REPORT OF THE AUDIT COMMITTEE

 

November 19, 2008

 

The Honorable,

The Board of Commissioners of Cook County

 

ATTENDANCE

 

Present:

Chairman Daley, Vice Chairman Goslin, Commissioners Butler, Quigley, Maldonado and Schneider (6)

 

Ex-Officio Member:  Laura A. Burman – Cook County Auditor (1)

 

Absent:

Commissioner Gorman (1)

Ex-Officio Member: Donna L. Dunnings, Chief Financial Officer, Bureau of Finance (1)

 

Also Present:

Commissioners Peraica and Sims (2); John Morales – Cook County  Comptroller; John Cookinham – Chief Financial Officer, Oak Forest Hospital; Kari Scharff – Assistant, Public Administrator’s Office; Antonio Hylton – Chief Information Officer, Bureau of Technology; Kelvin Magee – Chief Financial Officer, Cermak Health Services; Pat Hagan – Deloitte & Touche Management, LLP;  Tracey Guidry – Deloitte & Touche Management, LLP;  

 

Court Reporter:     Anthony W. Lisanti, C.S.R.

 

Ladies and Gentlemen:

 

        Your Audit Committee of the Board of Commissioners of Cook County met pursuant to notice on Wednesday, November 19, 2008 at the hour of 1:30 P.M. in the Board Room, Room 569, County Building, 118 North Clark Street, Chicago, Illinois.

 

Chairman Daley entered into the record a letter to Donna Dunnings, Chief Financial Officer, containing questions regarding the annual financial statements. (See attached). Chairman Daley requested leave to allow a presentation from Pat Hagan of Deloitte & Touche.

 

Pat Hagan presented an overview of Cook County’s Comprehensive Annual Financial Report (CAFR), stating that it covers the fiscal year ended November 30, 2007. He complimented the auditing team for completing the audit two months faster than last year, with the cooperation of Ms. Dunnings and Mr. Morales, the Cook County Comptroller.

 

Your Committee has considered the following items and, upon adoption of this report, the recommendations are as follows:

 

296225

COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FOR THE FISCAL YEAR ENDED NOVEMBER 30, 2007.  Transmitting a Communication, dated September 15, 2008 from Donna L. Dunnings, Chief Financial Officer, Bureau of Finance:

 

Subject:   Comprehensive Annual Financial Report (CAFR)

for the Fiscal Year ended November 30, 2007

 

submitting a copy of Cook County’s Comprehensive Annual Financial Report (CAFR) for the fiscal year ended November 30, 2007, prepared by the Cook County Office of the Comptroller and audited by Deloitte & Touche, LLP.  Respectfully request that the report be referred to the Cook County Board’s Audit Committee for further consideration.

 

*  Referred to the Audit Committee on September 17, 2008.

*  Deferred at the Audit Committee Meeting of October 8, 2008.

 

Commissioner Peraica asked Mr. Morales for his opinion regarding a dual pension system, i.e., a defined benefit plan for current staff, and a defined contribution plan for new hires.

 

Mr. Morales replied that was a matter for the Board to consider.

 

Vice Chairman Goslin, seconded by Commissioner Butler, moved to receive and file Communication Number 296225.  The motion carried.

 

296787

COOK COUNTY SINGLE AUDIT REPORT FOR THE FISCAL YEAR ENDED NOVEMBER 30, 2007.  Transmitting a Communication, dated October 14, 2008 from Donna L. Dunnings, Chief Financial Officer, Bureau of Finance:

 

Subject: Cook County Single Audit Report for the Fiscal Year ended November 30, 2007

 

submitting herewith is a copy of the Cook County Single Audit Report for the fiscal year ended November 30, 2007, applicable to our major federal grant programs, prepared by the Cook County Office of the Comptroller and audited by Washington, Pittman & McKeever, LLC.  I respectfully request that the report be referred to the Audit Committee of the Board of Commissioners for further consideration.

 

*  Referred to the Audit Committee on October 15, 2008.

 

Vice Chairman Goslin, seconded by Commissioner Butler, moved to receive and file Communication Number 296787.  The motion carried.

