1982 Report of Examination Police Pension Fund I a
TO: PRESIDENT & BOARD OF TRUSTEES
FROM: William R, Balling
DATE : March 11 , 1982
SUBJECT: ILLINOIS DEPARTMENT OF INSURANCE
REPORT OF EXAMINATION OF THE BUFFALO GROVE
POLIgE P NSION FUND - 3 YR. PERIOD ENDING 4/30/81
Ladies & Gentlemen :
Pursuant to state law, the audit has been conducted for
the Police Pension Fund for the period ending April 30 , 1981.
Pursuant to statute, the Village Board should consider accept-
ance of this Pension Fund on March 15 , 1982 . The report
makes several suggestions concerning procedures of the
Pension Board, and the Village President has reviewed these
with the president of the Police Pension Board so that the
recommendations can be implemented within the next 60 days.
The Village President has requested that staff support
the Police Pension Fund to the extent that they desire it ,
to accomplish these proposals within a 60 day period. Con-
cerning the specific comments , the following will be implemented:
1. Compliance with Section 3-135/Village Treasurer
A. The Department of Finance & General Services will
continue to account for all transactions of the
fund as is current practice. Like policies will
be followed with all Village funds .
B. On a regular basis , usually when cash on hand
exceeds $5 ,000, a notice will be given to the
Police Department member of the Board to contact
the fund president for an investment strategy and
receive his direction.
C. The Police Department , upon receiving this direction
will notify the depository bank of the investment
decision , i . e. , transfer of funds to investment
account , purchase certificate of deposit , government
securities , repurchase agreement , etc. The Director
of Finance & General Services will be notified at
that time.
D. The Director of Finance & General Services will make
sure that the following is performed on behalf of
the Village Treasurer :
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1 . Will prepare an authorizing memo of
confirmation for his signature regarding the
investment draw funds.
2 . Will forward one copy of the signed con-
firmation to the Pension Board for their files ,
and keep one for the Finance Department .
3 , Will post transaction to cash subsidiary
ledger,
4. Will post transaction to Village general
ledger.
2. Police Pension Board Files
The secretary of the Pension Board will be assembling
information to develop member files and keep those
updated on a regular basis . The records should be fully
up to date within a 60 day period.
3. Minutes of the Board Meeting
Comments concerning minutes again will be handled by
the Board secretary. He will assure that the minute
records are properly and permanently maintained.
4. Duplicate Books
We disagree with the opinion of the auditor concerning the
desire to maintain dual records for the fund. As you know
we do audit the fund in the context of the annual report
prepared by Peat , Marwick, Mitchell and that document is
being considered for the MFOA certificate of compliance
at this time. We believe those records are suitable
and dual sets of books would lead to unnecessary confusion
with the management of this fund.
Respectfully submitted,
W L IAM R. BALL TO
Village Manager
WRB/em