The Public Company Accounting Oversight Board today approved its 2013 fiscal-year budget of approximately $245.6 million and its 2012-2016 Strategic Plan.
The budget is $17.9 million, or 8 percent, above the Board's 2012 budget of $227.7 million. The primary drivers of growth in the 2013 budget are staffing and associated expenses due to an increase in the number of international inspections and the implementation of a broker-dealer auditor inspection program.
The Board also approved its strategic plan for 2012-2016 to serve as the foundation for the 2013 budget, and to guide the PCAOB's programs and operations.
"The plan approved today reflects modest updates and adjustments to support the 2013 budget," said PCAOB Chairman James R. Doty.
"The $246 million budget supports the strategic plan and reflects the challenges the PCAOB faces as it seeks to fulfill its investor protection mission," Doty added. "It provides for a modest increase in staff to do so, mainly for inspections."
The total accounting support fee for 2013 is $234 million, with approximately $207.5 million allocated to public companies and $26.5 million to broker-dealers. The Dodd-Frank Act requires the Board to allocate an appropriate portion of the accounting support fee to broker-dealers.
The budget assumes the PCAOB will reach a 2013 year-end projected total of 839 staff. The Division of Registration and Inspections accounts for 528 of these positions, and the Division of Enforcement and Investigations accounts for 65.
As of Nov. 13, 2012, there are 2,365 public accounting firms registered with the PCAOB, including 908 based outside the United States.
The 2013 budget is subject to approval by the Securities and Exchange Commission. Additionally, the SEC's rule on the PCAOB budget requires the PCAOB to maintain a strategic plan.
A summary of the 2013 budget will be available on the PCAOB website once it is submitted to the SEC for consideration. The PCAOB strategic plan also will be available at the same time. Both documents can be found on the Operations page under the "About the PCAOB" tab on the PCAOB website.