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
March 22, 2010
George F. McCray, Chairman
Quincy Retirement Board
1250 Hancock Street, Suite 506S
Quincy , MA 02169
REFERENCE: Report of the Examination of the Quincy Retirement Board for the two-year period from January 1, 2006 through December 31, 2007.
Dear Mr. McCray:
The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the Quincy 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 three specific findings and recommendations included in the audit report for the period referenced above. The results are as follows:
1. The Audit Report cited six membership findings; three dealing with the Quincy Housing Authority, two with payroll codes and one with the school department not withholding the proper 2% incremental deduction.
Follow-up Result: The Quincy Retirement Board has received a complete list of all payroll codes in use and is reviewing payroll reports for compliance. The Quincy school department has been advised as to the proper way to process the additional incremental 2% deduction. However, the Quincy Housing Authority still has not fully complied with the recommendation to advise the Board of new hires and retirement status. This finding is only partly resolved.
2. The Audit Report cited a finding that not all active members over the age of seventy had made the irrevocable election to continue contributing to the retirement system.
Follow-up Result: The Retirement System has notified all members over the age of seventy. They have been advised of their options and have submitted a complete election form. This finding is considered resolved.
3. The Audit Report cited three separate issues dealing with financial information. The first dealt with the City Treasurer’s reconciliation and maintenance of the retirement board bank accounts. The second deals with Eastern Bank accounts and interest postings. The third deals with Annuity Savings Fund discrepancies.
Follow-up Result: The City Treasurer has addressed the first and second issues. Reconciliations are completed on a timely schedule and interest is posted on a more current basis.
Regarding the Annuity Saving Account; the board staff is still actively working on a complete reconciliation between the membership module records and the General Ledger account. This finding is only partly resolved.
The Commission wishes to acknowledge the effort demonstrated by the staff of the Quincy 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