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, Chairman
Auditor Suzanne M. Bump | Kate Fitzpatrick | John B. Langan | James M. Machado | Robert B. McCarthy
Joseph E. Connarton, Executive Director
February 11, 2016
Mr. Thomas J. Kelly, Chairman
Methuen Retirement Board
41 Pleasant Street
Methuen, MA 01844
REFERENCE: Report of the Examination of the Methuen Retirement Board for the three-year period from January 1, 2011 through December 31, 2013.
Dear Mr. Kelly:
The Public Employee Retirement Administration Commission has completed a follow-up review of the finding and recommendation contained in its audit report of the Methuen 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 recommendation cited in that report. The result is as follows:
The Audit Report cited a finding that only some financial information of payrolls, expense warrants and the trial balance were provided to the Board on a monthly basis. Board members were not provided the monthly bank reconciliations or any other accounting information. In addition, there was no summary of actual expenditures compared to the approved fiscal budget.
Follow-up Result: The Board Administrator now prepares a packet of financial information of the monthly bank cash reconciliation, including the bank statements, cash receipts and disbursements, adjusting journal entries, budget to actual expenses and the forecast of cash flow for every monthly board meeting. This finding is resolved.
The Commission wishes to acknowledge the effort demonstrated by the staff of the Methuen 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.
Joseph E. Connarton