U.S. ELECTION 

ASSISTANCE

COMMISSION

 

 

 

 

 

 

AGENCY FINANCIAL REPORT

 

 

 

 

 

 

 

 

 

November 15, 2016
Election Assistance Commission

ABOUT THIS REPORT

For FY 2016 reporting purposes, the U.S. Election Assistance Commission (EAC) has 

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

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

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

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

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

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

guidance in OMB Circular A-136, Financial Reporting Requirements. 

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

 

 November 15, 2016

MESSAGE FROM THE CHAIRMAN

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

whose mission is, “to assist in the effective administration of Federal elections.” 

Following is EAC’s Fiscal Year (FY) 2016 Agency Financial Report. The report describes 

EAC’s accomplishments, financial activity results during the past fiscal year, and efforts

to strengthen internal controls and financial management activities. 

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

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

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

Reporting Requirements to submit an Agency Financial Report and Annual Performance 

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

performance data in this report, and will provide more detailed data in conjunction with 

the FY 2019 Congressional Budget Justification. 

Fourteen years ago, on October 29, 2002, the Help America Vote Act was signed into 

law to make sweeping reforms to the nation's voting process, including creation of 

Voluntary Voting System Guidelines, a national voting system certification and creation 

of the U.S. Election Assistance Commission (EAC). Since its inception, EAC has:

 Issued 31 voting system certifications (seven full systems and 24 modifications; 

with 17 withdrawn or terminated by manufacturers);

 Conducted manufacturing facility audits, quality assurance audits of voting 

system manufacturers, and formal and informal investigations of voting systems 

in the field;

 Drafted, approved, and implemented two versions of the Voluntary Voting 

System Guidelines and have begun the next generation standard;

 Awarded, monitored, and audited state HAVA grants totaling nearly $3.3 billion 

for election administration and voting system modernization;

 Administered discretionary grant programs for mock election and college poll 

worker programs, accessibility innovations, military voting projects, and logic 

and accuracy testing; 
Election Assistance Commission

 Created, administered, and reported the biennial Election Administration and 

Voting Survey for all federal elections, issuing reports and data sets for each 

survey year; 

 Created and maintained a clearinghouse for election information including 19 

EAC Election Management Chapters, 21 Quick Start Guides and 15 Quick Tip 

Guides; Voter’s Guides and educational materials in several languages to assist 

voters; conducted research; and facilitated the collection of best practices.

 Brought together State and local election officials, academics and voter 

advocates for a series of ten roundtables, an Election Data Summit, a Language 

Accessibility Summit, and a Future of Voting Symposium with the National 

Institute of Standards and Technology (NIST).

In preparation for the 2016 Presidential Election cycle, EAC created the ‘BeReady16’

election initiative, designed to help election administrators prepare for and administer 

the 2016 elections by providing a host of resources, including public forums, events, 

videos, training materials, best practices, webisodes, toolkits, and other administrative 

resources.

EAC Commissioners and staff have also worked closely with other election experts to 

create the videos and webisodes on topics such as military and overseas voters; best 

practices for recruiting, training, managing and retaining election workers; vote by mail

best practices; accessibility for voters with disabilities; a toolkit for election officials and 

voters; managing election technology (“Tech Time”); contingency planning; procuring 

voting systems; election security preparation; and electronic pollbook requirements. 

BeReady16 also included a series of recorded panel discussions of innovative methods, 

technologies, and tools that help election officials manage and analyze the election 

process. These valuable tools help election officials estimate: the number of poll 

workers and voting machines that are needed at thousands of polling locations across 

the country, and wait times for voters based on the number of voters who might show 

up at a polling station. Since administering elections in a presidential election year is an 

extraordinary undertaking, EAC was happy that we could provide these resources to 

help the dedicated election administrators. 

The Commission held a Public Meeting on January, 6, 2016, where Commissioners heard 

a recommendation for adoption of a Voluntary Voting System Guidelines (VVSG) 1.1 

transition date. The Commission also heard a discussion on a draft Recommendation of 

Policy Regarding Employee Participation with Outside Organizations. 

The January Public Meeting was followed by a roundtable entitled, “Preparing for 

Election 2016 in Battleground Jurisdictions.” The roundtable explored how election 

officials in 2016 battleground states are preparing for the upcoming election cycle. The 

discussion focused on identifying concerns, risks, mitigation strategies and best 

practices for dealing with the special challenges of a presidential election cycle. The 
Election Assistance Commission

objective was to share best practices for preparing for and executing an election, and 

monitoring media and election advocate’s reports and speculations. 

On January 28, 2016, the Commissioners hosted a panel discussion on, “How to Make 

Sure Your Vote by Mail Ballots Count,” in conjunction with the U.S. Postal Service (USPS) 

and the Department of Defense Federal Voting Assistance Program (FVAP). EAC, FVAP 

and USPS are working together to ensure vote by mail ballots are delivered and counted 

in the 2016 Presidential Election and in subsequent elections. Panelists discussed the 

challenges and solutions for handling election mail operations. The meeting was 

recorded and released as a webisode to help election officials identify policies, 

strategies and procedures for ensuring vote by mail ballots get processed in a timely 

manner for the 2016 election cycle. Themes and topics covered during the webisode 

included ballot delivery, ballot return, postmarking, and the changing USPS 

infrastructure, all of which are also critical aspects of ensuring that military and overseas 

voters can vote from abroad. A three minute webisode clip is available at

https://goo.gl/5mtWcL. 

In conjunction with NIST, EAC held an open session of the Technical Guidelines 

Development Committee (TGDC) on February 8-9, 2016. TGDC is a Help America Vote 

Act (HAVA) mandated committee charged with assisting EAC’s Voluntary Voting System 

Guidelines (VVSG) development efforts. TGDC is composed of 14 other members 

appointed jointly by EAC and the Director of NIST, who is the chairperson of TGDC. 

During this session working and constituency groups provided updates on their activities

associated with development of next iteration of the VVSG. 

On March 29, 2016, the Commissioners hosted a public panel discussion on 

“Innovations and Best Practices for Recruiting, Training and Managing Election 

Workers.” The event was streamed live and a four minute clip of the discussion is now 

available at https://goo.gl/f7qgoz. With over 800,000 poll workers for each of the last 

several elections, EAC believes this to be an important topic. And while vote by mail 

elections and online voter registration activities are changing the field of elections, a 

high number of election workers are still needed for each election cycle. 

On April 14 and April 15, 2016, EAC convened the Standards Board. The Standards 

Board, like the TGDC, is mandated by the Help America Vote Act (HAVA). HAVA 

designates a 110-member Standards Board to assist EAC in carrying out its mandates 

under the law. The Board consists of 55 state election officials (the 50 states, the District 

of Columbia, American Samoa, Guam, Puerto Rico, and the Virgin Islands) selected by 

their respective chief state election official, and 55 local election officials selected 

through a process supervised by the chief state election official. EAC staff, EAC 

Commissioners, United States Postal Service, NIST and FVAP all presented at this 

meeting. Board members on the TGDC provided a status of the Committee’s work to the 

Standards Board.
Election Assistance Commission

On April 27, 2016, the Commissioners held a Public Hearing on Accessible Voting to 

listen to voters with disabilities, highlight EAC resources that may be able to alleviate 

issues commonly encountered by voters with disabilities, and to help election officials 

prepare for the 2016 election. EAC Commissioners heard testimony about the current 

state of accessible voting and the progress made since passage of HAVA. Two panels, 

one with election administrators and one with advocates and voters with disabilities, 

convened. Voters with disabilities were encouraged to share their experiences with 

accessible voting with a focus on improving the voting experience for voters with 

disabilities. EAC combined what we heard at this hearing with our ongoing efforts to 

help voters with disabilities, which includes creation of a National Voting Rights Card in 

Braille. On June 14, 2016, EAC released this card o the public. A digital copy is available 

at https://goo.gl/H76XjQ.

EAC convened a meeting of the HAVA-mandated Board of Advisors on May 4, 2016. 

HAVA designates a 37-member Board of Advisors to assist EAC in carrying out its 

mandates under the law. Membership on the Board of Advisors includes groups, as 

specified by HAVA, representing governors; mayors; state legislatures; secretaries of 

state; state election directors; county recorders, election officials and clerks; voter 

advocacy groups; federal agencies; and professionals in the fields of science and 

technology. The Commissioners and Board members heard reports from EAC staff; 

directors of Federal Voting Assistance Program (FVAP), the Overseas Voting Initiative, 

and Council of State Governments (CSG); staff from the U.S. Department of Justice; and 

Board of Advisors committees on the status of their work. 

On May 25, 2016, the Commissioners held a Public Meeting and released the EAC 2016 

Election Worker Guidebook. In the meeting, Commissioners invited state and local 

election officials and research experts to discuss two topics: ways to recruit and train 

election workers and the allocation of resources at the polls on Election Day. Also in the 

meeting, EAC announced its national election worker best practices in recruiting, 

training and retaining competition. The submission deadline was September 1, 2016.

On June 2, 2016, the Commission convened the Summit on Language Access in 

Elections. The summit was co-sponsored by the Democracy Fund Voice, a nonpartisan 

not-for-profit organization dedicated to helping America build a stronger, healthier 

democracy. Citizens for whom English is a second language may need language 

assistance when voting, such as having ballots and voting materials translated into their 

native languages. Federal law requires over 250 jurisdictions nationwide, to provide 

language assistance based on Census results. Panelists at the summit included election 

officials, voting rights groups, academics, and translation experts. Topics included 

Federal legal requirements for language assistance, outreach to voters and community 

leaders, recruiting, training, and retaining bilingual election workers, challenges with 

serving voters whose first language is not English, and, tools and best practices for 

effective language assistance. 
Election Assistance Commission

On August 10, 2016, the Commission released the 45 Before 45 video. The video 

features a discussion between myself and the Director of FVAP on the election official 

push to get ballots to military and overseas voters 45 days prior to Election Day as 

mandated by the Military and Overseas Voter Empowerment (MOVE) Act. We discussed 

ballot distribution and transmission tips for election officials and ballot return and 

submission tips for military and overseas voters. The goal was to help ensure they 

receive and can return their ballots in a timely manner, and I think we achieved it. 

