Meeting of the Audit & Risk Committee

Meeting: March 5, 2026 | Posted: June 9, 2026 | SURS Board of Trustees Meeting Minutes

The meeting of the Legal & Legislative Committee of the Board of Trustees of the State Universities Retirement System (SURS) convened on Thursday, March 5, 2026, at 3:15 p.m. 

This meeting was held in person at State Universities Retirement System in Champaign, IL.

The following trustees were present: Dr. Andry Bodnaruk (remote); Dr. Fred Giertz, chair; Mr. Scott Hendrie; Mr. Pranav Kothari; Mr. John Lyons; Mr. Herbert Pitman; Dr. Steven Rock; Mr. Collin Van Meter; and Mr. Antonio Vasquez.

Others present: Ms. Suzanne Mayer, Executive Director; Mr. Michael Schlachter, Chief Investment Officer (CIO); Ms. Bianca Green, General Counsel; Ms. Tara Myers, Chief Financial Officer; Ms. Jackie Hohn, Chief Internal Auditor; Ms. Nichole Hemming, Chief Human Resources Officer; Mr. Jefferey Saiger, Chief Strategy and Technology Officer; Mr. Mark Rowe, Chief Benefits Officer; Ms. Kristen Houch, Director of Legislative and Stakeholder Relations; Ms. Kelly Carson, Ms. Chelsea McCarty, and Ms. Annette Ackerman, Executive Assistants; and Mr. Michael Calabrese of Foley & Lardner LLP.

Audit & Risk Committee roll call attendance was taken: Trustee Giertz, present; Trustee Hendrie, present; Trustee Pitman, present; and Trustee Rock, present.

Motion to Allow Trustees to Participate Via Electronic Means Pursuant to the Illinois Open Meetings Act

Trustee Rock made the following motion:

• That Trustee Bodnaruk be allowed to participate via video or audio conference as allowed by 5 ILCS 120-7 due to the fact they are prevented from physically attending this meeting because (1) personal illness or disability, (2) employment purpose or the business of SURS, (3) a family or other emergency, or (4) unexpected childcare obligations.

Trustee Pitman seconded the motion, which passed via the following roll call vote:

Trustee Giertz – aye
Trustee Hendrie – aye
Trustee Pitman – aye
Trustee Rock – aye

Roll call for remote trustee: Trustee Bodnaruk, absent.

Approval of Minutes

Trustee Giertz presented the minutes from the Audit & Risk Committee meeting of December 4, 2025.

Trustee Rock made the following motion:

• That the minutes from December 4, 2025, Audit & Risk Committee meeting be approved as presented.

Trustee Hendrie seconded the motion, which passed via all trustees present voting in favor of the motion.

Approval of Closed Minutes

Trustee Giertz presented the closed minutes from the Audit & Risk Committee meeting of December 4, 2025.

Trustee Rock made the following motion:

• That the closed minutes from December 4, 2025, Audit & Risk Committee meeting be approved and remain closed.

Trustee Hendrie seconded the motion, which passed via all trustees present voting in favor of the motion.

Chairperson’s Report

Trustee Giertz did not have a formal chairperson’s report.

Chief Internal Auditor Report

Ms. Jackie Hohn provided the Chief Internal Auditor report. She briefly discussed a new hire who took over for a previous employee in the Audit department at SURS and she explained the various roles and responsibilities of that position.

External Audits

Fiscal Year 2025 External Auditor’s Report and Financial Audit

Ms. Jackie Hohn discussed details of the fiscal year 2025 External Auditor’s Report and the Financial report with the Board. She explained the purpose of these reports which is to describe the scope of the testing of internal control and compliance and include the results of the testing. This audit report does not include a specific opinion on the effectiveness of the entity’s internal control or compliance. The external auditors expressed an unmodified opinion on the System’s basic financial statements.

Required Communications to the Board

Ms. Jackie Hohn presented the required letter from the external auditors relating to the audit of the State Universities Retirement System as of and for the year ending June 30, 2025. This letter expressed that the financial statements were presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).

Internal Audits

Investments

Ms. Jackie Hohn reviewed the Investment Compliance Audit with the board of trustees. The objective of this audit was to determine that the investment policies and procedures adequately conform to the laws as prescribed in the Illinois Pension Code and the rules of the system. She discussed some concerns the Internal Audit Department has with certain activities. However, no compliance or operational issues were identified during the internal audit and the Investment Department’s procedures were found to be in compliance with state statues and internal investment policies.

Approval of Changes to FY26 Audit Plan

Trustee Hendrie made the following motion:

• That the revised Internal Audit Plan for Fiscal Year 2026 and Fiscal Year 2027 be approved as presented.

Trustee Rock seconded the motion, which passed via all trustees present voting in favor of the motion.

Closed Session

Trustee Rock moved that the Audit & Risk Committee go into closed session at 5:25 p.m. pursuant to §2(c)(8) & §2(c)(29) of the Illinois Open Meetings Act for the consideration of security procedures. Trustee Hendrie seconded, and the motion passed via the following roll call vote:

Trustee Bodnaruk – absent
Trustee Giertz – aye
Trustee Hendrie – aye
Trustee Pitman – aye
Trustee Rock – aye

Return to Open Session

Open session resumed at 5:41 p.m.

Trustee Hendrie made the following motion:

• That the pursuant to section 40 ILCS/1-135, the Audit & Risk Committee direct SURS general counsel to report the suspected fraud matter discussed in closed session to the appropriate state’s attorney and to relevant law enforcement agencies for further investigation.

Trustee Rock seconded the motion, which passed via the following roll call vote:

Trustee Bodnaruk – absent
Trustee Giertz – aye
Trustee Hendrie – aye
Trustee Pitman – aye
Trustee Rock – aye

Informational Items Not Requiring Committee Action

a) Quality Assurance and Improvement Program CY 2025

Public Comment

There were no public comments presented to the Audit & Risk Committee.

Adjourn

There was no further business brought before the committee and Trustee Rock moved to adjourn the meeting. The motion was seconded by Trustee Hendrie, and it passed via the following roll call vote:

Trustee Bodnaruk – absent
Trustee Giertz – aye
Trustee Hendrie – aye
Trustee Pitman – aye
Trustee Rock – aye

Ms. Suzanne M. Mayer
Executive Director and Secretary, Board of Trustees