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Budget Results

Last Updated: April 3, 2023
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III. Budget Results - Fourth 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 CFO approved one budget reallocation during the fourth quarter, in accordance with the authority delegated by the Board of Directors:

  • In October, the CFO approved increases to the 2022 Ongoing Operations Salaries and Compensation budgets of the Offices of the Chief Information Security Officer (OCISO), the Ombudsman (OO), and Financial Institution Adjudication (OFIA) to cover higher-than-projected benefits costs and to two Executive Offices to cover the salary and benefits costs of detailees. These increases were offset by reductions to the budgets of the Deputy to the Chairman for Policy and the Division of Risk Management Supervision (RMS), both of which had projected budget surpluses.

Following these fourth quarter budget adjustments, the balances in the Corporate Unassigned contingency reserve remained unchanged at $36.7 million for the Ongoing Operations budget component and $21.2 million for the Receivership Funding budget component.

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 did not approve any modification to staffing authorizations during the fourth quarter.

At the end of the year, the FDIC’s authorized 2022 staffing remained unchanged from the third quarter at 6,090 positions (5,932 permanent and 158 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, 2022, 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

The overall spending variance for Ongoing Operations totaled $284.2 million, or 13 percent, below budget for 2022. There were significant spending variances in six of seven major expense categories:

  • Salaries and Compensation spending was under budget by $79.3 million, or six percent, due to the high number of vacancies in budgeted positions across the FDIC throughout the year.
  • Outside Services - Personnel spending was under budget by $97.0 million, or 26 percent. The variance was largely attributable to unused contingency reserves of $36.7 million and underspending in the following six divisions:

    • The Division of Information Technology (DIT) underspent its budget by $24.6 million, including $11.6 million in underspending due to delays in starting planned new initiatives; as well as $13 million in underspending for recurring operations as a result of cost reductions and delays in contractor onboarding.

    • The Division of Administration (DOA) underspent its budget by $10.6 million, largely due to reductions in on-site service levels in conjunction with expanded telework, lower-than-budgeted contract spending for human resources functions and initiatives, and delays in planned contract spending to support crisis readiness planning and facilities modernization.  

    • The Legal Division (Legal) underspent its budget by $4.8 million, mostly attributable to lower-than-projected litigation expenses due to COVID pandemic-related delays, handling litigated cases in-house, and project deferral to 2023.

    • The Division of Complex Institution Supervision and Resolution (CISR) underspent its 2022 budget by $4.8 million, largely due to delays in awarding contracts for human resources management, franchise marketing support, and communications advisory services.

    • OCISO underspent its budget by $4.5 million, largely due to lower than anticipated costs for security reviews, lower-than-budgeted expenses for contract transitions, and project delays.

    • The Division of Resolutions and Receiverships (DRR) underspent its budget by $3.6 million, largely due to delays in awarding contracts for advisory services, IT security and privacy support, an asset and portfolio management platform, crypto asset assistance, an ORE oil and gas auctioneering platform, and imaging and indexing vendors.
  • Travel spending was under budget by $44.5 million, or 69 percent, due to underspending in all organizations as the result of pandemic-related travel restrictions that extended through the first nine months of 2022.
  • Buildings and Leased Space spending was under budget by $33.7 million, or 23 percent, primarily due to delays or slower-than-anticipated progress in Headquarters and Regional Office capital improvement projects, Field Office Modernization projects, and Headquarters space consolidation projects.  Major factors causing delays included lengthy negotiations with NTEU on space plans, delays in building permitting and labor contracting, and supply chain issues.
  • Equipment spending was under budget by $19.9 million, or 14 percent, primarily attributable to reduced furniture and equipment purchases for the F Street Modernization and other Headquarters space modernization projects in DOA; delays in the development of Virtual Onboarding Platform modules in DOA; delays in Field Office Modernization projects due to supply chain issues in both DOA and DIT; and cost optimization of hardware maintenance agreements and lower-than-projected wide area network transition costs in DIT.
  • Outside Services - Other spending was under budget by $5.5 million, or 30 percent, mostly due to delays in the transition of voice communications to new technology in DIT and cost savings on cell phones in DIT.

