The Chicago Teachers’ Pension Fund (CTPF) Board of Trustees approved the release and posting of the Fund’s Forensic Audit Report, without redactions, on the Fund’s website. The audit, which covered disbursements, the General Ledger, and the Investment Department for fiscal years 2015-2021, found no evidence of improprieties or malfeasance. The audit noted minor errors and deficiencies and suggested recommendations for improvements to CTPF management and the Board of Trustees. 

“Our Trustees initiated this forensic audit to promote transparency and affirm that the Fund is operating efficiently, effectively, and in compliance with all applicable laws and standards,” said Carlton W. Lenoir, Sr., Executive Director. “We are pleased that the audit, conducted by a highly reputable, certified accounting firm with extensive forensic audit experience, found no evidence of improprieties or illegal activity. Although some minor errors and areas for improvement were identified, these findings provide us with valuable insights to enhance the operations of the Fund. We are committed to continuous improvement and ensuring that our members’ pension dollars are managed responsibly and will be available when needed.” 

In March 2021, CTPF’s Board of Trustees, retained BDO USA (BDO) to conduct a Forensic Audit of certain financial activities of the Fund for the Fiscal Years 2015 – 2021 (July 1, 2014 – June 31, 2021). BDO is part of a global network of Assurance, Tax, and Advisory firms which extends across 164 countries and territories. Its Forensics group comprises approximately 400 professionals performing investigative, compliance, due diligence, and dispute resolution. 

The forensic audit was designed to address specific whistleblower allegations regarding the accuracy and completeness of CTPF’s financial records. The disbursement review analyzed transaction level details for vendor and employee expenses (excluding employee payroll and pension benefits) which included a population of approximately 13,543 transactions and disbursements activity of over $30.9 million. 

The general ledger review encompassed over 400,000 journal entry line items across 530 general ledger accounts (inclusive of all balance sheet and income statement accounts). 

The review of the Investments Department covered an operational analysis of fees paid to Investment Managers, Consultants, and the Custodian. The audit also assessed controls and underlying supporting documentation to ensure the reasonableness, transparency, accuracy, and completeness of recorded transactions and analyzed investment performance through qualitative and quantitative measures including but not limited to asset classes assets under management, and the year of initial investment. 

The total cost of all phases of the three-year forensic audit was $811,994. 

The executive summary and the complete report can be found here.