Fraud Shows Where Focus Should Be
The $2.1-million fraud at United Catholic Credit Union (CU Journal, Dec. 7) should raise questions about the two tier examination process. Smaller credit unions often lack basic controls, such as division of duties, because in many cases the same person has to do the job of many. The chances of fraud are higher with smaller credit union staffs. The exam process should take this into account and exam processes should be more vigorous. Instead the approach appears to be to reduce the regulatory burden. This fraud is a clear warning that "exam lite" is not the right approach.
Henry Wirz, CEO
SAFE Credit Union, N. Highlands, Calif.