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 | Kate Fitzpatrick | Elizabeth Fontaine | John B. Langan | James M. Machado | Robert B. McCarthy
Joseph E. Connarton, Executive Director
July 22, 2016
Zachary Taylor, Chairman
Milford Retirement Board
Town Hall, Room 17
52 Main Street
Milford, MA 01757
REFERENCE: Report of the Examination of the Milford Retirement System for the three-year period from January 1, 2010 through December 31, 2012.
Dear Chairman Taylor:
The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the Milford Retirement System 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 examination addressed two specific findings and recommendations included in the audit report. The results are as follows:
1. The Audit Report cited a finding that there was no monthly meeting in January 2011.
Follow-up Result: Minutes were examined for January 2013 through May 2016. The Board met at least once in each month. This issue is resolved.
2. The Audit Report cited a finding that there is no formal process to handle the Board’s pre-funding of the administrator’s salary with the Town.
Follow-up Result: The current administrator is not making monthly entries to the prepaid expense account to cover the salary actually paid. The entries that should be made were reviewed with the administrator. Future monthly trial balances will show the remaining balance of the lump sum payment made to the Town. This issue will be resolved once the entries are made and the trial balances are shared with the full Board.
PERAC auditors may conduct an additional follow-up visit to ensure appropriate progress is being made in that area that has not been corrected adequately at this time.
We anticipate your continued cooperation in resolving this important matter.
Joseph E. Connarton