The Indiana Public Employees' Retirement Fund, Indianapolis, received an unqualified audit opinion from the Indiana State Board of Accounts for the $15.6 billion fund's financial statements for the fiscal year ended June 30, its first "clean" audit since 2002, according to a statement from the pension fund.
"When I arrived in 2005, the auditors identified serious issues with managing our finances," David Adams, Indiana PERF executive director, said in a statement. "Our leadership aggressively implemented a plan to improve the situation, and I'm extremely pleased with the result." Mitchell E. Daniels Jr., who was elected Indiana governor in 2004, replaced Indiana PERF's trustees and brought in Mr. Adams in late 2005. "The result was a significantly improved 2005 audit leading to the unqualified opinion for 2006," according to the statement.
An SBOA audit of Indiana PERF for fiscal year 2004, for example, noted 30 findings of inadequate internal controls, including trading $269 million in bonds for mutual funds in March 2004 without apparent board approval.