Newsroom
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.
Share This
Related Resources
Add to Calendar 2024-05-16 14:00:00 2024-05-16 14:00:00 Spotting and Reporting Elder Financial Exploitation Elder financial abuse cases can often be difficult to investigate. Join us in learning more about the evolving red flags associated with this crime as well as the current regulatory landscape. In this webinar, Spotting and Reporting Elder Financial Exploitation, you’ll discover useful insights into performing an elder abuse investigation as well as reporting requirements. At the end, you and your team will feel confident in handling financial exploitation cases. Key Takeaways Identify changing red flags for financial exploitation Locate important resources for your investigations Draft eye-catching SARs Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until May 16, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCBSOs NCCOs NCRMs BSA, compliance and risk titles Education Credits NCRMs will receive 1.0 CEUs for participating in this webinar NCCOs will receive 1.0 CEUs for participating in this webinar NCBSOs will receive 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Spotting and Reporting Elder Financial Exploitation
Credits: NCCO, NCBSO, NCRM
Webinar
Add to Calendar 2024-05-14 14:00:00 2024-05-14 14:00:00 Navigating Fair Lending Compliance: Laws, Best Practices, and Regulatory Guidance Join our impactful webinar, Navigating Fair Lending Compliance: Laws, Best Practices, and Regulatory Guidance. This session is designed to enhance your understanding of federal fair lending and related laws, focusing on their interplay and including key statutes such as the Equal Credit Opportunity Act, the Home Mortgage Disclosure Act, and the Fair Credit Reporting Act. You’ll also delve into practical guidance and best practices to ensure your institution adheres to regulatory expectations and offers products and services in a fair and non-discriminatory manner. Key Takeaways Understand and identify various forms of discrimination in lending practices Review and interpret guidance from regulators to improve compliance strategies Get up to speed with the latest updates, including the new Regulation B rule on small business lending Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until May 14, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar NCCOs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Navigating Fair Lending Compliance: Laws, Best Practices, and Regulatory Guidance
Credits: NCCO, NCBSO, NCRM, NCVE
Webinar
Add to Calendar 2024-05-13 09:00:00 2024-05-13 09:00:00 Covering Your Assets- The Bottom Line on Tracking and Collateral Protection Listen On: Key Takeaways: [04:23] Having access to policy and claim information is vitally important so you can mitigate your risks in that area. [06:39] Members are shopping and changing their insurance more than ever before. 41% of households with car insurance shopped for coverage at least once in the last 12 months. [10:05] One of the leading indicators of a default or a repossession situation is the dropping of insurance. [12:49] The most important thing from a tracking and risk management perspective is to make sure that the borrower lists the credit union as a lienholder. Web NAFCU digital@nafcu.org America/New_York public
Covering Your Assets- The Bottom Line on Tracking and Collateral Protection
Strategy & Growth, Consumer Lending
preferred partner
Allied Solutions
Podcast
Add to Calendar 2024-05-07 14:00:00 2024-05-07 14:00:00 BSA Training for the Board of Directors This webinar, BSA Training for the Board of Directors provides vital training with a comprehensive overview of the Bank Secrecy Act (BSA), anti-money laundering (AML) and combatting the financing of terrorism (CFT) compliance requirements. You’ll explore the ramifications of non-compliance and gain insights into the expectations and requirements set forth by the National Credit Union Administration (NCUA). This includes discovering how board engagement plays a pivotal role in fostering a robust BSA/AML compliance program within your credit union. Don’t miss this opportunity to equip your board with the knowledge and insights needed to navigate the regulatory landscape effectively. Key Takeaways Identify BSA/AML compliance requirements Review board member duties as it relates to BSA/AML compliance Examine current regulatory actions that may impact your credit union Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until May 2, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend Board members Board chairs and vice chairs Supervisory committee members Presidents/CEOs Executive assistants Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar NCCOs will recieve 1.0 CEUs for participating in this webinar NCBSOs will recieve 1.0 CEUs for participating in this webinar NCVEs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
BSA Training for the Board of Directors
Credits: NCCO, NCBSO, NCRM, NCVE
Webinar
Get daily updates.
Subscribe to NAFCU today.