United States Government Accountability Office GAO November 2011 _part5 docx

Management’s Discussion and Analysis Page 45 GAO-12-219 SEC’s Financial Statements for Fiscal Years 2011 and 2010 Financial Highlights This section provides an analysis of the  nancial position, results of operations, and the underlying causes for signi cant changes in balances presented in the SEC’s FY 2011  nancial statements. Overview of Financial Position Assets. The SEC’s total assets were $8,517 million at September 30, 2011, an increase of $355 million or 4 percent over FY 2010. Investments, Net increased by $278 million due to a $453 million increase in Investor Protection Fund investments, and a $175 million decrease in Disgorgement and Penalty related investments. Investor Protection Fund resources were invested in Treasury securities during the  rst quarter of FY 2011. The decrease in Disgorgement and Penalty investments is related to the SEC’s continued efforts to accelerate distributions to harmed investors during FY 2011. The increase in Accounts Receivable, Net of $53 million is mainly comprised of a $43 million increase in Section 31 fees receivable and a $9 million increase in disgorgement and penalty accounts receivable (net) designated as payable to the U.S. Treasury General Fund upon collection. Section 31 fees are payable to SEC twice a year: in March for the period September through December and in September for the period January through August. Thus, the year-end Section 31 accounts receivable balance is for securities transactions occurring during the month of September. The increase in Section 31 accounts receivable during FY 2011 is attributable to the increase in the fee rate from $16.90 to $19.20 and a 37 percent transaction volume increase when comparing September 2010 to September 2011. TABLE 1.2 ASSETS AS OF SEPTEMBER 30, 2011 AND 2010 (DOLLARS IN MILLIONS) FY 2011 FY 2010 Fund Balance with Treasury $ 6,996 $ 6,989 Investments – Disgorgement and Penalties 750 925 Investments – Investor Protection Fund 453 - Accounts Receivable, Net 214 161 Property and Equipment, Net 94 80 Other Assets 10 7 Total Assets $ 8,517 $ 8,162 Fund Balance with Treasury Investments - Disgorgement and Penalties Investments - Investor Protection Fund Accounts Receivable, Net Property and Other Assets 82% 9% 5% 3% 1% CHART 1.3 ASSETS BY TYPE 32 2011 PERFORMANCE AND ACCOUNTABILITY REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS Financial Hi g hli g hts Thi s sect i on prov id es an ana l ys i s o f t h e  nanc i a l pos i t i on, resu l ts o f operat i ons, an d t h e un d er l y i n g causes f or s ig n i cant c h an g es in balances p resented in the S E C ’s FY 2011  nancial statements . O verview of Financial Position Asse t s . The SEC’s total assets were $8 , 517 million at September 30, 2011, an increase of $355 million or 4 percent o v e r FY 2 0 1 0 . I nvestments, Net increased b y $ 278 million due to a $ 453 million increase in Investor Protection Fund investments, and a $ 175 million decrease in Dis g or g ement and Penalty related investments. Investor Protection Fund resources were invested in Treasury securities durin g the  rst quarter of FY 2011. The d ecrease in Dis g or g ement and Penalty investments is related to the SEC’s continued efforts to accelerate distributions to harmed investors durin g FY 2011. T he increase in Accounts Receivable , Net of $53 million is mainly comprised of a $43 million increase in Section 31 fees receivable and a $9 million increase in disgorgement and penalty accounts receivable ( net ) designated as payable to the U. S . Treasury G eneral Fund upon collection. Section 31 fees are payable to SEC twice a year: in March fo r the period September through December and in Septembe r for the period January through August. Thus, the year-end Section 31 accounts receivable balance is for securities transactions occurring during the month of September. The increase in Section 31 accounts receivable during FY 2011 is attributable to the increase in the fee rate from $ 16.90 to $ 19.20 and a 37 percent transaction volume increase when c omparing September 2010 to September 2011 . TABLE 1.2 ASSETS AS OF SEPTEMBER 30 , 2011 AND 2010 ( D O LLAR S IN MILLI O N S) FY 2011 FY 201 0 Fund Balance with Treasur y $ 6,99 6 $ 6,989 I nvestments – Di sgorgement an d P ena l t i e s 7 5 0 925 I nv es tm e nt s – Inv es t o r Pr o t ec ti o n F u n d 4 53 - Accounts Receivable , Net 2 14 1 61 P ro p ert y an d Eq u ip ment, N e t 9 4 80 O th e r A sse t s 1 0 7 T ota l A ssets $ 8,517 $ 8,16 2 Fund Balance with T reasur T T y I nv es tm e nt s - Di sgorgement an d Penaltie s I nvestments - Investor Pr o t ec ti o n F u n d Accou nt s R ece i va bl e , Net Property and Other A sset s 82 % 9 % 5% 3% 1 % C HA R T 1 . 3 A SS ET S BY TYP E 3 2 2 0 11 PERF O RMAN C E AND A CCOU NTABILITY REP O R T M ANA G EMENT’ S DI SCUSS I O N AND ANALY S I S This is trial version www.adultpdf.com . Management’s Discussion and Analysis Page 45 GAO- 12-219 SEC’s Financial Statements for Fiscal Years 2011 and 2010 Financial Highlights This section provides an. balances presented in the SEC’s FY 2011  nancial statements. Overview of Financial Position Assets. The SEC’s total assets were $8,517 million at September 30, 2011, an increase of $355 million. quarter of FY 2011. The decrease in Disgorgement and Penalty investments is related to the SEC’s continued efforts to accelerate distributions to harmed investors during FY 2011. The increase