REPORT DIGEST

ILLINOIS STATE BOARD OF INVESTMENTS

Financial Audit

For the Year Ended June 30, 2010

Summary of Findings:

Total this audit: 0

Total last audit: 2

Repeated from last audit: 0

Release Date: January 27, 2011

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 www.auditor.illinois.gov

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INTRODUCTION

This digest covers our audit of the Illinois State Board of Investment financial statements for the year ended June 30, 2010. A report on the results of our compliance attestation examination for the year ended June 30, 2010 is being issued separately.

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 SYSTEM WITHDRAWALS

During fiscal year 2010 the member systems’ withdrawals from the Board increased $384.0 million from $277.0 million during fiscal year 2009 to $661.0 million during fiscal year 2010. Withdrawals are determined by the member retirement systems based on the State’s funding and the systems’ benefit payment needs. Total member systems’ net withdrawals since inception of the Illinois State Board of Investment total approximately $1.6 billion.

AUDITORS’ OPINION

Our auditors state the June 30, 2010 financial statements of the Illinois State Board of Investment are fairly presented.

WILLIAM G. HOLLAND

Auditor General

WGH:AKS

SPECIAL ASSISTANT AUDITORS

McGladrey & Pullen LLP were our Special Assistant Auditors for this engagement.

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