Council Budget Information

1 

FY2016 Projected Actual Expenses and Proposed FY2017 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

FY2016

Approved Budget

FY2016

Projected Actuals

FY2017

Proposed Budget

Council Secretariat and Office of the Independent 

Member

 Labor Costs $4,585,281 $4,003,356 $4,395,916

Salary & Benefits $4,585,281 $4,003,356 $4,395,916

 Non-Labor Costs $3,547,661 $3,273,516 $3,760,180

Other Support $2,602,161 $2,697,384 $2,906,180

Data/Records System/General IT/Website $685,500 $510,774 $552,000

Non-recurring Lease and Alteration Costs $50,000 $5,835 $160,000

Council Meetings/Supplies $25,000 $7,137 $20,000

General Administrative Costs $185,000 $52,386 $122,000

Total $8,132,942 $7,276,872 $8,156,096

Fiscal Year 2016 Highlights

• FY2016 actual expenses are forecasted to be approximately $856,000 under budget. 

• Non-labor expenses account for approximately $275,000 of the forecasted shortfall. Primary drivers include the 

deferral of office space alteration costs and certain information technology expenses until FY2017, as well as a 

reduction in travel and training expenses. 

• The forecasted shortfall of approximately $580,000 for salary and benefits is due to staff attrition and the hiring of 

new staff later in the fiscal year than initially planned.

Fiscal Year 2017 Highlights 

• The FY2017 proposed budget for the Council Secretariat and the Office of the Independent Member includes an 

increase of approximately $23,000, or 0.3 percent, from the FY2016 budget. This includes nominal inflation 

adjustments for labor and non-labor expenses and deferred FY2016 expenses for office space alteration and 

information technology expenses. 

• The budget proposes a staffing model that is generally consistent with prior-year forecasts. 
2 

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

Category

FY2016

Approved Budget

FY2016

Projected Actuals

FY2017

Proposed Budget

FDIC Reimbursement Under Section 210(n)(10) 

Policies, Procedures, Rules, and Regulations to 

Implement Title II

$493,393 $493,393 $1,019,544

Institution-Specific Resolution Planning for Title II 

Implementation

Non-Institution Specific Resolution Planning for Title 

II Implementation

$733,637

$5,343,631 

$733,637

$5,343,631 

$355,896

$3,750,086 

Total $6,570,661 $6,570,661 $5,125,526

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 2016 Highlights

• The FY2016 budget was based on the expected reimbursement of the FDIC’s actual expenses from July 1, 

2014, through June 30, 2015, for the implementation of Title II of the Dodd-Frank Act. FY2016 actual 

expenses will, therefore, be identical to the FY2016 budget, since the FDIC’s reimbursement request was

submitted to the Chairperson for review prior to the adoption of the Council’s FY2016 budget 

• FY2016 actual expenses were primarily for the cost of FDIC staff who worked on Title II rulemaking and 

resolution planning activities.

Fiscal Year 2017 Highlights

• The expenses most recently submitted by the FDIC to the Chairperson for reimbursement cover the period from July 1, 

2015, through June 30, 2016. The proposed FY2017 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 FDIC’s FY2017 expenses for Title II Policies, Procedures, Rules and Regulations increased 

substantially from FY2016 levels. This primarily reflected the substantial progress made on several major 

rules for which the FDIC had either rulemaking or consultative responsibilities.

• The overall decrease in the FDIC’s reimbursable expenses from FY2016 to FY2017 is attributable largely to 

reduced expenses during the 12-month period ending on June 30, 2016, related to Title II resolution planning 

activities. 

• As in prior years, FY2017 actual expenses are primarily related to the cost of FDIC staff who worked on Title II 

rulemaking and resolution planning activities.