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This podcast provides you the ability to listen to new regulatory guidance issued by the National Credit Union Administration, and occasionally the F D I C, the O C C, the F F I E C, or the C F P B. We will focus on new and material agency guidance, and historically important and still active guidance from past years that NCUA cites in examinations or conversations. This podcast is educational only and is not legal advice. We are sponsored by Credit Union Exam Solutions Incorporated. We also have another podcast called With Flying Colors where we provide tips for achieving success with the N C U A examination process and discuss hot topics that impact your credit union.
Samantha: Hello, this is Samantha Shares.
This episode covers the N C U A Annual
Performance Plan for Calendar Year 2026.
The following is an audio
version of that document.
This podcast is educational
and is not legal advice.
We are sponsored by Credit Union
Exam Solutions Incorporated, whose
team has over two hundred and
forty years of National Credit
Union Administration experience.
We assist our clients with N C
U A so they save time and money.
If you are worried about a recent,
upcoming, or in process N C U A
examination, reach out to learn how they
can assist at Mark Treichel dot com.
Also check out our other podcast called
With Flying Colors where we provide tips
on how to achieve success with N C U A.
And now the document.
N C U A Annual Performance Plan, Calendar
Year 2026, published on April 9, 2026.
Agency Overview.
Established by Congress in 1970, the
National Credit Union Administration,
or N C U A, insures deposits at
federally insured credit unions,
protects the members who own
credit unions, and charters and
regulates federal credit unions.
N C U A regulates and supervises
approximately 4,287 federally
insured credit unions holding 2.4
trillion dollars in assets and
serving more than 144 million
members across all states and U.S.
territories.
Reflecting the N C U A's statutory
responsibilities, the N C U A's mission
is to enable access to financial
services by facilitating safe,
sound, and resilient credit unions.
The agency's approach to meeting
its statutory responsibilities
reflects that credit unions are
not-for-profit organizations that
exist to serve their members.
Members of a credit union share
a common bond, also known as the
credit union's field of membership.
Credit unions are owned and
controlled by the people, or
members, who use their services.
The members elect a volunteer board of
directors to manage their credit union.
Credit unions provide a wide array
of safe and affordable financial
services, including accepting
deposits and making loans.
The agency carries out its statutory
responsibilities through a nationwide
organization of headquarters offices
and regional operations that support
examination, supervision, insurance,
and consumer protection activities.
To support the safety and soundness
of federally insured credit unions and
protect federally insured deposits, N C
U A administers several congressionally
authorized funds, including the National
Credit Union Share Insurance Fund, known
as the Share Insurance Fund, which insures
members' deposits in federally insured
credit unions; the Operating Fund, which
finances agency operations; the Central
Liquidity Facility, a contingent source
of liquidity for credit unions; and the
Community Development Revolving Loan
Fund, which supports eligible credit
unions serving low-income communities.
The N C U A collaborates with the other
financial regulatory agencies through
several councils, such as the Financial
Stability Oversight Council, the Federal
Financial Institutions Examination
Council, and the Financial and Banking
Information Infrastructure Committee.
These councils and committees and
their associated task forces and
working groups contribute to the
success of the N C U A's mission.
Executive Summary.
The N C U A Annual Performance Plan
establishes the agency's performance
priorities for the first year of the
2026 through 2030 N C U A Strategic Plan.
It translates long-term direction
into specific, measurable
outcomes that guide execution
and measure progress during 2026.
This 2026 Annual Performance Plan is
directly aligned to the 2026 through 2030
N C U A Strategic Plan and is intended to
link strategy to programmatic execution.
The following elements establish
the agency's framework for planning,
executing, and assessing performance.
Strategic Goals establish the agency's
priorities and overall direction,
providing a long-term framework to guide
decision-making and focus resources.
Strategic Objectives define the specific
outcomes necessary to achieve those
goals, translating broad priorities into
focused areas of effort and performance.
Annual Performance Goals translate
those strategic objectives
into specific outcomes for the
performance year, providing
clear expectations for execution.
Performance Indicators measure
progress and results against each
of the performance goals, enabling
ongoing assessment and accountability.
