REPORT OF THE AUDIT
COMMITTEE
The Honorable,
The Board of Commissioners of
ATTENDANCE
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Present: |
Chairman Daley, Vice Chairman Goslin, Commissioners Ex-Officio
Members: Laura A. Burman – Cook County
Auditor; and Donna L.
Dunnings – Chief Financial Officer, Bureau of Finance (2) |
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Absent: |
Commissioner Gorman (1) |
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Also
Present: |
Commissioners Beavers and Peraica (2); Alexis A. Herrera –
Budget Director, Office of the Sheriff; Lisa M. Walik – Director, Department
of Risk Management; Earl Dunlap – Transitional Administrator, Juvenile
Temporary Detention Center; Karen Crawford – Director, President’s Office of
Employment Training (POET); John Cookinham – Chief Financial Officer, Bureau
of Health Services; Kelvin Magee – Comptroller, Stroger Hospital of Cook
County; Pat Hagan – Regional Managing Partner, Public Sector Industry,
Deloitte & Touche, LLP; Jeffrey Sirkin – Senior Consultant and Actuary
with ARM Tech, a subsidiary of AON Consulting, Inc.; and Michele Greco –
Partner, Ernst & Young 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
Your Committee
has considered the following items and upon adoption of this report, the
recommendations are as follows:
Chairman Daley asked Donna Dunnings, Chief Financial
Officer, to provide an overview of the audits pertaining to the County.
Ms. Dunnings provided an overview of accomplishments and
goals. She stated that there is now a
Director of Financial Reporting in the Comptroller’s office, Faissal Abassi,
who is responsible for coordinating all auditing functions for the County. Additionally, Wrunda
Bates and Lillian Adarmes have been assigned to the
Fixed Asset area, an area in which the County has been deficient in previous
audits.
Chairman
Daley entered into the record letters to the Chief Financial Officer, Donna
Dunnings, Dr. Robert Simon, Interim Chief, Bureau of Health Services, and the
Honorable Maria Pappas, Treasurer of Cook County.
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288051 |
INDEPENDENT AUDITOR’S REPORT OF THE FINANCIAL STATEMENT,
Maria Pappas, Cook County Treasurer by John P. Dalen, Director of Internal
Audit, transmitting a Communication, dated The Office of the * Referred to the Audit Committee, as amended on |
In response to an inquiry from Commissioner Quigley
pertaining to future usage of the J.D. Edwards system, Ms. Dunnings stated that
she is working on an assessment with the Chief Information Officer, Antonio
Hylton. Ms. Dunnings expects to report
to the Board on the assessment by
Chairman Daley stated that the report would be sent to the
Finance Committee for further discussion.
Commissioner Quigley,
seconded by Commissioner Butler, moved to receive and file Communication Number
288051, as amended. The motion carried.
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290372 |
SHERIFF OF COOK COUNTY, Thomas J. Dart, by Alexis A. Herrera,
Budget Director, transmitting a Communication: requesting permission to write-off from the
Eviction Fee Fund $1,312.00 in non-collectible checks dated between * Referred to the Audit Committee on |
Alexis A. Herrera, Budget Director for the Office of the
Sheriff, provided the Committee members with an overview of the collection
procedures followed. Ms. Herrera stated
three attempts are made by mail, followed by an attempt in person from Sheriff’s
personnel. Ms. Herrera commented the
Office of the Clerk of the Circuit Court and the Office of the Sheriff are
currently working on the implementation of NSF check reporting for the
Sheriff’s Office into the Clerk’s ARDC system.
Ms. Herrera believes this will significantly reduce the amount of
non-collectible checks.
Chairman Daley asked the Sheriff’s Office to ascertain the
cost of printing the names of the attorneys presenting NSF checks in the Law
Bulletin. Ms. Herrera responded she
would provide the committee with the cost.
Commissioner Butler,
seconded by Commissioner Quigley, moved the approval of Communication Number
290372. The motion carried.
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290552 |
BUREAU OF FINANCE, by Donna L. Dunnings, Chief Financial
Officer, transmitting a Communication, dated Subject: Comprehensive Annual Financial Report
(CAFR) for the Year Ended submitting herewith a copy of * Referred to the Audit Committee on |
Commissioner
Maldonado, seconded by Commissioner Butler, moved to receive and file
Communication Number 290552. The motion
carried.
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290824 |
DEPARTMENT OF RISK MANAGEMENT, by Lisa M. Walik, Director,
transmitting a Communication, dated Re: Actuarial Analysis FY 2006 The Department of Risk Management respectfully submits a
copy of the Actuarial Analysis for the fiscal year ending * Referred to the Audit Committee on |
In response to an inquiry from
Commissioner Peraica in reference to page 12 of the analysis regarding the
overall sum of settlements for last year, Jeffrey Sirkin, representing ARM Tech, stated the figures
reflected for the years 2008 and 2009 are projections.
