Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

NCUA 2014 Budget Contains 6.7% Increase
ALEXANDRIA, Va. (11/22/13)--The National Credit Union Administration's proposed 2014 budget is $268.2 million, an increase of 6.7% from the 2013 NCUA budget. This is the sixth straight year that the agency's planned expenditures have grown.

Click to view larger image NCUA board member Michael Fryzel, left, talks numbers with agency CFO Mary Ann Woodson at Thursday's open board meeting. (CUNA Photo)
"The Credit Union National Association remains very concerned about the size of the agency's budget and the continued budget growth for NCUA, particularly in light of the welcome decline in the assets in troubled credit unions over the past few years," CUNA President/CEO Bill Cheney said. "Credit unions have to manage resources prudently or be subject to sanctions. The NCUA should not set one standard for itself and another for credit unions. Credit unions remain concerned that they work hard to contain costs and they feel their agency should do so as well," Cheney noted.

The total amount of 2014 funding increase is $16.9 million.

Employee pay and benefits account for 73%, or $194.6 million, of the 2014 budget.

The NCUA also plans to add $1.7 million in new administrative expenses, an increase in contract service expenses of about $3.1 million and $652,796 in new travel expenses.

CUNA has repeatedly encouraged NCUA to use restraint as it sets its budget. CUNA's Examination and Supervision Subcommittee is reviewing the NCUA's budget decision and related budget documents carefully to determine how additional oversight of the agency's budget can be achieved.

The NCUA's original 2013 budget was set at $251.4 million, but the agency in July reduced its projected 2013 budget by $2.6 million a move CUNA supported and commended.

The agency also released the 2014 overhead transfer rate and operating fee scale during Thursday's open board meeting.

The overhead transfer rate has been modified from the current 59.1% to 69.2%. According to the agency, the transfer rate modification is primarily due to the results of the Examination Time Survey for 2013.

Examiners reported spending 88% of their examination and supervision time on insurance related procedures for the time survey ending in 2013, compared to 67% in the previous survey cycle.

CUNA has urged the NCUA to continue to refine its methodology related to the OTR to provide additional clarity.

The agency also approved a 2014 natural person federal credit union operating fee rate reduction of 18.4%, and a 5.1% increase in the asset dividing point for the 2014 operating fee scale that the agency uses to determine the fee assessed to federal credit unions. Federal credit unions with assets less than $1 million will not be assessed an operating fee for 2014. The operating fees for federal credit unions, which will be assessed based on assets as of December 31, 2013, will be due to NCUA no later than April 15, 2014.

CUNA commended this decision for the operating fee to remain at no more than one month's expenses of the agency.

News Now LiveWire
Final field-of-membership rule tops April 30 NCUA agenda
1 day ago
.@CUNA's @Nussle speaks to @VonnieQuinn about #StoptheDataBreaches and reg. relief.
1 day ago
RT @NCUFoundation: .The Foundation's @hylandhighway with @NatlJumpStart President/CEO Laura Levine at #FLHillDay2015 today:…
1 day ago
Seriously underwater homes rise, new-home sales tumble News Now:
1 day ago
#NewsNow Cornerstone Foundation awards $71K in grants
1 day ago