REPORT DIGEST

STATE EMPLOYEES’ RETIREMENT SYSTEM OF ILLINOIS

COMPLIANCE AUDIT

For the Year Ended:

June 30, 2002

Summary of Findings:

Total this audit 0
Total prior audit 0
Repeated from last audit 0

Release Date:
March 18, 2003

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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
Attn: Records Manager
Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703

(217)782-6046 or TDD (217) 524-4646

This Report Digest is also available on
the worldwide web at
http://www.state.il.us/auditor

 

 

 

INTRODUCTION

This digest covers our compliance audit of the System for the year ended June 30, 2002. A financial audit covering the year ending June 30, 2002 is being issued separately.

It should be noted that, pursuant to the Illinois Pension Code, investments of the System are managed by the Illinois State Board of Investment.

There were no material findings of noncompliance disclosed during our audit tests. We commend the System for maintaining effective internal controls.

 

 

 

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:RPU:pp

SPECIAL ASSISTANT AUDITORS

McGladrey & Pullen, LLP were our special assistant auditors for this audit

{Financial Information and Activity Measurers summarized on the reverse page.}

STATE EMPLOYEES' RETIREMENT SYSTEM OF ILLINOIS
INFORMATION FROM FINANCIAL AND COMPLIANCE AUDITS
TWO YEARS ENDED JUNE 30, 2002
OPERATING STATEMENT ANALYSIS

FY 2002

FY 2001
REVENUES: Contributions - Participants
Contributions - State agencies & appropriations
Total Contributions
Net investment income
Net (depreciation) in fair value of investments
Interest earned on cash balances
Total Revenue (loss)
EXPENSES: Benefits - Retirement annuities
Benefits - Survivors' annuities
Benefits - Disability benefits
Benefits - Lump-sum death benefits
Total Benefits
Refunds
Administration
Total Expenses
Deficiency of revenues over expenses

$ 196,915,424
386,116,583
$ 583,032,007
187,345,527
(736,577,374)
3,120,449
$ 36,920,609
$ 522,544,406
47,794,085
33,161,126
14,418,870
$ 617,918,487
14,147,218
7,623,565
$ 639,689,270
$(602,768,661)

$ 173,778,661
366,028,937
$ 539,807,598
215,621,397
(834,294,549)
6,370,500
$ (72,495,054)
$ 446,598,967
44,958,695
32,604,190
13,429,872
$ 537,591,724
17,012,242
7,140,280
$ 561,744,246
$(634,239,300)
ANALYSIS OF PLAN INVESTMENTS

FY 2002

FY 2001
Balance at beginning of year, at fair value
Net cash (withdrawn) from investments
Net investments (1)
Investment income – interest, dividends and other
Investment expenses
Net Investment income (2)
Net realized gain (loss) on sale of investments
Net unrealized (loss) on investments
Net (depreciation) in fair value of investments (3)
Total net investment (loss) (4), (2) + (3)
Balance at end of year, at fair value (1) + (4)

$ 8,144,981,332
(52,000,000)
$ 8,092,981,332
205,029,989
(17,684,462)
$ 187,345,527
(198,743,013)
(537,834,361)
$ (736,577,374)
$ (549,231,847)
$ 7,543,749,485

$ 8,786,654,484
(23,000,000)
$ 8,763,654,484
235,164,552
(19,543,155)
$ 215,621,397
282,297,145
(1,116,591,694)
$ (834,294,549)
$ (618,673,152)
$ 8,144,981,332
SELECTED ACCOUNT BALANCES

JUNE 30, 2002

JUNE 30, 2001
Cash
Receivables
Investments, at fair value
Property and equipment, net of accumulated depreciation
Liabilities
Net Assets Held in Trust for Benefits
Actuarial Accrued Liability
Unfunded Liability

$ 97,562,972
34,549,705
7,543,749,485
3,227,188
(5,196,659)
$ 7,673,892,691
(14,291,044,457)
$ (6,617,151,766)

$ 103,210,369
30,349,595
8,144,981,332
3,310,764
(5,190,708)
$ 8,276,661,352
(12,572,240,145)
$(4,295,578,793)
SUPPLEMENTARY INFORMATION

FY 2002

FY 2001
Number of System employees
Retirees and beneficiaries currently receiving benefits
Total members
Total active members
Total return on investments (unaudited)

83
44,557
103,846
81,680
(6.9)%

82
43,164
102,552
80,879
(7.1)%
EXECUTIVE SECRETARY
During Audit Period: Michael L. Mory
Currently: Robert V. Knox