REPORT DIGEST
TEACHERS’ RETIREMENT SYSTEM
COMPLIANCE AUDIT For the Year Ended: June 30, 2003
Summary of Findings:
Total this audit 0 Total last audit 0 Repeated from last audit 0
Release Date: March 11, 2004
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 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, 2003. A financial audit covering the year ending June 30, 2003 was issued separately. There were no material findings of noncompliance disclosed during our audit tests. We commend the System for maintaining effective internal controls. SUBSEQUENT EVENT On April 7, 2003, Governor Rod Blagojevich signed House Bill 2660 into law as Public Act 93-0002. This new law authorized the state of Illinois to issue $10 billion of General Obligation Bonds for the purpose of making contributions to designated retirement systems, which included the Teachers’ Retirement System. On July 2, 2003, the Teachers’ Retirement System received an allocation of $4,330,373,948 from the pension bond obligation proceeds. The Teachers’ Retirement System Board of Trustees approved allocating the pension obligation bond proceeds as follows: 41% to an S&P 500 Index Fund, 31% to a Daily Aggregate Bond Index Fund, 18% to a MSCI EAFE Index Fund and 10% to a Monthly Collective Small Cap Index Fund.
_____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:RPU:pp SPECIAL ASSISTANT AUDITORS McGladrey & Pullen LLP were our special assistant auditors for this audit. {Financial Data and Activity Measures are summarized on the reverse page.} |
TEACHERS' RETIREMENT SYSTEM OF ILLINOIS
INFORMATION FROM FINANCIAL AND COMPLIANCE AUDITS
YEAR ENDED JUNE 30, 2003
OPERATING STATEMENT ANALYSIS |
FY 2003 |
FY 2002 |
Revenues: Contributions - Members Contributions - State of Illinois Contributions - School Districts Total Contributions Investment Income - Appreciation in Fair Value Investment Income - Income From Investments Total Investment Income (Loss) #9; Investment Expense Total Revenues Expenses: Total Benefits Refunds, Admin. & Prior Service Credits Total Expenses Excess/(Deficiency) of Revenue over Expenses |
$ 732,020,451 929,709,762 91,552,463 $1,753,282,676 467,463,329 707,380,433 1,174,843,762 113,991,651 $2,814,134,787 $1,998,622,284 56,974,144 $2,055,596,428 $ 758,538,359 |
$ 681,151,770 814,739,766 92,618,146 $ 1,588,509,682 (1,461,163,444) 868,721,601 (592,441,843) 131,545,202 $ 864,522,637 $ 1,759,748,668 54,135,340 $ 1,813,884,008 $ (949,361,371) |
INVESTMENT PORTFOLIO ANALYSIS - Fair Value |
JUNE 30, 2003 |
JUNE 30, 2002 |
Total Government Obligations Total Corporate Obligations International Notes Preferred Stock (U.S. & International Combined) Common Stock - U.S. Common Stock - International Short Term Investments Real Estate Investments Private Equity Foreign Currency Total Investment Portfolio |
$ 4,221,372,131 2,806,907,117 286,570,409 122,216,597 9,247,447,414 3,279,688,612 1,032,463,461 2,412,293,598 668,389,537 23,905,527 $24,101,254,403 |
$ 4,202,383,716 2,572,684,208 2,020,171,317 100,963,556 6,732,052,482 3,293,632,161 1,435,410,212 2,202,925,998 594,153,359 23,955,458 $23,178,332,467 |
ADMINISTRATIVE EXPENSES |
FY 2003 |
FY 2002 |
Personal Services Professional Services Postage Machine Repair and Rental Other Contractual Services Commodities Occupancy Expense Provision for Depreciation Loss on Disposal of Equipment Total Administrative Expenses |
$ 9,499,683 1,385,493 488,524 553,562 716,257 488,669 194,205 532,511 498 $13,859,402 |
$ 9,328,695 1,434,574 390,748 473,750 657,504 396,268 174,040 631,520 294 $13,487,393 |
SELECTED ACCOUNT BALANCES |
JUNE 30, 2003 |
JUNE 30, 2002 |
Cash Receivables Accrued Investment Income Receivable Investments Collateral from Securities Lending Prepaid Expenses Property and Equipment Total Assets Total Liabilities Net Assets Held in Trust for Pension Benefits Actuarial Accrued Liability Unfunded Actuarial Accrued Liability |
$ 3,651,963 118,918,372 165,638,540 23,935,615,863 2,154,422,658 2,212,894 2,630,930 $ 26,383,091,220 3,258,268,149 $ 23,124,823,071 46,933,432,000 $(23,808,608,929) |
$ 6,039,088 159,375,923 233,414,394 22,944,918,073 1,897,635,461 410,160 3,113,533 $ 25,244,906,632 2,878,621,920 $ 22,366,284,712 43,047,674,000 $(20,681,389,288) |
SUPPLEMENTARY INFORMATION |
FY 2003 |
FY 2002 |
Total investment manager fees Total time weighted return on investments Average Number of System Employees Number of Retirement Annuitants Total Brokerage Commissions Paid |
$72,271,260 4.9% 163 64,702 $20,340,971 |
$63,896,470 (3.2)% 167 59,360 $13,659,145 |
EXECUTIVE DIRECTOR |
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During Audit Period : Jon Bauman Currently: Jon Bauman |