAC published program 
 

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narratives and budgets outlining plans to increase election security from 48 of the 55 states 

and territories eligible to receive the newly appropriated HAVA funds. By mid-September, all 

55 states and U.S territories had submitted their final security plans and budgets and 100 

percent of the 380 million had been disbursed.

The Commission made all state narratives and budgets public in order for the election 

community and the American people to have the particulars on how the states and territories 

were expending their funds. It is essential that the states and territories have access to the 

wealth of ideas and innovative approaches contained in other states’ individualized planned 

activities as they plan their own use of the funds. It is equally essential that the voting public 

know how states are using federal funds to update and secure their systems.

Election security enhancements including new voting equipment and cybersecurity protections 

made up nearly two-thirds of total investments detailed in state narratives and budgets. States 

and territories allocated the remaining third to improve voter registration systems, postelection audit activities and election-related communications, and establishing reserves for 

future programming. 

The state and territory narratives contained expenditures for items such as personnel, 

equipment, sub-grants awards, trainings and accessibility improvements. Many of the 

documents also contained information on how grant recipients would comply with statutorily 

required activities, such as the 5 percent state funding match that must be provided within the 

next two years.

The steady rate of incoming requests the EAC received for this critical funding made clear the 

urgent need for new resources and was a testament to the dedication of election officials to 

bolster the security of our country’s election systems. However, requesting HAVA funding was 

just one of the ways states worked to make their election systems more resilient, just as the 

EAC’s distribution of HAVA funds was just one aspect of the EAC’s election security work. 

While the long-term impact of the new HAVA funding will be determined by how states and 

territories choose to use it, Americans should feel assured their election systems have integrity 

because of the diligent efforts of election officials around the country to improve every aspect 

of their systems.

The vast majority of states and territories plan to spend their allotted funds within the next 

two to three years. Each funding recipient is required to file a standard Federal Financial 

Report and updated program narrative for each fiscal year and may be audited by the EAC’s 

Inspector General. The first Progress and Financial Reports from states and territories were 

due to the EAC on December 31, 2018. The Commission will produce a brief summarizing how 

new HAVA funds are being used in the first quarter of 2019 as our team provides technical 

assistance and grants management advice to state election offices as requested.

SUPPORTING SECURE, EFFICIENT, ACCESSIBLE ELECTIONS
 

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A key goal of the EAC mission is to help election officials improve the administration of Federal 

Elections through the distribution of assistance and products. During the previous fiscal year, 

the EAC accomplished this by producing timely resources at critical moments in the election 

cycle, convening key leaders to discuss the most pressing issues facing election administrators,

and elevating the profile and credibility of the agency. 

Events

The EAC’s calendar and strategy for FY18 was defined by the elections cycle and how the 

agency could produce products and services at the most impactful times for election officials 

and voters. The commission began the 2018 calendar year by hosting its EAC Summit: The 

2018 Federal Election, an event the convened nearly than 150 election officials, lawmakers, 

advocates, and other election stakeholders from around the country to examine election 

security, increasing accessibility, and improving the voter experience. This initial summit set 

the tone for the year, facilitating discussions where election officials could set priorities for the 

upcoming year and examine solutions their peers were implementing. 

Ahead of its April 2018 Standards Board and Board of Advisor meetings in Miami, the EAC held 

a second major event featuring a public forum on election security. The forum came just 

weeks after the Consolidated Appropriations Act of 2018 provided $380 million in new HAVA 

funds. This EAC public forum was the first of its kind ahead of the 2018 election and was an 

opportunity for state and local election officials from across the nation to provide statements 

about their election cybersecurity efforts. The discussion also featured details about the new 

funding and EAC’s leadership efforts in this area.

The EAC’s commitment to convening election officials and other stakeholders continued 

during the EAC’s Election Data Summit held in Philadelphia on July 12 in conjunction with the 

Pennsylvania Department of State. Just two weeks later, the commission partnered with 

Democracy Fund Voice and the Arizona State University Pastor Center for Politics and Public 

Service to host a Language Access Summit. The fiscal year concluded with final preparations 

for the commission’s October 3 EAC Election Readiness Summit and Election System Vendor 

Fair on Capitol Hill, hosted just one month before the 2018 midterm election. The Election 

Data Summit, Language Access Summit, and Election Readiness Summit each brought at least 

120 to 140 election stakeholders together and many more participated via live video stream. 

Communications Outreach

From a communications perspective, the EAC’s professional communications staff produced 46

press releases, 4 major events and 3 original videos highlighting best practices, new 

developments, and commending key work of election officials and workers. It also produced 

72 blogs, including series focused on voter list maintenance, women in elections, security, and 

other timely topics. The products with the furthest reach and impact were those which were 

relevant to election officials and voters. For example, the EAC Election Security video released

in March 2018 was a useful tool for election officials, regardless of their geographic location, to 
 

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educate voters about the many layers of security in place to protect elections. This video was 

repurposed by multiple Secretaries of State, who used it as a key education took for voter 

education efforts. It was also used as a resource for election worker trainings across the 

country ahead of the 2018 midterm elections. 

Following the designation of $380 million in new HAVA funds and the receipt of 48 out of 55 

state narratives and budgets, the Communications team implemented a rollout strategy that

resulted in a widespread national coverage of the grants administration program and how 

states plan to use the newly appropriated funds. Commissioners and staff participated in 

dozens of media interviews. In addition, Commissioners participated in regional press calls 

with several Secretaries of State, who provided regional context specific to more localized 

markets. This resulted in multiple positive national stories about the role of EAC in the election 

community, including wire coverage that was picked up by hundreds of regional outlets 

around the country. 

Outside of the grant release, the EAC proactively pitched stories about services and products 

the agency provides election officials, such as the Testing & Certification team’s IT 

Management training, discussed later in this note. The Communications team also proactively 

developed and pitched opinion pieces and longer scholarly articles from Commissioners. Such 

placements help the EAC reach the broadest possible audience and drive its own message on 

election administration and the role of the Commission in this space. 

From a social media perspective, the EAC experienced significant growth during FY2018. The 

commission’s YouTube video offerings grew by 20%, including new roundtables on 

cybersecurity, ways to improve voter participation, and best practices in list maintenance 

procedures. The Commission grew its Twitter followers by nearly 20%, and its Facebook fan 

base increased by 57%. The commission’s website had 950,000 page views, including more 

than 150,000 visitors to its National Voter Registration Form. 

Overall, these accomplishments represent significant progress for the EAC communications

efforts in comparison to years past. The agency is producing more events with timely content,

growing its social networks, increasing its public profile in the press, and taking other 

significant steps to reach the election officials and voters it serves. In addition, the 

Communications team has deepened its relationships with journalists and increased coverage 

of the agency, particularly around grants administration and convening election leaders. It has 

professionalized the look and feel of public presentations, online content, and physical 

products. 

Producing Impactful Products and Programs

In FY18, the EAC's research team created a suite of new reports and tools leveraging data from 

the 2016 Election Administration and Voting Survey, and undertook a number of key activities 

supporting the 2018 EAVS and accompanying Election Administration and Policy Survey (Policy 

Survey).
 

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The EAC published four election data issue briefs called EAVS Deep Dives in FY18. These briefs 

took an in-depth look at four categories of data collected through the 2016 EAVS and earlier 

iterations of the survey: 1) early, absentee, and mail voting; 2) poll workers and polling places; 

3) election technology; and 4) provisional ballots. The election data issue briefs provided 

analysis that helps demonstrate the changing landscape of U.S. elections, including the steady 

expansion of alternatives to traditional in-person Election-Day voting, the rapid increase of the 

use of online voter registration, and the rise in electronic poll book usage, among other 

important findings. With election officials and policy makers increasingly focused on election 

security following the 2016 elections, the issue briefs' findings on election technology and failsafe procedures such as provisional ballots were particularly valuable. Additionally, the EAC 

launched its first ever online interactive tool using EAVS 2016 data, which greatly enhances the 

accessibility of EAVS data to election officials, policymakers, researchers, and the broader 

public.

The EAC also commenced implementation of the 2018 EAVS and accompanying 2018 Policy 

Survey in FY18. The agency awarded a four-year Blanket Purchase Agreement to Fors Marsh 

Group to serve as its implementing partner for the surveys in 2018 and 2020. In FY18, the EAC 

distributed the 2018 EAVS and Policy Survey to the states, developed a plan to provide 

targeted technical assistance to survey respondents, began collecting responses to the 2018 

Policy Survey, and started development of a pilot program to conduct the EAVS in an online 

format. These and other activities planned for FY19 are expected to ease the burden on survey 

respondents, improve data quality and completeness, and make EAVS data more accessible to 

end users. The 2018 EAVS and Policy Survey will provide Congress, the election administration 

community, and the broader public with a comprehensive look at how the 2018 elections were 

administered in all U.S. states and territories on issues ranging from voter registration to early 

and mail voting, voting by military and overseas citizens, polling operations, provisional ballots, 

and election technology.

The EAC also conducted a number of activities and developed multiple new resources to assist 

election officials and voters in FY18. For example, the EAC:

• Launched a revamped the "Register and Vote in Your State" page and federal elections 

calendar on the EAC website to better assist voters to register to vote and participate in 

elections

• Worked with federal and state partners to conduct tabletop security exercises to improve the 

resilience and security of election systems across the nation with over 600 participants.

• Conducted “Election Official as IT Manager” trainings in 8 jurisdictions across the nation with 

over 500 election officials participating.

• Co-Chaired the Government Coordinating Council established under the designation of 

elections as part of the nation’s critical infrastructure. 

• Testified before Congress to discuss specific steps the EAC has taken to shore up election 

security ahead of the 2018 Federal Election.

• Developed a clearinghouse issue brief on language accessibility.

• Issued a white paper on Risk Limiting Audits.
 

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• Held its second annual Clearinghouse Awards program recognizing election officials for their 

innovative work and identify best practices in election administration. 

• Processed seven state-requested updates to the National Voter Registration Form instructions 

and accompanying Spanish and Asian-language translations. 

• Participated in risk limited audit workshops in states considering implementing this auditing 

process. 

Testing and Certification

As the EAC continues to carry out its voting system testing and certification program, it is also 

focused on finalizing the next generation of Voluntary Voting System Guidelines (VVSG). In 

April, both the EAC Standards Board and Board of Advisors passed resolutions recommending 

that the EAC move forward with the process of considering the draft VVSG 2.0 Principles and 

Guidelines document for full adoption. Both boards passed an amendment to the resolution 

recommending that the EAC adopt, within the Testing and Certification Program Quality & 

Program Manual, a process for VVSG 2.0 requirements and Test Assertions to be updated in 

the absence of a quorum of EAC Commissioners.

The VVSG are a set of specifications and requirements against which voting systems can be 

tested to determine if the systems meet required standards. Some factors examined under 

these tests include functionality, accessibility, accuracy, auditability and security capabilities.

The structure of the new VVSG reflects modifications proposed by the EAC, NIST and the 

TGDC, through its VVSG 2.0 Public Working Groups, which are comprised of election officials, 

voting system manufacturers, disability experts, cyber security experts, technology experts, 

and other key election stakeholders. The new guidelines are a nimble high level set of 

principles that will be supplemented by accompanying documents that detail specific 

requirements for how systems can meet the new guidelines and obtain certification. The 

supplemental documents will also detail assertions for how the accredited test laboratories 

will validate that the system complies with those requirements.

Nearly midway through FY18, the EAC lost its quorum of commissioners. The commission has 

continued to take steps that can ensure a new version of the VVSG moves forward for the 

HAVA mandated public comment period and final adoption once a commissioner quorum is 

restored.

As the EAC looks ahead to the next fiscal year, it plans to build on the success of FY18 and 

continue to seek direction from its newly adopted strategic plan. The Commission will focus on 

its four primary goals - analyze, build, distribute, and operate – and continuing search for ways 

to improve services for election officials and the voters they serve.

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 
 

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an unqualified statement of assurance that the agency’s internal control and financial 

management system meets the Federal Managers’ Financial Integrity Act. 

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

vote.

Sincerely,

Thomas Hicks

Chairman

U.S. Election Assistance Commission
Election Assistance Commission

 FY 2018 Agency Financial Report

TABLE OF CONTENTS

 Page

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

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

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

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

 Organization Chart......................................................................................................8

I.B. Performance Goals, Objectives, and Results ..............................................................9

How EAC Assesses Performance.................................................................................9

Accomplishments by Goal ..........................................................................................9

FY 2018 Performance Summary ...............................................................................22

Portfolio Analysis..................................................................................................... 23 

I.C. Financial Results........................................................................................................23

Budgetary Resources................................................................................................23

 Financial Position......................................................................................................24

 Results of Operations...............................................................................................24

 Limitations of the Financial Statements...................................................................24

I.D. Analysis of Controls, Management Systems, and Legal Compliance........................25

 Internal Control Environment ..................................................................................25

 Federal Manager’s Financial Integrity Act................................................................25

 Entity-Wide Security Program..................................................................................25

 Federal Information Security Management Act.........................................................26

 Audit Follow-Up........................................................................................................26

 Federal Financial Management Improvement Act...................................................26

 Accountability of Tax Dollars Act of 2002 ................................................................27

 Inspector General Act Amendments of 1988...........................................................27

 Grants Oversight and New Efficiency (GONE) Act........................................................27

 Fraud Reduction Report.................................................................................................27

 Annual Assurance Statement on Internal Control .................................................. 33 

SECTION II – Financial Section ................................................................................. 34

II.A. Inspector General’s Assessment...............................................................................35

II.B. Independent Auditor’s Report..................................................................................37

II.C. Required Supplementary Stewardship Information .................................................59

SECTION III - Other Accompanying Information ....................................................... 61

III.A. Major Management and Performance Challenges Facing the EAC.........................62

III.B. Improper Payments..................................................................................................68

III.C. Summary of Financial Statement Audit and Management Assurances ..................69
Election Assistance Commission

FY 2018 Agency Financial Report

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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). In passing the EAC’s 2018-2022 Strategic Plan, the EAC 

framed the mission and vision of the agency set out in its chartering legislation as the 

following. 

