Audit 2000 Report Template
18 Pages
English
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Audit 2000 Report Template

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18 Pages
English

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Report of the PUBLIC EMPLOYEE RETIREMENT ADMINISTRATION COMMISSION on the Examination of the Methuen Contributory Retirement System For the Three Year Period January 1, 2003 - December 31, 2005 PERAC 2005: 12-060-15 TABLE OF CONTENTS Letter From The Executive Director.………………………………………………1 Statement Of Ledger Assets And Liabilities .............................................................2 Statement Of Changes In Fund Balances ..................................................................3 Statement Of Income .................................................................................................4 Statement Of Disbursements......................................................................................5 Investment Income.....................................................................................................6 Statement Of Allocation Of Investments Owned ......................................................7 Supplementary Investment Regulations ....................................................................8 Notes To Financial Statements Note 1 - The System..............................................................................................10 Note 2 - Significant Accounting Policies..............................................................11 Note 3 - Supplementary Membership Regulations..............................................12 Note 4 - ...

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Report of the  PUBLIC EMPLOYEE RETIREMENT  ADMINISTRATION COMMISSION  on the Examination of the  Methuen  Contributory Retirement System For the Three Year Period  January 1, 2003 - December 31, 2005  PERAC 2005: 12-060-15   
 
 
TABLE OF CONTENTS
    Letter From The Executive Director.1  Statement Of Ledger Assets And Liabilities .............................................................2  Statement Of Changes In Fund Balances ..................................................................3  Statement Of Income.................................................................................................4  Statement Of Disbursements......................................................................................5  Investment Income.....................................................................................................6  Statement Of Allocation Of Investments Owned ......................................................7  Supplementary Investment Regulations ....................................................................8  Notes To Financial Statements  Note 1 - The System..............................................................................................10  Note 2 - Significant Accounting Policies..............................................................11  Note 3 - Supplementary Membership Regulations..............................................12  Note 4 - Administration Of The System ...............................................................14  Note 5 - Actuarial Valuation And Assumptions ...................................................15  Note 6 - Membership Exhibit................................................................................16    
 
 
July 10, 2007
            The Public Employee Retirement Administration Commission has completed an examination of the Methuen Retirement System pursuant to G.L. c. 32, s. 21. The examination covered the period from January 1, 2003 to December 31, 2005. This audit was conducted in accordance with the accounting and management standards established by the Public Employee Retirement Administration Commission in regulation 840 CMR 25.00. Additionally, all supplementary regulations approved by PERAC and on file at PERAC are listed in this report.   In our opinion, the financial records are being maintained and the management functions are being performed in conformity with the standards established by the Public Employee Retirement Administration Commission. There are no significant audit findings to report.  We commend the Methuen Retirement Board for the exemplary operation of the system.  In closing, I acknowledge the work of examiners James Ryan and James Tivnan who conducted this examination and express appreciation to the Board of Retirement and staff for their courtesy and cooperation.              
 
