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Office of Labor-Management Standards (OLMS)

U.S. Department of Labor Employment Standards Administration
Office of Labor-Management Standards
Buffalo District Office
130 South Elmwood Avenue
Room 510
Buffalo, NY 14202-2465
(716)842-2900 Fax: (716)842-2901

May 8, 2008

Kermit C. Mott, President
Letter Carriers, Rural, ind
State Association, New York
5993 Byron Holley Road
Byron, NY 14422-9520
LM File Number: 088-469
Case Number: -

Dear Mr. Mott:

This office has recently completed an audit of the New York Rural Letter Carriers Association under the Compliance Audit Program (CAP) to determine your
organization's compliance with the provisions of the Labor-Management Reporting and Disclosure Act of 1959 (LMRDA). As discussed during the exit interview with
Treasurer Elizabeth Lester on April 24,2008 the following problem was disclosed during the CAP. This does not exhaust all possible problem areas, however, since the
audit conducted was limited in scope and did not include all areas of your union's operation.

The audit of the fiscal year ending June 30, 2007 disclosed the following violation:

Inadequate Bonding

The audit revealed a violation of LMRDA Section 502 (Bonding), which requires that union officers and employees be bonded for no less than 10 percent of the total funds those individuals or their predecessors handled during the preceding fiscal year. New York Rural Letter Carriers Association officers and employees are currently under bonded. The current bond coverage is for $100,000. The coverage must be for at least $181,475. Treasurer Lester has been advised to obtain adequate bonding coverage for its officers and employees immediately. Please provide proof of bonding coverage to this office as soon as possible, but not later than June 9, 2008.

I want to extend my personal appreciation to you and Liz for the cooperation and courtesy extended during this compliance audit. I strongly recommend that you make
sure this letter any compliance assistance materials provided to you are passed on to future officers. If we can provide any additional assistance, please do not hesitate to call.

Sincerely,
Investigator
cc: Treasurer, Elizabeth Lester
Secretary, Lois C. Bailey