NCUA 

Annual 

Performance Plan 2004 
Dennis Dollar 

Chairman

JoAnn Johnson 

Vice Chair 

Deborah Matz 

Board Member 

 

Message from the NCUA Board 

The NCUA Board is pleased to present NCUA Annual Performance Plan 2004. To date, 2003 has 

been another productive year at NCUA. The goals and objectives established by the NCUA Board for 

the year are documented in NCUA Annual Performance Plan 2003, which guided the agency’s 

achievements. The agency’s priorities continue to be those that promote the facilitation of safe and 

sound operations of federally insured credit unions and enhanced access to reasonable and affordable 

financial services for Americans from all walks of life. 

NCUA began the year deeply engaged in an effort to increase agency efficiency with the 

implementation of the Accountability in Management (AIM) study initiative. As such, agency 

leadership announced the final actions necessary to complete regional restructuring, which includes the 

relocation of the Region VI (Concord, CA) regional office to a lower-cost area and the closing of the 

Region IV (Chicago, IL) regional office. These actions alone will save the agency approximately $27 

million over the next 10 years. 
Other ongoing AIM study initiatives include: the formation of a working group to enhance our risk 

assessment capability for large credit unions; the formation of a Surveillance Systems Working Group 

to explore ways to enhance credit union data collection, storage and retrieval processes; and the 

initiation of a comprehensive agency pay study. 

As a result of ideas shared at NCUA's 2003 Strategic Leadership Summit, NCUA formed a Small 

Credit Union Working Group to explore changes the agency may make to help small credit unions 

reach their full potential within the bounds of safety and soundness. 

NCUA successfully met our statutory responsibilities of safety and soundness while providing and 

fostering a regulatory environment which permits credit unions to be innovative, responsive to their 

members, and competitive in the rapidly evolving financial services industry. NCUA actions included, 

among others, conducting several Partnering and Leadership Successes (PALS) workshops; 

encouraging the prudent expansion of small business related services; enhancing our Member Business 

Loan Regulation; and working with the Small Business Administration to expand the eligibility of the 

7(a) loan program to more credit unions. In an effort to address contemporary risk areas, the agency 

continued the evolution of our risk-focused examination and supervision processes, provided guidance 

to credit unions on monitoring their risk exposure, and promoted credit union due diligence in 

managing real estate mortgage portfolio concentration risks. 

NCUA issued a revision to the federal credit union chartering and field of membership rule, which 

incorporated necessary updates and technical corrections stemming from experience and review in 

administering and implementing field of membership rules since the passage of the Credit Union 

Membership Access Act of 1998. The revisions included, among others, the standardization of the 

definition of a local community, the continued development of the Access Across America initiative 

which is designed to facilitate access to affordable financial services to those who need it most, and the 

introduction of a new trade, industry or profession option for single common bond credit unions. 

These changes and updates clearly demonstrate the agency’s ongoing commitment, within the 

parameters of the statute and safety and soundness, to ensure the federal charter remains a viable, safe 

and sound option within the dual credit union chartering system. 

NCUA will end the year 2003 with the sharp focus with which it began by completing the realignment 

of the regional offices and continuing the ongoing initiatives designed to facilitate the safe and sound 

operations of federally insured credit unions and the extension of access to affordable financial 

services for Americans from all walks of life. The agency’s efforts to create efficiency, enhance risk 

assessment capabilities, and provide a flexible regulatory environment to meet the needs of a dynamic 

and changing financial marketplace have well positioned NCUA to meet the ongoing challenge of 

providing a safe, sound, strong, and more viable credit union system in the year 2004 and beyond. 
Table of Contents 

NCUA Mission, Vision, and Values............................................................................. 5 

Industry Overview ........................................................................................................ 6 

Trend Analysis and Emerging Issues.......................................................................... 7 

Environmental Scan ..................................................................................................... 8 

Strategic and Outcome Goals .................................................................................... 12 

Resource Utilization Projection................................................................................. 14 

Annual Performance Goals, Means, and Strategies................................................ 15 

Strategic Program Evaluation ................................................................................... 29 

APPENDIX A: Cross-Cutting Strategies.................................................................. 30 

APPENDIX B: Data Verification and Validation.................................................... 36 

APPENDIX C: Human Capital Management Plan................................................. 37 

APPENDIX D: Information Technology Resource Management Plan................. 45 

APPENDIX E: Contingency Planning...................................................................... 49 

Glossary of Terms....................................................................................................... 52 
NCUA Annual Performance Plan 2004 

 5

NCUA Mission, Vision, and Values 

NCUA 

NCUA is the independent federal agency 

that charters and supervises federal 

credit unions, and, through management 

of the National Credit Union Share 

Insurance Fund (NCUSIF), insures the 

majority of member funds held in the 

nation’s credit unions. NCUA also 

works in cooperation with the state 

supervisory authorities to maintain the 

safety and soundness of state chartered 

credit unions insured by the NCUSIF. 

NCUA’s regulatory responsibilities are 

entirely funded by federally insured 

credit unions; it receives no federal tax 

dollars in the execution of its chartering, 

supervision and enforcement mission. 

Vision

NCUA must ensure the cooperative 

credit union movement can safely 

provide financial services to all 

segments of American society, enabling 

credit unions and their members to thrive 

in the 21st century. 

Mission

NCUA’s charge is to foster the safety 

and soundness of federally insured credit 

unions and to better enable the credit 

union community to extend the 

availability of financial services for 

provident and productive purposes to all 

who seek such service, while 

recognizing and encouraging credit 

unions’ historical emphasis on extension 

of financial services to those of modest 

means. 

NCUA’s mission is accomplished by 

managing the NCUSIF in an efficient 

and prudent manner through an 

effective supervision program and a 

regulatory environment that encourages 

innovation, flexibility and continued 

focus on attracting new members and 

improving financial service to existing 

members. 

Values 

Integrity – This is the underlying value 

in everything NCUA does as an agency 

and as individual staff members. 

Integrity is the result of communicating 

openly and honestly, delivering what we 

promise and doing the right thing, not 

merely doing things right. Integrity 

directly addresses the concepts of honor 

and duty, which the American public has 

the right to expect from us as public 

servants. 

Forward-Looking – NCUA 

continuously scans the horizon, plans 

how to address emerging issues and acts 

upon these issues sufficiently in advance 

to provide timely, cost effective 

solutions where warranted. 

Responsiveness – NCUA strives to 

provide effective policies and procedures 

that are designed to address safety and 

soundness, as well as concerns of credit 

unions in an ever-changing financial 

marketplace. 

Teamwork – Teamwork inspires, 

motivates and guides NCUA toward its 

goals. It was from a group identity – 

commitment, team spirit and a 

willingness to work together for the 

betterment of all members -- that credit 

unions were created, and it is that 

identity which sustains NCUA today. 
NCUA Annual Performance Plan 2004 

 6

Industry Overview 

The number of federally insured credit 

unions declined from 9,730 as of 

December 31, 2002, to 9,458 as of 

September 30, 2003. Of this number, 

5,829 credit unions are federally 

chartered and 3,629 are state chartered. 

Despite the decrease in total numbers, 

the industry today is very strong, as 

evidenced by financial performance 

trends. As indicated in the following 

charts, membership in credit unions has 

steadily increased with a corresponding 

increase in assets and net worth. Total 

net worth increased $4.5 billion during 

the first nine months of 2003, while 

assets grew by $49.0 billion. The 

aggregate net worth ratio declined to 

10.58% as of September 30, 2003, as 

asset growth outpaced net worth growth. 

Credit unions are making more loans 

while share deposits continue to 

increase. Loans increased by $24.3 

billion in the first nine months of 2003, 

while shares increased $41.9 billion. As 

a result, the loan to share ratio decreased 

to 69.76% as of September 30, 2003. 

The delinquency rate and the number of 

problem credit unions remain low. 

Delinquent loans, as a percentage of 

total loans, decreased from the yearend 

2002 level of 0.79% to 0.75%, while net 

charge offs increased from 0.51% to an 

annualized 0.55% of average loans. 

Members in FICU's (in millions)

65

70

75

80

85

1998 1999 2000 2001 2002 Sep03

FICU's Total Assets (in $billions)

-

200

400

600

800

1998

1999

20002001

2002

Sep-03

FICUs Net Worth Trends 

(% of Assets)

10 .0

10 .5

11.0

11.5

1998 1999 2000 2001 2002 S e p03

Loan and Share Trends 

($ Billions) 

0

100

200

300

400

500

600

1998 1999 20 00 2 001 2002 S e p0 3

Lo ans

Shares

Delinquency and Loan Losses

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1998 1999 2000 2001 2002 Sep03

De linque nc y

Charge o ffs

Problem Credit Unions 

Camel 4 & 5

0

100

200

300

400

1998 1999 2000 2001 2002 Sep03

At Year End Except 2 0 0 3 
NCUA Annual Performance Plan 2004 

 7

Trend Analysis and Emerging Issues 

Overall, the credit union industry 

remains healthy and robust. High 

growth in assets, shares, and investments 

continued in the first half of 2003, while 

loan growth was moderate. To maintain 

safe and sound operations and a healthy 

industry, NCUA and credit unions must 

consider emerging risks. 

In the first half of 2003, the economy 

started to show signs of improvement 

and, consequently, long-term interest 

rates increased moderately. Continued 

increases in long-term interest rates 

combined with increases in market and 

rate sensitive share accounts pose 

significant balance sheet risk 

management challenges for financial 

institutions. 

Key trends include: 

• Share growth continues to exceed 

loan growth and remains 

concentrated in short-term, 

potentially volatile share accounts. 

If the record growth of share deposits 

in recent years was due in part to the 

bear market in equity securities, 

members may by inclined to 

withdraw these shares if alternative 

investment options once again 

appear attractive. This uncertainty 

raises concerns of increased liquidity 

and earnings risk. 

• Loan growth continues to be 

concentrated in fixed rate real estate 

loans. These are being granted at the 

lowest rates in 40 years, resulting in 

interest rate, liquidity, and earnings 

risks should market rates 

significantly rise. 

• Consumer borrowing remains weak. 

Used auto loans were the only 

consumer loans to show aggregate 

growth. Credit unions trying to 

compete for consumer loans may 

turn to indirect or third party lending, 

which could introduce potential risks 

that may result from third party 

transactions and demonstrates the 

need for sound due diligence. 

• Potential transaction risk continues 

to increase as more credit unions 

move to transactional websites and 

increasingly complex e-Commerce 

services. While the number of credit 

unions implementing new websites 

has waned, the number and type of 

electronic services provided has 

grown steadily presenting 

considerable potential for additional 

growth. 

Summary: 

High growth in fixed rate real estate 

loans and volatile, non-maturity shares 

combined with increases in lower quality 

consumer loans could present significant 

interest rate, liquidity, and credit risks to 

some credit unions. As such, if the 

economy continues to improve, equity 

market investing increases, and interest 

rates continue to rise, interest rate risk 

and liquidity risk could impact credit 

union earnings and capital. If the 

economy does not improve, credit risk 

could impact credit union earnings and 

capital. 
NCUA Annual Performance Plan 2004 

 8

 Environmental Scan 

The environmental scan provides information 

on the economic, social/demographic, 

technological, and political/legislative 

environment. This information, combined with 

performance results from NCUA Annual 

Performance Report 2002, provides the 

foundation for formulating NCUA Initial 

Annual Performance Plan 2004. 

Economic Outlook1 

 

The United States economy moved ahead 

slowly in early 2003, as excess capacity and 

uncertainty led businesses to hold back on 

capital expenditures and hiring. Business 

investment is the key to a robust recovery, and 

economists expect business investment to 

continue its slightly positive trend in late 2003. 

Consumer confidence is low, but household 

savings and wealth should both turn up in 2003. 

Real gross domestic product (GDP) -- the 

output of goods and services produced by labor 

and property located in the United States -- 

increased at an annual rate of 3.3 percent in the 

second quarter of 2003, according to revised 

estimates released by the Bureau of Economic 

Analysis. In the first quarter, GDP increased 

1.4 percent. The forecasted growth rate in 

GDP for the 2nd half 2003 is 3.8 percent. The 

outlook for 2004 is moderate growth, in the two 

to four percent range. 

The Federal Reserve has said that rates could 

stay low for a “considerable period.” 

However, once the United States economy 

appears to be in a sustainable healthy recovery, 

the Federal Reserve is likely to return to a 

neutral or even tightening mode on inflation. 

 

1

 Economic Outlook benefited from presentations at 

NCUA’s Strategic Leadership Summit, January 2003, by 

Larry Meyer, Director, MPI, and former Federal Reserve 

Governor, and Bill Hampell, CUNA’s Chief Economist. 

