Order Approving Public Company Accounting Oversight Board Budget and Annual Accounting Support Fee for Calendar Year 2018, 2470-2471 [2018-00642]

Download as PDF 2470 Federal Register / Vol. 83, No. 11 / Wednesday, January 17, 2018 / Notices not be released under the Freedom of Information Act. ADDRESSES: Objections relating to the prospective license may be submitted to Patent Counsel, Bryan A. Geurts, Goddard Space Flight Center, 8800 Greenbelt Road M/S 140.1, Greenbelt MD 20771. Phone (301) 286–7351. Facsimile (301) 286–9502. FOR FURTHER INFORMATION CONTACT: Enidia Santiago-Arce, Innovative Partnerships Program Office, Goddard Space Flight Center, 8800 Greenbelt Road M/S 504, Greenbelt, MD 20771. Phone (301) 286–5810. SUPPLEMENTARY INFORMATION: This notice of intent to grant a partiallyexclusive term patent license is issued in accordance with 35 U.S.C. 209(e) and 37 CFR 404.7(a)(1)(i). The patent rights in these inventions have been assigned to the United States of America as represented by the Administrator of the National Aeronautics and Space Administration. The prospective partially exclusive license will comply with the requirements of 35 U.S.C. 209 and 37 CFR 404.7. Information about other NASA inventions available for licensing can be found online at https:// technology.nasa.gov. Mark P. Dvorscak, Agency Counsel for Intellectual Property. BILLING CODE 7510–13–P SECURITIES AND EXCHANGE COMMISSION Sunshine Act Meetings 2:00 p.m. on Thursday, January 18, 2018. PLACE: Closed Commission Hearing Room 10800. STATUS: This meeting will be closed to the public. MATTERS TO BE CONSIDERED: Commissioners, Counsel to the Commissioners, the Secretary to the Commission, and recording secretaries will attend the closed meeting. Certain staff members who have an interest in the matters also may be present. The General Counsel of the Commission, or his designee, has certified that, in his opinion, one or more of the exemptions set forth in 5 U.S.C. 552b(c)(3), (5), (6), (7), (8), 9(B) and (10) and 17 CFR 200.402(a)(3), (a)(5), (a)(6), (a)(7), (a)(8), (a)(9)(ii) and (a)(10), permit consideration of the scheduled matters at the closed meeting. ethrower on DSK3G9T082PROD with NOTICES VerDate Sep<11>2014 17:14 Jan 16, 2018 Jkt 244001 Dated: January 11, 2018. Brent J. Fields, Secretary. [FR Doc. 2018–00739 Filed 1–12–18; 11:15 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Securities Act of 1933 Release No. 33– 10453/January 10, 2018; Securities Exchange Act of 1934 Release No. 34– 82483/January 10, 2018] Order Approving Public Company Accounting Oversight Board Budget and Annual Accounting Support Fee for Calendar Year 2018 [FR Doc. 2018–00661 Filed 1–16–18; 8:45 am] TIME AND DATE: Commissioner Stein, as duty officer, voted to consider the items listed for the closed meeting in closed session. The subject matters of the closed meeting will be: Institution and settlement of injunctive actions; Institution and settlement of administrative proceedings; and Other matters relating to enforcement proceedings. At times, changes in Commission priorities require alterations in the scheduling of meeting items. CONTACT PERSON FOR MORE INFORMATION: For further information and to ascertain what, if any, matters have been added, deleted or postponed; please contact Brent J. Fields from the Office of the Secretary at (202) 551–5400. The Sarbanes-Oxley Act of 2002, as amended (the ‘‘Sarbanes-Oxley Act’’),1 established the Public Company Accounting Oversight Board (‘‘PCAOB’’) to oversee the audits of companies that are subject to the securities laws, and related matters, in order to protect the interests of investors and further the public interest in the preparation of informative, accurate and independent audit reports. Section 982 of the DoddFrank Wall Street Reform and Consumer Protection Act (the ‘‘Dodd-Frank Act’’) 2 amended the Sarbanes-Oxley Act to provide the PCAOB with explicit authority to oversee auditors of brokerdealers registered with the Commission. The PCAOB is to accomplish these goals through registration of public accounting firms and standard setting, inspection, and disciplinary programs. The PCAOB is subject to the comprehensive oversight of the Securities and Exchange Commission (the ‘‘Commission’’). Section 109 of the Sarbanes-Oxley Act provides that the PCAOB shall establish 1 15 U.S.C. 7201 et seq. Law 111–203, 124 Stat. 1376 (2010). 