STIPULATION AND CONSENT TO CEASE AND DESIST ORDER
The National Credit Union Administration Board ("NCUA"), by and through its Regional Director, Eastern Region, and Yonkers Postal Employees Credit Union ("Credit Union"), by and through its Board of Directors, hereby stipulate and agree as follows:
- Consideration. The NCUA is of the opinion that grounds exist to initiate an administrative cease and desist action against the Credit Union pursuant to Section 206(e) of the Federal Credit Union Act (“Act”), 12 U.S.C. § 1786(e). The Credit Union, without admitting that said grounds exist (except those set forth as to jurisdiction in paragraph II), desires to avoid the time, cost and expense of administrative litigation. Accordingly, the Credit Union consents to this Stipulation and Consent to Cease and Desist Order (“Order”) and its issuance by the NCUA.
- Jurisdiction. The Credit Union is an "insured credit union" within the meaning of Section 101 of the Act, 12 U.S.C. § 1752(7), and NCUA Rules and Regulations (“Rules”), 12 C.F.R. §.747.0(b). Pursuant to Section 206 of the Act, 12 U.S.C. § 1786, and Part 747 of the Rules, 12 C.F.R. Part 747, the NCUA is the appropriate Federal agency to maintain enforcement proceedings against such an insured credit union. Therefore, the Credit Union is subject to the authority of the NCUA to initiate and maintain proceedings against it.
- Consent. The Credit Union consents to the issuance of this Order by the NCUA. The Credit Union further consents to the following terms and conditions of the Order and to take the following actions:
- Obtain the final opinion audit report for the 2020 financial statements no later than November 30, 2022 and provide a copy to the NCUA Eastern Regional Director.
- Engage an independent firm licensed by the State of New York to perform a financial statement opinion audit, effective December 31, 2021, in accordance with generally accepted auditing standards. Obtain the final report no later than 60 days from the date of engagement and provide a copy to the NCUA Eastern Regional Director.
- Engage a certified fraud examiner to perform a fraud examination covering the years 2019, 2020, and 2021. The engagement letter must require the fraud examination report be delivered to the supervisory committee with a copy to the NCUA Eastern Regional Director within 90 days of the engagement.
- Ensure bank and corporate accounts are reconciled every month and reconciling items are posted to the appropriate general ledger account by the tenth day of each month.
- Modification. The Credit Union and NCUA agree this Order supersedes and replaces the Preliminary Warning Letter signed on June 15, 2022. The Credit Union and the NCUA agree that the above items in paragraph III will remain in effect unless modified in writing by the NCUA’s Eastern Regional Director. The Credit Union agrees that any such modification shall constitute an amendment to the Order and shall be fully enforceable by NCUA.
- Waivers. The Credit Union waives its right to an administrative hearing to this Order as provided for in Section 206 of the Act, 12 U.S.C. § 1786, and Part 747 of the Rules, 12 C.F.R. Part 747. It further waives its right to seek judicial review of the Order or otherwise challenge the validity or legality of the Order.
- Finality. This Order will be issued pursuant to Section 206(e) of the Act, 12 U.S.C. § 1786(e). Upon its issuance, the Order shall be final, effective and fully enforceable by the NCUA.
WHEREFORE, in consideration of the foregoing, the undersigned, on behalf of the NCUA and Yonkers Postal Employees Credit Union, execute this Stipulation and Consent to Cease and Desist Order. This document is comprised of four (4) pages, including the signature page.
FOR YONKERS POSTAL EMPLOYEES CREDIT UNION:
Ginger R. Watkins
Board Treasurer / Manager
FOR THE NATIONAL CREDIT UNION ADMINISTRATION:
Regional Director, Eastern Region