The implied forward rate expresses the market 

expectation of where future rates will be. Over 

the recent period the forward curve has shown 

that the market anticipates shorter term 

Treasury rates to be approximately one per cent 

higher than they are now in twelve months 

time. 

It is anticipated that credit unions will continue 

to grow in 2004, but the composition of their 

balance sheets will likely not change much, and 

no significant changes in credit quality are 

expected. Credit union balance sheets are 

projected to grow about ten percent per year, 

with a slight increase in liquidity. Aggregate 

interest rate risk exposure is expected to remain 

unchanged. Return on assets and net worth 

ratios should remain practically unchanged. 

Prompt Corrective Action is not expected to be 

a material constraint. 

Social/Demographic Outlook

The U.S. population more than tripled from 76 

million people in 1900 to 292 million people in 

2003. The growth of 32.7 million people in the 

1990s represented the largest numerical 

increase of any decade in U.S. history. 

At the beginning of the century, half of the U.S. 

population was less than 22.9 years old. At the 

century’s end, half of the population was more 

than 35.3 years old, the country’s highest 

median age ever. 

The United States’ gender composition shifted 

from a majority male population to a majority 

female population around mid-century. 

As the United States entered the 21st century, 

most of the population lived in the South or the 

West, in metropolitan areas, was female, at 

least 35 years old, White (but much less so), 
NCUA Annual Performance Plan 2004 

 9

owned a home, and lived alone or in a 

household with one or two other people. 

The United States population was much more 

racially diverse in 2000 than in 1900. At the 

beginning of the century, 1 out of 8 Americans 

was of a race other than White; at the end of the 

century, the ratio was 1 out of 4. Large-scale 

immigration, primarily from Latin America and 

Asia, underlies both increased racial and ethnic 

diversity. In just the last two decades of the 

century, the Asian and Pacific Islander 

population tripled, and the Hispanic population 

more than doubled. Between 1998 and 2001 

about 45 percent of the population increase was 

due to net immigration. 

The rising economic tide of the late 1990s 

lifted the family income of almost all American 

families, but also sharply increased the net 

worth gap between the rich and the rest of 

society. The percentage change in median net 

worth from 1998 to 2001 for families in the 

lowest 20 percent of income (14.4 percent) was 

less than that of those in the highest 10 percent 

(19.3 percent). The median net worth for most 

families rose 10.4 percent. Although equity 

markets declined in 2001, studies suggest that 

with equity prices as low as they were in 

October 2002, median family net worth still 

exceeded 1998 levels. 

In 2001, 12.7 percent of surveyed families 

reported not having a checking account. The 

most commonly reported reason given by 28.6 

percent of families without accounts was that 

the family did not write enough checks to make 

account ownership worthwhile. Another 14.0 

percent said that they did not have enough 

money to make account ownership worthwhile. 

Of those surveyed, 22.6 percent said that they 

did not like dealing with banks; this response 

showed the largest increase since 1998 – 4.1 

percentage points. 

Families that did not have transaction accounts 

in 2001 were disproportionately likely to have 

low incomes, to be younger than 35, to be 

nonwhite or Hispanic, to be headed by a person 

who was neither working nor retired, to be a 

renter, and to have relatively low levels of 

wealth. 

In summary, the United States population is 

increasing, aging, more racially diverse, and 

more likely to be female. Family income has 

risen in every income category, but the net 

worth gap between the rich and the rest of 

society has widened. In 2004, credit union 

products and services are expected to be 

tailored to meet the needs of this changing 

population. 

Technological Outlook

As of December 31, 2002, approximately fifty 

percent of all federally insured credit unions 

reported having a website. The rate of website 

growth is currently 4.4 percent, but is declining 

annually as saturation is reached. Although the 

growth rate in new websites is declining, the 

proportion of advanced websites is increasing. 

Interactive websites make up an increasingly 

larger percent of the total websites, currently 

66.8 percent. Credit unions continue to offer 

standard e-commerce services and are 

increasingly implementing more sophisticated 

services (e.g., aggregation, electronic bill 

paying). 

 

In 2004, credit unions will increasingly use the 

Internet and World Wide Web to deliver 

financial services. We expect the growth rate 

of credit union websites will continue to 

decline as saturation is reached. Websites will 

continue to shift from Informational/Interactive 

to Transactional thus increasing transactional 

and reputation risks. 

Vendors are developing e-Commerce products 

and solutions in-house and/or are establishing 

relationships with 3rd party vendors. The 

number of vendors offering vendor designed or 
NCUA Annual Performance Plan 2004 

 10

3rd party e-Commerce products will continue to 

increase. Vendors with turnkey products will 

continue to place system (hardware/software) 

security responsibility directly on their clients. 

The more complex the systems and services 

become, the less likely credit unions (primarily 

small to mid-size) will be able to effectively 

secure and manage those systems. To secure 

systems and protect member data, credit unions 

will need to spend more for technology, 

personnel, and staff training as well as gain 

management focus and commitment. 

Political/Legislative Outlook

Regulatory Relief 

In 2002, House Financial Services Committee 

members Shelly Moore Capito (R-WV) and 

Mike Ross (D-AR) introduced legislation (H.R. 

3951) to provide regulatory relief for financial 

institutions, including credit unions. In 

response to an inquiry from Chairman Mike 

Oxley of the House Financial Services 

Committee, NCUA submitted several 

recommendations designed to reduce 

regulatory burden on federal credit unions. 

NCUA recommended that the legislation 

include provisions that would: 

1. Authorize credit unions to provide check 

cashing, wire transfers, and other money 

transfer services for non-members within 

the field of membership; 

2. Increase the twelve-year maturity on loans; 

3. Authorize an increase to the one percent 

investment limit in CUSOs; 

4. Clarify the “reasonable proximity” 

requirement; 

5. Authorize additional investment options for 

Federal credit unions; 

6. Authorize mergers of credit unions with 

multiple groups over 3,000; and 

7. Provide exemption to credit unions from 

SEC registration requirements similar to 

those provided to other financial 

institutions. 

Reps. Capito and Ross reintroduced similar 

legislation (H.R. 1375) on March 20, 2003. 

The legislation includes all the provisions 

recommended by NCUA except for the 

provision that would clarify the “reasonable 

proximity” requirement. On April 19, 2003, 

the Subcommittee approved the legislation, as 

amended, by voice vote. The amendment 

approved by the Subcommittee included a new 

section that would require all financial 

institution regulators, including NCUA, to 

report to Congress the number of minorities 

and women employed by the agencies. On 

May 20, 2003, the House Financial Services 

Committee approved H.R. 1375. Senate 

Banking Chairman Richard Shelby (R-Ala.) 

has likewise requested regulatory agencies, 

including NCUA, to submit input to a 

regulatory relief package he is expected to craft 

for committee consideration. Similar 

recommendations were submitted to Senator 

Shelby. 

FY 2004 Appropriations 

NCUA will continue to seek assistance from 

Congress to fund the Community Development 

Revolving Loan Fund (CDRLF). For fiscal 

year 2004, NCUA requested an additional $1 

million appropriation for the CDRLF over last 

year’s funding level bringing the total amount 

requested to $2 million. The additional 

appropriation could provide the CDRLF 

program even greater ability to further the 

growth and long-term viability of credit unions 

in low-income and underserved areas. 

Deposit Insurance Reform 

Legislation to consider reforms and make 

structural changes to the Federal Deposit 

Insurance System has been introduced in both 

the House and the Senate. While the legislation 
NCUA Annual Performance Plan 2004 

 11

does not affect the structure of the NCUSIF, if 

adopted as introduced, it would increase the 

coverage for depositors in credit unions. 

Bankruptcy Reform 

The House and Senate Judiciary Committees 

have both indicated their commitment to 

reintroduce legislation to reform the bankruptcy 

laws again this year. The House Judiciary 

Committee has scheduled hearings on the 

legislation, while the Senate Judiciary 

Committee has decided to forego the 

Committee process and bring legislation 

directly to the Senate floor. 

NCUA has made several recommendations to 

legislators to revise the legislation to include 

credit unions in the language that amends the 

bankruptcy insolvency laws with respect to the 

termination and netting of qualified financial 

contracts. 

Fair Credit Reporting Act 

The Fair Credit Reporting Act (FCRA) was 

enacted in 1970 to protect consumers and the 

ways their credit information is gathered and 

disseminated. The FCRA, which expires on 

December 31, 2003, prevents states from 

adopting separate rules on credit reporting. 

The House and Senate held hearings in 2003, to 

consider whether and how to extend the FCRA. 

The FCRA is expected to be the main vehicle 

to carry the privacy debate. 

Miscellaneous Legislation 

President Bush’s FY 2004 budget proposed the 

recharacterizing of several retirement vehicles, 

including Roth IRAs, Archer Medical Savings 

Accounts, and the Coverdell Education Savings 

Accounts. Also, the FY 2004 budget proposes 

to expand tax incentives for savings. 

 

The Assets for Independence Act of 1998 

authorized the U.S. Department of Health and 

Human Services (DHHS) to establish and 

administer a 5-year, $125 million 

demonstration of Individual Development 

Accounts (IDA). Currently, credit unions 

designated as low-income or Community 

Development Financial Institutions are eligible 

for DHHS assistance. Under a proposed 

Savings for Working Families Act of 2003 

legislation, all credit unions would be eligible 

for a transferable tax credit for every dollar 

contributed as matching funds for IDAs. 

Election Year 

It is important to note that 2004 is an election 

year where the full House is up for election, as 

well as one-third of the Senate. Most notably, 

it is a presidential election year. Although it is 

not easy to predict what will occur, legislative 

priorities generally shift during election years. 

 
NCUA Annual Performance Plan 2004 

 12

Strategic and Outcome Goals 

Strategic Goal 1: 

A system of financially sound, well-managed, federally insured credit unions able to withstand 

economic volatility. 

Outcome Goals: 

1.1. NCUA promotes effective risk management practices. 

1.2. NCUA timely resolves safety and soundness issues. 

1.3. NCUA’s supervision efforts influence credit unions to effectively plan to meet current and future 

financial and managerial challenges. 

1.4. NCUA diligently manages the National Credit Union Share Insurance Fund (NCUSIF). 

Strategic Goal 2: 

The safe integration of credit union financial services and emerging technology. 

Outcome Goals: 

2.1. NCUA’s supervision process is designed to identify, measure, monitor, report, and control the 

risks that existing and emerging financial service technologies pose to credit unions and the 

NCUSIF. 

2.2. NCUA provides information and resources to help ensure credit unions safely integrate, operate, 

and effectively manage existing and emerging financial service technologies. 

Strategic Goal 3: 

A regulatory environment that facilitates credit union innovation to meet member financial 

service expectations while maintaining safety and soundness. 

Outcome Goals: 

3.1. NCUA regulations are current, clearly written, flexible, necessary and relevant for an effective 

regulatory environment.

3.2. NCUA’s supervision process supports credit union financial services that are innovative and 

competitive in a changing economic environment. 

3.3. NCUA contributes to a regulatory environment that promotes credit union innovation. 
NCUA Annual Performance Plan 2004 

 13

Strategic Goal 4: 

Credit unions leverage their unique place in the American financial system to extend availability 

of service to all who seek such service, while encouraging and recognizing their historical 

emphasis on servicing those of modest means. 

Outcome Goals: 

4.1. NCUA promotes increased credit union membership and accessibility with service to the 

underserved and enhanced financial service offerings. 

4.2. NCUA appropriately shapes the regulatory environment to allow credit unions to meet the 

changing economical and sociological financial needs of credit union members. 

4.3. NCUA identifies and shares innovative initiatives to further credit union service while ensuring 

the safe and sound condition of the credit union system. 

Strategic Goal 5: 

NCUA’s organization is appropriately structured to enable credit unions to continue to flourish 

while addressing the challenges of the 21st century. 

Outcome Goals: 

5.1. NCUA has the ability to identify emerging management and human capital issues and trends and 

implement timely and effective solutions in a cost effective manner. 

5.2. NCUA strategic goals are supported by an integrated, reliable and secure Information 

Technology architecture. 

5.3. NCUA’s organizational structure supports a safe and sound credit union system while facilitating 

growth and development in a changing environment. 

5.4. NCUA has the people, tools, and structure in place to minimize the impact of any potential crisis 

situation. 
NCUA Annual Performance Plan 2004 

 14

Resource Utilization Projection 

The following chart shows how NCUA resources have been applied to accomplish its five strategic 

goals since 1999. The 2004 projected FTE and budget dollars are estimates only. The final 2004 

budget was approved by the NCUA Board in November 2003. 

