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 | Kathleen M. Fallon | Kate Fitzpatrick | James M. Machado | Robert B. McCarthy | Jennifer F. Sullivan
Joseph E. Connarton, Executive Director
January 5, 2017
Laurie Giardella, Chairperson
Revere Retirement Board
Revere, MA 02151
REFERENCE: Report of the Examination of the Revere Retirement Board for the three-year period from January 1, 2011 through December 31, 2013.
Dear Ms. Giardella:
The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the Revere 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. This examination addressed two specific findings and recommendations cited in the report. The results are as follows:
1. The Audit Report cited that Executive Session minutes were missing from the Board’s records.
Follow-up Result: We viewed the Executive Session minutes that were missing during the prior audit. We also reviewed Board minutes beginning 2014 to the present and found several instances where the Board convened in Executive Session. These sessions were recorded by the Board Administrator disclosing the issues discussed, motions offered and votes taken by roll call. This finding is resolved.
2. The Audit Report cited that member refunds were issued without obtaining the required termination information from the member’s employer necessary to determine the rate of interest applicable to the refund.
Follow-up Result: We reviewed a sample of refunds issued between 2014 and 2016. At the time of this follow-up, a new Administrator had implemented additional procedures increasing internal controls with respect to the issuance of member refunds, including a review process to ensure that refund calculations are performed accurately and that all necessary records are kept in the member’s file. We reviewed a sample of refunds processed after these procedures were implemented and found that calculations are being performed accurately; records from the members’ employers are being obtained; and all necessary documentation is kept in the member’s file.
The overpayments or underpayments to the respective members identified during the audit were not completed. This finding is partially resolved.
The Commission wishes to acknowledge the effort demonstrated by the staff of the Revere Retirement Board to correct 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