Federal Reports

EAC OIG audited $39.2 million in funds received by the South Carolina Election Commission under the Help America Vote Act. The objectives of the audit were to determine whether South Carolina (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 stat expenditures for elections at a level not less than expended in fiscal year 2000. Specifically, we audited claimed expenditures from July 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 administrative 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 South Carolina 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 $134.8 million in funds received by Secretary of the Commonwealth of Pennsylvania under the Help America Vote Act. The objectives of the audit were to determine whether Pennsylvania (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 1999. Specifically, we audited reported outlays shown on page 2 and reviewed controls to assess their adequacy over the expenditure of HAVA funds. We also evaluated compliance with certain administrative 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 Pennsylvania 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.

The Daily Coal Report (DCR) is used to identify variances between vendor/terminal and TVA shipment weights and to graph the identified variances.We performed an inspection to verify that TVA and vendor/terminal shipment weights were accurately entered into the DCR for the period December 1, 2005, through May 3, 2006.Of the 482 tested coal shipments from nine fossil plants, 33 shipments were not recorded in the DCR in accordance with TVA weight documentation and/or vendor/terminal bills of lading.We also found that (1) significant variances exist between TVA coal weights and vendor/terminal shipment weights, based on the weights recorded in the DCR and (2) some practices are inconsistent between fossil plants.We recommended that the general manager, Fossil Fuel Supply, consider developing a standard process and procedure which: (1) defines how to account for missing or extra rail cars, (2) specifies the requirements for the tracking, reconciliation, and reporting of missing and extra rail cars, and (3) emphasizes that comments must be entered in the DCR when events occur that affect TVA and/or vendor/terminal weights.TVA management agreed with our findings and has initiated or plans to initiate corrective action. Summary Only