REPORT DIGEST

REPORT DIGEST

OFFICE OF THE

STATE TREASURER

THE ILLINOIS FUNDS

FINANCIAL AUDIT

For the Year Ended:

June 30, 2003

Release Date:

February 18, 2004

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 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 Administrative Office". The revenues and expenditures of the Division were recorded in a fund maintained by the Treasurer entitled The Illinois Funds Administrative Trust 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, 2003, assets in this fund totaled $4,934,228,922. 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, 2003, 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

                                                                    At June 30, 2003

STATEMENTS OF FIDUCIARY NET ASSETS		FY 2003			FY 2002
Money Market Mutual Funds 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 discount notes Federal Home Loan Mortgage Corporation discount 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		$ 368,333,402 4,043,141,333 4,034,465 199,430,188 174,524,351 0 101,601,275 0 14,930,796 27,669,979 0 0 563,133 $4,934,228,922 $ 149,350 228,809 $ 378,159 $4,933,850,763			$ 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 87,486,469 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
SELECTED ACTIVITY MEASURES	FY 2003		FY 2002
Administrative Fees Received Administrative Expenditures Total Number of Participants Number of State of Illinois Participants Balance of State of Illinois Investments Number of Employees	$2,694,389 $3,259,000 1,932 29 $1,493,216,802 34			$2,966,000 $3,362,000 1,935 29 $995,295,900 38
STATE TREASURER
During Audit Period: Honorable Judy Baar Topinka Currently: Honorable Judy Baar Topinka