REPORT DIGEST ILLINOIS STUDENT ASSISTANCE COMMISSION - ILLINOIS PREPAID TUITION PROGRAM FINANCIAL AUDIT For the Year Ended: June 30, 2009 Release Date: March 3, 2010 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 www.auditor.illinois.gov

INTRODUCTION This report covers our financial audit of the Illinois Student Assistance Commission (Commission) – Illinois Prepaid Tuition Program (Program) as of June 30, 2009 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, 2009 (In Thousands)

FINANCIAL OPERATIONS	2009	2008
OPERATING REVENUES Income (loss) from investment securities.................... Application and other fees.......................................... Interest income (other)............................................... Net operating revenue.......................................... OPERATING EXPENSES Accreted tuition expenses......................................... Management and professional services..................... Investment management fees..................................... Salaries and employee benefits................................... Total operating expenses...................................... Operating Income (Loss).............................................. Transfer out..................................................................... Change in Net Assets................................................... Net Assets (Deficit), July 1.............................................. Net Assets (Deficit), June 30.......................................	$(155,994) 1,940 121 (153,933) 67,776 3,438 1,649 1,856 74,719 (228,652) (31) (228,683) (112,977) $(341,660)	$(78,491) 2,396 355 (75,740) 65,873 3,872 2,972 842 73,559 (149,299) - (149,299) 36,322 $(112,977)
STATEMENT OF NET ASSETS	June 30, 2009	June 30, 2008
Assets: Cash and cash equivalents.......................................... Securities lending collateral......................................... Investments and marketable securities........................ Accrued interest income............................................. Total assets......................................................... Liabilities: Tuition payable.......................................................... Accreted tuition payable............................................ Securities lending collateral obligation......................... Other liabilities........................................................... Total liabilities...................................................... Net Assets, (deficit).........................................................	$ 61,332 72,331 824,995 _____7 958,665 884,485 337,369 77,664 807 1,300,325 $(341,660)	$ 5,998 167,529 987,590 ______31 1,161,148 828,100 274,306 170,776 943 1,274,125 $(112,977)
ACTUARIAL (DEFICIT) as of June 30 - Per Actuarial Reports	2009	2008
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..............................	$880,194 196,581 (1,592,332) $(515,557) 55	$992,676 193,922 (1,459,764) $(273,166) 53
AGENCY DIRECTOR
During Audit Period: Mr. Andrew Davis Currently: Mr. Andrew Davis