Office of the State Treasurer - The Illinois Funds 2002 Audit

REPORT DIGEST

OFFICE OF THE
STATE TREASURER
THE ILLINOIS FUNDS
FINANCIAL AUDIT

For the Year Ended:

June 30, 2002

Release Date:
March 27, 2003

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

INTRODUCTION

The Illinois Funds was established under the name Illinois Public Treasurers' Investment Pool ("IPTIP") in 1976 to supplement and enhance the investment opportunities available to custodians of public agency funds throughout the State of Illinois. The management, custodianship and operation of The Illinois Funds are under the supervision of the Office of the Treasurer - State of Illinois.

To administer The Illinois Funds, the Treasurer has established a division entitled "The Illinois Funds Investment Division". The revenues and expenditures of the Division were recorded in a fund maintained by the Treasurer entitled The Illinois Funds Administrative Fund.

An investment trust fund was used to account for assets held by The Illinois Funds in a trustee capacity for public treasurers throughout the State of Illinois. At June 30, 2002, assets in this fund totaled $4,678,568,733. The custodian for this fund was U.S. Bank of Illinois.

AUDITORS' OPINION

Our special assistant auditors stated that The Illinois Funds’ financial statements, as of and for the year ended June 30, 2002, are fairly stated in all material respects.

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WILLIAM G. HOLLAND, Auditor General

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SPECIAL ASSISTANT AUDITORS

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

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

OFFICE OF THE STATE TREASURER
THE ILLINOIS FUNDS
FINANCIAL AUDIT
For The Year Ended June 30, 2002

STATEMENTS OF FIDUCIARY NET ASSETS	FY 2002	FY 2001
Cash and Cash Equivalents Repurchase Agreements Certificates of Deposit Commercial Paper Direct U.S. Treasury Obligations: Treasury Bills Treasury Strips Treasury Notes U.S. Agency Obligations: Federal Home Loan Banks discounts notes Federal Home Loan Banks interest bearing notes Federal Home Loan Mortgage Corporation discount notes Federal National Mortgage Association notes Federal National Mortgage Association discount notes Farm Credit discount notes Student Loan Marketing Association discount notes Accrued Interest Receivable Total Assets Bank Custodial Fees Payable State Management Fees Payable Total Liabilities Net Assets Available to Participants	$ 261,917,019 3,300,530,000 8,371,653 154,897,562 479,032,386 25,207,525 268,199,699 14,589,942 0 87,486,469 0 65,199,283 2,445,158 6,867,480 3,824,557 $4,678,568,733 $ 147,660 226,830 $ 374,490 $4,678,194,243	$ 217,248,200 3,148,193,365 15,952,286 219,676,228 315,967,455 454,302,995 131,401,849 7,275,160 5,021,698 52,617,822 5,042,030 64,894,976 10,689,946 0 2,822,077 $4,651,106,087 $ 142,726 230,052 $ 372,778 $4,650,733,309

SELECTED ACTIVITY MEASURES	FY 2002	FY 2001
Administrative Fees Received Administrative Expenditures Bank Custodial Fees State Management Fees Number of Employees	$2,966,000 $3,039,000 $1,875,441 $3,045,478 38	$2,579,000 $2,346,000 $1,550,651 $2,460,759 28
STATE TREASURER
During Audit Period: Honorable Judy Baar Topinka Currently: Honorable Judy Baar Topinka