Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve the system’s operations. It helps the system accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
Internal auditing enhances the system’s success by providing the Board of Trustees and management with objective assurance and advice. Internal auditing strengthens the system’s:
- Value creation, protection and sustainability
- Governance, risk management and control processes
- Decision-making and oversight
- Reputation and credibility with its stakeholders
- Ability to serve the public interest
Internal Audit Office Oversight
The Operations, Audit and Governance Policy Committee assists the board in overseeing the internal audit function. Specifically, the committee:
- Assures that internal auditors have access to all necessary documents, information and systems in the organization
- Receives and reviews all internal audit reports and management letters
- Assures follow up of audit findings
- Reviews as appropriate the effectiveness of the internal audit function, including compliance with The Institute of Internal Auditors’ Standards for the Professional Practice of Internal Auditing
- Meets with the chief internal auditor on a regular basis to discuss any matters that the committee or the chief internal auditor believes should be discussed privately, consistent with open meeting laws
The committee’s charter is outlined in the board’s governance manual. Members include:
- Chairman Dean M. Scheinert
- Vice-Chairman Brian Moore
- Trustee Alan Maguire
- Trustee Nate Weber
PSPRS Trust Employer and Local Board Audit Program
The system’s plans were created to provide uniform, consistent and equitable statewide programs for their respective eligible members. The PSPRS Trust Employer and Local Board Audit Program is one way in which the system ensures correct benefits are paid and the fund is protected for its members. Specifically, the audit program was designed to:
- Promote accurate reporting of payroll information used to calculate benefits for system members
- Assess employer and local board compliance with joinder agreements and Arizona Revised Statutes requirements, primarily with select provisions of Title 38 Public Officers and Employees
- Inform and educate employers and local boards on their requirements and responsibilities
The program is authorized by the board’s fiduciary duty to protect plan beneficiaries and state law. Audits will be conducted by the Internal Audit Office pursuant to the provisions of Arizona House Bill 2381 (Laws 2021, Chapter 34) and board-approved audit plans.
PSPRS Trust Employer and Local Board Audit Program Audit Process
For questions or additional information about requirements and responsibilities, contact:
- [email protected] for PSPRS, CORP and/or EORP employers
- [email protected] for PSPRS and/or CORP local boards
Established in February 2022, the Integrity Hotline allows anonymous reporting of potential or suspected allegations of fraud, waste, abuse or unethical behavior associated with PSPRS-managed retirement plans and administration. The Internal Audit Office provides quarterly updates and annual reports regarding the Integrity Hotline to the Operations, Audit and Governance Policy Committee and the Board of Trustees.
Contacting the Internal Audit Office
The Internal Audit Office team can be reached by email at [email protected], or directly:
The Internal Audit Office is a member of the Association of Public Pension Fund Auditors and other professional organizations.