Will Minnesota Legislative Auditor Do Its Job: Conduct "Special Review" of State Pensions?
After an independent forensic review of state pensions exposed financial irregularities which were reported to FBI, SEC and the AG, the Office of the Legislative Auditor is asked to investigate.
In Minnesota, the Office of the Legislative Auditor (OLA) is “a professional, nonpartisan audit and evaluation office within the legislative branch of state government which is responsible for overseeing state pension financials. In addition to the financial audits it conducts annually, the OLA also conducts a small number of ad hoc special reviews. Special reviews address specific concerns or allegations and, as a result, they typically have a narrower scope than audits and evaluations.”
State law gives OLA the authority to conduct these special reviews. They are often triggered by concerns by legislators, other public officials, private individuals, or media reports.
Special reviews are often triggered by concerns by legislators, other public officials, private individuals, or media reports.
Following completion of our independent expert forensic investigation into Minnesota’s state pensions in late September commissioned by thousands of teachers—a review which exposed significant financial irregularities—just yesterday, we formally requested that the OLA conduct a special review of the state’s pensions. A copy of the full 113-page expert review (below) was provided to the OLA.
In response to our formal request, we received the following email immediately from Libby A. Wallace, Special Reviews Auditor:
Thank you for contacting the Office of the Legislative Auditor (OLA) with your concerns regarding state pensions. Please allow us time to review the information you provided. OLA leadership and the special reviews team will discuss your complaint and contact you once we have determined what steps, if any, OLA should take regarding your complaint.
There should be no question that the findings in our independent, expert forensic investigation provide a “reasonable basis” for an in-depth special review.
There should be no question that the findings in our independent, expert forensic investigation provide a “reasonable basis” for an in-depth special review.
Further, while state officials refused to provide any of the key investment documents we requested in connection with our review, presumably OLA auditors could compel the pensions to fork them over. Thus, it appears the public could—if the OLA agrees to conduct an audit, i.e., does its job—definitively determine whether the pensions have been telling the truth regarding their investment performance and costs.
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