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Budget Results

Last Updated: March 21, 2024
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III. Budget Results - Fourth Quarter 2023

Approved Budget Modifications

The 2023 Budget Resolution delegated to the Chief Financial Officer (CFO) and selected other officials the authority to make certain modifications to the 2023 FDIC Operating Budget.  The CFO did not approve any budget modifications during the fourth quarter.

Approved Staffing Modifications

The 2023 Budget Resolution also delegated to the CFO the authority to modify approved 2023 staffing authorizations for divisions and offices, as long as those modifications did not increase the total approved 2023 FDIC Operating Budget.  The CFO did not approve any modifications to staffing authorizations during the fourth quarter.  The FDIC’s authorized 2023 staffing remained unchanged from the third quarter at 6,628 positions (6,325 permanent and 303 non-permanent).

Spending Variances

Significant spending variances by major expense category and division/office are discussed below. Significant spending variances for the quarter ending December 31, 2023, are defined as those that either (1) exceeded the annual budget for a major expense category or division/office; or (2) were under the annual budget for a major expense category or division/office by more than $5 million and represented more than five percent of the major expense category or total division/office budget.

Significant Spending Variances by Major Expense Category

Ongoing Operations

Overall spending for the Ongoing Operations budget component was $216.7 million, or 9 percent, below budget for 2023. There were significant spending variances in five major expense categories:

  • Spending in the Outside Services-Personnel major expense category was under budget by $58.4 million, or 15 percent. The variance was largely attributable to unused contingency reserves of $15.0 million and underspending in the following five divisions:

    • The Division of Administration (DOA) underspent its budget by $11.5 million, largely due to delays in acquiring contractor support for facilities-related IT projects and for human resources operations, as well as slower-than-expected progress on the implementation of electronic Official Personnel Folders.

    • The Division of Information Technology (DIT) underspent its budget by $9.6 million, primarily due to delays in starting some projects, the realization of cost savings on some contracts, and challenges in onboarding contractors for its infrastructure and application support contracts.

    • The Division of Resolutions and Receiverships (DRR) underspent its budget by $6.1 million due to the redirection of contractor support from activities budgeted within the Ongoing Operations budget component to bank closing activities that were expensed against the Receivership Funding budget. The Joint Venture Transaction Program also experienced contracting delays.

    • The Executive Support Offices underspent their budgets by $4.9 million, largely because media costs for the Deposit Insurance Awareness Campaign carried out by Office of Communications (OCOM) were about $4.1 million lower than projected.

    • The Office of Chief Information Security Officer (OCISO) underspent its YTD budget by $3.5 million due to contractor onboarding issues.
  • Spending in the Travel major expense category was under budget by $34.4 million, or 40 percent, primarily due to reduced examination- and training-related travel in the Division of Risk Management Supervision (RMS) and the Division of Depositor and Consumer Protection (DCP), which underspent their budgets by $22.0 million and $6.4 million, respectively.
  • Spending in the Buildings and Leased Space major expense category was under budget by $35.8 million, or 29 percent, primarily due to acquisition-related delays and slower-than-expected progress on Field Office Modernization projects and major improvement projects in Headquarters and the San Francisco Regional Office.
  • Spending in the Equipment major expense category was under budget by $18.8 million, or 12 percent, mostly attributable to delays in acquiring furniture for Field Office Modernization projects and delays in acquiring information services to support Climate-Related Financial Risk research.  In addition, DIT and OCISO spent $3.3 million and $1.8 million, respectively, less than budgeted for maintenance and subscription contracts.
  • Spending in the Outside Services-Other major expense category was under budget by $7.4 million, or 35 percent, mostly due to lower-than-projected paid media costs for the Deposit Insurance Awareness Campaign in OCOM, lower-than-projected spending on cell phones, and delays in the transition of voice communications to new technology in DIT.

Receivership Funding

The Receivership Funding component of the 2023 FDIC Operating Budget includes funding for expenses that are incurred in conjunction with institution failures and the management and disposition of the assets and liabilities of the ensuing receiverships, except for salary and benefits expenses for permanent employees assigned to the receivership management function and other expenses required to ensure readiness without regard to whether failures occur.

Overall spending for the Receivership Funding budget component was $141.4 million, or 17 percent, below budget in 2023.  The variance was largely comprised of underspending of $18.0 million in Salaries and Compensation, $40.7 million in Outside Services - Personnel, $5.6 million in Equipment, and $75.5 million in Other Expenses.  The key divisions contributing to the underspending were DRR, at $123.5 million below budget, and DIT, at $15.4 million below budget, largely because the actual costs incurred to resolve the three large regional bank failures in early 2023 were less than initially estimated.

Office of Inspector General

There were no significant spending variances through the third quarter in the 2023 Office of Inspector General (OIG) budget component.

Significant Spending Variances by Division/Office1

Ten organizations had significant spending variances for 2023:

  • DRR underspent its budget by $132.8 million, or 16 percent, including $9.3 million in its Ongoing Operations budget and $123.5 million in its Receivership Funding budget. The underspending in the Ongoing Operations budget included $6.1 million in its Outside Services-Personnel budget for the reasons stated above. The underspending in the Receivership Funding budget was due to lower–than-projected resolution costs for the three large regional bank failures.
  • DOA underspent its budget by $64.6 million, or 18 percent, including $35.5 million in its Buildings and Leased Space budget, $13.5 million in its Equipment budget, and $11.5 million in its Outside Services-Personnel budget for the reasons stated above.
  • RMS underspent its budget by $40.0 million, or 6 percent, partially attributable to underspending of $22.1 million in its Travel budget.  RMS also underspent its Salaries and Compensation budget by $14.0 million as a result of vacancies in budgeted positions during the year
  • DIT underspent its budget by $35.2 million, or 8 percent.   Underspending of $19.8 million in the Ongoing Operations budget component was attributable to both continuing operations and one-time initiatives. This included underspending of $4.7 million in its Salaries and Compensation budget, $9.6 million in its Outside Services-Personnel budget, $3.3 million in its Equipment budget, and $1.6 million in its Outside Services–Other budget for the reasons stated above.  In addition, DIT underspent its Receivership Funding budget by $15.4 million, largely due to slower progress than originally anticipated in collecting records and data from the three large regional bank failures and more efficient processing due to automation.
  • DCP underspent its budget by $15.7 million, or 7 percent. This was primarily attributable to underspending of $7.0 million in the Salaries and Compensation budget due to vacancies in budgeted positions and $6.4 million in the Travel budget due to reduced travel for examinations.
  • The Executive Support Offices underspent their budgets by $13.7 million, or 28 percent. This was primarily due to underspending in the OCOM budget for the reason stated above.
  • The Division of Complex Institution Supervision and Resolution underspent its budget by $12.9 million, or 8 percent, primarily due to underspending of $10.5 million in its Salaries and Compensation budget due to vacancies in budgeted positions.
  • The Division of Insurance and Research underspent its budget by $7.6 million, or 11 percent, primarily attributable to underspending of $5.8 million in its Salaries and Compensation budget due to vacancies in budgeted positions.
  • OCISO underspent its budget by $6.0 million, or 11 percent, primarily attributable to underspending of $3.5 million in its Outside Services–Personnel budget and $1.8 million in its Equipment budget for the reason stated above.
  • The Corporate Unassigned contingency reserve had $15 million in unused budget authority remaining at the end of the year.  That unused budget authority lapsed on December 31, 2023.

1Information on division/office variances reflects variances in the FDIC Operating Budget and does not include variances related to approved multi-year investment projects.