Goal 1999 2000 2001 2002 20032 Est. 20043

1 

FTE 

Budget 

Actual 

704.69 

665.84 

729.20 

697.36 

706.22 

692.85 

628.66 

604.76 

634.71 

N/A 

602.95

N/A

1 

Dollars 

Budget 

Actual 

$82,368,695 

$79,927,400 

$93,276,711 

$89,008,270 

$96,086,414 

$92,422,097 

$92,790,450 

$84,528,781 

$95,485,302 

N/A 

$93,842,706

N/A

2 

FTE 

Budget 

Actual 

34.41 

30.52 

39.00 

35.32 

31.81 

30.98 

36.48 

34.81 

31.86 

N/A 

34.15

N/A

2 

Dollars 

Budget 

Actual 

$4,172,141 

$3,612,356 

$5,738,137 

$5,053,257 

$4,928,441 

$4,707,265 

$5,460,094 

$4,874,055 

$4,792,946 

N/A 

$5,315,415

N/A

3 

FTE 

Budget 

Actual 

35.18 

31.61 

32.69 

34.04 

33.95 

33.69 

72.18 

79.55 

70.65 

N/A 

68.12

N/A

3 

Dollars 

Budget 

Actual 

$4,112,044 

$3,794,983 

$4,181,701 

$4,344,719 

$4,618,820 

$4,493,986 

$10,653,276 

$11,119,362 

$10,628,670 

N/A 

$10,602,367

N/A

4 

FTE 

Budget 

Actual 

129.34 

116.25 

115.84 

118.16 

123.67 

122.47 

151.58 

145.68 

126.20 

N/A 

155.52

N/A

4 

Dollars 

Budget 

Actual 

$15,118,454 

$13,955,037 

$14,818,098 

$15,081,098 

$16,826,083 

$16,337,272 

$22,372,974 

$20,362,714 

$18,984,865 

N/A 

$24,205,613

N/A

5 

FTE 

Budget 

Actual 

138.52 

108.96 

132.34 

110.25 

133.10 

110.17 

106.30 

93.50 

107.60 

N/A 

102.55

N/A

5 

Dollars 

Budget 

Actual 

$16,191,016 

$13,079,304 

$16,927,899 

$14,071,940 

$18,108,822 

$14,695,977 

$15,690,667 

$13,069,330 

$16,187,929 

N/A 

$15,961,491

N/A

Total 

FTE 

Budget 

Actual 

1042.15 

953.18 

1049.07 

995.13 

1028.75 

990.16 

995.20 

958.30 

971.02 

N/A 

963.30

N/A

Total 

Dollars 

Budget 

Actual 

$121,962,349 

$114,369,080 

$134,942,546 

$127,559,283 

$140,568,580 

$132,656,597 

$146,967,461 

$133,954,242 

$146,079,712 

N/A 

$149,927,592

N/A

% Total Actual 

Dollar Change 

13.70% 11.53% 4.00% .98% N/A N/A

 

2

 The 2003 budget was approved by NCUA Board on November 21, 2002. 

3

 The 2004 FTE are annualized and are for planning purposes only. The 2004 budget was approved by the NCUA Board on 

November 20, 2003. 
NCUA Annual Performance Plan 2004 

 15

Annual Performance Goals, Means, and Strategies 

Strategic Goal 1: 

A system of financially sound, well-managed, federally insured credit unions able to withstand 

economic volatility 

Outcome Goal 1.1: 

NCUA promotes effective risk management practices. 

1.1(a): NCUA Rules and Regulations promote the use of effective risk management practices. 

Measure Target

(1) The review and update of NCUA Rules 

and Regulations as appropriate 

Complete one third annually 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Complete by New goal for 2003. 12/03 12/04 

1.1(b): NCUA’s risk-focused supervision process provides credit unions with useful, effective, and 

efficient means for improving their risk management practices. 

Measure Target

(1) Recommendations from the post 

implementation program evaluation 

conducted by the Office of Examination and 

Insurance in 2003 

Implement by year-end 

(2) Necessary changes identified through 

third-party reviews (i.e., OIG, GAO, OMB, 

etc.) 

Implement by year-end 

(3) Question 24 on the revised NCUA 

Examination Survey 

4.5 average rating 

(4) Corporate credit unions with a CRIS Risk 

Management rating of 3 or better 

90% or better 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Implement by New goal for 2004. 12/04 

(2) Implement by New goal for 2004. 12/04 

(3) 4.5 or > New goal for 2003. 4.5 4.5 

(4) 90% or > 100% 100% 100% 100% 100% 100% 

 

4

 Question 2 asks whether the examination provided management with sufficient direction for improving risk management 

at the credit union. 
NCUA Annual Performance Plan 2004 

 16

1.1(c): Emerging risks and trends are identified and evaluated for resulting regulatory changes, 

changes to the supervision process, and/or the development of guidance. 

Measure Target

(1) National Risk Trends Report and other 

communications 

Distribute to staff semiannually and as needed 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Distribute by New goal for 2003. 3/03 

9/03 

3/04 

9/04 

Outcome Goal 1.2: 

NCUA timely resolves safety and soundness issues. 

1.2(a): The percentage of federally insured credit unions (FICUs) with long-standing unresolved 

problems that threaten their safety and soundness is limited. 

Measure Target

(1) FICUs that remain a CAMEL code 3 or 

greater for 36 months and have a 

Management component code of 3 or greater 

3 percent or less 

(2) FICUs that remain a CAMEL code 4 or 5 

for more than 12 months 

1 percent or less 

(3) FICUs with a return on assets of less than 

0.50% and net worth less than 6% 

Acceptable range is 1 percent 

+ or (-) .25% 

 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) 3% or less 3.78% 3.01% 3.11% 2.83% 3% 3% 

(2) 1% or less 1% 1% 1% 1% 1% 1% 

(3) 1% +(-) 25% 1.36% 0.73% 0.70% 0.63% 0.75% 0.75% 

1.2(b): FICUs in danger of insolvency are effectively monitored and assessed for continued viability. 

Measure Target

(1) FICUs with a net worth ratio of less than 

two percent 

0.25 percent or less 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) 0.25 % or less N/A 0.32% 0.30% 0.18% 0.25% 0.25% 

Outcome Goal 1.3: 

NCUA’s supervision efforts influence credit unions to effectively plan to meet current and future 

financial and managerial challenges. 
NCUA Annual Performance Plan 2004 

 17

1.3(a): NCUA staff, credit unions, and other interested parties are proficient in assessing strategic risk 

and understanding strategic planning concepts. 

Measure Target

(1) Percentage of FICUs with a high strategic 

risk rating 

Baseline to be established in 

2003 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Baseline TBD New goal for 2004. TBD 

1.3(b): NCUA provides credit unions and staff with critical and valuable information to assist with 

planning and evaluating emerging issues. 

Measure Target

(1) Question 15 on the revised NCUA 

Examination Survey 

4.5 average rating 

(2) Letters to Credit Unions, Regulatory 

Alerts, and other communications 

Issue as warranted 

(3) Recommendations to improve NCUA’s 

communication processes identified by audits 

conducted by the OIG. 

Implement as necessary 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) 4.5 or > New goal for 2003. 4.5 4.5 

(2) Issue by New goal for 2004 12/04 

(3) Implement by New goal for 2004. 12/04 

Outcome Goal 1.4: 

NCUA diligently manages the National Credit Union Share Insurance Fund (NCUSIF). 

1.4(a): NCUA diligently manages the NCUSIF to support credit union deposit insurance needs. 

Measure Target

(1) NCUSIF Equity Ratio 1.3 percent 

(2) Percentage of the credit union industry’s 

market share of federally insured assets 

Increase from prior year 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) 1.3% 1.3% 1.3% 1.25% 1.27% 1.3% 1.3% 

(2) % Increase 5.63% 5.55% 5.99% 6.31% 6.32% 6.33% 

 

5

 Question 1 asks if the examiner communicated effectively with management and officials throughout the examination 

(e.g., sharing information, discussing applicable current credit union issues). 
NCUA Annual Performance Plan 2004 

 18

Means and Strategies: 

1. Focus the risk-focused examination on the forward-looking analysis of the seven areas of risk 

relevant to credit union operations and on credit union management’s ability to identify, evaluate, 

monitor, and control risk in their institutions.6

2. Conduct quality control reviews and supervisory examiner appraisals of the risk-focused 

examinations at the regional level to help ensure the integrity and effectiveness of risk-focused 

examination process. 

3. Work cooperatively with the State Supervisory Authorities in their assessment of the financial and 

operational condition of federally insured state-chartered credit unions and in properly managing 

their risk to the NCUSIF. 

4. Utilize supervision tools currently available and under development to evaluate risk to the NCUSIF 

at the individual credit union, geographic area, region, and national level and react appropriately to 

mitigate this risk. 

5. Continue to issue Letters to Credit Unions, Regulatory Alerts, Technical Bulletins and other 

official communications as warranted on a timely basis. 

6. Ensure the Central Liquidity Facility continues to operate in an efficient and timely manner in 

meeting the unforeseen liquidity needs of its members. 

Strategic Goal 2: 

The safe integration of credit union financial services and emerging technology 

Outcome Goal 2.1: 

NCUA’s supervision process is designed to identify, measure, monitor, report, and control the 

risks existing and emerging financial service technologies pose to credit unions and the NCUSIF. 

2.1(a): NCUA Information System & Technology (IS&T) subject matter examiner workforce 

possesses an above average knowledge of procedures and controls in internal and external 

IS&T environments. 

Measure Target

(1): IS&T SME Concept Understanding7 Review and, if necessary, 

update by year-end 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Complete by New goal for 2004. 12/04 

Outcome Goal 2.2: 

NCUA provides information and resources to help ensure credit unions safely integrate, operate, 

and effectively manage existing and emerging financial service technologies. 

 

6 The seven risk areas are; credit, interest rate, liquidity, transaction, compliance, strategic, and reputation. 7

 A Concept Understanding is the list of knowledge, skills and abilities that a SME should possess after a specified period 

of time. 
NCUA Annual Performance Plan 2004 

 19

2.2(a): The credit union community’s use and understanding of technology planning including disaster 

recovery and contingency plans, due diligence expectations and best practices is enhanced. 

Measure Target

(1) Appropriate number of IS&T Subject 

Matter Examiners (SME) with the desired 

competency level. 

Determined by each Region 

based on the number, size, 

and services of its credit 

unions 

(2) Guidance on effective technology 

management practices 

Issue as necessary 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) TBD New goal for 2004. TBD 

(2) Issue by New goal for 2004. 12/04 

Means and Strategies: 

1. Develop and implement a comprehensive program designed to provide initial and continuing 

education/training to subject matter examiners, examiners and SSA staff. This program should 

include establishing a baseline, program testing, evaluation, and reassessment through an 

examiner survey. 

2. Enhance the sharing of Information Systems and Technology best practices among examiners, 

credit unions and trade associations through group meetings, regional intranet sites, and 

participation in sessions provided by the trade associations. 

3. Monitor the number of CUs engaging in e-commerce activity and the type of activity utilized. 

4. Promote voluntary agreements for 3rd party e-commerce vendor reviews. 

5. Track e-commerce providers to monitor the volume and level of associated risk. 

Strategic Goal 3: 

A regulatory environment that facilitates credit union innovation to meet member financial 

service expectations while maintaining safety and soundness 

Outcome Goal 3.1: 

NCUA regulations are current, clearly written, flexible, necessary and relevant for an effective 

regulatory environment.

3.1(a): NCUA regulations facilitate credit union innovation. 

Measure Target

(1) The completed review and update of the 

NCUA Rules and Regulations as appropriate. 

One third annually 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Complete by New goal for 2003. 12/03 12/04 
NCUA Annual Performance Plan 2004 

 20

Outcome Goal 3.2: 

NCUA’s supervision process supports credit union financial services that are innovative and 

competitive in a changing economic environment. 

3.2(a): The NCUA Board’s regulatory philosophy is effectively communicated throughout all levels of 

the organization. 

Measure Target

(1) Employee satisfaction level with 

management communication of 

organizational information. 

Implement recommendations 

in the NCUA Human Capital 

Survey Report to address the 

high percentage of negative 

responses to Question 64 of 

the Human Capital Survey8

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Implement by New goal for 2004. 12/04 

3.2(b): NCUA’s supervision process is efficient, effective, flexible and facilitative in a competitive 

environment yet maintains safety and soundness standards. 

Measure Target

(1) Credit union satisfaction with relevancy, 

(risk) focus and effectiveness of NCUA’s 

supervision process as indicated on questions 

3 and 7 of the NCUA Examination Survey9. 

Rating of 4.5 or greater 

(2) Examination and supervision productive 

time as a percentage of total examiner time. 

