REPORT DIGEST

ILLINOIS STUDENT ASSISTANCE COMMISSION

ILLINOIS

PREPAID TUITION PROGRAM

FINANCIAL AUDIT

For the Year Ended:

June 30, 2006

Release Date:

February 21, 2007

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.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, 2006 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.

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

ILLINOIS STUDENT ASSISTANCE COMMISSION

PREPAID TUITION PROGRAM

FINANCIAL AUDIT

For The Year Ended June 30, 2006 (In Thousands)

FINANCIAL OPERATIONS	2006	2005
OPERATING REVENUES Income from investment securities....................... Application and other fees.................................. Interest income (other)....................................... TOTAL...................................................... OPERATING EXPENSES Accreted tuition expenses................................... Management and professional services............. Investment management fees.............................. Salaries and employee benefits........................... TOTAL...................................................... Net Operating Income (Loss).............................. Transfer out............................................................. Change in Net Assets........................................... Net Assets (Deficit), July 1....................................... Net Assets (Deficit), June 30...............................	$49,329 2,342 419 $52,090 $44,367 3,002 2,621 740 $50,730 $1,360 25 $1,335 (30,470) $(29,135)	$47,335 2,435 209 $49,979 $35,581 2,758 2,156 653 $41,148 $8,831 - $8,831 (39,301) $(30,470)
SELECTED BALANCE SHEET ACCOUNTS	June 30, 2006	June 30, 2005
Cash and cash equivalents........................................ Investments and marketable securities....................... Current Liabilities: Tuition payable.................................................. Accreted tuition payable..................................... Other current liabilities........................................ Total current liabilities................................... Tuition & accretion payable, long-term..................... Net Assets, (deficit).................................................	$10,746 777,302 24,758 1,863 920 $27,541 $789,628 $(29,135)	$6,928 640,974 20,494 1,543 727 $22,764 $655,567 $(30,470)
ACTUARIAL (DEFICIT) as of June 30 - Per Actuarial Reports	2006	2005
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 by the program.................................................. Actuarial (deficit) as of June 30................................ Contracts purchased and outstanding.......................	$787,114 186,468 (1,120,511) $(146,929) 47	$647,133 177,054 (935,865) $(111,678) 43
AGENCY DIRECTOR(S)
During Audit Period: Mr. Larry E. Matejka Currently: Mr. Andrew Davis