On August 17, 2016, EAC released the first in a new series of videos entitled, “Legends of 

Elections.” This is an ongoing video series designed to capture the knowledge and 

wisdom of some of the most experienced election administrators in the country. 

Commissioner Masterson leads the interviews. Interviews with the former executive 

director of the Election Center, former election director of Wyoming, and former 

director at the Kansas City Board of Elections, have been videotaped. Additional 

interviews will be conducted and posted on EAC.gov and YouTube. 

On September 8, 2016, Commissioners held a public meeting to hear testimony from 

election officials and other experts on: 

1) Election contingency planning and system security; 

2) Successful practices on election administration and management of the voter 

registration process; and,

3) Activities regarding National Voter Registration Day. 

Commissioners discussed entries for the national competition for the top election 

worker best practices. The entries were judged by election officials including public 

meeting speakers, and Board of Advisors and Standards Board members.

Entries for the competition were submitted between May and September. Best practice 

entries for recruiting, training and retaining election workers were judged on: (1) 

innovativeness, (2) effectiveness, (3) sustainability, (4) cost effectiveness, and (5) 

potential for replication. 

The contest was held as an acknowledgement that Election Day volunteers are crucial to 

the success of fair elections. During each federal election, millions of Americans 

volunteer to help make elections run smoothly. Over 500,000 more volunteers are 

needed to set up polling places, check voters in, issue ballots, show voters how to use 

voting equipment, monitor voting systems, and count ballots. EAC encouraged sharing 

best practices to acknowledge election officials’ important responsibility for recruiting, 

training and retaining election worker volunteers.

On September 15-16, 2016, EAC’s Technical Guidelines Development Committee met at 

NIST. Discussions included Working Group and Constituency Groups work since the 

February TGDC Meeting. The groups review cyber security, human factors, 

interoperability and testing; the scope of the Voluntary Voting System Guidelines (VVSG) 
Election Assistance Commission

and the VVSG 2.0 Project Charter; post-Help America Vote Act (HAVA) Voting System 

Requirements; and voting system usability and accessibility, and security. 

The Commission discussed concerns about voting system security with election officials 

across the county and with officials at the Department of Homeland Security. The 

meeting focused on ensuring that election officials have the information they need to 

secure the voting process. EAC in partnership with NIST, provides vigorous security 

standards for use in voting system testing. EAC tests and certifies voting systems to 

these standards. Further, EAC continually works with election officials at the state and 

local level to share best practices on: pre-election testing, security, continuity planning, 

and post-election audits. 

One of the FY 2016 #BeReady16 resources addressed Election Security Preparedness. 

The session included securing voter registration databases and voting systems. Voters 

were encouraged to get involved with their election officials and ask questions. Voters 

were asked to verify that their voter registration is up to date, volunteer as poll workers, 

and make time to vote on Election Day. Commissioners were interviewed by members 

of national and international press on security issues.

Throughout the year, the Commissioners and Commission staff addressed over 30

professional election groups: 

Atlantic Council;

Auburn University;

Bipartisan Council; 

Bipartisan Policy Center; 

Brasilia Electoral Court; 

California Association of Clerks and Election Officials; 

Colorado County Clerks Association; 

Council of State Governments; 

Council on Governmental Ethics Laws; 

Election Center; 

Election Verification Network; 

Female Electoral Magistrates in Ibero-America; 

Florida State Association of Supervisors of Elections; 

Future of California Elections Conference; 

Illinois Association of County Clerks and Recorders;

Midwest Election Officials Conference; 

Midwest Political Science Association; 

Missouri Association of County Clerks and Election Authorities;

National Association for the Advancement of Colored People; 

National Association of Counties; 
Election Assistance Commission

National Association of County Recorders, Election Officials and 

Clerks/International Association of Government Officials (merged to become 

International Association of Government Officials); 

National Association of Secretaries of State; 

National Association of State Election Directors; 

National Conference of State Legislatures; 

National Conference on State Testing and Certification of Voting and Election 

Systems;

National Council on Disability;

National Disability Rights Network Annual Conference;

New Jersey Association of Election Officials; 

Oregon Association of County Clerks;

Pew Election Day Meeting;

Self Advocates Becoming Empowered and Our Community Standing Strong;

South Carolina Association of Registration and Election Officials;

Southern Legislative Conference;

Texas Secretary of State; 

Utah Association of Counties;

Virginia Board of Elections; and

Washington State Elections.

As of this writing, two presentations with the International Conference on Voter 

Education for Inclusive, Informed and Ethical Participation in India are scheduled.

Further, EAC Commissioners interacted in other ways with election officials across the 

country and from around the world throughout FY 2016. Commissioners met with:

Georgia Secretary of State;

County of Los Angeles: Registrar-Recorder/County Clerk; 

Guam Election Commission on their Help America Vote Act plans and compliance 

with HAVA; 

Elections Supervisor of Hillsborough County, Florida; 

Kansas City Board of Election Commissioners;

Inter-American Meeting of Electoral Management Bodies;

International Association of Clerks, Recorders, Election Officials and Treasurers/

International Centre for Parliamentary Studies; 

Marines stationed at Camp Pendleton about their experiences with voting during 

deployment;

Officials of the Massachusetts Department of State to discuss early voting;

Disability advocacy groups in St. Louis, Missouri;

National Association of County Recorders Election Officials and Clerks;

New Jersey Lieutenant Governor; 

San Diego County Registrar of Voters; 

South Carolina State Senate on voting system standards; and

Thai delegates from Cultural Vistas. 
Election Assistance Commission

Commissioners attended the National Conference on State Testing and Certification of 

Voting and Election Systems, and a voting system manufacturer meeting on VVSG 1.1. 

EAC participated in the Automatic Voter Registration discussion at the New York 

University School of Law. One of the commissioners taught a class on information 

technology for election officials in South Carolina entitled, “Introduction to Information 

Technology for Election Officials.” The commissioner served on the National Association 

of Counties steering committee, and participated in a National Association of Secretaries 

of State Tech Talk: SOS IT Staff Roundtable. 

Commissioners observed Arizona; Colorado; Orange County, California; and Chicago, 

Illinois primaries, and elections in Kentucky and Massachusetts. 

During FY 2016, EAC’s programs were also responsible for numerous accomplishments. 

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

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

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

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

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

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

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

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

on FY 2016 accomplishments can be found in Section I.B. of the following document. 

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

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

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

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

Commission provides an unqualified statement of assurance that the agency’s internal 

control and financial management systems meet the objectives of the Federal 

Managers’ Financial Integrity Act. 

The Election Assistance Commission stands ready to continue assisting our state and 

local election officials to help America vote. 

 Sincerely yours,

 

 

Thomas Hicks

 Chairman
Election Assistance Commission

TABLE OF CONTENTS

Page

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

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

 Funding ......................................................................................................................3 

 Organization by Program ...........................................................................................4

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

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

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

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

FY 2016 Performance Summary...............................................................................17

Program Performance Indicators.............................................................................19

Portfolio Analysis......................................................................................................19 

I.C. Financial Results........................................................................................................19

Budgetary Resources................................................................................................19

 Financial Position .....................................................................................................19

 Results of Operations...............................................................................................20

 Limitations of the Financial Statements ..................................................................20

I.D. Analysis of Controls, Management Systems, and Legal Compliance.......................21

 Internal Control Environment..................................................................................21

 Federal Manager’s Financial Integrity Act ...............................................................21

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

 Audit Follow-Up .......................................................................................................22

 Federal Financial Management Improvement Act..................................................22

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

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

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

 Annual Assurance Statement on Internal Control...................................................24

 

SECTION II – Financial Section.................................................................................. 25

II.A. Message from the Chief Financial Officer ................................................................25

II.B. Inspector General’s Assessment...............................................................................26

II.C. Independent Auditor’s Report..................................................................................28

II.D. Financial Statements................................................................................................32

II.E. Notes to the Financial Statements............................................................................37

II.F. Required Supplementary Stewardship Information.................................................49

SECTION III - Other Accompanying Information........................................................ 51

III.A. Most Serious Management Challenges Facing the EAC..........................................51

III.B. Improper Payments.................................................................................................55

III.C. Summary of Financial Statement Audit and Management Assurances..................55
Election Assistance Commission

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SECTION I 

Management Discussion and Analysis

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

Statement of Federal Financial Accounting Standards (SFFAS) 15. The MD&A is intended to 

provide a clear and concise description of the agency’s mission and organizational structure;

high-level discussion of key performance goals, results and measures; analysis of financial 

statements; systems, controls, and legal compliance; and actions taken or planned to 

address issues. It provides a balanced analytical assessment, with both positive and negative 

information, of key program and financial performance. The MD&A is a vehicle for 

communicating insights about the agency, its operations, programs, successes, challenges 

and future outlook. Contents of this report and the MD&A are in conformance with Office of 

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

I.A. BACKGROUND, VISION, MISSION AND ORGANIZATIONAL STRUCTURE

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

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

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

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

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

and the go-to resource on election information, best practices, data, technology, technical 

advice and assistance for election administrators, officials, and voters across America. The 

mission is: For the EAC to assist in the effective administration of Federal elections.

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

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

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

Development Committee -- guide the EAC. Currently, there are three Commissioners. The

EAC is statutorily charged with:

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

• accrediting voting system testing laboratories and certifying voting systems, 

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

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

including tools and best practices,

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

the National Voter Registration Act (NVRA) of 1993, 

• promoting accessibility for voters with disabilities,

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

• auditing the use of HAVA funds.
Election Assistance Commission

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

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

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

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

tested. 

