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
Phillip Y. Brown, Chairman
Auditor Suzanne M. Bump | Kathleen M. Fallon | Kate Fitzpatrick | James M. Machado | Robert B. McCarthy | Jennifer F. Sullivan
Joseph E. Connarton, Executive Director
June 24, 2016
Kevin Mahoney, Chairman
Minuteman Regional Vocational Technical School
District Retirement Board
758 Marrett Road
Lexington, MA 02421
REFERENCE: Report of the Examination of the Minuteman Regional Vocational Technical School District Retirement Board (MRVTSDRB) for the three-year period from January 1, 2011 through December 31, 2013.
Dear Chairman Mahoney:
The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the MRVTSDRB 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 six specific findings and recommendations included in the audit report. The results are as follows:
1. The Audit Report cited a finding that there was an unexplained variance between the bank and the general ledger.
Follow-up Result: The cash reconciliation for February 2016 was reviewed. There is no longer any unexplained variance. This issue is resolved.
2. The Audit Report cited a finding that refunds that required 3% interest did not have the correct interest.
Follow-up Result: All refunds issued during 2015 and the first 3 months of 2016 were reviewed. Interest was correct in every case. This issue is resolved.
3. The Audit Report cited a finding that due to an error processing the payroll, all retirees had been overpaid for one month in 2013.
Follow-up Result: The Board voted to waive the amount owed. However, the waiver does not apply in this case. Further discussion of this issue will be sent under separate cover. This issue is not resolved.
4. The Audit Report cited a finding that the Board was overpaying retirees in the month they died and not requesting repayment.
Follow-up Result: The Board has begun requesting that any overpayments be reimbursed. This issue is resolved.
5. The Audit Report cited a finding that various accounting practices needed improvement.
Follow-up Result: The specific errors cited have not reoccurred since the audit report was finalized. This issue is resolved.
6. The Audit Report cited a finding that the Board was not reviewing a sufficient amount of financial information.
Follow-up Result: Every month each Board member receives electronic copies of the trial balance, journal entries, cash reconciliation, and PRIT wire transfer. This information is also reviewed with the administrator during the Board meeting. This issue is resolved.
The Commission wishes to acknowledge the significant effort demonstrated by the staff of the MRVTSDRB to correct many of the issues 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 the area that has not been corrected adequately at this time.
We anticipate your continued cooperation in resolving this important matter.
Joseph E. Connarton