2017 Annual Report
IV. Budget and Spending
FDIC OPERATING BUDGET
The FDIC segregates its corporate operating budget and expenses into three discrete components: ongoing operations, receivership funding, and the Office of Inspector General (OIG). The receivership funding component represents expenses resulting from financial institution failures and is, therefore, largely driven by external forces and is less controllable and estimable. FDIC operating expenditures totaled $1.9 billion in 2017, including $1.7 billion in ongoing operations, $221 million in receivership funding, and $35 million for the OIG. This represented approximately 92 percent of the approved budget for ongoing operations, 74 percent of the approved budget for receivership funding, and 95 percent of the approved budget for the OIG for the year.
The approved 2018 FDIC Operating Budget of approximately $2.1 billion consists of $1.8 billion for ongoing operations, $225 million for receivership funding, and $40 million for the OIG. The level of approved ongoing operations budget for 2018 is approximately $6 million (0.3 percent) higher than the 2017 ongoing operations budget, while the approved receivership funding budget is $75 million (25 percent) lower than the 2017 receivership funding budget. The 2018 OIG budget is $3 million (9 percent) higher than the 2017 OIG budget.
As in prior years, the 2018 budget was formulated primarily on the basis of an analysis of projected workload for each of the Corporation’s three major business lines and its program support functions. The most significant factor contributing to the decrease in the FDIC Operating Budget is the improving health of the industry and the resultant reduction in failure related workload. Although savings in this area are being realized, the 2018 receivership funding budget provides resources for contractor support as well as non-permanent staffing for DRR, the Legal Division, and other organizations should workload in these areas require an immediate response.
FDIC EXPENDITURES 2008–2017
Dollars in Millions
The FDIC’s Strategic Plan and Annual Performance Plan provide the basis for annual planning and budgeting for needed resources. The 2017 aggregate budget (for ongoing operations, receivership funding, OIG, and investment spending) was $2.2 billion, while actual expenditures for the year were $1.9 billion, about $18 million less than 2016 expenditures.
Over the past decade the FDIC’s expenditures have varied in response to workload. During the last several years, expenditures have fallen, largely due to decreasing resolution and receivership activity. To a lesser extent decreased expenses have resulted from supervision-related costs associated with the oversight of fewer troubled institutions.