Together, each of these elements
enable the agency to define expected
performance for the 2026 calendar year
and measure progress toward fulfilling
the following multi-year strategic goals
outlined in the N C U A Strategic Plan.
Strategic Goal 1: Safeguard
Federally Insured Credit Unions.
Strategic Goal 2: Enable Access
to Cooperative Financial Services
and Responsible Innovation.
Strategic Goal 3: Strengthen N C U
A's Capabilities and Performance.
For each of the strategic
goals, N C U A identified three
strategic objectives to guide its
actions over the next five years.
These multi-year strategic objectives
focus on enhancing examination
effectiveness and prioritizing risk,
minimizing unnecessary regulatory
requirements, maintaining the
financial resilience of the Share
Insurance Fund, improving supervisory
effectiveness, ensuring financial
stability, enabling innovation and
access, and strengthening the agency's
systems, structure, and workforce.
In turn, the strategic objectives
establish the foundation for the
2026 performance goals and indicators
outlined in this Annual Performance Plan.
The performance goals and indicators
will guide execution and measure progress
during the 2026 performance year.
Performance Overview.
The performance goals and indicators
outlined in this Annual Performance
Plan define how the N C U A will measure
success in 2026 and ensure progress
toward achieving the N C U A Strategic
Plan's long-term strategic goals.
For this performance year, the agency has
established 17 annual performance goals
aligned to its strategic objectives.
These performance goals define
the specific outcomes to be
achieved and are supported by 23
performance indicators that measure
results against defined targets.
The 2026 performance goals encompass
actions such as: focusing N C U A's
examinations on activities that pose
material financial risk to credit unions
to maintain efficiency and high-quality
supervision; reducing regulatory
and administrative burden on credit
unions by eliminating unnecessary or
outdated requirements; accelerating
use of enhanced data, analytic models,
and artificial intelligence, or A
I, based technology tools to improve
the efficiency and effectiveness of
risk identification, analysis, and
decision-making; safeguarding the
long-term success of cooperative financial
services by administering appropriated
grants to support credit unions; and
executing operational, organizational,
and workforce improvements to ensure
alignment with statutorily required
activities and mission-critical needs.
By achieving each of the agency's 2026
performance goals, the agency will
strengthen its ability to meet statutory
requirements, advance Administration
priorities, improve execution and
accountability across its workforce, and
deliver more effective supervision and
support to federally insured credit unions
and the broader credit union movement.
N C U A actively monitors performance
throughout the year to assess
progress, identify risks, and inform
management decisions, reinforcing
accountability and ensuring continued
alignment with the agency's priorities
and statutory responsibilities.
To support effective execution,
the agency integrates performance
management into its regular operations
through established review processes,
leadership engagement, and ongoing
coordination across the organization.
Strategic Goal 1: Safeguard
Federally Insured Credit Unions.
N C U A is responsible for ensuring
the safety and soundness of federally
insured credit unions through effective
supervision, regulation, and oversight.
Achieving Strategic Goal 1 requires
a continued focus on identifying and
addressing material risks in credit
unions, maintaining the financial
strength of the Share Insurance Fund,
and ensuring that supervisory programs
are efficient, effective, and aligned
with the evolving risk environment.
N C U A will prioritize efforts that
strengthen examination and supervision
practices, reduce unnecessary regulatory
burden, and enhance the use of data,
analytics, and technology to improve
risk identification, decision-making,
and overall supervisory effectiveness.
These efforts are intended to ensure
that resources are focused on areas of
greatest risk and impact, while ensuring a
strong and resilient credit union system.
Strategic Objective 1.1:
Advance risk-focused examination
and supervision programs to improve
efficiency, prioritize material
risks, and reduce unnecessary
regulatory or administrative burden.
In 2026, N C U A will advance a more
targeted and efficient examination and
supervision framework by prioritizing
activities that address material financial
risks to federally insured credit unions.
This includes eliminating examination
scope steps that are unnecessary
or unduly burdensome in order to
reduce lower-priority work without
diminishing the agency's ability to
oversee safe and sound operations.
Concurrently, N C U A will take regulatory
and policy actions to reduce outdated or
duplicative requirements, enabling both
the agency and credit unions to focus
resources where they are most needed
to identify, assess, and mitigate risk.