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

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

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

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

appropriations have included $35.3 million for NIST support. 

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

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

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

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

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

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

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

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

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

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

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

staff, obtain office space, arrange for administrative support from the GSA, establish a 

website, start election administration clearinghouse operations, and distribute Federal

financial assistance to the states.

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

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

an interim Inspector General. The EAC’s focus in subsequent years was on upgrading the 

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

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

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

elections to its stakeholders. 

In FY 2007, Congress recognized the expanding Agency responsibilities and lifted the fulltime equivalent staffing ceiling of 24. As of the end of FY 2016, the EAC had 21 full-time and 

six part-time 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 PreElection Logic and Accuracy Testing and Post-Election Verification. The EAC also tracks and 

provides technical assistance on the $67.7 million of Section 101 funds reported by the 

states as available. The time period for using the Section 102 funds expired, and the EAC 

collected all unused funds by the end of FY 2015.
Election Assistance Commission

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

three commissioners constitute a quorum. There is currently one Commissioner vacancy. 

Funding

 EAC Appropriation History Fiscal Years 2003 - 2016 

 (Dollars in Thousands)

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

EAC

EAC Salaries & Expenses 

Operations 2,000 1,674 1 11,110 10,986 11,313 12,330 12,909 13,409 13,024 8,750 8,292 8,100 8,100 8,100 130,097 

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 35,288 

Election Reform Grants

Requirements 

Payments 830,000 2 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 Data 

Collection 10,000 10,000 

TOTAL EAC 835,000 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 2,789,285 

GSA 

Section 101 and 

102 649,500 649,500 

Administrative 

Expenses 500 500 

 TOTAL GSA 650,000 650,000 

TOTAL EAC & GSA 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 3,439,285 

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

2/ Carried forward to FY 2005
Election Assistance Commission

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Status of Help America Vote Act Authorization versus Appropriations

(In whole dollars)

Authorized

Appropriated FYs 

2003-2016 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) 159,135,000 2** 159,135,000 - 

Election Data Collection Grants 10,000,000 3 10,000,000 - 

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 $3,862,335,000 $3,439,285,000 $423,050,000 

1/ Authorized by P.L. 111-8

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

3/ Authorized by P.L. 110-161

4/ Authorized by appropriations

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

Note: excludes $140 million plus such sums authorized for HHS under Disability Access Section 261 and Participation Section 291, $15 

million appropriated to GSA in FY 2003 for Title I, and $5 million plus such sums for the Help America Vote Foundation Section 601

Organization by Program

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

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

Following the descriptions is the EAC’s organization chart. 
Election Assistance Commission

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Clearinghouse

The Clearinghouse Division is responsible for external communications, and the tools and 

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

responsibility include:

• the EAC Website and Clearinghouse,

• social media,

• media inquiries,

• external communications,

• Congressional relations,

• the Freedom of Information Act,

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

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

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

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

related information from public meetings, hearings, summit, and roundtables. 

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

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

variety of election topics and events, including public meetings, advisory board meetings, 

reports, policies, and other agency news. 

Payments and Grants Management

The Payments and Grants Management Division:

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

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

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

reports submitted by states and discretionary grant recipients,

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

resolve audit findings applicable to the EAC’s programs,

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

funds, and

• drafts advisory opinions for Commission approval and issuance. 

Research, Policy and Programs

The Research, Policy and Programs Division: 

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

states, the District of Columbia, and territories. The survey produces data and reports
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mandated by HAVA. Topics include the impact of the National Voter Registration Act 

of 1993, and on the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA)

for military and overseas voters’ participation in Federal elections. EAVS is the only 

comprehensive collection and report of data on elections in the United States,

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

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

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

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

experiences of first-time voters who register to vote by mail,

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

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

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

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

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

Employing Poll Workers, Polling Place Management, Voting Accessibility, 

Communicating with the Public, Contingency Planning, Managing Change in an 

Election Office, Serving UOCAVA voters, and Developing an Audit Trail for the 

verification of votes,

• manages the Language Accessibility Program that provides informational materials 

on the Federal election process, glossaries of election terminology in English and six 

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

languages other than English, and

• provides materials to voters and election administration officials to facilitate 

successful participation in Federal elections. 

Voting System Testing and Certification

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

improvements to voting systems through the distribution of Federal funds. EAC accredits 

voting system test laboratories and certifies voting equipment. Participation by states in the 

certification program is voluntary. Throughout the certification process, test plans, test 

reports, and reports on voting system anomalies in the field are provided to election officials. 

Staff works with the National Institute of Standards and Technology (NIST) to evaluate and 

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

certification process. 

The Testing and Certification (T&C) Division:

• assists states with voluntary certification of their systems,

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

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

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

technology,
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• promotes quality control in test laboratories and voting system manufacturing

through the EAC Quality Monitoring Program, including periodic lab and 

manufacturing facility audits of EAC-registered entities,

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

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

HAVA Section 231(a)(1),

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

of systems in use in the field,

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

implement voluntary testing guidelines for voting systems. 
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Inspector General Commissioners

Executive Director

General Counsel Chief Financial Officer/

Budget Officer

Clearinghouse

Advisory Board (37 members)

Standards Board (110 members) 

and Technical Guidelines 

Development Committee (15 

members).

Statutory, non-monetary positions

Payments 

and Grants 

Management

Accounting

Procurement

Voting System 

Testing and 

Certification

Research, Policy 

& Programs

Information 

Technology 

Human Resources

Administrative 

Services

ELECTION ASSISTANCE COMMISSION 

ORGANIZATION CHART

Communications
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I.B. PERFORMANCE GOALS, OBJECTIVES, AND RESULTS

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

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

and presented to the EAC’s Board of Advisors and Standards Board for comment, as required 

by HAVA. The EAC adopted the Plan in March 2009. A new five-year plan is under 

development.

How the EAC Assesses Performance

The EAC has five strategic goals:

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

elections for Federal office, and on the operations and services offered by the 

EAC,

2. deliver and manage Federal funds effectively,

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

administration of elections for Federal office; issue recommended improvements, 

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

responsibilities under the National Voter Registration Act,

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

improve system accessibility, security, and functionality,

5. implement a high-performance organization. 

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

its goals. Outcomes measure the effect program outputs have on their stakeholders. Outputs 

are quantifiable targets that directly measure the results of a program. A program may have 

multiple outputs, but each output is associated with one program. Performance measures 

are quantifiable and documentable representations of a capacity, process, or outcome that is 

relevant to the assessment of performance. 

Performance Goal 1: Communicate timely and accurate information on the effective 

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

by EAC. The anticipated outcome of the goals is to provide Congress, Federal agencies, state 

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

information about the administration of Federal elections. The goal will be accomplished 

through three objectives: 1) operating the EAC clearinghouse effectively; 2) responding to 

outside requests about the EAC timely and accurately; and 3) conveying the results of the 

EAC’s operations and accomplishments. Goal 1’s aim of communication of timely and 

accurate information is the responsibility of the Clearinghouse Division. 
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Goal 1 FY 2016 Accomplishments

In FY 2016, 1,002,407 unique visitors accessed EAC.gov 1,149,705 times. This represents a 68 

percent increase over the 597,621 unique visitors in FY 2015. Of the over one million website 

visitors in FY 2016, 86.9 percent, or 999,487 were new to the site in FY 2016. There were 

150,218 returning visitors. Visitors to website viewed 2,323,195 pages: 

The top landing pages were Voter Resources: “Register to Vote,” “I’ve Moved Recently. Can I 

Still Vote?”, “Contact Your State – Register & Vote in Your State” and “Work at the Polls on 

Election Day.”

On social media, the number of daily unique users that interacted with content on EAC’s 

Facebook page in FY 2016 was 48,251, with 316 “Likes.” In FY 2016, 540 individuals were 

following EAC on Twitter, up from 500 following in FY 2015. The number of Twitter followers 

was 3,391, up from 2,469 in FY 2015. There were 10,299 tweets in FY 2016, up from 7,726 

tweets in FY 2015.
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The FY 2016 Clearinghouse Division efforts resulted in:

Stakeholder Updates

The division publicized three public meetings, a public hearing, board meetings, panel 

discussions, a forum, and a summit; the EAC’s educational materials; kick-off of the biennial 

Election Administration and Voting Survey for FY 2017 reporting; and program activity 

updates. Dissemination of information occurred via seventeen press releases; 27

announcements; eight Federal Register Sunshine Act and Federal Advisory Committee Act 

(FACA) Notices; 77 blog posts; frequent updates on Facebook, Twitter account @EACgov, 

and hashtag #BeReady16; and 27 E-Alert automatic program updates from topics posted on

the EAC website. The information went to election officials; Congressional staff; academics; 

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

Further, EAC posted 39 videos of panel meetings on YouTube in FY 2016 as part of EAC’s

#BeReady 16 campaign:

• Campaign Kick off & Announcements; 

• Election Security Preparedness;

• E-Pollbook Requirements;

• Tech Time Resource Tools to Prepare for the 2016 Election series: Data Visualization 

modules on Building a Data Culture in Your Office, Visualizing Data Effectively; A 

Different View of the Impact of Data on Elections; online tools for managing polling 

places-- by far the most popular videos on YouTube with 734 views;

• Recruiting, Training and Retaining Election Workers—the second most popular videos 

on YouTube with 576 views;

• Leadership for Election Officials;

• Accessibility: The “Why” of Language Accessibility; Public Hearing on Accessible 

Voting; Polling Place Accessibility; Acting Locally and Thinking Globally: Keys to 

Successful Language Assistance in Elections;

• 45 Before 45, to serve election officials and military and overseas U.S. citizen voters, 

in conjunction with the Federal Voting Assistance Program; 

• How to Make Sure Your Vote by Mail Ballots Count;

• Managing Election Technology;

• Election Official & Voter Toolkit;

• Contingency Planning for “No Time Out,” and Preparing for the Election in 

Battleground Jurisdictions;

• Voting Technology Procurement;

• The Voting System Testing and Certification Program;

The public meetings, hearing, roundtable, panel discussions, forum, and summit were 

webcast live and featured a live Twitterfall. The corresponding meeting agendas, webcasts, 

reports, and transcripts, as applicable, are posted to EAC.gov.
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Program updates included voting system certification; HAVA grants and payments funding 

charts and statistics, a grant expenditure report; and other EAC activities and election 

information.

