Council Budget Information

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FY2015 Projected Actual Expenses and Proposed FY2016 Budget 

for the Financial Stability Oversight Council (Council) 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.

Council Secretariat and Office of the Independent Member Budget

Category

FY 2015

Approved Budget

FY 2015

Projected Actuals

FY 2016

Proposed Budget

Council Secretariat and Office of the Independent 

Member

 Labor Costs $4,541,843 $3,782,830 $4,585,281

Salary & Benefits $4,541,843 $3,782,830 $4,585,281

 Non-Labor Costs $4,148,511 $2,347,251 $3,547,661

Other Support $2,846,511 $1,903,583 $2,602,161

Data/Records System/General IT/Website $887,000 $369,338 $685,500

Non-recurring Lease and Alteration Costs $160,000 $0 $50,000

Council Meetings/Supplies $25,000 $17,429 $25,000

General Administrative Costs $230,000 $56,901 $185,000

Total $8,690,355 $6,130,081 $8,132,942

Fiscal Year 2015 Highlights

• FY2015 actual expenses are forecasted to be $2.6 million under budget, based on data through July 31, 2015.

• Non-labor expenses account for $1.8 million of the forecasted shortfall. Primary drivers for this shortfall in non-labor 

expenses include fewer reimbursable detailees from member agencies during FY2015, deferral of certain information 

technology expenses until FY2016, and elimination of previously anticipated non-recurring lease and alteration costs.

• The forecasted shortfall of approximately $759,000 for salary and benefits is due to the hiring of new staff later in the 

fiscal year than initially planned.

Fiscal Year 2016 Highlights

• The FY2016 proposed budget for the Secretariat and the Office of the Independent Member includes a decrease of 

approximately $557,000, or 6.4 percent, from the FY2015 budget. Primary drivers include: a re-baselining of certain 

non-labor reimbursable expenses based on FY2015 actuals; reduced estimates for deferred information technology 

expenses; and, elimination of administrative support contracts.
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• The budget assumes a total of 31 FTE for the Secretariat and 5 FTE for the Independent Member, a net increase of 5 

FTE for the Secretariat from FY2015. 29 of the 36 total FTE are planned to be on board as of September 30, 2015.

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

Category

FY 2015

Approved Budget

FY 2015

Projected Actuals

FY 2016

Proposed Budget

FDIC Reimbursement Under Section 210(n)(10) 

Policies, Procedures, Rules, and Regulations to 

Implement Title II

$1,414,363 $1,414,363 $493,393

Institution-Specific Resolution Planning for Title II 

Implementation

Non-Institution Specific Resolution Planning for Title 

II Implementation

$868,898

5,344,639

$868,898

$5,344,639

$733,637

$5,343,631

Total $7,627,900 $7,627,900 $6,570,661

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. Reimbursable FDIC expenses include those related 

to the development and adoption 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 primarily involve 

the development of operational procedures for a Title II receivership, such as those related to receivership management, 

accounting and reporting, non-deposit claims, and cross-border coordination.

Fiscal Year 2015 Highlights

• The FY2015 budget was based on the expected reimbursement of the FDIC’s actual expenses from July 1, 2013, 

through June 30, 2014, for the implementation of Title II of the Dodd-Frank Act. FY2015 actual expenses will, 

therefore, be identical to the FY2015 budget, since the FDIC’s reimbursement request was submitted to the 

Chairperson for review prior to the adoption of the Council’s FY2015 budget.

• FY2015 actual expenses were primarily for the cost of FDIC staff that worked on Title II rulemaking and resolution 

planning activities.

Fiscal Year 2016 Highlights

• The expenses most recently submitted by the FDIC to the Chairperson for reimbursement cover the period from July 

1, 2014, through June 30, 2015. The proposed FY2016 budget for the FDIC is based on the FDIC’s actual 

implementation expenses for that period. Those expenses were for Title II rule writing and resolution planning, 

consistent with the FDIC’s implementation of its responsibilities under Title II of the Dodd-Frank Act.

• The decrease in the FDIC’s reimbursable expenses from FY2015 to FY2016 is attributable largely to reduced 

expenses during the 12-month period ending on June 30, 2015, related to Title II rule writing. Although the FDIC 

continues to work with other regulatory agencies on the completion of a number of remaining rules required to 

implement Title II, most Title II rules were completed in earlier years.

• As in prior years, FY2016 actual expenses are primarily related to the cost of FDIC staff that worked on Title II 

rulemaking and resolution planning activities.