Performance Goal 1.1.1:
Focus N C U A's examinations on
activities that pose material financial
risk to credit unions to maintain
efficiency and high-quality supervision.
To support this performance goal, the
agency will pursue a more risk-driven
supervisory approach that prioritizes
areas with the greatest potential impact
on financial risk and performance.
This includes strengthening examiner
decision-making, improving consistency
in how risk is identified and assessed,
and ensuring that supervisory efforts
are aligned with the complexity and
risk profile of each credit union.
The performance indicator is that N C U
A will eliminate examination scope steps
that are unnecessary or unduly burdensome.
These actions will allow supervisory
resources to be more effectively
aligned to higher-risk activities,
improving the quality and
timeliness of risk identification.
It will also reduce lower-priority
work for both examiners and credit
unions while maintaining effective
oversight of safe and sound practices.
Performance Goal 1.1.2:
Reduce regulatory and administrative
burden on credit unions by eliminating
unnecessary or outdated requirements.
To support this performance goal,
the agency will evaluate existing
regulations, guidance, and policies
to identify requirements or processes
that are duplicative, burdensome,
outdated, obsolete, or of lower value.
This includes aligning internal
and external policy, guidance, and
frameworks with current risk environments
and operations, while ensuring that
requirements continue to support and
promote safety, soundness, and resilience.
The performance indicator is that N C
U A will issue at least 30 regulatory
actions or policy revisions that
responsibly reduce regulatory or
administrative burden on credit unions.
These actions will enable N C U A and
credit unions to reallocate resources
toward material risks, allow credit
unions to innovate and better serve
their members, reduce confusion and
improve compliance efficiency, and
promote fairness, transparency, and
resilience in compliance expectations.
Strategic Objective 1.2:
Ensure the long-term stability
of the Share Insurance Fund.
In 2026, N C U A will focus on maintaining
the strength and resilience of the
Share Insurance Fund by proactively
identifying and addressing emerging risks
within federally insured credit unions.
This includes closely monitoring
financial trends, ensuring timely
supervisory responses for higher-risk
institutions, and maintaining sufficient
reserves to absorb potential losses.
These efforts will support continued
confidence in the credit union
system and protect the integrity
of the Share Insurance Fund.
Performance Goal 1.2.1:
Sustain the health of the Share Insurance
Fund by maintaining its equity ratio
between the statutory minimum and the
Board-established Normal Operating Level.
To support this performance goal,
N C U A will actively monitor the
health of the Share Insurance Fund
and the broader credit union system
to ensure the equity ratio remains
within the established range.
This includes assessing exposure
to potential losses, evaluating
trends in insured shares, and taking
appropriate actions to preserve
the Fund's strength and stability
through varying economic conditions.
The performance indicator is
that N C U A will achieve a
year-end 2026 Share Insurance
Fund equity ratio at or above 1.2
percent and at or below the normal
operating levels established by the
N C U A Board, after any required
distributions, if applicable.
Maintaining the Share Insurance
Fund within its target equity range
demonstrates N C U A's commitment to
a stable and reliable fund, ensuring
confidence that the credit union movement
will continue to serve its member-owners
and provide affordable financial services.
Performance Goal 1.2.2:
Supervise and resolve troubled
institutions in a timely manner
and at the least long-term cost
to the Share Insurance Fund.
To achieve this performance goal, N C U
A will prioritize early identification
and timely supervisory responses
for credit unions whose C A M E L S
composite ratings indicate elevated risk.
This includes initiating follow-up
examinations within established
timeframes, and applying procedures
and strategies that are proportionate
to the level of risk identified.
These efforts will contain potential
losses, support operational continuity,
and ensure that supervisory actions are
effective, efficient, and risk-focused.
The first performance indicator is that N
C U A will initiate at least 97 percent of
follow-up examinations within established
timeframes for federally insured credit
unions with C A M E L S composite ratings
of 4 or 5, or composite 3 ratings with
assets greater than 250 million dollars.
Timely follow-up examinations will
enable earlier supervisory intervention,
reducing the likelihood that emerging
risks escalate and strengthening N C U
A's ability to mitigate potential failures
before they result in significant losses.