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

• Pre- Election & Election Day Contact Information;

• Ask the EAC: Primaries & Caucuses; 

• Certification Provides Critical Resources for Election Officials; 

• EAC Wants YOU to Help Develop New Voting System Guidelines!; 

• EAC Continues to Collect and Share Essential Election Administration Data; 

• Update on the Election Administration and Voting Survey; 

• EAC and Election Officials Working Together to Increase Confidence;

• The Election Official as an IT Manager; 

• Improve the Experience for Voters with Disabilities; 

• Legends of Elections – Advise from Retired Election Administrators; 

• The Power of Language Access; 

• The Reality of Election Security; 

• Voting System Testing Updates; 

• Weekly Election Updates; and

• Other ongoing blog posts covering election related topics to answer frequently asked 

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

media. 

 

Federal Advisory Committee Act (FACA) Activities

• Managed the successful completion of the Congressionally-mandated Annual 

Comprehensive Review Report to Congress for Fiscal Year 2016, and

• Published Sunshine Act Notices in the Federal Register for the Federal Advisory 

Committee Meetings.

Freedom of Information Act (FOIA) Activity

Clearinghouse staff completed 15 FOIA requests for during FY 2016.
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Performance Goal 2: Deliver and manage Federal funds effectively. The anticipated 

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

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

administration of elections for Federal office in accordance with HAVA. The goal will be 

achieved via three strategic objectives: 1) accurately and timely disburse Federal financial 

assistance administered by the EAC, 2) effectively monitor Federal financial assistance

administered by the EAC, and 3) provide technical assistance and guidance on the 

management of Federal financial assistance administered by the EAC to reduce the risk of 

inappropriate use of funds and accounting errors. Goal 2’s aim of delivering and managing 

Federal funds effectively is the responsibility of the Payments and Grants Management 

division and the Office of the Inspector General (OIG).

Goal 2 FY 2016 Accomplishments

In FY 2016, the Payments and Grants Management Division disbursed $1,597,276 of Section 

251 Requirements Payments to three States that requested funds and that certified

compliance with the provisions of HAVA. By law, Section 251 funds were 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. 

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. States may also use Requirements Payments to improve the administration 

of Federal elections once they certify that the State has implemented the requirements of 

Title III or they certify they will use only up to a “minimum payment” amount for the 

administration of federal elections as defined by HAVA. 

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

who are responsible for establishing and maintaining internal controls over the funds, 

including pre-audit technical assistance visits to two states, site visits to two states and 

remote technical assistance to another 20 states. The controls are intended to provide 

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

and payments and grant agreements. The division also provided indirect cost rate 

negotiations for three states, and resolves any issues identified in state OMB Circular A-133 

single audit reports. 

Staff reviewed annual Federal Financial Reports (FFRs) and accompanying narrative reports 

submitted by the States related to the HAVA Sections 101 Payments to States for activities to 

improve administration of elections, and 251 Requirements payments funds on their books. 
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Information from the FFRs as of September 30, 2015 was used to compile an annual grant 

expenditure report during FY 2016. The report is available on EAC.gov.

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

regarding the administration of elections for Federal office; issue recommended 

improvements, guidance, translations, and best practices as required by HAVA; and carry 

out responsibilities under the National Voter Registration Act. The anticipated outcomes 

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

the administration of elections for Federal office based on having pertinent, impartial, highquality information, recommendations, guides, and other tools on election and voting issues,

and 2) that the national mail voter registration form is available to citizens to register to 

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

information. Goal 3 consists of four strategic objectives: 1) collect and release data on 

certain election administration practices, on various voting methods and on various voting 

practices that are useful and required by HAVA; 2) administer programs and release 

information which provides timely and useful guidance for election officials and voters; and 

3) administer the National Mail Voter Registration form. Goal 3 is administered by the 

Research, Policy and Programs division.

Goal 3 FY 2016 Accomplishments

The FY 2016 RPP Division efforts resulted in:

Research:

• Collaboration with the Council of State Governments (CSG) and the Department of 

Defense Federal Voting Assistance Program (FVAP) on changes to the biennial 

Election Administration and Voting Survey (EAVS) questions and process for collecting 

the data. The aim of the changes is to work towards continuous improvement in the 

quality of the data.

• Release of two videos from experts in the field about visualization of election data, 

and use of the visualizations by election officials in policy and budget discussions.

• Interpretations of 2014 EAVS data to the public and the media as requested.

Policy:

• An update of the Compendium of State Poll Worker Requirements, a framework for 

understanding the legal requirements for serving as a poll worker in the United 

States.

• Responses to ongoing inquiries from states regarding the interpretation of various 

National Voter Registration Act (NVRA) requirements, such as translations of the 

National Mail Voter Registration form into foreign languages pursuant to the Voting 

Rights Act.

• Translations of the national mail voter registration form in Bengali, Hindi and Khmer.

• Changes to state-specific NVRA national mail voter registration forms for three states.
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Programs:

• A Summit on Language Access in Elections, co-sponsored by the Democracy Fund 

Action organization.

• Logistical support for the EAC webisode with the U.S. Postal Service and FVAP on the 

absentee ballot mailing process.

• Release of two Quick Start guides for voters with disabilities: “6 Tips for Making 

Voting Accessible,” and “10 Tips for Voters with Disabilities.”

• Release of “Election Worker Successful Practices: Recruitment, Training, and 

Retention 2016.” A focus group of election officials from jurisdictions with 

largest numbers of poll workers provided feedback on the draft guidebook.

Staff provided logistics for a webisode on this topic.

• Updated language glossaries of election terms, “Election Phrases at a Glance.” The 

phrases were translated in Spanish, Bengali, Chinese, Hindi, Japanese, Khmer, Korean, 

Tagalog, and Vietnamese.

• Distribution of EAC’s voter education publication by the Department of Homeland 

Security U.S. Citizenship and Immigration Services (USCIS). USCIS reproduces and 

distributes the publications in their new citizen packets.

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

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

outcome of the goal is voting equipment that operates more reliably and securely, and is 

more accessible to individuals with disabilities. States voluntarily participate in the EAC 

testing and certification program to help ensure that their voting systems meet the 

Voluntary Voting System Guidelines (VVSG) standards, and voting system manufacturer 

specifications. The goal consists of three strategic objectives: 1) develop and update the 

voluntary voting system guidelines (VVSG); 2) provide for the accreditation of independent 

laboratories qualified to test voting systems to Federal standards, and for the revocation of 

accreditation as appropriate; and 3) administer the testing, certification, decertification, and 

recertification of voting system hardware and software by accredited laboratories. Goal 4 is 

administered by the Voting System Testing and Certification division. 

Goal 4 FY 2016 Accomplishments 

In FY 2016, voting system Testing and Certification Division staff:

• Developed a checklist guidance document entitled, “Securing Voter Registration 

Data.”

• Worked with and participated in meetings of the Homeland Security-led Cyber 

Security Working Group to address issues related to security of voting systems, voter 

registration systems and election night reporting systems.

• Continued to assist state and local election officials by collecting, and posting on 

EAC’s website, closed state and local Request for Procurement documents for both 

voting systems and electronic poll books for replacement of equipment.
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• Certified five voting systems.

• Managed testing campaigns for seven additional systems (testing was not completed 

as of the date of this report or the systems were withdrawn by the manufacturer).

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

Voting System Guidelines (VVSG), and drafted one additional RFI.

• Drafted and published three Notices of Clarification (NOCs) for the Testing and 

Certification Program Manual and Laboratory Accreditation Program Manual.

• Continued development of State voting system requirements-mapping to EAC’s

Voluntary Voting System Guidelines.

• Implemented updates to EAC’s Virtual Review Tool, used for voting system test plan 

and test report handling, document uploads, and change orders.

• Worked with the National Institute of Standards and Technology’s National Voluntary 

Laboratory Accreditation Program to finalize the revision to NIST 150-22, NVLAP 

Voting System Testing. 

• Published the third in our series of Managing Election Technology guidance 

documents, entitled, “Considerations for Implementing Voting Systems with 

Commercial Off-the-Shelf Products.”

• Assisted in organizing and participated in the annual State Certification of Voting 

Systems meeting.

• Participated in two meetings of the statutory Technical Guidelines Development 

Committee (TGDC) and its Public Working Groups, focused on the Voluntary Voting 

System Guidelines (VVSG 2.0) development effort.

• Held two meetings with registered EAC accredited Voting System Test Laboratories 

and registered Voting System Manufacturers.

• Continued EAC social media production and outreach, including Blog postings and the 

agency’s Twitter account.

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

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

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

strengthen internal controls, and maximize efficiencies. 

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

opinion on agency financial statements in FY 2016. On the performance measure to

implement audit recommendations in a timely manner, to date, only two percent of 82 

operational audit recommendations remain open. 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 Annual Performance Report, along with the 

Congressional Budget Justification, usually in February each year, and 3) actual planned 

metrics in the OMB Budget Justification in September. 
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EAC continues to focus on setting up sound systems and policies and procedures, working 

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

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

processes and their specific, individual responsibilities. Budget holders complete assessable 

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

provide a review of the effectiveness of internal controls in their areas of responsibility for 

the fiscal year. The risk assessments and letters are reviewed by the Executive Director and 

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

is presented in this report.

