Administration of Payments Received Under the Help America Vote Act by the Maryland State Board of Elections

EAC OIG audited $49.7 million in funds received by the Maryland State Board of Elections under the Help America Vote Act. The objectives of the audit were to determine whether Maryland 1) expended HAVA payments in accordance with the Act and related administrative requirements and 2) complied with the HAVA requirements for replacing punch card or lever voting machines, for establishing an election fund, for appropriating a 5 percent match for requirements payments, and for maintaining state expenditures for elections at a level not less than expended in fiscal year 2000. Specifically, we audited expenditures from May1, 2003 through December 31, 2005, and reviewed controls to assess their adequacy over the expenditure of HAVA funds. We also evaluated compliance with certain HAVA requirements for the following activities: accumulating financial information reported to EAC on the Financial Status Reports (standard forms number 269); accounting for property; purchasing goods and services; accounting for salaries; charging indirect costs; and spending by counties. We also determined whether Maryland had complied with the requirements in HAVA applicable to Section 251 requirements payments for: establishing and maintaining the election fund; sustaining the State's level of expenditures for elections; and appropriating funds equal to five percent of the amount necessary for carrying out activities financed with Section 251 requirements payments.