Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
State Board of Investment
Financial Statement Report

 

Financial Audit Division Report 09-15 Released April 2, 2009

Conclusion

The Minnesota State Board of Investment’s financial statements for the Supplemental Investment Fund and the Post Retirement Investment Fund were fairly presented in all material respects. However, the board had some weaknesses in internal control over financial reporting as noted below.

Finding

  • The State Board of Investment did not identify, analyze, and document internal controls related to financial reporting and business operations.

Audit Scope

We audited the State Board of Investment’s basic financial statements for the Supplemental Investment Fund and the Post Retirement Investment Fund for the fiscal year ended June 30, 2008.

Background

The State Board of Investment (the board) manages the investment of retirement fund assets of the Minnesota State Retirement System, Teachers Retirement Association, and the Public Employees Retirement Association. The board also invests funds for other state agencies, including invested treasurer’s cash, which is the idle cash in state accounts. At June 30, 2008, the board administered approximately $58 billion in state assets. The board 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, while internal staff manage the other state investments.

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