CORPORATE OPERATING BUDGET

The FDIC segregates its corporate operating budget and 

expenses into two discrete components: ongoing operations 

and receivership funding. The receivership funding 

component represents expenses resulting from financial 

institution failures and is, therefore, largely driven by 

external forces, while the ongoing operations component 

accounts for all other operating expenses and tends to be 

more controllable and estimable. Over the past decade, the 

FDIC’s expenditures have varied in response to workload. 

From 2008-2010, expenditures rose substantially, largely 

due to increasing resolution and receivership activity and 

the oversight of more problem institutions. Since 2010 

these activities and their associated expenditures have been 

gradually declining.

Corporate operating expenses totaled $2.1 billion in 2014, 

including $1.6 billion in ongoing operations and $0.5 billion 

in receivership funding. This represented approximately 91 

percent of the approved budget for ongoing operations and 

86 percent of the approved budget for receivership funding 

for the year. 5

In December 2014, the Board of Directors approved a 2015 

Corporate Operating Budget of approximately $2.3 billion, 

consisting of $1.8 billion for ongoing operations and $0.5 

billion for receivership funding. The ongoing operations 

budget for 2015 is approximately $2 million (0.1 percent) 

higher than it was for 2014, while the receivership funding 

budget is $75 million (13 percent) lower than it was 

for 2014.

As in prior years, the 2015 budget was formulated primarily 

on the basis of an analysis of projected workload for each 

of the Corporation’s three major business lines and its major 

program support functions. The most significant factor 

contributing to the decrease in the Corporate Operating 

Budget is the improving health of the industry and the 

resulting reduction in failure-related workload. Although 

savings in this area are being realized, the 2015 receivership 

funding budget allows for resources for contractor support 

as well as non-permanent staffing for DRR, the Legal 

Division, and other organizations, should workload in these 

areas require an immediate response.

IV. FDIC Budget 

and Spending

5 The numbers in this paragraph will not agree with the DIF and FRF financial statements due to differences in how items are 

classified.

BUDGET SECTION 69
ANNUAL REPORT 2014

70 BUDGET SECTION

FDIC EXPENDITURES 2005–2014

Dollars in Millions

2014 BUDGET AND EXPENDITURES BY PROGRAM

(including Allocated Support) Dollars in Millions

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$0

2014 BUDGET AND 

EXPENDITURES BY PROGRAM 

(Excluding Investments)

The FDIC operating budget for 2014 totaled $2.4 billion. 

Budget amounts were allocated as follows: $264 million, 

or 11 percent, to the Insurance program; $1.1 billion, or 

44 percent, to the Supervision program; $864 million, or 

36 percent, to the Receivership Management program; 

and $216 million, or 9 percent, to Corporate General and 

Administrative expenditures.

Actual expenditures for the year totaled $2.1 billion. 

Actual expenditures amounts were allocated as follows: 

$273 million, or 13 percent, to the Insurance program;

 $924 million, or 44 percent, to the Supervision program; 

and $714 million, or 34 percent, to the Receivership 

Management program; and $189 million, or 9 percent, to 

Corporate General and Administrative expenditures.

Insurance

Program

Supervision 

Program

Receivership

Management

Program

General and

Administrative

$1,200

Budget

$900

$600

$300

$0

Expenditures
BUDGET SECTION 71

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

$60

$40

$20

$10

$30

$50

$70

$0

INVESTMENT SPENDING 2005 - 2014

Dollars in Millions

INVESTMENT SPENDING

The FDIC instituted a separate Investment Budget in 

2003 to provide enhanced governance of major multi-year 

development efforts. There is a disciplined process for 

reviewing proposed new investment projects and managing 

the construction and implementation of approved projects. 

Proposed IT projects are carefully reviewed to ensure 

that they are consistent with the Corporation’s enterprise 

architecture. The project approval and monitoring 

processes also enable the FDIC to be aware of risks to the 

major capital investment projects and facilitate appropriate, 

timely intervention to address these risks throughout the 

development process. An investment portfolio performance 

review is provided to the FDIC’s Board of Directors on 

a quarterly basis. From 2005-2014, investment spending 

totaled $191 million and is estimated at $30 million 

for 2015.