The following table presents key EAC FY 2016 program performance results data. As much detailed 

performance information as possible will be presented, and variances discussed, in the FY 2016 

Annual Performance Report. The performance report will accompany the FY 2018 Congressional 

Justification.

FY 2016 Performance Summary

 Performance Indicator

Type of 

Indicator Planned Actual

Strategic Goal 1: Clearinghouse

Regularly issue information on EAC activities Output 30 blog posts, 5 

press releases, 30 

e-alerts to 

subscribers

77 blog posts, 17 press 

releases, 27 e-alerts, 

10,299 tweets, 39 

YouTube videos

Produce the annual report of EAC activities to 

Congress by January 31 of each year for the 

preceding year ending September 30

Output Disseminate report 

1/31/16

Disseminated report on 

1/31/16

Strategic Goal 2: Fund and Oversee

Resolve 100 percent of audit findings within 

established time frames

Output 100% 67% -- 2 of 3 audits

Review financial and performance reports 

from grantees and notify recipients of 

reporting anomalies or failures to file within 

30 days 

Output 100% 100%

Strategic Goal 3: Study, Guide, Assist

Produce and distribute Quick Tip Guides 

(concise tips on a wide range of election 

topics with links to best practices in the 

administration of Federal Elections) and 

Guidebooks.

Output Issue and distribute 

Quick Tip Guides 

and Guidebooks

Released “6 Tips for 

Making Voting 

Accessible,” “10 Tips 

for Voters with 

Disabilities;” “Election 

Worker Successful 

Practices: 

Recruitment, 

Training, and 

Retention 2016.”
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In FY 2016, the EAC provided 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 accrual training, and have access to free 

online COR and invoice approval training via the procurement service provider agency. Onsite training on the travel system was provided in FY 2016.

The agency is set up to participate in telecommuting, which provides the added benefit of 

equipping EAC with the ability to deal with any continuity of operations disruptions. Staff is

provided with a secure “virtual office.” Personal and shared computer drive files and folders 

are accessible remotely.

Provide translations of election materials Output Translate the 

National Mail Voter 

Registration 

(NMVR) form as 

requested, provide 

election glossaries

Translated the NMVR 

form into Bengali, Hindi 

and Khmer; issued 

“Election Phrases at a 

Glance” in 9 languages

Strategic Goal 4: Test and Certify

Test and certify voting systems Output Certify and test 

systems 

Certified 5 voting 

systems; managed test 

campaigns for 7 

systems

Produce voting system guidance for use in the 

field

Output Produce Managing 

Election 

Technology

guidance, 

Notices of 

Clarification (NOCs) 

for EAC manuals,

work on VVSG 

revisions, and 

respond to 100% of 

Requests for 

Interpretation 

(RFIs) of voting 

system standards 

within 45 days

Released 

“Considerations for 

Implementing Voting 

Systems with 

Commercial Off-theShelf Products;”

published 3 NOCs for 

the Testing and 

Certification Program 

Manual and Laboratory 

Accreditation Program 

Manual; began VVSG 

2.0 work; 100% 

response to 3 RFIs 

within 45 days, drafted 

one additional RFI
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Program Performance Indicators

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 2016, EAC 

received appropriations in the Salaries and Expenses appropriation of $9.6 million. The 

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

telecommunications, printing, contracts, supplies, subscriptions, and equipment. 

I.C. FINANCIAL RESULTS

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

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

statements. Changes in assets, liabilities, costs, revenues, obligations, and outlays are 

explained; comparisons are made between amounts in FY 2016 to FY 2015; and the 

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

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

position. 

Budgetary Resources 

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

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

For FY 2016, the available budgetary resources were $19.6 million, up from $21.0 million in 

FY 2015. In FY 2016, as mentioned previously, EAC’s appropriations totaled $9.6 million for 

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

Obligations Incurred increased from $6.3 million in FY 2015 to $9.8 million in FY 2016. The 

increase was due primarily to the disbursement of Requirements Payments. The 

Unobligated Balance – Apportioned decreased from $5.1 million in FY 2015 to $1.9 million in 

FY 2016. 

Financial Position

Assets

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

Property, Equipment, and Software; and Other Assets) as of September 30, 2015, compared 
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to $16.8 million in FY 2016. The decrease is largely the result of disbursement of collection of 

an improper Requirements Payment of $2.26 million. 

Liabilities

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

leave) of $765,867 million as of September 30, 2015. Liabilities increased to $983,134 as of 

September 30, 2016. 

Net Position

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

in FY 2015 from $22.0 million, to $15.8 million in FY 2016. Unexpended Appropriations 

decreased primarily due to disbursement of Requirements Payments. 

Results of Operations

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

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

Inspector General; Study, Guide and Assist (Research, Policy, and Programs); and Testing and 

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

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

Fund and Oversee program reports the expenditures for the Requirements Payments and 

the EAC’s grants. Other general agency overhead costs, such as rent, information technology,

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

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

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

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

Reform Programs appropriations) for the EAC was $7.7 million for Fiscal Year 2015,

increasing to $10.8 million in FY 2016. 

Limitations of the Financial Statements

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

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

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

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

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

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

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

U.S. Government, a sovereign entity. 

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

COMPLIANCE

Internal Control Environment

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

support effective internal controls. The EAC believes that maintaining integrity and 

accountability in its programs and operations is critical for good government, demonstrates 

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

responsible leadership, allows for effective delivery of services to customers, and maximizes 

desired program outcomes. 

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

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

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

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

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

complete and timely data are maintained and used for decision-making. 

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

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

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

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

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

disposition, and fraud. 

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

are as follows: 

Federal Manager’s Financial Integrity Act

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

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

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

controls have been identified and implemented, the heads of agencies must annually

evaluate and report on the effectiveness of the internal control (FMFIA Section 2) and 

financial management systems (FMFIA Section 4) that protect the integrity of Federal

programs. 
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Entity-Wide Security Program 

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

improve network services for security, availability, efficiency, and productivity. For example, 

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

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

investigating using GSA cloud email service. 

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

infrastructure for security purposes. The EAC IT staff of two maintains personal computers, 

smart phones, and servers; provides software requested by the EAC staff, remote access 

services, Voice Over Internet Protocol and Interactive Voice Response telecommunications 

tools; and performs vulnerability scans (in addition to 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. EAC has implemented an intranet where 

policies and procedures can be posted in place of use of a shared drive to improve usability 

and communications. 

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

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

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

Understanding for IT services and equipment at $29,764 for FY 2016. 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. 

Audit Follow-Up

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

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

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

September 30, 2016, the EAC has two open operational recommendations to consider. The 

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

responds to recommendations from audits and reviews conducted by the Government

Accountability Office. 

Federal Financial Management Improvement Act

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

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

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

The Fiscal Year 2016 financial statement audit report identified no material weaknesses in

internal control over financial reporting. 

Federal Information Security Management Act

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

end of FY 2016. 

Inspector General Act Amendments of 1988

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

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

reports that present findings on HAVA funds. The principal recipients of HAVA payments and 

grant funds are state governments. 
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Annual Assurance Statement on Internal Control

November 15, 2016

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

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

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

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

control is an integral component of EAC's management, providing reasonable assurance that 

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

reliability of financial reporting, and compliance with applicable laws and regulations.

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 selfassessments. With respect to assessing internal control designed to ensure the reliability of 

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

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

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

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 2016, the auditors found no material weaknesses or significant deficiencies in internal 

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

noncompliance with laws and regulations.

The Commission provides an unmodified statement of assurance that the internal 

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

Financial Integrity Act. 

 Thomas Hicks

 Chairman
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SECTION II

Financial Section

II.A. MESSAGE FROM THE CHIEF FINANCIAL OFFICER

The EAC’s financial statements for FY 2016 are an integral component of the Agency 

Financial Report (AFR). This is the ninth year in its thirteen year operational existence that 

EAC has prepared financial statements and submitted them for audit. This is the eighth year 

the EAC is presenting an AFR in place of the Performance and Accountability Report. The EAC 

presents summarized performance data in this report, and plans on providing detailed data 

in conjunction with the Fiscal Year (FY) 2018 Congressional Justification and FY 2016 Annual 

Performance Report. 

 For FY 2016, EAC received an unmodified (“clean”) audited financial statement opinion, with 

no material weaknesses and no financial audit findings and recommendations. As part of 

continuous internal control improvement, EAC requested a third party review of risks and 

internal controls. Further, staff was provided training related to accruals, procurement 

system requisitions, travel system authorizations and vouchers, and contract administration. 

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

completed by September 30, 2015. Congress enacted legislation in FY 2016 allowing 

disbursement of funds collected as a result of the improper payment from other funding 

sources. The monies were disbursed in May 2016.

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

Annette Lafferty

November 15, 2016
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II.B. INSPECTOR GENERAL’S ASSESSMENT
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II.C. INDEPENDENT AUDITOR’S REPORT

 INDEPENDENT AUDITOR'S REPORT

U.S. Election Assistance Commission

Silver Spring, MD 

Report on the Financial Statements

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

September 30, 2016 and 2015, and the related statements of net cost, changes in net position, budgetary resources, 

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

notes to the financial statements.

Management’s Responsibility for the Financial Statements

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

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

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

misstatement, whether due to fraud or error.

Auditor’s Responsibility

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

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

audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the 

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

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

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

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

statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of 

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

the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial 

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

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

An audit includes test of compliance with provisions of applicable laws, regulations, contracts, and grant agreements 

that have a direct effect on the determination of material amounts and disclosure in the financial statements. The 

purpose was not to provide an opinion on compliance with provisions of applicable laws, regulations, contracts and 

grant agreements and, therefore, we do not express such opinion. An audit also includes evaluating the 

appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by 

management, as well as evaluating the overall presentation of the financial statements.

