AUD UDIT ITING H HAVA F FUND UNDS February 2011 Who o is s - PowerPoint PPT Presentation

U. U.S. E Election n Assi ssist stanc ance C Com ommission Offi ffice of of the Insp nspector G Gene neral al AUD UDIT ITING H HAVA F FUND UNDS February 2011

Who o is s the I e IG and w nd what doe does h he e do? do?  The Ins nspector G Gene neral i is an n inde ndependent o officer of th the E EAC e establ tablished by by HAVA an and th the Ins nspector G Gene neral A Act of 1978 (I 1978 (IG Act).  The he I IG Ac Act and HAV AVA g A give E EAC AC’s ’s IG author hority to: o:  Cond nduct and nd re repo port o on n audits and nd inv nvestigations re related to EAC AC pro programs ( (bo both int nternal and nd ext xternal)  Review and nd c comment on n exi xisting o or r pro propo posed le legisla lation  Recom ommend p policies s and conduct a t activities t s to promot ote eco economy an and ef efficiency in in an and to prev event w was aste, f frau aud and nd abu buse i in n EAC AC pro programs  To To issu ssue se semiannual reports ts to to Con ongr gress a and th the EAC that re repo port o on n fra raud, pro probl blems, abu buses and nd deficiencies in n EAC AC pro programs 2

Who o is s the I e IG and w nd what doe does h he do? do?  Tools giv iven to to th the I IG to G to c car arry out t his is dutie ties:  Acc ccess to al all reco ecords rel elat ated to the e programs an and operations o of the EA EAC (and that trickles down to other organi nization n which a admini nister r HAVA A funds).  Ability to to request any infor ormati tion or or assi ssista tance nec ecessary from an any Fed eder eral, St Stat ate, o or local cal g government or u r uni nit there reof  Auth thority ty to to issu ssue su subpoenas f for or th the prod oduction of of recor ords s  Authority t to ad administer oat aths an and take ake sworn statem emen ents  Dir irect an and prompt acc access to the e EAC Chair air  Authority t to receiv ceive e and inves estig igat ate e complain aints from emp mplo loyees and me d memb mbers of the he p pub ubli lic 3

IG’s P Program ams a and A Activ ivitie ities  Audi uditing H HAVA fundi unding ng p progr grams  30 30 stat ates hav ave been een au audit ited  Audits co cover near early $1. $1.3 3 bi billion  Audi udits ha have r result ulted in:  Questio ioning ning $ 18.1 m million in c n costs  Ident ntif ifying ng $13.1mil illio ion n th that m t mus ust t be us used for p program pu purpo rposes  Auditing E EAC pr programs an and fin inan ancial al s state tatements  Issu Issued 15 15 re repo ports  Int nternal a and nd Externa nal I Inv nvestigations  Conduct cted 3 3 investi stiga gati tion ons: s: 2 2 int nterna nal, 1 1 ext xternal  All r repo ports ar are av avail ailabl able at at www.eac ac.gov 4

EAC EAC S TATE A UDIT DIT P ROGRAM The states for review are selected based  on the amount of money the state has expended,  the results of single audits, and  results of any reviews by the state or other auditors, and  special requests. To date, the primary reason for scheduling an audit of a state has been the amount of money expended by the state. Currently the OIG is using an independent public accounting firm – Clifton Gunderson LLP to conduct audits of state’s use of HAVA funds 5

Meet t the IG he IG and nd his his st staff Curtis Crider, Inspector General Arnie Garza Juliet Hodgkins, Assistant Inspector Counsel to the General for Audits Inspector General 6

AU AUDIT ITIN ING H G HAV AVA A FUNDS S – What to t to exp xpect  These Slides will cover:  The audit process from announcement letter to final report  Identify what topics and funding will be covered by the audit  Identify what information auditors will need  Identify the statutory and regulatory authorities that auditors will be using to evaluate your management and use of HAVA funds  Communications that you can expect from the auditors and IG  Provide some examples of findings from previous audits and how to avoid a similar finding 7

AUDITING HAVA F AVA FUNDS Gettin tting S g Starte ted:  Call th the S Sta tate te  Arr Arrange f for an an au audit st star art d dat ate ( (ab abou out three wee eeks) form th the da date te o of th the e ini nitial c cal all  Send nd for formal al annou announce ncement l letter t to o chief st f stat ate election offi n official 8

