REPORT DIGEST

ILLINOIS STATE UNIVERSITY

FINANCIAL AUDIT

For the Year Ended:

June 30, 2006

Release Date:

March 20, 2007

State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

To obtain a copy of the Report contact:

Office of the Auditor General

Iles Park Plaza

740 E. Ash Street

Springfield, IL 62703

(217) 782-6046 or TTY (888) 261-2887

This Report Digest and Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

INTRODUCTION

This Digest covers our financial audit of Illinois State University for the year ended June 30, 2006. Our compliance examination report for that period will be released as a separate report at a later date.

AUDITORS’ OPINION

Our auditors stated the University’s June 30, 2006 financial statements are fairly presented in all material respects.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:CML:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Nykiel, Carlin & Co.

ILLINOIS STATE UNIVERSITY

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION

For The Year Ended June 30, 2006

FINANCIAL OPERATIONS (All Funds) (in thousands)	FY 2006	FY 2005
OPERATING REVENUES Student tuition and fees (net of scholarship allowances).......... Grants and contracts........................................................................ Auxiliary facilities.............................................................................. Other operating revenues................................................................ Total Operating Revenues...................................................... OPERATING EXPENSES Instruction.......................................................................................... Research............................................................................................. Public service..................................................................................... Academic support............................................................................. Student services................................................................................ Institutional support......................................................................... Operation and maintenance of plant.............................................. Auxiliary facilities.............................................................................. Depreciation....................................................................................... Payments on behalf of the University........................................... Other operating expenditures.......................................................... Total Operating Expenses....................................................... Operating loss....................................................................................... NONOPERATING REVENUES (EXPENSES) State Appropriations....................................................................... Payments on behalf of the University............................................... Investment income............................................................................. Interest on capital assets and related debt.................................. Other nonoperating revenues (expenses).................................... Net nonoperating revenues Income (loss) before other revenues, expenses, gains and losses Transfers from the Capital Development Board.......................... Capital grants and gifts................................................................... INCREASE IN NET ASSETS.............................................................. Net assets, beginning of year.............................................................. Net assets, end of year.........................................................................	$95,396,990 27,356,858 61,863,707 21,872,978 $206,490,533 $92,774,766 13,585,119 15,367,448 11,213,328 27,754,643 24,010,967 21,603,708 46,480,617 14,782,677 41,325,783 20,630,257 $329,529,313 ($123,038,780) $80,452,000 42,162,796 3,317,748 (3,056,306) 9,135,889 $132,012,127 $8,973,347 4,707,663 1,877,947 $15,558,957 $274,483,196 $290,042,153	$88,419,957 26,254,879 57,752,634 20,544,325 $192,971,795 $89,270,282 13,111,090 12,057,416 10,002,030 25,559,122 23,115,754 20,414,726 42,740,825 13,553,122 42,893,414 20,690,745 $313,408,526 ($120,436,731) $80,452,000 43,775,566 1,932,457 (2,851,351) 9,308,907 $132,617,579 $12,180,848 11,829,104 6,861,075 $30,871,027 $243,612,169 $274,483,196
SELECTED ACCOUNT BALANCES (ALL FUNDS)	JUNE 30, 2006	JUNE 30, 2005
Cash and cash equivalents................................................................... Investments............................................................................................ Capital assets.......................................................................................... Revenue Bonds Payable...................................................................... . Accrued compensated absences........................................................	$33,749,252 102,969,362 262,486,324 88,477,899 18,125,315	$33,680,685 44,884,365 255,069,878 52,979,932 19,034,972
UNIVERSITY PRESIDENT
During audit period and currently: Dr. C. Alvin Bowman, President

ILLINOIS STATE UNIVERSITY

FINANCIAL AUDIT AND COMPLIANCE EXAMINATION

OPERATING REVENUES

OPERATING EXPENSES

INCREASE IN NET ASSETS..............................................................