REPORT DIGEST
BOARD OF INVESTMENT FINANCIAL AUDIT For the Year Ended: Release Date: January 15, 2009
State of Office of the
Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL
To obtain a copy of the
Report contact: Office of the Auditor
General
(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.state.il.us/auditor |
INTRODUCTION
This digest covers our audit of the
Illinois State Board of Investment financial statements for the year ended
June 30, 2008. A report on the results
of our compliance attestation examination for the year ending Pursuant to the Illinois Pension Code,
the Illinois State Board of Investment (Board) manages the investments of the
State Employees’ Retirement System, General Assembly Retirement System and
the Judges’ Retirement System. MEMBER SYSTEMS WITHDRAWALS
During
fiscal year 2008 the member systems’ withdrawals from the Board decreased
$142.5 million from $642 million during fiscal year 2007 to $499.5 million
during fiscal year 2008. Total member
systems’ net contributions (withdrawals) since inception of the Illinois State Board of Investment total
approximately ($1.4 billion). SUBSEQUENT
EVENT Subsequent to the Board’s June 30, 2008
fiscal year end the investment portfolio experienced a significant decline
due to unprecedented unfavorable market conditions. Based on unaudited information provided by
the Board, the investment portfolio declined approximately $2.1 billion from
the June 30, 2008 balances based on the readily determinable market values
provided by Board. AUDITORS' OPINION
Our auditors state the
____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:RPU:pp SPECIAL ASSISTANT AUDITORS
Our special assistant auditors for this
audit were McGladrey & Pullen LLP. {Financial data is summarized on the reverse page} |
FINANCIAL
AUDIT
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OPERATING
STATEMENT ANALYSIS |
FY 2008 |
FY 2007 |
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Revenues: Investment Income–Increase/(Decrease) in Fair Value Investment Income - Interest
& Dividends................ Investment Income - Securities
Lending............... Total Investment Income/(Loss)....................... Expenses:
Salaries and Benefits...........................................
Operating Expenses............................................
External Support (consulting and investment fees). Total Expenses............................................... Revenue Over / (Under) Expenses.............. Member
Systems’ Withdrawals........................................... Net
Assets Beginning of the Year........................................ Net Assets End of the Year................................................. |
$ (1,029,242,365) 316,825,531 16,624,470 $ (695,792,364) $1,422,254 39,860,694 $ 41,850,636 $ (737,643,000) (499,500,000) 12,552,196,161 $11,315,053,161 |
$
1,594,268,87 319,512,311 4,493,459 $ 1,918,274,641 $ 1,277,024 448,056 38,838,254 $ 40,563,334 $ 1,877,711,307 (642,000,000) 11,316,484,854 $12,552,196,161 |
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EXTERNAL SUPPORT EXPENSES |
FY 2008 |
FY 2007 |
|
Custody.................................................................................. Consulting and Professional..................................................... Investment Advisors / Managers.............................................. Investment Services and Research........................................... Total External Support Expenses..................................... |
$
212,604 38,008,970 167,938 $39,860,694 |
$ 239,800 1,133,726 37,297,370 167,358 $38,838,254 |
MEMBER SYSTEMS’ WITHDRAWALS |
FY 2008 |
FY 2007 |
|
State
Employees’ Retirement System................................... Judges’ Retirement System................................................ General
Assembly Retirement System................................ Total Member Systems’
Withdrawals......................... |
$462,000,000 30,400,000 7,100,000 $499,500,000 |
$612,000,000 22,000,000
8,000,000 $642,000,000 |
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INVESTMENT PORTFOLIO ANALYSIS - Fair Value |
|
|
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Government
and Agency Obligations.......................................... Foreign Obligations................................................................. Corporate
Obligations................................................................ Common
Stock & Equity Funds................................................. Preferred
Stock (Domestic & Foreign)....................................... Foreign
Equity Securities........................................................... Hedge
Funds............................................................................ Real
Estate Investments............................................................ Private
Equity........................................................................... Money Market Instruments...................................................... Infrastructure
Funds.................................................................. Bank
Loans.............................................................................. Forward Foreign Exchange Contracts....................................... Total
Investment Portfolio................................................. |
$ 852,045,701 113,005,430 1,058,164,332 4,241,685,933 5,094,532
1,984,314,463 598,985,402 1,332,081,349 524,628,589 307,481,504 209,975,518 202,137,983 (72,622) $11,429,528,114 |
$ 1,184,275,884 72,189,687 1,228,970,012 6,059,409,027 1,865,020 1,365,647,941 496,404,578 1,189,614,911 563,366,021 535,699,912 108,436,449 0 (108,696) $12,805,770,746 |
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SELECTED ACCOUNT BALANCES |
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Cash...................................................................................... Total Accounts Receivable...................................................... Prepaid Expenses.................................................................. Capital Assets........................................................................ Operating Expenses Payable................................................... Investment Purchases
Payable................................................ |
$ 43,667,005 $187,106,001 $ 16,242 $ 52,797 $ 7,101,649 $338,215,349 |
$ 42,916,419 $548,269,714 $ 14,740 $ 49,283 $ 7,572,502
$837,252,239 |
BOARD CHIEF EXECUTIVES
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During Engagement Period:
Executive Director: William R. Atwood. Chairman: Michael Goetz. Currently: Executive Director: William R. Atwood. Chairman: Michael Goetz. |
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