[Federal Register Volume 88, Number 210 (Wednesday, November 1, 2023)]
[Notices]
[Pages 75040-75076]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-24032]


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NATIONAL CREDIT UNION ADMINISTRATION

[NCUA-2023-0117]


The NCUA Staff Draft 2024-2025 Budget Justification

AGENCY: National Credit Union Administration (NCUA).

ACTION: Notice.

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SUMMARY: The NCUA's staff draft ``detailed business-type budget'' is 
being made available for public review as required by federal statute. 
The proposed resources will finance the agency's annual operations and 
capital projects, both of which are necessary for the agency to 
accomplish its mission of protecting the system of cooperative credit 
and its member-owners through effective chartering, supervision, 
regulation, and insurance. The briefing schedule and comment 
instructions are included in the supplementary information section.

DATES: Requests to deliver an in-person statement at the November 16, 
2023, budget briefing must be received on or before November 8, 2023. 
Written statements and presentations for those scheduled to appear at 
the budget briefing must be received on or before 9 a.m. Eastern, 
November 13, 2023.
    Written comments may be submitted by November 21, 2023.

ADDRESSES: You may submit comments by any of the following methods 
(please send comments by one method only):
    <bullet> In-person presentation at public budget briefing: submit 
requests to deliver a statement at the briefing to 
<a href="/cdn-cgi/l/email-protection#94d6e1f0f3f1e0d6e6fdf1f2fdfaf3d4faf7e1f5baf3fbe2"><span class="__cf_email__" data-cfemail="a0e2d5c4c7c5d4e2d2c9c5c6c9cec7e0cec3d5c18ec7cfd6">[email protected]</span></a> by November 8, 2023. Include your name, title, 
affiliation, mailing address, email address, and telephone number. The 
NCUA Board Secretary will inform you by November 9, 2023, if you have 
been approved to make a presentation. In order to present at the public 
meeting, you must submit a statement. Your statement must be submitted 
to <a href="/cdn-cgi/l/email-protection#115364757674655363787477787f76517f7264703f767e67"><span class="__cf_email__" data-cfemail="3c7e49585b59487e4e55595a55525b7c525f495d125b534a">[email protected]</span></a> by 9 a.m. Eastern, November 13, 2023. Your 
presentation must be delivered in person at the public budget briefing.

[[Page 75041]]

You will be allotted five minutes during the budget briefing to deliver 
your remarks.
    <bullet> Written comments without an in-person presentation: submit 
written comments by November 21, 2023, through the Federal eRulemaking 
Portal: https://www.regulations.gov. The docket number is NCUA-2023-
0117. Follow the instructions for submitting comments.
    <bullet> Copies of the NCUA Draft 2024-2025 Budget Justification 
and associated materials are also available on the NCUA website at 
https://www.ncua.gov/About/Pages/budget-strategic-planning/supplementary-materials.aspx.

FOR FURTHER INFORMATION CONTACT: Eugene H. Schied, Chief Financial 
Officer, National Credit Union Administration, 1775 Duke Street, 
Alexandria, Virginia 22314-3428 or telephone: (703) 518-6571.

SUPPLEMENTARY INFORMATION: The following itemized list details the 
sections in this Notice made available for public review:

I. The NCUA Budget in Brief
II. Introduction and Strategic Context
III. Key Themes of the Proposed 2024-2025 Budget
IV. Operating Budget
V. Capital Budget
VI. Share Insurance Fund Administrative Budget
VII. Financing the NCUA's Programs
VIII. Appendix A: Supplemental Budget Information
IX. Appendix B: Capital Projects

    Section 212 of the Economic Growth, Regulatory Relief, and Consumer 
Protection Act amended 12 U.S.C. 1789(b)(1)(A) to require the NCUA 
Board (Board) to ``on an annual basis and prior to the submission of 
the detailed business-type budget make publicly available and publish 
in the Federal Register a draft of the detailed business-type budget.'' 
Although 12 U.S.C. 1789(b)(1)(A) requires publication of a ``business-
type budget'' only for the agency operations arising under the Federal 
Credit Union Act's subchapter on insurance activities, in the interest 
of transparency the Board is providing the NCUA's entire staff draft 
budget for 2024-2025 in this Notice.
    The staff draft budget details the resources required to support 
NCUA's mission. The staff draft budget includes personnel and dollar 
estimates for three major budget components: (1) the Operating Budget; 
(2) the Capital Budget; and (3) the Share Insurance Fund Administrative 
Budget. The resources proposed in the staff draft budget are to carry 
out the agency's operations in 2024 and 2025. This document is a draft, 
staff-level budget proposal made available to the NCUA Board members 
and the public for their consideration and comment. The NCUA Board 
directed the NCUA Executive Director to develop the staff draft budget 
under delegated authority. The staff draft budget may change based on 
public comments, Board member decisions, and staff's ongoing 
consideration of estimates and programs that impact the budget.
    The NCUA Chief Financial Officer will present the staff draft 
budget at a budget briefing open to the public and scheduled for 
Thursday, November 16, 2023, at 2:00 p.m. Eastern at the NCUA 
headquarters building, 1775 Duke Street, Alexandria, Virginia 22314. 
Interested parties unable to attend in person may visit the agency's 
homepage (https://www.ncua.gov/) to access the provided webcast link.
    If you wish to participate in the briefing and deliver a statement, 
you must email a request to by November 8, 2023. Your request must 
include your name, title, affiliation, mailing address, email address, 
and telephone number. Statements must be delivered in person at the 
briefing. The NCUA will work to accommodate as many public statements 
as possible at the November 16, 2023, budget briefing. The Board 
Secretary will inform you if you have been approved to make a 
presentation and you will be allotted five minutes during the budget 
briefing to deliver your remarks. A written copy of your statement must 
be delivered to the Board Secretary by email at by 9 a.m. Eastern, 
November 13, 2023. In addition to delivering their remarks at the 
budget briefing, registered presenters will be provided the opportunity 
to ask questions of NCUA staff about the staff draft budget. The 
initial round of questions will be limited to five minutes per 
presenter, and one subsequent round of questions, limited to five 
minutes per presenter, may be permitted by the Chairman if time allows.
    Written comments on the staff draft budget will also be accepted by 
November 21, 2023, through the Federal eRulemaking Portal: https://www.regulations.gov. The docket number is NCUA-2023-0117. Commenters 
should follow the portal instructions for submitting comments.
    All comments should provide specific, actionable recommendations 
about the staff draft budget rather than general remarks. The NCUA 
Board will review and consider any comments from the public prior to 
approving the NCUA 2024-2025 budget.

    By the National Credit Union Administration Board on October 26, 
2023.
Melane Conyers-Ausbrooks,
Secretary of the Board.

I. The NCUA Budget in Brief

Proposed 2024 and 2025 Budgets

    The National Credit Union Administration's (NCUA) 2022-2026 
Strategic Plan sets forth the agency's goals and objectives that form 
the basis for determining resource needs and allocations. The agency's 
annual budgets provide the resources to execute the strategic plan, to 
implement important initiatives, and to undertake the NCUA's major 
programs: examination and supervision, insurance, credit union 
development, consumer financial protection, and asset management.\1\
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    \1\ Budget information presented in this document excludes 
funding for the Central Liquidity Facility (CLF), which has its own 
budget reviewed and decided upon separately by the CLF Board.

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[[Page 75042]]

[GRAPHIC] [TIFF OMITTED] TN01NO23.001

    The NCUA's 2024-2025 staff draft budget justification includes 
three separate budgets: the Operating Budget, the Capital Budget, and 
the National Credit Union Share Insurance Fund (Share Insurance Fund) 
Administrative Expenses Budget. Combined, these three budgets total 
$394.5 million for 2024, which is $8.7 million lower than the $403.2 
million 2024 funding level approved by the NCUA Board as part of the 
two-year 2023-2024 budget.
    Three significant factors, when combined, account for most of the 
9.5 percent increase in the total budget between 2023 and 2024:
    1. A proposed net increase of 11 new positions and incorporating 
into the 2024 budget 17 existing positions currently unfunded in the 
2023 budget.\2\ These positions will support critical areas necessary 
to operate as an effective federal financial regulator capable of 
addressing a range of emerging issues and increase the 2024 budget by 
approximately $5.9 million compared to 2023.
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    \2\ These positions are also known as ``overhire'' positions and 
are funded by surplus pay and benefits budgets that result from 
vacancies.
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    2. An increase of $18.2 million for current employee compensation 
in 2024 compared to 2023. This increase accounts for merit pay raises 
for the NCUA's employees as required by the Collective Bargaining 
Agreement and expected inflationary cost increases for employee 
benefits.
    3. An increase of $10.7 million in funding for contracted services 
for 2024 compared to 2023. Most of the increase in the contracted 
services category includes funding to address new and evolving 
operational risks such as cybersecurity threats and for tools used to 
identify and resolve credit union system risk concerns such as interest 
rate risk, credit risk, and industry concentration risk. Growth in the 
contracted services budget category also results from new operations 
and maintenance costs associated with recent capital investments. Other 
costs include price inflation for core agency business operation 
systems such as accounting and payroll processing and various other 
recurring support costs.
    Recent economic trends, including higher inflation and competitive 
labor markets, have also contributed to increased costs for the NCUA to 
conduct its work without a significant degradation in agency 
capabilities.

Proposed 2024 Operating Budget: $382.1 Million

    The proposed 2024 Operating Budget increases approximately $38.0 
million, or 11 percent, compared to the 2023 Board-approved Operating 
Budget.
    The following chart presents the major categories of spending 
supported by the proposed 2024 Operating Budget.

