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Budget Results

Last Updated: December 15, 2022
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III. Budget Results - Third Quarter 2022

Approved Budget Modifications

The 2022 Budget Resolution delegated to the Chief Financial Officer (CFO) and selected other officials the authority to make certain modifications to the 2022 FDIC Operating Budget. The following budget reallocations were approved during the third quarter by the CFO in accordance with the authority delegated by the Board of Directors:

  • In July, the CFO approved adjustments to the 2022 Ongoing Operations budgets of several divisions and offices, as follows:
    • A transfer of $1,054 from the Office of Minority and Women Inclusion (OMWI) to Division of Administration (DOA) to support the re-alignment of the Reasonable Accommodations program from OMWI to DOA.

    • A transfer of $4.1 million from the FDIC Tech Lab (FDITECH) budget to the Division of Information Technology (DIT) to support the re-alignment of FDITECH into DIT.

At the end of the third quarter, the balances in the Corporate Unassigned contingency reserve for the Ongoing Operations and Receivership Funding budget components remained unchanged at $36.7 million and $21.2 million, respectively.

Approved Staffing Modifications

The 2022 Budget Resolution delegated to the CFO the authority to modify approved 2022 staffing authorizations for divisions and offices, as long as those modifications did not increase the total approved 2022 FDIC Operating Budget. The CFO approved the following modifications to staffing authorizations during the third quarter, in accordance with the authority delegated by the Board of Directors:

  • In July, the CFO approved the following adjustments to the 2022 staffing authorizations of the organizations reporting to the Chief Information Officer:

    • A transfer of one permanent authorized position from DIT to the Office of the Chief Information Security Officer (OCISO) to enhance the Information Systems Security Management (ISSM) program in OCISO. As a result, DIT’s staffing authorization decreased from 322 to 321 positions, and OCISO’s staffing authorization increased from 53 to 54 positions.

    • A transfer of 12 permanent authorized positions from FDITECH to DIT to reflect the previously-approved re-alignment of FDITECH into DIT. This increased DIT’s 2022 staffing authorization from 321 to 333 positions and eliminated the separate staffing authorization for FDITECH.
  • In August, the CFO approved the following adjustments to the 2022 staffing authorizations as a result of the mid-year budget and staffing reviews conducted by divisions and offices:
    • An increase of 25 permanent positions and 101 non-permanent position in RMS. This included seven permanent positions to establish a new Emerging Technology Section; seven permanent positions to establish a new Climate Financial Risk Section; eight permanent positions to add examination staffing for large and complex banks in the Continuous Examination Program; two permanent management information specialist (MIS) positions in the regional offices; one permanent administrative specialist position in the Washington office; and one non-permanent assistant regional director position in the New York Region. In addition, 100 non-permanent examination positions were authorized to permit RMS to begin recruiting and filling positions that are projected to be needed to meet its statutory 2023 examination responsibilities. As a result, RMS’s 2022 total staffing authorization increased from 2,434 to 2,560 positions (2,429 permanent, 131 non-permanent).

    • An increase of 14 permanent positions in DCP, including four permanent positions to address increases in the volume and complexity of Headquarters consultations on examination issues referred by the regional offices, eight positions to provide analytical support for compliance examinations and increased staffing for the consumer financial research program in conjunction with its transfer from the Division of Insurance and Research (DIR), and two administrative and resource management support positions. As a result, DCP’s 2022 total staffing authorization increased from 795 to 809 positions (798 permanent, 11 non-permanent).

    • An increase of 13 permanent positions in the Division of Complex Institution Supervision and Resolution (CISR). This included four positions to provide specific expertise on central counterparties (CCPs) and nine positions to begin implementation of a substantially expanded organizational structure for resolution planning (with additional positions to be requested in the 2023 FDIC Operating Budget). As a result, CISR’s 2022 total staffing authorization increased from 328 to 341 positions (338 permanent, 3 non-permanent).

