Ohio League to NCUA: Expand Remote Examinations to Control Spending
The Ohio Credit Union League has told the NCUA a focus on technological investment will better serve credit unions in the examination process. Learn why.
Letter in response to agency’s 2023 proposed budget says focus on technological investment will better serve credit unions in examination process.
In an effort to rein in spending, the NCUA should learn from the pandemic and expand remote examinations of credit unions, the Ohio Credit Union League told the agency.
“During the pandemic, NCUA effectively and efficiently pivoted to a remote examination posture out of necessity without impacting credit union safety and soundness,” league President Paul Mercer and Director of Regulatory Affairs Sean Brown wrote, in commenting on the agency’s 2023 budget proposal.
Where the NCUA Budget Stands
The NCUA has proposed an operating budget of $350 million next year, which represents a 9.6% increase over this year’s number and includes a 30% increase in spending on contracted services. The agency also wants to add 25 new positions to its staff.
A hearing was held on its budget last week, and the NCUA has been soliciting feedback on the document, with comments due Oct. 28.
Call for Technological Investment
The Ohio league suggested that the NCUA continue optimizing the success of remote examination by making technological investments opposed to hiring additional examiners.
“The increase in staff and operational expenses falls short of NCUA’s holistic desire to operate and serve credit unions in a cost-efficient manner,” the league wrote.
While NCUA officials have discussed how best to expand remote examinations, agency Chairman Todd Harper said last week that as examiners have returned to on-site exams, they have found recordkeeping deficiencies and problems with internal controls, as well as instances of fraud.