MEMORANDUM

From: Kenneth A. Johnson

Chief Financial Officer, U.S««8ecurities and Exchange Commission

Subject: U.S. Securities and Exchange Commission's (SEC) FY2016 Conference Report

Date: January 5, 2017

Office ofManagement and Budget (OMB) memorandum M-12-12, as amended by memorandum

M-17-08, requires federal agencies to issue an annual report related to its conference-related expenditures

for the previous fiscal year. This documentconstitutesthe SEC's report for Fiscal Year (FY) 2016.

The SEC has put in place policiesand procedures governing the approval and use of agency funds for

conference expenses, to ensurethat suchspending islegal, reasonable, and in furtherance of the agency's

mission. At a high level, the major steps in this processare as follows:

1. All SEC division/officerequests to spendmoney on hosting a conference must be approved by

the division/office head or his/her designee. Divisions and offices are required to use SEC

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

orderto limit expenses for mealsor refreshments, the SEC uses per diem rates established for

the federal government as the ceiling for any suchcosts,exceptwhen higher rates are

unavoidable or otherwise justified. In addition, whenever an expenseis projectedto exceed

$1,000, organizers arerequired to obtain quotes from multiple vendors, so as to secure the best

value for the government.

2. When a request for funds isnecessary and has received approval from the division/office head,

it isreviewed by staffinthe Office of Financial Management (OFM) to ensure the expenses

are permissible and reasonable. At the beginning ofFY 2015, OFM implemented the

Automated Conference Request System (ACRS) fortheelectronic submission, review, and

approval ofall SEC conference requests. ACRS has given OFM the ability tomonitor and

control conference spending, aswell asrecord actual conference spending after any

conference has been held.

3. Each request must receive final approval from designated officials according tothe total

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

4. The SEC isreporting conferences which meet thresholds defined inP.L. 114-113, Division E,

Title VII, Sections (a), (b), and (c), tothe SEC's Office ofInspector General (IG) via separate

correspondence.

For FY 2016, the SEC authorized atotal of$1,553,292 for expenditures related to 112 conferences

(including training conferences) which used FY 2016 funding.

Conferences over $100.000:

In Fiscal Year 2016, the SEC authorized three conferences costing over $100,000, which are described

below:
A. 2016 NationalTrial Attorneys Conference, SEC headquarters, Washington DC, September 8-9, 2016

• Total Cost incurred: $108,512

• Number of attendees: 130 attendees (129 SEC attendees and 1 non SEC attendee)

The 2016 National Trial Attorneys Conference was a two-day event for all SEC trial attorneys,

Regional Trial Counsel, Supervisory Trial Counsel, and Trial Unit Senior Officers. The

conference was held at SEC headquarters in Washington, D.C. on September 8 and 9,2016. The

conference included panel discussions and trainingon developments in substantive areasof law

that staff encounter in their litigation practice at the SEC, and on procedures to help make their

approach to cases consistent. The event also providedan opportunity for attendees to meet

colleagues from other offices in person and shareideas.

B. 2016 Chief Enforcement Conference (CEC), SEC headquarters, Washington DC, September 15-16,

2016

• Cost incurred: $142,916

• Number of attendees: 193 attendees (192 SEC attendees and 1 non SEC attendee)

The Enforcement Division conductsinvestigations, litigates actions, negotiates settlements, and

coordinates with the Commission and other SEC divisions and offices regarding the national

enforcement program. The 2016 ChiefEnforcement Conference (CEC) was heldat SEC

headquarters inWashington, D.C. onSeptember 15 and 16, 2016. The conference served as a

strategic planning and training session for the Division's senior managers, and provided an

important opportunity for attendees todiscuss relevant enforcement topics with the Chair and

participating Commissioners.

C. 2016 National Training Leadership Conference for the Office ofCompliance Inspections and

Examinations (OCIE), SEC headquarters, Washington DC, July 13-15, 2016

• Cost incurred: $230,002

• Number of attendees: 251 attendees (251 SEC attendees)

The mission of OCIE istoimprove compliance, prevent fraud, inform policy, and monitor risk.

On July 13-15, 2016, OCIE held its annual leadership conference at SEC Headquarters in

Washington DC, which focused on initiatives to increase OCIE's capabilities in the above areas.

The conference gathered SEC managers from across the National Examination Program to

collaborate on strategic planning and toprovide training. It included presentations and

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

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

offices and divisions.