REPORT DIGEST

SOUTHERN ILLINOIS UNIVERSITY

 PHYSICIANS AND SURGEONS, INC.

FINANCIAL AUDIT

For the Year Ended:

June 30, 2006

Release Date:

February 8, 2007 

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

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, 2006.  A compliance audit covering the two years ended June 30, 2007 will be issued at a later date.

AUDITORS' OPINION

      Our auditors stated the June 30, 2006 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

      Crowe Chizek and Company, LLC were our special assistant auditors for this engagement.

FINANCIAL OPERATIONS (All Funds)

FY 2006

FY 2005

REVENUES

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

$72,432,854

$69,772,792

EXPENSES

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

70,133,073

61,388,239

            Operating income.........................................

$2,299,781

$8,384,553

NON-OPERATING REVENUES (EXPENSES)

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

$0

($7,712)

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

355,321

200,601

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

(13,963)

(1,559)

      Net non-operating revenues................................

$341,358

$191,330

Increase in net assets................................................

$2,641,139

$8,575,883

NET ASSETS

Net Assets – beginning of year as restated................

28,587,654

20,011,771

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

$31,228,793

$28,587,654

OTHER SIGNIFICANT ACCOUNT BALANCES

AT JUNE 30,

2006

AT JUNE 30,

2005

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

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

Estimated due from Illinois Department of Health . and Family Services........................................................

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

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

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

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

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

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

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

$18,149,252

$14,935,242

$5,798,502

$40,056,914

$5,555,659

$2,653,624

$8,828,121

$779,975

$30,448,818

$31,228,793

$12,964,501

$15,755,765

$5,132,243

$34,445,735

$2,428,916

$2,806,390

$5,858,081

$593,226

$27,994,428

$28,587,654

EXECUTIVE DIRECTOR

During the audit:  Mr. David J. Tkach

Currently:  Mr. David J. Tkach