Office of the Legislative Auditor - Financial Audit Division

Report Summary
Minnesota State Board of Investment
Financial Statement Audit

 

Financial Audit Division Report 11-16

Released June 16, 2011

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Conclusion

The Minnesota State Board of Investment’s (SBI) statement of net assets was fairly presented in all material respects. However, SBI had material weaknesses in its internal controls over financial reporting, including a prior audit finding that had not been resolved, as noted below. As a result, we limited the scope of our audit opinion to the statement of net assets and did not cover the statement of changes in net assets for fiscal year 2010.

Findings

• Prior Finding Not Resolved:¹ The State Board of Investment did not sufficiently identify, analyze, and document internal controls related to financial reporting and business operations.
• The State Board of Investment had significant delays in preparing its financial statements for fiscal year 2010, and the financial statements required numerous material audit adjustments.
• The State Board of Investment initially provided some inaccurate and inconsistent derivative information to the state’s retirement systems for their financial statement footnote disclosures.

Audit Scope

We audited SBI’s balance sheet for the fiscal year ended June 30, 2010.

 

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¹Office of the Legislative Auditor’s Financial Audit Division Report 09-15, State Board of Investment Financial Statement Report, issued April 2, 2009.