Illinois State Treasurer College Savings Plan 2000 Audit

REPORT DIGEST

OFFICE OF THE

STATE TREASURER

BRIGHT START COLLEGE SAVINGS PLAN

FINANCIAL AUDIT

For the Period Ended:

June 30, 2000

Release Date:
May 8, 2001

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

In March, 2000 the Illinois State Treasurer began the Bright Start College Savings Program. This program was initiated pursuant to P.A. 91-0607 which authorized the State Treasurer to establish and administer a "qualified state tuition program" under Section 529 of the Internal Revenue Code of 1986, as amended

{Expenditures and Activity Measures are summarized on the reverse page.}

OFFICE OF THE STATE TREASURER
BRIGHT START COLLEGE SAVINGS PROGRAM
FINANCIAL AUDIT
June 30, 2000

BALANCE SHEET STATISTICS (ALL FUNDS)	FY 2000
Cash and Cash Equivalents Fund Share Receivable Dividends Receivable Mutual Funds Accounts Receivable Property & Equipment, net of Depreciation Total Assets Payable for Securities Purchased Advisory Fees Accounts Payable and Accrued Liabilities Leases Payable Total Liabilities Fund Balance Retained Earnings Total Liabilities and Fund Balances or Equity	$ 122,124 1,024,142 19,381 10,424,316 29,167 60,458 $11,679,588 $ 318,783 2,090 7,348 52,338 $ 380,559 $11,244,339 $ 54,690 $11,679,588

SELECTED ACTIVITY MEASURES	FY 2000
Administrative Costs Decrease in Fair Value of Investments Bank Custodial Fees Investment Manager Custodial Fees	$39,864 $63,699 $3,435 $45,470

STATE TREASURER

During Audit Period: Honorable Judy Baar Topinka
Currently: Honorable Judy Baar Topinka

INTRODUCTION

Under the Bright Start College Savings Program (Program), participants may make investments in accounts established for the purpose of meeting the qualified higher education expenses of the beneficiaries designated on the Program accounts. Amounts contributed to the Program are invested in the Bright Start College Savings Trust (Trust).

The State Treasurer selected an investment firm (Manager) to advise the office on the investment of Trust assets, to administer the Trust assets, and to provide other services relating to the Program. As such, the Investment Manager acts as agent of the Treasurer, and as trustee of the Trust. The Treasurer, however, retains ultimate authority to manage the investments of the Trust.

To administer the Bright Start College Savings Program, the Treasurer has established a division entitled "The Bright Start College Savings Program Administrative Office." The revenues and expenditures of the Division are recorded in a fund maintained by the Treasurer entitled The Bright Start College Savings Program Administrative Trust Fund, which is classified as an enterprise fund.

An expendable trust fund was used to account for assets held by the Program in a trustee capacity or as agent for individuals throughout the United States. At June 30, 2000, assets in this fund totaled $11,565,212.

AUDITORS' OPINION

Our special assistant auditors stated that The Bright Start College Savings Program June 30, 2000 financial statements are presented fairly in all material respects.

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WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

The public accounting firm of Kerber, Eck & Braeckel LLP were our special assistant auditors.