    • An increase of seven permanent positions in Corporate University (CU) including two permanent managerial positions to reduce current supervisory spans of control and five permanent positions to replace employees on temporary rotational details with CU staff servicing multiple divisions and offices. As a result, CU’s 2022 total staffing authorization increased from 67 to 74 permanent positions.

    • An increase of three permanent positions in DOA to enhance contract administration staffing in the Acquisition Services Branch in response to recent GAO and OIG audit findings relating to contract oversight. As a result, DOA’s 2022 total staffing authorization increased from 406 to 409 positions (408 permanent, 1 non-permanent).

    • Several internal adjustments that resulted in no net change to the current staffing authorization of 28 positions for the Executive Offices.
  • In August, the CFO also approved the realignment of authorized positions to reflect the transfer of functions among divisions and offices:
    • The transfer of five permanent position from DIR to DCP in conjunction with the transfer of the consumer financial research function from DIR to DCP. As a result, DIR’s total staffing authorization decreased to 219 positions and DCP’s total staffing authorization increased to 814 positions.

    • The transfer of one permanent position from OMWI to DOA to re-align the Reasonable Accommodation (RA) program from OMWI to DOA. As a result, OMWI’s staffing authorization decreased from 32 to 31, and DOA’s staffing authorization increased from 409 to 410 positions.

Subsequent to these third quarter adjustments, the FDIC’s authorized 2022 staffing totaled 6,090 (5,932 permanent and 158 non-permanent), a net increase of 163 positions (62 permanent, 101 non-permanent).

Spending Variances

Significant spending variances by major expense category and division/office are discussed below. Significant spending variances for the quarter ending September 30, 2022, are defined as those that either (1) exceeded the YTD budget for a major expense category or division/office by more than $1 million and represented more than two 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 $7 million and represented more than seven percent of the major expense category or total division/office budget.

Significant Spending Variances by Major Expense Category

Ongoing Operations

Overall spending for Ongoing Operations totaled $205.3 million, or 13 percent, below budget through the third quarter of 2022.  There were significant spending variances in five major expense categories:

  • Salaries and Compensation spending was under budget by $76.1 million, or seven percent, due to the continued high number of vacancies in budgeted positions across the FDIC.
  • Outside Services-Personnel spending was under budget by $38.7 million, or 16 percent. The variance was largely attributable to underspending in five divisions:

    • DIT underspent its YTD budget by $16.0 million. This reflected underspending for continuing operations attributable to cost reductions in the infrastructure services area and delays in the onboarding of contractors as well as delayed project starts for planned new initiatives.

    • DOA underspent its YTD budget by $7.1 million, largely due to reductions in on-site service levels in conjunction with expanded telework, reduced contract spending for human resources functions and initiatives, and delays in planned contract spending to support crisis readiness planning and facilities modernization.  

    • CISR underspent its YTD budget by $3.4 million, largely due to delays in awarding contracts for human resources management, franchise marketing support, and communications advisory services.

    • The Legal Division (Legal) underspent its YTD budget by $3.3 million, mostly due to lower-than-anticipated litigation expenses resulting from delays in court proceedings that were outside of the FDIC’s control.  Legal anticipates litigation activity will return to projected levels in 2023.

    • The Division of Resolutions and Receiverships (DRR) underspent its YTD budget by $1.5 million due to delays in awarding contracts for advisory services, IT security and privacy support, and an asset and portfolio management platform.  Delays were also encountered in completing security reviews required to obtain from the Chief Information Officer a required Authority to Operate (ATO) for contracts for crypto asset assistance, an ORE oil and gas auctioneering platform, and imaging and indexing vendors.
  • Travel spending was under budget by $36.5 million, or 80 percent, due to underspending in all organizations as a result of pandemic-related travel restrictions that extended to September 2022. The Travel budget was based on an assumption that the FDIC would return to normal travel beginning in the second quarter of 2022.
  • Buildings and Leased Space spending was under budget by $32.0 million, or 28 percent, primarily due to delays in planned Field Office Modernization projects, slower-than-anticipated progress on Headquarters and San Francisco Regional Office capital improvement projects, and delays in implementing the Headquarters space consolidation strategy. 
  • Equipment spending was under budget by $14.0 million, or 13 percent, mostly due to contracting and supply chain issues in DIT, delays in purchasing furniture and equipment for planned field office modernization projects, and delays in the development of the Virtual Onboarding Platform in DOA.

