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Ahead of the NCUA Board meeting today where staff will brief the board on the 2022 mid-session budget, NAFCU’s President and CEO Dan Berger recommended the agency “continue to work to find cost-saving efficiencies while ensuring sufficient resources are devoted toward the programs that will best assist credit unions in serving their members and communities.”

In the letter, Berger reiterated the essential role that the agency’s mid-session budget review plays in fostering transparency for credit unions to understand the utility of their funds. In addition, Berger addressed the economic disruptions from the pandemic and urged the NCUA to “carefully evaluate” how it plans to utilize remaining resources in 2022.

Of note, Berger urged the agency to revisit its 2023 draft budget, as it included a 13.5 percent increase to its Operating Budget in anticipation of an increased staffing level as well as greater travel expenditures. “Given the track record of success with less travel and more remote activity during the pandemic, we do not see the need for such an increase,” stated Berger. “We believe credit unions would be better served by the agency building off the changes and efficiencies made during the pandemic to keep costs down.”

In addition, Berger urged the NCUA to return the excess cash from operating fees unspent in 2021 back to credit unions, rather than repurpose those funds. “NAFCU once more calls on the NCUA to scrutinize its cash needs to determine whether these funds are truly necessary, and if so, why the agency’s cash needs have risen so dramatically in such a short period of time,” wrote Berger.

“The mid-year review of the budget is an important time to reflect and identify areas for additional growth and opportunity,” concluded Berger. “Providing more opportunities for direct feedback from credit unions and their members, whether during the budget process or otherwise, fosters accountability and transparency that helps strengthen the credit union system.”

Read the full letter. NAFCU has previously called on the NCUA to make changes to its budget approach in light of the pandemic. Of note, NAFCU Vice President of Regulatory Affairs Ann Petros participated in the agency’s public budget hearing in December and sent a letter outlining shared credit union concerns and specific recommendations to enhance the agency’s budget efficiency.