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[GRAPHIC] [TIFF OMITTED] TN01NO23.002

    As shown in the following chart, the relative size of the NCUA 
budget (dotted line) has generally decreased when compared to balance 
sheets at federally insured credit unions (FICU, solid line).
[GRAPHIC] [TIFF OMITTED] TN01NO23.003


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[GRAPHIC] [TIFF OMITTED] TN01NO23.004

    * Percentage change is based upon exact amounts reflected in the 
table, ``2024-2025 Proposed NCUA Operating Budget Summary''.
    ** Total staffing levels for 2024 and 2025 do not include five 
positions funded by the CLF.
    Total Staffing. The proposed 2024 Operating Budget includes 1,248 
positions.\3\ This is a net increase of 28 positions (11 new positions 
and 17 existing, unfunded positions being moved on budget) compared to 
the 2023 levels approved by the Board. Details of the proposed 
increases in positions are discussed later in this document.
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    \3\ This document reflects NCUA staffing levels as positions in 
order to simplify the presentation of current and proposed employee 
levels. At times in the past, the NCUA reflected budgeted staffing 
levels as full-time equivalents (FTEs), which is a presentation that 
accounts for staffing vacancies, part-time schedules, and other 
variability in employee levels.
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    Despite significant credit union asset growth, total NCUA staffing 
is still below the 2015 level, as shown in the following chart.

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[GRAPHIC] [TIFF OMITTED] TN01NO23.005

    Note: NCUA staffing in this chart excludes positions funded by the 
CLF.
    The Operating Budget estimate for 2025 is $418.9 million and 
includes 3 additional positions compared to the 2024 level.

[[Page 75046]]

Proposed 2025 Operating Budget Summary
[GRAPHIC] [TIFF OMITTED] TN01NO23.006

    * Percentage change is based upon exact amounts reflected in the 
table, ``2024-2025 Proposed NCUA Operating Budget Summary.''

Proposed 2024 Capital Budget: $7.3 Million

    The proposed 2024 Capital Budget is $4.0 million lower than the 
2023 Board-approved budget.
    The Capital Budget supports the NCUA's ongoing effort to modernize 
its information technology infrastructure and applications. Funding in 
the Capital Budget for upgrades to or replacement of obsolete 
information technology systems is lower in 2024 than in 2023, as is the 
2024 capital investment for continued enhancement of the Modern 
Examination and Risk Identification Tool (MERIT) examination system. 
Other information technology investments in the proposed 2024 Capital 
Budget include funds to ensure that agency systems comply with evolving 
cybersecurity requirements required of all federal agencies, 
enhancements to agency information security, upgrades to old legacy 
systems, and various hardware investments to refresh agency networks 
and ensure staff have the tools necessary to achieve the agency's 
mission.
    The Capital Budget also includes $477,000 for NCUA facility 
maintenance and improvements.

Proposed 2024 Share Insurance Fund Administrative Expenses: $5.1 
Million

    The proposed 2024 Share Insurance Fund Administrative Expenses 
Budget is $0.2 million higher than the 2023 Board-approved budget. The 
Share Insurance Fund Administrative Expenses Budget funds the tools and 
technology used by the Office of National Examinations and Supervision 
(ONES) to oversee credit union-run stress testing for the largest 
credit unions, travel for state examiners attending NCUA-sponsored 
training, audit support for the Share Insurance Fund's financial 
statements, and certain insurance-related expenses for Asset Management 
and Assistance Center (AMAC) operations.

II. Introduction and Strategic Context

History

    For more than 100 years, credit unions have provided financial 
services to their members. Credit unions are not-for-profit financial 
cooperatives created to serve a membership with a common bond.
    The Federal Credit Union Act will turn 90 years old in 2024. 
President Franklin Roosevelt signed the Federal Credit Union Act into 
law on June 26, 1934, in the midst of the Great Depression. The law's 
goal was to make credit available to Americans and promote thrift 
through a national system of nonprofit, cooperative credit unions.
    The NCUA is the independent federal agency established in 1970 by 
the U.S. Congress to regulate, charter, and supervise federal credit 
unions. With the backing of the full faith and credit of the United 
States, the NCUA operates and manages the National Credit Union Share 
Insurance Fund, insuring the deposits of the account holders in all 
federal credit unions and the vast

[[Page 75047]]

majority of state-chartered credit unions.
    As of June 30, 2023, the NCUA is responsible for the regulation and 
supervision of 4,686 federally insured credit unions, which have 
approximately 137.7 million members and more than $2.2 trillion in 
assets across all states and U.S. territories.\4\
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    \4\ Source: The NCUA quarterly call report data, Q2 2023.
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Authority

    Pursuant to the Federal Credit Union Act, authority for management 
of the NCUA is vested in the NCUA Board. It is the Board's 
responsibility to determine the resources necessary to carry out the 
NCUA's responsibilities under the Act.\5\ The Board is authorized to 
expend such funds and perform such other functions or acts as it deems 
necessary or appropriate in accordance with the rules, regulations, or 
policies it establishes.\6\
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    \5\ See 12 U.S.C. 1752a(a).
    \6\ See 12 U.S.C. 1766(i)(2).
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    Upon determination of the budgeted annual expenses for the agency's 
operations, the Board determines a fee schedule to assess federal 
credit unions. The Board gives consideration to the ability of federal 
credit unions to pay such a fee and the necessity of the expenses the 
NCUA will incur in carrying out its responsibilities in connection with 
federal credit unions.\7\ In December 2020, the Board approved a final 
rule with changes to its regulation and methodology for determining the 
operating fees due from federal credit unions.\8\ In July 2023, the 
Board requested comments from the public about changes to the 
methodology the Board uses to determine how it apportions operating 
fees, specifically the exemption threshold below which federal credit 
unions would not be required to pay the operating fee.\9\ The Board 
will consider public comments received by the due date specified in the 
Federal Register notice, and if the Board decides to revise the 
methodology for computing the operating fee, such changes will be 
reflected in future Board communications.
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    \7\ See 12 U.S.C. 1755(a)-(b).
    \8\ See https://www.govinfo.gov/content/pkg/FR-2020-12-31/pdf/2020-28490.pdf.
    \9\ See https://www.regulations.gov/document/NCUA-2023-0072-0001.
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    Pursuant to the law, fees collected are deposited in the agency's 
Operating Fund at the Treasury of the United States, and those fees are 
expended by the Board to defray the cost of carrying out the agency's 
operations, including the examination and supervision of federal credit 
unions.\10\ In accordance with its authority to use the Share Insurance 
Fund to carry out its insurance-related responsibilities, the Board 
approved an Overhead Transfer Rate methodology and authorized the 
Office of the Chief Financial Officer to transfer resources from the 
Share Insurance Fund to the Operating Fund to account for insurance-
related expenses.\11\
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    \10\ See 12 U.S.C. 1755(d).
    \11\ See 12 U.S.C. 1783(a).
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Mission, Goals, and Strategy

    The proposed budget for 2024-2025 supports the agency's third year 
implementing its 2022-2026 Strategic Plan. Throughout 2024 and 2025, 
the NCUA will continue fulfilling its mission of ``protecting the 
system of cooperative credit and its member-owners through effective 
chartering, supervision, regulation, and insurance.'' The agency's 
three strategic goals are:
    1. Ensure a safe, sound, and viable system of cooperative credit 
that protects consumers.
    2. Improve the financial well-being of individuals and communities 
through access to affordable and equitable financial products and 
services.
    3. Maximize organizational performance to enable mission success.
    The NCUA's strategic plan is the foundation for the agency's 
performance management and resource allocation processes. The annual 
performance plan functions as the agency's operational plan for each 
calendar year. It outlines the annual or short-term objectives, 
strategies, and corresponding performance goals and activities that 
contribute to the accomplishment of the agency's strategic goals. The 
NCUA budget provides the resources necessary for the agency to 
implement its strategic priorities and related programs and activities, 
to identify key challenges facing the credit union industry, and to 
leverage agency strengths to help credit unions address those 
challenges.
    Appendix A provides additional information about how the budget 
aligns to the NCUA's strategic goals.

Federal Compliance Costs

    As a federal agency, the NCUA is required to devote significant 
resources to numerous activities required by federal law, regulations, 
or, in some cases, Executive Orders. These requirements drive how many 
of the agency's activities are implemented and the associated costs. 
These compliance activities affect the level of resources needed in 
areas such as information technology acquisitions and management, human 
capital processes, financial management processes and reporting, 
privacy compliance, and physical and cybersecurity programs.

Financial Management

    Federal law, regulations, and government-wide guidance promulgated 
by the Office of Management and Budget (OMB), the Government 
Accountability Office (GAO), and the Department of the Treasury place 
numerous requirements on federal agencies, including the NCUA, 
regarding the management of public funds. Government-wide financial 
management compliance requirements address topics such as financial 
statement audits, improper payments, prompt payments, internal 
controls, and procurement audits, enterprise risk management, strategic 
planning, and public reporting of financial and other information.

Information Technology

    There are numerous laws, regulations, and required guidance 
concerning information technology used by the federal government. Many 
of the requirements cover information technology security, such as the 
Federal Information Security Modernization Act. Other requirements 
cover records management, paperwork reduction, acquisition, 
cybersecurity spending, accessible technology, and continuity.

Human Capital and Equal Opportunity

    Like other federal agencies, the NCUA is subject to an array of 
human capital-related laws, regulations, and other mandatory guidance 
issued by the Office of Personnel Management (OPM), the Equal 
Employment Opportunity Commission, and OMB. Human capital compliance 
requirements include procedures related to hiring, management 
engagement with public unions and collective bargaining, employee 
discipline and removal procedures, required training for supervisors 
and employees, employee work-life and benefits programs, equal 
employment opportunity and required diversity and inclusion programs, 
and storage and retention of human resource records. The NCUA is also 
required by law to maintain comparability with other federal bank 
regulatory agencies when setting and adjusting the total amount of 
compensation and benefits for employees.