59%10 or greater 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) 4.5 or > Survey revised in 2003. 4.5 4.5 

(1) 59% or > 57% 56% 59% 59% 59% 59% 

Outcome Goal 3.3: 

NCUA contributes to a regulatory environment that promotes credit union innovation. 

3.3(a): Communication of legislative and regulatory information is efficient, timely and effective. 

 

8

 Question 64 of the Human Capital Survey asks NCUA employees to rate their satisfaction level with the information they 

receive from management on what’s going on in their organization. 9

 Question 3 asks if the topics discussed with credit union officials were relevant to the identified risks and potential risk 

exposure in the credit union. Question 7 asks if the overall examination process was effective. 10 Ratio includes 5300 data collection and Small Credit Union Program time. 
NCUA Annual Performance Plan 2004 

 21

Measure Target

(1) Availability of legislative and regulatory 

information to credit unions, credit union 

leagues, and trade associations. 

Publish as appropriate 

(2) Availability of an electronic subscription 

service for disseminating regulatory and 

supervisory communications to credit unions. 

Implement by year-end

(3) Redesign of the NCUA Internet website. Implement by year-end 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Publish by New goal for 2004. 12/04 

(2) Implement by New goal for 2004. 12/04 

(3) Implement by New goal for 2004. 12/04 

Means and Strategies: 

1. Promote the flexible regulatory philosophy through publications and meetings. 

2. Review examination and supervision procedures for necessary changes considering economic 

conditions. 

3. Review NCUA regulations for both natural person and corporate credit unions for needed 

changes to ensure they are current, necessary, and effective. 

4. Enhance the ability of NCUA to share information and legislative efforts with credit unions, 

leagues, State Supervisory Authorities and associations. 

5. Continue to promote a strong dual-chartering system by maintaining a balanced “playing field” 

through the appropriate means for the two systems. 

6. Review and consider all communications/input regarding the effectiveness of all regulations. 

Strategic Goal 4: 

Credit unions leverage their unique place in the American financial system to extend availability 

of service to all who seek such service, while encouraging and recognizing their historical 

emphasis on servicing those of modest means 

Outcome Goal 4.1: 

NCUA promotes increased credit union membership and accessibility with service to the 

underserved and enhanced financial service offerings. 

4.1(a): Financial service availability is expanded to people from all walks of life. 

Measure Target

(1) Potential underserved members added An amount equal to or above 

the three-year moving 

average number of potential 

underserved members added 

Historical Performance 
NCUA Annual Performance Plan 2004 

 22

 99 00 01 02 Est. 03 Est. 04 

(1) Three year 

moving average 

N/A 2.37 16.1 23.5 14 18 

4.1(b): Emerging trends in demographics and financial service offerings are identified and shared with 

examiners, State Supervisory Authorities and federal credit unions. 

Measure Target

(1) An annual survey of emerging trends in 

demographics and financial service offerings 

Publish by year-end 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Publish by New goal for 2004. 12/04 

4.1(c): Common themes or reasons for the success or failure of newly chartered credit unions are 

identified. 

Measure Target

(1) Chartering Model11 Revise or appropriately 

update by year-end 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Revise by New goal for 2004. 12/04 

Outcome Goal 4.2: 

NCUA appropriately shapes the regulatory environment to allow credit unions to meet the 

changing economical and sociological financial needs of credit union members. 

4.2(a): The regulatory environment allows credit unions to enhance financial services by reducing 

regulatory barriers and sharing information and legislative efforts with credit unions, leagues, 

and associations. 

Measure Target

(1) Percentage increase in the number of 

credit union members 

An increase of 2.0 percent or 

greater12

(2) Percentage increase in credit union assets An increase of 8.0 percent or 

greater13

(3) Percentage increase in credit union shares An increase of 7.5 percent or 

greater14 

 

11 The chartering model encompasses the established standards for organizing and chartering a credit union. The study will 

focus on ways in which the standards may be modernized for more successful chartering. 12 The target is based on historical performance for the last three years. 13 The target is based on the actual 10 year average increase in assets and current and forecasted economic conditions. 14 The target is based on the actual 10 year average increase in shares and current and forecasted economic conditions. 
NCUA Annual Performance Plan 2004 

 23

(4) Percentage increase in credit union loans 

outstanding 

An increase of 6.0 percent or 

greater15 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Increase by 2.6% 2.9% 2.3% 2.0% 2.0% 2.0% 

(2) Increase by 5.8% 6.5% 14.4% 11.1% 15.0% 8.0% 

(3) Increase by 5.0% 6.3% 15.2% 10.8% 15.3% 7.5% 

(4) Increase by 10.5% 11.0% 7.0% 6.3% 6.5% 6.0% 

Outcome Goal 4.3: 

NCUA identifies and shares innovative initiatives to further credit union service while ensuring 

the safe and sound condition of the credit union system. 

4.3(a): Innovative best practice member service solutions are available to credit unions. 

Measure Target

(1) Communications describing best practice 

member service solutions 

Post articles semi-annually 

(2) Single focus workshops that foster Access 

Across America Initiative objectives 

Conduct by year-end 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Post by New goal for 2004. 6/04 

12/04 

(2) Conduct by New goal for 2004. 12/04 

Means and Strategies: 

1. Promote and enhance the ability of federal credit unions to expand the availability of affordable 

products and services to people from all walks of life through the Access Across America

initiative. 

2. Encourage credit union use by all Americans through an education initiative on the value of the 

NCUSIF account coverage. 

3. Encourage and facilitate federally chartered credit unions to focus on providing competitive 

services based on sound business practices, to partner with others to increase efficiencies and to 

consider means to provide technologically based services to those not having access to the 

Internet. 

4. Provide federal credit unions with an efficient process to expand fields of membership through 

effective statutes (including Federal legislation), regulations, policies and procedures. 

5. Identify challenges in forming new federal charters and expanding existing charters, and 

identify and share resources to mitigate those challenges, partnering with trade associations and 

others to enhance service to underserved groups. 

6. Facilitate the identification of resources available for federal credit unions to obtain economies 

of scale and to attract and retain new members, especially the underserved. 

 

15 The target is based on historical performance for the last ten years and current and forecasted economic conditions. 
NCUA Annual Performance Plan 2004 

 24

Strategic Goal 5: 

NCUA’s organization is appropriately structured to enable credit unions to continue to flourish 

while addressing the challenges of the 21st century 

Outcome Goal 5.1: 

NCUA has the ability to identify emerging management and human capital issues and trends and 

implement timely and effective solutions in a cost effective manner. 

5.1(a): Human resource decisions are optimal, supported by data and aligned with the agency’s 

mission, values, and goals. 

Measure Target

(1) NCUA Human Capital Survey Act on areas identified for 

improvement in the 2003 

survey. 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Complete by New goal for 2004. 12/04 

5.1(b): Subject Matter Examiners (SME) maintain the requisite competencies required by their SME 

designation. 

Measure Target

(1) Identify SME competencies for placement 

in CU-12 examiner position description and 

performance standards 

Review and, if necessary, 

update annually 

(2) Examiner CU 5-12 Workforce Planning 

Survey competency self-assessment on 

questions pertaining to the SME designation. 

Percentage of CU-12 

examiners with an average 

response rating of 416or better 

(establish baseline in 2004) 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Complete by New goal for 2004. 12/04 

(2) 4 or > New goal for 2004. Baseline 

5.1(c): NCUA staff has the requisite information technology skills to effectively support the 

accomplishment of agency mission and goals. 

Measure Target

(1) Examiner CU 5-12 Workforce Planning 

Survey competency self-assessments on 

Maintain at 90% or better the 

percentage of examiners with 

 

16 A rating of 4 indicates employee is provided training to achieve the requisite competency level. 
NCUA Annual Performance Plan 2004 

 25

questions pertaining to the use of agency 

provided hardware, purchased software, and 

custom applications. 

an average response rating of 

417 or better 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) 4 or > New goal for 2004. 90% 

5.1(d): Efficiency and effectiveness is enhanced through partnerships with sister FFIEC agencies. 

Measure Target

(1) FFIEC Annual Report Advancement of interagency working group 

mutual goals. 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Complete by New goal for 2004. 12/04 

Outcome Goal 5.2: 

NCUA strategic goals are supported by an integrated, reliable and secure Information 

Technology architecture. 

5.2(a): NCUA program and operational support-related capabilities are enhanced by leveraging 

existing and emerging technologies. 

Measure Target

(1) Independent customer service survey 

evaluation 

Equal to or above peer group 

average rating. 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Equal to or 

above peer group 

N/A N/A N/A 3.83 3 3 

5.2(b): Security reviews reflect minimal deficiencies 

Measure Target

(1) Federal Information Security Management 

Act (FISMA)-mandated security review 

Minimum material 

deficiencies noted18 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Deficiencies N/A N/A N/A None None None 

 17 A rating of 4 on the 5 point training and experience scale indicates the employee uses the hardware or software 

independently as a regular part of the job, normally without review by a supervisor or senior employee 

18 If any determined, they will be corrected as soon as practical and prudent given the nature of the deficiency and the 

degree of risk. 
NCUA Annual Performance Plan 2004 

 26

5.2(c): NCUA networks and servers are reliable.

Measure Target

(1) Percentage of network and server 

availability 

Maintain at an acceptably 

high level (98%) 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) 98 % 

Availability 

N/A N/A N/A 98.94 

98.57 

98 

98 

98 

98 

Outcome Goal 5.3: 

NCUA’s organizational structure supports a safe and sound credit union system while 

facilitating growth and development in a changing environment. 

5.3(a): NCUA employs sound business planning principles at all levels of the agency to assess past 

performance and improve future operating results. 

Measure Target

(1) Requirements detailed in NCUA 

Instruction 9501 “NCUA Strategic and 

Annual Performance Planning” dated April 

15, 2003. 

Complete applicable 

requirements by year-end 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Complete by New goal for 2004. 12/03 12/04 

5.3(b): The current environment and NCUA organizational structure and procedures are continually 

assessed to enhance effectiveness and efficiency. 

Measure Target

(1) Closure of Region IV office, relocation of 

Region VI office, and integration of staff 

Complete by year-end 

(2) Postmortem review of the Region IV 

office closure and the Region VI office 

relocation 

Initiate by year-end 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Complete by New goal for 2004. 12/04 

(2) Initiate by New goal for 2004. 12//04 

5.3(c): NCUA examination and supervision procedures are appropriately structured to identify and 

minimize the potential risks arising from large credit unions. 
NCUA Annual Performance Plan 2004 

 27

Measure Target

(1) Large credit union pilot program findings Implement by year-end 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Implement by New goal for 2004. 12/04 

5.3(d): The Economic Development Specialist Program is appropriately structured to provide 

enhanced economic development support. 

Measure Target

(1) Economic Development Specialist 

Program Study 

Complete study by year-end 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Complete by New goal for 2004. 12/04 

Outcome Goal 5.4: 

The people, tools, and structure is in place to minimize the impact of any potential crisis 

situation. 

5.4(a): The operational impact of a crisis situation is minimized. 

Measure Target

(1) Continuity of Operations Management 

Plan and Continuity of Operations Action 

Plan 

Review, test and, if 

necessary, update by yearend 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Test and 

update by 

New goal for 2004. 12/03 12/04 

5.4(b): NCUA physical, human capital and information technology assets are protected during a crisis 

situation. 

Measure Target

(1) Continuity of Operations Management 

Plan and Continuity of Operations Action 

Plan 

Review, test and, if 

necessary, update by yearend 

Historical Performance 

 99 00 01 02 Est. 03 Est. 04 

(1) Test and 

update by 

New goal for 2004. 12/03 12/04 
NCUA Annual Performance Plan 2004 

 28

Means and Strategies: 

1. Employ effective business planning strategies to continually evaluate the validity and 

applicability of NCUA's strategic goals, outcome goals, and annual performance goals and 

measures. 

2. Ensure human capital support systems provide necessary tools to meet current and evolving 

requirements of risk-focused transition and those set by the Office of Personnel Management. 

3. Evaluate emerging technologies as potential tools to enhance operational effectiveness and 

efficiency where appropriate. 

4. Promote internal collaboration and efficiency by maintaining a continual strategic dialog 

between all NCUA Regional and Office Directors through their participation on the Strategic 

Management Council. 

