HAVA FUNDS MANAGING, RECORDKEEPING, REPORTING & AUDITING

1. HAVA FUNDSMANAGING, RECORDKEEPING, REPORTING & AUDITING FOR COUNTIES MARCH 14, 2006 SBOE TRAINING Don Wright

2. Limited Use of Title I Funds • Title III requirements • Improving the administration of Federal elections • Educating voters on voting rights, voting procedures and voting technology • Training election officials, workers, and volunteers • Developing state plan • Improving, acquiring, leasing or replacing voting equipment • Improving the accessibility and quantity of polling places • 800 hotlines for voters to obtain election information and/or report complaints of fraud or voting rights violations

3. Title I Spending Restrictions • OMB Circulars • A-87 Cost Principles for State, Local and Indian Tribe Governments • A-122 Cost Principles for Non-Profit Organizations • Common Rule (GSA) • Cash Management Improvement Act (CMIA) • HAVA restrictions in Sections 101(b) and 102(a)(2) • Restrictions contained in SBOE Grant Guidelines

4. Limited Uses of Title II Funds • Title III Requirements • Voting Systems Standards • Provisional Voting • Voter Information • State-wide Voter Registration Database • Voter Identification for First-time Voters • Improve the administration of Federal elections (only after completion of Title III requirements or not more than amount state could receive as its minimum payment)

5. Title II Spending Restrictions • OMB Circulars • A-87 Cost Principles for State, Local and Indian Tribe Governments • A-102 (Common Rule) • A-122 Cost Principles for Non-Profit Organizations • HAVA restrictions • State plan restrictions • Restrictions contained in SBOE Grant Guidelines

6. Managing HAVA Funds DO NOT ……. USE HAVA FUNDS CONTRARY TO GUIDELINES CONTAINED IN GRANTAPPLICATIONS OR UPON YOUR PRIOR ASSERTATIONS TO THE SBOE IN DOCUMENTS RELATED TO YOUR GRANT REQUEST

7. Managing HAVA Funds DO NOT ……. • Use HAVA funds when the principal purpose of the transaction is not to accomplish a purpose authorized by the provisions in HAVA under which the payment was made. • Use HAVA funds for alcoholic beverages or cost of entertainment. • Use HAVA funds for litigation or the payment of fines.

8. Managing HAVA Funds DO NOT ……. Make any HAVA award or permit any HAVA award (sub-award or contract) at any tier to any person that is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs under Executive Order 12549, ``Debarment and Suspension.'‘

9. Checking the Barred Vendor List • The federal government publishes a list of parties excluded from federal procurement and non-procurement programs which identifies those parties excluded throughout the U.S. Government from receiving federal contracts or certain subcontracts and from certain types of federal financial and non-financial assistance and benefits. State and county agencies should refer to this list if procurement projects involve federal funds and make a determination if federal policies on this matter apply to the project. The federal list may be accessed at: http://epls.arnet.gov/.

10. Managing HAVA Funds Do • Only use HAVA funds to pay costs that are reasonable and necessary for the performance and administration of the program or grant under which the funds were awarded. • Only use HAVA funds to pay costs that comply with the State plan, a State grant, and applicable State law and OMB circulars.

11. Managing HAVA Funds Do (cont.) • Establish internal financial controls. • Develop a detailed implementation plan for all HAVA projects, grants and activities • Designate individuals responsible for these activities and for ensuring implementation of the plan.

12. Managing HAVA Funds Do (cont.) • Use procurement procedures that reflect applicable State and local laws and regulations, provided that the procurements conform to applicable Federal law and standards: • Use a competitive bid process, where possible, restricting the use of exemptions to this process to those situations that truly justify the need for them. • Implement written standards of conduct to avoid the appearance or the occurrence of a conflict of interest.

13. Managing HAVA Funds Do (cont.) • Take all necessary affirmative steps to assure that minority firms, women's business enterprises, and labor surplus area firms are used when possible. • Give preference in procurement to the purchase of specific products containing recycled materials identified in guidelines published by the U.S. Environmental Protection Agency when possible.

