LSCU learns budget cuts affect NCUA
Sources close to the LSCU provided details on an Office of Management and Budget (OMB) memo sent Wednesday to all federal departments and agencies, including NCUA, directing them to look for “surgical” cuts and new ways to save money. The memo, “Comprehensive Plan for Reforming the Federal Government and Reducing the Federal Civilian Workforce,” also instructs agencies on how to come up with “reform plans,” cost-cutting strategies that will likely include shrinking, scrapping, or merging nonessential functions.
Agencies are being told to immediately plan for big cutbacks as part of the fiscal 2018 budget process. A final draft of each agency’s “reform plan” will be due in June. Meetings with OMB to flesh out those plans will begin in July. Agencies will submit final plans as part of their fiscal 2019 budget proposals, with the goal of tracking process starting in February 2018.
The LSCU source says the NCUA, “is going to look at shrinking the number of Regions (from 5 to 4) and will likely expand its virtual exam program. Also, the Asset Management and Control Center (AMAC), the little known NCUA department located in Austin, TX, will likely be moved to Alexandria.”
The planned changes to the NCUA exam appeal process, which were expected to be unveiled at next week’s Board meeting, are now being pushed to the May Board meeting. Sources say two Board members were close on a final agreement, but ultimately decided “they weren’t quite ready.”
The changes are likely to expand a credit union’s ability to contest exam findings and may allow credit unions to involve outside legal and accounting experts during appeal meetings. This could be a very big plus for credit unions.
The LSCU will keep you updated as more is learned.