2 Public PO 00000 Frm 00049 Fmt 4703 Sfmt 4703 a reasonable annual accounting support fee, as may be necessary or appropriate to establish and maintain the PCAOB. Under Section 109(f) of the SarbanesOxley Act, the aggregate annual accounting support fee shall not exceed the PCAOB’s aggregate ‘‘recoverable budget expenses,’’ which may include operating, capital and accrued items. The PCAOB’s annual budget and accounting support fee are subject to approval by the Commission. In addition, the PCAOB must allocate the annual accounting support fee among issuers and among brokers and dealers. Section 109(b) of the Sarbanes-Oxley Act directs the PCAOB to establish a budget for each fiscal year in accordance with the PCAOB’s internal procedures, subject to approval by the Commission. Rule 190 of Regulation P governs the Commission’s review and approval of PCAOB budgets and annual accounting support fees.3 This budget rule provides, among other things, a timetable for the preparation and submission of the PCAOB budget and for Commission actions related to each budget, a description of the information that should be included in each budget submission, limits on the PCAOB’s ability to incur expenses and obligations except as provided in the approved budget, procedures relating to supplemental budget requests, requirements for the PCAOB to furnish on a quarterly basis certain budgetrelated information, and a list of definitions that apply to the rule and to general discussions of PCAOB budget matters. In accordance with the budget rule, in March 2017 the PCAOB provided the Commission with a narrative description of its program issues and outlook for the 2018 budget year. In response, the Commission provided the PCAOB with economic assumptions and general budgetary guidance for the 2018 budget year. The PCAOB subsequently delivered a preliminary budget and budget justification to the Commission. Staff from the Commission’s Office of the Chief Accountant and Office of Financial Management dedicated a substantial amount of time to the review and analysis of the PCAOB’s programs, projects, and budget estimates; reviewed the PCAOB’s estimates of 2017 actual spending; and attended several meetings with management and staff of the PCAOB to further develop their understanding of the PCAOB’s budget and operations. During the course of this review, Commission staff relied upon representations and supporting documentation from the PCAOB. Based 3 17 E:\FR\FM\17JAN1.SGM CFR 202.190. 17JAN1 ethrower on DSK3G9T082PROD with NOTICES Federal Register / Vol. 83, No. 11 / Wednesday, January 17, 2018 / Notices on this review, the Commission issued a ‘‘pass back’’ letter to the PCAOB on October 25, 2017. On November 16, 2017, the PCAOB adopted its 2018 budget during an open meeting, and subsequently submitted that budget to the Commission for approval. After considering the above, the Commission did not identify any proposed disbursements in the 2018 budget adopted by the PCAOB that are not properly recoverable through the annual accounting support fee, and the Commission believes that the aggregate proposed 2018 annual accounting support fee does not exceed the PCAOB’s aggregate recoverable budget expenses for 2018. The Commission also acknowledges the PCAOB’s updated strategic plan and encourages the PCAOB to continue keeping the Commission and its staff apprised of significant new developments. The Commission looks forward to providing its views to the PCAOB as future updates are made to the plan. In addition, the PCAOB should submit its 2017 annual report to the Commission by April 2, 2018. The Commission directs the Board during 2018 to continue to provide periodic updates to the Commission relating to the monitoring of estimated cost savings and efficiencies gained through certain initiatives implemented in recent years. The Board shall continue its review of its compensation and travel policies and report to the Commission the results of this review. In May 2017, the PCAOB formed the Office of Economic and Risk Analysis (‘‘ERA’’) by integrating the staff of the Center for Economic Analysis (‘‘CEA’’) that conducted economic analysis and research with staff from the Office of Research and Analysis (‘‘ORA’’) that conducted risk assessment and data analysis. The Commission directs the PCAOB during 2018 to provide quarterly updates to the Commission on ERA’s activities and progress towards its stated goals, including the work to integrate staff from the former CEA and ORA. The Commission directs the Board during 2018 to continue to provide in its quarterly reports to the Commission detailed information about the state of the PCAOB’s information