Security

    The NCUA's security posture is driven by numerous legal and 
regulatory requirements covering the full range of security functions. 
The NCUA is

[[Page 75048]]

required to comply with mandatory requirements for personnel security, 
physical security, emergency management and continuity, communications 
and information security, and insider threat standards. In addition to 
meeting specific legislative mandates, as a federal agency the NCUA is 
required to follow guidance from, but not limited to, the Office of the 
Director of National Intelligence, the Department of Defense, OPM, and 
the Federal Emergency Management Agency.

Audits and Program Oversight

    The NCUA and its operations are subject to review by independent 
auditors. Like any other U.S. employer, the NCUA may be audited by the 
Internal Revenue Service for compliance with relevant tax laws and 
regulations. Similarly, the NCUA is subject to audit for compliance 
with government-wide requirements in areas like records management 
(National Archives and Records Administration) and delegated personnel 
authorities (OPM).
    Other oversight audits include the NCUA's financial statement 
audits, which must be conducted for all four of its funds on both an 
operating (calendar year) and reporting year (federal fiscal year) 
basis. In addition, to help ensure the agency's cybersecurity, the law 
subjects the NCUA to annual audits of its information technology 
systems and data management practices, as specified in the Federal 
Information Security Modernization Act.
    The Government Accountability Office and the NCUA Office of 
Inspector General (OIG) are statutorily authorized to oversee and audit 
the performance of NCUA's programs in order to identify and attempt to 
prevent waste, fraud, and abuse of public resources. Further, and in 
addition to programmatic audits that the OIG conducts each year, the 
NCUA OIG formally reviews all material losses to the National Credit 
Union Share Insurance Fund.

Other Compliance Activities

    The NCUA also has other general compliance activities that cross 
numerous offices and add to the NCUA's budget. For example, the NCUA is 
also required to comply with the Privacy Act, the Freedom of 
Information Act, the Government in the Sunshine Act, multiple laws and 
regulations related to government ethics standards, and various 
reporting, training, and other requirements set forth by the Federal 
Credit Union Act and other statutes. Additionally, the Dodd-Frank Wall 
Street Reform and Consumer Protection Act established requirements for 
the NCUA to administer and periodically report on various diversity-
related matters at the agency and within the credit union system.

III. Key Themes of the Proposed 2024-2025 Budget

Overview

    The proposed 2024-2025 budget includes funding for the NCUA to 
increase staffing in critical areas necessary to operate as an 
effective federal financial regulator capable of addressing emerging 
issues and responding to changes in economic conditions that may impact 
the credit union system.
    The percentage of insured shares in credit unions with composite 
CAMELS ratings 1 and 2 has been in decline since December 2021.\12\ 
Between the reporting periods of December 31, 2021, and June 30, 2023, 
credit unions with composite CAMELS 3 ratings and insured shares 
greater than $500 million increased from 15 to 42, and their collective 
assets increased from $11.3 billion to $47.7 billion--an increase of 
322%.
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    \12\ NCUA's composite CAMELS rating consists of an assessment of 
a credit union's Capital adequacy, Asset quality, Management, 
Earnings, Liquidity risk, and Sensitivity to market risk. The CAMELS 
rating system is designed to take into account and reflect all 
significant financial, operational and management factors field 
staff assess in their valuation of credit unions' performance and 
risk profiles. CAMELS ratings range from 1 to 5, with 1 being the 
best rating. Credit unions with a composite CAMELS rating of 3 
exhibit some degree of supervisory concern in one or more 
components. CAMELS 4 credit unions generally exhibit unsafe or 
unsound practices, and CAMELS 5 institutions demonstrate extremely 
unsafe or unsound practices and conditions. NCUA collectively refers 
to CAMELS 4 and 5 credit unions as ``troubled credit unions.''
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    The NCUA is seeing rising levels of interest rate and liquidity 
risk within the system. There has been an increase in compliance and 
fair lending concerns as well. There is also the potential for 
increased credit risk, especially among families with increasingly 
stressed household budgets and the post-pandemic uncertainties in the 
commercial real estate market. These risks can play out in rising 
delinquency rates for various loan types, including auto loans and 
credit cards.
    The NCUA must have the necessary resources to continue to monitor 
credit union performance and mitigate risks through the examination 
process, offsite monitoring, and tailored supervision, consistent with 
its mission.
    The NCUA employees are the agency's most valuable resource for 
achieving its mission, and the agency is committed to a workforce with 
integrity, accountability, transparency, inclusivity, and 
proficiency.\13\ The agency will continue investing in its workforce 
through training and development, ensuring employees have the skills 
they need to do their work effectively.
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    \13\ See https://ncua.gov/files/agenda-items/strategic-plan-20220317.pdf, page 6.
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    The proposed 2024-2025 budget includes investments across a range 
of agency priorities, including:
    <bullet> Ensuring robust cybersecurity in the credit union system 
and at the agency.
    <bullet> Recalibrating examination and supervisory oversight over 
credit unions with assets between $10 billion and $15 billion to 
reflect risks.
    <bullet> Adding new regional specialist examiners dedicated to 
areas of emerging complexity and risk within the credit union system 
such as electronic payment systems, consumer compliance, and Bank 
Secrecy Act (BSA) compliance.
    <bullet> Improving financial inclusion and access through the 
NCUA's Advancing Communities through Credit, Education, Stability, and 
Support initiative.
    <bullet> Providing program and staff resources to increase 
assistance to small credit unions and credit unions designated as 
minority depository institutions (MDIs).
    <bullet> Right-sizing the NCUA's examination of credit unions' 
compliance with consumer financial protection laws and regulations.
    <bullet> Investing in information technology systems and 
infrastructure to bolster the agency's supervisory capabilities.
    The efficiency and effectiveness of the agency's workforce depends 
upon the availability of modern analytical tools and the resiliency of 
the NCUA's information technology systems. The NCUA is committed to 
implementing its new technology responsibly and delivering secure, 
reliable, and innovative solutions. The investments funded in the 
NCUA's Capital Budget will provide the tools and technology the 
workforce needs to achieve the NCUA mission.

Cybersecurity

    The NCUA's cybersecurity program focuses on two main efforts: 
supervision of credit union cybersecurity programs and protection of 
the agency's systems, assets, data, and mission capabilities.
    Cyberattacks continue to pose significant risks to all 
organizations. Because of continued attacks on the nation's financial 
sector and the broader national critical infrastructure, the NCUA 
places credit union cybersecurity as a top enterprise and supervisory 
priority.

[[Page 75049]]

Supervision of Credit Union Cybersecurity

    The NCUA engages in interagency cybersecurity preparedness as a 
member of the Federal Financial Institutions Examination Council 
(FFIEC) and of the Financial and Banking Information Infrastructure 
Committee. The NCUA monitors cyber threats identified by federal and 
non-federal sources and shares relevant information about them with the 
credit union industry and financial sector partners.
    The NCUA maintains a team within the Office of Examination and 
Insurance dedicated to developing and maintaining supervisory policies, 
procedures, and tools and examiner training for cybersecurity. The 
regions and the Office of National Examinations and Supervision employ 
30 highly trained regional information security specialists for 
information security examinations and supervision of credit unions.
    In 2023, the agency deployed an updated information security 
examination program. All credit unions will periodically receive an 
information security examination as part of the agency's new 
Information Security Examination Program (ISEP). The ISEP uses a risk-
focused approach to examine credit unions' information security, 
providing examiners flexibility to focus on areas of material current 
or potential risk relevant to each credit union's unique business 
model. The objectives of an information security examination include:
    <bullet> Evaluating management's ability to recognize, assess, 
monitor, and manage information systems and technology-related risks.
    <bullet> Assessing whether the credit union has sufficient 
expertise to adequately plan, direct, and manage information systems 
and technology operations.
    <bullet> Determining whether the board of directors has adopted and 
implemented adequate information systems and technology-related 
policies and procedures.
    <bullet> Evaluating the adequacy of internal information systems 
and technology controls and oversight to safeguard member information.
    The NCUA built and maintains the Automated Cybersecurity Evaluation 
Toolbox (ACET) to help credit unions voluntarily assess their level of 
cybersecurity preparedness. The tool incorporates appropriate 
cybersecurity standards and practices established for financial 
institutions. The tool maps each of its declarative statements to the 
practices found in the FFIEC Information Technology Examination 
Handbook, regulatory guidance, and leading industry standards like the 
National Institute of Standards and Technology's Cybersecurity 
Framework. The ACET also provides a plain-language explanation and 
references for each of the statements included within the assessment.
    Enhanced and continuing examiner training related to information 
security and evolving cyber risks is planned for 2024.

Protection of the Agency's Information and Systems

    The NCUA's approach to agency cybersecurity is based on 
requirements established by federal statute such as the Federal 
Information Security Management and Federal Information Security 
Modernization Acts, and government-wide policy such as the National 
Institute of Standards and Technology's Cybersecurity Framework, and 
Executive Order 14028, Improving the Nation's Cybersecurity. The 
proposed 2024 budget includes over $20 million for the cost of 
compliance with and implementation of these requirements, of which $4.3 
million is budgeted for capital investments. It is important to note 
that many government cybersecurity requirements are not necessarily 
expected of non-governmental entities; however, as a federal agency the 
NCUA is obligated to carry them out.

