first_img 7SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Debbie Matz Debbie Matz was nominated by President Barack Obama to serve as the eighth board chair of the National Credit Union Administration (NCUA). After confirmation by the U.S. Senate on … Web: www.ncua.gov Details Starting in May of each year, NCUA begins the rigorous process of developing the following year’s budget using a zero-based process.Some people have asked me what zero-based budgeting means:It means every position and every expense must be individually justified.It also means our budget is developed from the bottom up.Zero-based budgeting at NCUA begins with a field-level review of every credit union to determine the number of workload hours that will be needed for the upcoming year. Field staff recommends the number of hours to supervise each credit union based on asset size, complexity, and financial trends.Workload estimates are then refined by each level of management in the field, until the budget proposal is forwarded to NCUA’s Central Office for extensive review and analysis.The 15 offices within NCUA headquarters are also rigorously evaluated to ensure resources are allocated efficiently toward priority needs. We don’t just carry over amounts that were budgeted or spent in the prior year. We require every office to explain the merits of every line item, the specific needs for every spending category, and the basis of developing every cost estimate.Throughout the budget process, the Executive Director and the Chief Financial Officer brief each Board Member multiple times on budget proposals that are submitted, updated, and recommended. So the budget is thoroughly vetted at every level of the agency.Lowest Budget Increase in 7 YearsAs a result of the intense analysis, scrubbing, and reviews, I am pleased that NCUA’s 2015 budget includes the lowest increase in seven years.The 4.2 percent increase ensures that we have the resources to efficiently do our jobs—protecting the safety and soundness of credit unions and being a vigilant steward of the National Credit Union Share Insurance Fund—in a manner that recognizes our operating costs are borne by the credit unions we regulate and insure.Cutting the Budget Is Not an OptionI know there will always be those who argue that NCUA should cut the budget—and that any increase is too big.Cutting the budget, however, is not an option. Like all businesses, this agency faces non-discretionary costs that tend to increase each year, such as:Health care;Travel and hotels;Telecommunications;Leased and owned property;Hardware and software; andMaintenance and repairs.So the only way to materially cut the budget would be to substantially cut staff.Reducing Staff Leads to Higher LossesLet me remind you: NCUA made the mistake of cutting staff in the years leading up to the Great Recession. NCUA cut 71 full-time equivalent staff (FTEs) between 2001 and 2008. To keep costs down, the agency employed a smaller exam force, cut back to 18 months between exams, and had fewer office staff analyzing Call Reports.The result was that NCUA was unable to identify many credit unions’ problems soon enough to save them from losses.Another argument some stakeholders make is that NCUA should reduce staff each year as the number of credit unions declines.However, that argument has a fatal flaw: Most of the insured shares and troubled assets from those credit unions do not disappear; they are acquired by other credit unions.So the remaining credit unions are growing larger and more complex, posing greater concentration risk to the Share Insurance Fund.Specialists Support New Credit Union PowersLarger, more complex institutions require more examiners with specific specialties in certain operations—from sophisticated investments, to specialized lending, to cutting-edge technology.In addition, credit unions have requested new powers—like derivatives and asset securitization—which require enhanced supervision.I have often said that NCUA needs to keep up with the industry that we supervise. So, our budget is intended to ensure that NCUA’s supervisory expertise will keep pace with credit unions’ expanding business opportunities.Specialists are critical to identifying and resolving traditional risks such as interest rate risk, credit risk, and concentration risk, as well as new and evolving operational risks including cybersecurity threats. To address these risks with a heightened focus on efficiency, this budget would reallocate 18 existing regional staff from generalists to specialists in capital markets, real estate and business lending, and information systems.The 2015 budget will also achieve other important goals and objectives of NCUA’s Strategic Plan:Developing financial literacy and consumer protection programs;Providing guidance to small credit unions; andStrengthening cybersecurity within the agency and throughout the credit union system.It’s important to note: The nine new positions for 2015 will be offset by eliminating five general examiner positions. That’s how we arrived at a net increase of only four FTEs.NCUA Is a Leader in Budget TransparencyStakeholders may be surprised to learn that NCUA discloses considerably more information about our budget and spending than independent federal financial regulatory agencies are required to make available to the public. NCUA even provides more financial information than credit unions are required to provide to their own members.This year, although we are not required to do so, we are providing even greater detail on the NCUA budget:Our publicly posted Board Action Memorandum is twice the length it was in previous years and contains a much greater level of budget detail.For the NCUA website, we’ve disaggregated the top five budget categories that are rolled up in the Board Action Memorandum and broken down each category for all 21 NCUA offices—something we have never done before.Also for the first time, we are posting five fact sheets about the NCUA budget.The fact sheets go beyond the numbers:The first sheds light on transparency; it includes links to all the information posted on NCUA’s budget, as well as NCUA’s spending throughout the year.The second outlines the budget development process in even more detail.The third describes the Information Technology Prioritization Council—the panel I created to weigh the costs and benefits of all proposed IT projects before they are included in the budget.The fourth outlines NCUA’s procurement process, which explains how we use contractors where appropriate rather than hiring permanent FTEs.The fifth will describe major line items where we achieved budget savings for 2015.The bottom line: The 2015 budget is not only more transparent; it will cost-effectively provide NCUA with the necessary resources to achieve the agency’s mission as both regulator and insurer. The budget is designed to protect the safety and soundness of America’s federally insured credit unions and to ensure that no credit union member will lose a penny of their federally insured deposits.last_img read more

