Commonwealth of Massachusetts | Public Employee Retirement Administration Commission
Five Middlesex Avenue, Suite 304, Somerville, MA 02145
Ph 617 666 4446 | Fax 617 628 4002 | TTY 617 591 8917 | www.mass.gov/perac
Domenic J. F. Russo, Chairman | A. Joseph DeNucci, Vice Chairman
Mary Ann Bradley | Paul V. Doane | James M. Machado | Donald R. Marquis | Robert B. McCarthy
Joseph E. Connarton, Executive Director
May 7, 2009
Mr. Michael Ovitt , Chairman
Berkshire Regional Retirement Board
29 Dunham Mall
Pittsfield , MA 01201
REFERENCE: Report of the Examination of the Berkshire Regional Retirement Board for the two-year period from January 1, 2005 through December 31, 2006.
Dear Chairman Ovitt:
The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the Berkshire Regional Retirement Board for the most recent period referenced above. We conduct these visits as a regular part of the oversight process. They are designed to ensure the timely implementation of corrective action for the recommendations cited in that report. The examination addressed one specific finding and recommendation included in the audit report for the period referenced above. The results are as follows:
1. The Audit Report cited a finding that the Berkshire Regional Retirement Board lacks a uniform method of verifying monthly membership payroll. The Berkshire Regional Retirement Board administers forty-five (45) governmental units. 13 of the 45 units did not report “Other Earnings” which makes it impossible to determine if “Regular Earnings” is exclusive of earnings not subject to pension deductions such as Overtime or Police Detail pay.
Follow-up Result: The Berkshire Regional Retirement Board is visiting each of the 13 deficient governmental units to review treasurer’s payroll records. This is to be accomplished by Labor Day. In addition, the staff has prepared a presentation to be given at the next Treasurers/Collectors Seminar to explain the importance of detailed payroll records.
Lastly, the retirement staff recognizes that many of these changes may require costly computer updates. While current board efforts are being conducted to address this issue, it will take a long-term plan and capital resources to resolve this matter completely. This issue remains unresolved.
The Commission wishes to acknowledge the significant effort demonstrated by the staff of the Berkshire Regional Retirement Board to correct the deficiency cited in the most recent examination of the system. PERAC auditors may conduct an additional follow-up visit to ensure appropriate progress is being made in those areas that have not been corrected adequately at this time.
We anticipate your continued cooperation in resolving this important matter.
Sincerely,
Joseph E. Connarton
Executive Director