ALEXANDRIA, Va.—NCUA has published a set of frequently asked questions to address its new operating budget.
In November the NCUA board approved an operating budget for 2016 and 2017 that comes with a 4.1% increase over its predecessor, bringing NCUA’s 2016 budget to $290.2 million.
The budget also calls for a 4.1% increase in 2017 over 2016.
The budget was approved by a 2-1 vote, following a lengthy statement that was then followed by a sharp exchange with NCUA Chairman Debbie Matz and Board Member Mark McWatters, who cast the dissenting vote. (NCUA Approves Two-Year Budget, 4.1% Increase)
Among the 25 questions addressed in the 14-page document, which can be found here in CUToday.info’s The Gov, the agency details reasons for the 4.1% increase:
Pay & Benefits. Pay and benefits increased by $9.0 million, or 4.5%, for a total budget of $210.9 million.
Rent, Communications &Utilities. The Rent, Communication & Utilities expenses increased by $993,438, or 17%, for a total budget of $6.8 million for essential telecommunication costs to improve data capacity and network reliability.
Contracted Services. Contracted Services expenses increased by $2 million or 8%, for a total budget of $28.2 million.
Other key questions addressed:
- How does NCUA determine pay increases for its employees each year, what are the standards used by the agency in setting pay levels or merit increases?
- Why has the NCUA budget continued to go up each year, even though the number of credit unions it supervises is declining and the financial crisis is behind us?
- What actions has NCUA taken to reduce costs associated with travel and attendance at peripheral conferences?
- Which NCUA offices received a 3% material increase in the last two budget cycles and what are the increases for this budget cycle?
- Why did NCUA switch to a two-year budget?
The FAQ document also links to numerous other documents related to the NCUA’s budget and budgetary process.