In addition, he said the board has failed to engage both its members and board in a dialog on the budget process.

“The NCUA can and should reduce the operating budget and improve its budget process,” McWatters said during the conclusion of his statement, which lasted nearly half an hour. He called the agency's efforts to fund its operations “misguided.”

NCUA Vice Chairman Rick Metsger later attempted to clarify that the board never actually had a budget hearing, but instead held a budget briefing. He said any attempt to hold a hearing would be akin to micromanaging the budget process.

After McWatters' statement on the budget, Matz said, “There's so much misinformation in that statement, I won't even attempt to refute all of it.”

She said McWatters' claim that the agency is “shutting the door” on an 18-month cycle is erroneous.

“We are looking at an extraordinary amount of reg relief, it's inappropriate and irresponsible to do reg relief and increase our exam cycle,” she added.

The exchange heated up as Matz continued to address some of the concerns McWatters raised.

“It's rather extraordinary to be accused of manipulating our exam hours to influence the OTR,” Matz said. “I have to say I am not totally shocked by that, for questioning the integrity of the agency.”

“I didn't say that,” McWatters said.

“Yes, you did, by inference,” Matz said.

“I did not say that,” McWatters countered.

Matz also addressed McWatters' discussion on dialog with the board, stating that if McWatters is not “getting that, perhaps it's your lack of participation and not the staff's.”

McWatters further criticized the agency, adding the credit union community is “tired of these vague promises.”

“It's interesting that you set yourself up as the spokesman for the credit unions,” Matz interjected.

“I don't recall doing that,” McWatters replied.

Matz later told McWatters that he does not attempt to understand the issues, how the examination process works, or why some of the agency's decisions are made in the interest of safety and soundness.

“Any board member who wants information from the staff, you will get it,” Matz said. “You might not agree with it, but you will get as much information as you want, on any subject that you want. And clearly some of the things said here today, without a doubt, you have no understanding about some of the issues that you are criticizing.”

The board concluded by passing each of the budget agenda items by a two-to-one vote, with McWatters voting nay each time.