The Minnesota State Board of Investment (SBI) manages the investment of retirement fund assets of the Minnesota State Retirement System, Teachers Retirement Association, and the Public Employees Retirement Association. SBI also invests funds for other state agencies, including invested treasurer's cash, which is the idle cash in state accounts. At June 30, 2002, SBI administered approximately $45 billion in state assets. SBI uses both internal staff and external money managers to fulfill its responsibilities. The external firms invest and manage the assets of the retirement funds and the assigned risk plan. SBI staff manage the other state investments.
SBI expended $2.2 million in fiscal year 2002 for administrative costs, such as professional contracts, payroll, and for other operating costs, such as rent, supplies, equipment, and travel. SBI charged back its operating costs to the funds receiving the investment services. SBI deposited the reimbursements in the General Fund as nondedicated receipts.
Our work at the Minnesota State Board of Investment focused on auditing their financial statements. We reviewed the agency's internal controls and compliance with legal provisions in relation to that objective.