Federal Deposit Insurance Corporation 

550 17th Street, N.W., Washington, D.C. 20429-9990 Deputy to the Chairman and CFO 

 

 August 23, 2013 

MEMORANDUM TO: The Board of Directors 

FROM: Steven O. App 

Deputy to the Chairman and 

Chief Financial Officer 

Craig R. Jarvill 

Director, Division of Finance 

SUBJECT: Second Quarter 2013 CFO Report to the Board 

The attached report highlights the Corporation’s financial activities and results for the quarter ended 

June 30, 2013. 

Executive Summary 

 During the second quarter of 2013, the Deposit Insurance Fund (DIF) balance increased by 

$2.2 billion, from $35.7 billion to $37.9 billion. This quarterly increase was primarily due to 

$2.5 billion of assessment revenue and a decrease in the provision for insurance losses of $33 

million, partially offset by $439 million of operating expenses. 

 

 On June 28, 2013, the DIF refunded $5.9 billion in prepaid assessments to the 5,625 insured 

depository institutions that had remaining prepaid assessment balances. This final repayment 

marked the end of the prepaid assessment initiative, which began with the collection of $45.7 

billion in prepaid assessments on December 30, 2009. 

 During the second quarter of 2013, the FDIC was named receiver for 12 failed institutions. 

The combined assets at inception for these institutions totaled approximately $1.4 billion with a 

total estimated loss of $270 million. The corporate cash outlay during the second quarter for 

these failures was approximately $296 million. 

 Through June 30, 2013, overall Corporate Operating Budget expenditures were below budget 

by 15 percent ($189 million). Approximately half of this variance was the result of lower-thanbudgeted spending for contractual services and operations at the site of failed financial 

institutions in the Receivership Funding budget component. Vacancies in budgeted positions 

in both the Ongoing Operations and Receivership Funding budget components were also a 

major contributor to the variance. 
2

I. Corporate Fund Financial Results (See pages 8 - 9 for detailed data and charts.) 

Deposit Insurance Fund 

 For the six months ending June 30, 2013, the DIF’s comprehensive income totaled $4.9 billion 

compared to comprehensive income of $10.9 billion for the same period last year. This $6.0 

billion decrease was mostly due to a decrease in other revenue of $4.1 billion, a $1.5 billion 

decrease in assessment revenue, and an increase in provision for insurance losses of $263 

million. 

 The year-over-year decrease of $4.1 billion in other revenue was primarily due to the 

recognition of $4.0 billion in revenue in June 2012 for the Debt Guarantee Program fees that 

were previously held as systemic risk deferred revenue. 

 The year-over-year decrease of $1.5 billion in assessment revenue was attributable to lower 

effective assessment rates. For the first six months of 2013, the average effective assessment 

rate was 8.978 basis points compared to the same period in 2012 where it was 10.782 basis 

points. 

 The provision for insurance losses was negative $532 million for the first half of 2013. The 

negative provision primarily resulted from a $470 million decrease in the contingent loss 

reserve due to lower estimated losses from anticipated future failures and a $54 million 

reduction in the estimated losses for institutions that have failed in the current and prior years. 

Assessments

 During the second quarter of 2013, the DIF recognized a total of $2.5 billion in assessment 

revenue. The estimate for second quarter 2013 insurance coverage totaled $2.6 billion. 

Additionally, the DIF recognized a net adjustment of $67 million that reduced assessment 

revenue. This adjustment consisted of $1 million in prior period amendments and a $68 million 

decrease to the estimate for first quarter 2013 insurance coverage recorded at March 31, 

2013. The latter adjustment was due to lower than estimated growth in the assessment base 

and lower average assessment rates.

 On June 28, 2013, the FDIC collected $1.2 billion in DIF assessments for first quarter 2013 

insurance coverage. On the same date, the FDIC refunded $5.9 billion of prepaid 

assessments to 5,625 financial institutions, bringing the “Refunds of prepaid assessments” line 

item to a zero balance at June 30, 2013. 

 
3

 

II. Investment Results (See pages 10 - 11 for detailed data and charts.)

DIF Investment Portfolio 

 On June 30, 2013, the total liquidity (also total market value) of the DIF investment portfolio 

stood at $34.2 billion, lower than its December 31, 2012, balance of $38.2 billion. The DIF 

investment portfolio would have increased by $1.8 billion, primarily due to receipts of 

receivership dividends and regular quarterly deposit insurance assessments, if it had not been 

for a partial refund of prepaid assessments in the amount of $5.9 billion in the second quarter. 