Commissioner Butler,
seconded by Commissioner Quigley, moved to receive and file Communication
Number 290824. The motion carried.
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291097 |
BUREAU OF HEALTH SERVICES 2006 AUDIT AND MANAGEMENT
LETTER. Transmitting a Communication,
dated submitting herewith a copy of the Cook County Bureau of
Health Service’s 2006 Audit and Management Letter for the fiscal year
ended November 30, 2006 which was prepared by Ernst & Young, LLP and the
responses from Bureau Management relating to the Bureau of Health Annual
Financial Audit Report for the fiscal year ended November 30, 2006. I respectfully request that the reports be
forwarded to the Audit Committee of the Board of Commissioners for further
discussion. * Referred to the Audit Committee, as amended on |
Chairman Daley noted that the percentage of self-pay
patients in 2006 increased to 52%, from 47% in 2005. He asked Mr. Cookinham how this increase
would affect the Bureau of Health Services.
Mr. Cookinham replied that there would be a reduction in
patient revenue. He added that there
would be efforts to try to increase eligibility.
Commissioner Peraica inquired as to the anticipated patient
revenues in 2008 after all eligibility is exhausted.
Mr. Cookinham responded that the higher November 2007
patient revenues may not be sustained in future months, but that he would get
back to the Committee members with additional information.
Vice Chairman Goslin restated that
47%-52% of the patients served by the Bureau of Health Services have no ability
to pay. The best the Bureau expects in
the future would be 43%-44% of patients that do not have the ability to
pay. He restated these
figures to emphasize the problem with the Bureau is systemic.
Commissioner
Maldonado, seconded by Commissioner Quigley, moved to receive and file
Communication Number 291097, as amended.
The motion carried.
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291098 |
Subject: Single Audit Report for the Fiscal Year
ended submitting a copy of the County Single Audit Report,
applicable to our major federal grant programs, for the fiscal year ended
November 30, 2006, prepared by the Bureau of Finance and audited by
Washington, Pittman & McKeever, LLC.
As part of this report, I am also including a copy of the County’s
Basic Financial Statements for the fiscal year ended * Referred to the Audit Committee on |
Earl Dunlap, Transitional Administrator of the
Karen Crawford, Director of the President’s Office of
Employment Training (POET), reviewed some of the policies and procedures
recently adopted by POET as a result of issues brought up in the Audit Report.
Commissioner Peraica requested additional information
related to the nature of the audit adjustments totaling over $61 million for
the Bureau of Health Services for the fiscal year ending
John Cookinham, Chief Financial Officer of the Bureau of
Health Services responded that the Bureau of Health Services was not preparing
monthly, quarterly or bi-annual financial statements; only annual statements
were prepared. Due to this, some adjustments
were necessary. Mr. Cookinham stated the
Bureau of Health Services currently is working to prepare monthly statements.
Additional information pertaining to the audit adjustments
for the Bureau of Health Services was given by Michele Greco, Partner with
Ernst & Young, and Kelvin Magee, Comptroller of Stroger Hospital of Cook
County.
Commissioner Butler,
seconded by Vice Chairman Goslin, moved to receive and file Communication
Number 291098. The motion carried.
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291099 |
Subject: submitting a copy of the County’s 2006
Management Letter for fiscal year ended * Referred to the Audit Committee on |
In response to a question from
Commissioner Peraica regarding the implementation of GASB 45, Ms. Dunnings
replied GASB 45 would be implemented in the year 2008. Pat Hagan, Regional Managing Partner, Public Sector Industry of
Deloitte & Touche, commented on GASB 45, and its impact on governments
nationwide. He further stated GASB 45
requires that health premium obligations for retirees be part of the audited
financial statements.
Commissioner Quigley,
seconded by Commissioner Butler, moved to receive and file Communication Number
291099. 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
moved to adjourn the meeting, which motion was duly seconded. The motion carried and the meeting was
adjourned.
YOUR COMMITTEE
RECOMMENDS THE FOLLOWING ACTION
WITH REGARD TO THE
MATTERS NAMED HEREIN:
Communication Number 288051 Received
and Filed, as amended
Communication Number 290372 Approved
Communication Number 290552 Received
and Filed
Communication Number 290824 Received
and Filed
Communication Number 291097 Received
and Filed, as amended
Communication Number 291098 Received
and Filed
Communication Number 291099 Received
and Filed
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Respectfully
submitted, Audit
Committee XXXXXXXXXXXXXXXXXXXXXX John P.
Daley, Chairman |
Attest:
XXXXXXXXXXXXXXXXXXXXXXXXXXX
Matthew B.
DeLeon, Secretary
The transcript and audio recording for this meeting is
available from the Office of the Secretary to the Board,