REPORT DIGEST

REPORT DIGEST

PRAIRIELAND ENERGY, INC.

FINANCIAL AND COMPLIANCE AUDIT

Period from November 19, 1996 (Date of Inception) through June 30, 1999

Summary of Findings:

Total this audit 0

Release Date:
February 9, 2000

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

Prairieland Energy, Inc. is an Illinois corporation formed and wholly owned by the Board of Trustees of the University of Illinois. Prairieland was formed November 19, 1996 for the purpose of producing, acquiring and selling various forms of energy for the University and other customers.

FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

There were no material findings of noncompliance disclosed during our audit tests. We commend the Corporation for maintaining an effective system of internal controls.

AUDITORS’ OPINION

Our auditors stated the Corporation’s June 30, 1999, 1998 and 1997 financial statements are presented fairly.

____________________________________
WILLIAM G. HOLLAND, Auditor General

WGH:KMA:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were Olive LLP.

PRAIRIELAND ENERGY, INC.
FINANCIAL AND COMPLIANCE AUDIT
For The Period Ended June 30, 1999

FINANCIAL OPERATIONS

FY 1999

FY 1998

FY 1997

OPERATING REVENUES
   Steam Sales
   Chilled Water Sales
   Hot Water Sales
   Consulting
     Total

OPERATING EXPENSES
   Energy Costs
   Equipment Rental
   Purchased Capacity
   Independent Contractors
   Professional Fees
   Salaries
   Office Rent
   Other
     Total
Operating Income
Other Income – Interest
Income Before Taxes
Income Tax Expense (Benefit)
Net Income (Loss)

$868,662
541,646
281,131
13,257
$1,704,696

$821,451
704,580
40,404
16,747
4,426
17,836
33,372
6,855
1,645,671
59,025
990
60,015
17,193
$42,822

$22,800
5,624
28,424
(28,424)
1,208
(27,216)
(6,069)
$(21,147)

$44,589
$44,589

$25,574

380
25,954
18,635
394
19,029
4,169
$14,860

SELECTED ACCOUNT BALANCES	At June 30, 1999	At June 30, 1998	At June 30, 1997
Cash and Equivalents Receivables Property and Equipment (net) Deferred Income Tax Liability Common Stock, Issued and Outstanding Retained Earnings (Deficit)	$64,415 85,659 4,591 24,975 100,000 36,535	$29,750 - 8,885 620 50,000 (6,287)	$52,114 4,696 11,786 3,772 50,000 14,860

CORPORATION PRESIDENT

During Audit Period: Mr. Lyle Wachtel
Currently: Mr. Lyle Wachtel