REPORT DIGEST

STATE UNIVERSITIES RETIREMENT SYSTEM

FINANCIAL AUDIT
For the Year Ended: June 30, 2013


Release Date:   January 8, 2014

Summary of Findings:
Total this audit: 0
Total last audit:  0
Repeated from last audit: 0

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

INTRODUCTION

This digest covers our financial audit of the
System for the year ended June 30, 2013.  A
compliance examination report covering the year
ending June 30, 2013 will be issued separately.

FUNDED RATIO

The actuarial accrued liability was valued at
$34.4 billion at June 30, 2013.  The actuarial
value of assets (at smoothed value) totaled
approximately $14.3 billion at June 30, 2013.
The method for determining the actuarial value
of assets was changed beginning with the June
30, 2009 valuation.  The method was changed from
the market value to a smoothed value where the
actuarial gains or losses for each year are
recognized in equal amounts over the ensuing
five-year period.  The difference between the
actuarial accrued liability and the actuarial
value of assets of $20.1 billion reflects the
unfunded liability of the System at June 30,
2013.  The System had a funded ratio (at
smoothed value) of 41.5% at June 30, 2013.  When
using the market value, the System would have a
funded ratio of 43.7%.

AUDITORS’ OPINION

Our auditors state the June 30, 2013 financial
statements of the State Universities Retirement
System are presented fairly in all material
respects.

WILLIAM G. HOLLAND, Auditor General

WGH:TLK

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit
were McGladrey LLP.