An ongoing audit has discovered that expenses were improperly recorded, according to the accounting firm conducting the audit, Lillie & Company LLC. Certain accounts were not being reconciled and expenses that should have been recorded weren’t.
At this point, no findings have led to charges.
“What has happened over the past several years, it started back in 2010, I noticed our credit union was seriously being mismanaged by the CEO,” board chairman Michael Buchanan told members gathered at the meeting at offices downtown on East Monument Street. Buchanan is retired from the former Dayton Metropolitan Housing Authority.
“The credit union lost over $1.3 million last year in 2012 and it was strictly due to total mismanagement of the credit union. No accountability from the CEO and no transparency from the previous CEO,” Buchanan told reporters after the meeting.
The credit union’s other board members declined comment. They said the organization’s policies referred all public comments to the chairman.
Members’ deposits are safe and the credit union has strong capital levels in reserve, Buchanan said.
“We’ve put measures in place to make sure this never happens again,” including restructuring management, he said. “The credit union is sound, their funds are insured. We have the proper management people in place to move the credit union forward.”
The National Credit Union Administration insures all deposits up to $250,000.
In February, previous chief executive officer of 10 years Lori Tieman was terminated. Sylvia Minnifield was named acting CEO. A search for a permanent replacement is ongoing.
Tieman could not be immediately reached.
The credit union is a nonprofit organization and not affiliated with local government. Nor does Montgomery County government have any deposits or loans with the credit union, according to the county treasurer’s office.
Montgomery County Credit Union is state chartered by Ohio Department of Commerce Division of Financial Institutions.
Lead regulator Ohio Department of Commerce and the NCUA are prohibited from confirming or denying any information about an investigation or examination into any credit union.
Montgomery County Credit Union, founded 50 years ago, has main offices in leased space at 409 E. Monument Ave., Suite 105, Dayton. A second off-site office is at Good Samaritan Hospital.
As of the end of 2012, the credit union had total assets of about $31 million and nearly 7,400 members.
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This story was updated May 7, 2013. Previously, the story incorrectly stated the way the former CEO of Montgomery County Credit Union left the organization.
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