NCUA Lowers Overhead Transfer Rate, Hikes Operating Fee: Onsite Coverage
ALEXANDRIA, Va. — The NCUA Board on Thursday marginally reduced the amount the agency takes from the NCUSIF to fund its operations and somewhat increased the amount it charges federally chartered credit unions.
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Debbie Matz and Michael Fryzel voted to approve an overhead transfer rate of 59.1%, a small decrease from the 59.3% that the agency used in 2012. The overhead transfer rate is the amount of its budget that the agency takes from the NCUSIF to fund its oversight and management of the fund.
The agency cited increase clarity and improved methodology in the way it gathers data, noting that it had implemented the recommendations from a 2009 PriceWaterhouseCoopers study into how it calculates the rate into this year's calculations.
“PricewaterhouseCoopers recommended enhancements documenting the allocation factors tied to insurance-related activities,” the agency wrote in a memo supporting the move. “In response, we required each office to develop procedures for monitoring activity as it relates to ‘insurance’ related activities versus ‘regulatory’ related activities and incorporated the results.”
That overhead transfer rate reduction, combined with an increase in overall credit union assets by a forecast 6.5% and a decision to not assess an operating fee on credit unions with less than $1million in assets, led the agency to increase the operating fee on federal credit unions by 0.24%.