14. Managing HAVA Funds Do (cont.) • Specify in any announcement of the awarding of contracts with an aggregate value in excess of $500,000 or more the amount of Federal funds that will be used to finance the acquisitions. • Follow control procedures for the review and approval of contracts to ensure that contracts include a detailed description of the scope of work, specific services and work products, and performance measures. • Maintain a contract administration system that ensures that contractors perform in accordance with the terms, conditions, and specifications of their contracts or purchase orders.

15. Managing HAVA Funds Do (cont.) • Remember to credit refunds, rebates, discounts, and adjustments for overpayments or erroneous charges. • Contact the SBOE for approval in any major changes in items to be purchased or replacement of an item approved for purchase with another. • Return unused HAVA funds to the SBOE

16. Managing HAVA Funds States must: • Follow Federal and State law and procedures when administering HAVA funds and awarding them to local jurisdictions or sub-awardees. • Ensure that recipients are aware of requirements imposed upon them by State and Federal statute, and OMB circulars. • Inform Counties of CFDA Numbers

17. CATALOG OF FEDERAL DOMESTIC ASSISTANCE (CFDA) NUMBERS Your budget office, audit office, or other county finance office may ask you for The Catalog of Federal Domestic Assistance numbers for HAVA funds.CFDA # 39.011 for section 101 and 102 funds (Title I funds)CFDA # 90.401 for section 251 requirements payments. (Title II funds) THIS IS THE SOURCE OF THE CURRENT VOTING SYSTEMS GRANTS Department of Health and Human Services HAVA Grants (used in most accessibility grants CFDA # 93.617

18. Keeping Records of HAVA Funds HAVA section 902 requires each recipient of HAVA funds to keep records consistent with sound accounting principles to facilitate an effective audit. Use Common Sense…can the records you keep show what was done with the funds?

19. Keeping Records of HAVA Funds Fiscal control and accounting procedures must be sufficient to: • Permit preparation of reports by the SBOE required by EAC, HHS, and the statutes authorizing the payment or grant; and • Permit the tracing of funds to a level of expenditures adequate to determine that funds have not been used in violation of Federal restrictions (HAVA and OMB) and that they comply with the State plan and grants.

20. Keeping Records of HAVA Funds Accounting records must be supported by source documents, such as: • Cancelled checks • Invoices and paid bills • Payrolls and employee time sheets • Contract and sub-award documents • Records sufficient to detail history of procurements

21. HAVA Audit Authority • Section 902(b)(1) – Single Audit • Section 902(b)(3) – Mandatory one-time audit by GAO • Section 902(b)(6) – Special audit by EAC • Section 902(c) – Recoupment of funds by Comptroller General (proportion of amounts not in compliance; amount of overpayment)

22. EAC Special Audit Process • The EAC Acting Inspector General is Roger La Rouche • EAC determines the need for additional review and information. If additional information is needed, consider voting to conduct a special audit, such as the Special Audit of the California Secretary of State for misuse of HAVA funds. • If the discrepancies are evident and are sufficiently identified by the existing information, EAC will act to refer the discrepancy to the appropriate enforcement agency, whether that is the U.S. Department of Justice, the Comptroller General, or other appropriate State or Federal enforcement agency.

23. North Carolina Auditor • Just completed Single Audit of HAVA funds use during the North Carolina 2004-05 FY. • Will be starting again this December, 2006 another Single Audit for the North Carolina 2005-06 FY. PLEASE SUBMIT HAVA REPORTS TO THE SBOE WHEN THEY ARE DUE

24. SHARE WITH YOUR COUNTY • Share this information with your county budget, finance, and audit office. • Help them understand HAVA and the HAVA grants • Make sure they understand HAVA grants only SUPPLEMENT budgeted county election funds and can not SUPPLANTsuch funds.

25. PROVIDE THE SBOE • TIMELY REPORTS OF HAVA FUNDS AS REQUIRED BY THE TERMS OF GRANTS • any performance or financial audits of your office conducted by or on behalf of any governmental body, including any part of a larger audit that pertains to your office