ALEXANDRIA, Va. (10/31/08)--The National Credit Union Administration's (NCUA) 2009 budget is expected to increase 15% to $182.9 million and add 85 additional staffers to accommodate program modifications "necessary to address the current turbulent economic environment," said NCUA Executive Director Len Skiles yesterday.
During 2009, the overhead transfer rate is projected to be 55% and the operating fee is expected to increase 10% to oblige increased expenditures, according to Skiles. He spoke during the NCUA's Eighth Annual Budget Briefing and Public Forum held Thursday in Alexandria, Va.
The most significant NCUA program changes under consideration would add additional staff, implement a 12-month examination cycle, develop a national examiner team to conduct high-risk exams, and centralize credit union chartering in 2009.
NCUA said it believes it is "imperative to expand its examiner staff and develop a cadre of well-trained experts as credit unions are faced with unprecedented liquidity pressures, increased interest rate risk, due diligence efforts, concentration risk, and additional governmental requirements."
NCUA's proposed budget includes $12.8 million to hire and train:
100 additional examiners;
Five problem case officers;
Five risk management officers; and
Additional support staff.
Pay and benefits for the entire staff are projected to increase $14.5 million or 12.3%. Travel expense is expected to increase $6.9 million or 44.7% to accommodate a 12-month examination cycle and expected inflation pressures, said Skiles.
The NCUA Board is scheduled to consider the budget at its Nov. 20 meeting. Use the resource link below to access the NCUA budget briefing PowerPoint presentation.
courtesy of cuna.org