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
Mary Ann Bradley | Paul V. Doane | James M. Machado | Donald R. Marquis | Robert B. McCarthy
Joseph E. Connarton, Executive Director
April 8, 2009
Mr. John Neilon - Board Chairman
Lawrence Retirement System
Riverwalk – Entry C
354 Merrimack Street 3rd Floor
Lawrence, MA 01843
REFERENCE: Report of the Examination of the Lawrence Retirement System for the three-year period from January 1, 2005 through December 31, 2007.
Dear Chairman Neilon:
The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the Lawrence Retirement System 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. Board Member Attendance: The Audit Report cited a finding that a Board member had an absenteeism rate above 25% which is considered to be excessive.
Follow-up Result:
This issue is resolved. The auditor reviewed Board attendance from May 2008 through February 2009 and noted a significant improvement in attendance.
2. Membership: The Audit Report cited a finding that a sample of members’ regular and 2% deduction rates were not being correctly withheld.
Follow-up Result: The issue has been partially resolved. The Auditor reviewed a November 2008 payroll register and noted that there are no retirement deductions being withheld on tool allowances. Furthermore a member of the LHA is not having the 2% deduction withheld correctly when earnings include two paychecks in one pay-period.
The Commission wishes to acknowledge the effort demonstrated by the staff of the Lawrence 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