Audit of the U.S. Election Assistance Commission's Financial Statements for Fiscal Years 2011 and 2010

Strengthen the agreement with the service provider to ensure that financial statements and supporting documentation are required to be provided to EAC and its auditors in a timely manner.

Develop specific information requirements and checklists that the service provider must complete and provide to EAC to support interim and year-end financial statements.

Obtain assurances from the service provider that necessary controls are in place and operating effectively concerning the validation of posting models and changes made to the posting models.

Review all 2011 fiscal year JVs that have not been approved by EAC to ensure that the entries are proper. Require the service provider to provide documentation that supports it meets published control procedures relating to preparation of JVs.

Ensure that the service provider corrects the problem with its undelivered order aging report.

Ensure that EAC’s internal controls over financial reporting, including strengthened oversight over its accounting service provider, are re-established.

Require the service provider to correct this posting model error, and identify and correct all transactions processed under this posting model during this fiscal year.

Require the service provider to establish automated funds controls over apportionments made through a continuing resolution. Until this change is made to the accounting system, ensure compensating controls at the service provider and EAC are developed.

Review the control breakdowns that occurred within EAC and develop additional controls or processes, as appropriate, to ensure that transactions are reviewed and approved by all required individuals.