technology (‘‘IT’’) program, including planned, estimated, and actual costs for IT projects, and the level of involvement of consultants. These reports also should continue to include: (a) A discussion of the Board’s assessment of the IT program; and (b) the quarterly IT report that is prepared by PCAOB staff and submitted to the Board. VerDate Sep<11>2014 17:14 Jan 16, 2018 Jkt 244001 The Commission also directs the Board during 2018 to continue to include in its quarterly reports to the Commission information about the PCAOB’s inspections program. Such information is to include: (a) Statistics relative to the numbers and types of firms budgeted and expected to be inspected in 2018, including by location and by year the inspections are required to be conducted in accordance with the Sarbanes-Oxley Act and PCAOB rules; (b) information about the timing of the issuance of inspections reports for domestic and non-U.S. inspections; and (c) updates on the PCAOB’s efforts to establish cooperative arrangements with respective non-U.S. authorities for inspections required in those countries. The Commission understands that the Office of Management and Budget (‘‘OMB’’) has determined the 2018 budget of the PCAOB to be sequestrable under the Budget Control Act of 2011.4 For 2017, the PCAOB sequestered $17 million. That amount will become available in 2018. For 2018, the sequestration amount will be 6.6% or $17.2 million. Accordingly, the PCAOB should submit a revised spending plan for 2018 reflecting a $0.2 million reduction to budgeted expenditures as a result of the increase in sequestration amount from 2017 to 2018. The Commission has determined that the PCAOB’s 2018 budget and annual accounting support fee are consistent with Section 109 of the Sarbanes-Oxley Act. Accordingly, It is ordered, pursuant to Section 109 of the Sarbanes-Oxley Act, that the PCAOB budget and annual accounting support fee for calendar year 2018 are approved. By the Commission. Brent J. Fields, Secretary. [FR Doc. 2018–00642 Filed 1–16–18; 8:45 am] 2471 Engagement on Friday, January 19, 2018, beginning at 9:10 a.m. (ET). The meeting will be held at the New York University’s Salomon Center for the Study of Financial Institutions, 44 W. 4th Street, New York, NY 10112. PLACE: This meeting will begin at 9:10 a.m. (ET) and will be open to the public. Attendees can pre-register for in-person attendance or webcast. The meeting will be webcast live by NYU and later archived on the Commission’s website at www.sec.gov. STATUS: The event is scheduled to include welcome remarks by SEC Chairman Jay Clayton, concluding remarks by SEC Commissioner Kara Stein, and panel discussions that Commissioners may attend. The panel discussions will address, among other matters, the increasing ownership of public companies by large institutional investors, the influence of activist investors, the role of proxy advisory services, and other changes in the way investors and public companies engage with each other. This Sunshine Act notice is being issued because a majority of the Commission may attend the meeting. MATTERS TO BE CONSIDERED: CONTACT PERSON FOR MORE INFORMATION: For further information and to ascertain what, if any, matters have been added, deleted or postponed; please contact Brent J. Fields from the Office of the Secretary at (202) 551–5400. Dated: January 11, 2018. Brent J. Fields, Secretary. [FR Doc. 2018–00738 Filed 1–12–18; 11:15 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION BILLING CODE 8011–01–P [Release No. 34–82479; File No. SR– NASDAQ–2018–002] SECURITIES AND EXCHANGE COMMISSION Sunshine Act Meetings Notice is hereby given, pursuant to the provisions of the Government in the Sunshine Act, Public Law 94–409, that the Commission will co-host the SEC–NYU Dialogue on Securities Markets—Shareholder TIME AND DATE: 4 See ‘‘OMB Report to the Congress on the Joint Committee Reductions for Fiscal Year 2018’’, Appendix page 16 of 16 available at https:// www.whitehouse.gov/sites/whitehouse.gov/files/ omb/sequestration_reports/2018_jc_sequestration_ report_may2017_potus.pdf. PO 00000 Frm 00050 Fmt 4703 Sfmt 4703 Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Add a New Rule 6200 To Codify Participant Risk Settings in the Exchange’s Trading System (as Set Forth in a Proposed IM–6200–1) and To Authorize the Exchange To Share Those Settings With the Clearing Member That Clears Transactions on Behalf of the Participant January 10, 2018. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 E:\FR\FM\17JAN1.SGM 17JAN1

