Federal Reports

EAC OIG audited $184.1 million in funds received by the Texas Secretary of State under the Help America Vote Act. The objectives of the audit were to determine whether Texas (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 May 1, 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 Texas had complied with the requirements in HAVA applicable to Section 251 requirements payments for: establishing and maintaining the election fund; appropriating funds equal to five percent of the amount necessary for carrying out activities financed with Section 251 requirements payments; and sustaining the State's level of expenditures for elections.

EAC OIG audited $143.5 million in funds received by the Illinois State Board of Elections under the Help America Vote Act. The objectives of the audit were to determine whether Illinois (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, and for maintaining state expenditures for elections at a level not less than expended in fiscal year 2000. Specifically, we covered fiscal years 2003 through 2006 and reviewed controls to assess their adequacy over the expenditure of HAVA funds and 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 Illinois had complied with the requirements in HAVA for: establishing and maintaining the election fund; appropriating funds equal to five percent of the amount necessary for carrying out activities financed with Section 251 requirements payments; and sustaining the State's level of expenditures for elections.

To obtain further information, please contact the OIG Office of Counsel at OIGCounsel@oig.treas.gov, (202) 927-0650, or by mail at Office of Treasury Inspector General, 1500 Pennsylvania Avenue, Washington DC 20220

This report is Limited Official Use. To obtain further information, please contact the OIG Office of Counsel at OIGCounsel@oig.treas.gov, (202) 927-0650, or by mail at Office of Treasury Inspector General, 1500 Pennsylvania Avenue, Washington DC 20220.

EAC OIG issued this memorandum to alert the EAC Executive Director to noncompliance with the Federal Information Security Management Act (FISMA).