REPORT DIGEST

OFFICE OF THE
STATE TREASURER
THE ILLINOIS FUNDS

FINANCIAL AUDIT
For the Year Ended:
June 30, 1998

Release Date:
February 11, 1999

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

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 Investment Division". The revenues and expenditures of the Division were recorded in a fund maintained by the Treasurer entitled The Illinois Funds Administrative Fund.

An agency 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, 1998, assets in this fund totaled $2,730,121,385. The custodian for this fund was First National Bank of Central Illinois in Springfield, Illinois.

AUDITORS' OPINION

Our special assistant auditors stated that The Illinois Funds' June 30, 1998 financial statements are presented fairly.

_____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:BAR:pp

SPECIAL ASSISTANT AUDITORS

Olive were our special assistant auditors on this audit.

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

OFFICE OF THE STATE TREASURER
THE ILLINOIS FUNDS
FINANCIAL AUDIT
For The Year Ended June 30, 1998

SELECTED ACCOUNT BALANCES	FY 1998	FY 1997
Cash and Cash Equivalents Repurchase Agreements Certificates of Deposit Direct U.S. Treasury Obligations: - Treasury Bills - Treasury Notes Accrued Interest Receivable Total Assets Investment Income Payable Accrued Liabilities Total Liabilities Net Assets Available to Participants	$ 216,529,963 2,050,543,778 37,242,845 33,664,388 386,164,666 5,975,745 $2,730,121,385 $ 12,503,608 225,478 12,729,086 $2,717,392,299	$ 231,037,334 1,451,169,118 38,505,552 145,770,196 254,794,746 4,791,752 $2,126,068,698 $ 9,648,768 259,006 9,907,774 $2,116,160,924
SELECTED ACTIVITY MEASURES	FY 1998	FY 1997
Administrative Fees Received (Cash Basis) Expenditures and Participant Rebates Paid (Cash Basis) Bank Custodial Fees (Modified Accrual Basis) State Management Fees (Modified Accrual Basis) Number of Employees Custodian	$1,512,800 $1,227,872 $1,123,428 $1,498,033 17 *	$1,369,216 $1,184,337 $1,938,761 $1,368,536 -24 *

- Employee number includes 8 summer interns for FY 1997.
* First of America Bank - Illinois, N.A., on July 1, 1997, First National Bank of Central Illinois
replaced First of America Bank - Illinois, N.A. as custodian

STATE TREASURER

During Audit Period: Honorable Judy Baar Topinka
Currently: Honorable Judy Baar Topinka