The second performance indicator is that
N C U A will maintain Share Insurance
Fund losses for 2026 at or below
the established reserve for losses.
Maintaining Share Insurance Fund losses
within established reserves will protect
the Fund's strength and viability,
ensuring it remains well-capitalized
and preserves the long-term stability
of federally insured credit unions.
Strategic Objective 1.3:
Expand and augment the use of
data, analytics, and artificial
intelligence tools to strengthen
credit union oversight.
In 2026, N C U A will enhance credit union
oversight by making greater use of its
data holdings and implementing emerging
technologies like artificial intelligence
tools and robust analytic models.
This includes improving the agency's
ability to identify, analyze,
and respond to emerging risks
across the credit union system.
These efforts ultimately strengthen
the agency's examination and
supervisory activities by improving
risk identification and decision-making
while increasing consistency
across examination processes.
Performance Goal 1.3.1:
Accelerate examiner use of enhanced
data, analytical models, and artificial
intelligence-based technology
tools to improve the efficiency and
effectiveness of risk identification,
analysis, and decision-making.
To support this performance goal, the
agency will prioritize development of
data-driven tools to identify patterns of
potentially unacceptable risk in credit
unions while making progress implementing
specialized A I tools that help better
inform its analyses and decisions.
This includes releasing new and
better tools that examiners can use
to identify risk in credit unions
and streamlining availability of
the data that informs such analyses.
The first performance indicator
is that N C U A will deploy an
additional data-driven model that
assesses one or more credit union
risks to help prioritize supervision.
This action will strengthen the efficiency
and effectiveness of N C U A examiners
by streamlining risk identification and
better aligning N C U A resources to
credit unions exhibiting higher risks
of loss to the Share Insurance Fund.
The second performance indicator is that
N C U A will achieve key 2026 milestones
in its near-term A I roadmap, including
completing a large language model pilot
program, establishing an A I Steering
Committee, and refining its A I strategy.
These actions will build on recent
efficiency gains by enabling employees
to further analyze increasingly complex
data and information and by supporting
the continued identification and delivery
of high-quality supervision in an
increasingly complex credit union system.
Strategic Goal 2: Enable Access
to Cooperative Financial Services
and Responsible Innovation.
When N C U A fulfills its duties
effectively, federally insured credit
unions can continue to provide consumers
with access to cooperative financial
services while adapting responsibly to new
products, services, and delivery channels.
Achieving Strategic Goal 2 requires
effective collaboration between
the N C U A and its stakeholders
to develop a balanced understanding
of risks faced by credit unions.
Credit unions operate in a rapidly
evolving financial environment shaped
by technological changes, emerging
business models, and shifting
expectations from member-owners.
N C U A will promote collaboration with
stakeholders to solve challenges in
the credit union movement, promulgate
regulations and guidance that promote
responsible innovation, and improve
the efficiency and effectiveness of
its chartering, field of membership,
and service expansion activities.
These efforts will reduce unnecessary
or unduly burdensome barriers to the
viability of credit unions, helping
maintain vitality and competitiveness
within the credit union movement.
Strategic Objective 2.1:
Foster an environment where federally
insured credit unions can responsibly
adopt financial technology, digital
assets, and other innovations.
In 2026, N C U A will develop regulations,
policies, and programs that enable
the responsible adoption of financial
technologies, digital assets, and
other innovative financial products and
services that credit unions may use.
This includes building awareness of
emerging technologies and innovation
trends, ensuring that regulations are
consistent with developments in technology
marketplaces, and assessing and addressing
the risks that changing technologies may
present to the credit union movement.
Performance Goal 2.1.1:
Promulgate regulations and guidance
about credit union adoption of financial
technologies and other innovations.
To support this performance goal, the
agency will prioritize the development of
rules and guidance that define how credit
unions can adopt financial technologies
in a safe, sound, and risk-focused manner.
This includes incorporating
stakeholder input and coordinating
across financial regulators to ensure
consistent, practical standards for
federally insured credit unions.
The performance indicator is that N
C U A will issue final regulations on
permissible stablecoin activities for
all federally insured credit unions.
This action will establish the permissible
uses of stablecoins by federally
insured credit unions, empowering
them to responsibly pursue alternative
payment offerings for their members.