Agencies

[Federal Register Volume 83, Number 11 (Wednesday, January 17, 2018)]
[Notices]
[Pages 2470-2471]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00642]


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SECURITIES AND EXCHANGE COMMISSION

[Securities Act of 1933 Release No. 33-10453/January 10, 2018; 
Securities Exchange Act of 1934 Release No. 34-82483/January 10, 2018]


Order Approving Public Company Accounting Oversight Board Budget 
and Annual Accounting Support Fee for Calendar Year 2018

    The Sarbanes-Oxley Act of 2002, as amended (the ``Sarbanes-Oxley 
Act''),\1\ established the Public Company Accounting Oversight Board 
(``PCAOB'') to oversee the audits of companies that are subject to the 
securities laws, and related matters, in order to protect the interests 
of investors and further the public interest in the preparation of 
informative, accurate and independent audit reports. Section 982 of the 
Dodd-Frank Wall Street Reform and Consumer Protection Act (the ``Dodd-
Frank Act'') \2\ amended the Sarbanes-Oxley Act to provide the PCAOB 
with explicit authority to oversee auditors of broker-dealers 
registered with the Commission. The PCAOB is to accomplish these goals 
through registration of public accounting firms and standard setting, 
inspection, and disciplinary programs. The PCAOB is subject to the 
comprehensive oversight of the Securities and Exchange Commission (the 
``Commission'').
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 7201 et seq.
    \2\ Public Law 111-203, 124 Stat. 1376 (2010).
---------------------------------------------------------------------------

    Section 109 of the Sarbanes-Oxley Act provides that the PCAOB shall 
establish a reasonable annual accounting support fee, as may be 
necessary or appropriate to establish and maintain the PCAOB. Under 
Section 109(f) of the Sarbanes-Oxley Act, the aggregate annual 
accounting support fee shall not exceed the PCAOB's aggregate 
``recoverable budget expenses,'' which may include operating, capital 
and accrued items. The PCAOB's annual budget and accounting support fee 
are subject to approval by the Commission. In addition, the PCAOB must 
allocate the annual accounting support fee among issuers and among 
brokers and dealers.
    Section 109(b) of the Sarbanes-Oxley Act directs the PCAOB to 
establish a budget for each fiscal year in accordance with the PCAOB's 
internal procedures, subject to approval by the Commission. Rule 190 of 
Regulation P governs the Commission's review and approval of PCAOB 
budgets and annual accounting support fees.\3\ This budget rule 
provides, among other things, a timetable for the preparation and 
submission of the PCAOB budget and for Commission actions related to 
each budget, a description of the information that should be included 
in each budget submission, limits on the PCAOB's ability to incur 
expenses and obligations except as provided in the approved budget, 
procedures relating to supplemental budget requests, requirements for 
the PCAOB to furnish on a quarterly basis certain budget-related 
information, and a list of definitions that apply to the rule and to 
general discussions of PCAOB budget matters.
---------------------------------------------------------------------------

    \3\ 17 CFR 202.190.
---------------------------------------------------------------------------

    In accordance with the budget rule, in March 2017 the PCAOB 
provided the Commission with a narrative description of its program 
issues and outlook for the 2018 budget year. In response, the 
Commission provided the PCAOB with economic assumptions and general 
budgetary guidance for the 2018 budget year. The PCAOB subsequently 
delivered a preliminary budget and budget justification to the 
Commission. Staff from the Commission's Office of the Chief Accountant 
and Office of Financial Management dedicated a substantial amount of 
time to the review and analysis of the PCAOB's programs, projects, and 
budget estimates; reviewed the PCAOB's estimates of 2017 actual 
spending; and attended several meetings with management and staff of 
the PCAOB to further develop their understanding of the PCAOB's budget 
and operations. During the course of this review, Commission staff 
relied upon representations and supporting documentation from the 
PCAOB. Based

