FSOC Budget Information

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FY2013 Projected Actual Expenses and Proposed FY2014 Budget 

for the Financial Stability Oversight Council (FSOC) Secretariat and Office of the Independent Insurance Member

Funding and Governance of Council Budget 

Under Section 118 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act), “Any 

expenses of the Council shall be treated as expenses of, and paid by, the Office of Financial Research.” Under Section 

155 of the Dodd-Frank Act, expenses of the OFR, and therefore of the Council, are funded through assessments applicable 

to bank holding companies with total consolidated assets of $50 billion or greater and nonbank financial companies 

supervised by the Board of Governors of the Federal Reserve System. The Treasury Secretary has established, by 

regulation, and with the approval of the Council, an assessment schedule. 

Pursuant to section 3(a)(3)(B)(ii) of the Council’s Rules of Organization, the Chairperson shall propose an annual budget 

for the Council, which upon an affirmative vote of a majority of the voting members then serving shall be adopted as the 

annual budget of the Council. Under section 3(a)(3)(A) of the Council’s Rules of Organization, the Council shall 

periodically review the expenses of the Council, and the Chairperson shall provide a report of expenses to the Council no 

later than September 1 of each year.

FSOC Secretariat and Office of the Independent Member Budget

Category

FY 2013

Proposed Budget

FY 2013

Projected Actuals

FY 2014

Proposed Budget

FSOC Secretariat and Office of the Independent Member

 Labor Costs $4,263,029 $3,710,173 $4,332,000

Salary & Benefits $4,263,029 $3,710,173 $4,332,000

 Non-Labor Costs $4,455,000 $1,862,518 $3,340,500

Other Support $1,868,000 $798,917 $1,513,685

Data/Records System/General IT/Website $1,535,000 $571,987 $1,100,000

Space $600,000 $387,315 $464,815

FSOC Meetings/Supplies $97,000 $8,832 $55,000

General Administrative Costs $355,000 $95,467 $207,000

Total $8,718,029 $5,572,691 $7,672,500

Fiscal Year 2013 Highlights

• FY2013 actual expenses are forecasted to be $3.6 million under budget.

• Key drivers for lower forecasted actual expenses:

o $2.1 million of the Secretariat’s lower spending than the forecasted budget is due to non-labor expenses. Primary 

drivers are significant savings in production costs for the 2013 annual report and a temporary pause in non-labor 

spending due to sequestration resulting in a deferral of certain expenses until 2014.

o The $800,000 in lower spending than the forecasted budget of the Independent Member’s office is due to both 

labor and non-labor expenditures. 

Fiscal Year 2014 Highlights

• The FY2014 budget for the Secretariat and the Independent Member’s office are reduced 14 percent from the FY2013 

budget, reflecting a number of considerations, including:

o Both offices have achieved steady state for FTE, with no additional headcount planned for FY2014.

o Many one-time, non-labor expenses related to the start-up of each office have already been incurred. 
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• Labor and benefits have been calculated based on actual grade/step levels of current and planned staff. Budget 

assumes a total of 24 FTE for the Secretariat and 5 FTE for the Independent Member. 26 of the 29 total FTE are on 

board as of August 30, 2013.

FDIC Reimbursement Under Section 210(n)(10) of the Dodd-Frank Act

Category

FY 2013

Proposed Budget

FY 2013

Projected Actuals

FY 2014

Proposed Budget

FDIC Reimbursement Under Section 210(n)(10) 

Policies, Procedures, Rules, and Regulations to 

Implement Title II

$2,240,802 $2,105,334 $1,895,000

Institution-Specific Resolution Planning for Title II 

Implementation

Non-Institution Specific Resolution Planning for Title 

II Implementation

$4,413,6071 $2,512,612

$1,708,802

$1,970,000

$7,735,000

Total $6,654,409 $6,326,748 $11,600,000

Section 210(n)(10) of the Dodd-Frank Act provides that certain reasonable implementation expenses of the FDIC relating 

to its responsibilities under Title II for the resolution of systemically important financial companies incurred after the date 

of enactment of the Dodd-Frank Act shall be treated as expenses of the Council. The FDIC must periodically submit 

requests for reimbursement for implementation expenses to the Chairperson of the Council, who shall arrange for prompt 

reimbursement to the FDIC of reasonable implementation expenses. The expenses most recently submitted by the FDIC 

to the Chairperson for reimbursement cover the period from July 1, 2012, through June 30, 2013. The expenses incurred 

during this period are for rulewriting and resolution planning consistent with the FDIC’s implementation of its 

responsibilities under Title II of the Dodd-Frank Act.

• The proposed FY2014 budget for FDIC reflects the FDIC’s actual implementation expenses for the period July 1, 

2012, through June 30, 2013. The increase for FY2014 is consistent with the FY2014 budget forecast of $10.7 

million projected a year ago and reflects the continued ramp-up of activities performed by the FDIC that are eligible 

for reimbursement. 

• Reimbursable FDIC expenses include those related to the development of Title II rules and regulations and Title II 

resolution planning activities (both institution-specific and non-institution-specific). Non-institution specific 

resolution planning activities include the development of IT systems supporting resolution planning, the development 

of non-deposit claims and accounting processes for receiverships, the conduct of interagency simulations of orderly 

liquidation processes, the negotiation of international cooperative agreements, and outreach and education activities 

for various stakeholders.

 1 For the formulation of the FY2013 budget, the FDIC reported both institution-specific and non-institution specific resolution 

planning expenses as a single category called “Resolution Planning for Title II Implementation”.