5. Identify, resolve, and report security weaknesses and risks, as well as protect against future 

vulnerabilities and threats in accordance with the Government Information Security Reform 

Act, and the Office of Management and Budget’s Updated Guidance on Security Plans of 

Action and Milestones. 
NCUA Annual Performance Plan 2004 

 29

 Strategic Program Evaluation 

The NCUA Office of the Inspector General’s 2003 -2004 audit schedule includes the following audits: 

2003 PROJECTS 

• Financial statement audits (4) 

• Government Information Security Act 2003 

• Material loss reviews (as necessary) 

• Nationwide Member Complaint Process 

• NCUA Risk Based Exam Scheduling 

Program 

• Credit Union E-Commerce 

• Federally Insured State Chartered Credit 

Unions 

• Training and Equipment provided to State 

Supervisory Authorities 

2004 PROJECTS 

• Financial statement audits (4) 

• Government Information Security Act 2004 

• Material loss reviews (as necessary) 

• Resource Allocation Process 

• Adequacy of Information Technology 

Vendor Reviews 

• Subject Matter Examiners 

• Risk Focused Examination Process 

• Communication with Credit Unions 

• Parking Garage Management and 

Operations Contract 
NCUA Annual Performance Plan 2004 

 30

APPENDIX A: Cross-Cutting Strategies

NCUA participates in various interagency 

working groups to share ideas, promote the 

advancement of mutual goals, and increase 

consistency and efficiency. Following is a list 

of interagency working groups NCUA staff 

participated in during 2002, along with a brief 

description of major 2002 accomplishments. 

NCUA anticipates working in collaboration 

with these same groups in 2004. 

Atlanta Federal Executive Board (FEB). 

FEBs operate in major metropolitan areas 

around the United States to discuss areas of 

common interest such as security to leaders of 

Federal agencies. 

Bank Fraud Working Group. The BFWG is 

chaired by the Fraud Section of the Department 

of Justice and generally meets on a monthly 

basis to discuss issues of concern to the various 

agencies. The current membership includes the 

financial regulatory agencies and a number of 

law enforcement agencies. Its primary purpose 

is to provide a forum to enhance cooperation 

between these entities in order to assure that 

crimes against federally insured financial 

institutions are promptly prosecuted to the full 

extent of the law. Recently the group has been 

developing standard civil prohibition language 

for use in criminal plea agreements. 

Banking Agencies FOIA Working Group. 

This group is comprised of disclosure officers 

from each of the financial institution regulators 

and focuses on developing consistency among 

the agencies’ disclosure policies for 

examination materials and sharing best 

practices on general disclosure issues. 

Chief Human Capital Officers Council 

(CHCOC). The CHCOC is an interagency 

advisory group of federal CHCOs/HR Directors 

chartered by OPM that identifies emerging 

government-wide human capital policy and

operational issues and proposes specific 

measures and approaches for dealing with 

them. Its predecessor, the Human Resources 

Management Council, worked with OPM in 

developing and refining the Human Capital 

Framework and government-wide human 

capital survey NCUA has used in human 

capital planning. 

Conference of State Bank Supervisors 

(CSBS) District One. Our involvement with 

the CSBS includes semi-annual meetings 

between state and federal regulators. The 

meetings are designed to coordinate regional 

issues, discuss common areas of concerns and 

identify upcoming risks. The CSBS meetings 

also allow us to keep up to date on regulatory 

issues affecting other federal regulators. 

Dallas Regional Bank Fraud Working 

Group. This group’s function is to discuss and 

share information of mutual interest to 

regulatory and law enforcement agencies 

regarding white collar crime in financial 

institutions. In 2002, the group made 

participants better informed of issues and 

initiatives important to fellow agencies, most 

often related to fraudulent activities. 

Economic Growth and Regulatory 

Paperwork Reduction Act (EGRPA) 

Interagency Group. This group, which is 

made up of all the financial institution 

regulators, is required by section 2222 of the 

EGRPRA of 1996 to categorize all of the 

agencies regulations by type and then issue a 

notice and request for comment for each of the 

categories. The notice must request comment 

on areas of the regulations that are outdated, 

unnecessary, or unduly burdensome. This must 

be done on a 10-year cycle. The first cycle ends 

in September 2006. 
NCUA Annual Performance Plan 2004 

 31

Employment Information Work Group. The 

Employment Information Work Group serves 

as a conduit for OPM to report on the 

employment information program, funded by 

legislatively-mandated fees from all federal 

agencies, and receive input and evaluations of 

program effectiveness from agency users. 

Participation in the work group has kept OHR 

up to date on interagency services including 

USAJOBS internet and automated telephone 

systems advertising federal vacancies, 

automated application services, and 

information on federal employment. 

Employee Relations Network. The OPM 

sponsored network serves as a conduit for 

employee relations information sharing across 

Executive Branch agencies. Participants share 

and/or disseminate information on employee 

relations issues/practices, e.g., conferences, 

training, key misconduct issues/cases, and 

MSPB and Court decisions. Discussions of 

new issues/initiatives and their impact in 

personnel actions contribute to the successful 

adjudication of cases. 

FACTS Notes Committee. This group, 

comprised of representatives from the US 

Treasury, FDIC and OMB, was formed to 

establish financial reports for non-appropriated 

agencies. Significant achievements include 

development of report formats consistent with 

the President's budget and the report to 

Congress. 

Fair Credit Reporting Act (FCRA) Group. 

This group, which consists of all the financial 

institution regulators, is working on writing 

regulations that implement the FCRA, with the 

help of Federal Trade Commission (FTC) 

staffers. The Gramm-Leach-Bliley Act gave 

rule-writing authority to the financial institution 

regulators for the first time. Previously, the 

FTC attempted to analyze the law through staff 

legal opinions. The group is working on its 

second proposed rule to make it compatible 

with the privacy rule and current industry 

practices. The group has not met in several 

months, however, as the group awaits possible 

amendments to the FCRA that Congress is 

likely to make this session. 

Fair Lending Task Force. This group is 

chaired by the Federal Reserve and is 

comprised of representatives from the federal 

financial institution regulators and others 

including HUD and Treasury. The group meets 

every other month to share information on fair 

lending issues and develop uniform strategies 

to fair lending problems. The group has 

developed policy statements and brochures in 

the past but has not issued any documents in 

the past few years. 

Federal Financial Institutions Examination 

Council (FFIEC). The FFIEC is an 

interagency body empowered to prescribe 

uniform principles, standards, and report forms 

for the federal examination of financial 

institutions by the Board of Governors of the 

Federal Reserve System, the Federal Deposit 

Insurance Corporation, the National Credit 

Union Administration, the Office of the 

Comptroller of the Currency, and the Office of 

Thrift Supervision and to make 

recommendations to promote uniformity in the 

supervision of financial institutions. To 

effectively administer projects in all its 

functional areas, the Council established six 

interagency task forces, each including one 

senior official from each agency. The Council 

also established the Legal Advisory Group, 

composed of a senior legal officer from each 

agency. 

Activities of the six FFIEC Interagency Staff 

Task Forces 

Task Force on Consumer Compliance: This 

task force promotes policy coordination and 

uniform enforcement of consumer protection 
NCUA Annual Performance Plan 2004 

 32

laws and regulations. Initiatives addressed in 

2002: 

• Examination procedures for the Home 

Ownership and Equity Protection Act 

• Examination procedures for the rule on 

prohibition against using interstate 

branches primarily for deposit 

production 

• Consumer leasing examination 

procedures 

• HMDA efficiency 

• Guidance in dealing with the lapse of 

FEMA authority to issue flood 

insurance contracts 

Task Force on Examiner Education: This task 

force promotes interagency education through 

timely, cost-efficient, state-of-the-art training 

programs for agency examiners. Initiatives 

addressed in 2002: 

• Update Release of the first InfoBase CD 

on Subprime Lending 

• Negotiated Agreement with the 

Conference of State Banking 

Supervisors to co-sponsor an online 

distance-learning course on fraud 

identification 

• Development of three Supervisory 

Update sessions including topics on 

subprime lending, credit scoring, 

electronic financial services, and risk 

management 

Task Force on Information Sharing: This task 

force promotes the sharing of electronic 

information among the FFIEC agencies to 

support the supervision, regulation, and deposit 

insurance responsibilities of financial 

regulators. Initiatives addressed in 2002: 

• Establishment of a process to transmit 

FDIC documents to the FRB securely 

and an automated T1 line between the 

FDIC and the OTS for secure e-mail 

and bulk data transmissions 

• Establishment of a collaborative 

website among FFIEC agencies 

Task Force on Reports: This task force helps to 

develop interagency uniformity in the reporting 

of periodic information needed for effective 

supervision and other public policy purposes. 

Initiatives in 2002: 

• Call Report processing modernization 

• Reporting requirements for the Call 

Report 

Task Force on Supervision: This task force 

promotes quality, consistency, and 

effectiveness in examination and supervisory 

practices to minimize regulatory burden. 

Initiatives in 2002: 

• Interagency guidance on implicit 

recourse in asset securitization 

• Interagency questions and answers on 

the capital treatment of recourse, direct 

credit substitutes, and residual interests 

in asset securitization 

• Interagency advisory on the regulatory 

capital treatment of accrued interest 

receivable related to credit card 

securitization 

• Crisis management efforts – updated 

supervisory communication protocols 

• Credit card and subprime lending – 

identified accounting, policy and 

examination issues related to assessing 

the associated risks 

• Corporate Governance and Audit – 

approved a Notice of Proposed Rule 

Making that would strengthen the 

authority of federal banking agencies to 

take disciplinary actions against 

independent public accountants and 

accounting firms that perform audit and 

attestation services required by section 

36 of the Federal Deposit Insurance Act 
NCUA Annual Performance Plan 2004 

 33

• Capital Standards – issued supervisory 

guidance to address the appropriate 

capital treatment of certain asset 

securitization activities 

• Information Technology – focused 

resources to update and revise the 

FFIEC’s Information Systems 

Examination Handbook 

Task Force on Surveillance Systems: This task 

force oversees the development and 

implementation of uniform interagency 

surveillance and monitoring systems. 

Initiatives in 2002: 

• Electronic distribution of the Uniform 

Bank Performance Report (UBPR) 

• Internet versions of related statistical 

reports 

• New UBPR pages for securitization 

and fiduciary activities 

 

Legal Advisory Group NCUA attorneys in the 

Office of General Counsel are members of the 

FFIEC interagency Legal Advisory Group. 

This group considers and provides advice on 

legal issues arising from the work of the 

Federal Financial Institution Examination 

Council; its members are the General Counsels 

from the agencies making up the Council. In 

2002, among other matters, the group 

addressed data collection and distribution costs 

associated with financial institution compliance 

with the Home Mortgage Disclosure Act that is 

expected to promote fair sharing of the costs 

among the agencies 

Federal Interagency Travel Committee. This 

group assists GSA in development of travel 

management and policy. Significant 

achievements include streamlining travel 

activities through the use of the travel card and 

developing the Premier Lodging Program to 

keep lodging rates in high-rate areas within 

established government rates. 

Financial and Banking Information 

Infrastructure Committee (FBIIC). The 

FBIIC is a standing committee of the 

President's Critical Infrastructure Protection 

Board, serves as the Office of Homeland 

Security Financial Markets Work Group, and is 

charged with coordinating federal and state 

financial regulatory efforts to improve the 

reliability and security of the U.S. financial 

system. Treasury's Assistant Secretary for 

Financial Institutions chairs the committee. 

FIRREA Compensation Committee. The 

Compensation Committee facilitates 

information sharing among FIRREA agencies 

on compensation and classification programs, 

practices, and issues to solve problems and 

identify best practices. OHR participation has 

assisted NCUA in meeting the legal 

requirement to maintain comparability across 

FIRREA agencies in compensation programs. 

Government Performance and Results Act 

Financial Institutions Regulatory Working 

Group. This interagency working group is 

composed of the federal financial regulatory 

agencies. It was formed to work on issues 

related to common strategic goals and to 

collaborate in understanding and meeting 

GPRA requirements. Initiatives taken by this 

group in 2002 include sharing of “best 

practices” and addressing common budget and 

planning issues. 

Gramm-Leach-Bliley Act (GLBA) Study 

Working Group. This group, which is chaired 

by Treasury and includes all the financial 

institution regulators, the Federal Trade 

Commission, the Commodity Futures Trading 

Commission, and the Securities and Exchange 

Commission, is preparing a report for Congress 

required by GLBA §508 on information 

sharing practices among financial institutions 

and their affiliates. The report is nearing 

completion and will contain recommendations 

regarding legislative actions to address 
NCUA Annual Performance Plan 2004 

 34

consumer privacy issues. The same agency 

representatives also meet as needed to discuss 

questions regarding interpretation of the GLBA 

consumer privacy provisions. 

High Risk Money Laundering and Related 

Financial Crimes Areas (HIFCA) NY/NJ. 

