PCAOB Okays 2011 Budget Proposal
After its deliberation for next year’s budget, the Public Company Accounting Oversight Board (PCAOB) has now come to terms with the 2011 fiscal-year budget proposal.
PCAOB’s budget next year would amount to $204.4 million, 11.5 percent higher than its 2010 fiscal-year budget of $183.3 million. PCAOB attributed the increase in its budget proposal this year to the added responsibilities of the board, which include overseeing broker-dealer auditors as stipulated in the Dodd-Frank Act.
Daniel L. Goelzer, Acting PCAOB Chairman, said exercising PCAOB’s mandate from the Dodd-Frank Act of overseeing SEC-registered broker-dealer auditors would entail an estimated increase in its employees of up to 81 by 2011, targeting a year-end projected total of 717 staff.
The addition of broker-dealer auditors oversight to the tasks of PCAOB required an allocation from the accounting support fee, which, in the budget proposal, totaled $14.4 million. The total amount this year for the accounting support fee is $202.3 million, $187.9 million from which is for public companies.
But PCAOB plans to ask the SEC to increase the amount of its accounting support fee for 2011 as other contingencies like hiring and inspections need to be addressed, the board pointed out in its November 23 meeting.
Other areas allocated for in the budget proposal are expenses in information technology and additional facilities. These additional resources emerged following changes in PCAOB’s programs which include the need to enhance the board’s performance and documentation and a high possibility of increased proceedings.
There are currently 2,399 PCAOB-registered public accounting firms, 902 of which are outside USA.
At the same time, PCAOB concurred its five-year strategic plan, ranging from 2010 to 2014, that would serve as the foundation of its 2011 budget proposal as per SEC’s rule on PCAOB budget.
The budget proposal is still subject to SEC’s approval.