Internal Controls, As Important Today as Ever

The Corvallis Gazette of Corvallis, OR reports a credit union employee, Mark D. Graybill, was arrested this month. He reportedly originated $70,000 of fraudulent loans using the names and information of existing members. He is charged with first-degree aggravated theft and five counts of identity theft.

This is one reason dual controls, as well as checks and balances, are necessary to verify that procedures were followed and the accounts are all valid. Verification of deposits and loans is an important security step to protect the institution as well as your customer. Likely, your institution is busier than ever and working with minimal staff. Now is a good time to ensure your procedures haven't been compromised, and that they are being followed.