Examination Workforce

    In 2021, a cross-agency working group at the NCUA conducted an 
internal review to determine the appropriate level of specialist 
positions required to ensure compliance with the Bank Secrecy Act (BSA) 
and consumer financial protection laws and regulations. The review 
evaluated staffing needs for three potential regional specialist groups 
in the areas of electronic payment systems, consumer compliance, and 
the BSA. Unlike other specialist areas where credit union asset size is 
a reasonable basis for allocating supervisory resources, BSA and 
consumer compliance risks are not necessarily concentrated in a 
particular asset group.
    The 2021 review recommended that the agency develop BSA and 
consumer compliance specialist programs. The proposed 2024 budget 
supports the second phase of this effort by adding 27 new regional 
examination staff--including specialists and supervisory positions. 
These specialist positions are offset by a reduction of general 
examiner positions spread across each of the NCUA's three regions.
    Starting in January 2023, federally insured credit unions with less 
than $15 billion in total assets generally are supervised by the NCUA 
regional office corresponding to their headquarters location, while 
ONES continues supervising federally insured credit unions with $15 
billion or more in total assets. Supervising regional large credit 
unions with between $10 billion and $15 billion in assets requires 
additional resources for the regions. Therefore, the proposed 2024 
budget includes the equivalent of five additional examiner positions to 
account for the enhanced examination and supervision needs for these 
institutions related to size, scale, and scope.

Support for Small Credit Unions and Minority Depository Institutions

    Small credit unions with less than $100 million in assets and MDIs 
are uniquely positioned to improve financial inclusion by offering 
their communities access to safe and affordable credit and other 
services. The NCUA's Small Credit Union and MDI Support Program is 
designed to support and preserve these credit unions. This program 
provides dedicated resource hours for field staff to conduct this 
important work, and the proposed 2024 budget continues to support this 
important effort.
    Program assistance focuses on identifying available resources, 
providing training and guidance, and supporting credit union management 
in their efforts to address operational matters. Additional benefits of 
the program are expected to include:
    <bullet> Building greater awareness of the unique needs of small 
credit unions and MDIs and their role serving underserved communities.
    <bullet> Expanding opportunities for these credit unions to receive 
support through NCUA grants, training, and other initiatives.
    <bullet> Furthering partnerships with organizations and industry 
mentors that can support small credit unions and MDIs.

Fair Lending and Consumer Financial Protection

    Fair and equitable access to credit is vital to the credit union 
system and members of credit unions. The NCUA uses onsite examinations, 
supervision contacts, and data analysis to ensure credit unions comply 
with consumer financial protection and fair lending laws and 
regulations. The proposed 2024 budget includes 13 additional regional 
consumer compliance specialists and an increase in examination time for 
consumer

[[Page 75050]]

financial protection reviews equivalent to 11 examiners to increase the 
agency's review of consumer financial protection and fair lending laws 
and regulations, especially at institutions with greater consumer 
impact or indications of potential violations.

Financial Inclusion

    Credit unions are an important part of the financial services 
industry and can play a key role in helping families achieve financial 
freedom by building generational wealth, helping entrepreneurs to get 
their small businesses off the ground, and helping to create jobs and 
strengthen communities. The NCUA has a role to play in making sure that 
credit unions can support overlooked or underserved areas.
    The NCUA will build on the work done in 2023 to better understand 
credit union challenges and opportunities in providing fair and 
affordable financial products to minority, unbanked, and underbanked 
households. The Innovation and Access and CURE teams plan to use this 
information to help credit unions understand the challenges in 
communities with limited financial services and to enhance and 
facilitate the Small Credit Union and MDI Support program. The NCUA 
will continue its active engagement with credit union industry leaders 
and stakeholders to help new, small, low-income-designated, and MDI 
credit unions to grow and prosper.

NCUA Organizational Changes

    The staff draft budget proposes a new Office of the Executive 
Secretary, which is a common function in many other federal agencies. 
The new office will centralize responsibility for the NCUA's policy 
review and decision-making processes, coordinate the clearance and 
submission of all policy documents to the Chairman and the NCUA Board, 
as appropriate, for review and approval, and facilitate discussions 
between the NCUA's program offices to align appropriate policies, among 
other things. Policy documents include regulations, recommendation 
memos, action memos, briefing memos, responses to correspondence, 
reports to Congress, and other policy documents. Appendix A includes a 
separate table illustrating the budget for the proposed Office of the 
Executive Secretary.

IV. Operating Budget

Overview

    The NCUA Operating Budget provides the resources required for the 
agency to conduct activities prescribed by the Federal Credit Union 
Act. These mandates include: (1) chartering new federal credit unions; 
(2) approving field of membership applications of federal credit 
unions; (3) promulgating regulations and providing guidance; (4) 
performing regulatory compliance and safety and soundness examinations; 
(5) implementing and administering enforcement actions, such as 
prohibition orders, orders to cease and desist, orders of 
conservatorship and orders of liquidation; and (6) administering the 
National Credit Union Share Insurance Fund. The NCUA must also 
implement mandates required by other statutes including those related 
to BSA compliance, consumer financial protection, and diversity, 
equity, and inclusion.

Operating Budget Categories

    There are five major expenditure categories in the Operating 
Budget. This section explains how these expenditures support the NCUA's 
operations and presents a transparent overview of the Operating Budget.
[GRAPHIC] [TIFF OMITTED] TN01NO23.007

Pay and Benefits

    Pay and benefits increase by $26.2 million in 2024, or 9.8 percent 
compared to 2023, for a total of $293.3 million. Pay and benefits costs 
make up approximately 76.7 percent of the annual NCUA Operating Budget. 
There are four primary drivers of increased costs in 2024 for the pay 
and benefits category:
    <bullet> Merit and locality pay increases for the NCUA's employees 
are paid in accordance with the agency's Collective Bargaining 
Agreement (CBA) and its merit-based pay system.
    <bullet> Contributions for employee retirement to the Federal 
Employee Retirement System (FERS), which are set by OPM based on 
actuarial estimates and cannot be negotiated or changed by the NCUA. 
The mandatory FERS contribution rate increases total NCUA benefits 
costs by 4.9 percent in 2024 compared to 2023. OPM's current 
assumptions for actuarial valuation of FERS remain unchanged in 2024 
but remain a significant cost driver for the agency's pay and benefits 
growth. Because the NCUA must contribute 18.4 percent of employee 
salaries to the retirement fund in 2024, the estimated impact on the 
NCUA budget is an increase of approximately $4.0 million in mandatory 
payments.
    <bullet> Contributions for employee health insurance are also set 
by OPM and

[[Page 75051]]

cannot be negotiated or changed by the NCUA. This mandatory 
contribution increases total NCUA benefits costs by 2.1 percent in 2024 
compared to 2023. The annual OPM estimate for the 2024 government share 
of the Federal Employees Health Benefits Program (FEHBP) premiums is 
expected to be released in October 2023, and the budget will be updated 
if there is any material change to estimated FEHBP costs.
    <bullet> The employee salary and benefits category also includes 
costs associated with other mandatory employer contributions such as 
Social Security, Medicare, transportation subsidies, unemployment, and 
workers' compensation. The limit on employee earnings subject to Social 
Security taxes increased in 2024 and applies to all employers in the 
United States. The projected additional employer Social Security 
contributions that result from this increase account for approximately 
3 percent of the total adjustment to employee salaries.
    Attracting a well-qualified workforce requires the agency to pay 
competitive salaries. In 2024, the NCUA's compensation levels will 
continue to ``maintain comparability with other federal bank regulatory 
agencies'' as required by the Federal Credit Union Act.\14\ More than 
85 percent of the NCUA workforce has earned a bachelor's degree or 
higher, compared to approximately 35 percent of the private-sector 
workforce.
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    \14\ The Federal Credit Union Act states that, ``In setting and 
adjusting the total amount of compensation and benefits for 
employees of the Board, the Board shall seek to maintain 
comparability with other federal bank regulatory agencies.'' See 12 
U.S.C. 1766(j)(2).
---------------------------------------------------------------------------

    The pay and benefits budget includes all employee pay raises for 
2024, such as merit and locality increases consistent with the CBA in 
place for 2023, and those for promotions, reassignments, and other 
changes, as described below. Consistent with other federal pay systems, 
the NCUA's compensation includes base pay and locality pay components.
    The proposed 2024 Operating Budget supports a total agency staffing 
level of 1,248 positions.\15\ This is a net increase of 28 positions, 
or 2.3 percent, compared to the agency's 2023 staffing level. The net 
increase includes 11 new positions and incorporates into the 2024 
budget 17 existing positions currently unfunded in the 2023 budget. The 
first-year cost of the 11 net new positions for 2024 is estimated to be 
approximately $1.9 million. The cost for 2024 of the 17 existing 
positions currently unfunded is estimated to be approximately $4.0 
million.
---------------------------------------------------------------------------

    \15\ Does not include five positions assigned to the Central 
Liquidity Facility.
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    The proposed 2024-2025 budget includes funding for the NCUA to 
increase permanent staffing in critical areas necessary to operate more 
effectively and address emerging issues. The staffing levels proposed 
for 2024 also reflect the resource requirements that support the NCUA's 
continued efforts to ensure its examination processes keep pace with 
the growing scale and complexity of the credit union system while the 
agency enhances the efficiency and effectiveness of its supervisory 
efforts.
    The chart illustrates the NCUA's staffing levels in recent 
years.\16\
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    \16\ The 2024-2025 budget reflects NCUA staffing levels as 
positions to simplify the presentation of current and proposed 
employee levels. In past years, the NCUA reflected budgeted staffing 
levels as full-time equivalents (FTEs), which is a presentation that 
accounts for vacant positions, part-time work, and other variability 
in employee levels. Although the actual number of persons employed 
at the NCUA varies throughout the year, using the count of positions 
is simpler.
[GRAPHIC] [TIFF OMITTED] TN01NO23.008

    Note: Total NCUA staffing excludes positions funded by the CLF.
    The proposed changes for the NCUA's 2024 staffing level include:
    <bullet> Adding 27 specialist examiner and specialist supervisor 
positions to the NCUA regional staff, 20 of which the

[[Page 75052]]