EAC Mission Statement: 

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

elections and helps Americans participate in the voting process.

EAC Vision Statement: 

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

voters participate in elections. 

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

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

committees -- the Standards Board, Board of Advisors, and Technical Guidelines Development 

Committee -- guide the EAC. Currently, there are two Commissioners. The EAC is statutorily 

charged with: 

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

• accrediting voting system testing laboratories and certifying voting systems,

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

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

tools and best practices,
Election Assistance Commission

FY 2018 Agency Financial Report

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

the National Voter Registration Act (NVRA) of 1993,

• promoting accessibility for voters with disabilities,

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

• auditing the use of HAVA funds.

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

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. 

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

Department of Commerce serves as the Chair of the TGDC, and provides technical support to 

the Committee. Additionally, HAVA specifies that NIST provide recommendations to EAC 

regarding voting system test laboratories. Since Fiscal Year (FY) 2004, EAC’s annual 

appropriations have included a total to date of $38.2 million for NIST support. 

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

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

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

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

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

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

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

replace punch card and lever voting machines (Section 102). 

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

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

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

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

election administration clearinghouse operations, and distribute Federal financial assistance to 

the states. 

In FY 2004, EAC also appointed a statutorily-required General Counsel. During Fiscal Year 2005, 

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

Inspector General. EAC’s focus in subsequent years was on upgrading the VVSG, completing 

required research to promote effective Federal elections and present key data on election 

practices and voting, instituting a voting system testing and certification program, auditing 

state use of HAVA funds, and providing information on improving elections to its stakeholders. 

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

equivalent staffing ceiling of 24. As of the end of FY 2018, the EAC had 24 full-time and three parttime staff. Since its inception, EAC has received $2,606,150,000 in requirements payments; and 

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

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

Accuracy Testing and Post-Election Verification. EAC also tracks and provides technical assistance 
Election Assistance Commission

 FY 2018 Agency Financial Report

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on the Section 101 funds to improve the administration of Federal election is reported by the 

states as available. The time period for using the Section 102 punch card/lever replacement funds 

expired, and EAC collected all unused funds by the end of FY 2018.

Today, the EAC continues to fulfill its congressionally mandated mission. This mission includes 

new focuses worth mentioning. The EAC is one of the leaders in election cybersecurity, 

collaborating with other federal agencies such as the Department of Homeland Security (DHS). 

This collaboration helped to create the Government Sector Coordinating Council (GCC), that

helps election officials and DHS to work together on election systems as part of the nation’s 

critical infrastructure. Additionally, Congress appropriated in $380 million to assist states with 

election security. The agency distributed these funds to all 55 states and territories in under six

months of the appropriation. The EAC continues to operate efficiently and provide effective 

resources to election officials and voters. For more information on the EAC’s current activities

under its congressional mandates see the following Management Discussion and Analysis 

section.
Election Assistance Commission

 FY 2018 Agency Financial Report

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FUNDING

EAC Appropriation History Fiscal Years 2003 – 2018

(Dollars in Thousands)

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

Section 101 and 102 649,500 649,500 

Administrative 

Expenses 500 500 

Subtotal 101, 102 650,000 650,000 

Election Reform Program Grants

Requirements 

Payments 830,000 1 1,491,150 115,000 100,000 70,000 2,606,150 

Poll Worker Grants 1,500 1,500 

Foundation 1,500 1,500 

Voting Technology 

Research 5,000 3,000 8,000 

Testing & Verification 1,000 2,000 3,000 

Election Security Grants 380,000 380,000 

Sutotal, Election 

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

Election Data Collection Grants

Subtotal, Data 

Collection 10,000 10,000 

EAC Salaries & Expenses (S&E) 

Operations 2,000 1,674 2 11,110 10,986 11,313 12,330 12,909 13,409 13,024 8,750 8,292 8,100 8,100 8,100 8,200 8,600 146,897 

Mock Election Grants 200 300 300 800 

Poll Worker Grants 300 750 750 750 2,550 

Transfer to NIST 2,778 2,772 4,950 3,250 4,000 3,500 3,243 2,750 2,745 1,900 1,900 1,500 1,400 1,500 38,188 

Subtotal, S&E 2,000 1,674 13,888 14,058 16,263 16,530 17,959 17,959 16,267 11,500 11,037 10,000 10,000 9,600 9,600 10,100 188,435 

TOTAL 1,485,000 1,492,824 13,888 14,058 16,263 141,530 123,959 92,959 16,267 11,500 11,037 10,000 10,000 9,600 9,600 390,100 3,848,585 

1/ Carried forward to FY 2005

2/ Includes $481,092 transferred from the Federal Election Commission
Election Assistance Commission

 FY 2018 Agency Financial Report

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Status of Help America Vote Act Authorization versus Appropriations

(in whole dollars)

Authorized

Appropriated 

FYs 2003-2018 Remaining

GSA (FY 2003)

Election Administration Improvement (Section 101)

$ 

324,750,000 

$ 

324,750,000 $ - 

Punch Card/Lever Machine Replacement (Section 102)

 

324,750,000 324,750,000 - 

Administrative Expenses for 101 and 102

 

500,000 

 

500,000 - 

EAC (FY 2003 – 2016)

Requirements Payments (Section 251)

 

3,000,000,000 

** 

2,606,150,000 393,850,000

Voting Technology Improvement Research Grants 

(Section 271)

 

20,000,000 

 

8,000,000 12,000,000

Equipment and Technology Testing Pilot Program 

(Section 281)

 

10,000,000 - 10,000,000

Pre-Election Logic and Accuracy Testing & Post-Election 

Verification

 

3,000,000 1,4

 

3,000,000 - 

Operations (Section 210)

 

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

Election Data Collection Grants

 

10,000,000 3

 

10,000,000 - 

Election Security Grants

 

380,000,000 4 380,000,000 - 

National Student and Parent Mock Election 

Organization (Section 295)

 

200,000 ** - 

 

200,000.00 

Poll Worker Grants (Section 501)

 

5,000,000 **

 

1,500,000 

 

3,500,000.00 

Help America Vote Foundation (Section 601)

 

5,000,000 **

 

1,500,000 

 

3,500,000.00 

Total

$4,271,635,00

0 $3,848,585,000 

$423,050,00

0 

1/ Authorized by P.L. 111-8

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

Grants

3/ Authorized by P.L. 110-161

4/ Authorized by appropriations

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

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

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

Foundation Section 601
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Organization by Program

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

four offices responsible for implementing the agency’s strategic goals, as set out in the agency’s 

current and previous strategic plans. Following the descriptions is EAC’s organization chart. 

Communication and Clearinghouse

Research and Communication staff lead the EAC’s clearinghouse program. These staff are 

responsible for external communications, and the tools and platforms used to provide 

information to election officials and the general public. Areas of responsibility include:

• the EAC Website and Clearinghouse,

• social media,

• media inquiries,

• external communications,

• Congressional relations,

• the Freedom of Information Act, and

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

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

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

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

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

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

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

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

policies, and other agency news. 

Fund and Oversee 

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

• processes and disburses payments to the states,

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

submitted by states,

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

audit findings applicable to EAC’s programs,

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

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

Technology and Administration Requirements, and

• drafts advisory opinions for Commission approval and issuance.
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Research, Policy and Programs

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

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

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

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

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

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

of data on elections in the United States,

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

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

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

return postage; the feasibility of alternative voting methods; and the voting experiences 

of 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 other 

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

other than English, and

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

participation in Federal elections. 

Testing and Certifications

Under the Help America Vote Act, 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) Program:

• assists states with voluntary certification of voting systems,
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• 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, andalong with its advisory boards, EAC and NIST work

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

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I.B. PERFORMANCE GOALS, OBJECTIVES, AND RESULTS

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

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

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

EAC adopted the Plan in March 2009. In accordance with OMB A-11, the EAC adopted a new 

strategic plan in 2018. Following OMB-136, the performance goals and results are aligned with 

the Statement of Net Cost. 

How EAC Assesses Performance

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

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

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

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

can be found on the EAC’s website. Outcomes measure the effect program outputs have on 

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

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

program. Performance measures are quantifiable and documentable representations of a 

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

Program Area: Communication and Clearinghouse

The Communication and Clearinghouse supports the mission of the agency by providing state 

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

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

The Clearinghouse Progam is primarily staffed by agency research and communications staff. 

This program primarily supports the the strategic goals listed below. The EAC lists two sets of 

strategic goals because the Commission passed a new strategic plan during FY18 in accordance 

with OMB A-11. A management discussion and analysis of the communication and 

clearinghouse program’s work towards achieving the listed strategic goals follows the list. 

Previously Enacted Strategic Goals:

• Communicate: Communicate timely and accurate information on the effective

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

by EAC.

• Study, Guide, and Assist: Identify and develop information on areas on pressing concern

regarding the administration of elections for Federal office, issue recommended

improvements, guidance, translations, and best practices are required by HAVA, and

carry our responsibilities under the National Voter Registration Act (NVRA).

• Test and Certify: Build public confidence in elections by testing and certifying voting

systems to improve system security, operation, and accessibility.
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Current Strategic Plan (2018-2022) Goals: 

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

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

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

through the distribution of EAC assistance and products.

Clearinghouse FY 2018 Accomplishments

Through the EAC’s Countdown18 Campaign, a year-long effort to help the nation’s election 

officials prepare for the 2018 midterm election, the commission achieved its Learn and 

Communicate goal by proactively sharing resources and information to support election 

administrators around the country as they face a host of complex challenges. Please note that 

while this section largely addresses the distribution of materials and information, the 

commission’s efforts to analyze data, develop original research, promote election security and 

accessibility, as well as the create other best practices resources are described in more detail

under Goal 3. 

Communications Events and Outreach

In FY 2018, the EAC populated its website with dynamic and engaging content, distributed 46

press releases, created 72 original blogs written by EAC authors and outside experts, produced 

3 original videos, grew its social media community, and hosted 6 events. The following provides 

additional detail about some of these efforts.

Media Coverage & Engagement

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

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

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

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

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

datasets, factsheets, and other materials. These efforts have produced solid and sustained 

coverage growth in recent years. For example, in FY 2018 the EAC was mentioned in 13,399 

print and broadcast news stories in the United States. 

Events

The EAC hosted several meetings, forums and summits in FY 2018 that focused on elections and 

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

EAC Summit: The 2018 Federal Election kicked off the calendar year and was attended by nearly 

150 election officials, lawmakers, advocates and other election stakeholders from around the 

country. The meeting included panels and keynotes focused on election security, accessibility, 

efficiency and integrity. The summit provided a platform for election officials and stakeholders 

to engage experts to discuss priorities and solutions for the upcoming election year. 
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In April 2018, during the EAC’s annual Standards Board and Board of Advisors meetings that are 

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

the country, the commission hosted a public forum on election security. The forum came on the 

heels of Congress passing the Consolidated Appropriations Act of 2018, which established $380 

million in new HAVA funds for states to improve their election systems. During this discussion, 

state and local election officials detailed their election cybersecurity efforts and answered 

questions about how they might invest their portion of the new funds. 

In July 2018, the EAC hosted and co-hosted the Election Data and Language Access Summits. 

Both summits brought at least more than 120 election stakeholders together for discussion and 

information sharing. The EAC and the Pennsylvania Department of State co-hosted the Election 

Data Summit that brought together some of the nation’s most respected election data experts 

to examine ways election officials are using data to improve election processes and inform 

decision making. The panels focused on a distinct aspect of the election cycle and explored 

different sources for election data, including voter registration databases, electronic poll books, 

line management tools, voting equipment, and post-election audits. 

Later that month, the EAC co-hosted Language Access Summit brought together election 

officials, government leaders voting rights groups and other experts to meet and share 

information about the best ways to serve voters. The Summit panelists included experts 

representing Asian American, Latino, American Indian, Alaskan Native, and additional language 

communities from across the country. Discussions focused on demographic changes, the 

Section 203 designation process, federal requirements under the Voting Rights Act, voluntary 

and proactive language assistance, as well as strategies for cost-effective services. The 

summit’s aim was to share information, as well as generate new understanding and 

appreciation between various stakeholder communities.

The fiscal year concluded with final preparations for the commissions EAC Election Readiness 

Summit and Election System Vendor Fair, which took place on October 3, 2018. The goal of the 

event was to focus on security best practices, as well as investments in accessibility, post-election 

audits, and other vital election activities. Following these discussions, the EAC hosted an open 

house for election vendors who wish to display and demonstrate their equipment. Overall, the 

EAC has shown its’ commitment to convening election officials and other stakeholders to 

address key election topics such as cyber security, efficiency and accessibility. 