Strategic Objective 2.2:
Increase collaboration with key
stakeholders to identify emerging trends
and safeguard the long-term success
of cooperative financial services.
In 2026, N C U A will collaborate with
federal and state regulators and other
key stakeholders to identify emerging
trends in financial services and support
the responsible evolution of products
and services provided by credit unions.
Ongoing coordination and information
sharing will strengthen oversight,
reduce fragmentation, and ensure
credit unions can effectively
respond to changes in markets,
technology, and consumer expectations.
Effective coordination will also
help ensure oversight remains
risk-focused, adaptable, and
aligned with national priorities.
Such coordination efforts also help
align federal grants with national
priorities and ensure awarded
funds deliver intended results.
Performance Goal 2.2.1:
Engage with stakeholders to inform
policy, regulatory development,
and guidance to keep the agency's
oversight approaches effective,
risk-focused, and responsive to change.
To support this performance goal,
the agency will engage with credit
union stakeholders thoughtfully and
deliberately through regular interactions
to collect input that informs policy,
guidance, and regulatory development.
Historically, credit unions have
been successful by following a
people helping people model of
community and customer service.
N C U A contributes to this spirit by
engaging with stakeholders who make up
the credit union movement, helping the
agency better understand the perspectives
of those who run the system it oversees.
The performance indicator is that
N C U A will conduct regular public
interactions to collect stakeholder
input to inform policy and
regulatory development and guidance.
Regular public interactions will allow
N C U A to learn from credit unions
and, in turn, develop more effective
policies and regulations while
being responsive to market changes.
Engagement with stakeholders provides an
opportunity to give meaningful feedback to
the agency about N C U A's operations and
how emerging trends and changes in market
conditions impact the safety, soundness,
and resilience of the credit union system.
Performance Goal 2.2.2:
Enhance N C U A's participation
in cross-agency initiatives with
federal and state partners to
identify and address emerging risks
to the maximum extent possible.
To support this performance goal, N
C U A will continue to build upon its
tradition of productive engagements with
its state and federal regulatory partners.
This includes active participation
in federal interagency working
groups to promote coordinated,
consistent, and equitable policies,
guidance, and regulations.
Engagement with State Supervisory
Authorities also helps reduce
overlapping or conflicting requirements
and strengthens the effectiveness of
the dual chartering system in meeting
the needs of credit union members.
The first performance indicator is that N
C U A will participate in at least three
joint N C U A State Supervisory Authority
engagements to coordinate supervisory
approaches and address emerging risks and
trends affecting the credit union system.
These engagements will improve
alignment between federal and state
supervision, reduce overlapping
or conflicting requirements,
and strengthen the effectiveness
of the dual chartering system.
The second performance indicator is
that N C U A will represent credit
union interests in priority interagency
working group meetings with federal
financial regulators to inform coordinated
policy responses to emerging risks and
trends affecting the financial system.
Ongoing coordination among federal
financial regulators will promote
consistent policy approaches, strengthen
interagency alignment, and enable
more effective and timely responses to
emerging risks, supporting the overall
stability of the financial system.
Performance Goal 2.2.3:
Safeguard the long-term success
of cooperative financial services
by administering appropriated
grants to support credit unions.
To support this performance goal, N
C U A administers grants appropriated
by Congress in a manner consistent
with the Administration's policies and
principles of responsible financial
stewardship of public resources.
Pursuant to law, grants administered
by the N C U A help low-income
credit unions better serve members,
particularly those of modest means, which
contributes to the long-term success
of cooperative financial services.
The performance indicator is that N
C U A will award at least 95 percent
of 2025 Congressionally appropriated
grants while ensuring all awards
are made in full accordance with
Administration policies and priorities.
Effective administration of
Congressionally appropriated grants
will improve service for members of
low-income-designated credit unions by
expanding access to savings accounts and
loan products in underserved communities.
This, in turn, helps Americans
who might otherwise find it
difficult, or even impossible,
to achieve financial stability.
Strategic Objective 2.3:
Enable access to cooperative financial
services by reducing unnecessary or
unduly burdensome barriers, including
for chartering and expansion of services.
Performance Goal 2.3.1:
Increase access to cooperative
financial services, including
in underserved markets.
