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NCUA Board: SIF, Charitable Accounts, and 2024-25 Budget

This week, the National Credit Union Administration (NCUA) board held its November board meeting.  Here’s a recap:

Board Briefing: Share Insurance Fund (SIF) Quarterly Report
The board received a briefing on the performance of the National Credit Union Share Insurance Fund (NCUSIF) for the quarter ending on September 30, 2023. The Share Insurance Fund reported a net income of $59.0 million, $20.9 billion in assets, and $113.4 million in total income for the third quarter of 2023.

Additionally, for the third quarter of 2023:

  • The number of composite CAMELS code 3 credit unions increased from 771 to 777 at the end of the third quarter. Assets for these credit unions increased from the second quarter to $131.7 billion from $91 billion.
  • The number of composite CAMELS codes 4 and 5 credit unions decreased from 134 to 131 at the end of the third quarter. Assets for these credit unions decreased from $6.3 billion to $5.4 billion.

Final Rule: Part 721, Charitable Donation Accounts
The board adopted a final rule that would amend §721.3 of the NCUA’s regulations, the charitable donation accounts section of the NCUA’s incidental powers rule.

Specifically, the final rule adds a post or organization of past or present members of the Armed Forces of the United States, or an auxiliary unit or society of, or a trust or foundation for, any such post or organization recognized as exempt from taxation under section 501(c)(19) of the Internal Revenue Code to the definition of a “qualified charity” that a federal credit union may contribute to using a charitable donation account.

The final rule is effective 30 days after publication in the Federal Register.

Draft 2024-2025 Budget
Shortly after the board meeting, the board heard from the public concerning the NCUA’s proposed 2024-2025 budget.

The NCUA published its 2024-2025 draft budget on Oct. 26 and the combined proposed budget totaled $394.5 million, which is a 9.5 percent hike from the 2023 budget. According to the NCUA, the proposed budget breaks down as follows:

  • $382.1 million operating budget; 11 percent higher than 2023.
  • $7.3 million capital budget; 35.6 percent lower than 2023.
  • $5.1 million Share Insurance Fund administrative budget; 3.6 percent higher than 2023.

Three main factors appeared to contribute to the agency’s proposed increases in 2024:

  • Net increase of 28 positions, or 2.3 percent, compared to the agency’s 2023 staffing level.
  • Increase of $18.2 million for current employee compensation in 2024 compared to 2023.
  • Increase of $10.7 million in contracted services for 2024.

Access the ‘Compliance Hotline’
Your League-member benefits include the Compliance Hotline — providing exclusive access to dedicated compliance experts:

Using the above phone number and email address, you can gain access to a knowledgeable team that’s ready to address all your credit union’s compliance inquiries — promptly and efficiently. With the Compliance Hotline, you can proactively respond to impromptu questions and issues by getting clarity and insight on technical topics that normally slow you down. We want to help you unlock the full potential of your League membership by leveraging the resources and support you need to navigate the complex world of compliance effortlessly. We’re ALWAYS just a phone call or email away!

Additionally, other League-member compliance resources include:

  • ViClarity
  • CU PolicyPro
  • ComplySight
  • InfoSight
  • CU Store
  • Record Retention Guide
  • GRC Technology Solutions

For more information, email Lisa Quaranta.

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