Blogs 

The EAC’s blog provides a platform to dig deeper into topics that interest election 

administrators and voters alike. In addition to blogs that highlight recent happenings and 

research from the EAC, the Commission has focused on publishing thematic blog series that 

give a unique perspective about elections. Using in-house writers and guest bloggers, often 

election officials or election experts, the EAC used FY 2018 to spotlight issues such as women in 
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elections, election accessibility, election security, and voter registration. The blogs are not only 

original content on the EAC’s website, improving its performance in search engines, but also 

serve as substance for social media engagement. 

Website & Social Media 

In FY 2018, 947,268 unique visitors accessed the EAC’s dynamic website, a 53 percent increase

over the 506,335 in unique visitors in FY 2017. Driving this uptick in online traffic was a series of 

new resources launched for voters and election officials alike. For example, the commission

launched a revamped “Register and Vote in Your State” page that included an interactive map 

to assist voters searching for useful information on how to register and vote in their state. The 

EAC also provided an election calendar to help voters quickly access key election-related dates 

in their states, such as registration and absentee ballot request deadlines and primary election 

days.

The EAC’s total Facebook page “likes” have grown to 1,221 total page Likes at the end of FY 

2018, an increase of 56.7 percent over last fiscal year. The Facebook page includes interactive 

content, original graphics, links to Election Day 2018 information, and video clips from EAC 

Commissioners. Additionally, engagement such as organic reach, reactions, comments and 

shares have increased 25.3 percent since FY 2017. 

The EAC experienced growth in other social platforms, too. For example, EAC’S Twitter 

following was 6,050 at the end of FY 2018, up from 4,868 followers at the end of 

FY 2017. EAC had 1,173 tweets and 3,769 retweets in FY 2018. Overall, Twitter followers and 

engagement increased 100% since FY 2017. During FY 2018, EAC posted 45 new videos to its 

YouTube channel, bringing the commission’s video resource total to 137 videos that are 
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available 24/7 for the public. The videos range from educational “primers” on topics such as 

election security and the EAC’s Election Administration and Voting Survey to issue specific 

webisodes and event panels. The Commission also launched a new Instagram account, where it 

uses compelling photos to engage voters and share important election information.

Federal Advisory Committee Act (FACA) Activities

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

Comprehensive Review Report to Congress for Fiscal Year 2018. It also published Sunshine Act 

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

Freedom of Information Act (FOIA) Activity

Clearinghouse staff completed 45 FOIA requests for during FY 2018. It also maintained its online 

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

available to the public. 

Program Area: Fund and Oversee

The Fund and Oversee supports the mission of the agency by delivering and managing Federal 

funds that help election officials procure modern election systems. This program primarily 

supports the the strategic goals listed below. The EAC lists two sets of strategic goals because 

the Commission passed a new strategic plan during FY18 in accordance with OMB A-11. A 

management discussion and analysis of the fund and oversee program’s work towards 

achieving the listed strategic goals follows the list. 

Previously Enacted Strategic Plan Goals: 

• Fund and Oversee: Deliver and manage Federal funds effectively.

Current Strategic Plan (2018-2022) Goals: 

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

through the distribution of EAC assistance and products.

The Payments and Grants Management division and the Office of the Inspector General (OIG) is 

responsible for delivering and managing Federal funds effectively. 

Fund and Oversee FY 2018 Accomplishments

Disbursement of $380 Million in 2018 HAVA Election Security Funds

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

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

elections for Federal office, including to enhance technology and make certain election security 
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improvements. The 2018 HAVA Election Security Fund, authorized under Title 1 Section 101 of 

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

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

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

The Payments and Grants Management Division sent all eligible states and territories grant 

award notification letters in early April less than a month after the Consolidated Appropriations 

Act of 2018 was signed into law. The letter allowed states to incur costs, with prior EAC 

approval, against the forthcoming grant awards, effective the date of the notification letter. 

Funds were then available for states to draw down and deposit in their state election accounts 

after they returned signed grant documents and the required certifications and assurances. As 

of September 30, 2018, all funds have been disbursed to the states. States must provide an 

annual standard Federal Financial Report and program narrative for each fiscal year and will be 

audited by the EAC’S Inspector General. 

HAVA Section 251 Requirements Payments

The Payments and Grants Management Division did not disburse any Section 251 Requirements 

Payments. Requirements Payments are used to meet the requirements of Title III Uniform and 

Nondiscriminatory Election Technology and Administration Requirements of HAVA. Title III 

requirements include voting system standards, voting information requirements, provisional 

voting, statewide voter registration lists, and identification requirements for voters who 

register by mail. By law, Section 251 funds are calculated according to a formula based on the 

voting age population of each State according to the last census and the total voting age 

population of all States, the District of Columbia, American Samoa, Guam, Puerto Rico, and the 

Virgin Islands. 

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

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

2018, staff made pre-audit technical assistance visits to six states, and conducted remote 

technical assistance to twenty seven states. The internal controls are intended to provide 

reasonable assurance of compliance with Federal laws, regulations, the provisions of HAVA, and 

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

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

division reviewed 2018 Draft Audit Reports conducted by the EAC’s Inspector General for six 

states, and provided support to states as needed throughout the audit process. 

During FY 2018, staff reviewed 110 Federal Financial Reports (FFRs) and accompanying 

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

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

Information from the FFRs as of September 30, 2017 was used to compile the annual grant

expenditure report during FY 2018. The report is available on www.EAC.gov.
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Program Area : Research, Policy and Programs

The Study, Guide and Assist program area supports the mission of the agency by providing 

useful resources that will assist state and local election officials administer elections and to help 

voters participate in the process. Among the products produced by this program is the EAC’s 

Election Adminstration and Voting Survey (EAVS). This program primarily supports the the 

strategic goals listed below. The EAC lists two sets of strategic goals because the Commission 

passed a new strategic plan during FY18 in accordance with OMB A-11. A management 

discussion and analysis of the research and policy program’s work towards achieving the listed 

strategic goals follows the list. 

Previously Enacted Strategic Plan Goals:

• Communicate: Communicate timely and accurate information on the effective

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

by EAC.

• Study, Guide, and Assist: Identify and develop information on areas on pressing concern

regarding the administration of elections for Federal office, issue recommended

improvements, guidance, translations, and best practices are required by HAVA, and

carry our responsibilities under the National Voter Registration Act (NVRA).

Current Strategic Plan (2018-2022) Goals:

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

administration.

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

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

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

through the distribution of EAC assistance and products. Research is responsible for

gathering and creating election administration resources to assist election officials and

voters.

Study, Guide and Assist FY 2018 Accomplishments

Securing Elections

Cybersecurity of elections and of state and local election systems was the headline issue of 

FY17. In FY 2018, the EAC continued to best help the country prepare for, defend against, and 

investigate the potential effects of these attacks. The EAC distributed best practices for 

cybersecurity and managing voting machines, conducted Information Technology (IT) training 

for election officials and administrators, and worked with DHS and state and local election 

officials to understand how to best leverage the DHS designation of elections infrastructure as 

“critical infrastructure.” Furthermore, the Consolidated Appropriations Act of 2018 was signed 
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into law and charged EAC with distributing $380 million in funding to states to improve the 

administration of elections for federal office. 

To help election officials tackle cybersecurity challenges in FY 2018, EAC distributed and posted 

online updated best practices, checklists, white papers, and educational security-related 

materials. For example, in FY 2018, EAC created the “Ten Things to Know about Managing Aging 

Voting Systems” and “Cyber Incident Response Best Practices” resources. It also created an 

original video and corresponding educational material to help voters understand the many 

steps election officials take to secure elections at all stages from voter registration to election 

night results. Additionally, EAC’s Testing and Certification conducted IT training for local and 

state election officials. The training has been delivered in nearly a dozen states. 

Following the U.S. Department of Homeland Security’s (DHS) designation of elections as part of 

the nation’s critical infrastructure, the EAC played an instrumental role in creating opportunities 

for state and local election officials to interact with DHS officials charged with leading the 

critical infrastructure effort. These conversations led to EAC helping to stand up and eventually 

co-chairing the Government Coordinating Council (GCC), which is the public sector counterpart 

of the private sector Sector Coordinating Council. The GCC inform how DHS works with state 

and local jurisdictions to implement its designation of election systems as part of the nation’s 

critical infrastructure and comes together around the creation of resources, information sharing 

structures, and opportunities for collaboration requested by states.

Conducting Original Research

The EAC administers the most comprehensive survey on data and practices concerning the 

administration of U.S. elections on a bi-annual basis, the Election Administration and Voting 

Survey (EAVS). The survey contains data from all fifty states, the District of Columbia, American 

Samoa, Guam, Puerto Rico, and the Virgin Islands, with more than one million data points. EAVS 

provides a data set as well as conclusions relating to the data that are used by other federal 

agencies, election officials, academics and other researchers to understand and improve the 

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

EAC meets numerous legislative mandates, related to the Uniformed and Overseas Citizens 

Absentee Voting Act and the National Voter Registration Act, for the collection of information 

relating to the administration of U.S. elections. 

EAVS is a high-quality, comprehensive survey that provides an in-depth understanding of how 

elections are being administered in the United States. EAC is continually building products on 

top of the data. Examples of these products include EAC’s EAVS Deep Dives. The Deep Dives are 

a series of white papers that EAC creates after examining EAVS data, examining it for trends 

and information, and presenting the findings. Each Deep Dive focuses on an individual trend in 

the data, and presents the information in a non-partisan, easy-to-understand format. In FY 

2018, Research published four Deep Dives on www.EAC.gov so that the agency’s stakeholders 

can easily access them. These briefs took an in-depth look at four categories of data collected 

through the 2016 EAVS and earlier iterations of the survey: 1) early, absentee, and mail voting; 
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2) poll workers and polling places; 3) election technology; and 4) provisional ballots. The

election data issue briefs provided analysis that helps demonstrate the changing landscape of

U.S. elections, including the steady expansion of alternatives to traditional in-person ElectionDay voting, the rapid increase of the use of online voter registration, and the rise in electronic

poll book usage, among other important findings. Additionally, the EAC launched its first ever

online interactive tool using EAVS 2016 data, which greatly enhances the accessibility of EAVS

data to election officials, policymakers, researchers, and the broader public.

In FY 2018, the agency awarded a four-year agreement to Fors Marsh Group to serve as its 

implementing partner for the surveys in 2018 and 2020. The EAC distributed the 2018 EAVS and 

Policy Survey to the states, developed a plan to provide targeted technical assistance to survey 

respondents, began collecting responses to the 2018 Policy Survey, and started development of

a pilot program to conduct the EAVS in an online format. These and other activities planned for 

FY 2019 are expected to ease the burden on survey respondents, improve data quality and 

completeness, and make EAVS data more accessible to end users. The 2018 EAVS and Policy 

Survey will provide Congress, the election administration community, and the broader public 

with a comprehensive look at how the 2018 elections were administered in all U.S. states and 

territories.
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Ensuring Access to the Polls

Millions of Americans with disabilities and voters with Limited English Proficiency go to the polls 

every election. Federal law requires that election officials ensure these voters can access the 

polls and vote privately and independently. To help election officials carry out this mandate, 

EAC focuses clearinghouse resources on helping election administrators identify accessibilityrelated trends, resources, and innovative approaches to serving all voters. 

In addition to producing original online content and distributing the highly popular EAC voting 

rights cards - in large print, pocket size, and braille - to voters with disabilities, the EAC’s 

Commissioners spent a time in FY 2018 engaging Americans with disabilities to find ways the 

EAC and election officials across the nation can improve the voting experience for voters with 

disabilities. For example, in June, the Commissioners chaired an open plenary session at the 

Nation Disability Rights Network’s national conference in Baltimore. The session included an 

interactive conversation with voters, who detailed their experiences at the poll and provided 

feedback about what improvements could be made. Earlier in the year, they conducted a 

similar conversation in during the Association of Programs for Rural and independent Living’s 

(APRIL) annual conference in Spokane, Washington.

As mentioned above, in FY 2018, the EAC also took steps to address language accessibility for 

American voters. The EAC held its third Language Access for Voters Summit in July. The full-day

conference included experts on language access, election administration, federal requirements, 

community relationships, and voter needs presented their research and experiences in panels, 

talks, and workshops. Election officials, advocates, and voters were given the opportunity to 

interact with, educate, and learn from experts and the officials who impact voters with limited 

English proficiency’s voting experience every election cycle. In addition, the commission took 

steps to translate more of its materials into Spanish and other languages.

Highlighting Election Administration Best Practices

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

administration across the nation, the EAC again presented its best practice awards known as

the “Clearies.” These awards highlight leaders in the field of election administration so that 

others may learn from them and their success. In FY 2018, the EAC awarded nine counties in 

three Clearies categories: election innovations, voting accessibility and recruiting, training, and 

retaining election workers. After the success of the first Clearies, in the latter half of FY 2018, 

EAC collected information and submissions for the second year from election officials around 

the country and will award the winners in FY 2019. 

