Wednesday, November 16, 2016

The NCUA Budget Process: Part 7

NCUA Budget Proposal

We need to take a look at one other important budget document provided for review by the NCUA: The 2017 -2018 Budget Proposal (the"NBP"presentation made by Mr. Mark Treichel, Executive Director, and Mr. Rendell Jones, CFO to the last NCUA Board. [here's the link]. It's a "dog and pony" powerpoint so it won't take too much of your time.

The NBP runs forty three pages and presents much
As an alternative to the budget,
you could...
important information, which is supplemented by the greater detail in the 2017/2018 Line Item Budget Summary [here's that link]. But don't waste much time on that at this point  - regardless of your situation in life you have much better, more important things to things to do. (Must I repeat?: "Life is short, drink champagne!")

You do need to focus on and consider 
the first 8 Charts...

Chart 1: Drop in # of CUs to 5,887 (pg. 2)
... from @13,000 - a quarter century of unrelenting decline -
could this be a trend?

Chart 2:  Rise in CU Membership & Assets (pg. 3)
... what does this have to do with the price of bread? 
Is there some plan to charge for NCUA services on a per member basis?

Chart 3: The # of Large CUs (+$500M) Is Rising (pg. 4)
... now 494 - a quarter century of unrelenting rise -
could this be a trend?
Chart 4:  Large CU Assets & Members (pg. 5)
... the 494 CUs control 73% of assets and 66% of members -
those 494 CUs represent only 8% of all CUs.

Chart 5:  CUs Offer More Complex Services (pg. 6)
... really? Could you share your definition of "complex"?
And how many CUs actually offer that "complexity" .

Chart 6:  Larger CUs Offer More Complex Services (pg. 7)
... would one have expected otherwise?
Confirms that the undefined "complexity" is concentrated in only a small # of CUs - right?

Chart 7:  NCUA Budget Has Dropped Per $ of CU Assets (pg. 8)
... but isn't the NCUA budget actually up by 100% ($150 million) over he last five years?
Is the NCUA budget really "correlated" to CU asset growth?
Could you please prove that hypothesis?

Chart 8:  NCUA Budget vs. CU Assets vs. FDIC/OCC/FED Costs (pg. 9)
... What to say other than OMG! This one is simply "silly, silly".
Definitely budgetary fissilinguality! 
(... that's short for "B.S.")

Smells "fissy"
to me!

Is this presentation an example of NCUA's new commitment to budget transparency?

Where do the NCUA"budgeteers" deal with what is clearly and critically ahead in our future?

Your thoughts?


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