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NCUA Reports to CUNA on Agency's Budget

The Credit Union National Association (CUNA) recently sent a letter to the National Credit Union Administration (NCUA) Board members urging them to hold the line on the agency’s expenses and provide greater transparency and accountability to credit unions regarding resource allocations.

CUNA is very concerned about the 6.1% increase in the 2013 budget, and NCUA Chairman Matz has responded to my letter with more information about the budget.

The letter urged the agency to set up a website on its budget, and Chairman Matz’s letter confirms that the agency has done just that.  According to the letter, “among the new documents now available on line are:

  • More detailed NCUA budget narratives explaining increases and decreases in each major budget category;
  • Breakdowns of each line item for pay and benefits to display the budgeted funds that NCUA would return if Congress does not pass a pay increase for federal employees;
  • Graphics com paring historical trends in NCUA budgets and employee levels relative to credit union deposits and assets;
  • Tables contrasting changes in operating fees for federal credit unions in several asset ranges compared to their net income.”

Chairman Matz also said “additional budget information” will be posted on the budget website “in the near future.”

These are positive steps but do not change the fact that the budget should not have been increased and moreover, should have been decreased in light of the health of the credit union system and declining numbers of credit unions.