REPORT DIGEST

 

ILLINOIS STATE

BOARD OF

INVESTMENT

 

FINANCIAL AUDIT

For the Year Ended:

June 30, 2004

 

Release Date:

February 2, 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

 

      This digest covers our financial audit of the Illinois State Board of Investment (ISBI) for the year ended June 30, 2004.  A report on the results of our compliance attestation examination for the year ending June 30, 2004 is being issued separately.

 

     Pursuant to the Illinois Pension Code, the Illinois State Board of Investment manages the investments of the State Employees’ Retirement System, General Assembly Retirement System and the Judges’ Retirement System.

 

SUBSEQUENT EVENT

 

     On September 24, 2004 the ISBI’s Board of Directors selected State Street Bank & Trust Company to provide custodial services for ISBI, replacing The Northern Trust Company.  ISBI expects the transition to State Street Bank & Trust Company to be accomplished during the second quarter of fiscal year 2005. 

 

PENSION BOND FUNDING

 

     In fiscal year 2003, Governor Blagojevich and the General Assembly agreed to issue bonds in order to provide funding to the State pension systems.  This included the State Employees’ Retirement System, General Assembly Retirement System and the Judges’ Retirement System.  As a result of that funding, approximately $1.6 billion was transferred to ISBI’s account at the beginning of fiscal year 2004. 

   

AUDITORS' OPINION

 

      Our auditors state the June 30, 2004 financial statements of the Illinois State Board of Investment are fairly presented. 

 

 

 

 

                                   ____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:RPU:pp

 

SPECIAL ASSISTANT AUDITORS

 

      Our special assistant auditors for this audit were KPMG LLP.