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Budget Results

Last Updated: December 21, 2023
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III. Budget Results - Third 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.  In August, the CFO approved adjustments to the 2023 Ongoing Operations budgets of several divisions and offices as follows:

  • The reprogramming of a total of $37,053 from regular salaries to corporate manager awards in the Division of Administration (DOA), Division of Depositor and Consumer Protection (DCP), Division of Risk Management Supervision (RMS), Division of Finance (DOF), Corporate University (CU), and Office of Communications (OCOM) to fund awards for CG supervisors who became corporate managers under the new managerial pay system implemented in June.  The awards pools for non-supervisory CG employees were not changed.
  • The realignment of $40,000 in the Legal Division from regular salaries to awards to recognize employee efforts related to the three large regional bank failures that occurred in early 2023.

Following these third quarter budget modifications, the balance in the Corporate Unassigned contingency reserve for the Ongoing Operations budget component remained unchanged at $15.0 million.  There is no contingency reserve for the Receivership Funding budget component.

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 2023 FDIC Operating Budget.  The CFO approved the following modifications to staffing authorizations during the third quarter, in accordance with that delegated authority:

  • In July, the CFO approved the following mid-year adjustments to the 2023 staffing authorizations of selected divisions and offices:
    • An increase of nine permanent and five non-permanent positions in RMS. This included seven permanent positions to establish a second Risk Monitoring section in Washington to provide enhanced monitoring and oversight of large banks, two permanent IT examiner positions, three non-permanent Assistant Regional Director positions in the Atlanta, Chicago, and Kansas City regions, and two non-permanent Case Manager positions in the Chicago Region to promote succession management.

    • An increase of nine permanent positions in DCP, including four permanent positions to address increases in the volume and complexity of examinations and consultation activities, two positions to enhance policy formulation for addressing the risks posed by technological innovations, two Special Assistants to provide support for Deputy Directors, and one position in the Administrative Operations Branch to support resource planning, recruiting, and diversity and inclusion initiatives.

    • An increase of seven permanent positions in the Division of Complex Institution Supervision and Resolution (CISR).  This included three positions to increase capacity for international coordination, two positions to increase capacity in the Qualified Financial Contracts section, and two positions in the Receivership Operations Section to augment CISR’s capacity to handle non-deposit claims in the event of a Title II failure.

    • An increase of four permanent positions in CU including a transfer of three permanent regional training specialist positions from DOA to CU, consistent with the transfer of the regional support function to CU, and one Contract Oversight Manager position to improve contract oversight and administration.

    • An increase of 106 non-permanent positions in the Division of Resolutions and Receiverships (DRR) to address the substantial post-resolution workload resulting from the three large regional bank failures that occurred in early 2023.

    • An increase of two permanent positions in the Division of Insurance and Research to increase capacity in the Large Bank Pricing Section of the Financial Risk Management Branch.

    • An increase of three permanent positions in the Office of Chief Information Security Officer (OCISO), including two positions for Information System Security Managers to support interactions with divisions and offices, and one Continuous Diagnostics Mitigation position to serve as a full-time project manager to help fortify FDIC systems and networks.

    • An increase of eight permanent positions and 15 non-permanent positions in the Legal Division to address increased workload, including post-resolution work related to the large regional bank failures that occurred in early 2023.

    • An increase of eight permanent positions and 15 non-permanent positions in the Legal Division to address increased workload, including post-resolution work related to the large regional bank failures that occurred in early 2023.

    • An increase of five permanent positions in DOF, including three positions to build enhanced cash management and funding expertise in the branch and increase capacity to support ongoing assessment workload, one accountant position to support increased receivership workload, and one position to support ongoing budget formulation and execution workload.

    • An increase of one permanent position in the Office of Minority and Women Inclusion to provide leadership for the recruiting, hiring, and retention of individuals who identify as Hispanic/Latino.

  • In August, the CFO approved the following adjustments to the 2023 staffing authorizations:
    • An increase of one permanent position in the Legal Division to address increased e-Discovery and data management workload in connection with enforcement work.

    • An increase of 79 permanent community bank examiner positions in RMS, resulting from changes to the National Examiner Staffing Model.

    Subsequent to these third quarter adjustments, authorized 2023 staffing for the Corporation totaled 6,628 (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 September 30, 2023, 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 the Ongoing Operations budget component was $180.7 million, or 11 percent, below budget through the third quarter in 2023.  There were significant spending variances in four major expense categories:

  • Spending in the Outside Services – Personnel major expense category was under budget by $35.7 million, or 13 percent.  The variance was largely attributable to underspending in the following divisions and offices:

    • The Division of Information Technology (DIT) underspent its YTD budget by $10.6 million, primarily due to delays in project starts and onboarding contracts.

    • DOA underspent its YTD budget by $8.6 million. This was mostly due to delays in awarding and staffing contracts supporting key initiatives, including upgrading facilities-related information systems and implementing electronic Official Personnel Folders (eOPF). It also reflects underspending on contracts supporting recurring operations, largely due to understaffing on human resources and acquisition services support contracts.

