REPORT DIGEST

JUDGES’ RETIREMENT SYSTEM OF ILLINOIS

 

COMPLIANCE AUDIT

For the Year Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                       0

Total prior audit                     0

Repeated from last audit        0

 

 

Release Date:

March 11, 2004

 

 

 

 

 

 

 

 

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 TDD (217) 524-4646

 

 

This Report Digest is also available on

the worldwide web at

http://www.state.il.us/auditor

INTRODUCTION

This digest covers our compliance audit of the Judges’ Retirement System (System) for the year ended June 30, 2003. A financial audit covering the year ending June 30, 2003 is being issued separately.

It should be noted that, pursuant to the Illinois Pension Code, investments of the System are managed by the Illinois State Board of Investment.

There were no material findings of noncompliance disclosed during our audit tests. We commend the System for maintaining effective internal controls.

SUBSEQUENT EVENT

On April 7, 2003, Governor Rod Blagojevich signed House Bill 2660 into law as Public Act 93-0002. This new law authorized the State of Illinois to issue $10 billion of General Obligation Bonds for the purpose of making contributions to designated retirement systems, which included the Judges Retirement System.

On July 1, 2003, the System received an allocation of $141,955,483 from the pension bond proceeds. The System deposited the allocation into its master trust account with the Illinois State Board of Investments, on July 2, 2003.

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:RPU:pp

SPECIAL ASSISTANT AUDITORS

McGladrey & Pullen LLP were our special assistant auditors for this audit.

{Financial Information and Activity Measures are summarized on the reverse page.}

 

                              JUDGES’ RETIREMENT SYSTEM OF ILLINOIS

                INFORMATION FROM FINANCIAL AND COMPLIANCE AUDITS

                                      TWO YEARS ENDED JUNE 30, 2003

 

OPERATING STATEMENT ANALYSIS

FY 2003

FY 2002

REVENUES:    Contributions – Participants

                          Contributions – appropriations & other #9;

                                 Total Contributions

                          Net investment income

                          Net (depreciation) in fair value of investments

                          Interest earned on cash balances

                                Total Revenue

EXPENSES: Benefits - Retirement annuities

                          Benefits - Survivors' annuities

                                Total Benefits

                          Refunds

                          Administration

                                Total Expenses

                          Deficiency of revenues over expenses

$ 12,904,997

31,440,103

$ 44,345,100

7,045,748

(7,429,253)

157,388

$ 44,118,983

$ 44,507,057

12,207,505

$ 56,714,562

582,469

427,686

$ 57,724,717

$(13,605,734)

$ 12,487,303

27,532,000

$ 40,019,303

8,432,347

(33,145,381)

219,154

$ 15,525,423

$ 41,145,096

11,677,218

$ 52,822,314

353,163

424,233

$ 53,599,710

$(38,074,287)

ANALYSIS OF PLAN INVESTMENTS

FY 2003

FY 2002

Balance at beginning of year, at fair value

Net cash (withdrawn) from investments

                          Net investments (1)

Investment income – interest, dividends and other

Investment expenses

                          Net Investment income (2)

Net realized gain (loss) on sale of investments

Net unrealized (loss) on investments

                          Net appreciation in fair value of investments (3)

                          Total net investment income (loss) (4), (2) + (3)

                          Balance at end of year, at fair value (1) + (4)

$332,424,596

(14,500,000)

$317,924,596

7,732,632

(686,884)

$ 7,045,748

(25,283,941)

17,854,688

$ (7,429,253)

$ (383,505)

$317,541,091

$ 372,637,630

(15,500,000)

$ 357,137,630

9,226,184

(793,837)

$ 8,432,347

(8,981,058)

(24,164,323)

$ (33,145,381)

$ (24,713,034)

$ 332,424,596

SELECTED ACCOUNT BALANCES

JUNE 30, 2003

JUNE 30, 2002

Cash

Receivables

Investments, at fair value

Property and equipment, net of accumulated depreciation

Liabilities

Net Assets Held in Trust for Benefits

Actuarial Accrued Liability

Unfunded Liability

$ 7,324,152

5,362,571

317,541,091

2,306

(176,560)

$330,053,560

$(1,076,231,965)

$ (746,178,405)

$ 6,593,476

4,718,760

332,424,596

3,131

(80,669)

$ 342,659,294

$(1,020,846,773)

$ (677,187,479)

SUPPLEMENTARY INFORMATION

FY 2003

FY 2002

Number of System employees

Retirees and beneficiaries currently receiving benefits (unaudited)

Total members (unaudited)

Total active members (unaudited)

Total return on investments (unaudited)

7

864

962

920

.3%

8

838

944

909

(6.9)%

EXECUTIVE SECRETARY

During Audit Period: Michael L. Mory until December 31, 2002; Robert V. Knox effective January 1, 2003

Currently: Robert V. Knox