REPORT DIGEST

ILLINOIS VENTURES, LLC

FINANCIAL AUDIT

For the Year Ended:

June 30, 2004

and

COMPLIANCE EXAMINATION

For the Two Years Ended:

June 30, 2004

Summary of Findings:

Total this audit                          1

Total last audit                          0

Repeated from last audit           0

Release Date:

March 24, 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

      Illinois Ventures, LLC is a for profit limited liability company created by the Board of Trustees of the University of Illinois.  The Company exists to facilitate the development of new companies commercializing technology originated or developed by faculty, staff and/or students of the University.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

      Our report contains only one compliance finding regarding bank balances in excess of the FDIC insurance limit not being protected by collateral pledged in the name of the Company.  The Company concurred with our finding and stated it has taken steps to bring the Company into compliance.

      We will review progress towards implementation of our recommendation during our next compliance examination.

AUDITORS’ OPINION

      Our auditors stated the Company’s June 30, 2004 financial statements are fairly presented in all material respects.

____________________________________

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

      Our special assistant auditors were Clifton Gunderson LLP.

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

FINANCIAL OPERATIONS

FY 2004

FY 2003

OPERATING REVENUES........................................

OPERATING EXPENSES

      Salaries                                                                     

      Professional Fees.......................................................

      Insurance...................................................................

      Travel  ....................................................................

      Office Rent................................................................

      Other........................................................................

            Total...................................................................

NONOPERATING REVENUES................................

INCREASE IN NET ASSETS.......................................

NET ASSETS - Beginning of Year..................................

Net Change in Reserve for Minority Interest in Subsidiary.

NET ASSETS - End of Year...........................................

$2,173,091

$845,454

148,546

34,557

75,410

28,925

156,684

$1,289,576

$51,016

$934,531

$264,470

$1,007

$1,200,008

$1,132,843

$594,527

162,722

30,018

56,480

10,951

82,268

$936,966

$5,590

$201,467

$63,003

$0

$264,470

SELECTED ACCOUNT BALANCES

AT JUNE 30,

2004

AT JUNE 30,

2003

Cash..............................................................................

Accounts Receivable......................................................

Prepaids and Other Assets..............................................

Capital Assets................................................................

Investments....................................................................

Accounts Payable...........................................................

$156,731

$48,162

$27,511

$60,608

$1,294,086

$48,971

$(20,173)

$39,898

$15,740

$47,579

$273,736

$11,333

DIRECTOR

During Audit Period:  Mr. John Banta

Currently:  Mr. John Banta