Office of the Legislative Auditor - Financial Audit Division

Audit Conclusions:

• We issued an unqualified opinion on the financial statements of the Minnesota State Retirement System as of and for the year ended June 30, 2004.
• We issued our Report on Internal Control Over Financial Reporting and on Compliance and Other Matters 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. However, the report discusses a noncompliance issue that was resolved by a 2004 legislative change.

Background Information:

The Minnesota State Retirement System administers six defined benefit retirement plans and two defined contribution plans:

• State Employees
• State Patrol
• Correctional Employees
• Judges
• Legislators
• Elected State Officials
• Unclassified Employees
• Health Care Savings

The plans cover most state government and University of Minnesota employees and selected public-service organizations. In addition, the system contracts for the administration of a deferred compensation plan available to state employees and other public employees throughout the state.

At June 30, 2004, the Minnesota State Retirement System’s total net assets (excluding the deferred compensation plan) were $8.4 billion. For the year ended June 30, 2004, MSRS received contributions of about $248 million and paid benefits and refunds of about $432 million.