LACERS Management Audit – Public Release

As required under City Charter Section 1112, the Los Angeles City Controller, the Office of the Mayor and the Los Angeles City Council regularly engage with independent qualified management auditors to perform management audits of the Los Angeles City Employees’ Retirement System. These audits examine whether LACERS is operating in the most efficient and economical manner and evaluate the allocation of its investments.

LACERS has reviewed the formal transmittal from the Office of the Controller, and we are pleased with the findings of the audit. We invite you to review the entire audit here as well as view highlights of key findings contained within the report as follows:

Investment Performance/Asset Allocation
“The portfolio has produced meaningful returns over inflation over time.”
“The portfolio has produced favorable risk adjusted net of fee returns relative to peer public funds and its benchmark.”

Administration/Management of the System
“In reviewing the administrative and investment management expenses over the Scope period, we observed that these two expenses make up a small portion of overall expenditures. The majority of expenditures are for benefit payments.”

Governance
“LACERS exhibits best practices through the adoption of a thorough Board Governance Manual and transparency by posting the Manual on its public website.”

In closing, we are reminded that progress is a never-ending pursuit. This audit, like all audits received before it, include recommendations to LACERS Board of Commissioners and staff for review and possible further action. Rest assured that we are promptly reviewing and prioritizing these recommendations for future release.