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3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary

Financial Audit

Minnesota State Board of Investment

Fiscal Year Ended June 30, 2000

Audit Conclusions:

  • We issued an unqualified opinion on the financial statements of the Supplemental Investment Fund and the Post Retirement Fund for the year ended June 30, 2000.
  • We issued a Report on Compliance and Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. We did not report any material weaknesses involving the internal control over financial reporting and its operation or noncompliance that would be required to be reported under Government Auditing Standards.
  • We audited payroll and other administrative expenditures of the Minnesota State Board of Investment for the three years ended June 30, 2000. We concluded that SBI's controls provided reasonable assurance that administrative expenditures were properly recorded in the accounting records and complied with applicable legal provisions.
Background Information:

The Minnesota State Board of Investment (SBI) manages the investment of retirement fund assets of the Minnesota State Retirement System, Teachers Retirement Association, and the Public Employees Retirement Association. SBI also invests funds for other state agencies, including invested treasurer's cash which is the idle cash in state accounts. At June 30, 2000, SBI administered over $53 billion in state assets. SBI uses both internal staff and external investment managers to fulfill its responsibilities. The external firms invest and manage the assets of the retirement funds and the assigned risk plan. SBI staff manage the other state investments.

SBI incurs approximately $3.3 million annually in expenditures for payroll and other administrative costs such as rent, supplies, equipment, and travel. SBI finances approximately $2.3 million of the administrative expenditures from General Fund appropriations. SBI charges the remaining administrative costs directly to the funds receiving the investment services. State agencies reimburse SBI for the investment services provided. SBI deposits the reimbursements in the General Fund as nondedicated receipts.

Office of the Legislative Auditor, Room 140, 658 Cedar St., St. Paul, MN 55155 : or 651‑296‑4708