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
Domenic J. F. Russo, Chairman | A. Joseph DeNucci, Vice Chairman
Paul V. Doane | James M. Machado | Donald R. Marquis | Robert B. McCarthy | Gregory R. Mennis
Joseph E. Connarton, Executive Director
September 28, 2010
Noreen Mavro Flanders, Chairperson
Dukes County Retirement Board
9 Airport Road
Suite 1
Vineyard Haven, MA 02568
REFERENCE: Report of the Examination of the Dukes County Retirement Board for the four-year period from January 1, 2004 through December 31, 2007
Dear Chairperson Flanders:
The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the Dukes County 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 recommendations cited in that report. The examination addressed 5 specific findings and recommendations included in the audit report for the period referenced above. The results are as follows:
1. The Audit Report cited a finding regarding several member contribution issues, such as incorrect 2% amounts withheld and the Retirement Board not determining the regular compensation status of pay codes that the units are using.
Follow-up Result: The Board will be holding a meeting with all their units in the future, once the new regular compensation regulation is finalized. They are dealing with incorrect 2% contributions as they are submitted to the office. This issue is not resolved.
2. The Audit Report cited a finding that the three-year average salary for a member is calculated using deductions instead of payroll records.
Follow-up Result: The Board continues to use deductions to calculate the three-year average. This issue is not resolved.
3. The Audit Report cited a finding that there did not appear to be a process for resolving checks that were outstanding for more than six months.
Follow-up Result: As of June 30, 2008 there were 28 checks totaling $3,530.84 outstanding for more than six months. By November 30, 2009 there were 6 checks totaling $1,318.47 outstanding for more than six months. There is now a process for researching and voiding stale checks. This issue is resolved.
4. The Audit Report cited a finding that active members age 70 and over had not been given the choice of whether to continue having retirement deductions withheld or not.
Follow-up Result: Members have been contacted and sent the election form. This issue is resolved.
5. The Audit Report cited a finding that the Board had funded an investment without PERAC receiving all the required documentation.
Follow-up Result: The Board’s most recent investment (Atlanta Capital Management Company) was not funded until after PERAC had received the required information. This issue is resolved.
The Commission wishes to acknowledge the effort demonstrated by the staff of the Dukes County 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.
Sincerely,
Joseph E. Connarton
Executive Director