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Board backs recommendation to pursue shared cyber‑security vendor audit; consultant outlines $10,000 Fox Point review
Summary
Board members discussed a Department of Labor best‑practice memo and a vendor audit service from Fox Point; consultants said the one‑time reduced fee would be $10,000 for small plans and the board voted to recommend coordinating vendor lists across pension plans to reduce duplicate audit costs.
The board reviewed a memo from President and CEO Brad Hinrich about Department of Labor best practices and a proposed cyber‑security support program. Brad Hinrich described standards and a consultant proposed a third‑party vendor review to assess participating vendors' cyber controls.
"There's a company called Fox Point and they're experts in the cyber security and the DO standards," the consultant said, explaining the audit would survey vendors and report red/yellow/green ratings. He said the fee for smaller plans is $10,000 and that participating plans would receive a vendor‑by‑vendor report.
Trustees debated whether one board could commission a single audit and share the results with related plans (police, fire, general fund) to reduce costs. One trustee moved that the pension board recommend the other pension boards examine their vendor lists and consider aligning vendors to avoid duplicate audits; the board seconded the motion and approved it by voice vote.
Consultants emphasized the audit is voluntary for public plans (the Department of Labor's standards are legally enforceable for private plans) but said following the guidance is prudent fiduciary practice to protect member data and plan assets.
The board tabled any immediate purchase of the Fox Point service pending coordination with the other pension boards and further review.