To support this performance goal,
the agency will focus on efficiently
processing credit unions' requests
to modify their fields of membership
and expand service offerings, when
appropriate and consistent with
applicable laws and regulations.
N C U A will continue to review and, if
appropriate, approve expansion requests
and oversee policies and processes to
ensure credit unions can effectively
serve current and prospective members,
including those in underserved areas.
The performance indicator is that
N C U A will process at least
80 percent of Underserved Area,
Multiple Common Bond, and Community
Expansion Field of Membership
requests within targeted timeframes.
Efficient processing of credit unions'
field of membership applications will
support responsible expansion into
underserved markets and help credit
unions meet evolving member needs,
while reinforcing a customer-centric
approach to N C U A operations.
Performance Goal 2.3.2:
Streamline credit union chartering
through automation and process revisions.
To achieve this performance goal, N C
U A will focus on reducing unnecessary
steps or unduly burdensome barriers that
impede the awarding of federal charters
to groups organizing new credit unions.
The agency will also automate the
new charter application process
to the greatest extent possible.
By streamlining credit union
chartering, N C U A will enable new
credit unions to form more quickly,
efficiently, and at lower cost.
The performance indicator is that
N C U A will reduce or eliminate
burdensome barriers for new charter
applicants by revising processes and
deploying automated application tools.
These actions will result in faster
and more efficient processing of
new charter applications by reducing
duplicative and burdensome requirements
while improving coordination of
application reviews and strengthening
data management for submissions.
Strategic Goal 3: Strengthen N C U
A's Capabilities and Performance.
Strategic Goal 3 focuses on strengthening
N C U A's capabilities and performance
through more effective use of technology,
improved organizational alignment,
and a highly skilled workforce.
Achieving this goal requires the
agency to enhance enterprise systems
and data capabilities, refine its
organizational structure, promote
accountability and eliminate
duplication, and invest in workforce
development and performance management.
Together, these efforts are designed
to modernize operations, strengthen
internal controls, and ensure
resources are aligned with statutory
and mission-critical priorities.
By improving how the agency manages
information, organizes its functions, and
develops its workforce, N C U A will be
better positioned to respond to evolving
challenges, operate more efficiently,
and deliver consistent, high-quality
oversight of the credit union system.
Strategic Objective 3.1:
Optimize enterprise systems and
technology to increase efficiency
and performance through enhanced data
management, analytics, and automation.
In 2026, N C U A will expand its use
of technology and automation to improve
efficiency across data management,
analysis, and agency operations.
Achieving this objective requires modern,
secure enterprise platforms, strong data
management and analytical capabilities,
and the effective integration of
technology tools across agency programs.
To remain effective and responsive, the
agency must optimize its use of technology
to enhance accuracy, efficiency,
and consistency in its operations.
These efforts will improve service
delivery, reduce unnecessary
bureaucracy, and strengthen
overall mission performance.
Performance Goal 3.1.1:
Advance N C U A adoption of
emerging technologies, including
analytic and automation tools, to
improve operational efficiency,
data analysis, and decision-making.
To support this performance goal, N C
U A will identify and deploy emerging
technologies, including advanced
analytics and artificial intelligence,
to strengthen agency-wide capabilities
and improve operational efficiency.
The agency will assess and
implement solutions that address
enterprise analytical needs, enhance
decision-making, and support more
effective supervision and operations.
By modernizing its examination systems and
integrating A I across core functions, N
C U A will improve workforce productivity,
strengthen problem-solving capabilities,
and better position the agency to respond
to evolving risks and mission demands.
The first performance indicator is that
N C U A will deploy the Analytics 2.0
Phase 1 upgrade to the M E R I T
examination system by the first
quarter of 2026 to enhance supervisory
analyses and examination insights.
Upgrading the M E R I T examination
system will enable N C U A examiners to
efficiently conduct more sophisticated
analyses while ensuring the agency
maintains appropriate security controls
for sensitive credit union data.
The second performance indicator is that
N C U A will assess high-priority A I
use cases against available A I models
and incorporate recommendations into the
agency's A I Implementation Strategy.
