Teacher Retirement Board Audit Recommends Strengthened Controls On Purchase Orders

by Donald Eng

An audit of the Teacher’s Retirement Board has recommended strengthening the controls over purchase orders after auditors found $113,476 spread over six vouchers for which the corresponding purchase orders lacked sufficient funds as of the invoice dates, according to a report from the state Auditors of Public Accounts.

The audit, which covered the fiscal years ending June 30 2023 and 2024, uncovered just the single issue. The auditors noted there had been no recommendations from previous audits.

In its response to the audit, management of the TRB said it was in agreement with the auditors’ finding.

“Each item with existing approved vendors and expenses related to our approved annual budget. As each item was included in our annual budget, management feels that funds were available at the time of each purchase and included in the agencies allotted funds for the period,” the board wrote in its response. “However purchase orders were not initiated timely as evidence the funds were available. Management will strengthen internal controls.”

According to the audit, the board is responsible for managing the teachers’ retirement system. The board administers a state-subsidized defined benefit retirement system for public school educators who work at least half-time. Public school teachers are not covered by Social Security. The board also provides health insurance for some retired members and their spouses and partially reimburses towns that provide health insurance for retirees and spouses not covered by the board’s health plan. 

As of June 30, 2024, there were 39,276 retired members and 68,985 nonretired members, 53,421 who were actively teaching, according to the report.