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

opinion.
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Opinion on the Financial Statements

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

financial position of EAC as of September 30, 2016 and 2015, and its net costs, changes in net position, 

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

accepted accounting principles.

Other Matters

Required Supplementary Information

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

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

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

statements, is required by the Federal Accounting Standards Advisory Board, who considers it to be an 

essential part of financial reporting for placing the basic financial statements in an appropriate 

operational, economic, or historical context. We have applied certain limited procedures to the required 

supplementary information in accordance with U.S. generally accepted government auditing standards, 

which consisted of inquiries of management about the methods of preparing the information and 

comparing the information for consistency with management’s responses to our inquiries, the basic 

financial statements, and other knowledge we obtained during our audit of the basic financial statements. 

We do not express an opinion or provide any assurance on the information because the limited 

procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

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

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

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

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

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

Report on Internal Control Over Financial Reporting

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

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

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

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

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

management or employees, in the normal course of performing their assigned functions, to prevent, or 

detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination 

of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement 

of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A 

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

severe than a material weakness, yet important enough to merit attention by those charged with 

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

this section and was not designed to identify all deficiencies in internal control over financial reporting 

that might be deficiencies, significant deficiencies or material weaknesses. During the audit of the 

financial statements, no deficiencies in internal control were identified that were considered to be 

material weaknesses. However, material weaknesses may exist that have not been identified.

 Report on Compliance and Other Matters

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

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

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

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

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

contracts applicable to EAC. The objective was not to provide an opinion on compliance with those 

provisions of laws, regulations, contracts and grant agreements, and accordingly, we do not express such 

an opinion.

The results of our tests disclosed no instance of noncompliance or other matter that is required to be 

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

 Management’s Responsibility for Internal Control and Compliance

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

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

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

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

 Auditor’s Responsibilities

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

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

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

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

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

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

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

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

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

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

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

testing may not be sufficient for other purposes.

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

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

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

financial statements for the fiscal year ended September 30, 2016. We caution that noncompliance with 

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

sufficient for other purposes.
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Purpose of the Report on Internal Control over Financial Reporting and the Report on 

Compliance and Other Matters

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

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

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

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

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

these reports are not suitable for any other purpose.

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

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

Largo, Maryland 

November 10, 2016
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II.D. FINANCIAL STATEMENTS

ELECTION ASSISTANCE COMMISSION

BALANCE SHEET

AS OF SEPTEMBER 30, 2016 AND 2015

(In Dollars)

2016 2015

Assets:

Intragovernmental

Fund Balance With Treasury (Note 2) $15,415,600 $ 21,932,149

Investments - -

Accounts Receivable - -

Loans Receivable - -

Other (Note 4) 999,687 363,506

Total Intragovernmental 16,415,287 22,295,655

Cash, and Other Monetary Assets - -

Investments - -

Accounts Receivable, Net (Note 3) 20 (30)

Taxes Receivable, Net - -

Loans Receivable and Related Foreclosed Property, Net - -

Inventory and Related Property, Net - -

Property, Equipment, and Software, Net (Note 5) 335,063 500,906

Other - -

Total Assets $16,750,370 $ 22,796,531

Stewardship PP&E 

Liabilities:

Intragovernmental

Accounts Payable $ 63,859 $ 89,124

Debt - -

Other 28,979 22,091

Total Intragovernmental 92,838 111,215

Accounts Payable 332,772 104,271

Loan Guarantee Liability - -

Debt Held By The Public - -

Federal Employee and Veterans' Benefits - -

Environmental Cleanup and Disposal Liabilities - -

Benefits Due and Payable - -

Other (Note 7) 557,524 550,381

Total Liabilities (Note 6) $ 983,134 $ 765,867

Commitments and Contingencies 

Net Position:

 Unexpended Appropriations - Funds from Dedicated Collections (Note 15) $ - $ -

Unexpended Appropriations - Other Funds $15,654,783 $ 21,761,683

Cumulative Results of Operations - Funds from Dedicated Collections - -

Cumulative Results of Operations - Other Funds 112,453 268,981

Total Net Position $15,767,236 $ 22,030,664

Total Liabilities and Net Position $16,750,370 $ 22,796,531
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2016 2015

Program Costs:

Clearinghouse

Gross Costs $ 900,228 $ 753,624

Fund and Oversee

Gross Costs $ 6,343,333 $ 3,354,323

Research, Policy, and Programs

Gross Costs $ 1,268,535 $ 1,209,795

Testing and Certifications

Gross Costs $ 2,327,712 $ 2,348,901

Net Cost of Operations $ 10,839,808 $ 7,666,643

ELECTION ASSISTANCE COMMISSION

STATEMENT OF NET COST

 FOR THE TWELVE MONTHS ENDING SEPTEMBER 30, 2016 AND 2015

 (In Dollars) 
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ELECTION ASSISTANCE COMMISSION

STATEMENT OF CHANGES IN NET POSITION

FOR THE TWELVE MONTHS ENDING SEPTEMBER 30, 2016 AND 2015

(In Dollars)

2016 2015

Cumulative Results of Operations:

Beginning Balances $ 268,981 $ 675,009

Adjustments

Changes In Accounting Principles - -

Corrections of Errors - -

Beginning Balances, as Adjusted 268,981 675,009

Budgetary Financing Sources:

Other Adjustments - -

Appropriations Used 10,505,624 7,021,479

Nonexchange Revenue - -

Donations and Forfeitures of Cash and Cash Equivalents - -

Transfers In/Out Without Reimbursement - -

Other - -

Other Financing Sources (Non-Exchange):

Donations and Forfeitures of Property - -

Transfers In/Out Reimbursement - -

Imputed Financing Sources 177,656 239,136

Total Financing Sources 10,683,280 7,260,615

Net Cost of Operations (10,839,808) (7,666,643)

Net Change (156,528) (406,028)

Cumulative Results of Operations $ 112,453 $ 268,981

Unexpended Appropriations:

Beginning Balances $ 21,761,683 $ 21,657,604

Adjustments

Changes In Accounting Principles - -

Corrections of Errors - -

Beginning Balances, as Adjusted 21,761,683 21,657,604

Budgetary Financing Sources:

Appropriations Received 9,600,000 10,000,000

Appropriations Transferred In/Out (1,500,000) (1,900,000)

Other Adjustments (3,701,276) (974,442)

Appropriations Used (10,505,624) (7,021,479)

Total Budgetary Financing Sources (6,106,900) 104,079

Total Unexpended Appropriations $ 15,654,783 $ 21,761,683

Net Position $ 15,767,236 $ 22,030,664
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 ELECTION ASSISTANCE COMMISSION

 STATEMENT OF BUDGETARY RESOURCES

 FOR THE TWELVE MONTHS ENDING SEPTEMBER 30, 2016 AND 2015

(In Dollars)

2016 2015

Budgetary Resources:

Unobligated Balance Brought Forward, October 1 $ 14,723,380 $ 13,476,424

Adjustment to Unobligated Balance Brought Forward, October 1 - -

Unobligated Balance Brought Forward, October 1, as adjusted 14,723,380 13,476,424

Recoveries of Prior Year Unpaid Obligations 454,338 370,805

Other changes in unobligated balance (3,701,275) (974,442)

Unobligated balance from prior year budget authority, net 11,476,443 12,872,787

Appropriations 8,100,000 8,100,000

Borrowing authority - -

Contract Authority - -

Spending authority from offsetting collections 10,995 23,727

Total Budgetary Resources $ 19,587,438 $ 20,996,514

Status of Budgetary Resources:

Obligations Incurred $ 9,782,372 $ 6,273,134

Unobligated balance, end of year:

Apportioned 1,869,503 5,121,218

Exempt from apportionment - -

Unapportioned 7,935,563 9,602,162

Total unobligated balance, end of year 9,805,066 14,723,380

Total Budgetary Resources $ 19,587,438 $ 20,996,514

Change in Obligated Balance

Unpaid Obligations:

Unpaid Obligations, Brought Forward, October 1 $ 7,208,769 $ 8,675,382

Adjustment to Unpaid Balance, Start of Year - -

Obligations Incurred 9,782,372 6,273,134

Outlays (gross) (10,926,269) (7,368,942)

Actual transfers, unpaid obligations - -

Recoveries of Prior Year Unpaid Obligations (454,338) (370,805)

Unpaid Obligations, End of Year (Gross) 5,610,534 7,208,769

Uncollected payments:

Uncollected Customer Payments, Federal Sources, Brought Forward, October 1 - -

Adjustment to Uncollected Customer Payments, Federal Sources, Start of Year - -

Change in Uncollected Payments, Federal Sources - -

Actual transfers, uncollected customer payments, Federal Sources - -

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

Memorandum entries:

Obligated Balance, Start of Year $ 7,208,769 $ 8,675,382

Obligated Balance, End of Year $ 5,610,534 $ 7,208,769

 
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Budget authority, gross $ 8,110,995 $ 8,123,727

Actual offsetting collections (10,995) (23,727)

Change in Uncollected Payments, Federal Sources - -

Anticipated offsetting collections $ - $ -

Budget Authority, net, (total) $ 8,100,000 $ 8,100,000

Outlays, gross $ 10,926,269 $ 7,368,942

Actual offsetting collections (10,995) (23,727)

Outlays, net, (total) 10,915,274 7,345,215

Distributed Offsetting Receipts - -

Agency outlays, net $ 10,915,274 $ 7,345,215

 

STATEMENT OF CUSTODIAL ACTIVITY

FOR THE TWELVE MONTHS ENDING SEPTEMBER 30, 2016 AND 2015

(In Dollars)

2016 2015

Revenue Activity:

Sources of Cash Collections:

Individual Income and FICA/SECA Taxes $ - $ -

Corporate Income Taxes

Excise Taxes - -

Estate and Gift Taxes

Federal Unemployment Taxes

Customs Duties

Miscellaneous - 2,266,086

Total Cash Collections (Note 15) - 2,266,086

Accrual Adjustments - (2,266,085)

Total Custodial Revenue - 1

Disposition of Collections:

Transferred to Others (by Recipient) - 1

Increase/(Decrease) in Amounts Yet to be Transferred - -

Refunds and Other Payments - -

Retained by the Reporting Entity - -

Net Custodial Activity $ - $ -

The accompanying notes are an integral part of these financial statements.
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II.E. NOTES TO THE FINANCIAL STATEMENTS

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

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

with developing guidance to meet the Help America Vote Act (HAVA) of 2002 requirements, 

adopting voluntary voting system guidelines, and serving as a national clearinghouse of 

information about election administration. EAC also accredits voting system testing laboratories 

and certifies voting systems, and 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.

