The National Credit Union Administration has issued a cease-and-desist order to Yonkers Postal Employees Credit Union in New York that mandates certain auditing and anti-fraud reviews.
The $6.8 million-asset credit union agreed and consented to the order and will address “certain supervisory concerns” raised by the NCUA’s Eastern regional office, the regulator said in a press release Nov. 30.
The order stipulates that the credit union must hire an independent firm licensed by the state of New York to perform a financial statement opinion audit, effective Dec. 31, 2021, and engage a certified fraud examiner to perform a fraud examination covering the years 2019, 2020 and 2021.
The order also requires the credit union to obtain a final opinion audit report for its 2020 financial statements no later than Nov. 30 and provide a copy to the regulator.
Moreover, the credit union agreed to ensure that bank and corporate accounts are reconciled every month and that reconciling items are posted to the appropriate general ledger account by the tenth day of each month.
The order was signed on Nov. 4 by the credit union’s president and CEO Ginger Watkins and four board members. Officials for the credit union did not immediately return a call seeking comment Friday afternoon.
Call report data shows that the credit union lost $11,455 in 2020 and lost an additional $32,504 last year.
Through the first nine months of 2022, the credit union has net income of $21,906.
The credit union has 489 members and was chartered in 1933.
Ken McCarthy
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