Identification, selection, and
implementation of A I tools will
improve how staff across the agency
access, analyze, and apply information;
reduce manual, repetitive, and
burdensome efforts; and enhance
the efficiency, consistency, and
quality of day-to-day operations.
Performance Goal 3.1.2:
Update enterprise information technology
systems and data management to improve
reliability, security, and performance.
To support this performance goal, N C
U A will strengthen its data management
and expand access to easy-to-use
datasets for internal analyses.
The agency will also identify
opportunities to develop technology-based
solutions that reduce administrative
workload, enabling employees to
focus on higher-value activities.
By automating routine or burdensome
tasks, the agency will improve operational
efficiency and promote employees'
ability to support high-impact work.
The first performance indicator is
that N C U A will restructure and
promulgate credit union datasets for
enterprise analysis and reporting.
Easy access to properly cleaned
and organized credit union datasets
will enable employees to focus on
analysis rather than time-intensive
data preparation and management.
The second performance indicator is that
N C U A will institute a single employee
time-reporting system to eliminate
duplicative administrative processes.
Consolidating employee time reporting into
a single system will reduce administrative
burden and allow staff to focus on
statutory and mission-critical priorities.
Strategic Objective 3.2:
Implement and sustain an organizational
structure that supports clear
accountability, eliminates
duplication, and emphasizes the core
statutory functions that Congress
established the agency to perform.
In 2026, N C U A's reorganization
will allow it to adapt effectively
to the evolution of financial
services and growing federal mandates
for improved service delivery.
N C U A will accomplish its
reorganization milestones while
continuing to deliver on its consistent
record of positive audit results.
During this period of organizational
change, N C U A will demonstrate its
continued ability to effectively steward
credit union resources by achieving
positive results on audits of its
financial and cybersecurity operations.
Performance Goal 3.2.1:
Refine the agency's organizational
structure by consolidating major
business units, grouping similar
roles and responsibilities, and
eliminating non-statutory functions.
To support this performance goal,
N C U A will continue pursuing its
agency reorganization, ensuring
alignment of programs and functions
with statutory responsibilities
and mission-critical priorities.
This includes evaluating existing
activities to identify and eliminate
non-essential functions and consolidating
roles and business units to reduce
duplication and improve efficiency.
These efforts will further plans
to simplify the agency's structure,
strengthen accountability, and
enable N C U A to execute its
mission efficiently and effectively.
The performance indicator is that N
C U A will finalize reorganization
project plans and complete all 2026
reorganization milestones by year-end.
These actions will establish a
clear framework for organizational
alignment, including defined roles,
responsibilities, and program structure,
to support implementation of the
agency's broader reorganization.
Performance Goal 3.2.2:
Reinforce accountability by sustaining
the agency's risk-management and
internal control environments.
To support this performance goal,
N C U A will fulfill its managerial
responsibilities for appropriate and
mature controls that minimize risk.
Audit requirements for financial
operations and information security
continue to become more stringent,
which requires N C U A to strengthen
its internal operations and controls.
These efforts highlight the agency's
commitment to professional and competent
management that prioritizes prudent
stewardship of credit union resources.
The first performance indicator
is that N C U A will achieve an
unmodified opinion on the agency's
financial statement audits.
An unmodified, or clean, opinion
from third-party auditors provides
reassurance that N C U A programs meet
the highest professional standards
for integrity and honesty in financial
operations and presentations.
This result ensures confidence
in the agency's management
of credit union resources.
The second performance indicator is
that N C U A will achieve an overall
maturity rating of at least Level
4, Managed and Measurable, for the
agency's annual Federal Information
Security Management Act, or F I S M A,
information security program assessment.
Robust information security
controls are crucial for protecting
federal information systems while
ensuring data confidentiality,
integrity, and availability.
Maintaining a mature information security
program increases stakeholder trust
in N C U A's management and use of
sensitive credit union data and resources.
Strategic Objective 3.3:
Strengthen workforce capabilities through
merit-based hiring, talent management,
and enhanced performance management.
N C U A's most important resource is
its high-quality, skilled employees.
In 2026, N C U A will enhance its
workforce's skills and abilities
through effective hiring, training,
and performance accountability.
