The Legislative Audit Bureau makes 12 recommendations to the State of Wisconsin Investment Board.

Board of Trustees (p. 7)

We recommend the State of Wisconsin Investment Board:  

1. 1. work with the Board of Trustees to allow members of the public to watch or listen online to meetings of the Board’s committees; (p. 8)

Investment and Operating Expenses (p. 25)

 We recommend the State of Wisconsin Investment Board:

1. 2. consistently follow its written policies by justifying in writing each sole-source bid; (p. 36)
   3. annually provide the Board of Trustees with information that compares the Core Fund’s expenses to the expenses of the comparison group for a period of at least five years; (p. 39)
   4. consistently assess its data management capabilities relative to the industry standard model it had previously presented to the Board of Trustees; (p. 40)
   5. report to the Board of Trustees at least annually the results of its assessments, areas of needed improvement, and a timeline for implementing such improvements; (p. 40)

Staff Compensation (p. 41)

 We recommend the State of Wisconsin Investment Board:

1. 6. document more-precise reasons for awarding salary increases; (p. 43)
   7. work with the Board of Trustees to modify its policies to require it to document the reasons why it awards each signing bonus and each retention bonus; (p. 52)
   8. work with the Board of Trustees to modify its policies to require it to document how it determined the amount of each signing bonus and each retention bonus it awards; (p. 52)

Improving Strategic Planning (p. 55)

 We recommend the State of Wisconsin Investment Board:

1. 9. work with the Board of Trustees to develop a multiyear strategic plan that includes the estimated costs and the anticipated benefits of specific investment strategies it plans to manage internally and externally; (p. 59)
   10. assess in the plan the information technology system functions and the numbers and types of staff needed to support current investment strategies and any changes to strategies, including the estimated costs and anticipated benefits of these functions and staff; (p. 59)
   11. report to the Board of Trustees at least annually on its progress toward implementing the plan and any changes it proposes to make to its plan; and (p. 59)

Audit Follow-Up Reporting

1. 12. We recommend the State of Wisconsin Investment Board report to the Joint Legislative Audit Committee by March 28, 2025, on its efforts to implement all of these recommendations.

The Legislative Audit Bureau identifies two issues for legislative consideration.

The Legislature could consider modifying statutes to clarify SWIB’s obligations regarding its management of WRS assets. (p. 17)

The Legislature could consider modifying statutes to require any staff member in the chief of staff and strategy position to file an annual statement of economic interests. (p. 34)