Help America Vote Act of 2002: Audits and Recovery of Funds
Highlights
The Help America Vote Act of 2002 provides that if the Comptroller General determines as a result of an audit that a fund recipient is not compliant with program requirements, or that an excess payment has been made, the recipient must return a certain portion of the payment. However, the Comptroller General need not make such a determination before a paying agency may audit and take corrective action on questioned costs. This provision of the Act does not supersede the independent statutory authority of agencies to audit and take corrective action on the use of federal funds. If the Comptroller General were to make a determination under the Act as a result of any audit he conducts, he will make an appropriate recommendation for the agency to determine liability and to take corrective action.
B–306475, Help America Vote Act of 2002: Audits and Recovery of Funds, January 30, 2006
Mr. Roger La Rouche
Acting Inspector General
Election Assistance Commission
Subject: Help
Dear Mr. La Rouche:
You requested information on how the Government Accountability Office (GAO) will implement section 902(c) of the Help America Vote Act of 2002 (HAVA). Pub. L. No. 107-252, sect. 902(c), 116 Stat. 1666, 1728 (
HAVA authorizes various federal agencies to make grants or provide payments of federal funds to the states and various other entities for purposes related to election reform. See, e.g., Pub. L. No. 107-252, sect. 101, 116 Stat. 1666, 1668-69 (
Section 902 of HAVA has a number of subsections relevant to this discussion. Subsection 902(b)(1) authorizes each agency making a grant or payment to audit any recipient of the funds. Pub. L. No. 107-252, sect. 902(b)(1), 116 Stat. 1666, 1727 (
In addition to the provisions of section 902(b) for federal audits of HAVA funds discussed above, section 902(c) provides:
If the Comptroller General determines as a result of an audit conducted under section 902(b) that—
(1) a recipient of funds under this Act is not in compliance with each of the requirements of the program under which the funds are provided; or
(2) an excess payment has been made to the recipient under the program,
the recipient shall pay to the office which made the grant or payment involved a portion of the funds provided which reflects the proportion of the requirements with which the recipient is not in compliance, or the extent to which the payment is in excess, under the program involved.
Pub. L. No. 107-252, sect. 902(c), 116 Stat. 1666, 1728 (codified at 42 U.S.C. sect. 15542(c)).
Because this provision refers to audits specified in section 902(b), you have inferred that the authority of agencies making HAVA payments to take corrective action is limited by section 902(c) to when the Comptroller General makes determinations. However, we cannot draw such an inference.
The audit and recovery provisions in section 902 are not the exclusive authority for audits of HAVA funds and corrective actions resulting from such audits. While section 902(b) provides GAO, the Commission, and agencies making HAVA payments with the authority to audit the recipients of those funds, other audit authorities also exist on which an agency may rely to audit recipients' use of HAVA funds. For example, the Commission is a designated federal entity under the Inspectors General Act of 1978; therefore the Commission has an inspector general with the authority to conduct audits of HAVA funds paid by the Commission. See 5 U.S.C. App. sections 8G(a)(2), (g), 4(a); 13 Op. Off. Legal Counsel 54, 66 (1989). In addition, there is no indication either in the language or the structure of section 902 that Congress intended that HAVA supersede the audit authority of other inspectors general of federal agencies making HAVA payments, such as the Department of Health and Human Services,[3] under the Inspector General Act. See 5 U.S.C. App. sect. 11(2). Further, in cases where a state expends in excess of $500,000 of federal awards, the state must undergo a single audit or a program specific audit to comply with the Single Audit Act, as amended (Single Audit Act). 31 U.S.C. sect. 7502(a)(1)(A); OMB Cir. No. A–133, 68 Fed. Reg. 38,401, sect. ___ .200 (
Likewise, the head of an executive agency has independent authority to collect a claim of the
The recovery provision of section 902(c) does not supersede these preexisting authorities of agencies awarding federal funds to take corrective action, as section 902 can be construed consistently with these authorities and there is no evidence in the statute or the legislative history of HAVA that Congress intended for HAVA to supersede these authorities. It is a general principle of statutory construction that specific and general statutes covering the same subject should be construed consistently to give each statute maximum effect when possible. Helvering v. Credit Alliance Corp., 316
We read section 902(c) to apply only to Comptroller General audits conducted under 902(b), not to other audits conducted under section 902(b) or other authorities.
Section 902(c) provides notice to recipients that they must repay funds to the granting agency if the Comptroller makes a determination based on an audit under section 902(b). The word if connotes only a condition precedent to a recipient's requirement to repay HAVA funds if the Comptroller General conducts an audit and makes a determination that a recipient of HAVA funds is not in compliance with program requirements or the recipient received an excess payment. It is not an instruction to the Comptroller General to review each audit under section 902(b), but rather, prescribes the results of audits the Comptroller General conducts. The framework Congress established for audits under section 902(b) suggests only that Congress sought to ensure opportunities for the Comptroller General to make findings under the criteria set out in section 902(c). Agencies have independent authority to take corrective action related to funds paid under HAVA when the agency determines that a recipient has received an excess payment or has improperly used funds.
Interpreting section 902 as compatible with, rather than superseding, preexisting authority for administratively adjudicating allowable grant costs avoids potential constitutional problems. See Bowsher v. Synar, 478
If GAO were to determine as part of any GAO audit that a recipient of HAVA funds is not in compliance with program requirements or that the recipient received an excess payment, then GAO would make appropriate recommendations to the paying agency. Each paying agency must determine the liability of the recipient with respect to the HAVA funds and take any necessary corrective action available to the agency under law.
Sincerely yours,
/signed/
Anthony H. Gamboa
General Counsel
cc: Jeanette M. Franzel, Director
Financial Management and Assurance
DIGEST
The Help America Vote Act of 2002 provides that if the Comptroller General determines as a result of an audit that a fund recipient is not compliant with program requirements, or that an excess payment has been made, the recipient must return a certain portion of the payment. However, the Comptroller General need not make such a determination before a paying agency may audit and take corrective action on questioned costs. This provision of the Act does not supersede the independent statutory authority of agencies to audit and take corrective action on the use of federal funds. If the Comptroller General were to make a determination under the Act as a result of any audit he conducts, he will make an appropriate recommendation for the agency to determine liability and to take corrective action.
[1] GSA paid the funds to
[2] GSA informed
[3] Under HAVA, the Secretary of Health and Human Services (HHS) is required to make payments to each eligible state and local government unit to ensure voting access for persons with disabilities. Pub. L. No. 107-252, sect. 261, 116 Stat. 1666, 1698 (