Arizona Office of the Auditor General, Phoenix, is searching for a firm to conduct a performance audit of the $33.7 billion Arizona State Retirement System and $7.9 billion Arizona Public Safety Personnel Retirement System, both in Phoenix.
The performance audit is required by state law to take place about every 10 years, said Laura Long, performance auditor, in a telephone interview. Both retirement systems are on the same cycle, she said. The state's Joint Legislative Audit Committee put together the parameters for this audit in a resolution on Oct. 3, 2013.
The chosen firm will “determine ASRS' and PSPRS' investment performance during the past 10 fiscal years (2005 through 2014), identify the causes for and impact of any underperformance and make recommendations for improving each agency's investment performance,” according to the RFP posted on the auditor general's website.
The firm will also determine if the pension funds have “adequate processes and other controls for selecting, monitoring, and terminating contracts with alternative investment managers and valuing these investments, identify the reasons for and impact of any inadequate controls and make recommendations for improving controls.”
NEPC is the investment consultant for both pension funds.
Proposals are due at 5 p.m. MST on July 28. The office hopes to select a firm by Aug. 11. The final reports by the selected firm would be due on or before Sept. 30, 2015.