REPORT DIGEST

OFFICE OF THE

STATE TREASURER

THE ILLINOIS FUNDS

FINANCIAL AUDIT

For the Year Ended:

June 30, 2004

Release Date:

February 10, 2005

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 is also available on

the worldwide web at

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

INTRODUCTION

The Illinois Funds was established under the name Illinois Public Treasurers' Investment Pool ("IPTIP") in 1976 to supplement and enhance the investment opportunities available to custodians of public agency funds throughout the State of Illinois. The management, custodianship and operation of The Illinois Funds are under the supervision of the Office of the Treasurer - State of Illinois.

To administer The Illinois Funds, the Treasurer has established a division entitled "The Illinois Funds Administrative Office". The revenues and expenditures of the Division were recorded in a fund maintained by the Treasurer entitled The Illinois Funds Administrative Trust Fund.

An investment trust fund was used to account for assets held by The Illinois Funds in a trustee capacity for public treasurers throughout the State of Illinois. At June 30, 2004, assets in this fund totaled $5,187,440,821. The custodian for this fund was U.S. Bank of Illinois.

AUDITORS' OPINION

Our special assistant auditors stated that The Illinois Funds’ financial statements, as of and for the year ended June 30, 2004, are fairly stated in all material respects.

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WILLIAM G. HOLLAND, Auditor General

WGH:JSC:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors on this audit were Kerber, Eck & Braeckel LLP.

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

OFFICE OF THE STATE TREASURER

THE ILLINOIS FUNDS

FINANCIAL AUDIT

For Year Ending June 30, 2004

STATEMENTS OF FIDUCIARY NET ASSETS				FY 2004		FY 2003
Money Market Mutual Funds........................................................ Repurchase Agreements............................................................... Certificates of Deposit.................................................................. Commercial Paper........................................................................ Direct U.S. Treasury Obligations: - Treasury Bills........................................................ - Treasury Notes................................................... - Treasury Bonds......................................................... U.S. Agency Obligations: - Federal Home Loan Banks Interest Bearing Notes - Federal Home Loan Mortgage Corporation Discount Notes - Federal National Mortgage Association Notes - Federal National Mortgage Associate Discount Notes - Federal Farm Credit Interest Bearing Notes Accrued Interest Receivable......................................................... Total Assets..................................................................... Bank Custodial Fees Payable........................................................ State Management Fees Payable................................................... Total Liabilities................................................................ Net Assets Available to Participants..............................................				$ 413,495,978 3,875,139,056 219,438,416 - 114,843,224 436,830,581 10,376,151 57,499,858 17,846,523 10,000,000 27,906,343 1,000,000 3,064,691 $5,187,440,821 $ 158,252 252,608 $ 410,860 $5,187,029,961		$ 368,333,402 4,043,141,333 4,034,465 199,430,188 174,524,351 101,601,275 - - 14,930,796 - 27,669,979 - 563,133 $4,934,228,922 $ 149,350 228,809 $ 378,159 $4,933,850,763
	SELECTED ACTIVITY MEASURES		FY 2004		FY 2003
Administrative Fees Received...................................................... Administrative Expenditures......................................................... Total Number of Participants........................................................ Number of State of Illinois Participants ........................................ Balance of State of Illinois Investments......................................... Number of Employees.................................................................		$2,802,431 $2,812,000 1,981 29 $1,633,588,523 22			$2,694,389 $3,259,000 1,932 29 $1,493,216,802 34
	STATE TREASURER
	During Audit Period: Honorable Judy Baar Topinka Currently: Honorable Judy Baar Topinka

Number of Employees.................................................................