Cook County Audit Committee Meeting Summary – July 14, 2026

The Cook County Audit Committee met on July 14, 2026, at 9:30 AM. The committee reviewed and approved multiple items, including the external audit findings from RSM, the Annual Comprehensive Financial Report (ACFR), the Single Audit of federal awards, and several other financial reports. One public speaker addressed the committee. All motions were approved by voice vote.

Public Comments & Testimony

• George Blakemore, a registered speaker, delivered remarks critical of the audit system, alleging fraud, theft, and abuse. He stated that the system is broken and called for change. He also criticized the arrangement for public speakers and the conduct of commissioners. His comments lasted approximately one minute.

Discussion Items

• Item 26-1593: RSM Annual Audit Findings Report – Presented by Deanne Sethness (RSM). The report covered 14 findings for the county and Cook County Health (CCH). Key findings included material weaknesses over journal entries, loan allowances, expense cutoff, IT controls for Oracle and property tax systems, and the treasurer’s conversion. Significant deficiencies were noted for expired leases, property taxes, construction in progress, and CCH-specific items. Commissioners discussed corrective actions, particularly for IT segregation of duties (finding 008). Tom Lynch (CIO) outlined mitigating controls. The committee requested a follow-up at the next meeting.
• Item 26-1592: Annual Comprehensive Financial Report (ACFR) for FY25 – Presented by Dan Sethness (RSM). Highlights included a reduction in the overall deficit by nearly $2.2 billion, driven by lower pension/OPEB liabilities and increased revenues. The county continues to balance its debt. No questions; motion passed.
• Item 26-1595: Single Audit of Federal Awards – Presented by Brent Bacas and Marsha Lopez (Washington Pittman and McKeever). Four findings were discussed: subrecipient monitoring for housing quality standards (finding 001), coronavirus fund risk assessments (002), program income for HIV emergency relief (003), and reporting for Homeland Security grants (004). Carl Brailly (Deputy Director of Housing) provided corrective measures for finding 001. The committee noted that prior year findings did not repeat. Motion passed.
• Item 26-1596: CCH FY25 Financial Report – Presented by Dan Sethness (RSM). Operating income was $194 million, with $634 million net patient revenue, $657 million directed payments, and $3.6 billion county care capitation revenue. The county transferred $233 million to CCH. No questions; motion passed.
• Item 26-1597: CCH Report to Audit Committee – Presented by Dan Sethness (RSM). Summarized professional standards communications. No questions; motion passed.
• Item 26-1663: Treasurer’s Office FY25 Audit – Presented by Dan Sethness (RSM). Custodial fund assets and liabilities increased by $10.5 billion due to property tax billing delays. Findings were previously covered. No questions; motion passed.
• Item 26-1598: Actuarial Study of Workers’ Compensation and Liability Self-Insurance – Presented by Alyssa Surovachka (AON) and Deanna Zales (Risk Management). Estimated outstanding losses as of November 30, 2025, were $1.055 billion on an undiscounted basis, a decrease of $16 million from the prior year. Law enforcement liability was the largest category ($450 million). The expected undiscounted losses for FY25-26 were $181 million. No questions; motion passed.

Key Outcomes

• Approval of Minutes (Item 26-1952) – Minutes from May 13, 2026, approved by voice vote.
• Receipt and Filing of Audit Reports – All eight items (26-1593, 26-1592, 26-1595, 26-1596, 26-1597, 26-1663, 26-1598, and the minutes) were received and filed by unanimous voice votes.
• Corrective Action Plans – The committee directed county staff to implement corrective actions for audit findings, with a follow-up on IT segregation of duties (finding 008) expected at the next audit committee meeting in September 2026.
• Meeting Adjourned – Motion by Commissioner McCaskill, seconded by Commissioner Scott, approved by voice vote.