Board Chairman J. Mark McWatters said some commenters said the budget was too high, but failed to propose any substantive changes.

Board member Rick Metsger said that some people wanted the budget to decrease because the number of credit unions has decreased. That idea fails to consider several factors, including the increased complexity of credit unions, he said.

Jones said that the budget reflects the agency reorganization plan, which includes the closing of two regional office. It also includes plans to research an enhanced virtual examination review program that would allow NCUA examiners to conduct more evaluations offsite.

The board also approved a new methodology it will use to calculate the Overhead Transfer Rate–the formula the NCUA uses to allocate insurance-related expenses to the Share Insurance Fund.

McWatters said that as a tax lawyer, he had expected to be able to read the current OTR methodology and understand it.

That was not the case, he said, adding that the formula is "almost unfathomable in its complexity."

Agency officials said that the new OTR will decrease that complexity.

"These changes will reduce both the complexity of the OTR methodology and the resources needed to administer it, while remaining fair and equitable to both federal credit unions and federally insured state-chartered credit unions," NCUA documents said

Specifically, the agency plans to calculate the OTR using four principles:

• The time spent examining and supervising federal credit unions is allocated as 50% insurance-related.
• All time and costs the NCUA spends supervising or evaluating the risks posed by federally insured, state-chartered credit unions or other entities that the agency does not charter or regulate is allocated as 100% insurance-related.
• The time and costs of the NCUA's role as charterer and enforcer of consumer protection laws are not charged to the OTR.
• Time and costs related to the agency's role in administering share insurance and the Share Insurance Fund is 100% charged to the OTR.