[Federal Register Volume 69, Number 38 (Thursday, February 26, 2004)]
[Notices]
[Pages 8992-8993]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-4272]


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SECURITIES AND EXCHANGE COMMISSION

[Securities Act of 1933; Release No. 8390/February 20, 2004]
[Securities Exchange Act of 1934; Release No. 49291/February 20, 2004]


Order Approving Public Company Accounting Oversight Board Budget 
and Annual Accounting Support Fee for Calendar Year 2004

    The Sarbanes-Oxley Act of 2002 (the ``Act'') established the Public 
Company Accounting Oversight Board (``PCAOB'') to oversee the audits of 
public companies and related matters, to protect investors, and to 
further the public interest in the preparation of informative, accurate 
and independent audit reports. The PCAOB is to accomplish these goals 
through registration of public accounting firms and standard setting, 
inspection, and disciplinary programs. Section 109 of the Act provides 
that the PCAOB shall establish a reasonable annual accounting support 
fee, as may be necessary or appropriate to establish and maintain the 
PCAOB. Section 109(h) amends section 13(b)(2) of the Securities 
Exchange Act of 1934 to require issuers to pay the allocable share of a 
reasonable annual accounting support fee or fees, determined in 
accordance with section 109 of the Act. Under section 109(f), the 
aggregate annual accounting support fee shall not exceed the PCAOB's 
aggregate ``recoverable budget expenses,'' which may include operating, 
capital and accrued items. Section 109(b) of the Act directs the PCAOB 
to establish a budget for each fiscal year in accordance with the 
PCAOB's internal procedures, subject to approval by the Commission.
    The PCAOB adopted a budget for calendar year 2004 at an open 
meeting on November 25, 2003, and submitted that budget to the 
Commission for approval on November 26, 2003. In accordance with its 
responsibilities to oversee the PCAOB, the Commission has reviewed the 
budget proposed by the PCAOB for 2004 and its aggregate accounting 
support fee for 2004, which will fund the PCAOB's expenditures. During 
the course of that review, among other things, we reviewed and relied 
upon representations and supporting documentation from the PCAOB. The 
Commission did not identify any proposed disbursements in the budget 
that are not properly recoverable through the annual accounting support 
fee, and the Commission believes that the aggregate proposed 2004 
annual accounting support fee does not exceed the PCAOB's aggregate 
recoverable

[[Page 8993]]

budget expenses for 2004. After its review, the Commission determined 
that the PCAOB's 2004 budget and annual accounting support fee are 
consistent with section 109 of the Act. Accordingly,
    It is ordered, pursuant to section 109 of the act, that the PCAOB 
budget and annual accounting support fee for calendar year 2004 are 
approved.

    By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-4272 Filed 2-25-04; 8:45 am]
BILLING CODE 8010-01-P