Office of the Legislative Auditor - Financial Audit Division

Report Summary
Minnesota State Retirement System
Financial Statement Audit

 

Financial Audit Division Report 14-03

Released February 13, 2014

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Conclusion

The Minnesota State Retirement System’s basic financial statements for the fiscal year ended June 30, 2013, were fairly presented in all material respects. However, the retirement system had a weakness in internal control over financial reporting, as noted below.

The Minnesota State Retirement System fully resolved the prior audit finding.¹ In fiscal year 2013, the retirement system improved internal controls in order to correctly classify refunds and health care reimbursements in the defined contribution funds financial statements.

Finding

• The Minnesota State Retirement System submitted a financial statement footnote for audit that overstated the short term debt securities subject to interest rate risk by approximately $370 million.

Audit Objectives and Scope

Audit Objectives:

• To audit Minnesota State Retirement System’s basic financial statements for the fiscal year ended June 30, 2013.
• To report on Minnesota State Retirement System’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
• Benefit Payments and Refunds
• Transfers

 

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¹ Minnesota Office of the Legislative Auditor, Financial Audit Division Report 13-03, Minnesota State Retirement System, Report on Internal Control Over Financial Reporting, February 14, 2013.