Office of the Legislative Auditor - Financial Audit Division

Report Summary
Teachers Retirement Association
Financial Statement Report

 

Financial Audit Division Report 09-05

Released February 26, 2009

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Conclusion

The Teachers Retirement Association’s (TRA) financial statements were fairly presented in all material respects. However, TRA had some weaknesses in internal control over financial reporting as noted below.

Findings

• TRA did not identify, analyze, and document business risks and controls related to business operations and financial reporting.
• TRA’s internal controls over financial reporting did not sufficiently mitigate the risk of financial statement errors.
• TRA did not have adequate controls to ensure computer users’ access was appropriate on an ongoing basis, and it did not adequately restrict access to some computer systems.

Audit Scope

We audited TRA’s basic financial statements for the fiscal year ended June 30, 2008.

Background

TRA administers a multi-employer, cost sharing retirement fund to provide retirement and disability benefits to Minnesota’s public school teachers. It was established in 1931 by the Minnesota Legislature. TRA administers a Basic Plan (without social security coverage) and a Coordinated Plan (coordinated with social security coverage). For financial reporting purposes, TRA is a pension trust fund of the State of Minnesota.

TRA had net assets totaling approximately $18 billion at June 30, 2008. For the year ended June 30, 2008, they received contributions of approximately $445 million and paid benefits and refunds of over $1.3 billion.