 On June 30, 2013, the DIF investment portfolio’s yield was 0.34 percent, down two basis 

points from its December 31, 2012, yield of 0.36 percent. During the first half of the year, 

newly purchased Treasury securities generally had somewhat lower yields than maturing 

securities, resulting in the modest decrease in portfolio yield. 

 In accordance with the approved second quarter 2013 DIF portfolio investment strategy, staff 

purchased a total of nine short-maturity conventional Treasury securities and one Treasury 

Inflation-Protected Security (TIPS). The ten securities had a total par value of $6.0 billion, a 

weighted average yield of 0.44 percent, and a weighted average maturity (WAM) of 2.11 

years. 

 
4

 

III. Budget Results (See pages 12 - 13 for detailed data.) 

Approved Budget Modifications 

The 2013 Budget Resolution delegated to the Chief Financial Officer (CFO) and selected other 

officials the authority to make certain modifications to the 2013 Corporate Operating Budget. The 

following budget reallocations were made during the second quarter in accordance with the 

authority delegated by the Board of Directors. None of these modifications changed the total 2013 

Corporate Operating Budget as approved by the Board in December 2012. 

 In May 2013, the CFO approved modifications to the Salaries and Compensation budget 

authority of divisions and offices within the Ongoing Operations and Receivership Funding 

budget components, based on an analysis of year-to-date spending for salaries, 

bonuses/lump-sum payments, and fringe benefits. That reallocation realigned existing budget 

authority among divisions and offices, but resulted in no change to the total corporate budget 

for either the Ongoing Operations or Receivership Funding budget component. 

 In March 2013, the CFO approved the reallocation of $17,154,484 in budget authority within 

the Ongoing Operations budget component from the Office of Complex Financial Institutions 

(OCFI) to the Division of Risk Management Supervision (RMS) in conjunction with the transfer 

of the oversight and monitoring function from OCFI to RMS. A total of 99 authorized positions 

were also transferred from OCFI to RMS to effect that reorganization. In April 2013, an 

additional $85,502 in budget authority was reallocated within the Ongoing Operations budget 

component from OCFI to RMS to fund the transfer of an additional employee to RMS to 

provide administrative support to the field employees transferring. These reallocations were 

effective on May 1. 

 In May 2013, the CFO approved a reallocation of $30,000 in budget authority within the 

Ongoing Operations component from the Corporate Unassigned budget to the Chairman’s 

Office for the travel and supplies associated with the Workplace Excellence (WE) program 

managed by the Internal Ombudsman. 

 In May 2013, the CFO approved a reallocation of $2,200,000 in budget authority within the 

Ongoing Operations component to the CIO Council from the Corporate Unassigned budget. 

This reallocation provided additional budget authority to purchase enterprise software licenses 

 The decline in the DIF 

portfolio’s yield 

beginning in 2009 

reflects: 1) the sale of 

older, higher-yielding 

securities to fund 

significant resolution 

outlays during the latter 

half of 2008 and 2009; 

and 2) beginning in 

2010, the reinvestment 

of newly available 

funds in short-maturity 

securities in a 

historically low yield 

environment.
5

for the Information Management and Compliance (IMAC) project. Funding for these licenses 

was originally budgeted in 2012, but that budget authority lapsed on December 31, 2012 as 

the funds were not spent. 

 In June 2013, the CFO approved reallocations within the Ongoing Operations and 

Receivership Funding components based upon a comprehensive mid-year reassessment of 

actual and projected spending for the year by each division and office. The budgets for all 

major expense categories and most divisions and offices were adjusted in this reallocation. 

The Division of Information Technology (DIT) received over $7 million in additional funding in 

its Ongoing Operations budget, largely for recommended IT security enhancements. 

Offsetting budget reductions included $4 million from the Office of the Complex Financial 

Institutions (OCFI), $1 million from the Division of Administration (DOA), and $1 million from 

the Division of Insurance and Research (DIR) within the Ongoing Operations budget 

component. 

Following that budget reallocation, the contingency reserves remaining within the Corporate 

Unassigned budgets for the Ongoing Operations and the Receivership Funding budget 

components were $25,839,393 and $14,343,746, respectively. 

