Statement in Support of the 2023 Budget and Strategic Plan for 2022 to 2026
Remarks as prepared for delivery
Thank you, Chair Williams. I am excited to cast my second vote on the PCAOB budget, this time for PCAOB’s 2023 Budget. As I stated in my remarks last year for the 2022 Budget, this sets the foundation for allocating the use of PCAOB resources in meeting our mission of protecting investors. This year’s budget also aligns resources to implementing our strategic plan, which I also am pleased to support. As was mentioned earlier, the 2023 Budget is $349.5 million, which is $40.6 million (13%) more than the 2022 Budget. Nearly half of the 13% increase is related to the compensation adjustments needed to set staff pay at levels that are comparable to pertinent private sector pay levels which have been affected by inflation and other market conditions. To carry out the congressional mandate to protect investors, we must recruit and retain the best talent in a highly competitive labor market. The remaining increase covers staffing, consulting, travel, and training associated with increases in programmatic scope outlined in our strategic plan. Recognizing that 13% is not an insignificant increase, especially given my years in the federal government, I expect this Board to be held accountable for good stewardship with a view toward greater fiscal restraint and responsibility. Thank you to PCAOB CFO Holly Greaves and Budget Officer Jim Hearn, PCAOB Division and Office Directors, and all the PCAOB staff that worked tirelessly to prepare this budget.
I value the public feedback we received on our draft strategic plan. In particular, the feedback that PCAOB should be forward-thinking in relation to technology. As I have said before, technology is the audit quality challenge of the 21st century. That’s why I continue to advocate for the transformation of our auditing standards to address technological advancements and stimulate innovation to drive audit quality. Thank you, Martha Kidd in the Chair’s office and all the staff and public commenters that helped to shape our vision forward.
In closing, I support the PCAOB 2023 budget and the Strategic Plan for 2022 to 2026. Thank you.