Sincerely,
Joseph E. Connarton Executive Director
 
 
Methuen Retirement System   STATEMENT OF LEDGER ASSETS AND LIABILITIES  FOR THE THREE YEAR PERIOD BEGINNING JANUARY 1, 2003 AND ENDING DECEMBER 31, 2005    FO R TH E PERIO D ENDING DECEM B ER 3 1, 2 00 5 2 0 04 2 0 0 3 $991,014 $750,081 $593,871 0 0 0 0 0 0 26,943,170 27,916,173 26,698,445 0 0 0 8,511,717 8,155,130 7,371,421 10,020,984 9,035,395 7,132,167 0 0 0 20,787,264 19,358,025 20,291,306 0 0 0 0 0 0 0 0 0 5,905,508 5,112,608 4,611,367 194,481 103,935 0 (67,207) (61,496) (50,196) $ 7 3 ,2 86 ,9 3 1 $7 0 ,3 6 9,8 5 2 $6 6 ,6 4 8 ,3 8 0 $22,880,094 $21,065,713 $20,562,440 7,859,194 7,931,844 6,753,666 0 0 0 3,734 3,712 3,690 0 0 0 42,543,908 41,368,583 39,328,584 $ 7 3 ,2 86 ,9 3 1 $7 0 ,3 6 9,8 5 2 $6 6 ,6 4 8 ,3 8 0      
AS S ETS Cas h Sh o rt Term In ves tmen ts Fixed In co me Secu rities E u ities Po o led Sh ort Term Fu n d s Po o led Do mes tic Eq uity Fu n ds Po o led In tern atio nal Equ ity Fun d s Po o led Glo bal Eq u ity Fun d s Po o led Do mes tic Fixed In come Fu n d s Po o led In tern atio nal Fixed In co me Fu n ds Po o led Glo bal Fixed In co me Fu n ds Po o led A ltern ativ e Inv es tment Fu n d s Po o led Real Es tate Fu n d s A cco u n ts Receiv ab le A cco u n ts Payab le TOTAL FUND B ALANCES A n n uity Sav in g s Fu n d A n n uity Res erv e Fu n d Pen s io n Fu n d M ilitary Serv ice Fu n d Ex en s e Fun d Pen s io n Res erv e Fu n d
TOTAL
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Be innin Balance (2003) Recei ts Interfund Trans fers Dis burs ements Endin Balance 2003 Recei ts Interfund Trans fers Dis burs ements Endin Balance 2004 Receipts Interfund Trans fers Dis burs ements Ending Balance (2005)
 Methuen  Retirement System STATEMENT OF CHANGES IN FUND BALANCES FOR THE THREE YEAR PERIOD BEGINNING JANUARY 1, 2003 AND ENDING DECEMBER 31, 2005    Military Pens ion Pens ion S ervice Expens e Res erve Fund Fund Fund Fund 2,794,916 4,247 0 28,370,316 2,614,602 1,522 525,084 10,965,940 10,370 (2,079) 0 (7,673) (5,419,888) 0 (525,084) 0 0 3,690 0 39,328,583 3,473,529 22 593,745 4,916,560 2,876,752 0 0 (2,876,560) (6,350,281) 0 (593,745) 0 0 3,712 0 41,368,583 5,180,983 22 628,080 2,707,575 1,528,252 0 0 (1,532,250) (6,709,235) 0 (628,080) 0 0 3,734 0 42,543,908   
Annuity Annuity S avings Res erve Fund Fund 18,858,670 6,670,207 2,508,781 190,228 (637,621) 637,003 (167,389) (743,771) 20,562,440 6,753,666 2,535,171 231,071 (1,817,462) 1,817,269 (214,437) (870,162) 21,065,713 7,931,844 2,749,167 236,563 (584,430) 588,428 (350,356) (897,641) 22,880,094 7,859,194
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Total All Funds 56,698,355 16,806,158 0 (6,856,133) 66,648,380 11,750,098 0 (8,028,626) 70,369,852 11,502,390 0 (8,585,311) 73,286,931
    
Methuen Retirement System STATEMENT OF INCOME  FOR THE THREE YEAR PERIOD BEGINNING JANUARY 1, 2003 AND ENDING DECEMBER 31, 2005  
Annuit S avin s Fund: M emb ers Ded u ctio n s Tran s fers from oth er Sys tems M emb er M ake Up Pay ments an d Redep o s its In v es tmen t In co me Credited to M emb er A cco u n ts S ub Total Annuity Res erve Fund: In v es tmen t In co me Credited A n n u ity Res erv e Fu n d Pens ion Fund: 3 (8) (c) Reimb u rs emen ts fro m Oth er Sy s tems Receiv ed fro m Co mmo nwealth fo r COLA and Su rv ivo r Ben efits Pens io n Fu n d A p p ro p riatio n S ub Total Military S ervice Fund: Co n trib u tio n Received fro m M u n icip ality o n A cco u n t o f M ilitar Serv ice In v es tmen t In co me Credited M ilitary Serv ice Fu n d S ub Total Expens e Fund: Exp en s e Fu n d A p p ro p riatio n In v es tmen t In co me Credited to Exp en s e Fu n d S ub Total Pens ion Res erve Fund: Federal Gran t Reimbu rs emen t Pens io n Res erv e A p p ro p riatio n In teres t No t Refun d ed M is cellan eo u s Inco me Exces s Inv es tmen t In come
S ub Total TOTAL RECEIPTS
FO R TH E PERIO D ENDING DECEM B ER 3 1, 2 0 0 5 2 0 0 4 2 0 0 3 $2,521,523 $2,290,832 $2,199,476 56,063 119,538 110,745 48,978 12,045 14,654 122,603 112,756 183,906 2 ,7 4 9 ,1 6 7 2 ,5 3 5 ,1 7 1 2 ,5 0 8 ,7 8 1 2 3 6 ,5 6 3 2 3 1 ,0 7 1 1 9 0 ,2 2 8
    
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121,650 422,256 4,637,076 5 ,1 8 0 ,9 8 3 0 22 2 2 0 628,080 6 2 8 ,0 8 0 56,497 343,373 1,792 0 2,305,912 2 ,7 0 7 ,5 7 5 $ 11 ,5 0 2 ,3 9 0
92,743 184,965 3,195,820 3 ,4 7 3 ,5 2 9 0 22 2 2 0 593,745 5 9 3 ,7 4 5 45,402 4,393 2,347 18,702 4,845,717 4 ,9 1 6 ,5 6 0 $ 11 ,7 5 0 ,0 9 8
58,896 245,194 2,310,513 2 ,6 1 4 ,6 0 2 1,495 27 1 ,5 2 2 0 525,084 5 2 5 ,0 8 4 34,958 3,138 3,923 0 10,923,922 10 ,9 6 5 ,9 4 0 $ 16 ,8 0 6 ,1 5 8
  
