The internal investigation was completed Feb. 14.

“We are currently working on updating all of our policies and procedures to ensure this doesn’t happen again,” Brooks said.

GECU will also be reviewing whether the credit union’s top executive should also serve as the treasurer of the board of directors as Allen did. Brooks also serves as the board treasurer.

Some experts contend that whenever the CEO, or any senior executive, also serves as board treasurer, a position with authority to approve or disapprove transactions, the credit union is at greater risk. However, some credit unions for many years, and continue to have a senior-level staffer who doubles as a board treasurer without any fiduciary issues. Moreover, it is a position that might be difficult to fill under a voluntary board of directors.

Because Allen was a long-term and highly trusted GECU employee, the investigation’s findings were a “complete shock to everybody,” Brooks said.

Even though the credit union has internal controls to monitor for discrepancies, Allen allegedly used her position to circumvent them, which concealed her fraud.

GECU’s investigation also determined, however, that Allen had no assistance from any other employee nor was any other employee involved in her unlawful conduct.

“It was the action of one individual,” Brooks said. “We will continue to work with our membership, work out in the community and we will continue moving forward.”

Allen was paid $99,317 in 2016, according to GECU’s most recent 990 Form filed with the IRS.

Brooks confirmed local media reports that the fraud was detected by the credit union’s accounting officer while reconciling a billing and invoicing issue with an HVAC company.

The credit union received a paid invoice from the HVAC company for $20,697, but GECU already had a paid $30,697 invoice on file from the same company. Both checks cleared the credit union, but the HVAC owner said he never received the $30,697 check, according to Johnson City police investigators. Their findings were turned over to the FBI, which is expected to conduct an investigation.

Brooks said the NCUA and the Tennessee Department of Financial Institutions were notified immediately after GECU became aware of the financial discrepancies. The regulators are expected to conduct audits.

Based on NCUA financial performance reports, it appears the 4,390-member GECU is well-capitalized with a net worth of 14.13% at the end of 2017. However, the credit union posted a ROAA of 0.09% at the end of last year.

Over the past five years, GECU posted positive net income gains except for 2014 when it recorded a net income loss of $20,670, according to NCUA financial performance reports.