REPORT DIGEST

TEACHERS’ RETIREMENT SYSTEM

COMPLIANCE AUDIT

For the Year Ended:

June 30, 2002

Summary of Findings:

Total this audit 0
Total last audit 2
Repeated from last audit 0

Release Date:
March 13, 2003

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State of Illinois

Office of the Auditor General

WILLIAM G. HOLLAND

AUDITOR GENERAL

Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703
(217) 782-6046
To obtain a copy of the Report contact:
Office of the Auditor General
Attn: Records Manager
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 System for the year ended June 30, 2002. A financial audit covering the year ending June 30, 2002 was issued separately.

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

 

 

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:RPU:pp

SPECIAL ASSISTANT AUDITORS

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

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

TEACHERS' RETIREMENT SYSTEM OF ILLINOIS
INFORMATION FROM FINANCIAL AND COMPLIANCE AUDITS
YEAR ENDED JUNE 30, 2002

OPERATING STATEMENT ANALYSIS

FY 2002

FY 2001

Revenues: Contributions - Members
Contributions - State of Illinois
Contributions - School Districts
Total Contributions
Investment Income - Appreciation in Fair Value
Investment Income - Income From Investments
Total Investment Income (Loss)
Investment Expense
Total Revenues
Expenses: Total Benefits
Other Expenses
Total Expenses
Deficiency of Revenue over Expenses

$ 681,151,770
814,739,766
92,618,146
$ 1,588,509,682
(1,461,163,444)
868,721,601
(592,441,843)
(131,545,202)
$ 864,522,637
$ 1,759,748,668
54,135,340
$ 1,813,884,008
$ (949,361,371)

$ 643,563,304
724,007,792
97,617,613
$ 1,465,188,709
(1,860,498,992)
1,061,629,965
(798,869,027)
(216,386,210)
$ 449,933,472
$ 1,566,793,231
48,906,765
$ 1,615,699,996
$(1,165,766,524)

INVESTMENT PORTFOLIO ANALYSIS - Fair Value

JUNE 30, 2002

JUNE 30, 2001

Total Government Obligations
Total Corporate Obligations
International Notes
Preferred Stock (U.S. & International Combined)
Common Stock - U.S.
Common Stock - International
Short Term Investments
Real Estate Investments
Private Equity
Foreign Currency
Total Investment Portfolio

$ 4,202,383,716
2,572,684,208
2,020,171,317
100,963,556
6,732,052,482
3,293,632,161
1,435,410,212
2,202,925,998
594,153,359
23,955,458
$23,178,332,467

$ 3,895,484,138
3,125,058,898
1,797,319,661
112,594,835
6,301,664,623
4,601,292,055
1,238,861,490
2,424,554,513
689,740,876
26,752,464
$24,213,323,553

ADMINISTRATIVE EXPENSES

FY 2002

FY 2001

Personal Services
Professional Services
Postage
Machine Repair and Rental
Other Contractual Services
Commodities
Occupancy Expense
Provision for Depreciation
Loss on Disposal of Equipment
Total Administrative Expenses

$ 9,328,695
1,434,574
390,748
473,750
657,504
396,268
174,040
631,520
294
$13,487,393

$ 9,195,997
844,265
414,273
409,675
769,075
270,924
168,563
561,158
6,665
$12,640,595

SELECTED ACCOUNT BALANCES

JUNE 30, 2002

JUNE 30, 2001

Cash
Receivables
Accrued Investment Income Receivable
Investments
Collateral from Securities Lending
Prepaid Expenses
Property and Equipment
Total Assets
Total Liabilities
Net Assets Held in Trust for Pension Benefits
Actuarial Accrued Liability
Unfunded Actuarial Accrued Liability

$ 6,039,088
159,375,923
233,414,394
22,944,918,073
1,897,635,461
410,160
3,113,533
$ 25,244,906,632
2,878,621,920
$ 22,366,284,712
43,047,674,000
$(20,681,389,288)

$ 7,889,353
198,872,583
202,756,810
24,010,566,743
2,288,995,477
968,066
3,658,427
$ 26,713,707,459
3,398,061,376
$ 23,315,646,083
39,166,697,000
$(15,851,050,917)

SUPPLEMENTARY INFORMATION

FY 2002

FY 2001

Total investment manager fees
Total time weighted return on investments
Average Number of System Employees
Number of Retirement Annuitants
Total Brokerage Commissions Paid

$65,274,190
(3.2)%
167
59,360
$13,659,145

$67,109,156
(4.2)%
171
56,549
$13,690,437

EXECUTIVE DIRECTOR(S)
During Audit Period : Kimberly Pollitt, Acting , April 1, 2001 to August 8, 2001; Jon Bauman, effective August 9, 2001
Currently: Jon Bauman