ADP Acquisition: SEC Needs To Resolve Key Issues Before Proceeding With Its EDGAR System
IMTEC-87-2
Published: Oct 09, 1986. Publicly Released: Nov 10, 1986.
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Highlights
In response to a congressional request, GAO evaluated the Securities and Exchange Commission's (SEC) Electronic Data Gathering, Analysis and Retrieval System (EDGAR) to determine whether SEC is ready to proceed with acquisition of an operational system.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should satisfy itself that SEC has adequately responded to the issues raised in this report before providing funding for the operational EDGAR system. |
Closed – Implemented
|
The SEC Authorization Act of 1987, P.L. 100-181, limits funding for the operational EDGAR system and establishes specific reporting requirements for the project. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| United States Securities and Exchange Commission | The Chairman, SEC, should not award a contract for the operational EDGAR system until the impact of potential filer exemptions from and opposition to proposed electronic filing requirements has been fully assessed and considered in defining the system. |
Closed – Implemented
The current requests for proposals (RFP) includes provisions that: (1) allow SEC to extend the filer phase-in period based on the experience of filers; and (2) instruct the current contractor not to incur costs for data tagging until notified by SEC.
|
| United States Securities and Exchange Commission | The Chairman, SEC, should not award a contract for the operational EDGAR system until the financing approach for the operational system has been resolved with Congress to provide appropriate funding for SEC internal processing requirements. |
Closed – Implemented
SEC will fund the total internal processing system, including cost of receipt. This was confirmed in the latest RFP release, dated October 23, 1987. P.L. 100-181 also requires that appropriated funds be the exclusive source of funds for the receipt portion of the system.
|
| United States Securities and Exchange Commission | The Chairman, SEC, should not award a contract for the operational EDGAR system until a comprehensive cost/benefit analysis that better estimates the total costs of the internal system and its quantitative benefits and adequately describes the qualitative benefits of EDGAR has been completed. |
Closed – Implemented
SEC completed a cost analysis and provided a further description of EDGAR benefits. In addition, SEC must submit a cost/benefit analysis to Congress on or before award of the operational EDGAR contract.
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