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NCUA ups 2011 budget by 25 million
ALEXANDRIA, Va. (11/19/10)--The National Credit Union Administration (NCUA) on Thursday approved a $25 million increase for its 2011 budget, and said that $750,000 will be dedicated to bolster examination and supervisory programs. The total budget for 2011 will be just over $225 million, 12% larger than the budget approved for 2010. The NCUA said that the increase is partly to cover adding 78 staff positions, and spending $7 million to cover a net growth of 5.7% in pay and benefits. However, nearly half of the budget increase will go to program additions and changes.
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The NCUA board also approved an overhead transfer rate increase from 57.2% to 58.9%. Additionally, the agency voted to increase the asset level dividing points for the natural person federal credit union operating fee scale by 3.4% and to decrease the natural person federal credit union operating fee rates by 2.86%. Credit Union National Association (CUNA) President/CEO Bill Cheney said that CUNA is concerned that the “agency is asking for more resources from credit unions at a time when so many credit unions are feeling the pain of an obstinate recession,” adding that CUNA will review the proposed increase “carefully” and will “seek more answers from the NCUA.” A total of $750,000 of the budget will be provided to the Office of Examination and Insurance “to continue an operational review of the agency-wide examination and supervision program,” the NCUA said. The NCUA’s Office of Inspector General will receive nearly $1 million to continue its work on material loss reviews of failed credit unions and conduct independent financial audits of the NCUA’s books. Nearly $3.5 million of the funds will go to the NCUA’s annual exemption program, which will add 53 examiners and six supervisory examiners to various NCUA regional offices. Doing so will allow the NCUA to increase its scheduled in-house visits to troubled credit unions to once every three months. NCUA Chairman Debbie Matz noted that the NCUA’s increased emphasis on credit union examinations leads to “safer” credit unions, and said that she hoped that the increased exams would ultimately lead to lower credit union assessments in the future. For the NCUA releases, use the resource links.
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