Serving Voters 

In FY 2018, the EAC processed seven state-requested updates to the NVRA instructions and 

accompanying Spanish and Asian language translations. EAC understands that it must not only 

help election officials improve the administration of their elections, but EAC must also directly 
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help voters. Voter resources is one of the most frequently visited portions of the agency’s 

website. Voters can find a Voter’s Guide to Federal Elections, resources for overseas and

military voters, information on registering to vote – including the National Mail Voter 

Registration Form, information about becoming a poll worker, general educational information, 

and Election Day contact information.

Program Area: Testing and Certification

The Test and Certify program area supports the mission of the agency by crafting a national 

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

program in which voting systems that meet the standard are certified as such. Election officials 

use this certification to help guide voting system procurement and use decisions. This program 

primarily supports the the strategic goals listed below. The EAC lists two sets of strategic goals 

because the Commission passed a new strategic plan during FY18 in accordance with OMB A11. A management discussion and analysis of the testing and certification program’s work

towards achieving the listed strategic goals follows the list.

Previously Enacted Strategic Plan Goals:

• Test and Certify: Build public confidence in elections by testing and certifying voting

systems to improve system security, operation, and accessibility.

Current Strategic Plan (2018-2022) Goals: 

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

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

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

through the distribution of EAC assistance and products.

Test & Certify FY 2018 Accomplishments 

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

and certifying voting machines. States’ use of this program and its standard is voluntary. More 

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

certifying test laboratories to test to these guidelines, and administering test campaigns – 

where vender-built voting machines are submitted to the test laboratories for testing voting 

systems against the guidelines. If a voting system meets all of the requirements established in 

the guidelines, then EAC certifies the machines as meeting said guidelines. Election officials use 

this information to help them know that they are procuring high-quality, reliable, voting 

machines. Certain states only allow their officials to procure and use voting machines that have 

been certified to the VVSG. Other states use the standard by itself, and still others use the 

testing program’s labs to help with their own certifications. 

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

machines are secure, accessible, up-to-date and functional, EAC’s Testing and Certification 
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Division works to update the standard and its underlying components. In FY 2018, EAC made 

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

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

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

help ensure voting machines are ready for current challenges. 

The first FACA to examine VVSG 2.0 approved it in September 2018 by the Technical Guidelines 

Development Committee (TGCD). In FY 2018, VVSG 2.0 received final approval from the 

remainder two FACA boards, Standards Board and Board of Advisors. Information about the 

testing program and the standard are available on www.EAC.gov. 

In addition to getting VVSG 2.0 finalized and approved, EAC’s Testing and Certification Division 

tested and certified eleven voting systems and conducted one voting system test laboratory reaccreditation audit. To continue EAC cybersecurity efforts, the division provided Election 

Technology and Security Training to over 400 state and local election officials in ten states 

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

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

officials be effective IT managers.

The training prepares election officials to have a better understanding of how to best manage 

and secure their IT systems in their states, specifically the upcoming 2018 Midterm elections. 

Furthermore, Risk Limiting audit (RLA) training was provided to election officials to assist with 

verifying that the voting equipment used to count ballots during an election properly counts a 

sample of voted ballots after an election. This training is important because an RLA could 

eventually lead to a full manual recount if there is not enough evidence to prove that the 

reported outcome is correct. 

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

the program. Thousands of election jurisdictions around the country are continually researching 

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

navigate this process with confidence.

Additional Information Regarding Agency Management and Operations

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

necessary resources to improve performance and strengthen internal controls that will 

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

listed below. The EAC lists two sets of strategic goals because the Commission passed a new 

strategic plan during FY18 in accordance with OMB A-11. A management discussion and 

analysis of the management and operation goals towards achieving the listed strategic goals

follows the list. 

Previously Enacted Strategic Plan Goals:

• Manage: Achieve organizational and management excellence.
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Current Strategic Plan (2018-2022) Goals: 

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

acting as good stewards of public funds.

FY 2018 Management and Operations Accomplishments

During FY 2018, EAC held a Standards Boards and Board of Advisors meeting in April pursuant 

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

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

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

recovery contingency planning. 

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

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

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

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

planning and strategy processes, and evaluate internal policies and procedures. 

Efforts of the agency resulted in achievement of the measure to obtain an unmodified audit 

opinion on agency financial statements in FY 2018. On the metric regarding meeting annual 

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

and continuous improvement of internal controls. Agency directors responsible for 

implementation of EAC’s goals report on their division metrics throughout the year: 1) the 

Agency Financial Report each November, 2) the Congressional Budget Justification, usually in 

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

September. 

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

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

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

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

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

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

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

reviewed by the Executive Director and the CFO, and rolled into the agency’s Annual Statement 

of Assurance that is presented in this report.

In FY 2018, the EAC continued to provide financial management tools and support to staff. 

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

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

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

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

free online COR and invoice approval training via the procurement service provider agency. 
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FY 2018 Performance Summary

The following table presents key EAC FY2018 program performance results data.

Performance Indicator

Type of 

Indicator Actual

Program Area: Communications and 

Clearinghouse 

Regularly issue information on EAC activities Output Generated 45 press releases, 72 blog posts, 

and 1,173 tweets. 3,769 retweets. Increased 

Twitter followers and Twitter engagements 

by 100% since last year. The EAC website 

received 947,268 page views.

Produce the annual report of EAC activities to 

Congress by January 31 of each year for the 

preceding year ending September 30, and 

other original documents

Output Disseminated report on 1/31/18

Program Area: Fund and Oversee 

Consolidated Appropriations Act of 2018 Output Assisted states to collect the $380 million 

appropriated in Election Security grants to 

improve the administration of federal 

elections.

Review financial and performance reports 

from grantees and notify recipients of 

reporting anomalies or failures to file within 

30 days

Output 100%

Program Area: Research, Policy and Programs

Effectively and efficiently distribute federal 

resources to EAC stakeholders.

Output Completed 4 Deep Dives, Updated 7 staterequests to the NVRA form, Created 1 online 

tool for election research and data, 3 

Statutory Research Initiatives.

Serve as an expert on the administration of 

American elections.

Output Hosted three summits and one forum. 

Organized 4 events on election administration 

issues convening election officials and 

stakeholders (one each for data and 

language, and two for accessibility). 

Presented at 4 external events on EAC 

programs and activities (NASED, FSASE, and 

Texas Election Law Summit; Auburn election 

data summit).

Program Area: Test and Certify 

Test and certify voting systems Output Certified 11 voting systems; 4 applications 

under testing; 

Produce voting system guidance for use in 

the field

Output VVSG 2.0 approved by all three Advisory 

Boards (TGDC, Standards Board and Board 

of Advisors. 
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Portfolio Analysis

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

Reform Programs, and for FY 2008 only, Election Data Collection Grants. In FY 2018, EAC 

received funds in the Salaries and Expenses appropriation of $10.1 million. The appropriation 

was used for a $1.5 million transfer to NIST, payroll, travel, rent, telecommunications, printing, 

contracts, supplies, subscriptions, equipment and software. Congress also appropriated $380 

million in grants in FY 2018.

I.C. FINANCIAL RESULTS

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

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

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

obligations, and outlays are explained; comparisons are made between amounts in FY 2018 to 

FY 2017; and the relevance of balances and amounts in the financial statements and notes are 

discussed. The changes provide context as to how the year’s activities impacted the agency’s 

financial position. 

Budgetary Resources

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

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

Expenses appropriation. Budgetary resources include new Budget Authority from annual 

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

carryover no year grant funds, and unobligated balances. 

FY 2018, the available budgetary resources were $396.5 million, up from $17.3 million in FY 

2017. In FY 2018, as mentioned previously, EAC’s appropriations totaled $10.1 million for 

Salaries and Expenses, including a $1.5 million non-expenditure transfer to NIST. 

Obligations Incurred increased from $8.5 million in FY 2017 to $388.3 million in FY 2018. The 

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

Apportioned increased from $1.0 million in FY 2017 to $1.8 million in FY 2018. 

Financial Position

Assets

EAC had $12.8 million in total assets (Fund Balance with Treasury; Accounts Receivable; 

Property, Equipment, and Software; and Other Assets) as of September 30, 2018, compared to

$14 million in FY 2017. The decrease is largely the result of security grants.
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Liabilities

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

of $852,304 as of September 30, 2017. Liabilities decreased to $678,350 as of September 30, 

2018. 

Net Position

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

from $13.1 million in FY 2017, to $12.2 million in FY 2018. Unexpended Appropriations 

increased primarily due to appropriations of the security grants. 

Results of Operations

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

programs: Clearinghouse; Fund and Oversee (Grants Management and the Office of the 

Inspector General; Study, Guide and Assist (Research); 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. 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 $9.7 million for Fiscal Year 2017, increasing to $388.6

million in FY 2018 due to appropriation of the security grants. 

Limitations of the Financial Statements

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

results of operations of the entity, pursuant to the requirements of 31 U.S. Code 3515(b). The 

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

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

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

financial reports that are used to monitor and control budgetary resources during execution of 

the budget, which are prepared from the same books and records. 

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

U.S. Government, a sovereign entity. 
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I.D. ANALYSIS OF CONTROLS, MANAGEMENT SYSTEMS, AND LEGAL 

COMPLIANCE

Internal Control Environment

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

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

programs and operations is critical for good government, demonstrates responsible 

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

allows for effective delivery of services to customers, and maximizes desired program 

outcomes. 

EAC has developed and implemented management, administrative and financial system 

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

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

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

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

timely data are maintained and used for decision-making. 

The agency can provide unqualified assurance that internal control over financial reporting is 

effective, ensuring that transactions are executed in accordance with budgetary and financial 

laws and other requirements, consistent with the purposes authorized, and recorded in 

accordance with Federal accounting standards. EAC ensures that assets are properly acquired 

and used, and safeguarded to deter theft, accidental loss or unauthorized disposition, and 

fraud. 

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

as follows: 

Federal Manager’s Financial Integrity Act

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

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

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

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

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

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

Entity-Wide Security Program 

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

services for security, availability, efficiency, and productivity. For example, EAC is working with 
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the General Services Administration (GSA) to leverage GSA’s private cloud computing strategy 

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

Currently, EAC operates its own infrastructure, using GSA’s network backbone for security 

purposes. The EAC IT staff of two maintains personal computers, smart phones, and servers; 

provides software requested by EAC staff, remote access services, Voice Over Internet Protocol 

and Interactive Voice Response telecommunications tools; and performs vulnerability scans (in 

addition to GSA’s backbone infrastructure scans). IT staff remediates and updates security 

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

environment. 

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

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

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

Understanding for IT services and equipment at $31,000 for FY 2018. The agreement funds the 

tools that enable GSA to continuously monitor 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. 

Federal Information Security Management Act

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

end of FY 2018. The audit will be available on EAC’s website.

Audit Follow-Up

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 EAC 

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

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

documented in Section III.A. of this report. EAC also considers and responds to 

recommendations from audits and reviews conducted by the Government Accountability 

Office. 

Federal Financial Management Improvement Act

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

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

the Federal Financial Management Improvement Act. 
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Accountability of Tax Dollars Act of 2002 

The Fiscal Year 2018 financial statement audit report identified no material weaknesses in

internal control over financial reporting. 

Inspector General Act Amendments of 1988

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

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

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

state governments. 

Grants Oversight and New Efficiency (GONE) Act

The table below shows the total number of Federal grant and cooperative agreement awards 

and balances for which closeout has not yet occurred but for which the period of performance 

has elapsed by more than two years.

Category 2-3 Years >3-5 Years >5 Years 

Number of 

Grants/Cooperative 

Agreements with Zero 

Dollar Balances

5 8 13

Number of 

Grants/Cooperative 

Agreements with 

Undisbursed Balances

0 0 0

Total Amount of 

Undisbursed Balances

All open grants with zero balances that have been designed as closed by the grantees (Final FFR 

has been submitted) will be closed by the EAC by April 30, 2019.

Fraud Reduction Report

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

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

2018 in three key areas:

I. Implementation of financial and administrative controls
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Financial and administrative controls are described in EAC’s Annual Accounting Handbook, 

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

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

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

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

cardholders and reviewed and approved by the CFO as cardholder agency point of contact.

Financial and administrative controls are further described in annual cycle memoranda 

prepared as part of the annual financial statement audit, which lasts from April through midNovember. The memos are in the areas of: Fund Balance with Treasury, Accounts Receivable, 

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

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

Green Book)

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

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

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

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

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

Further, management signed a document stating that they are not aware of instances of fraud 

in FY 2018.

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

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

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

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

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

The Green Book identifies three types of fraud:

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

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

3. Corruption (bribery and other illegal acts)

Another fraud risk is misconduct (e.g., waste or abuse of government resources). 

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

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

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

a full-time Inspector General. Most financial transactions involve three indiviudals. 

EAC is assessed to have a low risk of fraud in these areas: 
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• Fraudulent financial reporting risk: financial reporting is provided by one of the four OMBauthorized financial service providers. All financial reporting, including financial statements 

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

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

financial auditor each year since Fiscal Year 2008. The auditors’ working papers are 

reviewed by the agency’s Inspector General.

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

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

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

the Federal Protective Service via interagency agreement. Property removed from the 

building requires presentation of a signed property pass to a guard.

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

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

CFO, and staff is made aware in mandatory training and at all staff meetings that taking 

gifts valued over $20 is prohibited.

