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Fourth Quarter 2024

Budget Results - Fourth Quarter 2024

III. Budget Results - Fourth Quarter 2024

Approved Budget Modifications

The 2024 Budget Resolution delegated to the Chief Financial Officer (CFO) and selected other officials the authority to make certain modifications to the 2024 FDIC Operating Budget.

  • In December, the CFO approved the following adjustments to the 2024 Ongoing Operations budgets of selected executive offices as follows:
    • The reallocation of $880 thousand from the Corporate Unassigned contingency reserve to fund the Office of Professional Conduct (OPC), established by the Board of Directors to intake, investigate, and report on complaints of harassment and interpersonal misconduct, and to determine and enforce discipline against anyone violating the FDIC’s anti-harassment or anti-retaliation policies.
    • The reallocation of $220 thousand from the Corporate Unassigned contingency reserve to fund the Office of Equal Employment Opportunity (OEEO), established by the Board of Directors to intake, investigate, and report complaints of discrimination under the laws enforced by the Equal Employment Opportunity Commission.  

Subsequent to these fourth quarter adjustments, the Corporate Unassigned contingency reserve in the Ongoing Operations budget component decreased by $1.1 million, from $19.4 million to $18.3 million.

Approved Staffing Modifications

The 2024 Budget Resolution also 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 2024 FDIC Operating Budget. The CFO approved the following modifications to staffing authorizations during the fourth quarter, in accordance with the authority delegated by the Board of Directors:

  • In December, the CFO approved the following adjustments to the 2024 staffing authorizations of selected executive offices:

    • An increase of six permanent positions in OPC to support the investigation and reporting on complaints of harassment and inappropriate interpersonal conduct.
    • An increase of four permanent positions in OEEO to support the intake, investigation and reporting on complaints of employment discrimination and retaliation.

    Subsequent to these fourth quarter adjustments, authorized 2024 staffing for the Corporation totaled 6,893 (6,540 permanent and 353 non-permanent), a net increase of 10 positions.

    Spending Variances

    Significant spending variances by major expense category and division/office are discussed below. Significant spending variances for the quarter ending December 31, 2024, 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 $5.0 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

    Overall under spending for the Ongoing Operations budget component was $228.2 million, or 9 percent, below budget for 2024. There were significant spending variances in three major expense categories:

    • Spending in the Outside Services-Personnel major expense category was under budget by $76.7 million, or 18 percent. The variance was largely attributable to unused Corporate Unassigned contingency reserves of $18.3 million and underspending in the following seven divisions and offices:
      • The Division of Information Technology (DIT) underspent its annual budget by $18.5 million ($11.9 million for initiatives and $6.6 million for operations) largely because the financial and HR system modernization effort was put on hold to permit additional planning, the Federal Reserve Board delayed an interagency project to replace the Examination Tool Suite until 2027, and due to project scope reductions and slower project starts than anticipated.
      • The Division of Administration (DOA) underspent its budget by $18.3 million, largely due to delays in awarding contracts for acquisition, human resources, and facilities management technology support; lower-than-planned contractor staffing for the implementation of electronic Official Personnel Folders; and a lower-than-expected background investigation workload. The underspending was also due to a lower-than-expected special events spending due to delayed implementation of the Virtual Event Management Platform.
      • The Legal Division underspent its budget by $6.5 million because of lower-than-projected expenses for outside counsel, due largely to slower-than-projected proceedings in one major litigation matter. 
      • The Office of Chief Information Security Officer (OCISO) underspent its budget by $3.3 million ($1.1 million in ongoing operations and $2.2 million in initiatives). Operations underspending was primarily attributable to contractor turnover. Initiative underspending was related to delays in a cloud security project and delays in DIT projects with security components.
      • The Division of Resolution and Receivership (DRR) underspent its budget by $2.9 million primarily due to lower than anticipated expenses in Closing Teams Support, Modeling and Analytics Services and Web Support due to contractor delays and more work being done within the Receivership Funding budget component.
      • The Executive Support Offices underspent their budget by $1.8 million. The Office of Communications (OCOM) was the primary contributor to the underspend in this category, largely due to lower-than-projected consulting costs for the Deposit Insurance Awareness Campaign which was intentionally paused during the election and holiday season.
      • The Division of Complex Institution Supervision and Resolution (CISR) underspent its budget by $1.6 million. This was largely due to the early completion of work in late 2023, which was budgeted for 2024. 
    • Spending in the Buildings and Leased Space major expense category was under budget by $47.3 million, or 34 percent, largely due to delayed contract awards and long lead times for receiving equipment for major repairs and capital improvements at FDIC-owned buildings; delays in beginning leasehold improvements for the Atlanta and Dallas Regional Office Expansions and for Field Office Modernization projects; slower-than-expected progress on minor improvements and routine maintenance at FDIC-owned buildings; and delayed receipt of deliverables from Architecture and Engineering vendors..
    • Spending in the Equipment major expense category was under budget by $20.3 million, or 12 percent. DOA underspent by $15.1 million due to delayed furniture purchases and canceled on-line library subscriptions and DIT underspent by $3.6 million due to delayed acquisition of End User Platform and Delivery Unit subscriptions.

