OREANDA-NEWS. March 16, 2016. The Securities and Exchange Commission today approved the 2016 budget of the Public Company Accounting Oversight Board (PCAOB) and the related annual accounting support fee.

The PCAOB budget totals \\$257.7 million and will be funded primarily by the collection of an accounting support fee totaling \\$253.3 million and from the under-spending in 2015 that will be available to fund the 2016 budget.

“The PCAOB’s work to oversee auditors of public companies and SEC registered broker-dealers is critical to investor protection and our markets,” said SEC Chair Mary Jo White.  “The PCAOB has another busy year ahead as it continues to conduct inspections of auditors and broker-dealers, works to develop its permanent broker-dealer audit inspection program, and advances numerous standard-setting initiatives.   The Commission must continue to make sure the PCAOB has the necessary funds to fulfill all aspects of its important mission.”

The Sarbanes-Oxley Act of 2002 established the PCAOB to oversee the audits and auditors of financial statements filed by public companies and registered broker-dealers. The Sarbanes-Oxley Act designated the SEC to oversee the PCAOB and specifies that the PCAOB’s budget and accounting support fee, which funds its operations, be subject to approval by the Commission. 

The PCAOB budget includes:

  • A 2016 budget of \\$257.7 million
  • A 2016 accounting support fee totaling \\$253.3 million allocated as follows:

                  -\\$220.9 million to be assessed on public companies

                  -\\$  32.4 million to be assessed on broker-dealers               

The PCAOB’s 2016 budget represents an increase of approximately 3 percent from its 2015 budget of \\$250.9 million and an increase of approximately 5 percent over its estimated \\$244.9 million in spending in 2015.  The 2016 accounting support fee of \\$253.3 million is approximately 12 percent higher than the 2015 accounting support fee of \\$226.6 million.  The increase in the accounting support fee relative to the increase in the budget reflects the fact that there is less unused funding to be carried forward from FY 2015 to offset FY 2016 budgeted expenditures than was the case last year.