HIFCA is comprised of federal, state and local 

enforcement authorities in the New York City 

area with the goal of combating money 

laundering. Our participation in HIFCA 

includes periodic meetings to address the 

tracing of funds, collaborative investigative 

techniques and the exchange of information on 

money laundry issues among participants. 

Interagency Accounting Seminar Planning 

Committee. The Interagency Accounting 

Seminar Planning Committee plans and 

oversees the annual Interagency Accounting 

Seminar. The objective of the seminar is to 

update participants on emerging accounting and 

auditing issues. During 2002, the committee 

held a successful seminar and began planning 

for the 2003 seminar. 

Interagency Budget Group. This group 

covers budget related issues of the smaller and 

non-CFO agencies. Efforts have resulted in 

standardization of budgetary reporting to OMB. 

Interagency Ethics Council. This group, 

which is comprised of ethics representatives 

from all federal executive branch agencies, 

meets monthly to share information on 

developments in ethics law and regulations, 

such as Office of Government Ethics news as 

well as interpretations of the Executive Branch 

Standards of Conduct regulations. 

Interagency Relocations Advisory 

Committee. This group communicates 

developments in the moving and real estate 

industry which affect relocation policies. The 

group has influenced changes to relocation 

regulations and related activities. 

Interagency Staffing Issues Group. The 

Interagency Staffing Issues Group facilitates 

cross-agency information sharing on federal 

staffing issues and provides a sounding board 

for OPM on proposed and existing staffing 

programs. Participation in the Group provided 

OHR staff with up to date information on 

current staffing issues and initiatives; OPM 

issuances, legislation, and executive orders; 

problems and best practices; and evaluations of 

staffing products and services. 

National Academy of Public Administration 

(NAPA). NAPA is an independent, nonpartisan 

organization chartered by Congress to assist 

federal, state, and local governments in 

improving their effectiveness, efficiency, and 

accountability. Its Center for Human 

Resources Management (CHRM) provides 

research, information, education, & consulting 

services on human resources issues to help 

organizations strengthen their capacity to 

develop & deliver effective human resources 

programs. Participation in NAPA conferences 

and meeting during 2002 is assisting NCUA in 

meeting the human capital goals set out in the 

President’s Management Agenda. 

National Association of State Credit Union 

Supervisors (NASCUS). We meet semiannually with NASCUS to discuss areas of 

mutual concern to the NCUA and state credit 

union regulators. The primary achievement of 

these meetings is the development of a national 

Document of Cooperation between the NCUA 

and state regulators. The Document of 

Cooperation defines our regulatory efforts 

regarding state chartered credit unions. 

New England Regulatory Compliance 

Council (NERCC). NERCC involves state and 

federal financial regulators located in New 

England. NERCC’s goals include providing a 

forum for inter-agency communications, 

promoting greater compliance with consumer 

compliance laws, promoting greater 
NCUA Annual Performance Plan 2004 

 35

consistency in the examination process and 

providing training to examiners, financial 

institutions and community organizations. 

NERCC meetings are held on a monthly basis. 

Office of Financial Institution Adjudications. 

This group, which consists of all the federal 

financial institution regulators, monitors the 

work of the Administrative Law Judges. The 

group meets four times a year, receives verbal 

reports from the judges, adopts budgets, and 

hires administrative law judges as appropriate. 

Office of Personnel Management Employee 

Assistance Program Committee. This 

interagency committee, established by OPM, is 

creating a government-wide OPM Employee 

Assistance Program (EAP) report of the future 

that will present government-wide data from 

EAP Program Managers to demonstrate the 

value of the EAP and the need for resources 

and support, and position the program to serve 

its organizations. The data will help NCUA in 

making EAP program decisions, managing 

operations and contractors, discovering best 

practices, and understanding issues cutting 

across the larger Federal EAP community. 

Section 314 (U.S.A. Patriot Act) Working 

Group. This group is chaired by the 

Department of the Treasury and is comprised of 

representatives from the federal banking 

agencies. This section of the U.S.A. Patriot 

Act provides for information sharing between 

law enforcement agencies and financial 

institutions as well as between financial 

institutions themselves. The group developed 

Treasury’s implementing regulation and has 

been working on guidance to financial 

institutions involved in information sharing. 

Section 326 (U.S.A. Patriot Act) Working 

Group. This group is chaired by the 

Department of the Treasury and is comprised of 

representatives from the federal banking 

agencies and others. This section of the U.S.A. 

Patriot Act requires the establishment of 

customer identification programs at a broad 

range of institutions offering financial services. 

The group is in the process of drafting 

regulations to implement this section of the 

statute. 

Sharing Neutrals Program. Provide mediators 

from other agencies for mediation requests 

HHS provides the administrative framework for 

agencies to share mediators at no cost. 

Small Agency Financial Council. The purpose 

of this group is to discuss financial related 

issues of importance and best practices among 

the non-CFO Act agencies. Efforts of the 

council have improved overall financial 

management of the smaller or non-CFO Act 

federal agencies. 

 

Small Agency Human Resource Council 

(SAHRC). The SAHRC identifies human 

resources management policy and operational 

issues and propose specific measures and 

approaches for dealing with them. Agency HR 

Directors supported each other in defining, 

encouraging innovative approaches to address 

HR problems common to small and 

independent agencies. 

Southeastern Federal Recruiting Council 

(SEFRC). SEFRC has operated since 1956 

with membership open to public and private 

colleges and Federal agencies with the purpose 

of increasing awareness of Federal employment 

opportunities. SEFRC conducts annual 

conferences to that end with speakers from 

within the group as well as outside speakers. 

Special Emphasis Program Managers. 

Networking group for the FIRREA agencies 

and other small agencies. Share program ideas 

and present ideas to EEOC for the EEO Special 

Emphasis Programs. 
NCUA Annual Performance Plan 2004 

 36

APPENDIX B: Data Verification and Validation

The examination and supervision programs for 

natural person and corporate credit unions 

employ multiple checks and balances to 

evaluate processes and to verify and validate 

data collected. These checks and balances are 

the responsibility of the Office of Examination 

and Insurance, the Office of Corporate Credit 

Unions, and the Regional Offices. The Office 

of the Chief Financial Officer is responsible for 

the verification and validation of budget data 

collected. A few of the processes used are 

listed below by way of example: 

Surveillance Systems Working Group. This 

newly formed group is made up of regional and 

central office employees. The group’s charter 

is to develop a comprehensive understanding of 

NCUA’s entire data collection, storage, and 

retrieval process, maintain up-to-date 

documentation on these processes and systems, 

assist in the implementation of needed changes 

to our processes and systems, and provide 

recommendations for improving data collection 

methods. 

5300 Call Report Program. The 5300 Call 

Report Program is the source of most data 

collected and reports produced concerning 

natural person credit union activities. The data 

are reviewed at three levels for accuracy and 

validity: the examiner level, the Regional or 

State Supervisory Authority level, and the 

Central Office level. The Automated 

Integrated Regulatory Examination System 

Committee conducts continuous reviews of the 

data collected to ensure specific alignment with 

the agency’s program and to the changing 

environment of credit unions. 

5310 Call Report Program. The 5310 Call 

Report Program is the source of most data 

collected and reports produced concerning 

corporate credit union activities. The data are 

reviewed initially for accuracy and integrity by 

corporate office staff before being reviewed by 

corporate field staff. If the corporate credit 

union has a state charter, the appropriate State 

Supervisory Authority may review the data. 

The Office of Corporate Credit Union staff then 

reviews the 5310 data of both federal and state 

corporate credit unions to assist in ensuring its 

integrity and accuracy. Corporate examination 

procedures are also periodically reviewed by 

the Office of Corporate Credit Union staff to 

ensure their specific alignment with the 

agency’s program and to the changing 

environment of corporate credit unions. 

Information System and Technology Program.

The Information System and Technology 

Program provides continuous oversight of the 

natural person credit union technology related 

data in addressing safe and secure integration 

and use of information technology. The 

accuracy of this data is also reviewed at three 

levels, as above. 

Annual Audits. An outside independent 

accounting firm conducts annual Certified 

Public Accountant audits on the National 

Credit Union Share Insurance Fund, National 

Credit Union Administration Operating Fund, 

Community Development Revolving Loan 

Program, and the Central Liquidity Facility to 

ensure the accuracy of their financial data. 
NCUA Annual Performance Plan 2004 

 37

APPENDIX C: Human Capital Management Plan

NCUA’s Human Capital Management 

Plan focuses on the means by which its 

personnel are recruited, trained, and 

retained in the most effective and 

efficient manner to accomplish the 

mission. It also addresses the 

requirements of The President’s 

Management Agenda and the directives 

of the Office of Personnel Management. 

The concepts, ideas and elements 

expressed within are intended for NCUA 

internal use only. 

Environmental Scan: 

Demographics. The NCUA staff is its 

most critical and valuable asset. The 

agency has invested substantial amounts 

of time and effort in recruiting, 

developing and maintaining its high 

performing, well qualified, and diverse 

workforce. NCUA’s workforce 

demographics reflect a much younger 

workforce than is typical in most federal 

agencies. For this reason, NCUA does 

not expect a wave of retirements 

proportionate to what other agencies will 

experience in the next 10 years. At the 

staff, or non-supervisory level, the peak 

in retirement eligibility is not anticipated 

before 2020. 

However, NCUA’s largest number of 

retirements within the next 10 years will 

be at the supervisory and executive 

level. Nearly 65 percent of the 

supervisory examiner workforce and 

nearly 50 percent of the executive level 

workforce will be eligible to retire 

between 2005 and 2010. The anticipated 

executive level and supervisory level 

retirements have provided an excellent 

opportunity to reassess NCUA’s 

structure; with a focus on ensuring the 

agency is citizen-centered as directed by 

the President’s Management Agenda. 

The assessment included a determination 

of the necessary and appropriate number 

of executive and supervisory staff, and 

the number and location of regional 

offices and the states served by each 

region. Implementation of the results of 

this reassessment began in 2002 with a 

realignment of headquarters offices and 

is continuing into 2004 with a phased 

field realignment reducing the number of 

NCUA regions from six to five and 

realigning states among the five regions. 

At the staff level, retention is steady at a 

high 94 percent fill-rate due to 

recruitment and retention programs. 

These programs enable NCUA to 

maintain a steady influx of candidates 

for the primary agency occupation, the 

credit union examiner, with minimal 

disruptions as workforce losses occur 

due to retirements and other causes. 

To assure a continuing source of highly 

qualified leaders, NCUA has developed 

its management and executive 

development resources with in-house 

programs targeted at NCUA employees 

currently at the CU-12 through CU-16 

levels. NCUA also promotes 

government-wide leadership programs 

focused on employees at the CU-5 level 

and above. 

Supervisory Workforce Analysis. During 

2002 and 2003, we continued our efforts 

to conduct competency evaluations of 

critical occupations, following our initial 

study of Credit Union Examiners in 

2001. The second workforce analysis 

included a comprehensive survey of 42 

field supervisors, Supervisory Examiners 
NCUA Annual Performance Plan 2004 

 38

and Directors of Special Actions. The 

objective of the survey was to identify 

the competencies required to perform the 

work essential to the supervisor’s job 

and to assess current supervisory 

competency levels. 

The survey data support multiple human 

resource purposes, including the 

development of recruitment, staffing, 

training, and performance management 

mechanisms needed to assure field 

supervisors have the leadership skills 

needed to achieve the agency’s strategic 

goals. Analyses of other critical NCUA 

occupations, such as the specialty 

examiner and analyst positions, will 

follow the examiner workforce analysis. 

Competencies Vital to Goal 

Accomplishment. The supervisory 

examiners’ leadership role in supervising 

credit union examiners is vital to the 

accomplishment of NCUA’s mission. 

Their coaching and support of examiners 

as they develop to the full performance 

level enable examiners to independently 

apply discretion and judgment 

concerning the safety and soundness of 

the credit union based on its financial 

(management) systems and practices, 

credit union staff and volunteer 

interaction, and assessments of its 

relative financial condition. 

The leadership provided by field 

supervisors fosters the continued safety 

and soundness of federally insured credit 

unions and protects the National Credit 

Union Share Insurance Fund (NCUSIF). 

The infrequent and relatively small 

losses to the NCUSIF and the overall 

integrity of the credit union system 

result, in part, from skilled leadership of 

the examiner workforce. 
NCUA Annual Performance Plan 2004 

 39

Human Capital Program Activity

Support of Safety and Soundness Mission: 

3⁄4 Agency Program Alignment 3⁄4 Performance Culture 

3⁄4 Recruitment and Retention 

3⁄4 Leadership 

3⁄4 Continuous Learning 

3⁄4 Equal Opportunity 

Note: NCUA’s 5-Year Work Force Plan is designed to meet the human capital goals and standards set in the Office of 

Personnel Management’s Human Capital Scorecard and the Office of Management and Budget’s Human Capital 

Standards for Success, for the President’s Management Agenda (PMA). 

