REPORT DIGEST

ILLINOIS STATE UNIVERSITY FOUNDATION

FINANCIAL AUDIT

For the Year Ended:

June 30, 2005

Release Date:

 March 8, 2006

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

      This digest covers our financial audit of the Foundation for the year ended June 30, 2005. 

AUDITORS’ OPINION

      Our auditors stated the June 30, 2005 financial statements of the Foundation are fairly presented in all material respects.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:CML:pp

SPECIAL ASSISTANT AUDITORS

      Nykiel Carlin & Co. were our special assistant auditors for this audit.

FINANCIAL OPERATIONS

FY2005

FY2004

OPERATING REVENUES

Service contract with University.....................................

$260,000

$260,000

    Other Operating Revenues.............................................

47,090

68,808

         Total Operating Revenues.........................................

307,090

328,808

OPERATING EXPENSES

Student Aid, scholarships and awards............................

$1,396,026

$1,373,482

     Expenditures on behalf of ISU departments and programs

3,385,697

2,753,526

Other Operating Expenses.............................................

862,439

775,324

        Total Operating Expenses..........................................

5,644,162

4,902,332

Operating loss.........................................................

($5,337,072)

($4,573,524)

NONOPERATING REVENUES (EXPENSES)

Contributions – gifts and donations................................

$5,717,834

$8,891,957

Interest on capital related debt.......................................

(39,970)

(43,208)

Investment income (loss)...............................................

4,301,005

5,918,503

Expenditures for ISU capital projects.............................

(7,296,582)

(3,845,997)

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

752,524

757,354

Net nonoperating revenues......................................

$3,434,811

$11,678,609

     Income (loss) before additions to permanent endowments.............................................................................

($1,902,261)

$7,105,085

Additions to permanent endowments.............................

$3,900,171

$4,856,118

Increase in net assets...............................................

$1,997,910

$11,961,203

NET ASSETS

Net Assets-beginning of year ........................................

$66,026,565

$54,065,362

Net Assets-end of year.................................................

$68,024,475

$66,026,565

OTHER SIGNIFICANT ACCOUNT BALANCES

AT JUNE 30, 2004

AT JUNE 30, 2004

Cash and Investments........................................................

$61,264,675

$57,304,228

Total Assets....................................................................

$69,224,808

$68,397,163

Long-Term liabilities..........................................................

$697,040

$1,187,741

Total Liabilities...............................................................

$1,200,333

$2,370,598

Net Assets – Restricted-Nonexpendable............................

$41,025,261

$34,468,908

Net Assets – Restricted-Expendable..................................

$24,311,808

$30,108,617

Total Net Assets.............................................................

$68,024,475

$66,026,565

MANAGING DIRECTOR

During Audit Period: Dr. Susan Kern (July 1, 2004 to June 30, 2005)

Currently:  Dr. Diane Ashby