    • OCOM underspent its year-to-date budget by roughly $4.0 million, largely due to lower-than-expected spending for contractor support in planning the nationwide Deposit Insurance Awareness Campaign, which launched in early October.

    • DRR underspent its YTD budget by $3.6 million because expenses related to having closing teams available on a contingent basis for potential bank failures, which were budgeted in the Ongoing Operations budget component, were charged to the Receivership Funding budget component because the closing teams worked on actual bank failures. In addition, award of a contract for configuration of the Joint Venture Transaction platform was delayed to Q4.

    • OCISO underspent its YTD budget by $2.9 million due to unexpected vacancies in contractor positions supporting continuing operations.
  • Spending in the Travel major expense category was under budget by $27.3 million, or 43 percent, primarily because of lower-than-budgeted spending by RMS and DCP for exam-related travel as well as training and relocation travel.
  • Spending in the Buildings and Leased Space expense category was under budget by $27.1 million, or 31 percent, primarily due to delays by landlords in obtaining construction services for field office buildouts; delays by DOA in awarding contracts for major capital improvement projects; lower-than-expected interior construction activity in Headquarters and Regional Offices; and delays in awarding contracts for architecture and engineering and Headquarters moving and storage services.
  • Spending in the Equipment expense category was under budget by $27.0 million, or 23 percent, mostly due to delays in starting projects and awarding contracts for hardware purchases and software maintenance and subscriptions in DIT; and delays by DOA in acquiring furniture for Field Office Modernization projects and routine furniture replacement at Headquarters.

Receivership Funding

The Receivership Funding budget component 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 $63.5 million, or 13 percent, below budget through the third quarter of 2023.  There were significant spending variances in two major expense categories:

  • Spending in the Outside Services – Personnel category was over-budget by $91.0 million, or 44 percent.  This variance was primarily driven by expenses for asset sales, loan servicing, and other receivership management activities resulting from the three large regional bank failures in early 2023.  Funds will be realigned from surpluses in DRR’s Other Expenses budget to cover the shortfall.
  • Spending in the Other Expenses category was under budget by $145.6 million, or 54 percent, due in part to delays by DRR in finalizing settlement expenses for payroll, leave entitlement, and other administrative expenses for the three large regional bank failures that occurred in early 2023.

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

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

  • DRR underspent its YTD budget by $55.4 million, or 11 percent, including $7 million in its Ongoing Operations budget and $48.4 million in its Receivership Funding budget.  The underspending in the Ongoing Operations budget component included $2.4 million in the Salaries and Compensation expense category due to vacancies in budgeted permanent positions, and $3.6 million in the Outside Services-Personnel expense category, as explained above. The underspending in the Receivership Funding budget component was largely attributable to underspending in the Other Expenses category, partially offset by overspending in the Outside Services-Personnel expense category, as explained above.
  • DOA underspent its YTD budget by $51.0 million, or 19 percent.  This included underspending of $9.6 million in the Outside Services-Personnel major expense category, $27.0 million in the Buildings and Leased Space major expense category, and $10.5 million in the Equipment major expense category, for the reasons described above.
  • DIT underspent its YTD budget by a total of $41.0 million, or 13 percent in the Ongoing Operations budget component.  This included $10.6 million in the Outside Services - Personnel major expense category and $15.1 million in the Equipment major expense category for the reasons described above.  In the Receivership Funding budget component, this included $5.3 million in the Outside Services - Personnel major expense category and $4.1 million in the Equipment major expense category due to updated plans for data storage related to the three large regional bank failures in early 2023.
  • RMS underspent its YTD budget by $34.5 million, or 7 percent, primarily attributable to underspending of $15.8 million in the Salaries and Compensation major expense category due to higher-than-anticipated vacancies in budgeted positions and $16.3 million in the Travel major expense due to lower-than-projected exam travel.
  • DCP underspent its YTD budget by $13.9 million, or 9 percent, primarily attributable to underspending of $7.2 million in the Salaries and Compensation major expense category due to higher-than-anticipated vacancies in budgeted positions and $5.5 million in the Travel major expense category due to lower-than-projected exam travel.
  • The Legal Division underspent its YTD budget by $12.4 million, or 10 percent, including $8.1 million in its Ongoing Operations budget and $4.2 million in its Receivership Funding budget. The underspending in the Ongoing Operations budget component included $6.1 million in the Salaries and Compensation major expense category due to higher-than-anticipated vacancies in budgeted positions. The underspending in the Receivership Funding budget component was primarily due to the lower-than-projected litigation expenses.
  • OCOM underspent its YTD budget by $7.9 million, or 43 percent, primarily due to underspending of $4.0 million in the Outside Services - Personnel major expense category, as explained above, and $3.1 million in the Outside Services - Other major expense category, due to lower-than-projected spending on media purchases to support the Deposit Insurance Awareness Campaign.

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