REPORT DIGEST

REPORT DIGEST

OFFICE OF THE

STATE TREASURER

THE ILLINOIS FUNDS

FINANCIAL AUDIT

For the Year Ended:

June 30, 2008

Release Date:

January 29, 2009

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 the Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

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, 2008, assets in this fund totaled $7,131,407,670. 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, 2008, are fairly stated in all material respects.

___________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:JSC:pp

SPECIAL ASSISTANT AUDITORS

Crowe Horwath LLP was our special assistant auditors on this engagement.

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

OFFICE OF THE STATE TREASURER

THE ILLINOIS FUNDS

FINANCIAL AUDIT

For Year Ending June 30, 2008

STATEMENTS OF FIDUCIARY NET ASSETS				FY 2007		FY 2007
Money Market Mutual Funds.......................................................... Repurchase Agreements................................................................ Commercial Paper......................................................................... Certificates of Deposit................................................................... U.S. Agency Obligations: - Federal Home Loan Bank Debentures…………………… - Federal Home Loan Bank Discount Notes………………. - Federal Home Loan Mortgage Corporation Discount Notes…………………………………………………….. - Federal Home Loan Mortgage Corporation Callable Notes…………………………………………………….. - Federal National Mortgage Association Discount Notes…...................................................................... Accrued Interest Receivable.......................................................... Total Assets...................................................................... Bank Custodial Fees Payable.......................................................... State Management Fees Payable.................................................... Total Liabilities................................................................. Net Assets Available to Participants...............................................				$ 294,208,792 3,090,569,250 468,750,563 135,008,653 194,995,303 1,618,771,000 573,340,280 30,000,000 724,251,576 1,512,253 $7,131,407,670 $ 184,866 358,747 $ 543,613 $7,130,864,057		$ 281,640,733 6,227,491,292 393,858,849 109,601,181 60,000,000 0 0 0 0 2,156,381 $7,074,748,436 $ 199,171 348,861 $ 548,032 $7,074,200,404
	SELECTED ACTIVITY MEASURES		FY 2008		FY 2007
Administrative Fees Received....................................................... Administrative Expenditures.......................................................... Total Number of Participants........................................................ Number of State of Illinois Participants ......................................... Balance of State of Illinois Investments......................................... Number of Employees..................................................................		$4,106,000 $2,717,000 2,249 29 $1,468,487,811 21			$3,708,000 $3,070,000 2,181 28 $1,687,070,743 25
STATE TREASURER
During Audit Period: Honorable Alexi Giannoulias Currently: Honorable Alexi Giannoulias

Number of Employees..................................................................