EAC commissioners are appointed by the President and confirmed by the United States Senate. 

EAC is required to submit an annual report to Congress as well as testify periodically about HAVA 

progress and related issues. The Commission also holds public meetings and hearings to inform 

the public about its progress and activities.

The EAC reporting entity is comprised of General Funds. General Funds are accounts used to 

record financial transactions arising under congressional appropriations or other authorizations to 

spend general revenues. EAC manages Salaries and Expenses, Election Reform Program and 

Election Data Collection Grants General Fund accounts.

EAC has rights and ownership of all assets reported in these financial statements. EAC does not 

possess any non-entity assets.

B. Basis of Presentation

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

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

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

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

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

for the Budget of the United States Government.

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

Management Reform Act of 1994 and the Accountability of Tax Dollars Act of 2002. They have 

been prepared from, and are fully supported by, the books and records of EAC in accordance with 

the hierarchy of accounting principles generally accepted in the United States of America, 
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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 used to monitor and control EAC’s 

use of budgetary resources. The financial statements and associated notes are presented on a 

comparative basis. Unless specified otherwise, all amounts are presented in dollars.

C. Basis of Accounting

Transactions are recorded on both an accrual accounting basis and a budgetary basis. Under the 

accrual method, revenues are recognized when earned, and expenses are recognized when a 

liability is incurred, without regard to receipt or payment of cash. Budgetary accounting 

facilitates compliance with legal requirements on the use of federal funds.

D. Fund Balance with Treasury

Fund Balance with Treasury is the aggregate amount of EAC’s funds with Treasury in expenditure 

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

liabilities and finance authorized purchases. 

EAC does not maintain bank accounts of its own, has no disbursing authority, and does not 

maintain cash held outside of Treasury. Treasury disburses funds for the agency on demand. 

E. Accounts Receivable

Accounts receivable consists of amounts owed to EAC by other Federal agencies and the general 

public. EAC has made advance payments for services provided by other Federal Agencies. When 

the period of performance for these services expires without fulfillment of the contract, a 

receivable is recorded. All unused funds that have not been returned are recorded as 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 two or more years. For general property and equipment, the capitalization 
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threshold is $10,000, with a bulk purchase policy of $100,000. For leasehold improvements and 

software, the capitalization threshold is $25,000. 

Property, equipment, and software acquisitions that do not meet the capitalization criteria are 

expensed upon receipt. Applicable standard governmental guidelines regulate the disposal and 

convertibility of agency property, equipment, and software. The useful life classifications for 

capitalized assets are as follows:

Description Useful Life (years)

Leasehold 

Improvements 4 - 7

Office Furniture 5

Computer Equipment 5

Office Equipment 5

Software 5

G. Advances and Prepaid Charges

On occasion, EAC prepays amounts in anticipation of receiving future benefits. Although a 

payment has been made, an expense is not recorded until goods have been received or services 

have been performed. EAC has prepayments and advances with non-governmental, as well as 

governmental, vendors.

H. Liabilities

Liabilities represent the amount of funds likely to be paid by 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 represent 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 that are not paid until the next fiscal year. EAC also 

accrues liabilities for HAVA Section 251 requirements payments. See the required supplementary 

stewardship information for more information about 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. 
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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 the 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. Non-vested 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 at 100%.

J. Accrued and Actuarial Workers’ Compensation

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

(DOL) addresses any claims brought by EAC employees for on-the-job injuries. DOL bills each 

agency annually as its claims are paid, but payment of these bills is deferred for two years to 

allow for funding through the budget process. Similarly, employees that EAC terminates without 

cause may receive unemployment compensation benefits under the unemployment insurance 

program also administered by DOL, which bills each agency quarterly for paid claims. Future 

appropriations will be used for the reimbursement to DOL. 

K. Retirement Plans

EAC employees participate in either CSRS or 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 
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current period expense reporting. OPM also provides information regarding the full cost of health 

and life insurance benefits. EAC recognizes 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 OPM, as the plan 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. OPM has provided EAC with certain cost factors that 

estimate the true cost of providing the post-retirement benefit to current employees. EAC 

recognizes a current cost for these and Other Retirement Benefits (ORB) at the time employee 

services are rendered. The ORB expense is financed by OPM, and offset by EAC through the 

recognition of an imputed financing source. 

M. Use of Estimates

The preparation of the accompanying financial statements in accordance with generally accepted 

accounting principles requires management to make certain estimates and assumptions that 

affect the reported amounts of assets, liabilities, revenues, and expenses. Actual results could 

differ from those estimates. 

N. Imputed Costs/Financing Sources

Federal Government entities often receive goods and services from other Federal Government 

entities without reimbursing the providing entity for all the related costs. In addition, Federal 

Government entities also incur costs that are paid in total or in part by other entities. An imputed 

financing source is recognized by the receiving entity for costs that are paid by other entities. EAC 

recognized imputed costs and financing sources in fiscal years 2016 and 2015 to the extent 

directed by accounting standards.

O. Grants

EAC administers and oversees the grant making process in connection with federal Requirement 

Payments and, in prior years, grants made to recipient organizations. 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.
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NOTE 2. FUND BALANCE WITH TREASURY

Fund Balance with Treasury account balances as of September 30, 2016 and 2015, were as 

follows:

No discrepancies exist between the Fund Balance reflected on the Balance Sheet and the 

balances in the Treasury accounts. The available unobligated fund balances represent the currentperiod 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, 2016 and 2015, were as follows:

The accounts receivable is primarily made up of moneys due from funds that had been advanced 

for services that were not used, and employee receivables.
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Historical experience has indicated that the majority of the receivables are collectible. There are 

no material uncollectible accounts as of September 30, 2016 and 2015.

NOTE 4. ADVANCES AND PREPAYMENTS

Advances and Prepayments balances as of September 30, 2016 and 2015, were as follows:

NOTE 5. PROPERTY, EQUIPMENT, AND SOFTWARE

The Schedule of Property, Equipment, and Software as of September 30, 2016 was as follows:

The Schedule of Property, Equipment, and Software as of September 30, 2015 was:

Depreciation expense was $212,571 and $393,592 for the twelve months ending September 30, 

2016 and 2015, respectively.

NOTE 6. LIABILITIES NOT COVERED BY BUDGETARY RESOURCES

The liabilities for EAC as of September 30, 2016 and 2015, include liabilities not covered by 

budgetary resources. Congressional action is needed before budgetary resources can be 
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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. 

Federal Employees' Compensation Act liabilities represent the unfunded liability for actual 

workers compensation claims on EAC’s behalf and payable to 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, 2016 were as follows:
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Other liabilities account balances as of September 30, 2015 were as follows:

NOTE 8. LEASES

EAC has no capital leases. EAC relocated from its headquarters office located at 1201 New York 

Avenue NW, Suite 300, Washington, DC, on November 1, 2013. EAC also ended the lease for 

additional space at 1225 New York Avenue NW, Washington, DC, at the same time. EAC entered 

into a new lease for its headquarters office located at 1335 East-West Highway, Silver Spring, MD, 

which expires on or around November 1, 2018.

Schedule of Future Lease Payments

Fiscal Year Building Totals

2017 $ 238,100 $ 238,100 

2018 19,863 19,863

2019 - -

2020 - -

Thereafter - -

Total Future Payments $ 257,963 $ 257,963 

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

options.

NOTE 9. INTRA-GOVERNMENTAL COSTS AND EXCHANGE REVENUE

Intra-governmental costs and revenue represent exchange transactions between EAC and other 

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

Such costs and revenue are summarized as follows:
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NOTE 10. BUDGETARY RESOURCE COMPARISONS TO THE BUDGET OF THE UNITED STATES 

GOVERNMENT

The President’s Budget that will include fiscal year 2016 actual budgetary execution information 

has not yet been published. The President’s Budget is scheduled for publication in February 2018 

and can be found at the OMB Web site: http://www.whitehouse.gov/omb/. The 2017 Budget of 

the United States Government, with the "Actual" column completed for 2015, has been 

reconciled to the Statement of Budgetary Resources and there were no material differences. 
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The budget that includes the fiscal year 2015 actual execution information is as follows:

NOTE 11. APPORTIONMENT CATEGORIES OF OBLIGATIONS INCURRED

Obligations incurred and reported in the Statement of Budgetary Resources in 2016 and 2015 

consisted of the following:

Category B apportionments typically distribute budgetary resources by activities, projects, objects 

or a combination of these categories.

NOTE 12. UNDELIVERED ORDERS AT THE END OF THE PERIOD

For the twelve months ended September 30, 2016 and 2015, budgetary resources obligated for 

undelivered orders are as follows:

NOTE 13. RECONCILIATION OF NET COST OF OPERATIONS TO BUDGET 

EAC has reconciled its budgetary obligations and non-budgetary resources available to its net cost 

of operations:
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NOTE 14. REQUIREMENT PAYMENTS AND GRANT PROGRAMS

The largest of EAC’s 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 and 

carry out other activities to improve the administration of elections for Federal office after certain 

certifications. Section 251 funds are available until expended in the Election Reform Program no 

year account. EAC’s discretionary grants, Accessible Voting Technology (including Military 

Heroes), Logic and Accuracy Grants, College Poll Worker and Mock Election Grants, are 

completed and have been closed. 

