The Kansas Department of Credit Unions has assumed control of the 577-member, $1.8 million Enterprise Credit Union in the town of Enterprise pending the results of an investigation.
The credit union's board voluntarily turned control of the CU over after meeting with the department's director, John Smith, on Monday.
Michael Baugh, the agency's financial exam administrator, said “accounting irregularities” were found during a routine examination last week and that an outside accounting firm now will conduct an independent audit of the CU's books.
Baugh said the department had contacted another CU with the same operating system about running Enterprise CU on a day-to-day basis while the review was being conducted. He said he did not know how long the review would take.
Once the review is finished, Baugh said, it was possible that the CU's Call Reports may have to be amended and that the credit union may have to be liquidated or merged with another.
But he also noted the possibility that the review might simply uncover operational deficiencies which could be corrected, allowing the CU to move forward.
“We just don't know yet,” Baugh said.
Kansas has 80 state-chartered natural person credit unions and one state-chartered corporate credit union.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.