first_img Facebook Twitter Google+ Comments Published on March 10, 2010 at 12:00 pmcenter_img NEW YORK — Andy Rautins has studied up on his Big East history. As he sat in a small cubicle in the Syracuse locker room following the Orange’s 91-84 loss to Georgetown in the quarterfinals of Big East tournament Thursday, he used his acumen to put a positive spin on the upset.‘You look at previous Big East records, when they’ve gone far in the championship games and the results haven’t panned out well in the (NCAA) Tournament,’ Rautins said. ‘We’re just going to take this for what it is, refocus, re-energize and get ready to do some damage in the Tournament.’Still, despite Rautins’ optimism, there may finally be some chinks in the armor of the Orange. Syracuse is on its first losing streak of the season at the worst possible time. The team now has to answer questions about how it can fix the struggles heading into the NCAA Tournament. And it is unsure whether center Arinze Onuaku will be available to help.With the quarterfinal win, the No. 8 seed Georgetown shocked top-seeded Syracuse at Madison Square Garden. Syracuse (28-4) is the first No. 1 seed in the tournament to not a win a game since SU upset Connecticut in 2006, and will enter the NCAA Tournament on a two-game losing streak. The Orange is also now 0-for-6 in its attempts to win the tournament as the top seed.Onuaku sustained a right knee strain after a collision with Greg Monroe with 5:07 remaining in the game. An X-ray after the game came up negative, and Onuaku was walking around on crutches with a leg brace from his ankle to his thigh. His status is unknown and an MRI will be taken tomorrow, said Syracuse team physician Irving Raphael.AdvertisementThis is placeholder text‘I think this is a time where we have to come together more so than ever, as opposed to falling apart,’ Rautins said. ‘The most important part of the season is here and we put ourselves in great position to do well in the (NCAA) Tournament.’After beating Georgetown twice during the regular season, it looked like more of the same for the Orange to start the game. Big East Player of the Year Wes Johnson came out on fire, scoring eight of his 12 first-half points in the first four minutes for Syracuse. SU held a comfortable lead for the majority of the first 27 minutes of the game, jumping out to a 57-48 lead after a 3-pointer by Andy Rautins with 13:43 left. The largely pro-Syracuse crowd at the Garden roared as the Orange appeared ready to open the game up.Instead, Georgetown went on a 24-6 run that changed the complexion of the contest. The Hoyas (22-9) knocked down open shots on the wings, and scored on easy layups off Syracuse missed shots and turnovers. Syracuse forced shots, and pressed the action at times.The key player for the Hoyas was Monroe, who methodically engineered the Georgetown offense. He took it to the hoop for lay-ups, but also passed exceptionally around the perimeter and helped find open men. He finished with 15 points, 10 rebounds and seven assists.  Monroe was also involved in the play that could alter the fate of Syracuse’s season. With Georgetown leading 72-66, Monroe went up for a dunk as Onuaku tried to block him. As Onuaku came down after jumping, he collapsed to the ground after landing on his feet. He rolled around in agony on the ground, grabbing his right knee as Rautins and SU guard Scoop Jardine stood near him. Rautins held his own jersey up to his face with clenched fists before trainers helped Onuaku off the court. Monroe scored nine points in Onuaku’s absence .‘He’s a key part of our team,’ Syracuse head coach Jim Boeheim said after the game. ‘I mean, he’s had a great year and he’s a tremendous player. We hope that he’ll be fine. We don’t know.’Even without Onuaku, Syracuse had a chance at a comeback. Two SU steals led to a layup and a 3 that cut Georgetown’s lead to 85-81 with 51 seconds left. Monroe missed two free throws on the Hoyas’ end, but Jardine missed a layup on the subsequent possession and the Hoyas grabbed the rebound. Georgetown bolstered the lead to 87-81 with two free throws, and Jardine again missed a wide-open layup that all but ended the game.While Georgetown celebrated on the court after the win — a win which gives them a 7-6 edge over the Orange in head-to-head matchups in the Big East tournament — Syracuse quietly shuffled off the court. When SU returned to the locker room the mood was somber, with low voices speaking into hordes of microphones. The once seemingly invincible SU squad is now reeling heading into the NCAA Tournament, which starts in a week.The Orange had rebounded with wins following its previous three losses (Le Moyne included). Thursday was the first time Syracuse couldn’t weather the storm following a setback. And its center, a key cog in SU’s seven-man rotation, might not be available either. Yet, despite it all, the Orange remains confident. ‘The mindset that’s going to set in for us is that we very much are a lot more hungry than we were before,’ Johnson said. ‘We have been on a lot of winning streaks and for us to lose two in a row, it’s an unsettling feeling right now. I think we’ll be fine going into the Tournament.’[email protected]last_img read more