Receivership Funding

The Receivership Funding component of the 2022 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 totaled $16.3 million, or 45 percent, below budget through the third quarter in 2022.  There was a significant spending variance in the Outside Services – Personnel expense category of $14.3 million, or 44 percent. The variance was largely attributable to underspending in DRR and DIT due to lower-than-budgeted bank failure activity and reduced expenses in Legal resulting from litigation delays and cost savings realized from handling matters in-house to reduce the use of outside counsel.

Office of Inspector General

There were no significant spending variances through the third quarter of the 2022 Office of Inspector General (OIG) budget component. 

Significant Spending Variances by Division/Office1

There were seven organizations with significant spending variances through the end of third quarter:

  • DOA underspent its YTD budget by $53.9 million, or 20 percent, including $31.8 million for Buildings and Leased Space, $7.1 million for Outside Services-Personnel, and $5.5 million for Equipment for the reasons stated above; and $7.0 million for Salaries and Compensation due to unfilled vacancies in budgeted positions.
  • The Division of Risk Management Supervision (RMS) underspent its YTD budget by $49.3 million, or 11 percent, primarily attributable to underspending of $24.1 million for Salaries and Compensation due to higher-than-anticipated vacancies in budgeted positions and $23.8 million for Travel due to pandemic-related travel restrictions.
  • DIT underspent its YTD budget by $35.9 million, or 13 percent, primarily attributable to underspending in the Ongoing Operations budget component. This included $16.0 million for Outside Services - Personnel and $7.8 million for Equipment for the reasons stated above; and $3.6 million for Outside Services - Other due to lower-than-projected spending on cell phones and delays in the transition of voice communications to new technology.  DIT also underspent its Outside Services-Personnel budget in the Receivership Funding budget component by $3.5 million due to lower-than-projected bank failure activity.
  • DCP underspent its YTD budget by $17.4 million, or 12 percent, primarily attributable to underspending of $9.3 million for Salaries and Compensation due to higher-than-anticipated vacancies in budgeted positions and $6.6 million for Travel due to pandemic-related travel restrictions.
  • DRR underspent its YTD budget by $16.4 million, or 17 percent, including $8 million in its Ongoing Operations budget and $8.4 million in its Receivership Funding budget.  The underspending in the Ongoing Operations budget component included $4.7 million for Salaries and Compensation due to vacancies in budgeted positions, $2.3 million for Outside Services-Personnel due to delays in awarding several contracts and starting various projects; and $900,000 for Travel due to pandemic-related travel restrictions. The underspending in the Receivership Funding budget component included $6.9 million for Outside Services-Personnel, $780,000 for Other Expenses, and $208,000 for Travel, all due to lower–than-budgeted bank failure activity.
  • Legal underspent its YTD budget by $13.3 million, or 11 percent, including $9.6 million in its Ongoing Operations budget and $3.7 million in its Receivership Funding budget.  The underspending in the Ongoing Operations budget component included $5.5 million for Salaries and Compensation due to higher-than-anticipated vacancies in budgeted positions and $3.3 million for Outside Services-Personnel due to lower-than-anticipated litigation expenses resulting from delays in court proceedings.  The spending variance in the Receivership Funding budget component was primarily due to underspending of $3.7 million for Outside Services-Personnel for the same reason.
  • CISR underspent its YTD budget by $12.4 million, or 16 percent, primarily due to the underspending of $7.5 million in its Salaries and Compensation budget due to higher-than-projected vacancies in budgeted positions, $3.4 million in the Outside Services-Personnel budgeted due to delays in planned contract awards, and $1.4 million in the Travel budget due to pandemic-related travel restrictions.

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