NCUA Board approved as part of the 2023-2024 budget and an additional 
seven related to enhanced consumer financial protection examinations. 
The number of large, complex credit unions continues to increase 
through mergers and membership growth, which necessitates a broader 
array of experts in the field to support the examination and 
supervision of these institutions.
    <bullet> Reducing the number of generalist examiners by a net of 22 
positions across the NCUA's three regional offices. This adjustment 
includes an increase to examination and supervision time that is the 
equivalent of five examiner positions for the regional workload 
associated with overseeing credit unions with between $10 billion and 
$15 billion in assets.\17\
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    \17\ Starting in January 2023, federally insured credit unions 
with less than $15 billion in total assets generally are supervised 
by the NCUA region corresponding to the location where they are 
chartered, while the Office of National Examinations and Supervision 
(ONES) continues supervising federally insured credit unions with 
$15 billion or more in total assets.
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    <bullet> Creating a new Office of the Executive Secretary with two 
dedicated staff positions authorized for 2024 and a third position for 
2025. This office will centralize responsibility for coordinating the 
review of documents, related decision-making processes, and the 
clearance and submission of all documents to the NCUA Board members, as 
appropriate.
    <bullet> Increasing the staff in the Office of the Ombudsman by one 
position. The Office of the Ombudsman was created as a separate office 
by the NCUA Board in the 2023 budget and an additional Associate 
Ombudsman position was approved for 2024 in that document.
    <bullet> Adding two Deputy Director positions: one in the Office of 
Business Innovation and one in the Office of the Chief Ethics Counsel.
    <bullet> Adding one new writer-editor position in the Office of 
External Affairs and Communications.
    <bullet> Funding 17 positions previously unfunded but authorized 
within the total NCUA staffing plan. These positions include: four in 
the Office of National Examinations and Supervision, three in the 
Office of Examination and Insurance, two in the Office of Business 
Innovation, two in the Office of Credit Union Resources and Expansion, 
two in the Office of Human Resources, one in the Office of the Chief 
Financial Officer, one in the Office of the Chief Information Officer, 
one in the Office of Consumer Financial Protection, and one in AMAC.
    The proposed 2025 budget for pay and benefits is estimated at 
$308.2 million, a $14.9 million increase from the 2024 level. Included 
within this total is the full-year cost impact of new positions 
proposed for 2024 (approximately $0.8 million), $0.2 million for three 
new positions (one in the Office of the Executive Secretary, one in the 
Office of General Counsel, and one in the Office of Continuity and 
Security Management), the estimated merit and locality pay increases 
consistent with the recent pay inflation (approximately $10.6 million), 
and associated increases in benefits for all employees (approximately 
$3.3 million).

Travel

    The proposed travel budget decreases slightly by $5,000 in 2024 
when compared to 2023, for a total of $22.0 million. The travel cost 
category includes expenses for employees' airfare, lodging, meals, auto 
rentals, reimbursements for privately owned vehicle usage, and other 
travel-related expenses. These are necessary expenses for examiners' 
onsite work in credit unions. Close to two-thirds of the NCUA's 
workforce is comprised of field staff who spend part of their time 
traveling to conduct the examination and supervision program. The NCUA 
staff also travel for routine and specialized training and other work 
assignments. In 2024, the NCUA expects its staff will participate in a 
combination of in-person and virtual training to help control travel 
expenses.
    During the COVID-19 pandemic, the agency and its employees 
transitioned to an offsite examination posture, developing new 
procedures and processes to continue examination and supervisory work. 
In 2024, the NCUA continues the process of conducting portions of 
examinations offsite, which is expected to constrain the growth of 
future travel budgets. Despite significant inflationary cost growth in 
travel-related expenses such as hotel charges, airfares, and car 
rentals, the 2024 budget for travel does not grow compared to the 2023 
level, given a lower frequency of travel with more work being conducted 
virtually compared to pre-pandemic levels.
    The proposed 2025 budget for travel is estimated to be $23.9 
million, or an 8.6 percent increase compared to the 2024 level. This 
budget level reflects an expectation for modest travel-related cost 
inflation and travel to support a national training conference planned 
for 2025.

Rent, Communications, and Utilities

    The proposed budget for rent, communications, and utilities 
increases by $0.8 million in 2024, or 13 percent compared to 2023, for 
a budget of $7.1 million. The 2024 increase is driven almost entirely 
by the costs required to stand up new disaster recovery and continuity 
of operations sites because the previous location for these required 
functions will be decommissioned at the end of 2023.
    Funding in this budget category pays for facilities costs, 
telecommunications services, data storage, and information technology 
network support. Telecommunications charges include leased data lines, 
domestic and international voice lines (including mobile), and other 
network charges. Telecommunications costs also include the circuits and 
any associated usage fees for providing voice or data 
telecommunications service between data centers, office locations, the 
internet, and any customer, supplier, or partner.
    The rent, communications, and utilities budget category also 
finances the cost of the office utilities, meeting space rental for 
offsite events, and postage expenses. Lease costs for the Southern and 
Western Region office buildings are included in this category, and the 
total for both of these leases is approximately $1.3 million in 2024. 
The annual utility costs for the headquarters and regional offices are 
estimated at $461,000 for 2024.
    The proposed 2025 budget for the rent, communications, and 
utilities category is $7.5 million, or a 5.6 percent increase compared 
to 2024.

Administrative Expenses

    Administrative expenses a proposed increase of $0.3 million in 
2024, or 4.4 percent compared to 2023, for a budget of $7.6 million. 
The increase to the administrative expenses budget category largely 
results from inflationary cost increases for supplies, materials, 
printing, and subscription expenses expected in 2024.
    Recurring costs in the administrative expenses category include the 
annual reimbursements to the FFIEC, employee relocation expenses, 
recruitment and advertising expenses, shipping, printing, 
subscriptions, examiner training and meeting supplies, office 
furniture, and employee supplies and materials. As part of the FFIEC, 
the NCUA shares in costs for certain joint actions and services that 
affect the financial services industry. The proposed 2024 draft budget 
includes an estimated increase of $340,000 to the FFIEC annual 
reimbursement. Any revisions to this initial estimated budget will be 
included in the NCUA's final 2024 budget.

[[Page 75053]]

    Within administrative expenses, the proposed 2024 budget includes 
$1.3 million for employee relocations, which is consistent with the 
2023 funding levels. Relocation costs are paid by the NCUA to employees 
who are competitively selected for a promotion or new job within the 
agency in a different geographic area than where they live.
    The proposed 2025 budget for administrative expenses is $7.7 
million, or a 1.6 percent increase from the level proposed in the 2024 
budget.

Contracted Services

    The proposed budget for contracted services increases by $10.7 
million in 2024, or 25.7 percent compared to 2023, for a total budget 
of $52.1 million.\18\ This increase reflects a combination of 
inflationary pressures on the cost of contracted services and 
additional initiatives described in more detail later in this document.
---------------------------------------------------------------------------

    \18\ The total budget for Contracted Services in 2024 before 
offsets of prior year unspent funds is estimated to be $70.1 
million.
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    Contracted services funding pays for products and services acquired 
in the commercial marketplace and includes critical mission support 
services such as information technology hardware and software support, 
accounting and auditing services, and specialized subject matter 
expertise. The majority of funding in the contracted services category 
supports the NCUA's supervision framework, including tools used to 
identify and address risk concerns such as interest rate risk, credit 
risk, and industry concentration risk. Further, funding within 
contracted services is used to address new and evolving operational 
risks such as cybersecurity threats.
    Acquiring specific expertise or services from contract providers is 
often the most cost-effective way for the NCUA to accomplish its 
mission. Such services include critical mission support such as 
information technology equipment and software development, accounting 
and auditing services, and specialized subject matter expertise that 
enable staff to focus on executing core mission requirements.
    Growth in the contracted services budget category results primarily 
from new operations and maintenance costs associated with capital 
investments. Other costs include core agency business operation systems 
such as accounting and payroll processing, and various recurring costs, 
as described in the following seven major categories:
    <bullet> Information Technology Operations and Maintenance (48.1 
percent of contracted services)
    [cir] Information technology network support services and help desk 
support
    [cir] Contractor program and web support and network and equipment 
maintenance services
    [cir] Administration of software products such as Microsoft Office, 
SharePoint, and audio-visual services
    <bullet> Administrative Support and Other Services (16.7 percent of 
contracted services)
    [cir] Examination and supervision program support
    [cir] Technical support for examination and cybersecurity training 
programs
    [cir] Equipment maintenance services
    [cir] Legal services and other expert consulting support
    [cir] Other administrative mission support services for the NCUA 
central office
    <bullet> Information Technology Security (15.0 percent of 
contracted services)
    [cir] Enhanced secure data storage and operations
    [cir] Information security programs
    [cir] Security system assessment services
    <bullet> Accounting, Procurement, Payroll, and Human Resources 
Systems (6.5 percent of contracted services)
    [cir] Accounting and procurement systems and support
    [cir] Human resources, payroll, and employee services
    [cir] Equal employment opportunity and diversity programs
    <bullet> Training (5.3 percent of contracted services)
    [cir] Technical and specialized training and professional 
development for staff
    <bullet> Building Operations, Maintenance, and Security (4.8 
percent of contracted services)
    [cir] Headquarters facility operations and maintenance
    [cir] Building security and continuity programs
    [cir] Personnel security and administrative programs
    <bullet> Audit and Financial Management Support (3.5 percent of 
contracted services)
    [cir] Annual audit support services
    [cir] Material loss reviews
    [cir] Investigation support services
    [cir] Financial management support services
    In addition, the Office of the Chief Financial Officer projects 
that the agency will have a smaller surplus at the end of 2023 than in 
past years. Since 2021, the NCUA has used unspent budget amounts from 
previous years to reduce its budget levels in the following year. Of 
the total $10.7 million increase in contracted services for 2024, 
approximately $5.0 million of the increase results from a lower surplus 
projection than the amount assumed for 2023. The NCUA estimates that 
the agency will end 2023 having underspent the Board-approved budgets 
(current and prior years) by approximately $18.0 million. The proposed 
2024 budget uses the $18.0 million projected surplus to offset the 
costs of planned contracted services spending in 2024, reducing the 
agency's overall 2024 budget by the same amount. Therefore, the total 
planned amount for contracted services in 2024 is approximately $70.1 
million, an increase of $5.5 million, or 8.4 percent compared to the 
total 2023 spending level.
    The following pie chart illustrates the breakout of the seven 
categories for the total proposed 2024 contracted services budget of 
$70.1 million, of which $18.0 million is funded from prior year 
available balances.

