Forensic Audit Passes

Forensic Audit Back on for Chicago Teachers Pension Fund

By Jim Vail

CTPF Director Carlton Lenoir

The Chicago Teachers Pension Fund Trustees voted unanimously to reverse themselves and authorize the continuation of the forensic audit of the pension fund at a special meeting on July 7, 2022.

The motion was made to authorize the CTPF Executive Director Carlton Lenoir and his staff to contract with BDO to complete the financial transaction forensic audit at a cost not to exceed $175,000. 

The special meeting was called after the board voted against a continuation of the forensic audit at the June 16, 2022 board meeting. After the motion was seconded, CPS Board Trustee Dwayne Truss said he needed more time and discussion on the audit and recommended postponing the motion to continue the forensic audit. The motion then failed and the only two trustees who voted to continue the audit were Trustees Maria J. Rodriguez and Tina Padilla.

Lenoir said at the special meeting that BDO had recommended doing an audit on the investment manager fees and compare what CTPF pays with other pension funds of comparable size.

"It was not a difficult decision," Weiss said. "After gathering more information it was clear to expand the audit."

Weiss said there were many areas of inconsistency and BDO did preliminary work that identified more problems. He said there was no debate among the trustees to do the audit.

The CTPF currently does not have an internal auditor.

Trustee Rodriguez made the original motion for a forensic audit from 2015 - 2020 on October 15, 2020 after former Director Charles Burbridge left the pension fund and was replaced by an interim director Mary Cavallaro. That motion passed in which the auditor was to address whistleblower allegations about financial transactions and discrepancies in accounting. BDO would conduct the audit unannounced and interview fund employees.

BDO was contracted to do a two part audit that can reveal missing money. 

The only Trustee to not vote was Jerry Travlos, who represents the principals. He was not present during the vote.

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