REPORT DIGEST

 

ILLINOIS STUDENT ASSISTANCE COMMISSION

PREPAID TUITION PROGRAM

 

FINANCIAL AUDIT

For the Year Ended:

June 30, 2003

 

 

Release Date:

April 13, 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

This report covers our financial audit of the Illinois Student Assistance Commission – Prepaid Tuition Program as of June 30, 2003 and for the year then ended.

 

 

AUDITORS’ OPINION

Our auditors stated the financial statements of the Program are fairly presented in all material respects.

 

 

 

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:SES:pp

 

 

 

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors for this audit were McGladrey & Pullen.

 

 

                            ILLINOIS STUDENT ASSISTANCE COMMISSION

                                             PREPAID TUITION PROGRAM

 

                                                      FINANCIAL AUDIT

                                            For The Year Ended June 30, 2003

                                                         (In Thousands)

 

FINANCIAL OPERATIONS (All Funds)

FY 2003

FY 2002

REVENUES

      Interest revenue

      Application and other fees

      Investment securities gain (loss)

            TOTAL

EXPENSES

      Accretion expense

      Management, professional services and
            administrative costs

      Salaries and employee benefits

      Investment management fees

            TOTAL

Net Operating (Loss)

 

$11,054

2,562

______-

$13,616

 

$22,007

 

2,353

525

932

$25,817

$(12,201)

 

$4,768

2,023

(13,201)

$(6,410)

 

$12,560

 

1,996

667

611

$15,834

$(22,244)

SELECTED BALANCE SHEET ACCOUNTS

FY 2003

FY 2002

Cash and cash equivalents

Investments and marketable securities

Current Liabilities:

      Tuition payable

      Accretion payable

      Other current liabilities

            Total current liabilities

Tuition & accretion payable, long-term

Retained earnings (deficit)

$7,837

335,730

 

9,236

695

405

10,336

386,983

(53,793)

$9,152

214,339

 

5,232

394

635

6,261

258,755

(41,583)

ACTUARIAL (DEFICIT) as of June 30 - Per Actuarial Reports

FY 2003

FY 2002

Market value of assets

      Add - Actuarial present value of future payments
                  expected to be made by contract purchasers

      Deduct - Actuarial present value of future payments
                  expected to be paid from contract purchasers

Actuarial (deficit) as of June 30

Semesters purchased (or being purchased) and outstanding

$343,121

 

154,198

 

(573,525)

$(76,206)

210

$223,315

 

129,570

 

(434,470)

$(81,585)

180

AGENCY DIRECTOR(S)

 

 

During Audit Period: Larry E. Matejka

Currently Larry E. Matejka