[[Page 75054]]

[GRAPHIC] [TIFF OMITTED] TN01NO23.009

    Note: Minor rounding differences may occur in totals.
    Major programs within the contracted services category include:
    <bullet> Training requirements for the examiner workforce. The 
NCUA's most important resource is its highly educated, experienced, and 
skilled workforce. It is important that staff have the proper 
knowledge, skills, and abilities to perform assigned duties and meet 
emerging needs. Each year, examiners complete a wide range of training 
classes to ensure their skills and industry knowledge are kept up to 
date, including in core areas such as capital markets, consumer 
compliance, and specialized lending. Major training deliverables for 
2024 include examiner training development, including subject matter 
expert conferences, and a planned leadership forum for all the NCUA's 
executives and managers. The NCUA continues to control training costs 
with a blended schedule of both in-person and virtual sessions.
    Contracted service providers, in partnership with the NCUA subject 
matter experts, will develop and design training classes for examiners 
and continue the ongoing review of the NCUA's examiner course 
curriculum. In addition, the NCUA partners with OPM to develop and 
certify principal examiner assessments that reflect current regulations 
and examination processes. The NCUA's Learning Management System will 
continue to be updated to include a Career Resource Center. 
Additionally, contracted service providers and central office staff 
will continue providing organizational development, leadership 
development programs, and teambuilding training.
    <bullet> Information security program. This NCUA program supports 
ongoing efforts to strengthen the agency's cybersecurity and ensure its 
compliance with the Federal Information Security Modernization Act and 
other standards for federal agencies.
    <bullet> Agency financial management services, human resources 
technology support, and payroll services. The NCUA contracts for these 
back-office support services with the U.S. Department of 
Transportation's Enterprise Service Center (DOT/ESC) and the General 
Services Administration. The NCUA's human resource system, HR Links, 
also adopted by other federal agencies, is a shared solution that 
automates routine human resource tasks and improves time and attendance 
functionality.
    <bullet> Audit. The NCUA's OIG contracts with an accounting firm to 
conduct the annual audit of the agency's four permanent funds. The 
results of these audits are posted annually on the NCUA website and are 
included as part of the agency's Annual Report.
    A significant share of the budget for contracted services finances 
ongoing information technology infrastructure support for the agency. 
The 2024 budget includes the fourth year of funding for operations and 
maintenance of the MERIT system, which replaced the legacy Automated 
Integrated Regulatory Examination System (AIRES) in 2021. Several of 
the NCUA's other core information technology systems and processes also 
require additional contract support in 2024, which results in increased 
costs for contracted services, as described below.
    Within the budget for the Office of Chief Information Officer, an 
additional $3.5 million compared to the 2023 budget level is required 
for:
    <bullet> Cybersecurity capabilities and implementing the provisions 
of Executive Order 14028, Improving the Nation's Cybersecurity.
    <bullet> Information technology infrastructure services and 
operations and maintenance labor support for the new MERIT system and 
NCUA legacy systems.
    <bullet> Application tools that support the new MERIT system and 
other mission critical and business applications.
    Within the Office of Human Resources, the contracted services 
budget increases by $1.3 million compared to the 2023 budget level, 
primarily for additional resources to support the reasonable 
accommodation needs and services for current and potential new 
employees.
    The Office of Minority and Women Inclusion's (OMWI) contract budget 
increases by $258,000 compared to the 2023 budget level. In 2024, these 
increased funds will support development of a survey administered by a 
third-party for credit unions to self-assess their current diversity 
and inclusion practices.
    Within the Office of Business Innovation, the contracted services 
budget increases by $208,078 compared

[[Page 75055]]

to the 2023 budget level. These funds will provide contract support for 
the agency's information system security processes and fund a survey 
administered by a third party about credit unions' examination 
experiences.
    The Asset Management Assistance Center's contracted services budget 
increases by $149,000 compared to the 2023 budget level. These funds 
will support the development of tools to automate various business 
processes and connect AMAC data with systems.
    Within the Office of General Counsel, the contracted services 
budget increases by $65,000 compared to the 2023 budget level. The 
increase will support market research in 2024 for an appropriate e-
Discovery solution to ensure the agency sufficiently meets its legal 
obligations to respond to electronic discovery requests.
    The proposed contracted services budget for 2025 is $71.6 million. 
Excluding the $18.0 million carryover in 2024, this is a net increase 
of $1.4 million, or approximately 2.0 percent.

V. Capital Budget

Overview

    Annually, the NCUA carries out a rigorous review process to 
identify the agency's needs for information technology, facility 
improvements and repairs, and other multi-year capital investments. The 
NCUA staff review the agency's inventory of information technology 
systems, information technology hardware, and owned facilities and 
equipment to determine what requires repair, major renovation, or 
replacement. The staff then make recommendations for prioritized 
investments to the NCUA Board.
    The proposed 2024 Capital Budget is $7.3 million. The Capital 
Budget funds the NCUA's long-term investments. The 2024 Capital Budget 
provides $6.8 million for information technology development projects 
and investments and $477,000 for central office building minor 
construction and maintenance projects.
    Information technology systems and hardware require significant 
capital expenditures for modern organizations. The 2024 Capital 
Budget's highest priorities include continuing investments to bolster 
the NCUA's cybersecurity posture and enable the agency to comply with 
Executive Order 14028 along with enhancements to the MERIT platform.
    The budget also supports ongoing efforts to modernize the NCUA's 
information technology infrastructure and applications through the 
Information Technology Infrastructure, Platform and Security Refresh 
project, and makes investments to improve the agency's management and 
analysis of data through the Data Collection and Sharing Solution 
project. Finally, the 2024 Capital Budget supports two multi-year 
projects: one to develop a personnel security system in compliance with 
the Trusted Workforce 2.0 directive from the Office of the Director of 
National Intelligence and OPM and another to use technology to 
streamline and automate NCUA processes for reviewing field of 
membership and new charter requests from credit unions and organizing 
groups.
    Routine repairs and lifecycle-driven property renovations are also 
necessary to properly maintain investments in the NCUA-owned 
properties. Each year the NCUA assesses the physical condition of the 
agency's properties to determine the need for essential repairs, 
replacement of building systems that have reached the end of their 
engineered lives, or renovations required to support changes in the 
agency's organizational structure or address revisions to building 
standards and codes. The 2024 Capital Budget includes funding for the 
costs associated with routine repairs, maintenance, and lifecycle-
driven property renovations for the agency's Alexandria headquarters. 
Following an assessment and recommendations presented to the Board, a 
decision was made to sell the NCUA-owned office building in Austin. 
Because the specific schedule for selling the building is still to be 
determined, proceeds from this transaction are not factored into the 
2024 budget.
[GRAPHIC] [TIFF OMITTED] TN01NO23.010

    Detailed descriptions of all proposed 2024 capital projects, 
including a discussion of how each project helps the agency achieve its 
goals and objectives, are provided in Appendix B.

Summary of Capital Projects

Executive Order on Improving the Nation's Cybersecurity ($2.4 Million)

    The purpose of this capital investment is to ensure the NCUA 
complies with Executive Order 14028, Improving the Nation's 
Cybersecurity. The project will ensure the NCUA achieves and maintains 
various capabilities, including use of multi-factor authentication, a 
zero-trust architecture, and cloud-based compute and storage resources.

Information Technology Infrastructure, Platform, and Security Refresh 
($1.3 Million)

    This capital project will replace outdated or end-of-life network 
and platform hardware, as well as continue efforts to prepare the NCUA 
for cloud computing adoption. This investment helps ensure business 
continuity and efficient operations by improving system availability 
and stability. Proposed projects for 2024 include refreshing hardware 
and software, and the acquisition costs associated with the agency's 
new disaster recovery site.

CURE Process Automation ($1.1 Million)

    This capital investment supports the development of initial 
requirements and scoping to design an external facing portal for credit 
unions and organizing groups to submit their field of membership and 
new charter requests.

[[Page 75056]]

Onboarding/Offboarding Solution and Personnel Security Case Management 
System ($0.6 Million)

    The purpose of this project is to develop a new personnel security 
management system for NCUA in compliance with the Trusted Workforce 2.0 
directive promulgated by the Office of the Director of National 
Intelligence (ODNI) and OPM. This new system will centralize personnel 
security case management and serve as a repository for agencywide 
onboarding/offboarding actions.

Examination and Supervision Solution/MERIT Enhancements ($0.5 Million)

    Investments in the MERIT platform in 2024 will enhance data 
processing capacity, improve user efficiency and productivity, and 
automate data import and error checking processes. Capital investments 
will support MERIT improvements that will allow examiners to import 
data from the Information Security Examination (ISE) Toolbox, provide a 
centralized mechanism for regional and central office staff to track 
and access credit union administrative action records, and automate the 
process for state supervisory authority/credit union access requests.

Microsoft Power Platform ($0.5 Million)

    This capital investment will support NCUA adoption of the Microsoft 
Power Platform (MPP) line of business intelligence and process 
automation tools. The budget funds the acquisition of professional 
services to assist in developing a governance plan to monitor and 
manage the usage of MPP tools across the NCUA while providing enhanced 
internal agency customer support.

