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3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary

Report on Compliance and Internal Control Over Financial Reporting

Minnesota State Board of Investment

Fiscal Year Ended June 30, 2002

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, 2002.
  • 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 of the United States. 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.
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, 2002, SBI administered approximately $45 billion in state assets. SBI uses both internal staff and external money 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 expended $2.2 million in fiscal year 2002 for administrative costs, such as professional contracts, payroll, and for other operating costs, such as rent, supplies, equipment, and travel. SBI charged back its operating costs to the funds receiving the investment services. SBI deposited the reimbursements in the General Fund as nondedicated receipts.

Our work at the Minnesota State Board of Investment focused on auditing their financial statements. We reviewed the agency's internal controls and compliance with legal provisions in relation to that objective.

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