As Prepared for Delivery on January 26, 2023
Thank you, Melissa and Lindsey, for your presentation of the agency’s 2023 Annual Performance Plan. Also, thank you to Eugene Schied and the rest of the team in the Office of the Chief Financial Officer for your diligent and collaborative efforts in preparing the Annual Performance Plan for the NCUA Board’s consideration today. And, thank you to my fellow Board members, Vice Chairman Hauptman and Board Member Hood, for your thoughtful comments, additions, and modifications to this effective management tool.
The NCUA’s 2023 Annual Performance Plan includes performance measures that link directly to the NCUA’s 2022–2026 Strategic Plan (opens new window). It also outlines how the agency will achieve its core objectives and fulfill its mission of protecting the system of cooperative credit and its member-owners through effective chartering, supervision, regulation, and insurance.
In looking at the numbers behind the 2023 Annual Performance Plan, we have 3 strategic goals supported by 10 strategic objectives and 19 performance goals. To meet these goals and objectives, the NCUA has identified 45 indicators to measure performance.
This year, the NCUA will pay particular attention to liquidity risk, interest rate risk, and credit risk, as noted in the agency’s recently announced 2023 supervisory priorities. And, the agency will once again focus on ever-present cybersecurity threats, not only within credit unions but also within the broader financial system. The implementation of this plan will contribute to our success in addressing these risks.
Throughout the year, the NCUA will also continue to adjust its examination program and operations to maintain safety and soundness, protect consumers, and ensure compliance with anti-money laundering laws. And, through the Community Development Revolving Loan Fund and other initiatives, the NCUA will encourage credit unions to expand access to safe, fair, and affordable financial products and services to underserved communities and populations.
With that said, I do have a few questions for staff about this performance plan. The first relates to transparency and accountability. After the Board votes today, it’s important to understand what comes next. How will we ensure accountability and transparency regarding the actions and indicators outlined in this plan?
Thank you for that information. It’s good to know that stakeholders will be able to see how we perform and where to find that information. I also know that the quarterly updates that your office compiles will assist the NCUA Board and management team in tracking progress and taking action if things start to go offtrack. Still, it’s important to remember that while some of these goals are must-do, others are stretch goals designed to push performance.
One of the must-do goals for me is the new metric for onboarding 70 new examiners, positions that have already been approved by the Board. In recent years, we have seen an increase in examiner vacancies. Too many vacancies could have real consequences for credit unions and the agency going forward. Would you elaborate on how you set this goal, why it’s important to achieve this indicator, and what actions are planned to ensure its successful implementation?
Thank you. Examiners affect much of what the agency does and achieves, so it’s important that we have a continual pipeline of new examiners coming into the agency. New examiners will learn from our more seasoned team members, and those new examiners will eventually become principal examiners, specialists, problem case officers, supervisory examiners, division directors, and even executives. So, by replenishing our examiner workforce ranks, we will keep that pipeline flowing to achieve organizational success and an orderly succession in the years ahead.
Melissa and Lindsey, I have one last question. Why did we include a new consumer financial education measure in this plan and how will we measure performance?
Thank you. Consumer financial education and literacy are very important to me, so I am pleased that we have identified this new performance metric. I, for one, will closely monitor our performance in this area in the year ahead. This is another must-do goal for me.
On a final note, it’s important to remember that much of our success in implementing this performance plan will rely on the outstanding women and men who work for the NCUA, and I have no doubt that they will rise up to meet any implementation challenges that may arise.
That concludes my remarks. I now recognize Vice Chairman Hauptman.