Methuen Retirement System STATEMENT OF DISBURSEMENTS  FOR THE THREE YEAR PERIOD BEGINNING JANUARY 1, 2003 AND ENDING DECEMBER 31, 2005     FOR THE PERIOD ENDING DECEM B ER 31, 2005 2004 2003 $214,204 $101,894 $157,293 136,152 112,544 10,096 350,356 214,437 167,389 896,937 857,893 725,961 704 12,269 17,810 897,641 870,162 743,771
Annuit S avin s Fund: Refunds to M embers Trans fers to other Sys tems S ub Total Annuity Res erve Fund: A nnuities Paid Option B Refunds S ub Total Pens ion Fund: Pens ions Paid  Regular Pens ion Payments  Survivors hip Payments  Ordinary Dis ability Payments  A ccidental Dis ability Payments  A ccidental Death Pa ments  Section 101 Benefits 3 (8) (c) Reimburs ements to Other Sys tems State Reimburs able COLA s Paid Chapter 389 Beneficiary Increas e Paid S ub Total Militar S ervice Fund: Return to M unicipality for M embers W ho W ithdrew Their Funds Ex ens e Fund: Board M ember Stipend Salaries Legal Expens es M edical Expens es Travel Expens es A dminis trative Expens es Fiduciary Ins urance M anagement Fees Cus todial Fees Cons ultant Fees S ub Total TOTAL DIS BURS EMENTS
 
4,642,358 372,019 74,429 1,256,848 231,087 55,658 76,835 0 0 6,709,235 0
15,000 98,785 22,068 0 7,315 27,636 4,907 402,436 8,933 41,000 628,080 $8,585,311
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4,406,171 294,257 90,548 1,210,407 227,127 49,545 72,226 0 0 6,350,281 0
15,000 89,756 0 0 2,934 43,135 4,946 381,316 7,409 49,250 593,745 $8,028,626
3,497,627 299,403 105,740 1,177,915 223,167 49,311 66,725 0 0 5,419,888 0
14,750 87,885 0 0 3,304 23,581 4,046 349,567 13,700 28,250 525,084 $6,856,133
 
  
Methuen Retirement System   INVESTMENT INCOME  FOR THE THREE YEAR PERIOD BEGINNING JANUARY 1, 2003 AND ENDING DECEMBER 31, 2005   
Inves tment Income Received From: Cas h Sh o rt Term Inv es tmen ts Fixed In co me Eq u ities Po o led o r M utu al Fu n d s Co mmis s ion Recap tu re TOTAL INVES TMENT INCOME Plus : Realized Gain s Unrealized Gain s In teres t Du e an d A ccru ed o n Fixed In come Secu rities - Curren t Year S ub Total Les s : Paid A ccru ed In teres t on Fixed In co me Secu rities Realized Lo s s Unrealized Los s In teres t Du e an d A ccru ed o n Fixed In come Secu rities - Prio r Year S ub Total NET INVES TMENT INCOME Income Re uired: A n nu ity Sav in g s Fu n d A n nu ity Res erv e Fu n d M ilitary Service Fu n d Exp en s e Fu n d TOTAL INCOME REQUIRED Net In v es tmen t Inco me Les s : To tal In co me Req u ired  EXCES S INCOME TO THE PENS ION RES ERVE FUND
FO R TH E PERIO D ENDING DECEM B ER 3 1, 2 0 0 5 2 0 0 4 2 0 0 3 $24,576 $8,244 $6,821 0 0 0 0 0 0 330,266 425,450 349,179 1,595,005 1,361,543 1,473,798 0 0 0 1 ,9 4 9 ,8 4 7 1 ,7 9 5 ,2 3 8 1 ,8 2 9 ,7 9 9 1,625,898 1,444,827 441,262 5,391,667 6,592,565 11,401,136 0 0 0 7 ,0 1 7 ,5 6 4 8 ,0 3 7 ,3 9 2 11 ,8 4 2 ,3 9 9 0 0 0 1,768,355 361,117 511,398 (3,905,875) (3,688,203) (1,337,633) 0 0 0 (5 ,6 7 4 ,2 3 0 ) (4 ,0 4 9 ,3 1 9 ) (1 ,8 4 9 ,0 3 0 ) 3 ,2 9 3 ,1 8 1 5 ,7 8 3 ,3 1 1 11 ,8 2 3 ,1 6 7 122,603 112,756 183,906 236,563 231,071 190,228 22 22 27 628,080 593,745 525,084 9 8 7 ,2 6 8 9 3 7 ,5 9 4 8 9 9 ,2 4 5 3 ,2 9 3 ,1 8 1 5 ,7 8 3 ,3 1 1 11 ,8 2 3 ,1 6 7 9 8 7 ,2 6 8 9 3 7 ,5 9 4 8 9 9 ,2 4 5 $2 ,3 0 5 ,9 1 2 $4 ,8 4 5 ,7 1 7 $ 10 ,9 2 3 ,9 2 2
  
