Auditors to review Montana Secretary of State's use of federal grant money for mailers

The Secretary of State's use of a federal elections grant to pay for controversial mailers will be audited, the legislative auditor said in a memo dated Wednesday.

Earlier this month Republican Secretary of State Christi Jacobsen used grant money from the Help American Vote Act (HAVA) to pay for postcards regarding efforts to prevent noncitizens from voting featuring photos of her and President Donald Trump. Jacobsen's office sent out the 466,638 mailers shortly after the new year at the cost of $196,829.

The postcards themselves and the lack of transparency from the secretary's office in response to repeated questions from a bipartisan group of legislators caused frustration that has lasted for months.

HAVA grants are sent to Montana and other states nearly every year to help strengthen the administration, technology and security of state-run elections. As of a Feb. 28, the Secretary of State had $2.7 million in HAVA grant money on hand, according to a report from the Legislative Fiscal Division.

"Ordinarily, the HAVA grant funding at [Secretary of State] would not be audited as a major program due to its low dollar value," Legislative Auditor Angus Maciver wrote.

Maciver explained in the memo that the use of this money is being audited in part because of Jacobsen's "incomplete and untimely responses" in recent months. Maciver also wrote that the expenditure is a "questioned cost," which means it "may have been spent in a way that does not comply with applicable laws, regulations, or requirements."

The expenditure is being added to the routine federal Single Audit, which is a process meant to ensure compliance with federal requirements attached the grants it sends to states.

Since those mailers were sent out Jacobsen declared a run for Montana's western congressional district.

The nearly half a million mailers inform Montanans that Jacobsen’s office is implementing a new tool by partnering with the federal government to ensure that noncitizens do not vote. Existing law already prohibits noncitizens from voting in Montana, but Secretary of State spokesperson Richie Melby said that that this is the first time Montana election officials have been able to verify citizenship.

The Secretary of State said the mailers constituted voter education, which is permitted under HAVA, and were not electioneering. Jacobsen has also pointed out that in order to use the new tool, it was required by the federal government to notify registered voters in writing that the program was going to be used.

For this story, Melby pointed out that when the secretary's office was previously audited by an independent firm for the use of its HAVA funds over a six year period, it was in compliance with the rules. That audit was completed before the use of HAVA dollars for the postcards.

Following a complaint, the Montana Commissioner of Political Practices Chris Gallus said the postcards do not violate campaign and ethics rules that he has jurisdiction over and dismissed the complaint. While they "could be viewed as partisan," he wrote, the mailers do not expressly signal support or opposition for Jacobsen.

Legislative Audit Committee Chair Rep. Jerry Schillinger, R-Circle, sent a letter in late January asking Jacobsen questions, including how the postcards would be paid for. Jacobsen's office responded on Feb. 27, weeks after Schillinger's deadline, and did not answer that question.

In Maciver's memo, he wrote that also on Feb. 27, Jacobsen's office filed documentation in the state accounting system (SABHRS) justifying the decision to use HAVA funds for the mailers.

"It is unclear why the [Secretary of State] response to [the Legislative Audit Committee] inquiries, also dated February 27, did not directly address the funding source when the SABHRS documentation appears to show the decision to use HAVA funding had been made at this point," Maciver wrote.

Even though the cost and funding source have been revealed — albeit without the Secretary of State's office providing that information itself —  Schillinger still has some lingering concerns.

"This whole matter seems like a really easy thing to be responsive about, but for some reason there was foot dragging by the Secretary of State," Schillinger said.

Schillinger said he plans to invite her to appear at the Legislative Audit Committee's meeting next month.

"I guess we'll see if she wants to come and address our concerns," Schillinger said. "It's not just our concerns, but concerns of constituents and citizens and our responsibility is to be transparent as possible."