A Legislative Summary Document Regarding Employees Retirement System Page: 3 of 4
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Employees Retirement System
SAO Contact: Carol Smith
(512) 936-9500
Giving ERS explicit authority to delegate might help ERS prudently manage its investments. The extent to which ERS is
currently able to rely on these outside parties without such delegation authority suggests that the State would not incur further
risk if the Legislature chose to permit ERS to fully delegate these decisions.
A periodic, independent review of the major investing entities' investment practices and performance could provide the
Legislature with useful information about the management of these large funds. Currently, only TRS receives a periodic
review. An independent firm conducts this review and reports to the Legislative Audit Committee. While the most recent of
these reviews in 2002 reported that TRS investments were well managed overall, it contained useful recommendations for
improvements. (This review covers specific technical areas beyond the scope of audits conducted by the State Auditor's
Office.)
Mandating reviews, such as the one required for TRS, could provide assurance to the Legislature that the other investments
are being well managed overall. The reviews could also provide comparative information on performance and staff
compensation to assess whether the major investing entities are able to offer adequate salaries to attract and retain highly
competent investment professionals.Most Recent Performance Measure Certification
Fiscal Year 1998-Fiscal Year 2003
The results included in An Audit Report on Fiscal Year 2001 Performance Measures at 14 Entities (Report No. 03-008,
November 2002) for this entity are summarized below.Period Goal/Strategy Measure
2001 A Administer Retirement Program ERS Annual Operating Expenses per Active and Retired
MemberCertification Results
Inaccurate2001 A.1.1 Retirement Contributions
2001 A.1.1 Retirement Contributions I Av
2001 B.1.1 Group Insurance AvNumber of Member Accounts Serviced
Certified
erage Number of Days to Provide ERS Retirement Packets Inaccurate
erage Number of Days to Process Claims Inaccurate
Total Measures Certified Without Qualification a 1/4 (25%)Data Reliability Percentage (Certified and Certified with Qualification) 1/4 (25%)
a The percentage of unqualified certifications is presented because it is used in determining an entity's eligibility for performance rewards
as established in the General Appropriations Act [77th Legislature, Article IX, Sec. 6.31(d)(2)].Category
Definition
Reported performance is accurate within +/-5 percent, and controls appear adequate to ensure accurate
collection and reporting of performance data.Certified with Qualification Reported performance is within +/-5 percent, but the controls over data collection and reporting are not
adequate to ensure the continued accuracy of performance data.Factors Prevent
Certification
Inaccurate
Not ApplicableActual performance cannot be determined because of inadequate controls and insufficient documentation.
Reported performance is not within +/-5 percent of actual performance, or there is an error rate of at least 5
percent in the supporting documentation.
IA justifiable reason exists for not reporting performance.January 2003
SAO No. 03-309
-3-
Certified
I
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Reference the current page of this Report.
Texas. Office of the State Auditor. A Legislative Summary Document Regarding Employees Retirement System, report, February 2003; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth518382/m1/3/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.