United States Government Accountability Office GAO November 2011_part10 pptx

IPF’s Financial Statements Page 105 GAO-12-219 SEC’s Financial Statements for Fiscal Years 2011 and 2010 are no liabilities or contingent liabilities related to the Investor Protection Fund as of September 30, 2011 and 2010, respectively. The Dodd-Frank Act and the SEC implementing regulations establish the eligibility criteria for Whistleblower awards. Refer to Note 4. Commitments and Contingencies for information regarding the disclosure and recognition of actual and contingent liabilities for Whistleblower awards. J. Program Costs The Investor Protection Fund reimburses the SEC’s General Fund (X0100) for expenses incurred by the Of ce of Inspector General to administer the Employee Suggestion Program. The Investor Protection Fund also  nances payments to whistleblowers under Section 21F of the Exchange Act. The SEC adopted the  nal rules to implement the Whistleblower Program on May 25, 2011. As of September 30, 2011, there are no amounts paid or payable under the Whistleblower Program. K. Non-Exchange Revenue Disgorgement and Penalty Transfers Non-exchange revenue arises from the Government’s ability to demand payment. The Investor Protection Fund is  nanced through the receipt of portions of monetary sanctions collect- ed by the SEC in judicial or administrative actions brought by the SEC under the securities laws that are not either: (1) added to the disgorgement fund or other fund under Section 308 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7246) or (2) other- wise distributed to victims of a violation of the securities laws. The Investor Protection Fund recognizes non-exchange revenue for disgorgement and penalty amounts transferred into the fund from the SEC’s Disgorgement and Penalties Fund (X6563). No sanction collected by the SEC can be deposited into the Investor Protection Fund if the balance in the fund exceeds $300 million on the day of collection. Interest Earnings on Investments with Treasury Interest earned from investments in U.S. Treasury securities is classi ed in the same way as the predominant source of revenue to the fund. The Investor Protection Fund is  nanced through the receipt of non-exchange revenues and thus inter- est earnings are also recognized as non-exchange revenues. L. Budgets and Budgetary Accounting The Investor Protection Fund (Fund X5567) is a special fund established through a permanent inde nite appropriation that has the authority to retain revenues and other  nancing sources not used in the current period for future use. The Dodd-Frank Act provides that the Fund is available to the SEC without further appropriation or  scal year limitation for the purpose of paying awards to whistleblowers and funding the activities of the OIG’s employee suggestion program. However, the SEC is required to request and obtain an annual apportionment from OMB to use these funds. In FY 2010, the SEC received a $451.9 million apportionment for the Fund for use in FY 2011. The resources of the Investor Protection Fund are apportioned under Category B authority, which means that the funds represent budgetary resources distributed by a speci ed time period, activity, project, object, or a combination of these categories and are not subject to quarterly apportionment. Thus, all obligations incurred as presented on the Statement of Budgetary Resources are derived from Category B funds. 2011 PERFORMANCE AND ACCOUNTABILITY REPORT 161 FINANCIAL SECTION a re no liabilities or contingent liabilities related to the Investo r P rotection Fund as of September 30, 2011 and 2010, respectively. T he Dodd-Frank Act and the SEC implementing regulations e stablish the eligibility criteria for Whistleblower awards. Refe r to Note 4. Commitments and Contingencie s for information regarding the disclosure and recognition of actual and c ontingent liabilities for Whistleblower awards. J . Pro g ram C ost s T h e Inv es t o r Pr o t ec ti o n F u n d r e im bu r ses th e S E C ’ s Ge n e r a l Fund ( X0100 ) for expenses incurred by the O f ce of Inspecto r G eneral to administer the Employee S uggestion Program. Th e I nvestor P rotect i on F un d a l so  nances payments to whistleblowers under S ection 21F of the Exchange Act. The S E C adopted the  nal rules to implement the Whistleblowe r Program on May 25, 2011. As of S eptember 30, 2011, there are no amounts pa id or paya bl e un d er t h e Whi st l e bl owe r P rogram. K. Non-Exchange Revenue D is g or g ement and Penalty Trans f ers N on-exchange revenue arises from the G overnment’s ability to d eman d payment. Th e I nvestor P rotect i on F un d i s  nance d t h roug h t h e rece i pt o f port i ons o f monetary sanct i ons co ll ect- e d by the S E C in judicial or administrative actions brought by the S E C under the securities laws that are not either: ( 1 ) added to the disgorgement fund or other fund under S ection 308 o f the S arbanes- O xley Act of 2002 ( 15 U. S . C . 7246 ) or ( 2 ) other- w ise dis tr ibu t ed t o v ic t i m s of a v iola t io n of t he secu r i t ies la w s . Th e I nvestor P rotect i on F un d recogn i zes non-exc h ange revenue f or di sgorgement an d pena l ty amounts trans f erre d into the fund from the S E C ’s Disgorgement and Penalties Fund ( X6563 ) . No sanction collected by the S E C can be deposited i nt o t he I nv es t o r P r o t ec t io n Fu n d if t he bala n ce i n t he fu n d e xceeds $300 million on the day of collection. I nterest Earn i ngs on Investments w i th Treasury I nterest earned from investments in U.S. Treasury securities is classi ed in the same way as the predominant source o f revenue to the fund. The Investor Protection Fund is  nanced through the receipt of non-exchange revenues and thus inter- e st earnings are also recognized as non-exchange revenues. L. Bud g ets and Bud g etary Account i n g T he Investor Protection Fund ( Fund X5567 ) is a special fund e sta bli s h e d t h roug h a permanent i n d e  n i te appropr i at i on t h at h as t h e aut h or i ty to reta i n revenues an d ot h er  nanc i ng s ources not use d i n t h e current per i o d f or f uture use. Th e D o dd - F ran k A ct prov id es t h at t h e F un d i s ava il a bl e to t h e S E C without further appropriation or  scal year limitation fo r t h e purpose o f pay i ng awar d s to w hi st l e bl owers an d f un di ng the activities of the O I G ’s employee suggestion program. H owever, the S E C is required to request and obtain an annual a pportionment from O MB to use these funds. In FY 2010, the SEC received a $451.9 million apportionment for the Fund fo r use i n FY 2 0 11. T he resources of the Investor Protection Fund are apportioned under Category B authority, which means that the funds represent budgetary resources distributed by a speci ed time period, activity, project, object, or a combination of these c ategories and are not subject to quarterly apportionment. T hus, all obligations incurred as presented on the Statement o f Budgetary Resources are derived from Category B funds. 2 0 11 PERF O RMAN C E AND A CCOU NTABILITY REP O RT 16 1 F INAN C IAL S E C TI O N This is trial version www.adultpdf.com GAO’s Mission The Government Accountability Office, the audit, evaluation, and investigative arm of Congress, exists to support Congress in meeting its constitutional responsibilities and to help improve the performance and accountability of the federal government for the American people. GAO examines the use of public funds; evaluates federal programs and policies; and provides analyses, recommendations, and other assistance to help Congress make informed oversight, policy, and funding decisions. GAO's commitment to good government is reflected in its core values of accountability, integrity, and reliability. 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REP O RT 16 1 F INAN C IAL S E C TI O N This is trial version www.adultpdf.com GAO s Mission The Government Accountability Office, the audit, evaluation, and investigative arm of Congress, exists