REPORT DIGEST

SOUTHERN ILLINOIS UNIVERSITY

 PHYSICIANS AND SURGEONS, INC.

FINANCIAL AUDIT

For the Year Ended:

June 30, 2004

Release Date:

January 27, 2005

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 is also available on

the worldwide web at

http://www.state.il.us/auditor

INTRODUCTION

      This digest covers our financial audit of Southern Illinois University Physicians and Surgeons, Inc. for the year ended June 30, 2004.  A compliance audit covering the two years ended June 30, 2005 will be issued at a later date.

AUDITORS' OPINION

      Our auditors stated the June 30, 2004 financial statements of the Physicians and Surgeons, Inc. are fairly presented in all material respects.

___________________________________

WILLIAM G.HOLLAND, Auditor General

WGH:KAL:pp

SPECIAL ASSISTANT AUDITORS

      Kerber, Eck & Braeckel LLP were our special assistant auditors for this engagement.

FINANCIAL OPERATIONS (All Funds)

FY 2004

FY 2003

REVENUES

      Operating revenues..............................................

$57,602,696

$48,166,004

EXPENSES

      Operating expenses..............................................

$54,486,098

$49,526,760

            Operating income (loss)..................................

$3,116,598

($1,360,756)

NONOPERATING REVENUES (EXPENSES)

Interest Expense.........................................................

($12,389)

$0

Investment Income.....................................................

$194,692

$251,725

Contributions/donations..............................................

($1,663)

($4,542)

      Net nonoperating revenues...................................

$180,640

$247,183

Increase (decrease) in net assets.................................

$3,297,238

($1,113,573)

NET ASSETS

Net Assets – beginning of year...................................

$12,743,742

$13,857,315

Net Assets – end of year............................................

$16,040,980

$12,743,742

OTHER SIGNIFICANT ACCOUNT BALANCES

AT JUNE 30,

2004

AT JUNE 30,

2003

Cash and Deposits with SIU........................................

Net Patient Accounts Receivable.................................

Total Assets.............................................................

Accounts Payable and Accrued Liabilities....................

Employee Salaries Payable..........................................

Total Liabilities........................................................

Net Assets – Invested in capital assets.........................

Net Assets – Unrestricted...........................................

Total Net Assets......................................................

$8,957,552

$11,434,988

$21,437,848

$2,143,354

$2,320,052

$5,396,868

$366,432

$15,674,548

$16,040,980

$6,442,854

$10,305,796

$17,103,255

$1,642,181

$2,249,727

$4,359,513

$354,605

$12,389,137

$12,743,742

EXECUTIVE DIRECTOR

During the audit:  Mr. David J. Tkach

Currently:  Mr. David J. Tkach