By providing incentives for its employees
to strengthen their skills while
attracting and retaining an innovative
and high-performing workforce, the
agency will be well positioned to respond
effectively to future changes in the
credit union movement and address the
impacts of shifting economic conditions.
Performance Goal 3.3.1:
Enhance the N C U A workforce through
skills-driven, merit-based hiring
that meets mission-critical needs.
To support this performance goal, N
C U A will strengthen its recruiting,
vetting, and selection practices to
ensure the agency attracts and retains
talent in alignment with statutory
requirements and mission-critical needs.
As N C U A continues to implement its
reorganization initiative, the agency
will identify and align the skills and
capabilities required across its programs.
These efforts will inform recruitment
and retention strategies grounded
in merit-based principles, ensuring
the agency has the workforce
needed to meet its mission.
The performance indicator is that N C
U A will implement its 2026 Staffing
Plan, aligned with the Merit Hiring
Plan, to strengthen talent acquisition
and ensure staff are effectively
deployed to meet mission needs.
The staffing plan serves as the blueprint
that connects skills-driven, merit-based
hiring to the agency's strategic workforce
requirements, ensuring the right positions
are filled with the right expertise.
These actions will result in N C U A
building a workforce with the talent,
skills, and qualifications necessary for
the agency to accomplish its mission.
Performance Goal 3.3.2:
Strengthen current employee skillsets
through effective development programs
aligned with statutorily required
activities and mission-critical needs.
To support this performance goal, N C U
A will strengthen employee training and
performance management programs to address
skill gaps, reinforce accountability,
and reward high performance.
The agency will align developmental
efforts with mission-critical functions
and evolving demands across the financial
services sector, ensuring employees are
equipped with the capabilities needed to
execute their responsibilities effectively
and deliver results for the agency
and the broader credit union movement.
The performance indicator is that N
C U A will identify and develop plans
to address gaps in employee skillsets,
including through enhanced field staff
training, supervisor skills development,
and technology and A I skills development.
These efforts will ensure
targeted development of
skillsets, improving role-specific
performance and strengthening
execution across agency programs.
Major Management Challenges.
The N C U A's Office of the Inspector
General, or O I G, is required by the
Reports Consolidation Act of 2000 to
provide an annual statement on the top
management and performance challenges
facing the agency and to briefly assess
the agency's progress to address them.
For 2026, the O I G identified the
following top challenges facing the N C
U A: Balance Sheet Management; Redefining
Regulatory and Supervisory Approaches;
Cybersecurity, Protecting Systems and
Data; Implementation of Artificial
Intelligence; and Agency Realignment.
Enterprise Risk Management.
N C U A is subject to a variety of risks
that relate to its objectives, strategies,
operations, reputation, and environment.
Through the N C U A's Enterprise Risk
Management program, the agency is
proactively managing risks to achieve
its mission, as well as to maximize
opportunities across the agency.
Enterprise Risk Management examines
the full spectrum of risks related
to achieving the N C U A's strategic
objectives and provides agency
leadership with a portfolio view of
risk to help inform decision-making.
In 2022, the N C U A Board approved an
updated risk appetite statement after
careful consideration and evaluation
of the risks to achieving the agency's
strategic goals and objectives.
The N C U A Board will review its risk
appetite statement in consideration
of its new strategic plan and
changes in the risk environment.
Low Priority Program Activities.
The President's Budget identifies
lower-priority program activities,
where applicable, as required under
the G P R A Modernization Act of 2010.
Accuracy and Reliability
of Performance Data.
Data management and data
reliability are important in
determining performance outcomes.
Various offices monitor and maintain
automated systems and databases
that collect, track, and store
performance data, with support
provided by the N C U A's Office
of the Chief Information Officer.
In addition to the general controls the
N C U A has in place, which ensure only
authorized staff can access key systems,
each application or system incorporates
internal validation edits to ensure
the accuracy of data contained therein.
These application edits include checks for
reasonableness, consistency, and accuracy.
Crosschecks between other internal
automated systems also provide assurances
of data accuracy and consistency.
This concludes the document.
If your credit union could use assistance
with your exam, reach out to Mark Treichel
on LinkedIn or at Mark Treichel dot com.
This is Samantha Shares, and
we thank you for listening.