Publications
Monitor
Contact
Priority Report
SAS Gazette
InfoSight Newsletter
CUBE TV and Multimedia
League InfoSight
RateMap
CUNA News Now
Classifieds
Corporate Credit Union System Resolution
Industry Data & Analysis
MCUL Reports and Surveys
CU Resource Materials
Michigan Credit Union League Home » Information Services » Publications » News Articles  

NCUA Increases 2011 Budget by Nearly $25M   (Misc News: November 19, 2010)

The NCUA voted Thursday to increase its 2011 budget by $24.5 million to $225 million, including $750,000 to bolster examination programs.

The budget, which represents a 12 percent increase over the 2010 budget, will pay for 78 new staff positions. But it also includes 5.7 percent increase to cover increases in pay and benefits. CU Journal reported that some of the pay increases were as much as 8 percent.

In addition, credit unions should budget for 20-35 basis points worth of additional assessments next year, the NCUA said today.

A new collective bargaining agreement with the union that represents NCUA’s 900 examiners will award employees with 5 percent merit pay increases. All senior staff will receive the same 5 percent raise.  In addition, staffers in high-expense NCUA offices will receive additional locality raises of up to 3 percent, the Journal also said.

CUNA President/CEO Bill Cheney said that CUNA is concerned that the "agency is asking for more resources from credit unions at a time when so many credit unions are feeling the pain of an obstinate recession," adding that CUNA will review the proposed increase "carefully" and will "seek more answers from the NCUA."

The NCUA board also approved an overhead transfer rate increase from 57.2 percent to 58.9 percent. Additionally, the agency voted to increase the asset level dividing points for the natural person federal credit union operating fee scale by 3.4 percent and to decrease the natural person federal credit union operating fee rates by 2.86 percent.

A total of $750,000 of the budget will be provided to the Office of Examination and Insurance "to continue an operational review of the agency-wide examination and supervision program," the NCUA said. The NCUA's Office of Inspector General will receive nearly $1 million to continue its work on material loss reviews of failed credit unions and conduct independent financial audits of the NCUA's books.

Nearly $3.5 million of the funds will go to the NCUA's annual examination program, which will add 53 examiners and six supervisory examiners to various NCUA regional offices. Doing so will allow the NCUA to increase its scheduled in-house visits to troubled credit unions to once every three months. NCUA Chair Debbie Matz noted that the NCUA's increased emphasis on credit union examinations leads to "safer" credit unions, and said that she hoped that the increased exams would ultimately lead to lower credit union assessments in the future.

The assessment to repay part of the Treasury Department’s loan to the Temporary Corporate Credit Union Stabilization Fund will likely be between 20 and 25 basis points. This year the premium was 12.4 basis points. The premium to shore up the NCUSIF will likely be between 0 basis points and 10 basis points. This year, the premium was 13.4 basis points.

The Journal also reported that the budget includes $1.2 million to renovate the offices for the NCUA CFO, including replacing old furniture, painting and other repairs.

Some credit union observers were surprised when Matz discontinued the open budget briefings conducted by her predecessors.

Click here to read the NCUA’s release.

Click here to read the summary of the meeting from CUNA’s Mary Dunn.


 

 
   
MCUL Home About Us Press Room For Consumers Home Contact Us Site Map