Office of the Legislative Auditor - Financial Audit Division

Report Summary
Teachers Retirement Association

Financial Audit

For the Year Ended June 30, 1994

Objectives:

Examine the system's financial statements.

Review internal control structure: Employer and employee contributions, annuity payments and refunds of contributions.

Test compliance with certain finance-related legal provisions.

Conclusions:

We issued an unqualified opinion on the financial statements which were published in the association's annual report for fiscal year 1994.

We noted two weaknesses in the internal control structure over inactive member accounts:

• TRA does not maintain contact with its inactive members.
• TRA does not adequately separate refund duties.

We found one possible departure from finance-related legal provisions:

• We noted that the interest rate to be paid on certain refunds is unclear and that an Attorney General's opinion should be sought.