TRS calculated and paid executive incentive compensation for its plan year 2016 in accordance with its executive performance incentive pay plan.
However, it did not have formal, detailed policies and procedures for the calculation and review process for its executive performance incentive pay plan that required TRS to document
its calculation and review processes. In addition, TRS did not verify source documentation from a third party for one input into its incentive compensation calculation; however, auditors
determined that the input TRS used in that calculation was accurate. Those issues increase the risk of making inaccurate award payouts due to undetected mistakes in the inputs, calculations,
and review process. The TRS executive director was the only participant for the 2016 performance period. TRS awarded $9,550 in incentive pay to its executive director.
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