  • Receivership Funding

    The Receivership Funding component of the 2024 FDIC Operating Budget included funding for expenses 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 underspending for the Receivership Funding budget component was $247.5 million, or 71 percent, below budget in 2024. Unused funding in the Corporate Unassigned contingency reserve represented $132.4 million of the underspend. The key divisions contributing to the underspending were DRR, at $106.7 million below budget, and DIT, at $5.9 million below budget.

    • Spending in the Salaries and Compensation major expense category was $21.8 million, or 50 percent below the budget. The key contributor to the variance was DRR, which underspent its budget by $18.4 million due to vacancies in authorized positions.
    • Spending in the Outside Services-Personnel major expense category was under budget by $168.4 million, or 59 percent. The variance was largely attributable to unused contingency reserves of $132.4 million. DRR also contributed significantly to the underspend, and Legal overspent its budget in this major expense category:
      • DRR underspent its budget by $38.1 million due to lower levels of pre-failure and failure activity than projected in 2024.
      • Legal overspent its budget by $5.6 million due to higher-than-projected expenses for outside counsel, due largely to higher than anticipated costs in one major litigation matter and work related to the regional bank failures.
    • Spending in the Equipment major expense category was under budget by $6.8 million, or 60 percent. The variance was largely attributable to DIT, which underspent its budget by $4.7 million due to lower-than-projected costs related to the 2024 failures.
    • Spending in the Equipment major expense category was under budget by $6.8 million, or 60 percent. The variance was largely attributable to DIT, which underspent its budget by $4.7 million due to lower-than-projected costs related to the 2024 failures.
    • Spending in the Other Expenses major expense category was under budget by $46.9 million, because the final settlement expenses of the three large regional bank failures in 2023 were significantly lower than the amount that DRR estimated and accrued for at the end of 2023. The settlement process for all three failures is now complete and DRR anticipates no future settlement-related expenses for them.

    Office of Inspector General

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

    Significant Spending Variances by Division/Office1

    Seven organizations had significant spending variances for 2024:

    • DRR underspent its budget by $124.9 million, or 43 percent, including $18.2 million in its Ongoing Operations budget and $106.7 million in its Receivership Funding budget. The underspending in the Ongoing Operations budget included $14.1 million in its Salaries and Compensation budget due to vacancies in authorized positions and $2.9 million in its Outside Services - Personnel budget as detailed above. The underspending in the Receivership Funding budget included $18.4 million in its Salaries and Compensation budget, $38.1 million in its Outside Services-Personnel budget and $46.9 million in its Other Expenses budget, for the reasons described above.
    • DOA underspent its budget by $88.1 million, or 22 percent, including $87.0 million in its Ongoing Operations budget and $1.1 million in its Receivership Funding budget. Ongoing Operations underspending included $18.3 million in Outside Services-Personnel, $47.1 million in the Buildings and Leased Space, and $15.1 million in Equipment, for the reasons described above. Ongoing Operations underspending also included $2.8 million in Salaries and Compensation due to vacancies in budgeted positions, and $2.4 million in Outside Services-Other due to lower-than-planned mail and shipping activity and lower-than-planned recruitment purchases and activity. Underspending in the Receivership Funding budget was due to lower-than-budgeted bank failure activity.
    • DIT underspent its budget by $38.7 million, or 8 percent, consisting of $32.8 million in Ongoing Operations and $5.9 million in the Receivership Funding budget. The largest components of the Ongoing Operations underspend were $9.5 million in Salaries and Compensation due to the high number of vacancies in budgeted positions during the year, $18.5 million in Outside Services-Personnel and $3.6 million in Equipment for the reasons described above. DIT underspent its Receivership Funding budget by $5.9 million for the reason stated above
    • CISR underspent its budget by $14.2 million, or 11 percent, largely due to underspending of $10.1 million in its Salaries and Compensation budget due to vacancies in budgeted permanent positions and $1.6 million in the Outside Services – Personnel budget for the reasons stated above. Further, CISR underspent its Receivership Funding budget by $1.9 million as a result of lower-than-expected Claims and Noticing expenses associated with the 2023 failures.
    • The Executive Support Offices underspent their budget by $8.3 million, or 17 percent. This was primarily due to underspending of $5.1 million in the Salaries and Compensation budget due to vacancies in budgeted positions, and $1.8 million in the Outside Services – Personnel as outlined above.
    • The Division of Insurance and Research (DIR) underspent its budget by $6.9 million, or 10 percent, primarily attributable to underspending of $4.5 million in its Salaries and Compensation budget due to attrition and resulting vacancies, and $1.6 million in Outside Services – Personnel largely due to contract transition cost savings for the Federal Financial Institutions Examination Council (FFIEC) Central Data Repository, reduced publication-related costs for DIR publications printed internally, and lower-than-anticipated failed bank data research costs.
    • OCISO underspent its budget by $4.5 million, or 8 percent, largely due to underspending of $3.3 million in its Outside Services–Personnel budget as outlined above.

    The Corporate Unassigned contingency reserve had $150.7 million in unused budget authority, $18.3 million in Ongoing Operations and $132.4 million in Receivership Funding remaining at the end of the year. That unused budget authority lapsed on December 31, 2024.

    1Information 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: April 2, 2025