Page 21 - Police Federal Credit Union

The Supervisory Committee is responsible for examining the adequacy and effectiveness of those
controls established by management. The examinations can be augmented with written reports from
CPA auditors, state, and federal examiners.

Fraud Whistle-Blowing Procedures
It is the responsibility of all employees, volunteers, contractors, consultants, committee members,
and directors to report any suspected wrongdoing to the President/CEO, Supervisory Committee
Chairman, Human Resources, or executive management. However, if an employee believes that the
alleged fraud involves management, the employee shall promptly report the matter to the Chairman

of the Board of Directors and/or the Supervisory Committee Chairman.

Fraud Investigation
Immediately upon discovery of an alleged fraud involving an employee or volunteer, the
President/CEO or Supervisory Committee Chairman shall be notified. The President/CEO and/or

Supervisory Committee Chairman will determine who will be assigned the responsibility for the
investigation. Responsibility may be assigned to Human Resources, Police FCU’s Internal Audit
Committee, Supervisory Committee, or outside specialists such as a CPA firm, league auditing staff,
state or federal regulatory agencies, or Police FCU’s Risk Management Committee.

Fraud Conduct

The President/CEO, Supervisory Committee Chairman and/or Human Resources should contact the
Credit Union's legal counsel to avoid litigation relating to defamation, false imprisonment, malicious
prosecution, and assault.

Special consideration needs should be given to a suspect employee, board member, or volunteer with
a known physical impairment or other known medical condition.

Suspension or Employment Termination for Fraud
The Police FCU Discovery Bond suspends coverage on any employee, board member or volunteer
once the Credit Union learns of any fraudulent or dishonest act. It is; therefore, very important that
the investigation be conducted as quickly as possible to prevent further losses.

The President/CEO, Supervisory Committee Chairman and/or Human Resources shall consult legal
counsel to determine guidelines for suspension or employment termination of a dishonest employee
depending on the nature of the offense, dollar amount involved, existing policies, and effect on the
bond.

Fraud Notification of Interested Parties
The President/CEO and/or Supervisory Committee Chairman will ascertain that the proper person/s
are contacted. If the evidence is not sufficient to clearly implicate the alleged dishonest person/s, the
President/CEO and Supervisory Committee Chairman shall consider additional controls or job duty
changes to discourage opportunities. Such changes may be made without the employee's knowledge.

POLICE FEDERAL CREDIT UNION EMPLOYEE MANUAL - APRIL 2017 21 | PAGE