Office of the Legislative Auditor - Financial Audit Division

Report Summary
Minnesota State Retirement System
Financial Statement Audit

 

Financial Audit Division Report 12-10

Released May 10, 2012

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Conclusion

The Minnesota State Retirement System’s (MSRS) basic financial statements for the fiscal year ended June 30, 2011, were fairly presented in all material respects. However, MSRS had some material weaknesses in internal control, including two unresolved prior audit findings, and noncompliance over financial reporting, as noted below.

Findings

• Prior Finding Not Resolved:¹ MSRS did not identify, analyze, and document its internal controls related to financial reporting and business operations, which also has resulted in delays in issuing its financial statements in a timely manner.
• Prior Finding Not Resolved:² MSRS did not have adequate controls to ensure computer users’ access was appropriate. It also allowed employees to perform incompatible duties without establishing mitigating controls.
• MSRS had material weaknesses in its internal controls over several of its financial operations.
• MSRS submitted for audit financial statements, including footnote disclosures, that contained several errors.

Audit Objectives and Scope

Audit Objectives:

• To audit MSRS’s basic financial statements for the fiscal year ended June 30, 2011.
• To report on MSRS’s internal controls and compliance over financial reporting.
• To follow up on the status of prior audit findings.

Audit Scope:

• Cash and Investments
• Contributions and Investment Income
• Transfers
• Refund and Benefit Payments

 

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¹ Minnesota Office of the Legislative Auditor, Financial Audit Division, Report 11-04, Minnesota State Retirement System, February 18, 2011 (Finding 2).
² Minnesota Office of the Legislative Auditor, Financial Audit Division, Report 11-04, Minnesota State Retirement System, February 18, 2011 (Finding 1).