The National Credit Union Administration (NCUA) Board held its December open meeting of 2023 and approved four items:
Budget Approved for 2024 and 2025
The NCUA Board unanimously approved the agency’s Operating, Capital, and National Credit Union Share Insurance Fund administrative budgets for 2024 and 2025.
Combined, the 2024 Operating, Capital, and Share Insurance Fund administrative budgets will be $385.7 million and 1,247 staff positions. This is $8.8 million less than in the staff draft budget. The combined budget for 2025 is $433.3 million, with 1,251 staff positions.
|Share Insurance Fund Administrative
Information on the NCUA’s budget can be found on the Budget and Supplementary Materials page on NCUA.gov.
Central Liquidity Facility Budget Approved
The NCUA Board unanimously approved the 2024 Central Liquidity Facility Budget of $2,199,065.
The NCUA Board, in its capacity as the CLF Board, must approve the CLF’s budget. In prior years, the CLF’s expenditures were accounted for in the NCUA operating budget. This request for approval of the CLF budget reflects the recent NCUA Board decision to strengthen the independence of the CLF and separate its budget from the NCUA operating budget.
The 2024 CLF budget justification is available on the NCUA website. The document includes information on the spending categories, sources and uses of funds, and planned activities.
Board Approves Final Notice on Operating Fee Schedule Methodology
The NCUA Board unanimously approved the issuance of a final notice making the following revisions to the Operating Fee Schedule methodology:
At its June 2023 meeting, the NCUA Board unanimously approved the issuance of a notice and request for comment about about adjustments to the methodology the NCUA uses to determine how it apportions operating fees charged to federal credit unions. The board uses these operating fees to fund part of the NCUA’s annual budget. The proposal provided for a 60-day comment period that ended on September 5, 2023.
Board Approves Request for Comment on Overhead Transfer Rate Methodology
The NCUA Board unanimously approved the issuance of a notice and request for comment on the existing Overhead Transfer Rate (OTR) methodology. The board is inviting comment on the NCUA’s methodology to determine the OTR. The request for comment clarifies the four principles for calculating the OTR and the various cost allocations associated with the calculation.
In 2017, the NCUA published in the Federal Register a request for comment regarding a revised OTR methodology based on the board’s internal assessment and comments received from a 2016 request for comment. The primary goal of the proposed changes to the OTR methodology at that time was to simplify the methodology and reduce the resources needed to administer the OTR. The board committed to subjecting the four principles to public comment every three years and in the event the board proposes a change to one or more of the principles.
Comments are due 60 days after the notice’s publication in the Federal Register.
Access the ‘Compliance Hotline’
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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:
For more information, email Lisa Quaranta.
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