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 13, 2015

Laurie Elliott, Chair 
Greater Lawrence Sanitary District Retirement Board 
PO Box 187
North Andover, MA 01845

REFERENCE: Report of the Examination of the Greater Lawrence Sanitary District Retirement Board for the three-year period from January 1, 2010 through December 31, 2012.

Dear Chairperson Elliott:

The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the Greater Lawrence Sanitary District 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 four specific findings and recommendations included in the audit report for the period referenced above. The results are as follows:

Retiree Affidavits:
The last time affidavits were sent out to retirees was November 2009. Pursuant to 840 CMR 15.01, the affidavits should be sent out “no less frequently than once every two years.”

Follow-up Result:  The auditor reviewed the most recent affidavits and found them to be in good order.  This issue is resolved.

Current Retirees:
In reviewing current retirees one individual had a dual membership status in the Greater Lawrence Sanitary District (GLSD) and in Lawrence.  The member retired 6/30/2010.  The GLSD deductions were transferred to Lawrence and the member received one retirement check. 

Follow-up Result:  The auditor reviewed the refund of deductions to this member.  This issue is resolved.

Procurement 
In reviewing the contracts for the Greater Lawrence Sanitary District, it was determined that the Seaward Management contract was not executed prior to February 16, 2012.  The contracts for investment services have not had any recent contract executed.  Since the Board did not renew this contract prior to February 16, 2012, the procurement regulations under Chapter 176 of the Acts of 2011, with the insertion of Section 23(B) to Chapter 32, is applicable.

Follow-up Result:  The auditor reviewed the revised process the Board is undertaking  for the RFP regarding Investment Services.  The Board will be adhering to the 23(B) regulations.  This issue should be resolved.

Expenses
Most expenses were included on the Cash Projection and the warrant.  Two expenses were not included on the warrant Advantage Payroll Fee and AOL the internet connection.  Both these amounts are electronic payments from the expense account.

Follow-up Result:  The auditor reviewed the Cash projections and warrants and determined all expenses are now included.  This issue is resolved. 

The Commission wishes to acknowledge the effort demonstrated by the staff of the Greater Lawrence Sanitary District Retirement Board to correct the deficiencies 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