President and CEO Lucy Ito Testifies Before the NCUA Budget Briefing

President and CEO Lucy Ito Testifies Before the NCUA Budget Briefing

‘An NCUA operating budget of $316 million and an operating budget plus capital budget of $334 million and a 1% increase in the overhead transfer rate (OTR) means that there will be more than $3 million less in the NCUSIF to cover credit union losses’ 

NASCUS President and CEO Lucy Ito provided comments today before the NCUA Board’s budget briefing, held by teleconference. In her remarks, Ito pointed out that NASCUS has historically held that a regulatory agency is in the best position to know the resources it needs to maintain a safe and sound supervisory program. Accordingly, she said NASCUS does not typically reflect on specific budgetary elements. However, she added, the association will share state supervisor budgetary practices. Further, she said, the association has observations to make with respect to NCUA’s budgetjustification for 2021-22 mostly with respect to OTR.

Specifically, she addressed five issues:

(1) Significance of the OTR especially in the current economic context

(2) Imbalance and potential inequity resulting from OTR implementation

(3) Validation & reconciliation of allocation assumptions vs. actual time allocations.

(4) Revisiting the cost allocation of NCUA’s supervision of CUSOs and third parties.

(5) Treatment of capital expenditures and miscellaneous revenue

LINK:

Full text of NASCUS President and CEO Lucy Ito statement to NCUA Board Budget Briefing