40 ILCS 5/1A-104
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 1A - Regulation Of Public Pension Funds

Sec. 1A-104. Examinations and investigations.(a) Except as described in the following paragraph with respect to pension funds established under Article 3 or 4 of this Code, the Division shall make periodic examinations and investigations of all  pension funds established under this Code and maintained for the benefit of  employees and officers of governmental units in the State of Illinois.  However, in lieu of making an examination and investigation, the Division  may accept and rely upon a report of audit or examination of any pension fund  made by an independent certified public accountant pursuant to the provisions  of the Article of this Code governing the pension fund.  The acceptance of the  report of audit or examination does not bar the Division from making a further  audit, examination, and investigation if deemed necessary by the Division.For pension funds established under Article 3 or 4 of this Code: (i) prior to the conclusion of the transition period, the Division shall make the periodic examinations and investigations described in the preceding paragraph; and (ii) after the conclusion of the transition period, the Division may accept and rely upon a report of audit or examination of such pension fund made by an independent certified public accountant retained by the Consolidated Fund. The acceptance of the report of audit or examination does not bar the Division from making a further audit, examination, and investigation if deemed necessary by the Division.The Department may implement a flexible system of examinations  under  which it directs resources as it deems necessary or appropriate.  In  consultation with the pension fund being examined, the Division may retain  attorneys, independent actuaries, independent certified public accountants, and  other professionals and specialists as examiners, the cost of which (except in  the case of pension funds established under Article 3 or 4) shall be borne by  the pension fund that is the subject of the examination.(b) The Division or the Consolidated Fund, as appropriate, shall examine or investigate each pension fund established  under Article 3 or Article 4 of this Code. The schedule of each examination shall be such that each fund shall be examined once every 3 years.Each examination shall include the following:(1) an audit of financial transactions, investment     policies, and procedures;(2) an examination of books, records, documents,     files, and other pertinent memoranda relating to financial, statistical, and administrative operations;(3) a review of policies and procedures maintained     for the administration and operation of the pension fund;(4) a determination of whether or not full effect is     being given to the statutory provisions governing the operation of the pension fund;(5) a determination of whether or not the     administrative policies in force are in accord with the purposes of the statutory provisions and effectively protect and preserve the rights and equities of the participants;(6) a determination of whether or not proper     financial and statistical records have been established and adequate documentary evidence is recorded and maintained in support of the several types of annuity and benefit payments being made; and(7) a determination of whether or not the     calculations made by the fund for the payment of all annuities and benefits are accurate.In addition, the Division or the Consolidated  Fund, as appropriate, may conduct investigations, which shall be  identified as such and which may include one or more of the items listed in  this subsection.A copy of the report of examination or investigation as prepared by the  Division or the Consolidated Fund, as appropriate, shall be submitted to the secretary of the board of trustees of the  pension fund examined or investigated and to the chief executive officer of the municipality.  The Director, upon request, shall grant  a hearing to the officers or trustees of the pension fund and to the officers or trustees of the Consolidated  Fund, as appropriate, or their duly  appointed representatives, upon any facts contained in the report of  examination.  The hearing shall be conducted before filing the report or making  public any information contained in the report.  The Director may withhold the  report from public inspection for up to 60 days following the hearing.  (Source: P.A. 101-610, eff. 1-1-20.)