Joseph E. Connarton, Executive Director
March 23, 2011
Gregory Hargadon, Chairman
Weymouth Retirement Board
807 Broad Street
Weymouth , MA 02189
REFERENCE: Report of the Examination of the Weymouth Retirement Board for the three-year period from January 1, 2006 through December 31, 2008.
Dear Chairman Hargadon:
The Public Employee Retirement Administration Commission has completed a follow-up review of the findings and recommendations contained in its audit report of the Weymouth 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 results are as follows:
1. The Audit Report cited a finding that the Director of Municipal Finance for the Town of Weymouth was inappropriately serving as ex-officio member of the Weymouth Retirement Board. That while serving on the board he was violating the tenets of G.L.. c. 32, § 20 (4)(b) that clearly states that the ex-officio in municipal retirement boards shall be the City Auditor or Town Accountant or the person performing similar duties.
Follow-up Result: At the board meeting of August 24, 2010 the Director of Municipal Finance submitted his letter of resignation from the board effective August 31, 2010. The City Auditor has served as the ex-officio member since then. This finding is considered resolved.
2. The Audit Report cited a finding that the Treasurer’s Office has not provided a complete and formal reconciliation of the retirement boards bank accounts.
Follow-up Result: Monthly reconciliations are now being provided to the retirement board. Appropriate paperwork including bank statements, reconciliation and outstanding check lists are also provided. This finding is considered resolved.
3. The Audit Report cited a finding that a security deposit had been paid to the landlord of the Retirement Board’s office space but not recognized on the board’s books as an asset.
Follow-up Result: The appropriate General Ledger entries have been made. Effective in calendar year 2009 Prepaid Expenses in the amount of $3,100.00 is recognized as an asset on the balance sheet of the Weymouth Retirement Board. This finding is considered resolved.
4. The Audit Report cited a finding that the board does not receive appropriation payments from two of its three units on a timely basis. And that no interest has been collected on any late payments.
Follow-up Result: These two units are now paying their appropriations on a timely basis. This finding is considered resolved.
5. The Audit Report cited a finding that not all members are consistently having the correct retirement deduction taken from their compensation. There are pay types that do not qualify as regular compensation yet are not excluded from retirement deductions.
Follow-up Result: Prior to the close of the board’s fiscal year all payrolls are now verified for the appropriate retirement deductions. The retirement board staff is working with the various payroll departments and the Human Resources Department throughout the year in order to ensure compliance throughout the organization. This finding is considered resolved.
The Commission wishes to acknowledge the significant effort demonstrated by the staff of the Weymouth Retirement Board to correct the deficiencies cited in the most recent examination of the system.
Thank you for your continued cooperation in this important matter.
Joseph E. Connarton