NASCUS Presses NCUA To Better Track Expense of Examining FISCCUs
NASCUS is urging NCUA to track the expense of examining federally insured state-chartered credit unions to help the agency achieve even greater cost savings in its annual budget.
The comments were filed in a letter that represents additional comments on NCUA's 2006 budget, following oral comments presented at NCUA's 5th Annual Budget Briefing and Public Forum last month by NASCUS Chair Linda Jekel, director of CUs for Washington State.
NASCUS said it is encouraging the federal agency to collect and maintain data regarding the total direct cost of all on-site or offsite insurance-related activities for FISCUs by adopting some of the methods used by state regulators to track examination expenses-an effort that would help NCUA "more precisely identify costs associated with insurance oversight of FISCUS and improve the transparency in the budget process."
"Increased precision in turn would enable state regulators and NCUA to identify where cost savings could be achieved while maintaining the proper regulatory oversight of FISCUs," NASCUS wrote in its additional comments.
The trade group also noted the benefits of a consistent examination platform for both federally and privately insured credit unions, asking NCUA if it is permissible for state examiners to use NCUA-provided software to examine state-chartered, privately insured credit unions. The majority of state credit union regulatory agencies lease computers from the NCUA and use the AIRES platform in examination procedures. The use of a consistent examination platform allows the NCUA to quickly gather information on the safety and soundness of the credit union industry.