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