NAFCU asks for judicious budget management from the NCUA
In a letter to the NCUA regarding the mid-year budget review, to "promptly schedule its customary mid-session budget review and public meeting to fulfill the agency's commitment to financial transparency." In the past, the NCUA has fulfilled this promise by providing the public with information concerning the budget and spending followed by a public meeting each July for credit union stakeholders.
As the economy continues to recover from the coronavirus pandemic, Berger highlighted the importance of "judiciously" managing the agency's budget and asked the agency to "carefully evaluate how it plans to utilize its remaining resources in 2021 and revisit its 2022 draft budget, which included an 8.3 percent increase to the operating budget in anticipation of travel expenditures."
Berger applauded the NCUA for its “leadership and commitment to ensuring a safe and sound credit union system.” Additionally, he encouraged them to continue making investments in innovative programs that will help credit union members.
“The mid-year review of the budget is an important time to reflect and identify areas for additional growth and opportunity,” Berger concluded. “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.”
NAFCU has consistently cautioned against annual budget increases and in testimony during the 2021-2022 public hearing the association offered recommendations for cost saving measures and ways to improve overall budget efficiency.
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