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July 24, 2015
Voting 2-1, NCUA Board clears $1.3M mid-year budget reduction
A $1.3 million reduction in NCUA's approved 2015 operating budget cleared the NCUA Board Thursday on a vote of 2-1, with Board Member J. Mark McWatter dissenting due to ongoing dissatisfaction with the agency's budget process.
The reduction approved Thursday was made possible largely by several vacancies that are keeping down the agency's employee pay and benefits expense (under budget by $1.4 million) and travel expense (under budget $428,000).
Other areas coming in under budget are rent/communications/utilities (under $348,000); administrative (under $159,000); and contracted services (under $588,000). That $2.95 million aggregate reduction is offset by a $1.6 million increase in the capital budget. The net $1.3 million reduction will be used to offset 2016 budget requirements and reduce operating fees.
McWatters, in voting no, cited ongoing concerns about the lack of disclosure by NCUA regarding its operating expenses.
When McWatters voted against the 2015 budget last November, he provided a list of 11 things he wanted to see addressed. On Thursday, Matz noted that eight of those have been done and asked whether McWatters viewed the response on those issues inadequate. McWatters requested a fuller briefing.
NAFCU continues to press the agency for more transparency as well as reinstatement of budget hearings, among other improvements.
"NAFCU continues to urge NCUA to ensure it is making the very best of the dollars credit unions pay – dollars credit unions otherwise would be using to strengthen operations and meet the needs of their members," said association President and CEO Dan Berger. "Credit unions are obligated by law to provide these monies, but that does not preclude NCUA from its responsibility to operate in an efficient manner – or to be open about the manner in which the funds provided by credit unions are utilized."
The board is set to act on a 2016 budget in November.
The reduction approved Thursday was made possible largely by several vacancies that are keeping down the agency's employee pay and benefits expense (under budget by $1.4 million) and travel expense (under budget $428,000).
Other areas coming in under budget are rent/communications/utilities (under $348,000); administrative (under $159,000); and contracted services (under $588,000). That $2.95 million aggregate reduction is offset by a $1.6 million increase in the capital budget. The net $1.3 million reduction will be used to offset 2016 budget requirements and reduce operating fees.
McWatters, in voting no, cited ongoing concerns about the lack of disclosure by NCUA regarding its operating expenses.
When McWatters voted against the 2015 budget last November, he provided a list of 11 things he wanted to see addressed. On Thursday, Matz noted that eight of those have been done and asked whether McWatters viewed the response on those issues inadequate. McWatters requested a fuller briefing.
NAFCU continues to press the agency for more transparency as well as reinstatement of budget hearings, among other improvements.
"NAFCU continues to urge NCUA to ensure it is making the very best of the dollars credit unions pay – dollars credit unions otherwise would be using to strengthen operations and meet the needs of their members," said association President and CEO Dan Berger. "Credit unions are obligated by law to provide these monies, but that does not preclude NCUA from its responsibility to operate in an efficient manner – or to be open about the manner in which the funds provided by credit unions are utilized."
The board is set to act on a 2016 budget in November.
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