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

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

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

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

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

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

perceived cases of fraud, waste, or abuse. Further, staff is provided with Whistleblower 

training, so they know how to protect themselves from repercussions related to reporting 

wrongdoing. Other EAC mandatory training includes Privacy Act and IT security training. 

Standards of conduct are laid out in EAC’s Office of Human Resources Handbook, available 

on the agency’s shared drive, and reviewed at New Employee Orientation. The manual 

specifies that the agency’s General Counsel serves as the Designated Agency Ethics Officer, 

who should be consulted on specific issues of concern. 

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

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

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

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

suspected fraud or allegations of fraud.

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

accounting and procurement service provider. Independent auditors recommendations are 

taken seriously and implemented timely, at times in conjunction with the service providers’ 

controls. EAC does not have identified material weaknesses in internal controls over operations 

in FY 2018. Any management override of controls would necessarily involve staff at two federal 

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

Management communicates the consequences of committing fraud in mandatory Ethics, 

Prohibited Practices and Whistleblower Protection, Information Technology Security, Privacy 

Act, and Privacy Rules of Behavior training. 
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III. OMB Circular A-123 with respect to leading practices for managing fraud risk

EAC management and its independent financial statement and Federal Information Security 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

audits and agency assistance to grantees on technical assistance and audit resolution. EAC 

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

between federal entities is laid out in the roles and responsibilities sections of their interagency 

agreements.

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

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

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

reimbursement before approving travel vouchers, generally entered into the travel system by 

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

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

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

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

temporarily for the purchase.

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

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

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

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

process includes confirmation of period of performance of the award, report type (annual or 

final), Dun & Bradstreet Number and Employer Identification Number. Total award, Required 

Match, and Program Incomes are reviewed for accuracy. The reports are reconciled against 
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prior year submission to analyze spending rates over time. Questions and errors are relayed 

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

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

on eac.gov.

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

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

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

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

reports are requested to provide banking information confirming payment with banking 

information. It should be noted that grantees and vendors contact the agency if a payment is 

not received timely, which could be an indicator of fraud, so misdirection of funds is considered 

low risk. Financial system controls prevent vendor overpayment.

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

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

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

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

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

IPERIA is not applicable in the annual Agency Financial Report.

Strategies, Procedures and Other Steps

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

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

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

Financial Disclosure reports annually. The reports are reviewed by the Ethics Officer for 

conflicts of interest. Further, Contracting Officer’s Representatives (about one-third of all fulltime staff) are required to take Ethics in Contracting training, which further reinforces the need 

to avoid conflicts of interest in procurements. Contracting Officer’s Representative can also 

take a free online course entitled Procurement Fraud Indicators.

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

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

review of roles and transaction amount limits for authorized staff.

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

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

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

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

EAC undergoes annual financial statement and Federal Information Security Management Act 

audits. EAC reviews grant audit findings and works with grantees pre- and post-audit. EAC 
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reviews financial transactions for error and potential fraud, and the financial service provider 

has staff accountants with CPAs who review financial transactions. Generally, the requestor of a 

transaction, his or her supervisor, and the EAC funds certifier sign off on transactions. The 

service providers obligate procurement funds. EAC analyzes its shared service provider’s regular 

audits throughout the year including purchase card payment timeliness, completeness of card 

logs, and accuracy of payments; Internet Payment Platform invoice post-payment audits of 

timeliness and accuracy, prompt pay reports; accounts payable delinquencies; and travel audits 

of compliance with the Federal Travel Regulation, attachment of required receipts to vouchers, 

and accuracy and timeliness of payment amounts.
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Annual Assurance Statement on Internal Control

November 15, 2018

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

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

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

and Budget (OMB) Circular A-123, Management's Responsibility for Enterprise Risk 

Management and Internal Control. Internal control is an integral component of EAC's 

management, providing reasonable assurance that the following objectives are being achieved: 

effectiveness and efficiency of operations, reliability of financial reporting, and compliance with 

applicable laws and regulations.

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

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

performance measures presented in its strategic plan, and on self-assessments. With respect to 

assessing internal control designed to ensure the reliability of financial reporting, EAC relied 

upon the evaluation of internal controls over financial reporting conducted by its independent 

auditors, on reports issued by the Inspector General, and on agency risk assessments and 

letters of assurance over the program offices, financial management functions (accounting, 

budget, payments and grants, and procurement), and administrative offices. Regarding internal 

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

conducted by its independent auditors and the Inspector General.

In FY 2018, the auditors found no material weaknesses or significant deficiencies in internal 

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

noncompliance with laws and regulations.

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

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

Integrity Act. 

 Thomas Hicks

 Chairman
 Section II

 Financial Section
 

 

 

 

 

 

OFFICE OF THE INSPECTOR GENERAL 

November 14, 2018 

Thomas Hicks, Chairman 

U.S. Election Assistance Commission 

1335 East-West Highway, Suite 4300 

Silver Spring, MD 20910 

Re: Audit of the U.S. Election Assistance Commission’s Financial Statements for Fiscal Year 2018 

(Assignment No. I-PA-EAC-01-18) 

Introduction 

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

General for the U. S. Election Assistance Commission (EAC) or an independent external auditor, as 

determined by the Inspector General, to audit EAC’s financial statements. The independent public 

accounting firm of Brown & Company CPAs, PLLC (Brown & Company) performed the audit of the 

EAC’s financial statements under contract with the Office of Inspector General (OIG). The contract 

required the audit to be performed in accordance with auditing standards generally accepted in the 

United States of America; Government Auditing Standards issued by the Comptroller General of the 

United States; Office of Management and Budget (OMB) Bulletin 19-01, Audit Requirements for 

Federal Financial Statements; and the Financial Audit Manual issued jointly by the Council of the 

Inspectors General on Integrity and Efficiency (CIGIE) and the Government Accountability Office. 

Results of Audit 

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

financial position of EAC as of September 30, 2018 and 2017, and its net costs, changes in net 

position, budgetary resources, and custodial activities for the years then ended, in accordance with 

accounting principles generally accepted in the United States of America. Within the limitations on 

the scope of their testing of controls and compliance as described in the report, Brown & Company 

also reported no material weaknesses in control and no instances of noncompliance with laws, 

regulations, or significant provisions of contracts or grant agreements. 

Telephone: 301-734-3104 Fax: 301-734-3115 Toll free: 1- 866-552-0004 

EAC Inspector General Website Link, E-mail: eacoig@eac.gov 
 

 

 

 

 

 

Evaluation of Brown & Company’s Audit Performance 

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

management requirements, the OIG: 

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

• Evaluated the qualifications and independence of the auditors; 

• Monitored the progress of the audit at key points; 

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

recommendations; 

• Reviewed Brown & Company’s draft audit report; 

• Performed other procedures we deemed necessary; and 

• Coordinated issuance of the audit report. 

Brown & Company is responsible for the attached auditor’s report and the conclusions expressed in 

the report. Our review of the contractor’s performance was not an audit of the financial 

statements, internal controls, or compliance, and was not sufficient to conclude on any of those 

subjects of the audit. Consequently, the OIG does not express any opinion on EAC’s financial 

statements or conclusions on the effectiveness of internal control or compliance with laws, 

regulations, or provisions of contracts or grant agreements. 

Report Distribution 

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

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

been implemented. Therefore, we will report the issuance of this audit report in our next 

semiannual report to Congress. The distribution of this report is not limited and copies are available 

for public inspection on the EAC OIG website (https://www.eac.gov/inspector-general/) and on 

CIGIE’s oversight web page (https://www.oversight.gov/). 

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

OIG during the audit. If you, or your staff, has any questions, please contact me at (301) 734-3104. 

X 

Patricia L. Layfield, CPA, CIA, CISA 

Inspector General 

Signed by: PATRICIA LAYFIELD 

Attachment 

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ELECTION ASSISTANCE COMMISSION 

INDEPENDENT AUDITOR’S REPORT

AND 

FINANCIAL STATEMENTS 

FOR THE YEAR ENDED SEPTEMBER 30, 2018 AND 2017 

TABLE OF CONTENTS 

INDEPENDENT AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS............ 1 

BALANCE SHEET ............................................................................................................... 6 

STATEMENT OF NET COST ............................................................................................. 7 

STATEMENT OF CHANGES IN NET POSITION............................................................. 8 

STATEMENT OF BUDGETARY RESOURCES................................................................ 9 

NOTES TO THE FINANCIAL STATEMENTS .................................................................. 10 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INDEPENDENT AUDITOR’S REPORT

U.S. Election Assistance Commission 

Washington, D.C. 

In our audits of the fiscal years 2018 and 2017 financial statements of the U.S. Election Assistance 

Commission (EAC), we found 

 EAC’s financial statements as of and for the fiscal years ended September 30, 2018, and 

2017, are presented fairly, in all material respects, in accordance with U.S. generally accepted 

accounting principles; 

 no material weaknesses in internal control over financial reporting based on the limited 

procedures we performed; and 

 no reportable noncompliance for fiscal year 2018 with provisions of applicable laws, 

regulations, contracts, and grant agreements we tested. 

The following sections discuss in more detail (1) our report on the financial statements, which includes 

required supplementary information (RSI) and otherinformation included withthefinancial statements; 

(2) our report on internal control over financial reporting; and (3) our report on compliance with laws, 

regulations, contracts, and grant agreements. 

Report on the Financial Statements 

In accordance with the provisions of Accountability of Tax Dollars Act of 2002 (ATDA) (Pub. L. No. 

107-289), we have audited EAC’s financial statements. EAC’s financial statements comprise the 

balance sheets as of September 30, 2018, and 2017; the related statements of net cost, changes in net 

position, and budgetary resources for the fiscal years then ended; and the related notes to the financial 

statements. 

We conducted our audits in accordance with U.S. generally accepted government auditing standards. We 

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

opinion. 

Management’sResponsibility 

EAC’s management is responsible for (1) the preparation and fair presentation of these financial 

statements in accordance with U.S. generally accepted accounting principles; (2) preparing, measuring, 

and presenting the RSI in accordance with U.S. generally accepted accounting principles; (3) preparing 

and presenting other information included in documents containing the audited financial statements and 

auditor’s report, and ensuring the consistency of that information with the audited financial statements 

and the RSI; and (4) maintaining effective internal control over financial reporting, including the design, 

implementation, and maintenance of internal control relevant to the preparation and fair presentation of 

financial statements that are free from material misstatement, whether due to fraud or error. 

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Auditor’s Responsibility 

Our responsibility is to express an opinion on these financial statements based on our audits. U.S. 

generally accepted government auditing standards require that we plan and perform the audit to obtain 

reasonable assurance about whether the financial statements are free from material misstatement. We are 

also responsible for applying certain limited procedures to RSI and other information included with the 

financial statements. 

An audit of financial statements 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 auditor’s 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 of financial statements also involves evaluating the appropriateness of the accounting policies used 

and the reasonableness of significant accounting estimates made by management, as well as evaluating 

the overall presentation of the financial statements. Our audits also included performing such other 

procedures as we considered necessary in the circumstances. 

Opinion on Financial Statements 

In our opinion, EAC’s financial statements present fairly, in all material respects, EAC’s financial 

position as of September 30, 2018, and 2017, and its net cost of operations, changes in net position, and 

budgetary resources for the fiscal years then ended in accordance with U.S. generally accepted accounting 

principles. 

Other Matters 

Required Supplementary Information 

U.S. generally accepted accounting principles issued by the Federal Accounting Standards 

Advisory Board (FASAB) require that the RSI be presented to supplement the financial 

statements. Although the RSI is not a part of the financial statements, FASAB considers this 

information to be an essential part of financial reporting for placing the financial statements 

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

procedures to the RSI in accordance with U.S. generally accepted government auditing 

standards, which consisted of inquiries of management about the methods of preparing the 

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

auditor's inquiries, the financial statements, and other knowledge we obtained during the audit 

of the financial statements, in order to report omissions or material departures from FASAB 

guidelines, if any, identified by these limited procedures. We did not audit and we do not 

express an opinion or provide any assurance on the RSI because the limited procedures we 

applied do not provide sufficient evidence to express an opinion or provide any assurance. 

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Other Information 

EAC’s other information contains a wide range of information, some of which is not directly 

related to the financial statements. This information is presented for purposes of additional 

analysis and is not a required part of the financial statements or the RSI. We read the other 

information included with the financial statements in order to identify material 

inconsistencies, if any, with the audited financial statements. Our audit was conducted for the 

purpose of forming an opinion on EAC’s financial statements. We did not audit and do not 

express an opinion or provide any assurance on the other information. 

Report on Internal Control over Financial Reporting 

In connection with our audits of EAC’s financial statements, we considered EAC’s internal control 

over financial reporting, consistent with our auditor's responsibility discussed below. We performed 

our procedures related to EAC’s internal control over financial reporting in accordance with U.S. 

generally accepted government auditing standards. 

Management’s Responsibility

EAC’s management is responsible for maintaining effective internal control over financial reporting, 

including the design, implementation, and maintenance of internal control relevant to the preparation 

and fair presentation of financial statements that are free from material misstatement, whether due to 

fraud or error. 