 

Strategic Goal #1 

Align human capital policies with strategic goals. 

Outcome Goal 1.1: Align NCUA’s human capital policies to support 

accomplishment of its mission, vision, goals and strategies. 

Means and Strategies: 

1. Ensure human capital goals and strategies in the agency’s strategic plan and the 

human resources annual performance plan support mission needs and the PMA. 

2. Reinforce linkage between competencies for mission critical occupations and 

achievement of NCUA strategic goals through such activities as employee 

training on risk focused supervision process; changes in position descriptions and 

performance standards to reflect a new risk-focused credit union supervision role; 

and regular reports to all employees on progress in meeting goals. 

3. Assess structure of agency and implement changes to better meet mission goals. 

4. Promote progress toward this goal by addressing goal related issues presented by 

the Human Capital Survey administered in 2003. 

5. Identify issues and progress toward this goal through Human Resources Internal 

Review program. 

6. Encourage broad employee involvement in updates to NCUA Strategic Plan. 

7. Participate in Government-wide collaborative efforts and/or 

managerial/professional/employee organizations to share best practices and 

leverage lessons learned. 

Annual Performance Goal 1.1 

3⁄4 2004 1.1a: Ensure there are explicit and well communicated links between 

HR strategies and plans and the agency’s strategic objectives. 

1.1b: Ensure the agency is well structured to support its mission. 

1.1c: Ensure employees understand their department’s plans and are 

involved in the strategic planning and reporting process. 
NCUA Annual Performance Plan 2004 

 40

Strategic Goal #2 

Recruit, develop, and retain employees with strategic competencies. 

Outcome Goal 2.1: Ensure NCUA recruits, develops, and retains employees with the 

strategic competencies required for mission critical occupations. 

Means and Strategies: 

1. Identify current and potential competency gaps and succession planning needs by 

conducting workforce planning studies of primary mission-critical occupations 

and implement recruitment, staffing, training, retention, or other actions (as 

needed) to better meet requirements. 

2. Give management direct automated access to competency information to assist in 

addressing individual employee and organizational competency needs. 

3. Ensure employees acquire mission critical competencies by modifying training 

and development programs and guidance materials as required (e.g., Entry Level 

Examiner training courses, manuals, and on-the-job development program; 

technical training for subject matter examiners; competency-based training and 

development catalog). 

4. Provide efficient, effective staffing services to meet NCUA’s resource 

management needs (e.g., fill times for examiner recruitment). 

5. Maintain turnover rate for Credit Union Examiners at 9 percent or less. 

6. Maintain 95 percent fill-rate for Credit Union Examiners throughout the year. 

Note: Turnover-rate and fill-rate are independent of the target full time equivalent. 

For example, should a lower full time equivalent level be established, the 95 

percent is based on the lower full time equivalent. 

7. Identify issues and progress toward goals through the Human Resources Internal 

Review program. 

8. Promote progress toward this goal by addressing goal related issues presented by 

the Human Capital Survey administered in 2003. 

Annual Performance Goal 2.1

3⁄4 2004 2.1a: Ensure the desired competency levels in mission critical 

occupations are achieved. 

2.1b: Ensure the desired recruitment/retention rate for 

employees with strategic competencies is achieved. 

2.1c: Ensure the desired quality level of new hires is achieved. 
NCUA Annual Performance Plan 2004 

 41

Strategic Goal #3 

Inspire and guide achievement of strategic goals in a high quality work environment. 

Outcome Goal 3.1: Ensure agency leadership inspires, motivates, and guides others 

toward goals; coaches, mentors, and challenges staff; adapts leadership styles to 

various situations; establishes a clear vision for change; models high standards of 

honesty, integrity, trust, openness, and respect for all by applying these values. 

Means and Strategies: 

1. Provide opportunities, on a competitive basis, for supervisory and nonsupervisory staff to identify and overcome gaps in first line supervisory and 

executive level competencies through participation in NCUA Management and 

Executive Development Programs and government-wide leadership programs. 

2. Promote compliance with merit principles and ethical standards through training 

of supervisory, management, and executive staff. 

3. Identify and address current and potential competency gaps and succession 

planning needs by conducting workforce planning studies of mission-critical 

supervisory occupations and implement recruitment, staffing, training, retention, 

or other actions, as needed. 

4. Promote progress toward this goal by addressing goal related issues presented by 

the Human Capital Survey administered in 2003. 

5. Promote and support employee participation on committees at agency and 

regional/office levels to address strategic, operational, and quality of life issues. 

Annual Performance Goal 3.1 

3⁄4 2004 3.1a: Ensure agency recruits, develops, and retains high 

performing leaders. 

3.1b: Ensure agency leaders create high levels of motivation 

and commitment in the workforce. 

3.1c: Ensure leaders maintain high standards of honesty and 

integrity that serve as a model to the whole workforce. 
NCUA Annual Performance Plan 2004 

 42

Strategic Goal #4 

Develop and maintain a high performance organizational culture. 

Outcome Goal 4.1: Create a high performance culture that values and rewards 

employees’ contributions to the work of the organization and promotes shared 

values while ensuring fairness in the workplace. 

Means and Strategies: 

1. Ensure employee pay is tied to work performance through use of NCUA-wide 

merit pay system. 

2. Foster a high performance culture by use of the full range of awards programs. 

3. Use a contributions-based personnel system for NCUA executives to determine 

pay for promotions or reassignments to executive level. 

4. Address employee performance problems through use of performance 

improvement plans, employee removals, and other performance actions. 

5. Identify issues and progress toward this goal through a Human Resources Internal 

Review program. 

6. Promote progress toward this goal by addressing goal related issues presented by 

the Human Capital Survey administered in 2003. 

7. Foster a climate that values diversity through diversity education programs in 

connection with government-wide diversity recognition programs. 

8. Promote employment diversity within NCUA through diversity recruitment 

efforts. 

9. Assure employee’s contributions are accurately measured and goal oriented by 

strengthening understanding of the appraisal process. 

Annual Performance Goal 4.1 

3⁄4 2004 4.1a: Ensure agency develops, rewards, and retains high 

performers while dealing effectively and efficiently with poor 

performers. 

4.1b: Ensure employees are engaged and focused on achieving 

the high standards and optimum results expected of them. 

4.1c: Ensure the agency fosters a climate that values diversity. 
NCUA Annual Performance Plan 2004 

 43

Strategic Goal #5 

Create and promote an agency culture of continuous learning (knowledge management). 

Outcome Goal 5.1: Ensure agency promotes a knowledge-sharing culture in a 

climate of fairness, openness, and continuous learning and improvement. 

Means and Strategies: 

1. Link employee training and development goals and programs to mission related 

goals in NCUA strategic plan (e.g., transition to risk-focused credit union 

supervision). 

2. Address current and potential competency gaps and succession planning needs by 

conducting workforce planning studies of mission-critical supervisory 

occupations and implement recruitment, staffing, training, retention, or other 

actions, as needed. 

3. Enhance ongoing management of competencies across mission critical 

occupations by exploring computer-based skills competency management tools. 

4. Improve access to learning opportunities through an NCUA training and 

development catalog based on competencies. 

5. Promote continuous learning and improvement through Individual Development 

Plans for every employee on an annual basis. 

6. Improve access by every employee to the latest information, best practices, and 

upcoming program changes via NCUA’s e-mail and intranet systems. 

7. Facilitate more cost-efficient training, meetings, and information sharing by a 

widely dispersed nationwide workforce through an agency videoconferencing 

system. 

8. Promote skills development and maintenance of state-of-the-art knowledge of 

credit union and financial issues with in depth technical training programs. 

9. Encourage participation in the Federal Financial Institutions Examination Council 

technical training courses offered to NCUA employees. 

10. Enable each Credit Union Examiner to maintain up-to-date knowledge by 

providing an annual stipend for the purchase of work-related publications. 

11. Invest in internal Management/Executive Development Programs, which enable 

employees, selected on a competitive basis, to participate in formal courses, 

developmental assignments, and a group project providing experiential learning. 

12. Test computer-based electronic learning to identify the costs/benefits of this 

methodology for a workforce that is geographically dispersed. 

13. Maintain comparability with credit union and banking industry* on percent of 

budget spent for employee training and development relative to salary and 

benefits expenditures. (E.g., in 2001, NCUA spent 2.85 percent as compared to an 

average of 2.8 percent spent by the credit union and banking industry.*) 

14. Promote progress toward this goal by addressing goal related issues presented by 

the Human Capital Survey administered in 2003. 

15. Encourage learning and growth through training and development opportunities 

offered to employees each year. 
NCUA Annual Performance Plan 2004 

 44

16. Promote effective utilization of resources by enhancing supervisory competencies 

and maintaining state-of-the-art knowledge through performance management 

and discipline training. 

* Industry data published by American Society of Training & Development (ASTD) 

Annual Performance Goal 5.1 

3⁄4 2004 5.1a: Ensure knowledge management systems and/or strategies 

are in place for use within the agency. 

5.1b: Ensure agency invests strategically in training and 

development opportunities for all employees. 

5.1c: Ensure a climate of learning and growth exists 

throughout the agency. 
NCUA Annual Performance Plan 2004 

 45

APPENDIX D: Information Technology Resource Management Plan

NCUA’s Information Technology 

Management Plan focuses on the means 

by which information technology will be 

used to support and enhance mission 

accomplishment. It also addresses the 

requirements of The President’s 

Management Agenda and directives of 

the Office of Management and Budget. 

The concepts, ideas, and elements 

expressed within are intended for NCUA 

internal use only and do not address 

credit union use of information 

technology. 

Introduction: 

The Clinger-Cohen Act requires all 

Federal agencies to define the current 

and future information technology 

environment or “Enterprise 

Architecture.” The difference between 

the current and the future (target) 

environment determines what must be 

accomplished and is used as a basis to 

develop the agency’s information 

technology strategic and annual 

performance goals. 

Information Technology Vision 

Statement

To be a leader in government and serve 

as a model to the credit union industry in 

the delivery of timely, accurate and 

complete information technology 

resources, products and services. 

Information Technology Mission 

Statement

Provide agency staff and external 

customers with quality information 

technology products and services that 

foster efficient operations and support 

the mission of NCUA. 

Current Environment

Work Processes and Information Sets 

Used:

Work Process Support Data 

Natural Person and 

Corporate Credit 

Union 

Examination 

Programs, Asset 

Management and 

Assistance 

Program, Central 

Liquidity Facility 

Program, and 

Community 

Development 

Revolving Loan 

Fund Program 

Financial and 

management data, 

personnel resource 

execution data, and 

regional and 

national trend 

information 

Financial 

Management 

Program 

Accounting, 

budgeting, travel, 

expense, and other 

financial data 

Human Capital 

Management 

Program 

Personnel 

management and 

life cycle 

information (i.e., 

recruiting, 

classification, 

staffing, 

compensation, 

benefits, training, 

etc.) 

Applications and Systems Supported:

Custom Applications. The core custom 

applications maintain chartering, 

examination and financial data stored in 

the central office database. The 

applications are multi-tiered and serve 

both office and field functions. Some 

custom applications are designed to run 

on the Intranet or the Extranet. 
NCUA Annual Performance Plan 2004 

 46

Automated Integrated Regulatory 

Examination System (AIRES). AIRES 

supports the core agency function of 

examining natural person credit unions 

for safety and soundness. 

Comprehensive Human Resources 

Integrated System (CHRIS). CHRIS is 

maintained for NCUA by the General 

Services Administration and supports all 

aspects of the personnel life cycle to 

include recruiting, classification, 

staffing, compensation, benefits, 

training, equal employment opportunity 

reporting, and personnel processing and 

management. 

Financial and Statistical System (F&S). 

The F&S System contains the financial 

data for the credit unions. The data from 

the Form 5300 and Form 5310 Call 

Reports are maintained in this system. 

Management Information System (MIS). 

The MIS contains information regarding 

the credit union’s location and select 

event history and financial data. An 

event can be a merger, liquidation, 

operations resumption, purchase and 

assumption, conversion, and/or 

cancellation. 

OSCAR. OSCAR maintains historical 

credit union examination data for 

viewing and use by examiners. The data 

is collected from other systems 

supported by the NCUA. 

Risk Management System (RMS). The 

RMS contains problem credit union data. 

Time Management System (TMS). The 

TMS contains examiner’s weekly 

examination hours, details of time 

charged, and itinerary. 

Videoconferencing System. The 

Videoconferencing System connects the 

regional offices and the Central Office 

using an Internet Protocol based 

videoconferencing system. 

