SEC Academic Fellowships

2005–2006

The United States Securities and Exchange Commission (SEC) announces the availability of its 2005–2006 fellowship opportunities in the Office of the Chief Accountant (OCA), the Division of Corporation Finance (DCF), and the Office of Economic Analysis (OEA). An unparalleled opportunity for financial accounting and auditing professors, a fellowship typically lasts for 12 months (August 1–July 31). While on sabbatical or leave of absence from the home university, an academic fellow maintains an employee relationship with the home institution, typically earning 12/9 of the usual 9-month academic salary (currently up to about $158,844), plus benefits and relocation expenses. [Note: The salary cap does not mean that an academic fellow's maximum 12-month salary is $158,844. Rather, $158,844 is the maximum salary that the SEC will reimburse to the school (all normal university benefits will also be reimbursed). The employing university is permitted to pay the professor more than this amount.]

The OCA and OEA fellowships require a Ph.D.; DCF requires a Master's degree or Ph.D. Applicants for the OCA and OEA fellowships should have teaching and research credentials in financial accounting and/or auditing. The DCF fellow should have experience in teaching upper level financial accounting courses and, preferably, expertise in quantitative analysis and finance.

The United States Securities and Exchange Commission (SEC) invites qualified accounting professors to apply for one of four available fellowship opportunities for the 2005–2006 academic year at its headquarters in Washington, DC. An academic fellowship at the SEC provides an unparalleled opportunity for a professor to be directly involved in the work of the Commission and to gain insight into the SEC's oversight and regulatory processes. An SEC fellowship is a notable way to spend a sabbatical year or a leave of absence and offers a set of memorable experiences that will greatly enhance subsequent teaching and publication activities.

FELLOWSHIP DESCRIPTIONS

Office of the Chief Accountant. Two of the fellowships are in the Office of the Chief Accountant (OCA), which functions as the primary advisor to the Securities and Exchange Commission on accounting and auditing matters. It is anticipated that one of the two fellowships will require credentials in financial accounting, while the other will require credentials in auditing. These academic fellows serve as research resources for OCA, assist in registrant matters, and participate in OCA projects. Further, the fellows are asked to develop and present a training session on emerging or controversial accounting / auditing issues for accountants and attorneys at the Commission. These fellowships, which have been in existence for over 20 years, are for research-oriented professors with an interest in working closely with OCA leadership and staff on auditor and registrant issues. Requirements include a Ph.D., a strong research background in financial accounting and/or auditing, and a CPA or equivalent technical expertise.

Division of Corporation Finance. The third fellowship is in the Division of Corporation Finance, which oversees corporate disclosure of information to the investing public. Its staff is responsible for the review of corporate filings by publicly held companies, such as registration statements and annual reports/10-Ks. The fellowship, which originated about six years ago, typically involves researching financial reporting issues in connection with Division policy or program initiatives, reviewing filings by public companies to identify significant accounting and disclosure problems, and developing and presenting training on emerging or controversial accounting issues for accountants and attorneys at the Commission. Requirements include a Master's or Ph.D. and teaching experience in upper-level/advanced financial accounting courses. Expertise in quantitative analysis and finance, as well as the ability to discuss issues in plain English, are plus factors.

Office of Economic Analysis. The fourth fellowship is in the Office of Economic Analysis (OEA), which advises the Commission and its staff on the economic issues associated with the SEC's regulatory and policy activities. Accountants who serve as Academic Fellows in OEA are responsible for designing and conducting studies of the economic impact of existing and proposed rules promulgated by the Commission and self-regulatory agencies. They provide analytical support and advice to the Chief Economist and senior Commission staff on regulatory policy, enforcement policy, and financial economics. In addition, they design economic studies in anticipation of, and in response to, developments in the securities markets, prevailing financial practices among issuer firms, and Commission policies. A Ph.D. is required. Accountants in OEA tend to specialize in financial accounting or auditing.

COMPENSATION AND APPLICATION INFORMATION

Timing, Compensation, and Benefits. For faculty members at U.S. universities, the academic fellow positions are available under the Intergovernmental Personnel Act (IPA) and generally involve a 12-month period, August 1–July 31. An IPA contract is agreed upon by the SEC, the professor, and the professor's university. Under an IPA contract, the professor continues to be an employee of the university, being paid by the university and receiving its benefits package; the SEC, in turn, reimburses the university. Compensation for an academic fellow is typically 12/9s of the professor's academic year salary, up to a maximum of pay grade SK 16/31 (currently about $158,844) plus related benefits. Relocation expenses to and from Washington, D.C. are generally reimbursed in accordance with Federal Travel Regulations and standard SEC policies which apply to IPA assignments.

[Note: The salary cap does not mean that an academic fellow's maximum 12-month salary is $158,844. Rather, $158,844 is the maximum salary that the SEC will reimburse to the school (all normal university benefits will also be reimbursed). The employing university is permitted to pay the professor more than this amount.]

Application Procedures. Please consider applying for these outstanding professional development opportunities. First, indicate your initial interest by sending an e-mail to one or more current academic fellows in Office of the Chief Accountant (Jonathan Glover gloverj@sec.gov; Audrey Gramling gramlinga@sec.gov ), the Division of Corporation Finance (David Sherman shermand@sec.gov ), or Office of Economic Analysis (Agnes Cheng (chenga@sec.gov). Feel free to contact the current academic fellows to discuss the nature of the position.

IMPORTANT:

Formal applications are accepted only electronically. To apply formally, you must submit a vita and a cover letter which summarizes your qualifications and indicates the fellowship(s) in which you are primarily interested. Optionally, provide a copy of one or more relevant working papers or recently published articles. Applications for fellowships in all areas must be submitted electronically to Audrey Gramling at gramlinga@sec.gov.

Application reviews for the 2005–2006 academic fellowships will begin December 15, 2004, and will continue until the positions are filled. Interviews will be conducted at the SEC headquarters in Washington, DC. Candidates' travel expenses cannot be reimbursed. The SEC's goal is to announce final selections by February 2005.

To find out more about the experiences of three previous academic fellows, see Thomas J. Linsmeier's article in Accounting Horizons (September 1996) and articles by Steve Kolenda and Patricia Fairfield in the Financial Reporting Journal (Summer 2000.)

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