REPORT DIGEST

REPORT DIGEST

UNIVERSITY OF ILLINOIS

FINANCIAL AUDIT

For the Year Ended:

June 30, 2006

Release Date:

January 24, 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 the Full Report are available on

the worldwide web at

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

AUDITORS’ OPINION

The financial audit report contains four sets of financial statements in the Annual Financial Report; and the revenue bond financial statements of the Auxiliary Facilities System, the Willard Airport Facility, and the Health Services Facilities System.

Our auditors state the June 30, 2006 financial statements are fairly presented in all material respects.

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:TLK:pp

SPECIAL ASSISTANT AUDITORS

Clifton Gunderson LLP were our special assistant auditors.

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

UNIVERSITY OF ILLINOIS

FINANCIAL AUDIT

For The Year Ended June 30, 2006

FINANCIAL OPERATIONS	FY 2006	FY 2005
OPERATING REVENUES
Tuition and fees, net..........................................................	$554,856,000	$507,137,000
Federal grants, contracts and appropriations................	617,651,000	625,222,000
State and private gifts, grants and contracts.................	168,103,000	152,325,000
Hospital and medical activities.........................................	549,742,000	518,439,000
Auxiliary enterprises, net...................................................	282,321,000	264,660,000
Other.....................................................................................	317,635,000	297,373,000
Total Operating Revenues........................................	$2,490,308,000	$2,365,156,000
OPERATING EXPENSES
Instruction...........................................................................	$666,200,000	$677,813,000
Research...............................................................................	556,874,000	557,058,000
Public service......................................................................	300,990,000	277,626,000
Academic support..............................................................	218,043,000	206,894,000
Hospital and medical activities.........................................	406,466,000	394,122,000
Auxiliary enterprises..........................................................	229,935,000	207,825,000
On behalf payments for fringe benefits...........................	327,927,000	347,232,000
Operation and maintenance of plant................................	229,038,000	199,183,000
Institutional support..........................................................	150,572,000	163,770,000
Depreciation........................................................................	185,105,000	175,978,000
Scholarships and fellowships...........................................	185,155,000	175,166,000
Other.....................................................................................	92,295,000	88,831,000
Total Operating Expenses.........................................	$3,548,600,000	$3,471,498,000
Operating Income (Loss)...........................................................	$(1,058,292,000)	$(1,106,342,000)
NONOPERATING REVENUES (EXPENSES)
State appropriations...........................................................	$655,521,000	$653,913,000
Capital appropriations, gifts and grants..........................	65,600,000	92,439,000
Private gifts and endowments..........................................	116,319,000	122,102,000
On behalf payments for fringe benefits...........................	266,706,000	286,597,000
Other, net.............................................................................	15,047,000	(6,164,000)
INCREASE IN NET ASSETS...................................................	$60,901,000	$42,543,000
Net assets, beginning of year, as restated..............................	$2,309,084,000	$2,266,541,000
Net assets, end of year..............................................................	$2,369,985,000	$2,309,084,000
SELECTED ACCOUNT BALANCES	June 30, 2006	June 30, 2005
Cash and Investments...............................................................	$1,095,435,000	$999,310,000
Capital Assets, net.....................................................................	$2,969,989,000	$2,867,380,000
Total Assets................................................................................	$4,537,087,000	$4,316,181,000
Accrued Compensated Absences...........................................	$207,307,000	$206,075,000
Revenue Bonds Payable............................................................	$834,712,000	$780,272,000
Total Liabilities............................................................................	$2,167,102,000	$2,007,097,000
Total Net Assets.........................................................................	$2,369,985,000	$2,309,084,000
Total Liabilities and Net Assets...............................................	$4,537,087,000	$4,316,181,000
UNIVERSITY PRESIDENT
During Audit Period: Dr. B. Joseph White Currently: Dr. B. Joseph White

FINANCIAL OPERATIONS