ALEXANDRIA, Va. (7/3/14)--The National Credit Union Administration has terminated its Letter of Understanding and Agreement (LUA) with Valley Pride FCU of Plains, Pa., with $7.1 million in assets. The LUA was dated June 11, 2013.
The NCUA's LUA defined "significant adverse conditions and unsafe and unsound practices" it identified as a result of a March 2013 examination.
Valley Pride agreed to take steps to correct those practices under terms of the letter. These steps involved engaging qualified individuals to reconcile accounts, perform an opinion audit and implement internal control procedures.
The credit union was also required to develop a matrix to monitor results from all audits, reviews and examinations, with the matrix containing all information pertaining to each finding, how it would be remedied, who would be responsible for corrective actions and any updates on progress toward completing the corrective action.
The LUA remained in effect until all conditions set by the NCUA were fulfilled. The credit union remained open while it took the corrective actions.