Approved Staffing Modifications 

The 2013 Budget Resolution delegated to the CFO the authority to modify approved 2013 staffing 

authorizations for divisions and offices, as long as those modifications did not increase the total 

approved 2013 Corporate Operating Budget. The following changes were approved by the CFO 

in accordance with the authority delegated to him by the Board of Directors: 

 As noted above, the CFO approved the transfer of 99 authorized permanent positions to RMS 

from OCFI to support the realignment of the oversight and monitoring function between the 

two organizations. 

Spending Variances 

Significant spending variances by major expense category and division/office are discussed 

below. Significant spending variances for the six months ending June 30, 2013, are defined as 

those that either (1) exceed the YTD budget by $2 million and represent more than three percent 

of a major expense category or total division/office budget; or (2) are under the YTD budget for a 

major expense category or division/office by an amount that exceeds $3 million and represents 

more than five percent of the major expense category or total division/office budget. 

Significant Spending Variances by Major Expense Category 

Ongoing Operations 

There was a significant spending variance in four major expense categories during the second 

quarter in the Ongoing Operations component of the 2013 Corporate Operating Budget: 

 Outside Services - Personnel expenditures were $14 million, or 11 percent, less than 

budgeted. The CIO Council spent $4 million less than budgeted due to adjusted time 

schedules for development projects and client discretionary enhancements. The Division of 

Resolutions and Receiverships (DRR) spent $3 million less than budgeted due to lower than 

anticipated expenses for business process improvements, IT Security, web business support 

services and data contracts. In addition, delays in starting projects in its Complex Financial 

Institutions (CFI) branch contributed to the variance. OCFI spent $3 million less than 
6

budgeted due to a project cancellation and the successful renegotiation of a contract’s monthly 

payment terms to a lower amount. Corporate University (CU) spent $1 million less than 

budgeted, largely due to lower-than-projected expenses for various training and development 

projects because selected tasks are now being performed by FDIC staff rather than 

contractors. 

 Travel expenditures were approximately $8 million, or 15 percent, less than budgeted. This 

variance was largely due to vacancies in non-permanent field examination positions in RMS 

and DCP that resulted in lower regular duty and relocation travel expenses, and less travel 

than planned for Financial Institution Specialists in the Corporate Employee Program (CEP) in 

CU. 

 Building expenditures were approximately $3 million, or 8 percent, less than budgeted. This 

variance was largely due to budgeted capital improvement projects for which significant work 

has not yet been completed and lower-than-anticipated costs for the build-out of space leased 

at the NY Avenue building in conjunction with the 550 HVAC Retrofit project. 

 Equipment expenditures were approximately $18 million, or 46 percent, less than budgeted. 

DIT spent $16 million less than budgeted, largely due to the delay of some Technical Refresh 

program purchases to the second half of the year and a delay in receiving from a corrected 

invoice from a vendor for expenses associated with a large software maintenance contract. 

Receivership Funding 

The Receivership Funding component of the 2013 Corporate Operating Budget includes funding 

for expenses that are incurred in conjunction with institution failures and the management and 

disposition of the assets and liabilities of the ensuing receiverships, except for salary and benefits 

expenses for permanent employees assigned to the receivership management function. 

There were significant spending variances in five of the seven major expense categories through 

the second quarter in the Receivership Funding component of the 2013 Corporate Operating 

Budget: 

 Salaries and Compensation ($7 million or 8 percent, less than budgeted). 

 Outside Services-Personnel ($96 million or 33 percent, less than budgeted). 

 Travel ($6 million or 51 percent, less than budgeted). 

 Buildings ($3 million or 16 percent, less than budgeted). 

 Other Expenses ($9 million or 44 percent, less than budgeted). 

The variance in the Outside Services – Personnel expense category was attributable to less costly 

resolutions expenses and lower-than-anticipated asset management and marketing costs incurred 

under Receivership Assistance Contracts (RAC) and contracts for Due Diligence, Owned Real 

Estate (ORE), Loan Servicing, Loss Share, Securitization and Valuations. The variance in the 

Other Expenses Category was attributable to lower-than-projected time required to transfer the 

banking operations of failed financial institutions to purchasing institutions and to record postclosing expenses following the settlement process with assuming institutions. The variance in the 

Salaries and Compensation category was attributable to vacancies in budgeted non-permanent 

positions. The variance in the Travel category was due to lower-than-anticipated travel expenses 

because of fewer closings and less time spent at closings than budgeted. The variance in the 
7

Buildings expense category occurred as a result of shorter-than-expected operations at the site of 

failed banks. 

