UN ITED STAT ES 

SECU R ITIES A ND EXCHA N G E COMMISSION 

WASH I NGTON, D.C. 20549 

THE CHAIRMAN 

MEMORANDUM 

From: 	 Elisse B. Walter 2p.uv ;5u1Ji2tu

Chairman, U.S. Securities and Exchange Commission 

Subject: U.S. Securities and Exchange Commission 's (SEC) 

FY 2012 Conference Spending 

Date: 	 January 31 , 2013 

The Office ofManagement and Budget (OMB) has issued memorandum M-12-12 , which 

requires federal agencies to issue an annual report regarding its conference-related expenditures 

for the previous year. Accordingly, below is the relevant information about SEC sponsored 

conference spending for Fiscal Year 2012. 

The SEC has put in place policies and procedures governing the approval and use of agency 

funds for conference expenses to ensure that such spending is legal, reasonable, and in 

furtherance of the agency ' s mission. At a high level, the major steps in this process are as 

follows: 

I. 	 All SEC division/office requests to spend money on a conference must be approved by 

the division/office head. Divisions and offices are required to use SEC faci lities for such 

events wherever possible to minimize space rent and equipment costs. To limit expenses 

for meals or refreshments, the SEC uses per diem rates established for the federal 

government as the ceiling for any such costs, except when higher rates are unavoidable 

or otherwise justified, as approved in advance by the Chief Financial Officer. 

2. 	 When a request for conference spending is necessary and has received approval from the 

division/office head, it is reviewed by staff in the Office of Financial Management to 

ensure the expenses are permissible and reasonable. 

3. 	 In accordance with OMB Memorandum M-12-1 2, each request must receive final 

approval from either the Chief Financial Officer (if the estimated cost is up to $1 00,000), 

or the Chief Operating Officer (if the estimated expenses are between $100,000 and 

$500 ,000). The agency will not pay for a conference costing more than $500,000, unless 

a waiver is approved by the Chairman. 

For Fiscal Year 2012, the SEC authorized a total of $797,120 for expenditures related to 21 

conferences (including training conferences) which used Fiscal Year 2012 funding. 
Conferences over $100,000 

In Fiscal Year 2012, the SEC authorized two conferences costing over $100,000, both ofwhich 

took place at SEC headquarters to minimize costs. The details for these two conferences are 

shown below: 

A. 	 Chief Enforcement Conference (CEC), SEC headquarters, Washington DC, October 2-5, 

2012 

• 	 Total Cost incurred: $199,867 

• 	 Number of attendees: 119 SEC Employees (19 Headquarters and 100 SEC 

Regional) 

• 	 Expenses incurred were for travel and lodging expenses for 1 00 SEC Regional 

staff members 

• 	 No additional costs were incurred for meals, refreshments, space rental, or 

equipment rental 

The Division ofEnforcement's mission is to enforce the securities laws, supporting the 

Commission's mandate to protect investors. This annual conference gathers managers 

from the nationwide Enforcement program to review and collaborate on organizational 

priorities. At the CEC, leaders learn from recent work throughout the program and 

coordinate with other Divisions and offices within the SEC. This allows the Division to 

maximize shared knowledge that assists the Division in keeping pace with the 

sophisticated and dynamic capital markets. Highlights ofthe conference included panel 

discussions on partnerships with other Federal and State law enforcement entities, lessons 

learned from recent Enforcement activities, and a rollout of initiatives for Fiscal Year 

2013. Additionally, topics specific to management staff were addressed in this forum, 

enabling consistency of policy, procedure, and communication across the Division. 

B. 	 2012 National Examination Program (NEP) Leadership Conference, SEC headquarters, 

Washington DC, June 15,2012 

• 	 Total Cost incurred: $203,501 

• 	 Number of attendees: 254 SEC Employees (52 Headquarters and 202 SEC 

Regional) 

• 	 Expenses incurred were $202,200 for travel and lodging expenses for 202 SEC 

Regional staff members and $1 ,301 for light refreshments. 

The Office of Compliance Investigations and Examinations' (OCIE) protects investors 

through conducting examinations of the nation's registered entities (e.g., broker-dealers, 

investment advisers, investment companies, self-regulatory organizations). OCIE's 

mission is to improve compliance, prevent fraud, monitor risk and inform policy. The 

2012 NEP Leadership Conference focused attention on initiatives related to increasing 

our capabilities in these areas, allowing OCIE to maximize shared knowledge and apply 

it in connection with its examinations. This conference gathered SEC managers from 

across the NEP to collaborate on strategic planning and organizational priorities. The 

conference included discussions on governance, structure, process, technology, and 

compliance related to risk assessment tools and procedures, implementation of DoddFrank Act requirements and rulemaking, and collaboration with other Commission 

offices and divisions. 

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