OIG FILE #20-1024
AUDIT OF THE MUNICIPAL DEPOSITORY DESIGNATION PROCESS
TABLE OF CONTENTS
EXECUTIVE SUMMARY|910|
CONCLUSION|910|FINDINGS|910|RECOMMENDATIONS|910|DOF RESPONSE|910|BACKGROUND|910|
RESPONSIBLE BANKING ORDINANCES|910|CHICAGO'S MUNICIPAL DEPOSITORY DESIGNATION PROCESS|910|DOF'S REQUEST FOR PROPOSAL REQUIREMENTS 9
CHICAGO'S MUNICIPAL DEPOSITORIES 11
FINDINGS AND RECOMMENDATIONS 12
FINDING 1: ALTHOUGH DOF ENSURES THAT BANKS' MUNICIPAL DEPOSITORY DESIGNATION
RFP SUBMISSIONS ARE COMPLETE, IT DOES NOT EVALUATE THEIR COMMUNITY
INVESTMENT AND EQUITABLE LENDING EFFORTS 12
FINDING 2: DOF, CITY COUNCIL, AND THE TREASURER'S OFFICE HAVE NOT COORDINATED
THEIR ROLES IN THE MUNICIPAL DEPOSITORY PROCESS TO ACHIEVE THE CITY'S
OBJECTIVE OF ENCOURAGING EQUITABLE BANKING PRACTICES THROUGHOUT
CHICAGO 14
OBJECTIVES, SCOPE, AND METHODOLOGY 16
OBJECTIVES 16
SCOPE 16
METHODOLOGY 16
STANDARDS 17
AUTHORITY AND ROLE : 17
APPENDIX: LENDING PLEDGES FOR MUNICIPAL DEPOSITORIES 18
ACRONYMS
CRA Community Reinvestment Act
DOF Department of Finance
MCC Municipal Code of Chicago
MSA Metropolitan Statistical Area
OIG Office of Inspector General
RBO Responsible Banking Ordinanc
RFP Request for Proposal
PAGE 2
OIG FILE #20-1024
AUDIT OF THE MUNICIPAL DEPOSITORY DESIGNATION PROCESS
City of Chicago Office of Inspector Genera!
The Department of Finance (DOF), the Treasurer's Office, and City Council should coordinate theiraefforts to achieve the common goal of ensuring that banks selected as municipal depositories provide f $ banking to City residents in an. inclusive and equitable manner.
BECAUSE CITY COUNCIL HAS NOT REGULARLY VOTEO ON THE MUNICIPAL DEPOSITORY DESIGNATION ORDINANCE:
One of the City's previously active banks had not v¦: responded to the annual request for proposals -'V • since 2012, but retained its designation as a :«*"¦¦
municipal depository until March 2021 ;^ . Three banks that had responded to the request for
proposals on multiple occ...
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