Help America Vote Act HAVA HAVA Funding Update

Help America Vote Act (HAVA) HAVA Funding Update & CARES Act Grant Close-out Instructions 12/20/2021 Texas Secretary of State 1

Federal Awards Approx. $85 MM Total 2020 HAVA CARES Act Grant - $24, 546, 840* 2018 HAVA Election Security Grant - $23, 252, 604** 2020 HAVA Election Security Grant - $26, 064, 574*** *Requires 20% match totaling $4, 909, 368 **Requires 5% match totaling $1, 162, 630 ***Requires 20% match totaling $5, 212, 915 12/20/2021 Texas Secretary of State 2

Period of Availability for HAVA Grants GRANT AGREEMENTS Grant Period Start Date Grant Period End Date 2020 HAVA CARES Act Grant 3/28/2020 11/30/2020 HAVA Election Security Grant 12/21/2019 12/31/2022 12/20/2021 Texas Secretary of State 3

County Participation HAVA CARES Act Grants: Approx. 200 HAVA Election Security Grants: Approx. 180 Election Security Assessments: 254 Reports Delivered 12/20/2021 Texas Secretary of State 4

Election Security Funding 12/20/2021 Texas Secretary of State 5

HAVA Election Security Grant Details • Each county qualifies for $120, 000 • The first $40, 000 does not require county match • Cumulative expenditures exceeding $40, 000 require 20% county match • E. g. , If a county applies for $60, 000 in total funding, $20, 000 must be matched at 20%, which would total $4, 000 12/20/2021 Texas Secretary of State 6

HAVA Election Security Grant Match • The maximum match amount is $16, 000 • If a county cannot secure the full $16, 000, apply for what is available • For instance, if a county can obtain $5, 000 in match, apply for $65, 000 in federal HAVA funds ($40, 000 federal funds with no match required plus $25, 000 requiring $5, 000 in matching funds) • Although the grant period has been extended, SOS may impose an application deadline 12/20/2021 Texas Secretary of State 7

HAVA Election Security Eligible Expenses • Five Purpose Areas: 1) Voting Equipment (paper verifiable), 2) Election Auditing (limited to Sec. 127. 202, Tx Elec Code), 3) Cyber Security, 4) Communications, 5) Voter Registration System (security enhancements) • Must be in response to an election security need • Outside of the county budget • Consistent with all applicable federal and state laws • Incurred between 12/21/2019 and 12/31/2022 (retroactive payments are allowable if the expense meets the aforementioned criteria) 12/20/2021 Texas Secretary of State 8

Will there be additional funds? • US Congress House Appropriations Committee released fiscal year 2022 Financial Services and General Government Funding Bill, which includes $500 MM for Election Security – it is not clear if this will pass • The 87 th Texas Legislature appropriated $34 MM to retrofit or otherwise upgrade voting systems to be paper-auditable • State funds only become available if the Secretary of State certifies by November 1, 2021 that sufficient federal funding is not available 12/20/2021 Texas Secretary of State 9

HAVA CARES Act Close-out 12/20/2021 Texas Secretary of State 10

HAVA CARES Act Close-out Process • SOS will be commencing process of closing out the grant with the federal government (US Election Assistance Commission) • Counties will need to close-out its sub-grant with SOS q Counties (the single point of contact) will use the same system used to report expenditures to close-out the grant q If further adjustments need to be made to the final expenditures, contact the Election Funds Management team q The system will calculate funds due back to the state q For counties that used 2020 Chapter 19 funds to meet the match requirement and did not expend all of it, the balance will be returned to the county’s 2020 Chapter 19 balance once funds are returned to SOS 12/20/2021 Texas Secretary of State 11

HAVA CARES Act Close-out - Equipment • The following will need to be indicated for equipment: q The county did not purchase any equipment with a current per unit market value over $5, 000 OR q The county will continue to use the equipment for HAVA purposes q The equipment will be used for other federally funded programs q The county will not continue to use the equipment for HAVA or other federal purposes and request disposition guidance q The equipment has been disposed of in accordance with state laws and procedures 12/20/2021 Texas Secretary of State 12

HAVA CARES Act Close-out - Supplies • The following will need to be indicated for supplies: q The county does not have any unused supplies with an aggregate current value over $5, 000 OR q The county will continue to use the supplies for HAVA purposes - a list of the unused supplies will need to be attached q The county will transfer the supplies to another non-federal entity for use by another federally funded program - a list of the unused supplies will need to be attached q The county has unused supplies and request permission to transfer the supplies to (supply the name of the entity) - a list of the unused supplies will need to be attached 12/20/2021 Texas Secretary of State 13

HAVA CARES Act Close-out - Reminders • Retain all records for a period of three years after SOS submission of the final expenditure report to the federal government • For equipment purchases, property records must be maintained that include a description of the property • Serial number or other identification number, the source of funding for the property, who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property • The grant requirements, including the two listed above, are outlined in Title 2 C. F. R. Subtitle A, Chapter II, Part 200 -Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 C. F. R. § 200) 12/20/2021 Texas Secretary of State 14

Contact Election Funds Management Dan Glotzer Dglotzer@sos. texas. gov Mary Eliasen Meliasen@sos. texas. gov Amanda Grossman Agrossman@sos. texas. gov EFMAdmin@sos. texas. gov 512 -463 -5966 12/20/2021 Texas Secretary of State 15