Significant Spending Variances by Division/Office1

Five organizations had significant spending variances through the end of the second quarter: 

 DRR spent $119 million, or 31 percent, less than budgeted, mostly due to less-than-budgeted 

spending for resolution and receivership management activities. Over recent quarters, the 

size of financial institution failures has been below levels anticipated during the 2013 budget 

formulation process. 

 DIT spent $17 million, or 13 percent, less than budgeted, largely due to the timing of some 

equipment purchases. DIT anticipates fully spending its equipment budget by the end of the 

year. 

 CIO Council spent $6 million, or 17 percent, less than budgeted due to adjusted time 

schedules for certain development project and changes in planned OCFI development 

projects. 

 DCP spent $5 million, or 6 percent, less than budgeted. This variance was largely attributable 

to vacancies in budgeted non-permanent field examination positions and lower-than-budgeted 

examination travel expenses resulting from those vacancies. 

 OCFI spent $4 million, or 19 percent, less than budgeted. This variance was attributable to 

lower-than-budgeted spending for contractual services and slower-than-projected hiring to fill 

budgeted positions. 

 

Other Matters 

An analysis of 2013 funding requirements for employee pay and benefits was completed in 

accordance with the 2013 Budget Resolution. The analysis determined that those costs had been 

over-estimated during the preparation of the 2013 Corporate Operating Budget by approximately 

$9 million in the regular salaries account of the Ongoing Operations budget component (largely 

offset by an under-estimate of $8 million in fringe benefits in that budget component) and $1 

million in the Receivership Funding budget component. Because the differences were relatively 

inconsequential, the CFO elected not to exercise his delegated authority to adjust the 2013 

Corporate Operating Budget. 

 

1

Information on division/office variances reflects variances in both the Corporate Operating and Investment 

Budgets. 
FDIC CFO REPORT TO THE BOARD – Second Quarter 2013 

Fund Financial Results ($ in Millions) 

8

Balance Sheet

Unaudited Unaudited Quarterly Unaudited Year-Over-Year

Jun-13 Mar-13 Change Jun-12 Change

Cash and cash equivalents 531 $ 1,052 $ (521) $ 4,137 $ (3,606) $ 

Cash and investments - restricted - systemic risk - - - 945 (945) 

Investment in U.S. Treasury obligations, net 33,286 37,474 (4,188) 33,314 (28) 

Trust preferred securities 2,240 2,256 (16) 2,314 (74) 

Assessments receivable, net 2,594 1,295 1,299 454 2,140 

Receivables and other assets - systemic risk - - - 1,723 (1,723) 

Interest receivable on investments and other assets, net 533 470 63 449 84 

Receivables from resolutions, net 18,442 22,549 (4,107) 21,855 (3,413) 

Property and equipment, net 376 381 (5) 386 (10) 

Total Assets $ 65,477 58,002 $ (7,475) $ 65,577 $ (7,575) $ 

Accounts payable and other liabilities 296 319 (23) 348 (52) 

Unearned revenue - prepaid assessments - - - 11,474 (11,474) 

Refunds of prepaid assessments - 5,829 (5,829) - - 

Liabilities due to resolutions 17,179 20,696 (3,517) 24,185 (7,006) 

Deferred revenue - systemic risk - - - 2,668 (2,668) 

Postretirement benefit liability 224 224 - 188 36 

Contingent liability for anticipated failures 2,426 2,659 (233) 4,017 (1,591) 

Contingent liability for litigation losses 6 8 (2) 4 2 

Total Liabilities $ 29,735 20,131 $ (9,604) $ 42,884 $ (22,753) $ 

FYI: Unrealized gain (loss) on U.S. Treasury investments, net (8) 72 (80) (1) (7) 

FYI: Unrealized gain (loss) on trust preferred securities 278 294 (16) 352 (74) 

FYI: Unrealized postretirement benefit (loss) gain (61) (61) - (34) (27) 

Fund Balance $ 35,742 37,871 $ 2,129 $ 22,693 $ 15,178 $ 

Deposit Insurance Fund

• The negative loss 

provisions of $6.0 billion 

and $4.0 billion primarily 

resulted from reductions in 

the contingent loss reserve 

due to the improvement in 

the financial condition of 

institutions that were 

previously identified to fail 

and the estimated losses 

for institutions that had 

previously failed, 

respectively.