During FY 2016, EAC received a Logic and Accuracy Grant payment return in the amount of 

$1,502.54, and an Accessible Voting Technology return of $6,604.84. EAC disbursed $6,454 in 

Section 251 Requirements Payments to both South Carolina and the District of Columbia, and 

$1,584,368 to Massachusetts. The balance of funds was disbursed pursuant to an FY 2016 

appropriations amendment.
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NOTE 15. CUSTODIAL CASH COLLECTIONS

During October 2013, Election Assistance Commission (EAC) disbursed a $2.2 million 

Requirements payment as part of section 251 of the Help America Vote Act (HAVA). The payment 

was made against funds that cancelled September 2013. EAC collected the improper payment 

through Treasury Offset in June, 2015. Funds were disbursed pursuant to an amendment in P.L. 

114-113 in May, 2016, closing the custodial activity.

II.F. REQUIRED SUPPLEMENTARY STEWARDSHIP INFORMATION (UNAUDITED)

Non-Federal Physical Property

Stewardship investments are substantial investments made by the Federal Government for the 

benefit of the nation, but are not physical assets owned by the Federal Government. When 

incurred, they are treated as expenses in determining the net cost of operations. However, these 

items merit special treatment so that users of Federal financial reports know the extent of 

investments that are made for long-term benefit. Such investments are measured in terms of 

expenses incurred for non-Federal physical property, human capital, and research and 

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

recognized the need for states to invest in their election infrastructure. A major provision of 

HAVA, Title III, Uniform and Nondiscriminatory Election Technology and Administration 

Requirements, sets forth requirements for each voting system used in an election for Federal

office. 

The following chart shows expenditures using Federal HAVA funds for voting and 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.

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

Section 102 

Funds $ 19,905,709 $ 36,838,905 $ (163,130) $90,122 $137,401 $ (267,813) $ (10,769) $ 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

Total $281,923,933 $180,086,894 $104,193,029 $40,500,559 $43,554,491 $167,901,663

 

$75,575,384 $110,248,566

Section 102 Funds. Section 102 funds were disbursed to states for the primary purpose of 

replacing punch card or lever voting machines. As such, section 102 funds have been used to 

purchase physical property.

2016 2015

Miscellaneous $ - $2,266,086

Total Cash Collections $ - $2,266,086 
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Section 251 Funds. The HAVA Section 251 Requirements Payments are used to meet the 

requirements of Title III and improve the quality of Federal elections. As such, Requirements 

Payments have been used in part to purchase physical property, and to provide funds to the 

states to carry out other activities to improve the administration of Federal elections. 

Research and Development

The 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.C. 15441). The initiative supported research and development activities to increase the 

accessibility of new, existing, and emerging technological solutions in areas such as assistive 

technologies, interoperability, and design of voting systems. One of the grants provided data on 

accommodations and assistance needed for recently injured military personnel to participate in 

Federal elections. The initiative resulted in over 45 research and development proposals. In FY 

2016, a grantee returned $6,604.84.

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. In FY 2016, a grantee returned $1,520.54.

Fiscal Year 

2011

Fiscal Year 

2012

Fiscal Year 

2013

Fiscal Year 

2014

Fiscal Year 

2015

Fiscal Year 

2016

Accessible Voting Technology 

Initiative $ 270,011 $ 1,630,476 $ 2,809,602 $ 2,429,159 $ - $ (6,605) 

Logic and Accuracy - 275,040 485,600 236,499 (17,638) (1,520)

Total $ 270,011 $1,905,516 $3,295,202 $2,665,658 $(17,638) $ (8,125)
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SECTION III

Other Accompanying Information

III.A. Most Serious Management Challenges Facing the EAC

October 21, 2016 

Memorandum

To: Thomas Hicks

 Chairman, U.S. Election Assistance Commission

From: Patricia L. Layfield 

Inspector General

Subject: Inspector General’s Statement Summarizing the Major Management and 

Performance Challenges Facing the U.S. Election Assistance Commission

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.

This year’s management challenges are the same as last year: (1) performance management and 

accountability and (2) records management. We have noted the progress that EAC has made on 

each of the challenges identified.

If you have any questions or need additional information, please contact me at (301) 734-3104 

or at playfield@eac.gov.

Attachment

cc: Commissioner Matthew Masterson, U.S. Election Assistance Commission 

Commissioner Christy A. McCormick, U.S. Election Assistance Commission 

Executive Director, U.S. Election Assistance Commission

Chief Financial Officer, U.S. Election Assistance Commission

Attachment
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U.S. ELECTION ASSISTANCE COMMISSION

MAJOR MANAGEMENT AND PERFORMANCE CHALLENGES 

Introduction

The Reports Consolidation Act of 2000 requires the Office of Inspector General (OIG) to report annually 

on what it considers to be the most serious management and performance challenges facing the U.S. 

Election Assistance Commission (EAC). Management challenges are derived from cross-cutting issues 

that arise during our regular audit, evaluation and investigatory work. They are also influenced by our 

general knowledge of the agency’s operations and the works of other evaluative bodies such as the 

Government Accountability Office (GAO).

For fiscal year 2016, the OIG is reporting on two management and performance challenges facing the 

EAC. Each of these management challenges have been reported in prior years:

• Performance Management and Accountability

• Records Management

In February of 2008, the OIG issued a report that identified long-standing and overarching weaknesses 

related to EAC operations. The assessment disclosed that the EAC needed to establish:

• Short and long-term strategic plans, performance goals and measurements to guide the 

organization 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 leadershiprole.

Effective management and accountability are integral to any operation and must start with senior 

management. The Help America Vote Act (HAVA), which created EAC, specified that direction and 

management are carried out by four full-time Commissioners, an Executive Director, and General 

Counsel,. Generally, the Commissioners establish policy and the executive director carries out policy by 

administering the day-to-day operations of the organization. The Help America Vote Act requires that 

any action of the Commissioners be carried out by the approval (vote) of at least three. For almost five 

1

CHALLENGE 1: PERFORMANCE MANAGEMENT AND 

ACCOUNTABILITY - ISSUED IN 2008
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 Attachment

years through December 2014, EAC lacked a quorum and from May 2012 until December 2014, EAC 

leadership consisted solely of the Chief Operating Officer, acting as Executive Director. Thus, critical 

business requiring a quorum of Commissioners was not carried out during that period. These conditions 

and some confusion over the roles and responsibilities of the Commissioners and the Executive Director 

resulted in a leadership vacuum, an inability of EAC to focus on key duties, a failure to hold people 

accountable, and a decline in staff morale.

Prior to the loss of its quorum, EAC had taken some actions to address the OIG reported findings. In 

September 2008, the Commission adopted a document titled Roles and Responsibilities of the 

Commissioners and Executive Director of the U.S. Election Assistance Commission Policy. In March 

2009, the Commission adopted the United States Election Assistance Commission Strategic Plan, Fiscal 

Years 2009 Through 2014. However, by the time the next strategic plan was due, the Commission had lost 

its quorum, so no official actions on a new strategic plan were possible.

EAC’s Progress

EAC continues to make progress toward meeting this challenge. The Senate confirmed three new 

Commissioners who were sworn-in on January 13, 2015. The Commissioners issued new policy in 

February 2015, which (1) defined the Commission and its duties1

, (2) provided for the division of duties 

regarding policy making and day-to-day operations, and (3) established an order of succession in the case 

of key vacancies.

In November and December 2015, the Commissioners also hired an Executive Director and a General 

Counsel, respectively. With the EAC’s top level executives in place, the agency began to rethink its 

mission and organization. Management consolidated its corrective action plans for key OIG 

recommendations concerning development and communication of strategic plans and goals and 

documentation of policies and procedures into a plan to develop a comprehensive Communications and 

Clearinghouse Plan. In addition, EAC management continues to restructure assignment of duties, a 

process that began with the hiring of the Executive Director and General Counsel. New positions devoted 

to the direction and operation of the Clearinghouse function have been created and are either filled or in 

the process of being filled. A new webmaster and digital communications specialist has been hired to 

manage EAC’s transition to a new website platform and develop a social media plan that will be part of 

the overall Communications and Clearinghouse Plan.

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. 

1 The February 2015 policy superseded the 2008 Roles and Responsibilities of the Commissioners and Executive 

Director of the U.S. Election Assistance Commission Policy.

2

CHALLENGE 2: RECORDS MANAGEMENT - ISSUED 

IN 2010
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 Attachment

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 an approved system for records retention leaves the EAC vulnerable to suit by information 

requesters and susceptible to waste, fraud, or abuse of its resources and the intentional destruction of 

government records in violation of federal law. The EAC should 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 records.

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 NARA as needed. The schedule for the Research 

Division is pending completion of a records inventory. The schedule for Testing and Certification has 

been submitted to and returned by NARA for wording changes multiple times. Finally, EAC has begun 

to plan for a system to organize and archive EAC emails, which is due to be completed by December 31, 

2016. Staff turnover and the agency reorganization that is in the planning process have caused some 

delays in the completion of the Records Management project.

3
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III.B. IMPROPER PAYMENTS

The Improper Payments Act requires each Federal agency to assess all programs and identify 

which, if any, may be subject to high risk with respect to improper payments. For Fiscal Year 

2016, the EAC does not believe that it has any programs where the erroneous payments could 

exceed 2.5 percent of program payments or $10.0 million threshold (set in OMB Guidance) to 

trigger further agency action. 

III.C. SUMMARY OF FINANCIAL STATEMENT AUDIT AND MANAGEMENT 

ASSURANCES

SUMMARY OF FISCAL YEAR 2016 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
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