Help America Vote Act (HAVA) Program Income and the Upcoming Federal EAC Audit

To:	Texas County Judges, Election Officials, and Financial Officers
From:	Dan Glotzer, Election Funds Manager
Date:	November 5, 2010
Re:	Help America Vote Act (HAVA) Program Income and the Upcoming Federal EAC Audit

As most of you know, the Help America Vote Act (HAVA) established new election-related requirements and authorized funding to the states to assist with compliance. HAVA also created an independent federal agency known as the Election Assistance Commission (EAC) to advise election authorities as well as distribute HAVA payments to the states. In addition, the EAC also has audit authority over the HAVA funding. The purpose of this memo is to remind counties of the following:

The states and its sub-grantees are required to report program income to the EAC annually.
Beginning in December, the EAC will be conducting an audit of Texas’ HAVA expenditures. The audit will likely include visits to various counties, which have yet to be identified.

Attached is a link to our website that describes program income, including how to calculate and report program income to our office (the highlights are outlined below) Program Income Instructions.

Attached is a separate link containing a “to-do” list in preparation for the EAC audit: EAC Audit To-Do List.

If you need assistance and/ or have questions, please contact the Elections Funds Management team (email) or 800-252-8683 (tel.).

Program Income Defined

Program income (PI) is defined as gross income received from a grant-supported activity during the grant period.
- Fees from the use or rental of real or personal property acquired with grant funds.
  e.g., grant-funded equipment that is leased to local entities.
- Include rental fees, transportation fees, programming fees, and administrative fees.

Program Income Uses

Program income (PI) must be accounted for and tracked in the county treasury.
PI can only be used for HAVA-eligible expenditures.
- e.g., PI cannot be transferred into general revenue and used for purposes other than HAVA-related activities.

Program Income Reporting

Gross revenue collected from other entities for the use of equipment or services that are attributable to HAVA funded activities.
The state has opted not to deduct costs incident to the generation of program income.
- Less Risk
Report Periods
- Voting System Accessibility and General HAVA Compliance Grants: October 1 – September 30
- Voting System Replacement Grants: January 1 – December 31
County Financial Officers must report program income annually to SOS no later than November 30 via the online grant system.