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 in 2022 totaled $24.5 million, or 67 percent below budget.  Almost all of the variance occurred in the Outside Services – Personnel major expense category, for which spending was under budget by $47.9 million, or 68 percent. This included $21.2 million in unused contingency reserves; $12.1 million in underspending in the Legal Division as a result of lower-than-projected litigation expenses; and $14.6 million in underspending in DRR, DIT and DOA due to lower-than-budgeted bank failure activity.

Office of Inspector General

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

Significant Spending Variances by Division/Office1

Ten organizations had significant spending variances for 2022:

  • DOA underspent its budget by $65.4 million, or 18 percent, primarily in the Ongoing Operations budget component, including $33.5 million in its Buildings and Leased Space budget, $11.5 million in its Equipment budget, $10.6 million in its Outside Services-Personnel budget, and $6.9 million in its Salaries and Compensation budget for the reasons stated above.
  • The Division of Risk Management Supervision (RMS) underspent its budget by $52.3 million, or nine percent, in the Ongoing Operations budget component, primarily attributable to underspending of $29.7 million in its Travel budget and $20.9 million in its Salaries and Compensation budget for the reasons stated above. In addition, RMS underspent $1.3 million in its Other Expenses budget due to underuse of Personal Learning Account (PLA) funding as a result of travel restrictions and workload issues.
  • DIT underspent its budget by $47.0 million, or 12 percent, primarily attributable to underspending in the Ongoing Operations budget component. This included underspending of $24.6 million in its Outside Services - Personnel budget, $7.6 million in its Equipment budget, $5.0 million in its Salaries and Compensation budget, and $4.3 million in the Outside Services – Other budget for the reasons stated above. In addition, DIT underspent its Outside Services-Personnel budget in the Receivership Funding budget component by $4.4 million due to lower-than-projected bank failure activity.
  • The Legal Division underspent its budget by $24.3 million, or 15 percent, including $12.1 million in its Ongoing Operations budget and $12.2 million in its Receivership Funding budget. The underspending in the Ongoing Operations budget component included $6.1 million in its Salaries and Compensation budget and $4.8 million in the Outside Services-Personnel budget for the reasons stated above. The underspending in the Receivership Funding budget was mostly in its Outside Services-Personnel budget ($12.1 million) because of the absence of bank failures, pandemic-related and other court-imposed delays in litigation, and the handling of a significant number of cases in-house.
  • DRR underspent its budget by $21.0 million, or 16 percent, including $9.5 million in its Ongoing Operations budget and $11.5 million in its Receivership Funding budget. The underspending in the Ongoing Operations budget included $4.9 million in its Salaries and Compensation budget, $3.6 million in its Outside Services-Personnel budget and $841,000 in its Travel budget for the reasons stated above. The underspending in the Receivership Funding budget included $9.5 million in its Outside Services-Personnel budget, $1.0 million in its Other Expenses budget, and $270,000 in its Travel budget, all due to lower–than-projected bank failure activity.
  • The Division of Depositor and Consumer Protection (DCP) underspent its budget by $17.5 million, or nine percent, in the Ongoing Operations budget component. This was primarily attributable to underspending of $8.0 million in the Salaries and Compensation budget and $7.3 million in the Travel budget for the reasons stated above.
  • CISR underspent its budget by $16.0 million, or 15 percent, in the Ongoing Operations budget component, primarily due to underspending of $9.3 million in its Salaries and Compensation budget, $4.8 million in the Outside Services-Personnel budget, and $1.7 million in the Travel budget for the reasons stated above.
  • The Division of Insurance and Research (DIR) underspent its budget by $7.8 million, or 12 percent, in the Ongoing Operations budget component, primarily attributable to underspending of $5.9 million in its Salaries and Compensation budget and $830,000 in its Travel budget for the reasons stated above.
  • The Executive Support Offices (EXS) underspent their budgets by $6.8 million, or 18 percent, in the Ongoing Operations budget component. This was primarily due to underspending of $3.4 million in its Salaries and Compensation budget for the reason stated above and $2.1 million in its Outside Services-Personnel budget due to a delay in the start of the Web Content Management System (CMS) pilot project and lower-than-anticipated expenses for DEIA Training, Consulting and Outreach events.
  • OCISO underspent its budget by $5.3 million, or 11 percent, primarily in the Ongoing Operations budget component, largely attributable to underspending of $4.5 million in its Outside Services - Personnel budget for the reasons stated above.

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