MEMORANDUM

From: Mary Jo White *^— ^ Sj^ C-J tvvfcChair, U.S. Securities and Exchange Commission

Subject: U.S. Securities and Exchange Commission's (SEC) FY2014 Conference Report -

REVISED

Date: January 29, 2016

We are revising the previous report dated January 16, 2015 to report updated figures for the total

approved conference costs in FY 2014. and the costs reported for the two conferences which

exceed $100,000.

Office of Management and Budget (OMB) Memorandum M-12-12 requires federal agencies to

issue an annual report related to its conference-related expenditures for the previous fiscal year.

This document constitutes the SEC's report for Fiscal Year 2014.

The SEC has 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 ofthe

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

1. All SEC division/office requests to spend money on hosting a conference must be

approved by the division/office head. Divisions and offices are required to use SEC

facilities for such events whenever possible, to minimize space rental and equipment

costs. In order 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 otherwisejustified. In addition, whenever an

expense is projected to exceed $1,000, organizers are required to obtain quotes from

multiple vendors, so as to secure the best value for the government.

2. When a request for funds 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. Each request must receive final approval from designated officials according to the

total projected cost. These designations comply with OMB Memorandum M-12-12.

The SEC is reporting conferences which meet thresholds defined in P.L. 113-76, Division E,

Title VII, Sections (a), (b), and (c), to the SEC's Office of Inspector General (IG).

For Fiscal Year 2014, the SEC authorized an estimated total of $1,461,707 for expenditures

related to 57 conferences (including training conferences) which used FY 2014 funding.
Conferences over $100,000:

In Fiscal Year 2014, the SEC authorized two conferences costing over $100,000, which are

described below:

A. 2014National Exam Program(NEP) Leadership Conference, SEC headquarters,

Washington DC, July 30-August 1, 2014

• Total Cost incurred: $180,318

• Number of attendees*: 204 SECemployees (38 Headquarters and 166 SEC

Regional)

• Expenses included1: $179,069 for travel and lodging expenses for 166 SEC

Regional staffmembers and $1,249 for light refreshments.

The mission ofthe Office ofCompliance Inspections and Examination (OCIE) is to

improvecompliance, preventfraud, inform policy,and monitor risk. On July 30 -

August 1,2014, OCIE held its annual NEP Leadership Conference at SEC headquarters

in Washington, D.C., which focused on initiatives related to increasing OCIE's

capabilities in these areas. The conference gathered SEC managers from across the NEP

to collaborate on strategic planning and provide training. It included presentations and

discussions on risk assessment tools and procedures, implementation of Dodd-Frank Act

requirements and rulemaking, and increasing OCIE's collaboration with other

Commission offices and divisions.

B. ChiefEnforcement Conference (CEC), SEC headquarters, Washington DC, September

17-19,2014

• Total Cost incurred1": $171,914

• Number of attendees*: 188 SEC employees (77 Headquarters and 111 SEC

Regional)

• Expenses includedf: $168,945 for travel and lodging expenses for 111 SEC

Regional staffmembers, and $1,108 for light

refreshments, and $1,860 for other expenses.

The Enforcement Division conducts investigations, litigates actions, negotiates

settlements, and coordinates with the Commission and other SEC divisions and offices

regarding the national Enforcement program. The 2014 ChiefEnforcement Conference

was held at SEC headquarters in Washington, D.C. on September 17 - 19, 2014. It

provided a unique opportunity for managers and subject matter experts to discuss the

Division's current priorities, caseload, and initiatives, as well as ways to administer a

high-quality Enforcement program in the context ofincreasingly sophisticated and

dynamic capital markets. The 2014 conference gathered SEC managers from across the

Enforcement Division to collaborate on strategic planning and organizational practices.

Conference discussions were led by the Division Director and Deputy Director, and

training events were led by various managers at a senior level, including the Chief

*Thefigurefor number ofattendees is an estimate based on registered attendees.

*Thesefigures are shown in whole dollars roundedfrom the actual data.
Counsel, ChiefLitigation Counsel, regional directors, and associate directors. The

conference included distinguished outside panelists such as federal circuit and district

court judges and former SEC commissioners.

*Thefigure for number ofattendees is an estimate based on registered attendees.

^Thesefigures are shown in whole dollars roundedfrom the actual data.