Data Collection and Sharing Solution ($0.2 Million)

    This multi-year project will assist NCUA examination staff by 
streamlining business process related to case, document, and content 
management to improve efficiency and decrease data entry errors. During 
2023, a prototype was developed that automated current business 
workflows and streamlined data collection and sharing. The proposed 
2024 Capital Budget supports pilot testing of the prototype among a 
subset of offices, integrating lessons learned into refined business 
requirements, drafting user guides and training materials, and 
conducting training for end users.

NCUA Website Development ($0.1 Million)

    This project provides for ongoing improvements to the NCUA's 
websites, such as an improved user experience and general maintenance 
needs. In addition, the NCUA will develop a gated content solution for 
specific audiences to provide a level of privacy and security for 
accessing information, such as conference materials, by requiring a 
login and password similar to other remote and virtual conference 
systems.

Headquarters Building Minor Construction and Maintenance Projects ($0.5 
Million)

    The proposed 2024 budget supports the NCUA's multi-year 
headquarters building improvement plan that identifies projects that 
can be completed incrementally, prioritizing the replacement of health 
and safety infrastructure such as the fire suppression system. The 
building is 30 years old, and many original components require 
replacement. The ongoing multi-year approach recognizes the critical 
building management and maintenance needs while reducing the potential 
budgetary impact of such projects in a single budget year.

VI. Share Insurance Fund Administrative Expenses Budget

Overview

    The Share Insurance Fund Administrative Expenses Budget funds 
direct costs associated with authorized Share Insurance Fund 
activities.\19\ Direct costs to the Share Insurance Fund include items 
such as data subscriptions and technology tools for ONES' analysis of 
large credit unions, travel for state examiners attending NCUA-
sponsored training, and audit support for the Share Insurance Fund's 
financial statements. Beginning in 2023, the NCUA Board approved 
certain insurance-related expenses for AMAC operations as part of the 
Share Insurance Fund Administrative Budget.
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    \19\ Direct costs do not include any costs that are shared with 
the Operating Fund through the Overhead Transfer Rate, and with 
payments available upon requisition by the Board, without fiscal 
year limitation, for insurance under section 1787 of this title, and 
for providing assistance and making expenditures under section 1788 
of this title in connection with the liquidation or threatened 
liquidation of insured credit unions as it may determine to be 
proper.
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    The Share Insurance Fund Administrative Expenses Budget also pays 
for costs associated with the corporate resolution program and related 
NCUA Guaranteed Notes (NGN) program. On June 14, 2021, the last 
outstanding NGN Trust matured. Given the significantly reduced size of 
the legacy asset portfolio in the corporate asset management estates, 
the proposed 2024 budget for the corporate resolution program continues 
to decrease compared to the 2023 funding levels.

Budget Requirements and Description

    The proposed 2024 Share Insurance Fund Administrative Expenses 
Budget is $5.1 million, which is $0.2 million, or 3.6 percent, higher 
than 2023.
    The proposed 2024 budget increase is primarily driven by an 
increase in projected costs for contracts needed to support the 
analysis of large credit unions, costs of AMAC activities, and 
inflationary growth in the cost of audit support. The proposed 2024 
Share Insurance Fund Administrative Expenses Budget includes:
    <bullet> $2.2 million for operating and maintenance costs of the 
Asset and Liabilities Management system, which allows the NCUA to build 
internal analytical capabilities to conduct supervisory stress testing 
analyses and to perform other quantitative risk assessments of large 
credit unions.
    <bullet> $0.3 million for certain insurance-related activities and 
expenses of AMAC, such as consulting expenses necessary to avoid or 
attempt to prevent a liquidation or conservatorship and staff travel 
for consultation on complex or problem cases.
    <bullet> $1.0 million for state examiner travel to NCUA-sponsored 
training classes and $0.2 million to ensure that state supervisory 
authorities can securely and efficiently access NCUA applications and 
the NCUA's MERIT system for state examination and supervision 
activities. The 2023 budget included similar amounts for these 
activities.
    <bullet> $0.9 million for financial reporting, including the annual 
financial audit and for contractor support to ensure effective internal 
controls for the fund.
    <bullet> $0.3 million for corporate resolution program legacy asset 
waterfall models and $0.1 million for valuation analysis support and 
data. These budget items decreased by 59.2 percent from 2022 to 2023. 
As the remaining legacy assets are sold and the program comes to a 
close, the associated budget continues to decrease and falls by 31.7 
percent from 2023 to 2024.
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BILLING CODE 7535-01-C
    The proposed 2025 budget supports similar workload and resources 
for the Share Insurance Fund, which at $4.7 million is $0.4 million 
lower than the proposed 2024 level. With the anticipated wind-down of 
the program in 2024 (subject to the status of ongoing litigation), 
there is no corporate

[[Page 75058]]

resolution budget planned for 2025 at this time.

VII. Financing the NCUA's Programs

Overview

    The NCUA incurs various expenses to achieve its statutory mission, 
including those involved in examining and supervising federally insured 
credit unions. The NCUA Board adopts an Operating Budget, a Capital 
Budget, and a Share Insurance Fund Administrative Expenses Budget each 
year to fund the majority of the costs to operate the agency.\20\ When 
formulating the annual budget, the NCUA is mindful that its funding 
comes from credit unions and strives to operate in an efficient, 
effective, transparent, and fully accountable manner.
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    \20\ Some costs are directly charged to the Share Insurance Fund 
when appropriate to do so. For example, costs for training and 
equipment provided to State Supervisory Authorities are directly 
charged to the Share Insurance Fund.
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    The Federal Credit Union Act authorizes two primary sources to fund 
the Operating Budget:
    1. Requisitions from the Share Insurance Fund ``for such 
administrative and other expenses incurred in carrying out the purposes 
of [Title II of the Act] as [the Board] may determine to be proper,'' 
\21\ and
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    \21\ 12 U.S.C. 1783(a).
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    2. ``[F]ees and assessments (including income earned on insurance 
deposits) levied on insured credit unions under [the Act].'' \22\ Among 
the fees levied under the Act are annual Operating Fees, which are 
required for federal credit unions under 12 U.S.C. 1755 ``and may be 
expended by the Board to defray the expenses incurred in carrying out 
the provisions of [the Act,] including the examination and supervision 
of [federal credit unions].''
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    \22\ 12 U.S.C. 1766(j)(3). Other sources of income for the 
Operating Budget have included interest income, funds from 
publication sales, parking fee income, and rental income.
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    Taken together, these authorities effectively require the Board to 
determine which expenses are appropriately paid from each source while 
giving the Board broad discretion in allocating expenses.
    In 1972, the Government Accountability Office recommended the NCUA 
adopt a method for allocating Operating Budget costs -- that is, the 
portion of the NCUA's budget funded by requisitions from the Share 
Insurance Fund and the portion covered by Operating Fees paid by 
federal credit unions.\23\ The NCUA has since used an allocation 
methodology known as the Overhead Transfer Rate (OTR) to determine how 
much of the Operating Budget to fund with a requisition from the Share 
Insurance Fund.
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    \23\ https://www.gao.gov/products/b-1640314-31.
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    The NCUA uses the OTR methodology to allocate agency expenses 
between these two primary funding sources. Specifically, the OTR is the 
formula the NCUA uses to allocate insurance-related expenses to the 
Share Insurance Fund under Title II of the Act. Almost all other 
operating expenses are funded through collecting annual Operating Fees 
paid by federal credit unions.\24\
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    \24\ Annual Operating Fees must ``be determined according to a 
schedule, or schedules, or other method determined by the NCUA Board 
to be appropriate, which gives due consideration to the expenses of 
the [NCUA] in carrying out its responsibilities under the [Act] and 
to the ability of [federal credit unions] to pay the fee.'' 12 
U.S.C. 1755(b).
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    Two statutory provisions directly limit the Board's discretion with 
respect to Share Insurance Fund requisitions for the NCUA's Operating 
Budget and, hence, the OTR. First, expenses funded from the Share 
Insurance Fund must carry out the purposes of Title II of the Act, 
which relate to share insurance.\25\ Second, the NCUA may not fund its 
entire Operating Budget through charges to the Share Insurance 
Fund.\26\
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    \25\ 12 U.S.C. 1783(a).
    \26\ The Act in 12 U.S.C. 1755(a) states, ``[i]n accordance with 
rules prescribed by the Board, each [federal credit union] shall pay 
to the [NCUA] an annual operating fee which may be composed of one 
or more charges identified as to the function or functions for which 
assessed.'' See also 12 U.S.C. 1766(j)(3).
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    The NCUA conducts a comprehensive workload analysis annually. This 
analysis estimates the amount of time necessary to conduct examinations 
and supervise federally insured credit unions in order to carry out the 
NCUA's dual mission as insurer and regulator. This analysis starts with 
a field-level review of every federally insured credit union to 
estimate the number of workload hours needed for the year. These 
estimates are informed by the overall parameters of the NCUA's 
examination program, as most recently updated by the Exam Flexibility 
Initiative approved by the Board.\27\ The workload estimates are then 
refined by regional managers and submitted to the NCUA headquarters for 
the annual budget proposal. The OTR methodology accounts for the costs 
of the NCUA, not the costs of state regulators. Therefore, there are no 
calculations made for state examiner hours.
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    \27\ The Exam Flexibility Initiative started with the January 1, 
2017, examination cycle, and it allows for extended examination 
cycles for eligible credit unions. Letters to Credit Unions 16-CU-
12, December 2016.
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Overhead Transfer Rate

