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Chief Financial Officer's (CFO) Report to the Board

III. Budget Results - Second Quarter 2020

Approved Budget Modifications

The 2020 Budget Resolution delegated to the Chief Financial Officer (CFO) and selected other officials the authority to make certain modifications to the 2020 FDIC Operating Budget. The following budget reallocations were approved during the second quarter in accordance with the authority delegated by the Board of Directors:

Following these second quarter budget modifications, the balances in the Corporate Unassigned contingency reserves were $17,203,552 in the Ongoing Operations budget component and $18,917,515 in the Receivership Funding budget component.

Approved Staffing Modificatons

The 2020 Budget Resolution delegated to the CFO the authority to modify approved 2020 staffing authorizations for divisions and offices, as long as those modifications did not increase the total approved 2020 FDIC Operating Budget. 

Following these changes, authorized staffing totaled 5,770 for the Corporation (comprised of 5,765 permanent and 5 non-permanent positions).

Spending Variances

Significant spending variances by major expense category and division/office are discussed below.  Significant spending variances for the quarter ending June 30, 2020, are defined as those that either (1) exceeded the YTD budget for a major expense category or division/office by more than $2 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 $10 million and represented more than 10 percent of the major expense category or total division/office budget.

Significant Spending Variances by Major Expense Category

Ongoing Operations

There was a significant spending variance through the second quarter in the Travel expense category of the Ongoing Operations budget component.  Spending in the Travel expense category was under the YTD budget by $21.5 million, or 55 percent.  The variance in the Travel expense category was primarily attributable to FDIC’s travel restrictions and mandatory telework in response to the COVID-19 pandemic in the second quarter of 2020, which restricted most business travel including those related to onsite examination, regulatory meetings, and in-person training. The variance primarily reflects underspending by RMS ($13.8 million, or 54 percent of its 2020 YTD budget), DCP ($3.9 million, or 59 percent of its 2020 YTD budget), CU ($1.5 million, or 57 percent of its 2020 YTD budget), and CISR ($1.2 million, or 75 percent of its 2020 YTD budget).


Significant Spending Variances by Division/Office 1

Only one organization had significant spending variances through the second quarter.  The Legal Division underspent its YTD budget by $10.9 million or 13.4 percent. The variance was primarily attributable to $1.8 million in underspending in the Salaries and Compensation category in the Ongoing Operations component due to vacancies in budgeted positions and $9.0 million in underspending in the Outside Services – Personnel category in the Receivership Funding component due to settlements, a decision to perform new professional liability investigations with FDIC staff, and delays in pending litigation due to the COVID-19 pandemic.


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