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Methuen  Retirement System STATEMENT OF ALLOCATION OF INVESTMENTS OWNED (percentages by category)  FOR THE PERIOD ENDING DECEMBER 31, 2005    PERC EN TAGE MARKET O F TO TAL PERC EN TAGE VALUE AS S ETS ALLO WED Cash $991,014 1.35% 100 Short T erm 0 0.00% 100 Fixed Income 0 0.00% 40 - 80 Equit ies 26,943,170 36.83% 40 Pooled Short T erm Funds 0 0 00% . Pooled D omest ic Equit y Funds 8,511,717 11.63% Pooled Int ernat ional Equit y Funds 10,020,984 13.70% Pooled G lobal Equit y Funds 0 0.00% Pooled D omest ic Fixed Income Funds 20,787,264 28.41% Pooled Int ernat ional Fixed Income Funds 0 0.00% Pooled G lobal Fixed Income Funds 0 0.00% Pooled A lt ernat ive Invest ment Funds 0 0.00% Pooled Real Est at e Funds 5,905,508 8.07% GRAN D TO TALS $73,1 59,657 100 .00%    For the year ending December 31, 2005, the rate of return for the investments of the Methuen Retirement System was 4.82%. For the five-year period ending December 31, 2005, the rate of return for the investments of the Methuen Retirement System averaged 3.87%. For the twenty-year period ending December 31, 2005, since PERAC began evaluating the returns of the retirement systems, the rate of return of the investments of the Methuen Retirement System was 9.17%.     
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 Methuen Retirement System   SUPPLEMENTARY INVESTMENT REGULATIONS  FOR THE THREE YEAR PERIOD ENDING DECEMBER 31, 2005   The Methuen Retirement System submitted the following supplementary investment regulations, which were approved by PERAC on :   July 14, 1992 20.06(2) Bonds shall have a minimum quality rating of Baa or equivalent as rated by one or more recognized bond rating services, excluding Columbia Gas 9.62% due 6/15/2005.  20.06(4) Fixed income holdings which are downgraded by one or more recognized rating services to below a Baa or equivalent rating must be sold within a reasonable period of time not to exceed one year, excluding Columbia Gas 9.62% due 6/15/2005 which may be held at the discretion of the boards investment advisor.  December 10, 1992 20.03(1) Equity investments shall not exceed 50% of the total book value of the portfolio at the time of purchase.  January 5, 1995 20.04(6) American Depository Receipts listed on a United States stock exchange or traded over the counter in the United States, provided that all such investments not exceed 5% of the total market value of the portfolio.  April 4, 1996 16.02(3) The board may incur expenses for investment advice or management of the funds of the system by a qualified investment manager and the board may incur expenses for consulting services. Such expenses may be charged against earned income from investments provided that the total of such expenses shall not exceed in any one year: (a) 1% of the value of the fund for the first $5 million, and (b) 0.5% of the value of the fund in excess of $5 million.  16.02(4) The board may employ a custodian bank and may charge such expenses against earned income from investments provided that such expenses shall not exceed in any one-year .08% of the value of the fund.  September 19, 1996 20.03(1) Equity investments shall not exceed 50% of the portfolio valued at market, including international equities which shall not exceed 10% of the portfolio valued at market.   
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Methuen Retirement System   SUPPLEMENTARY INVESTMENT REGULATIONS - (Contd.)  FOR THE FOUR YEAR PERIOD ENDING DECEMBER 31, 2005   
 20.08(e) Enrollment in the Securities Lending Program offered by Northern Trust Company for the Brandes International Equity Trust provided that the lending of securities is limited to brokers, dealers, and financial institutions and that the loan is collateralized by cash or United States Government securities according to applicable regulatory requirements.   March 20, 1997 20.03(1) Equity investments shall not exceed 60% of the portfolio valued at market, including international equities which shall not exceed 10% of the portfolio valued at market and including American Depository Receipts listed on a United States stock exchange or traded over the counter in the United States which shall not exceed 5% of the portfolio valued at market.  
 
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