[[Page 2471]]

on this review, the Commission issued a ``pass back'' letter to the 
PCAOB on October 25, 2017. On November 16, 2017, the PCAOB adopted its 
2018 budget during an open meeting, and subsequently submitted that 
budget to the Commission for approval.
    After considering the above, the Commission did not identify any 
proposed disbursements in the 2018 budget adopted by the PCAOB that are 
not properly recoverable through the annual accounting support fee, and 
the Commission believes that the aggregate proposed 2018 annual 
accounting support fee does not exceed the PCAOB's aggregate 
recoverable budget expenses for 2018.
    The Commission also acknowledges the PCAOB's updated strategic plan 
and encourages the PCAOB to continue keeping the Commission and its 
staff apprised of significant new developments. The Commission looks 
forward to providing its views to the PCAOB as future updates are made 
to the plan. In addition, the PCAOB should submit its 2017 annual 
report to the Commission by April 2, 2018.
    The Commission directs the Board during 2018 to continue to provide 
periodic updates to the Commission relating to the monitoring of 
estimated cost savings and efficiencies gained through certain 
initiatives implemented in recent years. The Board shall continue its 
review of its compensation and travel policies and report to the 
Commission the results of this review.
    In May 2017, the PCAOB formed the Office of Economic and Risk 
Analysis (``ERA'') by integrating the staff of the Center for Economic 
Analysis (``CEA'') that conducted economic analysis and research with 
staff from the Office of Research and Analysis (``ORA'') that conducted 
risk assessment and data analysis. The Commission directs the PCAOB 
during 2018 to provide quarterly updates to the Commission on ERA's 
activities and progress towards its stated goals, including the work to 
integrate staff from the former CEA and ORA.
    The Commission directs the Board during 2018 to continue to provide 
in its quarterly reports to the Commission detailed information about 
the state of the PCAOB's information technology (``IT'') program, 
including planned, estimated, and actual costs for IT projects, and the 
level of involvement of consultants. These reports also should continue 
to include: (a) A discussion of the Board's assessment of the IT 
program; and (b) the quarterly IT report that is prepared by PCAOB 
staff and submitted to the Board.
    The Commission also directs the Board during 2018 to continue to 
include in its quarterly reports to the Commission information about 
the PCAOB's inspections program. Such information is to include: (a) 
Statistics relative to the numbers and types of firms budgeted and 
expected to be inspected in 2018, including by location and by year the 
inspections are required to be conducted in accordance with the 
Sarbanes-Oxley Act and PCAOB rules; (b) information about the timing of 
the issuance of inspections reports for domestic and non-U.S. 
inspections; and (c) updates on the PCAOB's efforts to establish 
cooperative arrangements with respective non-U.S. authorities for 
inspections required in those countries.
    The Commission understands that the Office of Management and Budget 
(``OMB'') has determined the 2018 budget of the PCAOB to be 
sequestrable under the Budget Control Act of 2011.\4\ For 2017, the 
PCAOB sequestered $17 million. That amount will become available in 
2018. For 2018, the sequestration amount will be 6.6% or $17.2 million. 
Accordingly, the PCAOB should submit a revised spending plan for 2018 
reflecting a $0.2 million reduction to budgeted expenditures as a 
result of the increase in sequestration amount from 2017 to 2018.
---------------------------------------------------------------------------

    \4\ See ``OMB Report to the Congress on the Joint Committee 
Reductions for Fiscal Year 2018'', Appendix page 16 of 16 available 
at https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/sequestration_reports/2018_jc_sequestration_report_may2017_potus.pdf.
---------------------------------------------------------------------------

    The Commission has determined that the PCAOB's 2018 budget and 
annual accounting support fee are consistent with Section 109 of the 
Sarbanes-Oxley Act. Accordingly,
    It is ordered, pursuant to Section 109 of the Sarbanes-Oxley Act, 
that the PCAOB budget and annual accounting support fee for calendar 
year 2018 are approved.

    By the Commission.
Brent J. Fields,
Secretary.
[FR Doc. 2018-00642 Filed 1-16-18; 8:45 am]
 BILLING CODE 8011-01-P
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