The Bright Start College Savings Program (Program) was established in March 2000 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. The State Treasurer selected an investment firm (Manager) to advise the office on the investment of the Trust assets, to administer the Trust assets, and to provide other services relating to the Program. As such, the 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 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 investment 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, 2003, assets in this fund totaled $628,636,285.

Our special assistant auditors stated that The Bright Start College Savings Program financial statements, as of and for the year ended June 30, 2003 are fairly stated in all material respects.

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WILLIAM G. HOLLAND, Auditor General

Our special assistant auditors for this audit were Kerber, Eck & Braeckel LLP.