 

297164

COOK COUNTY’S BASIC FINANCIAL STATEMENTS FOR SINGLE AUDIT REPORT FOR THE FISCAL YEAR ENDED NOVEMBER 30, 2007.  Transmitting a Communication, dated November 4, 2008 from Donna L. Dunnings, Chief Financial Officer, Bureau of Finance:

 

Subject:  Cook County’s Basic Financial Statements for Single Audit Report for the fiscal year ended November 30, 2007

 

submitting herewith a copy of Cook County’s Basic Financial Statements, which includes the Independent Auditor’s Report for the fiscal year ended November 30, 2007 which was prepared by Deloitte & Touche, LLP.  This is part of the Cook County Single Audit Report for the fiscal year ended November 30, 2007 previously submitted.  I respectfully request that the report be referred to the Audit Committee of the Board of Commissioners for further consideration.

 

*  Referred to the Audit Committee on November 5, 2008.

 

Vice Chairman Goslin, seconded by Commissioner Butler, moved to receive and file Communication Number 297164.  The motion carried.

 

297165

COOK COUNTY BUREAU OF HEALTH FACILITIES MANAGEMENT LETTER FOR FISCAL YEAR ENDED NOVEMBER 30, 2007.  Transmitting a Communication, dated November 4, 2008 from Donna L. Dunnings, Chief Financial Officer, Bureau of Finance:

 

Subject:  Cook County Bureau of Health Facilities Management Letter for fiscal year ended November 30, 2007

 

submitting herewith a copy of Cook County Health Facilities Report to Management for fiscal year ended November 30, 2007 which was prepared by Deloitte & Touche, LLP and the responses from Bureau Management relating to the Bureau of Health Annual Fiscal Audit for the fiscal year ended November 30, 2007 previously submitted.  I respectfully request that the report be referred to the Audit Committee of the Board of Commissioners for further consideration.

 

*  Referred to the Audit Committee on November 5, 2008.

 

Vice Chairman Goslin, seconded by Commissioner Butler, moved to receive and file Communication Number 297165.  The motion carried.

 

297166

COOK COUNTY’S REPORT TO MANAGEMENT FOR THE FISCAL YEAR ENDED NOVEMBER 30, 2007.  Transmitting a Communication, dated November 4, 2008 from Donna L. Dunnings, Chief Financial Officer, Bureau of Finance:

 

Subject:  Cook County’s Management Letter for the fiscal year ended November 30, 2007

 

submitting herewith a copy of Cook County Report to Management for fiscal year ended November 30, 2007 which was prepared by Deloitte & Touche, LLP and the responses from County Management relating to the Comprehensive Annual Financial Report for the fiscal year ended November 30, 2007 previously submitted.  I respectfully request that the report be referred to the Audit Committee of the Board of Commissioners for further consideration.

 

*  Referred to the Audit Committee on November 5, 2008.

 

Commissioner Peraica inquired about inadequate staffing in the administrative offices of the Health and Hospitals System.

 

John Cookinham, Chief Financial Officer, Oak Forest Hospital, stated there is one certified accountant preparing the financial statements and one staff person accumulating financial data at Oak Forest Hospital.  Provident Hospital is staffed at similar levels. The staff meets on a monthly basis with the Comptroller’s Office to review financial statements.

 

Commissioner Peraica inquired on the accounting deficiency in the Public Administrator’s Offices.

 

Kari Scharff, Assistant, Public Administrator’s Office, stated that various banking institutions are used at different times, with accounts being opened and closed.  The discrepancy resulted from errors in reconciliation.

 

Chairman Daley inquired about the performance of the Bureau of Technology.

 

Antonio Hylton, Chief Information Officer, Bureau of Technology, stated that in the 2009 proposed budget, a comprehensive disaster recovery program, and a continuity of government program, are requested.

 

Commissioner Butler, seconded by Commissioner Schneider, moved to receive and file Communication Number 297166.  The motion carried.

 

Chairman Daley asked the Secretary to the Board to call upon the registered public speaker, in accordance with Cook County Code, Sec. 2-108(dd):

 

1.  George Blakemore -  Concerned Citizen

 

Commissioner Butler, seconded by Commissioner Maldonado, moved to adjourn the meeting.  The motion carried and the meeting was adjourned.

 

YOUR COMMITTEE RECOMMENDS THE FOLLOWING ACTION

WITH REGARD TO THE MATTERS NAMED HEREIN:

 

Communication Number 296225                   Received and Filed

Communication Number 296787                   Received and Filed

Communication Number 297164                   Received and Filed

Communication Number 297165                   Received and Filed

Communication Number 297166                   Received and Filed

 

 

 

Respectfully submitted,

Audit Committee

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxx

John P. Daley, Chairman

Attest:

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Matthew B. DeLeon, Secretary

 

 

The transcript and audio recording for this meeting is available from the Office of the Secretary to the Board, 118 North Clark Street, Room 567, Chicago, IL 60602.