We have audited the basic financial statements of the Virginia Retirement System (System) as of and for the year ended June 30, 2024, and issued our report thereon, dated December 11, 2024. Our report, included in the System’s Annual Report, is available at the Auditor of Public Accounts’ website at www.apa.virginia.gov and at the System’s website at www.varetire.org. Our audit found:

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

• one matter involving internal control and its operation necessary to bring to management’s attention that also represents an instance of noncompliance with applicable laws and regulations or other matter required to be reported under Government Auditing Standards; however, we do not consider it to be a material weakness; and,

• adequate corrective action with respect to prior audit findings and recommendations identified as complete in the Findings Summary included in the Appendix.

In the section titled “Internal Control and Compliance Findings and Recommendations," we have included our assessment of the conditions and causes resulting in the internal control and compliance finding identified through our audit as well as recommendations for addressing the finding. Our assessment does not remove management’s responsibility to perform a thorough assessment of the conditions and causes of the finding and develop and appropriately implement adequate corrective actions to resolve the finding. Those corrective actions may include additional items beyond our recommendations.

RETIREMENT SYSTEM EMPLOYER SCHEDULES

The Commonwealth and its localities have previously implemented Governmental Accounting Standards Board Statements No. 68 and 75. These standards address accounting and reporting of pension and other post-employment benefit activity by employers. Therefore, in addition to our audit of the System’s financial statements, we were separately required to audit information prepared by the System for all of the participating employers. In August 2024, the System provided actuarial valuation reports, schedules of the applicable pension and other post-employment benefit amounts, footnote disclosure information, and other financial reporting guidance to the participating state and local government employers for their fiscal year 2024 financial statements. Likewise, our office published the reports that included our audit opinions over the plan schedules and applicable pension and other postemployment benefit amounts for pension and other post-employment benefit plans administered by the System. This information is available at the Auditor of Public Accounts’ at www.apa.virginia.gov and at the System’s website at www.varetire.org.