REPORT DIGEST

ILLINOIS STUDENT ASSISTANCE COMMISSION–

ILLINOIS DESIGNATED ACCOUNT PURCHASE PROGRAM

FINANCIAL AUDIT

For the Year Ended:

June 30, 2006

Release Date:

March 20, 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 also available on

the worldwide web at

http://www.auditor.illinois.gov

INTRODUCTION

      This digest covers our financial audit of the Illinois Student Assistance Commission – Illinois Designated Account Purchase Program for the year ended June 30, 2006.

AUDITORS’ OPINION

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

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JAF:pp

SPECIAL ASSISTANT AUDITORS

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

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

FINANCIAL OPERATIONS (ALL FUNDS)

2006

2005

OPERATING REVENUES

      Interest - student loans.....................................................

      Interest - investments.......................................................

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

$144,004

      19,019

  $163,023

$97,567

      10,167

  $107,734

OPERATING EXPENSES

      Interest and other student loan expenses..........................

      External loan servicing.....................................................

      Management and professional services............................

      Salaries and employee benefits........................................

      Marketing.......................................................................

      Line of credit fees...........................................................

      Occupancy.....................................................................

      Other operating expenses................................................

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

$213,806

25,202

12,589

10,629

  2,421

  938

  867

        1,255

$267,707

$118,243

21,892

10,353

11,318

  2,114

1,345

  908

        901

$167,074

OPERATING (LOSS)........................................................

$(104,684)

$(59,340)

NONOPERATING REVENUES

      Federal special allowance and student interest subsidy......

TRANSFERS IN (OUT) -

      Transfers in......................................................................

      Transfers out..........................................................................................

            Change in net assets..................................................

97,198

    0

       (566)

 $ (8,052)

59,707

    0

       (513)

 $ (146)

SELECTED BALANCE SHEET ACCOUNTS

2006

2005

Unrestricted current assets:

      Cash and investments.......................................................

Restricted current assets:

      Cash and cash equivalents................................................

      Investments (including interest accrual).................................

      Notes receivable..............................................................

      Student loans and interest receivable................................

      Federal special allowance and interest subsidy..................

Restricted noncurrent assets:

      Notes receivable..............................................................

      Student loans receivable, net............................................

Current liabilities:

      Current portion of revenue/notes and demand bonds payable.......................................................................

      Accounts payable and accrued expenses..........................

Noncurrent liabilities:

      Revenue bonds payable...................................................

Net Assets..........................................................................

$43,948

$329,453

$20,848

$45,097

$730,494

$30,990

$36,897

$3,128,269

$43,500

$22,055

$4,162,509

$139,584

$43,250

$115,893

$190,614

$57,713

$717,178

$20,316

$39,975

$2,715,991

$130,350

$16,226

$3,607,495

$147,636

AGENCY DIRECTOR

During audit Period:  Mr. Larry E. Matejka

Currently:  Mr. Andrew Davis