• The $10 billion in 

cumulative net loss 

provisions have added 

nearly 17 basis points to 

the DIF reserve ratio, 

which was 0.59% at March 

31, 2013.
9

Fund Financial Results - continued ($ in Millions) 

Receivership Assets-in-Liquidation Portfolio

(Dollars in Billions)

Income Statement (year-to-date)

Unaudited Unaudited Quarterly Unaudited Year-Over-Year

Jun-13 Mar-13 Change Jun-12 Change

Assessments 5,171 $ 2,645 $ 2,526 6,627 $ (1,456) $ 

Systemic risk revenue - - - (3) 3 

Interest on U.S. Treasury obligations 45 (9) 54 101 (56) 

Other revenue 110 56 54 4,160 (4,050) 

Total Revenue $ 2,692 5,326 $ 2,634 10,885 $ (5,559) $ 

Operating expenses 875 436 439 867 8 

Systemic risk expenses - - - (3) 3 

Provision for insurance losses (532) (499) (33) (795) 263 

Insurance and other expenses 4 1 3 2 2 

Total Expenses and Losses $ (62) 347 $ 409 71 $ 276 $ 

Net Income (Loss) 2,754 4,979 2,225 10,814 (5,835) 

Unrealized gain (loss) on U.S. Treasury investments, net (42) 38 (80) (49) 7 

Unrealized gain (loss) on trust preferred securities (24) (8) (16) 101 (125) 

Unrealized postretirement benefit gain (loss) - - - - - 

Comprehensive Income (Loss) $ 2,784 4,913 $ 2,129 10,866 $ (5,953) $ 

Deposit Insurance Fund

Selected Financial Data

Unaudited Unaudited Quarterly Unaudited Year-Over-Year

Jun-13 Mar-13 Change Jun-12 Change

Cash and cash equivalents 3,596 $ 3,594 $ 2 $ 3,594 $ 2 $ 

Accumulated deficit (124,459) (124,459) - (124,461) 2 

Total resolution equity 3,598 3,598 - 3,596 2 

Total revenue 2 1 1 3 (1) 

Operating expenses 1 - 1 3 (2) 

Goodwill litigation expenses 1 - 1 181 (180) 

Recovery of tax benefits - - - - - 

Net Income (Loss) 1 $ 1 $ - $ (180) $ 181 $ 

FSLIC Resolution Fund

Receivership Selected Statistics June 2013 vs. June 2012

$ in millions

Jun-13 Jun-12 Change Jun-13 Jun-12Change Jun-13 Jun-12 Change

Total Receiverships 478 454 24 2 4 (2) 480 458 22 

Assets in Liquidation 14,180 $ 19,516 $ (5,336) $ 5 $ 7 $ (2) $ 14,185 $ 19,523 $ (5,338) $ 

YTD Collections 4,294 $ 4,597 $ (303) $ 2 $ 17 $ (15) $ 4,296 $ 4,614 $ (318) $ 

YTD Dividend/Other Pymts - Cash 2,130 $ 2,319 $ (189) $ - $ - $ - $ 2,130 $ 2,319 $ (189) $ 

DIF FRF ALL FUNDS
10

6/30/13 12/31/12 Change

Par Value $32,588 $37,086 ($4,498)

Amortized Cost $33,827 $37,927 ($4,100)

Total Market Value (including accrued interest) $34,194 $38,249 ($4,055)

Primary Reserve 1 $34,194 $38,249 ($4,055)

Primary Reserve % of Total Portfolio 100.0% 100.0% 0.0%

Yield-to-Maturity 2 0.34% 0.36% (0.02%)

Weighted Average Maturity (in years) 0.82 0.68 0.14

Effective Duration (in years) 3

 Total Portfolio 0.76 0.64 0.12

 Available-for-Sale Securities 0.79 0.70 0.09

 Held-to-Maturity Securities 4 not applicable not applicable not applicable

6/30/13 12/31/12 Change

FRF-FSLIC

 Book Value 5 $3,425 $3,425 $0

 Yield-to-Maturity 0.02% 0.00% 0.02%

 Weighted Average Maturity overnight overnight no change

6/30/13 12/31/12 Change

Book Value 6 $14,842 $14,702 $140

Effective Annual Yield 0.10% 0.12% (0.02%)

Weighted Average Maturity (in days) 58 20 38

2

 The Yield-to-Maturity includes the potential yield of Treasury Inflation-Protected Securities (TIPS), which presently assumes an average 

2.0% annual increase in the CPI over the remaining life of each TIPS.

