Our audit of the Virginia Retirement System for the year ended June 3 0, 2004, found:

• the financial statements are presented fairly in all material respects;

• no instances of noncompliance with material laws and regulations that are required to be reported;

• one matter we consider a reportable condition; however, we do not consider this matter to be a material weakness in internal control; and,

• adequate implementation of corrective action on prior audit findings. Our audit finding includes the following recommendation: Remove Unnecessary RIMS Users Access Timely.

We discuss this issue in the section entitled, "Internal Control Finding and Recommendation." The Virginia Retirement System publishes an annual report that contains their financial statements and required disclosures. The System expects to publish their report by late December 2004.