Minnesota Office of the Legislative Auditor
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Report Summary
Teachers Retirement Association

Financial Audit

Fiscal Year Ended June 30, 1996

 

Public Release Date: January 17, 1997 No. 97-04

Agency Background

The Teachers Retirement Association (TRA) is the administrator of a multi-employer, cost sharing Teachers Retirement Fund. Its function is to provide a secure and dependable source of retirement income for its members or beneficiaries as a result of retirement, disability, or death. TRA's assets as of June 30, 1996, were approximately $9.4 billion.

Audit Objectives and Scope

The primary objective of our audit was to render an opinion on the Teachers Retirement Association's financial statements. These statements are included in both TRA's and the state of Minnesota's Comprehensive Annual Financial Reports for fiscal year 1996. This objective included whether TRA's financial statements present fairly its financial position and results of operations in conformity with generally accepted accounting principles.

As part of our work, we are required to gain an understanding of the internal control structure and ascertain whether the TRA complied with laws and regulations that may have a material effect on its financial statements. During our audit, we gained an understanding of the contributions, annuities, refunds, payroll control cycles, and the financial statement preparation cycle.

Conclusions

The TRA's Comprehensive Annual Financial Report for the year ended June 30, 1996, includes our unqualified audit opinion thereon, dated November 20, 1996. The TRA financial statements are also included in the state of Minnesota's Comprehensive Annual Financial Report for the year ended June 30, 1996, which includes our audit opinion dated December 2, 1996. TRA designed and implemented management controls for material financial activities, and for the items tested, complied with material legal provisions.

 

Office of the Legislative Auditor ♦ Room 140, 658 Cedar St., St. Paul, MN 55155