Mailing Address Po Box 27255 Raleigh NC 2761 1-7255 State Board of Elections Ethics Enforcement Fax 9l9 7l5-Ol35 July 16 2018 To Members of the Election Assistance Commission From Kimberly Westbrook Strach Executive Director Re 2018 HAVA Security Grant Budget Narrative North Carolina has been working to address the most recent election security concerns and vulnerabilities since we rst learned of them in late 2016 We have been pleased with our relationship with the Department of Homeland Security and the services they continue to provide to North Carolina The funding provided to North Carolina in the Omnibus Appropriations Act of 201 8 could not have come at a better time We have been carefully considering how to most efficiently and effectively use the election security mding to complement existing efforts to safeguard elections Our budget for federal and non-federal security grant dollars is below ELECTION SYSTEM 84 $6 232 955 0 Modernizing our Statewide Elections Information Management System This system includes the statewide voter registration system election event management absentee voting early voting Election Day voting provisional voting voting site management board administration and election night reporting This system is utilized by all 100 of our county boards of elections The current system is more than a decade old and is decentralized requiring hardware and infrastructure maintenance in all 100 counties For this modernization project we have budgeted $5 340 338 in federal grant mds and $159 662 in state matching funds 0 Understanding that our new Statewide Elections Information Management System will not go live until late 2019 we must do everything possible to bolster the security of our state or man carolma 2018 HAVA Security Grant Budgetuamtlvemsgez upcoming elections We have budgeted $532 965 in federal grantfunds and $200 000in 0 Over the past two election cycles we have developed a post-election audit program to identify any discrepancies that could am an election As a result ofthe new known securityconcems Weareinthe process ofhiring two full-time senior business to work on election security and integrity audit initiatives The ve-year budget 'orn federal grants is $1 073 835 This mchnology A Chief Information Security omcer CISO will cilitste continual monitoring of technical guidancetothe 100 county boards of elections Five-year budget from federal grant funds is $1 018 067 0 of elections are undergoing security assessments We will provide sub grantsto county elections boards to address identi ed security needs Training isen electioninNorthCarolina Five-yearbudgetfor acute at norm Lemma 2018 HAVA Security Grant Budget Narrative page 3 We are also implementing a Cyber Advisory Panel made up of nationally-recognized gram mls is $750 000 0 We will implement security neeommende ons provided by federal state and NGO perm matching funds 2018 HAVA ELECTION SECURITY GRANT Budget Information CFDA II 90 404 Non-Construction Program Name of Organization INC State Board of Elections 8 Ethics Enforcement I If yes please provide the following information 0 Period Covered by the Indirect Cost Rate Agreement C Approving Federal agency D If other than Federal agency please specify E The Indirect Cost Rate is Budget Period Start 3f23l2018 SECTION A BUDGET SUMMARY Consolidated Budget for term' project term-- Budget Period End FEDERAL s NON-FEDERAL FUNDS Match up to 5 years as de ned by grantee PROGRAM CATEGORIES It ll-fig 12 25 ng id Cyber Security Communications 0 Other Other TOTALS Fed Total BUDGET CATEGORIES Systems 1 PERSONNELlincluding fringe 1 073 835 00 1 013 067 00 2 091 902 00 20% 2 EQUIPMENT 5 532 965 00 532 965 00 5% 3 SUBGRANTS- tolocal voting jurisdictions 5 1 500 000 00 1 500 000 00 14% 4 TRAINING - - 0% 5 All OTHER COSTS 5 5 340 338 00 908 032 00 6 248 370 00 60% 5 TOTAL DIRECT COSTS 5 - 1 073 835 00 5 340 338 00 3 959 054 00 - 10 373 237 00 7 INDIRECT COSTS if applied 0% 8 Total Federal Budget 5 - 1 073 835 00 5 340 330 00 3 959 064 00 - 10 373 237 00 11 Non-Federal Match 159 662 00 359 000 00 3 518 662 00 12 Total Program Budget 5 - 1 073 835 00 5 500 000 00 4 318 064 00 10 891 39900 13 Percentage By Category Proposed State Match 5 0% A Do you have an Indirect Cost Rate Agreement approved by the Federal government or some other non-federal entity No