Continued, careful management of NCUA operational costs needed
It is essential the NCUA act as a prudent steward of credit unions’ funds, particularly with respect to travel-related expenses. Responding to the agency’s request for comment on its Travel Management Center, America’s Credit Unions Regulatory Advocacy Senior Counsel Luke Martone filed detailed recommendations Monday.
The request provides America’s Credit Unions an opportunity to address broader concerns about the NCUA’s travel-related spending.
“America’s Credit Unions has long urged the agency to manage costs of its operations carefully—particularly in areas such as travel, where efficiencies and savings are both possible and necessary,” Martone wrote. “Agency staff must have the necessary resources and flexibility to travel as needed to effectively carry out their responsibilities, including ensuring the safety and soundness of the credit union system and overseeing the National Credit Union Share Insurance Fund.”
Recommendations include:
- Using a hybrid model that relies more heavily on remote processes but does not eliminate on-site visits entirely would help strike a balance between oversight, efficiency, and cost savings;
- Trim travel-related expenses elsewhere, such as the SIF Administrative Expenses Budget, which saw a roughly 10% increase from last year’s operating budget ($530,000);
- Contain travel by expanding virtual training options;
- Evaluate other categories of travel—such as conference attendance, staff retreats, and inter-office meetings—to ensure they are both mission-critical and cost-effective; and
- Implement a regular internal review of its travel management practices and policies to ensure they remain cost-effective.
America’s Credit Unions will continue to urge the NCUA to renew its commitment to reducing travel-related expenses by expanding the use of off-site examinations where appropriate given a credit union’s risk profile and operational complexity.
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