United States Government Accountability Office GAO November 2011 _part6 pptx

Management’s Discussion and Analysis Page 57 GAO-12-219 SEC’s Financial Statements for Fiscal Years 2011 and 2010 TABLE 1.9 PERFORMANCE INDICATORS RESULTS SUMMARY GOAL 1: Foster and Enforce Compliance with the Federal Securities Laws OUTCOME 1.1: The SEC fosters compliance with the Federal securities laws. FY 2010 Actual FY 2011 Actual INDICATOR 1: Percentage of actions identi ed as “high impact” which have resulted in signi cant corrective industry reaction N/A N/A INDICATOR 2: Annual increases or decreases in the number of CCOs attending CCOutreach programs N/A N/A OUTCOME 1.2: The SEC promptly detects violations of the Federal securities laws. FY 2010 Actual FY 2011 Actual INDICATOR 3: Percentage of exams that identify de ciencies, and the percentage that result in a “signi cant  nding” Percentage identify de ciencies 72% 82% Percentage that result in a “signi cant  nding” 42% 42% INDICATOR 4: Number of investigations or cause exams from tips: Number of investigations 303 349 Number of cause exams N/A N/A OUTCOME 1.3: The SEC prosecutes violations of Federal securities laws and holds violators accountable. FY 2010 Actual FY 2011 Actual INDICATOR 5: SEC investigations referred to SROs or other state, Federal, and foreign authorities for enforcement 492 586 INDICATOR 6: Percent of all enforcement investigations deemed “high impact” 3.26% 5.11% INDICATOR 7: Percent of investigations that come from internally-generated referrals or prospects 21.9% 18.5% INDICATOR 8: Criminal investigations relating to SEC investigations 139 134 INDICATOR 9: Disgorgement and penalties ordered and the amounts collected by the SEC: Ordered amounts (in millions) $2,846 $2,806 Collected amounts (in millions) $1,775 $1,281 INDICATOR 10: Requests from foreign authorities for SEC assistance and SEC requests for assistance from foreign authorities Number of requests from foreign authorities 457 492 Number of SEC requests 605 772 GOAL 2: Establish an Effective Regulatory Environment OUTCOME 2.1: The SEC establishes and maintains a regulatory environment that promotes high-quality disclosure,  nancial reporting and governance, and that prevents abusive practices by registrants,  nancial intermediaries, and other market participants. FY 2010 Actual FY 2011 Actual INDICATOR 1: Average cost of capital in U.S. relative to the rest of the world 10.99% 10.67% OUTCOME 2.2: The U.S. capital markets operate in a fair, ef cient, transparent and competitive manner, fostering capital formation and useful innovation. FY 2010 Actual FY 2011 Actual INDICATOR 2: Average quoted spread for exchange listed stocks on a monthly basis (in cents) 2.52 1.76 INDICATOR 3: Average effective spread for exchange listed stocks on a monthly basis (in cents) 2.65 1.72 INDICATOR 4: Speed of execution (in seconds) 1.77 1.02 INDICATOR 5: Average quoted size of exchange listed stocks on a monthly basis 687 606 INDICATOR 6: Average daily volatility of exchange listed stocks on a monthly basis 1.18% 1.26% OUTCOME 2.3: The SEC adopts and administers rules and regulations that enable market participants to understand clearly their obligations under the securities laws. FY 2010 Actual FY 2011 Actual INDICATOR 7: Percentage of SRO rule  lings that are submitted for immediate effectiveness 69% 77% N/A – Signi es data does not currently exist for existing or newly added measures 44 2011 PERFORMANCE AND ACCOUNTABILITY REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 2 . 52 1.7 6 I NDI C AT O R 3: Average effective spread for exchange listed stocks on a monthly basis ( in cents ) 2 .65 1.72 I NDICATOR 4 : Speed of execution (in seconds) 1.77 1. 