ALEXANDRIA, Va.-NCUA is spiffing up its annual performance goals for 2005 to keep credit unions safe and sound and efficiently running. According to NCUA's Combined Annual Performance Report 2003 and Initial Annual Performance Plan 2005, the agency has modified the wording of its five goals, but not the intent. "The adoption of more succinct strategic goals is just one of the steps in our efforts to provide more concise reporting and monitoring tools going forward," the report read. The report found that NCUA did not meet its objectives in three areas in 2003. First, NCUA had a goal of reducing the percentage of credit unions with "long-standing unresolved problems," meaning credit unions with a CAMEL 3 for longer than three years. The agency's target for 2003 was to reduce this percentage from the previous year, but instead the rate was up from 3.21% at the end of 2002 to 3.52% at year-end. However, the increase was lower than the previous four years and was within an acceptable range, the report said. "NCUA continually evaluates the regulatory environment in an effort to reduce regulatory barriers and share information regarding legislation with credit unions, leagues and associations. In 2003, NCUA measured its successfulness in this effort by monitoring the percentage increase in credit union members," the report explained. "This goal cannot be directly controlled by NCUA. It can only be indirectly influenced by the regulatory environment NCUA establishes." The 2003 target for membership increase was 3%, but only actually reached 1.9%. The increase is consistent with 2002 and the declining trend from the previous two year-ends. NCUA reduced the goal to 2% for 2004 and added other measurements, including credit union assets, loans and shares. Finally, NCUA received a slightly lower than peer average rating for overall customer satisfaction with its technology, according to a survey. Its goal is to be at or above the peer average. The agency made a number of technological changes in 2003 that should be "fully absorbed" to achieve this goal in time for its next survey. The agency also said it partially achieved a number of goals, including keeping the National Credit Union Share Insurance Fund equity ratio at 1.3%. Since the ratio ended 2003 at 1.25%, NCUA did not include this as a complete accomplishment, but said it was in line with actual performance since 2001. For the 2005 performance plan, the agency has set a goal range of 1.25% to 1.30%. NCUA said it only partially achieved its goal to facilitate credit union efforts to increase access to affordable financial services. The annual report cited competing interests, like the Partnering and Leadership Successes initiative and temporary short staffing, as the reason it did not reach its goal, which remains a priority for 2004 and 2005. The agency failed to reach its 10% goal for budget reduction for 2003. It was able to reduce the budget 6.7% and so deemed it a partial success. NCUA also said an agency pay review is complete and recommendations are pending. NCUA's 2004 and 2005 plans "appropriately place increased emphasis on the subject matter examiner program," according to the report. The plans are also aimed at improving the risk identification process. They are based on lessons learned from the 2003 results. [email protected]