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received a Report of the National Credit Union Share Insurance Fund (Quarterly
Report), adopted NCUA’s 2017-2021 Strategic Plan, and received a Board Briefing
on NCUA’s 2016 Mid-Session Budget.
Following the open board meeting the Board considered a Supervisory
Matter and a Merger Request, both of which were closed to the public.
Credit Union Share Insurance Fund Quarterly Report
The Board received a Quarterly
Report on the NCUSIF indicating Total Income of $56.1 Million and Net Loss of
$21.8 Million for the quarter ending June 30, 2016. The Balance Sheet showed Total Liabilities
and Net Position of $13,014 Million. The
number of problem Credit Unions CAMEL Code 4/5 decreased to 209 and the number
of CAMEL Code 3 reduced to 1,201. The
number of credit union failures in 2016 sits at 11 with 10 of those being
involuntary and 1 an assisted merger.
2017 – 2021 Strategic Plan.
adopted changes to the 2017 – 2021 Strategic Plan that includes the agency’s
three strategic goals: 1. Ensure a Safe and Sound Credit Union System;
2. Promote Consumer Protection and Financial Literacy; and 3. Cultivate an Inclusive,
Collaborative Workplace at NCUA that Maximizes Productivity and Enhances
NCUA removed two existing performance goals that measured annual exams within
the 2014-2017 Strategic Plan and the 2016-2017 Annual Performance Plan as
removal does not immediately change the examination cycle for credit unions, it
does set the stage for later improvements as being contemplated by the Exam
Flexibility Initiative. The NCUA will
further need to remove the requirements from the National Supervisory Policy
Also of note
is the inclusion of a strategic item the reinforces the NCUA’s commitment to
small credit unions as follows:
Support the success of small credit unions through training,
consulting, grants and loans, partnership opportunities and resources.
acknowledges that the details of the strategic plan are being updated to
reflect a different financial world and new regulations either adopted or forthcoming
on Capital, Stress Testing, and Liquidity Rules. It further reflects their focus on upgrading
technology and processes designed to reduce the burden on credit unions.
Briefing, 2016 Mid-Session Budget
received a Briefing on the 2016 Mid-Session Budget Review where it provided a
summary of Revised Estimates for the 2016 Budget. NCUA highlighted that there is a $1.9 million
reduction in pay and benefits as a result of having 1,214 FTEs below the 1,247
budgeted (33 unused FTEs). There was a
$234,000 in Administrative costs and various other reductions. NCUA provided a breakdown of various expenses
including a breakdown of Contracted Services.
Albeit recognizing these savings, NCUA is not recommending a reduction
for 2017 as it states it must maintain adequate cash balances to meet current
and future obligations. It indicates
several open obligations from prior years are impacting the amount of cash
that the Overhead Transfer Rate did not need a ‘true-up” because it does not
pay budgeted expenses at the beginning of the year, and only charges actual
expenses to the SIF as they occur monthly.
What was not
discussed is the overall increase in NCUA’s budget from the prior year as a combination
of the funding received from the OTR and the Operating Fee.
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