3

 For each TIPS, an estimated 80 percent "yield beta" factor is applied to its real yield duration to arrive at an estimated effective duration.

Deposit Insurance Fund Portfolio Summary

(Dollar Values in Millions)

1

 Primary Reserve is the total market value (including accrued interest) of overnight investments, all available-for-sale securities, and heldto-maturity securities maturing within three months.

National Liquidation Fund (NLF) Investment Portfolio Summary

(Dollar Values in Millions)

4

 In early August 2008, management reclassified all of the DIF portfolio's HTM securities as AFS securities effective as of June 30, 2008, 

because the FDIC could no longer assert it had the positive intent and ability to hold its HTM securities until their maturity dates.

6

 Due to the short-term nature of the NLF, the portfolio's Book and Market Values are identical for reporting purposes.

Summary of Other Corporate Investment Portfolios

(Dollar Values in Millions)

5

 Due to the current short-term nature of this portfolio, its respective Par, Book, and Market Values are identical for reporting purposes.
11

DEPOSIT INSURANCE FUND

Purchase up to $6 billion (par value) of available-for-sale (AFS) securities with maturity dates 

between September 30, 2013, and December 31, 2016, subject to the following additional 

restrictions: no more than $4 billion (par value) of such securities shall have maturity dates 

beyond December 31, 2014; no more than $3 billion (par value) of such securities shall have 

maturity dates beyond December 31, 2015; and no more than $3 billion (adjusted par value) 

of such securities shall consist of Treasury Inflation-Protected Securities (TIPS).

Purchase up to $12 billion (par value) of Treasury securities with maturity dates between 

December 31, 2013 and June 30, 2018, subject to the following additional provisions: all 

newly purchased securities will be designated as AFS; and no more than $3 billion (adjusted 

par value) of such securities shall consist of TIPS.

NATIONAL LIQUIDATION FUND

Maintain an overnight deposit target floor balance within a range of $100 million to $300 

million.

Strategically invest the remaining funds in the zero- to 12-month maturity sector.

No strategy changes for the third quarter of 2013.

Strategy Changes for 3rd Quarter 2013

Investment Strategies

Strategy for 2nd Quarter 2013

Strategy for the 2nd Quarter 2013

Strategy Changes for 3rd Quarter 2013
12

1) Budgets for investment projects are approved on a multi-year basis; the year-to-date budget amount reflects the 2013 spending estimates 

for approved projects. Detailed quarterly reports on the status of those projects are provided separately to the Board by the Capital 

Investment Review Committee for all information technology projects.

Annual YTD YTD % of YTD YTD

Major Expense Category Budget Budget Expenditures Budget Used Variance

Corporate Operating Budget 

Ongoing Operations

Salaries & Compensation $1,184,356 $581,110 $561,242 97% ($19,868)

Outside Services - Personnel 279,238 123,944 109,766 89% (14,178)

Travel 109,248 53,242 45,103 85% (8,139)

Buildings 91,634 42,849 39,533 92% (3,316)

Equipment 83,490 38,242 20,607 54% (17,635)

Outside Services - Other 18,029 8,916 8,034 90% (882)

Other Expenses 16,644 7,292 5,814 80% (1,478)

Total Ongoing Operations $1,782,639 $855,594 $790,099 92% ($65,495)

Receivership Funding

Salaries & Compensation $188,858 $94,483 $87,347 92% ($7,136)

Outside Services - Personnel 592,500 287,847 191,996 67% (95,851)

Travel 22,079 11,035 5,358 49% (5,677)

Buildings 37,418 19,492 16,439 84% (3,053)

Equipment 10,687 3,865 2,092 54% (1,773)

Outside Services - Other 6,386 3,193 2,577 81% (616)

Other Expenses 42,072 21,035 11,859 56% (9,176)

Total Receivership Funding $900,000 $440,951 $317,668 72% ($123,283)

Total Corporate Operating Budget $2,682,639 $1,296,546 $1,107,767 85% ($188,779)

Investment Budget 1 $27,173 $10,125 $11,118 110% $993

Grand Total $2,709,812 $1,306,671 $1,118,885 86% ($187,786)

Executive Summary of 2013 Budget and Expenditures

by Major Expense Category

Through June 30, 2013

(Dollars in Thousands)
13

1) Executive Support includes the Offices of Minority and Women Inclusion, Communications, Ombudsman, Legislative Affairs, 

Corporate Risk Management, and International Affairs.

