Joseph E. Connarton, Executive Director
February 15, 2011
Mr. Douglass A. MacArthur, Chairman
Gloucester Retirement Board
127 Eastern Avenue
Level 2, Suite F
Gloucester, MA 01930
REFERENCE: Report of the Examination of the Gloucester Retirement Board for the two-year period from January 1, 2007 through December 31, 2008.
Dear Chairman MacArthur:
The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the Gloucester 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 several 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 that the additional 2% deduction was not being withheld for coaching stipend earnings.
Follow-up Result:
The Board has not yet verified whether the 2% calculation has been adjusted for coaching stipends. This issue is not resolved.
2. The Audit Report cited a finding that a periodic review of payroll registers was not taking place and as a result membership status of three employees was in question.
Follow-up Result: The employees in question have either been brought into membership status or are no longer on the City/School payroll. The periodic review of payroll data has not yet been initiated although the process has been considered. This issue is not resolved.
3. The Audit Report cited a finding that consulting contracts were not required or signed by three consultants who were hired by the Board to provide financial and administrative consultation services during 2008 and up to the present period of audit field work in April 2010.
Follow-up Result: All consultants working for the Board are required to have signed contracts. The auditor reviewed the file of the current consultant and observed a properly signed contract agreement. The issue has been resolved.
The Commission wishes to acknowledge the effort demonstrated by the staff of the Gloucester Retirement Board to correct the deficiencies cited in the most recent examination of the system. PERAC auditors will 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