FASB fees, oversight taken seriously by FAF.

• Author: Polley, Teresa S.
• Position: LETTERS TO THE EDITOR - Letter to the editor

I am writing in response to a letter from Ken Kelly, senior vice president & controller of McCormick & Co., (June 2010 issue). In his letter, Mr. Kelly comments on the 2010 billing for Financial Accounting Standards Board accounting support fees; specifically, he states that he is astounded that the fees could be allowed to increase "so dramatically."

I want to assure Mr. Kelly, and all issuers who pay fees in support of the FASB, that the FAF takes its oversight responsibility seriously, and follows a rigorous process in review and approval of the annual budget. We strive to spend the FAF's resources prudently whatever the economic conditions and are very aware of the difficulties our constituents have faced and continue to face in these difficult times.

In fact, just over a year ago, we completed an extensive review of our operations, resulting in the elimination of several positions and the realignment and restructuring of certain departments to improve our efficiency and effectiveness. Those actions, among others, have resulted in operating efficiencies and cost savings.

Despite those actions, and as Mr. Kelly accurately points out, the FASB budget increased 18 percent in 2010.

That increase is driven primarily by the FAF and FASB taking on...