Finance committee hears payroll reconciliation update; 401(a) contributions remain outstanding

The Westfield Finance Committee on May 27 received an update on the city payroll reconciliation process and outstanding retirement contributions after the Clerk Treasurer's Office reassumed payroll duties.

City administration staff told the committee that the Clerk Treasurer’s Office has hired a new payroll manager and "as of the last payroll has completely taken over all of the payroll duties," with Baker Tilly continuing to advise on aspects of the work. The administration identified two remaining reconciliation items: accruals (paid-time-off and sick-time calculations) and 401(a) contributions for public safety employees.

Why it matters: the unresolved items affect employee retirement contributions and require accounting adjustments that could prompt a council appropriation to fund retroactive payments. Committee members asked for timing and details; administration did not supply a firm schedule and said final steps were still being completed.

Most important facts: City administration said all employee back pay has been processed but 401(a) contributions have not yet been fully made. Committee members were told about approximately 11 pay periods that required recalculation to correct contribution shortfalls. Administration estimated that reconciling those pay periods required manual recalculation for each pay period. The committee was told that a provisional appropriation will likely be required to cover any employer-side payments once reconciliation is complete, but no dollar amount or timing was provided.

Baker Tilly and contracts: Committee discussion noted Baker Tilly remains engaged as a consultant; administration said the Baker Tilly engagement contract has been executed. The administration reported the city has received at least one Baker Tilly invoice since the engagement began (roughly $30,000) and estimated the next invoice could be in the $30,000–$50,000 range. Committee members also raised questions about ADP payroll software upgrades and whether upgrade costs were charged to the Clerk Treasurer's budget or elsewhere; administration said the cost responsibility was unresolved and that the original ADP contract was approved previously by the city council.

Audit and oversight steps: Committee members asked whether a payroll audit or spot checks going back multiple years had been completed; administration said a payroll audit had been discussed with the Clerk Treasurer and that Baker Tilly has been provided secured reports via the huddle site. No completion date was given; one administration speaker said the anticipated audit timeline was delayed and could extend into the fall.

Discussion vs. decision: The committee heard the update and requested follow-up information from the Clerk Treasurer’s Office and administration. No formal motion or vote related to payroll reconciliation or appropriations was made at the meeting.

The committee moved on to other finance items after asking administration to provide more detailed reconciliations, timing for any needed council appropriation, and copies of the Baker Tilly reports used in the reconciliation.