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
Paul J. Minarik, Chairman
Webster Retirement Board
350 Main Street
Webster, MA 01570
REFERENCE: Report of the Examination of the Webster Retirement Board for the two-year period from January 1, 2011 through December 31, 2012.
Dear Chairman Minarik:
The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the Webster 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. The examination addressed four specific findings and recommendations cited in that report. The results are as follows:
1. The Audit Report cited a finding that the Town of Webster paid half of its FY 2012 appropriation in FY 2013.
Follow-up Result: Our review of the current FY appropriation indicates that the first half payment was received August 7, 2015. The second half was due September 15, 2015 but is still outstanding as of January 14, 2016. This finding is not resolved.
2. The Audit Report cited a finding that the cash allocation of the Board’s investment portfolio fell significantly out of line with its investment policy. By December 31, 2012 their position in cash was approximately 15%.
Follow-up Result: As of October 31, 2015 Webster’s Trial Balance reflects a cash position of approximately 6% of its total asset allocation. Furthermore, it is noted in the Board minutes that the Board’s Investment Consultant is aware of this issue. The Board should continue to closely monitor their cash balances. This finding is resolved.
3. The Audit Report cited a finding that the Board did not receive a complete financial packet consisting of relevant accounting and financial material necessary for thorough Board oversight.
Follow-up Result: The Administrator creates a monthly financial packet for each board member to review prior to the monthly Board meeting. This finding is resolved.
4. The Audit Report cited a finding that two different board members missed more than 25% of the meetings in various years.
Follow-up Result: A two year review of board attendance indicated one member of the board missed 41% of meetings in 2015. This finding is not resolved.
The Commission wishes to acknowledge the effort demonstrated by the staff of the Webster Retirement Board to correct many of the deficiencies 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 those areas that have not been corrected adequately at this time.
We anticipate your continued cooperation in resolving this important matter.
Joseph E. Connarton