REPORT DIGEST

ILLINOIS STATE UNIVERSITY FOUNDATION

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 Full Report are 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, 2006.  A compliance examination covering the two years ended June 30, 2006 is being issued separately.

AUDITORS’ OPINION

      Our auditors stated the June 30, 2006 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

FY2006

FY2005

OPERATING REVENUES

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

$260,000

$260,000

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

60,836

47,090

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

320,836

307,090

OPERATING EXPENSES

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

$1,844,541

$1,396,026

     Expenditures on behalf of ISU departments and programs

3,355,438

3,385,697

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

925,716

862,439

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

6,125,695

5,644,162

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

($5,804,859)

($5,337,072)

NONOPERATING REVENUES (EXPENSES)

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

$11,169,963

$5,717,834

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

(17,509)

(39,970)

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

5,464,006

4,301,005

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

(3,636,069)

(7,296,582)

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

776,942

752,524

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

$13,757,333

$3,434,811

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

$7,952,474

($1,902,261)

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

$2,112,453

$3,900,171

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

$10,064,927

$1,997,910

NET ASSETS

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

$68,024,475

$66,026,565

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

$78,089,402

$68,024,475

OTHER SIGNIFICANT ACCOUNT BALANCES

AT JUNE 30, 2006

AT JUNE 30, 2005

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

$72,849,633

$61,264,675

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

$79,377,672

$69,224,808

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

$551,946

$697,040

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

$1,288,270

$1,200,333

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

$47,640,533

$41,025,261

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

$27,419,289

$24,311,808

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

$78,089,402

$68,024,475

MANAGING DIRECTOR

During Audit Period: Dr. Diane Ashby

Currently:  Dr. Diane Ashby