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
Philip Y. Brown, Esq., Chairman
Auditor Suzanne M. Bump |  Kathleen M. Fallon  |  Kate Fitzpatrick  |  James M. Machado  |  Robert B. McCarthy  |  Jennifer F. Sullivan

Joseph E. Connarton, Executive Director

March 25, 2015

John McNamara, Chairperson
Clinton Retirement Board 
242 Church Street 
Clinton, MA  01510

REFERENCE: Report of the Examination of the Clinton Retirement Board for the two-year period from January 1, 2011 through December 31, 2012.

Dear Chairperson McNamara:

The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the Clinton Retirement Board for the 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 results are as follows:

1. The Audit Report cited a finding that the cash reconciliation included items that had been outstanding for more than six months.

Follow-up Result:  The November 2014 reconciliation does not include any reconciling items over six months old. This issue is resolved.

2. The Audit Report cited a finding that the Town uses a pay code “other” for many types of payment that are not regular compensation, but some of the payments covered by this code do satisfy the definition of regular compensation.

Follow-up Result:  The administrator is now reviewing an occasional payroll register of both the Town and the School. She then forwards a list of questions, including what the “other” pay represents, to the appropriate department. During the follow-up she indicated that the payroll system being used was about to be changed, and our hope is that the new system will have enough codes that there are no more payments that fall under “other” or “ineligible earnings”. The Board should be involved in determining what does and what does not qualify as regular compensation.  We will follow up on this finding once the new system has been established.

3. The Audit Report cited a finding that not all eligible employees were being enrolled in the Retirement System.

Follow-up Result:  As part of the payroll review, the administrator sent payroll personnel a list of unenrolled people who appeared to meet the requirements for membership. These people were enrolled on the payroll register reviewed by the auditor. This issue is resolved.

The Commission wishes to acknowledge the effort demonstrated by the staff of the Clinton Retirement Board to correct the findings cited in the most recent examination of the system.

Thank you for your continued cooperation in this important matter.

Sincerely,

Joseph E. Connarton 

Executive Director