Audit  Audit of the Pension Reserves Investment Management Board

In accordance with Section 12 of Chapter 11 of the Massachusetts General Laws, the Office of the State Auditor has conducted a performance audit of certain activities of the Pension Reserves Investment Management Board (PRIM) for the period July 1, 2022 through June 30, 2024.

The purpose of our audit was to determine the following:

• To what extent did PRIM review the portfolios of emerging managers against its benchmarks to ensure that the Pension Reserves Investment Trust Fund was not exposed to undue risks in accordance with Section 5 of PRIM’s “Investment Policy Statement”?
• To what extent did PRIM work toward its goal of having at least 20% of investment managers who are minorities,¹ women, and people with disabilities, in accordance with Section 23(8)(b) of Chapter 32 of the General Laws?
• To what extent did PRIM review the quarterly calculations of management fees and investment returns in accordance with the third operational risk category of Section V (Risk Analysis) of its Investment and Operations Risk Control Document?

Our audit revealed no significant issues that must be reported under generally accepted government auditing standards. Therefore, we concluded that, during the audit period, PRIM met the relevant criteria regarding our objectives. 

1.    For the purposes of this audit report, we use the term minority in the same manner that the Supplier Diversity Office uses the term minority when defining a minority-owned business in its Comprehensive Annual Report Fiscal Year 2022. The Supplier Diversity Office defines a minority-owned business “as a business that is owned by a racially or ethnically diverse individual. While the [term is] meant to define an ethnically or racially diverse individual . . . [it is] not meant to denote a smaller or lesser status of the individuals . . . Included in this definition.”