2) Executive Offices include the offices of the Chairman, Vice Chairman, Independent Director, Deputy to the Chairman and Chief

Operating Officer, Deputy to the Chairman and Chief Financial Officer, and Deputy to the Chairman for External Affairs.

3) Budgets for investment projects are approved on a multi-year basis; the year-to-date budget amount reflects the 2013 spending estimates 

for approved projects. Detailed quarterly reports on the status of those projects are provided separately to the Board by the Capital 

Investment Review Committee for all information technology projects. 

Annual YTD YTD % of YTD YTD

Division/Office Budget Budget Expenditures Budget Used Variance

 Corporate Operating Budget 

 Resolutions & Receiverships $779,124 $390,054 $270,821 69% ($119,233)

 Risk Management Supervision 548,331 269,980 257,955 96% (12,025)

 Legal 297,921 146,224 139,174 95% (7,050)

 Administration 266,890 125,686 118,469 94% (7,217)

 Information Technology 269,515 123,463 106,471 86% (16,992)

 Depositor & Consumer Protection 167,398 83,865 78,796 94% (5,069)

 CIO Council 72,236 35,481 29,351 83% (6,130)

 Insurance & Research 43,897 20,824 19,253 92% (1,571)

 Complex Financial Institutions 35,639 22,976 18,691 81% (4,285)

 Finance 41,581 20,221 18,637 92% (1,584)

 Inspector General 33,722 16,678 14,608 88% (2,070)

 Executive Support 1 31,274 15,173 12,626 83% (2,547)

 Corporate University - Corporate 23,506 11,593 10,247 88% (1,346)

 Corporate University - CEP 19,173 8,741 7,385 84% (1,356)

 Executive Offices 2 11,247 5,587 5,283 95% (304)

 Government Litigation 1,000 0 0 N/A 0

 Corporate Unassigned 40,183 0 0 N/A 0

 Total, Corporate Operating Budget $2,682,639 $1,296,546 $1,107,767 85% ($188,779)

 Investment Budget 3

 Information Technology $17,205 $7,266 $7,482 103% $216

 Administration 8,723 2,413 3,413 141% 1,000

 Corporate University - Corporate 605 100 144 144% 44

 Risk Management Supervision 373 322 72 22% (250)

 Depositor & Consumer Protection 236 0 4 N/A 4

 Resolutions & Receiverships 32 24 3 13% (21)

 Total, Investment Budget 3 $27,173 $10,125 $11,118 110% $993

 Combined Division/Office Budgets

 Resolutions & Receiverships $779,156 $390,078 $270,824 69% ($119,253)

 Risk Management Supervision 548,704 270,302 258,027 95% (12,275)

 Legal 297,921 146,224 139,174 95% (7,050)

 Administration 275,613 128,099 121,882 95% (6,217)

 Information Technology 286,720 130,729 113,953 87% (16,776)

 Depositor & Consumer Protection 167,634 83,865 78,800 94% (5,065)

 CIO Council 72,236 35,481 29,351 83% (6,130)

 Insurance & Research 43,897 20,824 19,253 92% (1,571)

 Complex Financial Institutions 35,639 22,976 18,691 81% (4,285)

 Finance 41,581 20,221 18,637 92% (1,585)

 Inspector General 33,722 16,678 14,608 88% (2,070)

 Executive Support 1 31,274 15,173 12,626 83% (2,547)

 Corporate University - Corporate 24,111 11,693 10,391 89% (1,302)

 Corporate University - CEP 19,173 8,741 7,385 84% (1,356)

 Executive Offices 2 11,247 5,587 5,283 95% (304)

 Government Litigation 1,000 0 0 N/A 0

 Corporate Unassigned 40,183 0 0 N/A 0

 Grand Total $2,709,812 $1,306,671 $1,118,885 86% ($187,786)

Executive Summary of 2013 Budget and Expenditures

by Budget Component and Division/Office

Through June 30, 2013

(Dollars in Thousands)