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Budget Results

Last Updated: July 27, 2023
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III. Budget Results - First Quarter 2023

Approved Budget Modifications

The 2023 Budget Resolution delegated to the Chief Financial Officer (CFO) the authority to make certain modifications to the 2023 FDIC Operating Budget. In January, the CFO approved the reallocation of about $84 million from the Corporate Unassigned contingency reserve in the Ongoing Operations budget component to the Salaries and Compensation budgets of individual divisions and offices to fund pay changes related to the Compensation Agreement finalized in January 2023.

Approved Staffing Modifications

The 2023 Budget Resolution 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 Ongoing Operations or Receivership Funding components of the 2023 FDIC Operating Budget.

  • In January, the CFO approved an increase of one authorized permanent position in the Division of Risk Management Supervision (RMS) to provide expertise on climate-related financial risks.
  • In February, the CFO approved several staffing adjustments to meet various program and mission needs:

    • An increase of one authorized non-permanent position in RMS to support succession management in the Dallas Regional Office.

    • Increase of five authorized non-permanent positions in Corporate University (CU) to support the temporary hiring of retired examiners to serve as examiner instructors in the Examiner Learning Programs Section.

    • An increase of two permanent authorized positions in the Executive Offices, one in the Office of the Vice Chairman and one in the Office of the Appointed Director, to provide for additional staff support in those offices.

    • A net increase of four SE positions in the Division of Depositor and Consumer Protection (DCP), including an increase of nine authorized permanent SE positions and a reduction of five authorized non-permanent SE positions as the result of an annual supervisory span-of-control analysis jointly conducted by DCP and DOF.

    Subsequent to these adjustments, authorized 2023 staffing for the FDIC totaled 6,328 positions (6,176 permanent and 152 non-permanent), a net increase of 18 positions.

Spending Variances

Significant spending variances by major expense category and division/office are discussed below. Significant spending variances for the quarter ending March 31, 2023, are defined as those that either (1) exceeded the YTD budget for a major expense category or division/office by more than $5 million and represented more than three percent of the major expense category or total division/office budget; or (2) were under the YTD budget for a major expense category or division/office by more than $15 million and represented more than 15 percent of the major expense category or total division/office budget.

Significant Spending Variances by Major Expense Category

Ongoing Operations

There were no significant spending variances in the first quarter in any major expense category of the Ongoing Operations budget component.

Receivership Funding

The Receivership Funding component of the 2023 FDIC Operating Budget includes funding for expenses that are incurred in connection with institution failures and the management and disposition of the assets and liabilities of the ensuing receiverships, except for the salaries and benefits of 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 $22.1 million, or 196 percent of the YTD budget. The overspending occurred primarily in the Outside Services-Personnel major expense category. Outside Services-Personnel expenses were $20.9 million, or 201 percent of the YTD budget. The variance was largely attributable to overspending in the Division of Complex Institution Supervision and Resolution (CISR) and Division of Resolutions and Receiverships (DRR) to resolve the failures of Silicon Valley Bank and Signature Bank in March 2023. Based on preliminary expense estimates for those failures and the subsequent failure of First Republic Bank, a Board case will be submitted soon to the Board of Directors requesting a substantial increase in the current 2023 Receivership Funding budget.

Office of Inspector General

There were no significant spending variances in the first quarter in any major expense category of the Office of Inspector General (OIG) budget component.

Significant Spending Variances by Division/Office1

There were two organizations with significant spending variances through the end of first quarter:

  • The Division of Information Technology (DIT) underspent its YTD budget by $20.6 million, or 19 percent, primarily attributable to underspending in the Ongoing Operations budget component. This included $9.6 million in the Equipment major expense category due to delays in the receipt of hardware purchases, lower-than-budgeted costs for some subscriptions, and misalignment of the budget to the actual timing of subscription billings and software maintenance contract renewals; $7.2 million in the Outside Services – Personnel major expense category due to delayed onboarding of contractor personnel, service credits, and project reassessment and re-prioritization; and $2.2 million in the Salaries and Compensation major expense category due to continued vacancies in budgeted positions.
  • CISR overspent its YTD budget by $12.7 million, or 47 percent, primarily attributable to overspending of $13.7 million in the Outside Services – Personnel expense category of its Receivership Funding budget, due to unbudgeted expenses for the two bank failures in March of 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.