Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Minnesota State Retirement System
Financial Statement Audit

 

Financial Audit Division Report 14-03 Released February 13, 2014

Conclusion

The Minnesota State Retirement System’s basic financial statements for the fiscal year ended June 30, 2013, were fairly presented in all material respects.1 However, the retirement system had a weakness in internal control over financial reporting, as noted below.

The Minnesota State Retirement System fully resolved the prior audit finding.2 In fiscal year 2013, the retirement system improved internal controls in order to correctly classify refunds and health care reimbursements in the defined contribution funds financial statements.

Finding

  • The Minnesota State Retirement System submitted a financial statement footnote for audit that overstated the short term debt securities subject to interest rate risk by approximately $370 million.

Audit Objectives and Scope

Audit Objectives:

  • To audit Minnesota State Retirement System’s basic financial statements for the fiscal year ended June 30, 2013.
  • To report on Minnesota State Retirement System’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
  • Benefit Payments and Refunds
  • Transfers

 


1 The Minnesota State Retirement System’s financial statements, including our audit opinion, can be located on its Web site at: https://www.msrs.state.mn.us/financial-information.
2 Minnesota Office of the Legislative Auditor, Financial Audit Division Report 13-03, Minnesota State Retirement System, Report on Internal Control Over Financial Reporting, February 14, 2013.

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