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3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary

Minnesota State Retirement System

Fiscal Year Ended June 30, 1999

Key Findings and Recommendations:

  • The Minnesota State Retirement System (MSRS) did not promptly deposit or record some receipts. Statutes require daily deposits. MSRS held some checks for nearly a month. We recommended that MSRS comply with statutory provisions and deposit receipts promptly. (Finding 1, page 3)
  • MSRS did not ensure the integrity of its financial data by reconciling its general ledger and subsystems to the state's accounting system in a timely manner. This reconciliation ensures that transactions are recorded consistently on the accounting systems. We recommended that MSRS perform periodic reconciliations of its general ledger, subsidiary ledgers, and the state's accounting system. (Finding 2, page 3)
  • MSRS did not transfer funds between pension plans in a timely manner. At one point during fiscal year 1999, the Unclassified Retirement Plan owed other MSRS retirement plans nearly $8 million. We recommended that MSRS transfer funds between plans more promptly. (Finding 3, page 4)

Agency Response:

  • In its response, MSRS agreed with the findings and recommendations and is taking corrective action to resolve the issues.

Background Information:

  • MSRS administers retirement plans for various groups of state employees. The plans provide income upon retirement, disability, or death. MSRS also administers a deferred compensation plan available to all Minnesota public employees and officials. MSRS' assets at June 30, 1999, totaled nearly $10 billion.
Office of the Legislative Auditor, Room 140, 658 Cedar St., St. Paul, MN 55155 : or 651‑296‑4708