National Association of Federally-Insured Credit Unions (NAFCU) Executive Vice President of Government Affairs and General Counsel Carrie Hunt reiterated NAFCU's appreciation for the National Credit Union Administration (NCUA) Board's focus on budget transparency and emphasized the need for finding cost savings and efficiencies in a letter sent ahead of the board's 2017 mid-year budget review.
"Ultimately, all of NCUA's expenditures have a direct impact on the daily operations of regulated and insured credit unions," Hunt wrote. "In the current regulatory landscape, these dollars become even more significant as credit unions are forced to expend substantial sums of financial and human capital bringing their policies and procedures into compliance with the sea of new regulatory requirements. For that reason, NCUA’s budget process continues to be a topic of significant interest to Congress, NAFCU’s membership, and the entire credit union industry."
Hunt continued, "As NCUA conducts its annual mid-year budget review during the July 20, 2017, board meeting, NAFCU once again strongly urges the board to look at each line item of the budget with the express goal of maximum efficiency."
Below please find the full text of the letter.
July 18, 2017
The Honorable Mark J. McWatters, Chairman
The Honorable Rick Metsger, Board Member
National Credit Union Administration
1775 Duke Street
Alexandria, VA 22314
RE: NCUA 2017 Mid-Year Budget Review
Dear Chairman McWatters and Board Member Metsger:
On behalf of the National Association of Federally-Insured Credit Unions (NAFCU), the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions, I am writing to you regarding the National Credit Union Administration’s (NCUA) 2017 mid-year budget review.
General Comments
Most importantly, I would like to thank you both for your commitment to an efficient and transparent budget. As NAFCU consistently reminds the Board, the agency's budget is funded exclusively by the credit unions it regulates and insures, and every dollar spent by the agency begins as a dollar from a credit union somewhere in the United States. Ultimately, all of NCUA's expenditures have a direct impact on the daily operations of regulated and insured credit unions. In the current regulatory landscape, these dollars become even more significant as credit unions are forced to expend substantial sums of financial and human capital bringing their policies and procedures into compliance with the sea of new regulatory requirements. For that reason, NCUA’s budget process continues to be a topic of significant interest to Congress, NAFCU’s membership, and the entire credit union industry.
Increased Transparency
In recent years, NAFCU has applauded the agency’s progress towards increased budget transparency, including the reintroduction of the practice of conducting public budget hearings. Maintaining a transparent budget process is critical and we welcomed the Board's decision last year to hold a public budget briefing, which included the opportunity for credit union stakeholders to offer comments. Our hope is that the agency maintains its commitment to budget transparency and continues to host public budget hearings on a periodic basis. NAFCU and our members strongly support the public budget briefing as an indispensable opportunity for the industry to provide thoughtful input on the agency’s expenditures.
Increased Efficiency
As NCUA conducts its annual mid-year budget review during the July 20, 2017, Board Meeting, NAFCU once again strongly urges the Board to look at each line item of the budget with the express goal of maximum efficiency. NCUA, as the steward of credit unions’ dollars, must ensure it charges credit unions the minimal amount necessary to effectively conduct its operations. As NAFCU has stressed in prior budget discussions, the entire credit union industry benefits by the agency conducting operations in a manner that is both efficient and expedient.
In particular, given the backdrop of President Donald J. Trump's executive orders encouraging improved efficiency, effectiveness, and accountability in the federal government, we encourage the agency to proactively review its operations, structure, and staffing with an eye towards eliminating duplication, disorganization, and wastefulness. NCUA should look carefully at what works within the agency and find cost savings anywhere feasible in order to mitigate costs. We hope the agency uses the mid-year budget review as an opportunity to promote the responsible administration of credit union dollars, increase spending efficiencies, and reduce line item budgets where possible.
Conclusion
We continue to look forward to working with NCUA to find ways that the agency could streamline its operating costs and promote greater efficiency. Should you have any questions or would like to discuss these issues further, please feel free to contact me, or Alexander Monterrubio, Director of Regulatory Affairs, at (703) 842-2244 or amonterrubio@nafcu.org.
Sincerely,
Carrie Hunt
EVP of Government Affairs and General Counsel
cc: Mr. Mark A. Treichel, Executive Director
Mr. Rendell L. Jones, Chief Financial Officer