NCUA approves 2019-20 budget, proposes bonds rule

The NCUA board approved the agency’s 2019 and 2020 operating budget at its Nov. 15 meeting, in addition to issuing a proposed rule on fidelity bonds.

The board approved:

  • Operating Fund Budget: 2019 – $304.4 million and 1,173 FTEs; 2020 – $316.2 million and 1,173 FTEs;
  • Capital Budget: 2019 – $22 million; 2020 – $18.6 million; and
  • Share Insurance Fund Administrative Budget: 2019 – $8.4 million and five FTEs; 2020 – $9.1 million and five FTEs.

According to NCUA staff, the proposal on fidelity bonds has four purposes:

  • Strengthen a board of directors’ oversight of a credit union’s fidelity bond coverage;
  • Ensure there is an adequate period to discover and file covered claims following a credit union’s liquidation;
  • Formalize a 2017 Office of General Counsel legal opinion that permits a natural person credit union’s fidelity bond to include coverage for certain credit union service organizations; and
  • Clarify the documents subject to the NCUA Board’s approval and require all bond forms receive the NCUA board’s approval every ten years.

The meeting also featured a quarterly update on the National Credit Union Share Insurance Fund.