Office of the Legislative Auditor - Financial Audit Division

Report Summary
Minnesota State Retirement System
Financial Statement Report

 

Financial Audit Division Report 09-17

Released April 23, 2009

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Conclusion

The Minnesota State Retirement System’s (MSRS) financial statements were fairly presented in all material respects. However, MSRS had some weaknesses in internal control over financial reporting as noted below.

Findings

• MSRS did not identify, analyze, and document its internal controls related to business operations and financial reporting.
• MSRS did not have adequate controls to ensure computer users’ access was appropriate on an ongoing basis, and it did not adequately restrict access to some computer systems to eliminate incompatible duties.

Audit Scope

We audited MSRS’s basic financial statements for the fiscal year ended June 30, 2008.

Background

MSRS was established by the state Legislature in 1929 to provide retirement benefits to state employees. MSRS’s administration is governed by an 11-member board of directors. MSRS administers ten different retirement plans that provide retirement, survivor, and disability benefit coverage for Minnesota state employees as well as employees of the Metropolitan Council and many nonfaculty employees at the University of Minnesota. In addition, they administer the State of Minnesota Deferred Compensation Plan, the Health Care Savings Plan, and the Supplemental Retirement Plan for Hennepin County. For financial reporting purposes, MSRS is considered a pension trust fund of the State of Minnesota.

MSRS had net assets totaling approximately $14 billion at June 30, 2008. For the year ended June 30, 2008, MSRS received contributions of about $572 million and paid benefits and refunds of about $766 million.