    There have not been any major changes to the parameters of the 
examination program since the current OTR methodology went into 
effect.\28\ The minor variations in the OTR since 2018 are the result 
of routine, small fluctuations in the variables that affect the OTR, 
including normal fluctuations in the workload budget from one calendar 
year to the next.
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    \28\ On November 16, 2017, the NCUA Board adopted a new 
methodology for calculating the Overhead Transfer Rate starting with 
the 2018 Overhead Transfer Rate. 82 FR 55644, November 22, 2017.
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    The NCUA Board approved the current methodology for calculating the 
OTR at its November 2017 open meeting.\29\ In 2020, the Board published 
in the Federal Register a request for comment regarding the OTR 
methodology but did not propose or adopt any changes to the current 
methodology.\30\ The OTR is designed to cover the NCUA's costs of 
examining and supervising the risk to the Share Insurance Fund posed by 
all federally insured credit unions, as well as the costs of 
administering the fund. The OTR represents the percentage of the 
agency's operating budget paid for by a transfer from the Share 
Insurance Fund. Federally insured credit unions are not billed for and 
do not have to remit the OTR amount; instead, it is transferred 
directly to the Operating Fund from the Share Insurance Fund. This 
transfer, therefore, represents a cost to all federally insured credit 
unions.
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    \29\ 82 FR 55644 (Nov. 22, 2017).
    \30\ https://www.federalregister.gov/documents/2020/08/31/2020-17009/request-for-comment-regarding-national-credit-union-administration-overhead-transfer-rate.
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    Based on the Board-approved methodology and the proposed budget, 
the OTR for 2024 is estimated to be 61.8 percent, 60 basis points lower 
than for 2023.\31\ Thus, 61.8 percent of the total 2024 Operating 
Budget is estimated to be paid out of the Share Insurance Fund. The 
remaining 38.2 percent of the Operating Budget is estimated to be paid 
for by Operating Fees collected from federal credit unions. The 
explicit and implicit distribution of total Operating Budget costs for 
federal credit unions and federally insured, state-chartered credit 
unions (FISCUs) is outlined in the table below:
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    \31\ https://www.federalregister.gov/documents/2020/12/28/2020-28487/overhead-transfer-rate-methodology-and-operating-fee-schedule-methodology.

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[[Page 75059]]

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    To determine the funds transferred from the Share Insurance Fund to 
the Operating Fund, the OTR is applied to actual expenses incurred each 
month. Therefore, the rate calculated by the OTR formula is multiplied 
by each month's actual operating expenditures and the product of that 
calculation is transferred from the Share Insurance Fund to the 
Operating Fund. This monthly reconciliation to actual operating 
expenditures captures the variance between actual and budgeted amounts, 
so when the NCUA's expenditures are less than budgeted, the amount 
charged to the Share Insurance Fund is also less -- and those lower 
expenditures benefit both federally chartered and federally insured, 
state-chartered credit unions.
    The primary driver of the change in the estimated 2024 OTR is a 
decline in state credit union examination and supervision hours in the 
proposed budget for 2024. This reduction in state examination and 
supervision hours causes the weighted allocation of hours applied to 
NCUA in Principle 2 of the OTR methodology of the calculation to also 
decline.\32\ While the proposed 2024 Operating Budget increases from 
2023, the slightly lower weighted allocation of hours results in a 
nominal increase in insurance related costs and an overall decline in 
the OTR.
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    \32\ The NCUA does not charter state-chartered credit unions and 
is not the prudential regulator for them. The NCUA's role with 
respect to FISCUs is as insurer. Therefore, all examination and 
supervision work and other agency costs attributable to insured 
state-chartered credit unions is allocated as 100 percent insurance 
related. FISCUs typically pay supervisory fees to their respective 
State Supervisory Authority.
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    The following chart illustrates the share of the proposed 2024 
Operating Budget that would be paid by federal credit unions (69.2%) 
and federally insured, state-chartered credit unions (30.8%).
[GRAPHIC] [TIFF OMITTED] TN01NO23.014

Operating Fee

    The Board delegated authority to the Chief Financial Officer to 
administer the methodology approved by the Board for calculating the 
Operating Fee and to set the fee schedule as calculated per the 
approved methodology. In 2020, the Board approved and published in the 
Federal Register the current Operating Fee methodology, which forms the 
basis for how the Operating Fee is calculated in this section.\33\ 
Consistent with its triennial schedule for regulatory reviews, the NCUA 
requested public comment about the Operating Fee methodology in 2023. 
In the request, the NCUA sought comment on increasing the asset 
threshold that exempts smaller credit unions from paying an operating 
fee from $1 million to $2 million. Additionally, the request for public 
comment solicited feedback on the current three-tier operating fee 
schedule and other specific suggestions that

[[Page 75060]]

would increase the equitable distribution of the Operating Fee.
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    \33\ See https://www.govinfo.gov/content/pkg/FR-2020-12-31/pdf/2020-28490.pdf.
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    To determine the annual Operating Fee assessed on natural person 
federal credit unions using the current methodology, the NCUA first 
calculates the average of total assets reported in the preceding four 
calendar quarters available at the time of the calculation, net of any 
reported Paycheck Protection Program loans. Credit unions with assets 
less than $1 million are not assessed an Operating Fee and their assets 
are therefore excluded from this calculation. If the Board approves 
increasing the threshold to exempt more credit unions from paying the 
Operating Fee, the assets of those credit unions would be similarly 
excluded.
    Based on the Board-approved Operating Fee methodology, which is 
summarized in the following tables, the share of the proposed 2024 
budget funded by the Operating Fee is $140.7 million. This equates to 
0.01288 percent of the actual average of natural person federal credit 
union assets for the four calendar quarters ending on June 30, 2023. 
The calculated Operating Fee rate for 2024, using the current $1 
million exemption threshold, increases 19.59 percent compared to the 
rate in 2023. If the exemption threshold were raised to $2 million, the 
calculated Operating Fee rate for 2024 would increase 19.61 percent 
compared to the rate in 2023, and a difference of two basis points 
compared to the fee growth at the $1 million exemption level. Both of 
these computations are shown in the table on the following page.
    As part of the Board-approved Operating Fee methodology, the NCUA 
can adjust the share of the budget funded by the Operating Fee based on 
an analysis of the agency's future cash flow requirements compared to 
past years' collections that were not spent as planned. Any projected 
surplus cash from past years' fee collections not required to finance 
agency operations can accordingly be used to lower the Operating Fee 
share of the proposed budget. Because such cash surpluses result from 
past years' Operating Fee collections, they do not offset the portion 
of the budget funded by the OTR. As the final 2024-2025 budget is 
prepared for consideration by the NCUA Board, the Chief Financial 
Officer will evaluate the agency's cash position and make a 
recommendation about any surplus cash that can be credited to the 
operating fee.
    To set the assessment scale for 2024, total growth in natural 
person federal credit union assets is calculated as the change between 
the average of the four most-current quarters (that is, the third and 
fourth quarters of 2022 and the first two quarters of 2023) and the 
previous four quarters (that is, the third and fourth quarters of 2021 
and the first two quarters of 2022), which is calculated as 4.6 
percent. Asset level dividing points are likewise increased by this 
same growth rate in order to preserve the same relative relationship of 
the scale to the applicable asset base.
BILLING CODE 7535-01-P
[GRAPHIC] [TIFF OMITTED] TN01NO23.015

Operating Fee Scale

    To illustrate the rate for each asset tier for which Operating Fees 
are charged, the tables below show the effect of the average 19.59 
percent increase in the Operating Fee for natural person federal credit 
unions, using the current $1 million exemption threshold. The tables 
also show the effect of the average 19.61 percent increase in the 
Operating Fee for natural person federal credit unions using the $2 
million exemption threshold. The corporate federal credit union rate 
scale remains unchanged from prior years.

[[Page 75061]]

[GRAPHIC] [TIFF OMITTED] TN01NO23.016

VIII. Appendix A: Supplemental Budget Information

Budget by Strategic Goal

    The table below shows the combined total of the 2024 Operating and 
Capital Budgets, organized by the NCUA's three current strategic goals.

[[Page 75062]]

[GRAPHIC] [TIFF OMITTED] TN01NO23.017

    Note: Position totals do not include five positions funded by the 
Central Liquidity Facility and minor rounding differences may occur in 
totals.

Office Budget Summary
[GRAPHIC] [TIFF OMITTED] TN01NO23.018


[[Page 75063]]


    Note: Minor rounding differences may occur in totals.

Office Budgets
[GRAPHIC] [TIFF OMITTED] TN01NO23.019

    Note: Minor rounding differences may occur in totals.

[[Page 75064]]

[GRAPHIC] [TIFF OMITTED] TN01NO23.020

    Note: Minor rounding differences may occur in totals.

[[Page 75065]]

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    Note: Minor rounding differences may occur in totals.

[[Page 75066]]

[GRAPHIC] [TIFF OMITTED] TN01NO23.022

    Note: Minor rounding differences may occur in totals.

[[Page 75067]]

[GRAPHIC] [TIFF OMITTED] TN01NO23.023

    Note: Minor rounding differences may occur in totals.

[[Page 75068]]

[GRAPHIC] [TIFF OMITTED] TN01NO23.024

    Note: Minor rounding differences may occur in totals.

[[Page 75069]]

[GRAPHIC] [TIFF OMITTED] TN01NO23.025

    Note: Minor rounding differences may occur in totals.

[[Page 75070]]

[GRAPHIC] [TIFF OMITTED] TN01NO23.026

    Note: Minor rounding differences may occur in totals.

[[Page 75071]]

[GRAPHIC] [TIFF OMITTED] TN01NO23.027

    Note: Minor rounding differences may occur in totals.

[[Page 75072]]

IX. Appendix B: Capital Projects
[GRAPHIC] [TIFF OMITTED] TN01NO23.028


[[Page 75073]]


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[[Page 75075]]


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[[Page 75076]]


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[GRAPHIC] [TIFF OMITTED] TN01NO23.036


[FR Doc. 2023-24032 Filed 10-31-23; 8:45 am]
BILLING CODE 7535-01-C


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