Office of the Legislative Auditor - Financial Audit Division

Report Summary
Minnesota State Retirement System
Report on Internal Control Over Financial Reporting

 

Financial Audit Division Report 13-03

Released February 14, 2013

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Conclusion

The Minnesota State Retirement System’s (MSRS) basic financial statements for the fiscal year ended June 30, 2012, were fairly presented in all material respects. However, MSRS had a weakness in internal control over financial reporting, as noted below.

MSRS fully resolved four prior audit findings.¹ In fiscal year 2012, MSRS developed a comprehensive internal control structure, strengthened security access controls over information systems, and improved internal controls over several financial operations and over its financial reporting process.

Finding

• MSRS’s internal controls did not detect that it had misclassified refunds or health care reimbursements in three of its funds on the financial statements it submitted for audit.

Audit Objectives and Scope

Audit Objectives:

• To audit MSRS’s basic financial statements for the fiscal year ended June 30, 2012.
• To report on MSRS’s internal controls and compliance over financial reporting.
• To follow up on the status of prior audit findings.

Audit Scope:

• Cash and Investments
• Contributions and Investment Income
• Transfers
• Refunds and benefit payments

 

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¹ Minnesota Office of the Legislative Auditor, Financial Audit Division, Report 12-10, Minnesota State Retirement System, May 10, 2012.