The statutory and fiduciary mandate of the State Board of Administration of Florida (SBA) is to invest, manage and safeguard assets of the Florida Retirement System (FRS) Trust Fund as well as the assets of a variety of other funds. The SBA manages 25 different investment funds and trust clients.
Trusts are investment responsibilities allowed under law and established pursuant to trust agreements or other forms of consent with individual clients. Three of the SBA's 25 funds are government investment pools that contain the assets of a variety of clients. Twenty-two clients have at least some of their assets in separately managed funds. The remaining clients are invested solely in one or more of the SBA's investment pool products. Pooling smaller portfolios into larger investment funds affords economies of scale and other investment management advantages, enhancing returns for participants.
Because the SBA is a constitutional entity, it would take a constitutional amendment to change the way the agency is governed.
The SBA has other responsibilities including: Providing personalized retirement planning and financial counseling support to members of the Florida Retirement System through the MyFRS Financial Guidance Program (created under by the Florida Legislature in 2000) Administering the Florida Hurricane Catastrophe Fund and its associated programs Serving as an investment consultant to retirement programs administered by other Florida state agencies, including the State of Florida Deferred Compensation Program and the State University System Optional Retirement Program Managing the corporate affairs of the Inland Protection Financing Corporation, a public-private entity created to raise funds to pay reimbursement claims for pollution cleanup Managing the corporate affairs of the Florida Water Pollution Control Financing Corporation, which is the state's revolving fund set up to finance clean water initiatives for local water and wastewater systems Administering debt service funds for bonds issued according to the State Bond Act, which allows the Division of Bond Finance to issue tax-exempt bonds to provide capital financing for state and selected government agencies. The SBA also serves as escrow agent for the bonds. Providing administrative support for the Division of Bond Finance and the Florida Prepaid College plans Generating annual, monthly and quarterly reports detailing performance and investment activities
Management and oversight
Board of trustees
While financial specialists at the SBA handle day-to-day operations, the agency is governed by a three-member Board of Trustees, which includes Florida's elected governor, chief financial officer and attorney general. The current trustees are Governor Ron DeSantis, Chief Financial Officer Jimmy Patronis, and Attorney General Ashley Moody.
Each trustee appoints three people knowledgeable about financial markets to the Investment Advisory Council, which provides oversight of the SBA's funds and major investment responsibilities.
The trustees also appoint a three-member Audit Committee to serve as an independent and objective party to monitor SBA's processes for financial reporting, internal controls, risk assessment, compliance and review of the agency's independent auditors and the Office of Internal Audit. The SBA also is audited by two legislative entities: the Auditor General and the Office of Program Policy Analysis and Government Accountability.
Each trustee also appoints two members to the Participant Local Government Advisory Council (PLGAC), which reviews the administration of the local government investment pool known as Florida Prime. The PLGAC was statutorily created as an additional measure to ensure that the fund pool is operated and managed in the best interest of investors in the fund. The Board of Trustees appoints six members to serve on the PLGAC for four-year terms, subject to confirmation by the Florida Senate.
The PLGAC reviews the administration of the trust fund and makes recommendations regarding such administration to the Trustees. The PLGAC prepares and submits a written biennial report to the Trustees, the Investment Advisory Council, and the Joint Legislative Auditing Committee that describes the activities and recommendations of the council.
By statute, the Board of Trustees appoints a nine-member Florida Hurricane Catastrophe Fund Advisory Council to provide the Board with information and advice in connection with its duties related to the Florida Hurricane Catastrophe Fund (FHCF).