Treasurer of the State of Arizona June 30, 2008 Report Highlights -Financial Audit

Office Of The Auditor General

Informations

• Publié par: Orgoi
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• Langue: English

Extrait

Treasurer of the
State of Arizona
REPORT
Treasurer’s Office ManagesHIGHLIGHTS
FINANCIAL STATEMENT AUDIT the State’s and Local
Subject Government Investments
The Arizona State Treasurer’s
Office provides financial
services to state agencies,
Investment Trust Funds consist of the following:counties, community college
districts, tribal governments,
Individual
Local Government Investmentcities, and towns by Agency Funds Investment AccountPool-Long Termsafekeeping investments, $6.8 billion 2%1%investing monies on deposit Local
with the Treasurer, and Government
distributing monies, as Investment
necessary, to these entities. Pool-
GovernmentThe Treasurer is responsible
41%for preparing annual financial
statements, maintaining
strong internal controls, and
demonstrating accountability
for custody of public monies.
As the auditors, our job is to Investment Trust Funds
determine whether the Local Government$5.8 billion
Investment PoolTreasurer’s Office has met its
56%responsibilities.
Our Conclusion As of June 30, 2008, the Treasurer’s Arizona cities, towns, counties, and
Office had investments totaling $12.6 political subdivisions have asked the
The information in the billion; 45.7 percent was held in Treasurer to invest for them, as well as
Treasurer’s financial investment trusts, and 54.3 percent was investments of state monies.
statements is reliable. The held in an agency capacity. Agency • The Local Government Investmentfinancial statements present
Funds are custodial in nature and do not Pool—Government accounts for overthe fiscal year-end balances
present results of operations or have a $2.3 billion invested for Arizona localof investments purchased by
measurement focus. These funds are government entities and state monies.the Treasurer’s Office on
used to account for assets that the This pool was established under thebehalf of the State and other
governmental entities and Treasurer holds for state departments, same administrative rules as the LGIP,
assets held for state agencies, commissions, boards, and but pooled investments are limited to
agencies, commissions, other governments in an agency capacity. those securities that carry the full faith
boards, and other Investment Trust Funds account for and credit of the United States
governments in an agency pooled and nonpooled assets held and government.
capacity. invested by the Treasurer on behalf of • The Local Government Investment
state agencies and other governmental Pool—Long-Term accounts for over
entities using the economic resources $54 million invested for the longer-term
measurement focus. The investment trust investment needs of Arizona cities,
funds consist of three investment pools towns, counties, and political
and one individual investment account, subdivisions.
which have been grouped as follows: • The Individual Investment Account2008 includes more than $113 million in
• The Local Government Investment Pool investments purchased on behalf of
Year Ended June 30, 2008 (LGIP) was the largest with over $3.2 the Central Arizona Water Conservation
billion. It accounts for monies that District.Treasurer Diversifies Security
Types to Reduce Risk
TO OBTAIN
Arizona law only allows the Treasurer to repurchase agreements, and corporate MORE INFORMATIONN
invest in certain types of securities as equity stocks and securities, which at
described below. As shown in the figure June 30, 2008, represented $12.4 billion, A copy of the full report
below, the Treasurer’s Office invests or 99 percent, of the $12.6 billion in can be obtained by calling
primarily in U.S. government securities, investments that the Treasurer manages. ((660022)) 555533-00333333
Investments by Type
June 30, 2008
or by visitingOther
Standard and our Web site at:1%
Poor's 400
www.azauditor.govand 500 index
pools
U.S. Contact person for
10%
government this report:
securities
Corporate Tara Erickson
50%
securities
19%
Repurchase
agreements
20%
Investment Rates of Return
Declined in Fiscal Year 2008
Because of the decline in the economy 6.6 percent in fiscal year 2000 and its
and lower yield rates in fiscal year 2008, lowest of 1.45 percent in fiscal year 2004.
the investment rates of return declined. The LGIP—GOV also had its highest rate
The figure below shows the Treasurer’s of return of 6.34 percent in fiscal year
rates of return for the Local Government 2000 and its lowest of 1.06 percent in
Investment Pool (LGIP) and Local fiscal year 2004. The LGIP—GOV has
Governmental Investment Pool— been expected to and has earned lower
Government (LGIP—GOV) for the years rates of return than the LGIP because of
ended June 30, 1999 through 2008. The the decreased credit risk associated with
LGIP earned its highest rate of return of governmental securities.
Investment Rates of Return
Years Ended June 30, 1999 through 2008
(Unaudited)
6.60%
7.00%
6.00%
5.07% 5.26%6.34% 4.83%
5.00%
4.66%
4.98%
4.00%
4.67% 2.90% 4.54%4.13% 2.39%
3.00%
2.17% 1.88% 1.45% 2.72%
2.00%
2.12%1.63% 1.54%
1.00%
1.06%
0.00% REPORT
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 HIGHLIGHTS
Fiscal Year
FINANCIAL STATEMENT AUDIT
LGIP LGIP—GOV
Year Ended June 30, 2008Source: Arizona State Treasurer's Office data obtained from the LGIP and LGIP—GOV yield rates
tables (Web site: http://aztreasury.gov).
page2
Rates of Returns