REPORT DIGEST

ILLINOIS STUDENT ASSISTANCE
COMMISSION –

ILLINOIS

PREPAID TUITION PROGRAM

FINANCIAL AUDIT

For the Year Ended:

June 30, 2004

Release Date:

May 19, 2005

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 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 – Illinois Prepaid Tuition Program as of June 30, 2004 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:JAF:pp

SPECIAL ASSISTANT AUDITORS

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

ILLINOIS STUDENT ASSISTANCE COMMISSION

PREPAID TUITION PROGRAM

FINANCIAL AUDIT

For The Year Ended June 30, 2004 (In Thousands)

FINANCIAL OPERATIONS	2004	2003
OPERATING REVENUES Income from investment securities............................... Application and other fees.......................................... Interest income (other)............................................... TOTAL.............................................................. OPERATING EXPENSES Accretion tuition expense............................................ Management, professional services and administrative costs..................................................................... Investment management fees....................................... Salaries and employee benefits................................... TOTAL.............................................................. Net Operating Income (Loss)...................................... Nonoperating expense...................................................... Change in Net Assets................................................... Net Assets (Deficit), July 1............................................... Net Assets (Deficit), June 30.......................................	$47,708 2,470 85 $50,263 $31,203 2,556 1,432 580 $35,771 $14,492 - $14,492 (53,793) $(39,301)	$10,891 2,562 163 $13,616 $22,007 2,353 932 525 $25,817 $(12,201) 9 $(12,210) (41,853) $(53,793)
SELECTED BALANCE SHEET ACCOUNTS	June 30, 2004	June 30, 2003
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).................................................	$6,917 491,938 14,682 1,105 401 $16,188 $521,911 $(39,301)	$7,837 335,730 9,236 695 405 $10,336 $386,983 $(53,793)
ACTUARIAL (DEFICIT) as of June 30 - Per Actuarial Reports	2004	2003
Net assets, before tuition/accretion payable....................... 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......................................... Contracts purchased and outstanding................................	$498,398 165,688 (736,725) $(72,639) 38	$343,121 154,198 (573,525) $(76,206) 33
AGENCY DIRECTOR(S)
During Audit Period: Larry E. Matejka Currently: Larry E. Matejka