Software. All client computers are 

identically configured with a 

combination of commercial and custom 

software based on WinTel standards. 

NCUA uses the SAP R/3 Enterprise 

Resource Planning software package to 

manage the agency’s core financial 

processes. The SAP R/3 Financial 

Accounting, Controlling, Material 

Management, and the Human Resources 

modules have been implemented to 

support NCUA headquarters, six 

regional offices, and the Asset 

Management & Assistance Center. This 

system also supplies financial processing 

services for the National Credit Union 

Share Insurance Fund, the NCUA 

Operating Fund, the Central Liquidity 

Facility, and the Community 

Development Revolving Loan Fund. 

Web-based Environments. NCUA 

maintains three different web-based 

environments, which are accessed using 

a standard Internet browser. Each 

environment serves a different customer 

base and is built accordingly. 

3⁄4 Internet. The NCUA web site 

(www.ncua.gov) is accessible by 

anyone having Internet access. 

The Office of Public and 

Congressional Affairs maintains 

the site with content supplied by 

NCUA offices. 

3⁄4 Intranet. The NCUA Intranet is 

accessible only by NCUA 

employees. The Office of Public 
NCUA Annual Performance Plan 2004 

 47

and Congressional Affairs 

maintains the structure of the 

site, as well as the custom 

applications that are hosted on 

the Intranet. Various NCUA 

offices own portions of the 

Intranet and are responsible for 

appearance and content. 

3⁄4 Extranet. The NCUA extranet 

serves credit unions interested in 

using the automated field of 

membership expansion 

application. The Office of the 

Chief Information Officer 

maintains the extranet site and 

the custom application it serves. 

Only those credit unions that 

have been granted a certificate 

can access this site. 

Technology Architecture: 

Hardware. NCUA uses a single end-user 

computing platform for all users. 

NCUA servers are periodically upgraded 

or replaced to ensure availability and 

maintainability. The current 

configuration is documented in a 

network diagram maintained by OCIO. 

Network storage for all servers is 

provided via a Storage Area Network 

(SAN) system. 

Communications. NCUA has Local Area 

Networks in each Regional Office and 

the Central Office that are connected 

through the agency Wide Area Network. 

This configuration is described in the 

NCUA Wide Area Network diagram. 

Connections to communication systems 

outside NCUA are protected through a 

firewall. 

Future (Target) Environment

Work Processes: 

The focus will be to provide tools to 

enhance the work processes for 

increased efficiency and effectiveness in 

accordance with the NCUA program on 

Accountability in Management. 

Information and Information Sets 

Used:

All information and information sets 

shown above will continue to be 

collected. The focus will be on 

providing tools to enhance the collection 

processes for increased efficiency and 

effectiveness in accordance with the 

NCUA programs. NCUA will migrate 

toward using Web-based collection 

means and information distribution. 

Web-based Form 5300 and Form 5310 

Call Report filing is the first step in that 

migration. 

Applications and Systems Supported: 

All functions of the applications and 

systems supported will continue to be 

supported. The focus will be on 

enhancing the applications and systems 

to improve the work. The Financial and 

Statistical System (Form 5300 and 5310 

Call Report Data Collection) is under 

continuous review and enhancements by 

the Office of Examination and Insurance 

and the Office of Corporate Credit 

Unions. Efforts are also underway to 

develop a Risk Modeling System to 

enhance the examiner’s capability to 

assess credit union risk profiles. 

Additionally, NCUA will develop offsite monitoring for enhanced data 

management and supervision for 

increased efficiency and effectiveness in 

accordance with the new NCUA RiskFocused Examination Program. Further, 

NCUA has embarked upon the process 

of developing enhanced training tools 
NCUA Annual Performance Plan 2004 

 48

integrating e-learning capabilities into 

our training process across the agency’s 

enterprise. This enhanced training 

capability will greatly assist with 

NCUA’s ability to transition to a riskfocused examination process through the 

efficient training of subject matter 

examiners. 

Technology Architecture: 

Hardware. NCUA replaces all the 

agency end-user computers every three 

years. This allows NCUA to stay 

current with changes in hardware and 

software technology. Anticipated 

improvements in hardware include faster 

processing and greater data storage. 

Communications. NCUA’s goal is to 

constantly improve performance and 

availability of the network. 

Security. Security is an integral part of 

all agency systems and is incorporated 

throughout the life cycle of each system. 

The Federal Information Security 

Management Act requires that agencies 

maintain and implement a security plan 

with appropriate security controls for all 

critical elements of each system in place. 

Each plan is reviewed annually for 

effectiveness. More frequent reviews 

are completed as necessary for 

significant changes to the system or to 

the environment. 
NCUA Annual Performance Plan 2004 

 49

 APPENDIX E: Contingency Planning

The Federal Government is committed 

to ensuring that the financial services 

system will be able to continue to 

operate under crisis conditions. The 

Contingency Planning Appendix looks at 

how NCUA assesses and mitigates event 

risk and how NCUA evaluates its 

programs for mission impact. 

This appendix also addresses the 

requirements of The President’s 

Management Agenda, the Government 

Information Security Reform Act, and 

recent guidance from the Office of 

Management and Budget. 

The concepts, ideas and elements 

expressed herein are intended for NCUA 

internal use only and do not address 

individual credit union contingency 

planning efforts, which should be based 

upon their own needs and requirements. 

NCUA’s approach to Contingency 

Planning is based on the concept that the 

most effective management of a crisis 

situation occurs when it is detected and 

dealt with quickly. 

Contingency Planning Mission

Minimize the impact of any potential 

disruption to agency operations while 

continuing to carry out its mission. 

NCUA accomplishes this by identifying 

those functions and/or processes that are 

critical to its operations and develops 

plans to deal with the potential failure of 

one or more of them. 

NCUA Strategic and Outcome 

Contingency Planning Goals follow in 

the table below. 
NCUA Annual Performance Plan 2004 

 50

Contingency Planning Strategic Goals

Strategic Goal #1 

NCUA management has the ability to assess, direct and manage the potential impact on 

operations during crisis situations. 

Objective

This goal deals with the element of Situation Management. This is the development and 

communication of management actions to staff and the training of staff to handle these actions 

during a crisis. The ability of senior management to assess and manage a crisis is often the 

single most important aspect of minimizing the impact of the crisis to the organization. 

Outcome Goal

Effectively manage NCUA operations while minimizing the impact of any potential crisis 

situation. 

Means and Strategies: 

1. Identify, train and maintain an effective crisis management team. 

2. Identify and prioritize potential crisis scenarios. 

3. Prioritize overall agency operations and allocate resources appropriately during a crisis. 

4. Provide oversight of the development, testing, and distribution of crisis response plans. 

5. Review, update and enhance crisis response plans. 

Strategic Goal #2 

NCUA has the capability to continue critical operations in crisis situations. 

Objective

This goal addresses Continuity of Operations. While no one can think of or plan for all possible 

options, it is possible to identify those critical elements needed to sustain operations. It is these 

critical elements that NCUA must focus on during a crisis. 

Outcome Goal

Create and maintain an effective operational structure to ensure the continuity of operations. 

Means and Strategies: 

1. Assess potential crisis situations for the potential impact on program operations. 

2. Identify critical program and operational systems. 

3. Assess critical systems for their potential impact on the continuity of operations and 

prioritize based on impact (e.g., allowable down time). 

4. Protect the operational integrity of the control structure during a crisis situation. 

5. Develop continuity of operations / crisis response plans for critical systems. 

6. Train and exercise staff in the execution of continuity of operations / crisis response plans. 
NCUA Annual Performance Plan 2004 

 51

Strategic Goal #3 

NCUA’s Physical, Human Capital and Information Technology assets are safe and secure. 

Objective

This goal addresses the various aspects of security for NCUA’s assets. 

Outcome Goal

Protect NCUA’s Physical, Human Capital and Information Technology assets during a crisis 

situation. 

Means and Strategies: 

1. Identify NCUA’s critical facilities and equipment, human capital and information technology 

assets. 

2. Assess critical assets for potential internal and external threats. 

3. Assess critical systems to identify external factors that affect NCUA’s ability to protect 

critical assets. 

4. Develop options to protect critical assets during a crisis. 

5. Test agency-wide plans to protect critical assets, both physical and electronic, during a crisis. 

6. Train NCUA and SSA employees on the appropriate aspects of the Government Information 

Security Reform Act. 

Strategic Goal #4 

NCUA has an effective, secure and sustainable communications network during a crisis 

situation. 

Objective

This goal addresses Crisis Communication. NCUA must be prepared to provide effective 

communications to its staff, other Federal and state agencies, the credit union community and the 

general public during a crisis. 

Outcome Goal

Maintain the integrity and function of NCUA’s communication network during a crisis. 

Means and Strategies: 

1. Identify critical agency communication needs. 

2. Identify NCUA’s critical communications systems (facilities, equipment, and/or 

personnel). 

3. Assess critical communications systems for potential internal and external threats. 

4. Develop alternative means of communicating during a crisis. 

5. Develop and maintain an effective public affairs and media communications plan for use 

during a crisis situation. 

6. Test agency-wide communication systems as part of the continuity of operations plan. 
NCUA Annual Performance Plan 2004 

 52

Glossary of Terms

Environmental Scan – a forwardlooking perspective or scan of social, 

technological, economic, ecologic, 

political/legislative, international, or 

other conditions that are relevant to the 

major functions and operations of the 

agency over the time period covered by 

the plan. 

Information Technology Enterprise 

Architecture - the framework an 

organization uses to articulate its 

information technology priorities, to 

manage for results, and to tie 

information technology architecture to 

mission objectives. This framework is a 

comprehensive plan that includes the 

delimitation of information technology 

objectives and a description of how 

resources will be deployed to 

accomplish them. 

Outcome Goal – a description of an 

intended result, effect, or consequence 

that will occur from carrying out a 

program or activity. 

Output Goal – a target of performance 

of the level of activity or effort that will 

be produced or provided over a period of 

time or by a specified date, including a 

description of the characteristics and 

attributes (e.g., timeliness) established as 

standards in the course of conducting the 

activity or effort. 

Mission Statement – the articulation of 

why an organization exists, the 

“business” it engages in to achieve its 

purpose, and the values that guide the 

accomplishment of the mission. 

Performance Goal – a target level of 

performance expressed as a tangible, 

measurable objective, against which 

actual achievement can be compared, 

including a goal expressed as a 

quantitative standard, value, or rate. 

Performance Measure – the results of a 

program activity compared to its 

intended purpose expressed as an 

outcome (assessment) or an output 

(quantitative or qualitative). 

Performance Plan – derived from an 

agency’s strategic plan and sets out 

measurable goals that define what will 

be accomplished during the time period 

of the plan. 

Performance Report – an assessment 

of an agency’s actual performance and 

progress in achieving the goals and 

objectives in the strategic plan and 

annual performance plan. It also 

assesses the reliability and completeness 

of the data contained within it. 

Performance Target – a specific 

tabulation, calculation, characteristic or 

value used to measure output or 

outcome. 

Program Activity – a specific activity 

or project as listed in the program and 

financing schedules of the annual 

budget. 

Program Evaluation – an assessment, 

through objective measurement and 

systematic analysis, of the manner and 

extent to which programs achieve 

intended objectives. 

Strategic Goal – a broad definition of 

what an agency wants to achieve both 

organizationally and/or 
NCUA Annual Performance Plan 2004 

 53

programmatically over a period of time. 

It should allow for a future assessment to 

be made of whether the goal was or is 

being achieved. 

Strategic Plan – the framework an 

organization uses to articulate priorities, 

to manage for results, and to tie results 

to the customer/member/beneficiary. 

The strategic plan is a comprehensive 

plan that includes the delimitation of 

strategic objectives and a description of 

how resources will be deployed to 

accomplish them. 

Strategic Picture – the articulation of a 

forward-looking image based on the 

intelligent projection of trends that 

represent one or more probable scenarios 

over the time period covered by the plan. 

It identifies the environmental and 

operational factors that are relevant to 

the accomplishment of the major 

functions and operations of the agency. 

Value Statement – the articulation of 

those defining characteristics or values 

that guide an organization’s members as 

they pursue the mission. 

Vision Statement – the articulation of 

the mental image that represents the 

successful accomplishment of the 

mission. 

Work Force Plan – the framework an 

organization uses to articulate human 

capital priorities, to manage for results, 

and to align the organizational structure 

with the efficient accomplishment of its 

mission. The work force plan is a 

comprehensive plan that includes the 

delimitation of specific human capital 

objectives designed to enhance 

effectiveness and a description of how 

resources will be deployed to 

accomplish them.