Letter supports NCUA budget transparency measure
June 11, 2015 – In a letter to the leaders of the House financial institutions subcommittee, NASCUS has noted its support for legislation that would require the National Credit Union Administration (NCUA) to open its budget process to notice and comment from stakeholders and the public.
"NCUA is unique in that it both charters federal credit unions and administers the credit union share insurance fund," wrote NASCUS President and CEO Lucy Ito to subcommittee Chairman Randy Neugebauer (Texas) and Ranking Member Will Lacy Clay (Mo.). "As both a charterer and share insurer, NCUA funds its operations through an operating fee charged directly to federal credit unions (FCU Operating Fee) and by transferring money from the share insurance fund to the agency through the Overhead Transfer Rate (OTR). How NCUA allocates its expenses and draws its operating funds substantially impacts the dual chartering system."
Ito noted that a formal notice and comment requirement for NCUA’s budget, including the OTR, provides oversight, accountability and transparency. "This is not only sound public policy, it also helps ensure an equitable playing field for state and federally chartered credit unions," she stated..