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Financial Reports

Budget Results

III. Budget Results - First Quarter 2024

Approved Budget Modifications

The 2024 Budget Resolution delegated to the Chief Financial Officer (CFO) the authority to make certain modifications to the 2024 FDIC Operating Budget. The following budget reallocations were approved by the CFO during the first quarter in accordance with the authority delegated by the Board of Directors:

  • The CFO approved the transfer of a total of $10 million ($750,000 in January from the budget of the Legal Division, $4.25 million in February from the Corporate Unassigned contingency reserve, and an additional $5 million in March from the Corporate Unassigned contingency reserve) to the budget of the Office of the Appointive Director to pay for expenses expected to be incurred in connection with the independent third-party review of the FDIC’s workplace culture being conducted for the Special Review Committee established by the Board in December 2023.
  • In February, the CFO approved the transfer of $1.1 million from the Corporate University (CU) Salaries and Compensation budget to its Outside Services-Personnel budget for the acquisition of contract support for the delivery of anti-harassment training to all FDIC employees.

There were no budget adjustments in the Receivership Funding budget component in the first quarter.

At the end of the first quarter, the Corporate Unassigned contingency reserve in the Ongoing Operations budget component had a balance of $20.75 million and the Corporate Unassigned contingency reserve in the Receivership Funding budget component had a balance of $126 million.

Approved Staffing Modifications

The 2024 Budget Resolution delegated to the CFO the authority to modify approved 2024 staffing authorizations for divisions and offices, as long as those modifications did not increase the total approved Ongoing Operations or Receivership Funding components of the 2024 FDIC Operating Budget.

The CFO approved the following adjustments to 2024 staffing authorizations during the first quarter:

  • In February, the CFO approved an increase of one permanent position in CU for an additional Personnel Psychologist to support the delivery of anti-harassment training to all FDIC employees and to address a projected long-term increase in workload related to continued enhancement of the training evaluation program, with an emphasis on improved measurement capabilities. This increased CU’s 2024 staffing authorization to 87.
  • In February and March, following a span-of-control analysis conducted annually by the Division of Finance, the CFO approved net increases to the 2024 staffing authorizations of the Division of Depositor and Consumer Protection (DCP) and the Division of Risk Management Supervision (RMS) to maintain effective first-line supervision of field examination staff in both divisions. This included four non-permanent Supervisory Examiner (SE) positions in DCP and 10 SE positions (five permanent and five non-permanent) in RMS. These changes increased the 2024 staffing authorizations of RMS and DCP to 2,812 and 916, respectively.

Subsequent to these adjustments, authorized 2024 staffing for the FDIC totaled 6,832 positions (6,492 permanent and 340 non-permanent), a net increase of 15 positions.

Spending Variances

Significant spending variances by major expense category and division/office are discussed below. Significant spending variances for the quarter ending March 31, 2024, are defined as those that either (1) exceeded the Year to Date (YTD) budget for a major expense category or division/office by more than $5 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 $15 million and represented more than 15 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 totaled $78.2 million, or 13 percent, below budget through the first quarter of 2024. There was a significant spending variance in one major expense category:

  • Spending in the Outside Services – Personnel expense category was under budget by $20.0 million, or 20 percent. The variance was largely attributable to underspending in the following organizations:
    • The Division of Information Technology (DIT) underspent its YTD budget by $9.2 million ($4.6 million for continuing operations and $4.6 million for one-time initiatives). The underspending for continuing operations resulted from expenses for data center operations that were incurred but not recognized in March. The underspending for one-time initiatives was the result of delays in project starts and contractor onboarding.
    • The Office of the Appointive Director underspent its YTD budget by approximately $3.7 million. Although work by an outside law firm on the independent third-party review of sexual harassment and workplace culture at the FDIC was well underway, invoices had not yet been submitted for the work performed as of the end of the first quarter.
    • The Legal Division underspent its YTD budget by $1.9 million because of lower-than-projected expenses for outside counsel, due largely to slower-than-projected proceedings in one major litigation matter.
    • The Division of Administration (DOA) underspent its YTD budget by $1.8 million, largely due to challenges in onboarding contractors and schedule delays for facilities-related IT projects, in particular the Building Management System Cybersecurity Review for the San Francisco Regional Office. The underspending also reflected lower-than-expected requirements for contractor support for human resources operations and implementation of the electronic Official Personnel Folder initiative.
       

Receivership Funding

The Receivership Funding component of the 2024 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.

There were significant spending variances in two major expense categories within this budget component through the end of the first quarter:

  • Spending in the Outside Services – Personnel expense category exceeded the YTD budget by $5.4 million, or 13 percent. The variance was largely attributable to the Division of Resolutions and Receiverships (DRR), which overspent its YTD budget by $11.3 million because 2023 loan servicing expenses (primarily for the Signature Bridge Bank receivership) were recorded in 2024. This overspending was partially offset by underspending of $3.9 million for outside counsel in the Legal Division due to litigation delays and underspending for contract support in DIT, CISR and DOA.
     
  • Spending in the Other Expenses category exceeded the YTD budget by $12.7 million, or 2,547 percent. This was attributable to overspending of $12.7 million by DRR, primarily because 2023 rent expenses for the Signature Bridge Bank and First Republic receiverships were recorded in 2024.

Office of Inspector General

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

Significant Spending Variances by Division/Office1

There were three organizations with significant spending variances through the end of first quarter:

  • DIT underspent its YTD budget by $22.9 million, or 19 percent, including $19.8 million in its Ongoing Operation budget and $3.1 million in its Receivership Funding budget. The biggest contributors to the underspending in the Ongoing Operations budget component were underspending of $9.2 million in the Outside Services - Personnel expense category, as explained above; underspending of $6.1 million in the Equipment expense category due to project delays and lower-than-forecasted monthly expenses for cloud services; and underspending of $3.5 million in the Salaries and Compensation expense category due to a high number of vacancies in budgeted positions. Underspending in the Receivership Funding budget component included $1.7 million in the Equipment expense category and $1.3 million in the Outside Services-Personnel expense category because of lower-than-projected expenses related to the 2023 failures.
  • DOA underspent its YTD budget by $15.1 million, or 17 percent, primarily due to underspending in the Ongoing Operations budget component. This resulted from underspending of $7.3 million in the Buildings and Leased Space expense category, largely due to delayed capital improvements projects; $3.4 million in the Equipment expense category, largely due to delays in awarding contracts for library subscriptions and supply chain delays in receiving furniture for Field Office Modernization projects; and $1.8 million in the Outside Services - Personnel expense category, as explained above.
  • DRR overspent its YTD budget by $8.3 million, or 11 percent. This was the net result of overspending of $16.9 million in the Receivership Funding budget component, partially offset by underspending of $8.6 million in the Ongoing Operations budget component. The overspending in the Receivership Funding budget component included $11.3 million in the Outside Services-Personnel expense category and $12.7 million in the Other Expenses category, as explained above. Underspending in the Ongoing Operations budget component was primarily in the Salaries and Compensation expense category due to vacancies in budgeted positions.
  • 1

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

Last Updated: June 20, 2024