Auditor’s Responsibility 

In planning and performing our audit of EAC’s financial statements as of and for the year ended 

September 30, 2018, in accordance with U.S. generally accepted government auditing standards, we 

considered the EAC’s internal control over financial reporting as a basis for designing audit 

procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the 

financial statements, but not for the purpose of expressing an opinion on the effectiveness of EAC’s

internal control over financial reporting. Accordingly, we do not express an opinion on EAC’s

internal control over financial reporting. We are required to report all deficiencies that are considered 

to be significant deficiencies or material weaknesses. We did not consider all internal controls 

relevant to operating objectives, such as those controls relevant to preparing performance 

information and ensuring efficient operations. 

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

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

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

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

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

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

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

governance. 

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Definition and Inherent Limitations of Internal Control over Financial Reporting 

An entity’s internal control over financial reporting is a process effected by those charged with 

governance, management, and other personnel, the objectives of which are to provide reasonable 

assurance that (1) transactions are properly recorded, processed, and summarized to permit the 

preparation of financial statements in accordance with U.S. generally accepted accounting 

principles, and assets are safeguarded against loss from unauthorized acquisition, use, or disposition, 

and (2) transactions are executed in accordance with provisions of applicable laws, including those 

governing the use of budget authority, regulations, contracts, and grant agreements, noncompliance 

with which could have a material effect on the financial statements. 

Because of its inherent limitations, internal control over financial reporting may not prevent, or 

detect and correct, misstatements due to fraud or error. 

Results of Our Consideration of Internal Control over Financial Reporting 

Our consideration of internal control was for the limited purpose described above, and was not 

designed to identify all deficiencies in internal control that might be material weaknesses and 

significant deficiencies or to express an opinion on the effectiveness of EAC’s internal control over 

financial reporting. Given these limitations, during our audit, we did not identify any deficiencies in 

internal control over financial reporting that we consider to be material weaknesses. However, 

material weaknesses may exist that have not been identified. 

We also identified other deficiencies in EAC’s internal control over financial reporting that we do

not consider to be material weaknesses or significant deficiencies. Nonetheless, these deficiencies 

warrant EAC management’s attention. We have communicated these matters to EAC management 

and we will report on them separately in a management letter. 

Intended Purpose of Report on Internal Control over Financial Reporting 

The purpose of this report is solely to describe the scope of our consideration of EAC’s internal

control over financial reporting and the results of our procedures, and not to provide an opinion on 

the effectiveness of the EAC’s internal control over financial reporting. This report is an integral part 

of an audit performed in accordance with U.S. generally accepted government auditing standards in 

considering internal control over financial reporting. Accordingly, this report on internal control 

over financial reporting is not suitable for any other purpose. 

Report on Compliance with Laws, Regulations, Contracts, and Grant Agreements 

In connection with our audits of EAC’s financial statements, we tested compliance with selected 

provisions of applicable laws, regulations, contracts, and grant agreements consistent with our 

auditor’s responsibility discussed below. We caution that noncompliance may occur and not be 

detected by these tests. We performed our tests of compliance in accordance with U.S. generally 

accepted government auditing standards. 

Management’s Responsibility

EAC’s management is responsible for complying with laws, regulations, contracts, and grant 

agreements applicable to EAC. 

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Auditor’s Responsibility 

Our responsibility is to test compliance with selected provisions of applicable laws, regulations, 

contracts, and grant agreements applicable to EAC that have a direct effect on the determination of 

material amounts and disclosures in EAC’s financial statements, and perform certain other limited 

procedures. Accordingly, we did not test compliance with all laws, regulations, contracts, and grant 

agreements applicable to EAC. 

Results of Our Tests for Compliance with Laws, Regulations, Contracts, and Grant Agreements 

Our tests for compliance with selected provisions of applicable laws, regulations, contracts, and grant 

agreements disclosed no instances of noncompliance for fiscal year 2018 that would be reportable 

under U.S. generally accepted government auditing standards. However, the objective of our tests 

was not to provide an opinion on compliance with laws, regulations, contracts, and grant agreements 

applicable to EAC. Accordingly, we do not express such an opinion. 

Intended Purpose of Report on Compliance with Laws, Regulations, Contracts, and Grant 

Agreements 

The purpose of this report is solely to describe the scope of our testing of compliance with selected 

provisions of applicable laws, regulations, contracts, and grant agreements, and the results of that 

testing, and not to provide an opinion on compliance. This report is an integral part of an audit 

performed in accordance with U.S. generally accepted government auditing standards in considering 

compliance. Accordingly, this report on compliance with laws, regulations, contracts, and grant 

agreements is not suitable for any other purpose. 

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

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

parties. 

Largo, Maryland 

November 13, 2018 

5 
 

2018 2017

Assets:

Intragovernmental

Fund Balance With Treasury (Note 2) $ 11,882,152 $ 12,845,226

Other (Note 4) 652,925 840,898

Total Intragovernmental 12,535,077 13,686,124

Accounts Receivable, Net (Note 3) 1,358 8,171

Property, Equipment, and Software, Net (Note 5) 306,689 256,087

Total Assets $ 12,843,124 $ 13,950,382

Stewardship PP&E (Note X)

Liabilities:

Intragovernmental

Accounts Payable $ 30,019 $ 101,738

Other (Note 7) 34,806 37,295

Total Intragovernmental 64,825 139,033

Accounts Payable 224,076 325,055

Other (Note 7) 389,449 388,216

Total Liabilities (Note 6) $ 678,350 $ 852,304

Commitments and Contingencies (Note X)

Net Position:

Unexpended Appropriations - Other Funds $ 12,124,765 $ 13,066,800

Cumulative Results of Operations - Other Funds 40,009 31,278

Total Net Position $ 12,164,774 $ 13,098,078

Total Liabilities and Net Position $ 12,843,124 $ 13,950,382

Election Assistance Commission

BALANCE SHEET

AS OF SEPTEMBER 30, 2018 AND 2017

(In Dollars)

The accompanying notes are an integral part of these financial statements. 

6 
 

2018 2017

Program Costs:

Program A : Communication and Clearinghouse

Gross Costs $ 1,681,625 $ 1,774,387

Net Program Costs $ 1,681,625 $ 1,774,387

Program B : Fund and Oversee

Gross Costs $ 2,312,486 $ 4,030,104

Net Program Costs $ 2,312,486 $ 4,030,104

Program C : Research, Policy, and Programs

Gross Costs $ 2,889,725 $ 810,650

Net Program Costs $ 2,889,725 $ 810,650

Program D: Testing and Certifications

Gross Costs $ 381,763,206 $ 3,072,956

Net Program Costs $ 381,763,206 $ 3,072,956

Net Cost of Operations (Note 9) $ 388,647,042 $ 9,688,097

Election Assistance Commission

STATEMENT OF NET COST

FOR THE YEARS ENDED SEPTEMBER 30, 2018 AND 2017

(In Dollars)

The accompanying notes are an integral part of these financial statements. 

7 
2018 2017

Unexpended Appropriations:

Beginning Balances $ 13,066,800 $ 15,654,782

Adjustments

Beginning Balances, as Adjusted 13,066,800 15,654,782

Budgetary Financing Sources:

Appropriations Received 390,100,000 9,600,000

Appropriations Transferred In/Out (1,500,000) (1,400,000)

Other Adjustments (1,096,406) (1,315,360)

Appropriations Used (388,445,629) (9,472,623)

Total Budgetary Financing Sources (942,035) (2,587,983)

Total Unexpended Appropriations $ 12,124,765 $ 13,066,799

Cumulative Results of Operations:

Beginning Balances $ 31,278 $ 112,453

Adjustments

Beginning Balances, as Adjusted 31,278 112,453

Budgetary Financing Sources:

Appropriations Used 388,445,629 9,472,623

Other Financing Sources (Non-Exchange):

Imputed Financing Sources 210,144 134,299

Total Financing Sources 388,655,773 9,606,922

Net Cost of Operations (388,647,042) (9,688,097)

Net Change 8,731 (81,175)

Cumulative Results of Operations $ 40,009 $ 31,278

Net Position $ 12,164,774 $ 13,098,077

Election Assistance Commission

STATEMENT OF CHANGES IN NET POSITION

FOR THE YEARS ENDED SEPTEMBER 30, 2018 AND 2017

(In Dollars)

8 
2018 2017

Budgetary Resources:

Unobligated balance from prior year budget authority, net $ 7,921,422 $ 9,084,503

Appropriations 388,600,000 8,200,000

Total Budgetary Resources $ 396,521,422 $ 17,284,503

Memorandum (non-add) Entries:

Net adjustments to unobligated balance brought forward, Oct. 1 $ (5,421,601) $ (7,644,539)

Status of Budgetary Resources:

New obligations and upward adjustments (total) (Note 11) $ 388,256,900 $ 8,513,756

Unobligated balance, end of year:

 Apportioned, unexpired account 1,776,917 1,036,881

 Unapportioned, unexpired accounts 1,557,795 1,968,262

Unexpired unobligated balance, end of year 3,334,712 3,005,143

Expired unobligated balance, end of year 4,929,810 5,765,604

Unobligated balance, end of year (total) 8,264,522 8,770,748

Total Budgetary Resources $ 396,521,422 $ 17,284,503

Outlays, net:

Outlays, net, (total) 388,466,668 9,455,013

Agency outlays, net $ 388,466,668 $ 9,455,013

Election Assistance Commission

STATEMENT OF BUDGETARY RESOURCES

FOR THE YEARS ENDED SEPTEMBER 30, 2018 AND 2017

(In Dollars)

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Election Assistance Commission 

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. 

The four EAC commissioners are appointed by 

the president and confirmed by the United 

States Senate. EAC currently has two 

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, 

Election Security Grants General Fund 

accounts. 

EAC has rights and ownership of all assets 

reported in these financial statements. EAC 

does not possess any non-entity assets. 

B. Basis of Presentation 

The financial statements have been prepared to 

report the financial position and results of 

operations of EAC. The Balance Sheet 

presents the financial position of the agency. 

The Statement of Net Cost presents the 

agency’s operating results; the Statement of

Changes in Net Position displays the changes 

in the agency’s equity accounts. The Statement

of Budgetary Resources presents the sources, 

status, and uses of the agency’s resources and

follows the rules for the Budget of the United 

States Government. 

The statements are a requirement of the Chief 

Financial Officers Act of 1990, the 

Government Management Reform Act of 1994 

and the Accountability of Tax Dollars Act of 

2002. They have been prepared from, and are 

fully supported by, the books and records of 

EAC in accordance with the hierarchy of 

accounting principles generally accepted in the 

United States of America, standards issued by 

the Federal Accounting Standards Advisory 

Board (FASAB), Office of Management and 

Budget (OMB) Circular A-136, Financial 

Reporting Requirements, as amended, and 

EAC accounting policies which are 

summarized in this note. These statements, 

with the exception of the Statement of 

Budgetary Resources, are different from 

financial management reports, which are also 

prepared pursuant to OMB directives that are 

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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.

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 non11 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 and 

received and for services rendered except for 

employees. Accrued payroll and benefits 

represent payroll costs earned by employees 

during the fiscal year which are not paid until 

the next fiscal year. EAC also accrues 

liabilities for Section 251 grants, research and 

development grants for such items as 

improving voting technology and processes for 

injured military personnel, and logic and 

accuracy testing grants. See the required 

supplemental information for a more detailed 

explanation of the grants. 

Liabilities not covered by budgetary resources 

are liabilities that are not funded by any 

current appropriation or other funding source. 

These liabilities consist of accrued annual 

leave. 

I. Annual, Sick, and Other Leave 

Annual leave is accrued as it is earned, and the 

accrual is reduced as leave is taken. The 

balance in the accrued leave account is 

adjusted to reflect current pay rates. Liabilities 

associated with other types of vested leave, 

including compensatory, restored leave, and 

sick leave in certain circumstances, are accrued 

at year-end, based on latest pay rates and 

unused hours of leave. Funding will be 

obtained from future financing sources to the 

extent that current or prior year appropriations 

are not available to fund annual and other 

types of vested leave earned but not taken. 

Nonvested leave is expensed when used. Any 

liability for sick leave that is accrued but not 

taken by a Civil Service Retirement System 

(CSRS)-covered employee is transferred to the 

Office of Personnel Management (OPM) upon 

the retirement of that individual. Credit is 

given for sick leave balances in the 

computation of annuities upon the retirement 

of Federal Employees Retirement System 

(FERS)-covered employees effective at 50% 

beginning FY 2010 and 100% in 2015. 

J. Accrued and Actuarial Workers’

Compensation 

The Federal Employees' Compensation Act 

(FECA) administered by the U.S. Department 

of Labor (DOL) addresses all claims brought 

by the EAC employees for on-the-job injuries. 

The DOL bills each agency annually as its 

claims are paid, but payment of these bills is 

deferred for two years to allow for funding 

through the budget process. Similarly, 

employees that the EAC terminates without 

cause may receive unemployment 

compensation benefits under the 

unemployment insurance program also 

administered by the DOL, which bills each 

agency quarterly for paid claims. Future 

appropriations will be used for the 

reimbursement to DOL. 

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K. Retirement Plans 

EAC employees participate in either the CSRS 

or the FERS. The employees who participate 

in CSRS are beneficiaries of EAC matching 

contribution, equal to seven percent of pay, 

distributed to their annuity account in the Civil 

Service Retirement and Disability Fund. 