AUDITING HAVA F AVA FUNDS Announcemen ement L Letter: r:  St States t the a audit obje jective ves  Ask sks s for for offi office sp spac ace for for two au o auditors  Ask sks s for for telephone ne and and dat ata l a line nes s for for two o comput uters  Li List sts t the infor nformat ation w n we plan an to o exam amine ne 9

AUDITING HAVA F AVA FUNDS Informatio ation t to be exam xamined:  All ll audit r repo eports a and othe her rev eview ews r rela lated to the O Offi ffice’s ’s fi financ nancial al m manag anagement sy syst stems and t and the H HAVA prog ogram am for for the l last ast 5 5 year ars. s.  Poli lici cies es, pr proced cedures a and regu gula lations f for the he Offi ffice’s ac accou count nting ng, p perso sonne nnel, p pay ayroll, property, y, a and pro rocur urement s systems a as they relate to to th the state’s ’s ad admini nistration of n of HAVA fund fu nds and and prog ogram ams. 10

AUDITING HAVA F AVA FUNDS Informatio ation t to be exam xamined:  An An org organizational c cha hart rt of of the he offi ffice and a nd a l list of a all ll full ull a and nd part-time e emplo loyees o of the offi ffice in indic icat ating th those e empl ployees w whose s sal alar ary is is fin inan anced w with ith HAVA f funds. (If appl applic icabl able, al also id identi tify o oth ther emplo loyees f from t the state tate wh whose s sala lary i is paid i d in n full ull or in in par part w t with ith HAVA f funds).  Time s sheets/certifications o of wo work p performed f for full ull - tim time and nd par part-tim time HAV AVA e A employ oyees.  Inv nventory li list o of all ll equi quipment p pur urchased wi with H HAVA fund unds. 11

AUDITING HAVA F AVA FUNDS Infor formation n to b be E Examine ned: d:  Cont ntract a and nd procurement f file les for or procur urement nts ( (i.e. voter r regi gistration s system a and nd ele lection s systems).  Source/sup upporting d ng document nts f for payment nts m made with HA HAVA VA f funds.  List o of all ll agr greements p providing H HAVA funds unds t to countie ties.  County f fin inan ancial al r repo ports s subm bmit itted to to th the offi ffice. 12

AUDITING HAVA F AVA FUNDS Informatio ation t to be exam xamined:  Stat ate l law aws t s that at est stab ablished and and impac act t the election fu n fund nd.  Descriptio iption o of offi ffice’s me methods o of f acco ccounting fo for any y inc ncome, s suc uch a as revenu nue f from e equi quipment le leases, ge gene nerated b by HAVA progr grams.  Ide dent ntification o n of the expend nditure o of fund unds i in n fiscal year 2000 f 2000 for the le level l of effort f for section 251 251-ty type pe ac activ tivities an and th the suppo pport f for th those e expe penditures. . 13

AUDITING HAVA F AVA FUNDS Informatio ation t to be exam xamined:  Appr ppropriat ations an and expe penditure r repo ports f for S State tate fund unds us used t d to maint ntain t the le level o l of expens nses f for ele lections a at le least e equa qual t l to the amoun unt e expende nded i in n fiscal year 2000 2000 and nd to meet t the f five p percent matching r requi quirement f for section 251 251 requi quirements pay payments.  Source/sup upporting d ng document nts f for the maintena nance of e f effo ffort and ma match ching contribut utions ns i includi ding a ng any pl plan an f fil iled w with ith th the EAC. 14

AUDI UDITING H HAVA VA FUN UNDS DS Cri riteri eria f for or Ev Evalua luation: HAVA VA Id Iden entifies ac activ ivities f for whic ich funds may may be e used ed an and cond ndit itio ions ns f for receipt o of funds, s such as matching ing, maintena nanc nce o of effort, an and el elec ection f fund r req equiremen ents f for 251 pay aymen ments. Ot Othe her Fede deral l Gui Guida dance U.S. Of Offic ice o of Man anag ageme ment an and Bu Budget et Cir ircular ar A A-87, Cost P Pri rinciples f for r State, L Local al, a and Indian T ian Tribal G Governm nment nts ( (2 CFR 225). EAC Gui C Guida dance HAV AVA FUNDS MAN MANAGING, R RECORDKEEPING, R REPORTING, AN AND AUDIT ITIN ING and EAC a advisorie ies, o opinio nions ns a and f frequent ntly asked questio ions ns. Common R n Rule, Uniform Adminis inistrat ativ ive R Requir irement nts for Grants a and Cooperat ativ ive Agreement nts w with S State a and L Local al G Governm nment nts (41CF CFR 105-71). 15