REPORT DIGEST

TEACHERS’ RETIREMENT SYSTEM
OF THE STATE OF ILLINOIS

FINANCIAL AUDIT

For the Year Ended:
June 30, 2002

Release Date:
January 15, 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

  

 

 

 

 

SYNOPSIS

 

  • The unfunded liability of the System was $20,682 million at June 30, 2002. The System’s funded ratio at that date was 52.0%.
  • As of October 31, 2002 the System had incurred an approximate $1,221 million (4.9%) decrease in its investment portfolio since June 30, 2002.

 

 

 

 

 

 

 

 

 

Unfunded Liability at June 30, 2002 totals $20,682 million

 

 

 

$1,221 million decrease in the investment portfolio from June 30, 2002 to October 31, 2002

 

 

 

 

 

 

 

 

INTRODUCTION

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

UNDERFUNDING OF THE SYSTEM

The actuarial accrued liability was valued at $43,048 million at June 30, 2002. The actuarial value of assets (at market) totaled approximately $22,366 million at June 30, 2002. The difference between the liability and the assets of $20,682 million reflects the unfunded liability of the System at June 30, 2002. The Teachers’ Retirement System had a funded ratio of 52.0% at June 30, 2002.

MARKET VALUE DECLINE

The System had a decline in its investment portfolio subsequent to June 30, 2002. As of October 31, 2002 the System had incurred an approximate $1,221 million (4.9%) decrease in its investment portfolio since June 30, 2002.

NEW ACCOUNTING PRONOUNCEMENTS

The System adopted Government Auditing Standard Board (GASB) Statements 34, 37 & 38. The adoption of these standards, effective July 1, 2001, had no impact on the System’s financial statements or its net assets. As a result of the adoption of these standards the System now presents a section on Management’s Discussion and Analysis which precedes the financial statements.

AUDITORS' OPINION

Our auditors state the June 30, 2002 financial statements of the System are fairly presented in all material respects.

WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

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