Prior to December 31, 1983, all employees 

were covered under the CSRS program. From 

January 1, 1984 through December 31, 1986, 

employees had the option of remaining under 

CSRS or joining FERS and Social Security. 

Employees hired as of January 1, 1987 are 

automatically covered by the FERS program. 

Both CSRS and FERS employees may 

participate in the federal Thrift Savings Plan 

(TSP). FERS employees receive an automatic 

agency contribution equal to one percent of 

pay and EAC matches any employee 

contribution up to an additional four percent of 

pay. For FERS participants, EAC also 

contributes the employer’s matching share of 

Social Security. 

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 2017 and 2016 to the 

extent directed by accounting standards. 

13 
 

 

 

 

 

 

 

 

 

 

 

 

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. 

14 
 

 

 

 

 

 

 

 

 

 

 

NOTE 2. FUND BALANCE WITH TREASURY 

Fund balance with Treasury account balances as of September 30, 2018 and 2017, were as 

follows: 

2018 2017

Status of Fund Balance with Treasury:

Unobligated Balance

 Available $ 1,776,917 $ 1,036,881 

 Unavailable 6,487,605 7,733,866 

Obligated Balance Not Yet Disbursed 3,617,630 4,074,479 

Total $ 11,882,152 $ 12,845,226 

No discrepancies exist between the Fund Balance reflected on the Balance Sheet and the balances 

in the Treasury accounts. 

The available unobligated fund balances represent the current-period amount available for 

obligation or commitment. 

The unavailable unobligated fund balances represent the amount of appropriations for which the 

period of availability for obligation has expired. These balances are available for upward 

adjustments of obligations incurred only during the period for which the appropriation was 

available for obligation or for paying claims attributable to the appropriations. 

The obligated balance not yet disbursed includes accounts payable, accrued expenses, and 

undelivered orders that have reduced unexpended appropriations but have not yet decreased the 

fund balance on hand (see also Note 12). 

NOTE 3. ACCOUNTS RECEIVABLE 

Accounts receivable balances as of September 30, 2018 and 2017, were as follows: 

2018 2017

Intragovernmental

Total Intragovernmental Accounts Receivable $ - $ -

With the Public

Accounts Receivable $ 1,358 $ 8,171

Total Public Accounts Receivable $ 1,358 $ 8,171

Total Accounts Receivable $ 1,358 $ 8,171

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, 2018 and 2017. 

15 
 

 

 

 

 

 

 

NOTE 4. ADVANCES AND PREPAYMENTS 

Advances and Prepayments balances as of September 30, 2018 and 2017, were as follows: 

2018 2017

Intragovernmental

Advances and Prepayments $ 652,925 $ 840,898

Other Assets - -

Total Intragovernmental OtherAssets $ 652,925 $ 840,898

NOTE 5. PROPERTY, EQUIPMENT, AND SOFTWARE 

Schedule of Property, Equipment, and Software as of September 30, 2018 

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Building $ - $ - $ -

Leasehold Improvements 1,205,830 1,205,830 -

Furniture & Equipment 1,149,097 922,299 226,798

Software 172,721 172,721 -

Construction-in-Progress - N/A -

Software-in-Development 79,891 N/A 79,891

Total $ 2,607,539 $ 2,300,850 $ 306,689

Schedule of Property, Equipment, and Software as of September 30, 2017 

Major Class

Acquisition 

Cost

Accumulated 

Amortization/

Depreciation

Net Book 

Value

Building $ - $ - $ -

Leasehold Improvements 1,205,830 1,193,068 12,762

Furniture & Equipment 1,013,741 850,306 163,435

Software 172,721 172,721 -

Construction-in-Progress - N/A -

Software-in-Development 79,890 N/A 79,890

Total $ 2,472,182 $ 2,216,095 $ 256,087

Depreciation expense was $84,754.72 and $174,004.48 for the twelve months ending September 

30, 2018 and 2017, respectively. 

NOTE 6. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES 

The liabilities for EAC as of September 30, 2018 and 2017, include liabilities not covered by 

budgetary resources. Congressional action is needed before budgetary resources can be provided. 

Although future appropriations to fund these liabilities are likely and anticipated, it is not certain 

that appropriations will be enacted to fund these liabilities. 

16 
 

 

 

 

 

 

 

 

2018 2017

Unfunded Leave 268,038 232,905

Total Liabilities Not Covered by Budgetary Resources $ 268,038 $ 232,905

Total Liabilities Covered by Budgetary Resources 410,312 619,399

Total Liabilities $ 678,350 $ 852,304

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, 2018 were as follows: 

Current Non Current Total

Intragovernmental

FECA Liability $ 6,450 $ 6,450

Payroll Taxes Payable 28,356 - 28,356

Total Intragovernmental Other Liabilities $ 34,806 $ - $ 34,806

With the Public

 Payroll Taxes Payable $ 9,413 $ - $ 9,413

 Accrued Funded Payroll and Leave 111,998 - 111,998

 Unfunded Leave 268,038 - 268,038

Total Public Other Liabilities $ 389,449 $ - $ 389,449

Other liabilities account balances as of September 30, 2017 were as follows: 

Current Non Current Total

Intragovernmental

Payroll Taxes Payable 37,295 - 37,295

Total Intragovernmental Other Liabilities $ 37,295 $ - $ 37,295

With the Public

 Payroll Taxes Payable $ 6,185 $ 6,185

 Accrued Funded Payroll and Leave 149,051 - 149,051

 Unfunded Leave 232,905 - 232,905

 Custodial Liability 75 75

Total Public Other Liabilities $ 388,216 $ - $ 388,216

17 
 

 

 

 

 

 

 

 

 

 

 

 

 

NOTE 8. LEASES 

EAC has no capital leases. EAC relocated from its headquarters office located at 1201 New York 

Avenue NW, Suite 300, Washington, DC, on November 1, 2013. EAC also ended the lease for 

additional space at 1225 New York Avenue NW, Washington, DC, at the same time. EAC 

entered into a new lease for its headquarters office located at 1335 East-West Highway, Silver 

Spring, MD, which expires on or around November 1, 2018. 

In November 2013, the EAC signed a five year lease. Under the agreement, the last full year of 

the lease started Oct 1,2017 to September 30, 2018, Also, the agreement included one month, Oct 

1, 2018 to October 31, 2018. The new 10 year lease begins on November 1st. The first year of 

the new lease is from November 1, 2018 to September 30, 2019. 

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

options. 

Scheduled of Future Lease Payments 

Fiscal Year Office Space

2019 $ 257,726 

2020 261,113 

2021 262,687 

2022 264,294 

2023 265,934 

Thereafter 1,378,425 

Total Future Payments $ 2,690,179 

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: 

2018 2017

Communications and Clearinghouse

 Intragovernmental Costs $ 12,622 $ 411,906

 Public Costs 1,669,003 1,362,481

 Total Costs 1,681,625 1,774,387

Testing and Certifications

 Intragovernmental Costs $ 2,865,347 $ 935,547

 Public Costs 378,897,859 3,094,557

 Total Costs 381,763,206 4,030,104

Research, Policy, and Programs

 Intragovernmental Costs $ 21,541 $ 188,184

 Public Costs 2,868,184 622,466

 Total Costs 2,889,725 810,650

Fund and Oversee

 Intragovernmental Costs $ 17,357 $ 713,355

 Public Costs 2,295,129 2,359,600

 Total Costs 2,312,486 3,072,955

Total Intragovernmental costs 2,916,866 2,248,992

Total Public costs 385,730,176 7,439,105

Total Net Cost $ 388,647,042 $ 9,688,097

18 
 

 

 

 

 

 

 

 

 

 

 

NOTE 10. BUDGETARY RESOURCE COMPARISONS TO THE BUDGET OF THE 

UNITED STATES GOVERNMENT 

SFFAS No. 7, Accounting for Revenue and Other Financing Sources and Concepts for 

Reconciling Budgetary and Financial Accounting, calls for explanation of material differences 

between amounts reported in the Statement of Budgetary Resources and the actual balances 

published in the Budget of the U.S. Government (the President’s Budget). The FY 2018 

President’s Budget, with actual amounts for FY 2017, has been reconciled to the Statement of 

Budgetary Resources. The FY 2019 President’s Budget, with actual amounts for FY 2018, will 

not be published until February 2019. 

The budget that includes the fiscal year 2017 actual execution information is as follows: 

Distributed

Budgetary Obligations Offsetting Net

FY 2017 Resources Incurred Receipts Outlays

Statement of Budgetary Resources $17 $9 $0 $9

Spending Authority from Offsetting

 Collections $0

Unobligated Balance Not Available $8

Difference - Due to Rounding $0 ($1) $0 ($2)

Budget of the U.S. Government $ 9 8$ -$ 7$ 

NOTE 11. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED 

Obligations incurred and reported in the Statement of Budgetary Resources in 2018 and 2017 

consisted of the following: 

2018 2017

Direct Obligations, Category B 388,256,900 8,513,756

Total Obligations Incurred $ 388,256,900 $ 8,513,756

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, 2018 and 2017, budgetary resources obligated for 

undelivered orders are as follows: 

FY 2018 Federal Non-Federal Total

Paid Undelivered Orders $ 652,925 $ - $ 652,925

Unpaid Undelivered Orders 146,529 3,060,789 3,207,318

Total Undelivered Orders $ 799,454 $ 3,060,789 $ 3,860,243

FY 2017 Federal Non-Federal Total

Paid Undelivered Orders $ 840,896 $ - $ 840,896

Unpaid Undelivered Orders (247,473) 3,702,629 3,455,156

Total Undelivered Orders $ 593,423 $ 3,702,629 $ 4,296,052

19 
 

 

 

 

 

 

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. 

Intragovernmental With the Public Total 

Net Operating Cost (SNC) 388,647,042 - 388,647,042

Components of Net Operating Cost Not Part of the Budgetary Outlays 

Property, plant, and equipment depreciation (84,755) (84,755)

Increase/(decrease) in assets:

Accounts receivable - (6,737) (6,737)

Other assets (187,972) - (187,972)

(Increase)/decrease in liabilities not affecting Budget Outlays:

Accounts payable 71,718 100,979 172,697

Salaries and benefits 2,489 33,825 36,314

Other liabilities - (35,057) (35,057)

Other financing sources:

Federal employee retirement benefit costs (210,145) (210,145)

Total Components of Net Operating Cost Not Part of the Budget Outlays (323,910) 8,255 (315,655)

Components of the Budget Outlays That Are Not Part of Net Operating Cost

Acquisition of capital assets - 135,356 135,356

Other 79.00 (154) (75)

Total Components of the Budget Outlays That Are Not Part of Net Operating Cost 79.00 135,202 135,281

Other Temporary Timing Differences - - -

Net Outlays (Calculated Total) 388,323,211 143,457 388,466,668

Related Amounts on the Statement of Budgetary Resources

Outlays, net, (total) (SBR 4190) 388,466,668

Distributed offsetting receipts (SBR 4200) -

Outlays, Net (SBR 4210) 388,466,668

Election Assistance Commission

RECONCILIATION OF NET COST AND BUDGET OUTLAYS

FOR THE YEAR ENDED SEPTEMBER 30, 2018

(In Dollars)

NOTE 14. REQUIREMENT PAYMENTS AND GRANT PROGRAMS 

The largest of the EAC grant programs is the Help American Vote Act (HAVA) Section 251 

Requirements Payments to the states to help them meet the Title III requirements of HAVA. 

EAC’s discretionary grants have been completed and closed. Also, the Consolidated 

Appropriations Act of 2018 was signed into law, making the EAC responsible for distributing 

$380 million of Election Security Grants to states to improve the administration of federal 

elections 

2018 2017

FY 2010 Section 251 Requirements Payments $ 1,929,468

FY 2011 Section 251 Requirements Payments 37,968

Requirements Payments (60,652)

Election Security Grants 380,000,000

Net Cost of Operations $ 380,000,000 $ 1,906,784

During FY 2017, EAC received a grant refund of $60,652. There were no offsetting requirement 

payments during that period. 

20 
 

 

 

NOTE 15. CUSTODIAL ACTIVITY 

2018 2017

Revenue Activity:

Sources of Cash Collections:

Miscellaneous 79 -

Total Cash Collections (Note X) 79 -

Accrual Adjustments (75) 75

Total Custodial Revenue 4 75

Disposition of Collections:

Transferred to Others (by Recipient) 154 (75)

Increase/(Decrease) in Amounts Yet to be Transferred (75) 75

Retained by the Reporting Entity (75) 75

Total Disposition of Collections 4 75

Net Custodial Activity - -

Election Assistance Commission

STATEMENT OF CUSTODIAL ACTIVITY

FOR THE YEARS ENDED SEPTEMBER 30, 2018 AND 2017

(In Dollars)

A cash collection for an employee in the amount of $75 ($15.36 original debt plus $59.64 in fees 

and interest) was not reported for debt collection in the timeframe prescribed by the Debt 

Collection Improvement Act. The collection was deducted from the employee’s final paycheck.