02 I NDI C AT O R 5: Average quoted size of exchange listed stocks on a monthly basis 68 7 606 I NDICATOR 6 : A vera g e d a il y vo l at ili ty o f exc h an g e li ste d stoc k s on a mont hl y b as is 1 .18 % 1.26 % OUTCOM E 2.3: The SEC adopts and administers rules and regulations that enable market participants to understand clearly their o bli g ations under the securities laws. F Y 201 0 A c t ual F Y 201 1 A c t ua l I NDI C AT O R 7 : Percentage of S R O rule  lings that are submitted for immediate effectivenes s 6 9% 77 % N/A – Si g ni es data does not currently exist for existin g or newly added measure s 44 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 T ABLE 1. 9 P ERF O RMAN C E INDI C AT O R S RE SU LT S SU MMARY GO A L 1: Foster and En f orce C ompliance with the Federal S ecurities Laws OU T CO M E 1.1: The S E C f osters com p liance with the Federal securities laws. FY 201 0 Actua l FY 201 1 Actual I NDI C AT O R 1 : Percentage of actions identi ed as “high impact” which have resulted in signi cant corrective i n d ustr y react i o n N /A N/ A I NDI C AT O R 2 : Annual increases or decreases in the number of CCOs attendin g CCOutreach pro g rams N/ A N /A OUTCOM E 1.2: The SEC promptly detects violations of the Federal securities laws . F Y 2 0 1 0 A ctua l F Y 2 0 1 1 A ctua l I NDICATOR 3 : P ercenta g e o f exams t h at id ent if y d e  c i enc i es, an d t h e percenta g e t h at resu l t i n a “ s ig n i cant  n di n g” Percentage identify de ciencies 72% 8 2 % P ercenta g e t h at resu l t i n a “ s ig n i cant  n di n g” 4 2 % 42 % I NDI C AT O R 4 : Number of investi g ations or cause exams from tips: N um b er o f i nvest i gat i on s 303 3 4 9 N u m be r o f cause e x a m s N/ A N /A O UT CO M E 1.3: The S E C prosecutes violations o f Federal securities laws and holds violators accountable . F Y 2 0 1 0 A ctua l F Y 2 0 1 1 A ctua l I NDICATOR 5 : SEC investi g ations referred to SROs or other state, Federal, and forei g n authorities for enforcement 492 586 I NDI C AT O R 6: Percent of all enforcement investigations deemed “high impact ” 3.26 % 5.11 % I NDICATOR 7 : P ercent o f i nvest ig at i ons t h at come f rom i nterna ll y- g enerate d re f erra l s or prospects 21.9 % 18.5 % I NDI C AT O R 8: C riminal investigations relating to S E C investigations 1 39 1 3 4 I NDICATOR 9 : Dis g or g ement and penalties ordered and the amounts collected by the SEC: O rdered amounts ( in millions ) $ 2,84 6 $ 2,806 Collected amounts ( in millions ) $1 , 775 $ 1 , 281 I NDI C AT O R 1 0 : R equests from forei g n authorities for SEC assistance and SEC requests for assistance from forei g n authoritie s N um b er o f requests f rom f ore i gn aut h or i t i es 4 57 4 92 Number of SEC requests 605 772 GO AL 2: Establish an E ff ective Regulatory Environment OU T CO M E 2.1: The SEC establishes and maintains a re g ulatory environment that promotes hi g h-quality disclosure,  nancial reportin g a nd governance, and that prevents abusive practices by registrants,  nancial intermediaries, and other market participants . FY 2 0 1 0 A ctua l FY 2 0 1 1 A ctua l I NDI C AT O R 1 : Avera g e cost of capital in U.S. relative to the rest of the worl d 1 0.99 % 10.67 % OU T CO M E 2.2: The U. S . capital markets operate in a f air, e f cient, transparent and competitive manner, f osterin g capital formation and useful innovation . F Y 2 0 1 0 A ctua l F Y 2 0 1 1 A ctua l I NDI C AT O R 2 : Avera g e quoted spread for exchan g e listed stocks on a monthly basis (in cents) This is trial version www.adultpdf.com . Management’s Discussion and Analysis Page 57 GAO- 12-219 SEC’s Financial Statements for Fiscal Years 2011 and 2010 TABLE 1.9 PERFORMANCE INDICATORS RESULTS SUMMARY. 77% N/A – Signi es data does not currently exist for existing or newly added measures 44 2011 PERFORMANCE AND ACCOUNTABILITY REPORT MANAGEMENT’S DISCUSSION AND ANALYSIS 2 . 52 1.7 6 I NDI C AT O R. N/A OUTCOME 1.2: The SEC promptly detects violations of the Federal securities laws. FY 2010 Actual FY 2011 Actual INDICATOR 3: Percentage of exams that identify de ciencies, and the percentage that