21 
II.D. REQUIRED SUPPLEMENTARY STEWARDSHIP INFORMATION (UNAUDITED)

Non-Federal Physical Property

Stewardship investments are substantial investments made by the Federal Government for the 

benefit of the nation, but are not physical assets owned by the Federal Government. When 

incurred, they are treated as expenses in determining the net cost of operations. However, these 

items merit special treatment so that users of Federal financial reports know the extent of 

investments that are made for long-term benefit. Such investments are measured in terms of 

expenses incurred for non-Federal physical property, human capital, and research and 

development. 

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

need for states to invest in their election infrastructure. A major provision of HAVA, Title III,

Uniform and Nondiscriminatory Election Technology and Administration Requirements, sets forth 

requirements for each voting system used in an election for Federal office. 

The following chart shows expenditures using Federal HAVA funds for voting and voting-related 

equipment, as well as applied voting research by states and other agency recipients of grants and 

payments funds. Amounts are reported in the fiscal year proceeding the year the expense was 

incurred.

Section 102 Funds. Section 102 funds were disbursed to states for the primary purpose of 

replacing punch card or lever voting machines. As such, section 102 funds were used to purchase 

physical property.

Section 251 Funds. HAVA Section 251 Requirements Payments are used to meet the 

requirements of Title III and improve the quality of Federal elections. As such, Requirements 

Payments have been used in part to purchase physical property, and to provide funds to the 

states to carry out other activities to improve the administration of Federal elections. 

HAVA Security Grants. Congress signed the Consolidated Appropriations Act of 2018 into law. 

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

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Section 

102 Funds $ 19,905,709 $ 36,838,905

$ 

(163,130) $90,122 $137,401 

$ 

(267,813)

$ 

(10,769)

$ 

0 

 

$(60,652.18) 0 

Section 

251 Funds 262,018,224 143,247,989 104,356,159 40,410,437 43,417,090 168,169,476 75,586,153 110,248,566 72,618,422 0

HAVA 

Security 

Grants 380,000,000

Total

 

$281,923,933 

180,086,894

 

$104,193,029

 

$40,500,55

9

 

$43,554,49

1 $167,901,663

 

$75,575,38

4 $110,248,566

 

$72,557,770

 

$380,000,000
elections for Federal office, including to enhance technology and make certain election security 

improvements. 

Research and Development

EAC had two research and development initiatives completed in FY 2015. The initiatives provided 

funds to support the search for new or improved election voting technology that increases the 

accessibility and accuracy of voting for all citizens. Costs incurred on these initiatives are included 

in the calculation of net costs.

Accessible Voting Technology Initiative. EAC awarded $7.5 million in grants for three 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. Code 15441). The initiative supported research and development activities to increase the 

accessibility of new, existing, and emerging technological solutions in areas such as assistive 

technologies, interoperability, and design of voting systems. One of the grants provided data on 

accommodations and assistance needed for recently-injured military personnel to participate in 

Federal elections. The initiative resulted in over 45 research and development proposals.

Pre-Election Logic and Accuracy and Post-Election Audit Grant Program. EAC awarded $1.4 

million in grant funds to develop and document processes and best practices for coordinating 

quality and cost-effective voting system pre-election logic and accuracy testing, and post-election 

audits. Funds supported the research, development, documentation, and dissemination of a 

range of procedures and processes used in managing and conducting high quality Logic and 

Accuracy testing and post-election audit activities by type of voting method, vendor specific 

equipment, jurisdiction size, and other ways.

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Accessible Voting 

Technology Initiative $ 270,011 $ 1,630,476 $ 2,809,602 $ 2,429,159 $ - $ (6,605) $ 0 $ 0 

Logic and Accuracy - 275,040 485,600 236,499 (17,638) (1,520) 0 0

Total $ 270,011 $1,905,516 $3,295,202 $2,665,658 $(17,638) $ (8,125) $ 0 $ 0
 Section III

 Other Accompanying Information
Telephone: 301-734-3104 Fax: 301-734-3115 Toll free: 1- 866-552-0004

EAC Inspector General Website Link, E-mail: eacoig@eac.gov

OFFICE OF THE INSPECTOR GENERAL

Memorandum

To: Thomas Hicks

Chairman, U.S. Election Assistance Commission

From: Patricia L. Layfield

Inspector General

Date: October 15, 2018

Subject: Top Management Challenges Facing the U.S. Election Assistance Commission 

Report No. I-MC-EAC-03-19

In accordance with the Reports Consolidation Act of 2000, I am submitting our annual 

statement summarizing the areas which the Office of Inspector General considers to be the 

most serious management and performance challenges facing the U.S. Election Assistance 

Commission. This list is based upon our audit, inspection and evaluation work; and general 

knowledge of the agency’s operations.

The only remaining challenge from last year is the issue of records management, on which EAC 

has completed several key initiatives. We have noted the progress that EAC has made on each 

of the previously identified challenges. For fiscal year 2018, I am reporting a new challenge: the 

lack of a quorum on the Commission.

If you have any questions or need additional information, please don’t hesitate to contact me.

Attachment

cc: Commissioner Christy A. McCormick, U.S. Election Assistance Commission

Brian Newby, Executive Director, U.S. Election Assistance Commission

Cliff Tatum, General Counsel, U.S. Election Assistance Commission

Mark Listes, Director of Policy, U.S. Election Assistance Commission

Brenda Soder, Director of Communications
EAC Top Management Challenges 2018 Page 2

Introduction

The Reports Consolidation Act of 2000 requires the Office of Inspector General (OIG) to report 

annually on what it considers to be the most serious management and performance challenges 

facing the U.S. Election Assistance Commission (EAC). Management challenges are derived 

from cross-cutting issues that arise during our regular audit, evaluation and investigatory work. 

They are also influenced by our general knowledge of the agency’s operations and the works of 

other evaluative bodies such as the Government Accountability Office (GAO).

For fiscal year 2018, the OIG is reporting on one challenge, Records Management that we have 

reported for a number of years. We have added one additional challenge for 2018, the absence 

of a quorum on the Commission.

Status of Previously Reported Challenges

Strategic Planning – Originally Issued 2008

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 and staff.

• An organizational structure that clearly defines areas of responsibility and an effective 

hierarchy for reporting.

• Appropriate and effective internal controls based on risk assessments.

• 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.

Since the description of the planning challenge arose in 2008, EAC acquired three 

Commissioners, a new Executive Director and a new General Counsel. Together, they made 

significant progress toward meeting this challenge and developed a comprehensive 

communications strategic plan. The agency has also developed policies and procedures for the 

Communications Division and the research process. An OIG audit completed in August 2017 

recommended the EAC develop, document and implement a 5-year strategic plan and enhance 

the record management system to document decisions, operations, policies, procedures, and 

practice. During 2018, EAC developed and implemented a strategic plan and has used it in 

developing annual plans. Thus planning is no longer the significant challenge it once was.
EAC Top Management Challenges 2018 Page 3

Elections Systems as Critical Infrastructure – Originally Issued 2017

Citing the vital role elections play in the country, the Department of Homeland Security (DHS) 

designated elections systems as critical infrastructure in January 2017. EAC possessed the 

subject matter expertise, the relationships with state and local elections officials, and the indepth understanding of local election operations necessary to provide much-needed support to 

DHS in implementing that designation. As such, EAC has played a key role in helping DHS 

understand the elections sub-sector. The agency has also used its communication channels 

with state and local elections officials to educate officials and the public on critical 

infrastructure concepts, roles, responsibilities and DHS’ capabilities to apply cybersecurity 

intelligence to hardening the nation’s elections systems against intrusion, disruption, and loss. 

As the nation’s clearinghouse for election administration information, EAC has taken on the 

challenge of supporting DHS as a crucial partner in spite of having limited human and financial 

resources that have steadily decreased over the past few years due to decreases in 

congressional appropriations.

EAC’s role in supporting the protection of election systems as critical infrastructure has evolved 

into an everyday function within its clearinghouse mission. EAC is a member of the Government 

Coordinating Council (GCC) and serves as a distribution channel to state and local officials. To 

enhance its readiness to fulfill its mission, EAC has added or shifted some personnel duties and 

is creating a cybersecurity position within the agency.

Challenge 1: Records Management – Originally Issued 2010

Maintaining complete and accurate records of the operations, policies, procedures and practices 

are critical to effective agency performance. Furthermore, retention of government records is 

mandated by federal law. Without these records, an agency cannot retain an institutional 

knowledge. In that regard, since its inception in December 2003, the EAC has seen eight 

commissioners, two general counsels, and program directors come and go. 

The EAC did not have documented policies and procedures for management and retention of 

records. The OIG first noted the EAC’s lack of a records management system in 2008, when it 

issued the Assessment of EAC’s Program and Financial Operations.

The lack of an approved system for records retention leaves the EAC vulnerable to lawsuits by 

information requesters and susceptible to waste, fraud, or abuse of its resources and the 

intentional destruction of government records in violation of federal law. The EAC should take 

steps to complete its remaining records retention schedules, obtain approval of those 

schedules as needed from the National Archives and Records Administration (NARA), and train 

its staff on the proper retention of federal government record.
EAC Top Management Challenges 2018 Page 4

EAC’s Progress

In March 2013, the Executive Director of EAC signed a document titled, U.S. Election Assistance 

Commission (EAC) Records Management Standard Operating Procedures. EAC has completed 

the records retention schedules for the Office of Inspector General, Human Resources, the 

Executive Director, the Commissioners, the General Counsel, the Chief Financial Officer, and 

Grants and Communications and submitted the schedules to the National Archives and Records 

Administration (NARA) as needed. The schedules for the Research Division and Testing and 

Certification have been developed. EAC had begun to plan for a system to organize and archive 

EAC emails, which was due to be completed by December 31, 2016. 

During 2018, EAC implemented a new e-mail system with automated indexing that allows the 

agency to index, search, and retrieve records electronically. EAC has also identified means by 

which the agency can convert or capture records created using previous e-mail systems. EAC 

hired a new Chief Information Officer, who will complete the task to configure electronic 

records retention. EAC has scanned paper copies of records and saved them in portable 

document format (PDF). EAC has coordinated with the NARA to provide training for all 

employees. The agency believes retention of electronic records is on schedule to comply with 

the required 2019 deadline.

EAC also prepared records retention schedules for its Testing & Certification and Research 

divisions. Those schedules are ready to be submitted for review and approval by NARA.

Challenge 2: Lack of a Quorum on the Commission – New in 2018

Early in 2018, one of EAC’s Commissioners resigned. Because EAC has only had three 

Commissioners since January 2015, his departure left the Commission without a quorum. The 

EAC requires a quorum in order to adopt policies, including policies related to the National 

Voter Registration Act (NVRA), the Voluntary Voting System Guidelines (VVSG), among others. 

EAC has adopted a new strategic plan and needs to reconsider certain policies in order to adapt 

to declining budgets. Without a quorum, adoption of policies that will allow EAC to continue to 

move forward could be delayed.

EAC was recently advised that the President has nominated two individuals to fill the vacant 

Commissioner positions. Prompt installation of two new Commissioners would aid the EAC in 

adopting the policies necessary to modernize the organization as well as the standards and 

guidelines it promulgates.


III.B. IMPROPER PAYMENTS

The Improper Payments Information Act of 2002 (IPIA), the Improper Payments Elimination and 

Recovery Act of 2010 (IPERA), Improper Payments Elimination and Recovery Improvement Act of 

2012 (IPERIA) and OMB guidance requires agencies to review, identify and assess those 

programs that are susceptible to significant erroneous payments, and determine an annual 

estimated amount of erroneous payments made in their operations. In 2018, the Consolidated 

Appropriations Act of 2018 was signed into law, making $380 million available to states to 

improve the administration of federal election. The EAC was charged to administer these funds to 

states. This is the EAC’s only program that meets the OMB Circular A-123 Part B’s definition for 

being “susceptible to erroneous payments.”

The Payments and Grants Division used EAC internal controls to review states narrative and 

budget plans to administer funds to states. After final review, the payments were processed 

through the Department of Treasury’s Bureau of Fiscal Services (BFS). The EAC utilized it’s

financial services provider, BFS, to monitor and process grant obligations and disbursements to 

states. The states were able to draw down grant funds from their SAM account. In FY 2018, BFS 

reported no improper payments made for the Election Security Grants.

Additionally, BFS performed a qualitative risk assessment questionnaire to determine 

susceptibility to improper payments. The assessment concluded that the grant payments have a 

low risk to improper payments. Therefore, EAC does not need corrective actions plans for the 

one-time, Election Security Grants program. There are no statutory or regulatory barriers that will 

impact the ability of EAC to successfully complete corrective actions to reduce improper

payments if they were needed.

The Payment Recapture Audit performed by BFS identified zero improper payments for the 

Election Security Grants program.
III.C. SUMMARY OF FINANCIAL STATEMENT AUDIT AND MANAGEMENT 

ASSURANCES

SUMMARY OF FISCAL YEAR 2018 FINANCIAL STATEMENT AUDIT

Audit Opinion Unmodified

Material Weaknesses

Beginning 

Balance New Resolved Consolidated

Ending 

Balance

Financial Accounting & Reporting 0 0

Total Material Weaknesses 0 0

Summary of Management Assurances

Statement of Assurance (FMFIA§ 2) Unmodified

No. Summary

Beginning 

Balance New Resolved Consolidated

Ending 

Balance

1 Material Weaknesses 

(FMFIA§ 2) 0 0

Total 0 0