REPORT DIGEST

 

GENERAL ASSEMBLY RETIREMENT SYSTEM

 

COMPLIANCE AUDIT

For the Year Ended:

June 30, 2003

 

Summary of Findings:

 

Total this audit                       0

Total last audit                       0

Repeated from last audit        0

 

Release Date:

March 11, 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 digest covers our compliance audit of the General Assembly Retirement System (System) for the year ended June 30, 2003. A financial audit covering the year ending June 30, 2003 was issued separately.

It should be noted that, pursuant to the Illinois Pension Code, investments of the System are managed by the Illinois State Board of Investment.

There were no material findings of noncompliance disclosed during our audit tests. We commend the System for maintaining effective internal controls.

SUBSEQUENT EVENT

On April 7, 2003, Governor Rod Blagojevich signed House Bill 2660 into law as Public Act 93-0002. This new law authorized the State of Illinois to issue $10 billion of General Obligation Bonds for the purpose of making contributions to designated retirement systems, which included the General Assembly Retirement System.

On July 1, 2003, the System received an allocation of $27,073,983 from the pension bond proceeds. The System deposited the allocation into its master trust account with the Illinois State Board of Investments on July 2, 2003.

 

_____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:RPU:pp

SPECIAL ASSISTANT AUDITORS

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

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

 

              GENERAL ASSEMBLY RETIREMENT SYSTEM OF ILLINOIS

           INFORMATION FROM FINANCIAL AND COMPLIANCE AUDITS

                                   TWO YEARS ENDED JUNE 30, 2003

 

OPERATING STATEMENT ANALYSIS

FY 2003

FY 2002

REVENUES: Contributions Participants

                      Contributions appropriations & other #9;

                            Total Contributions

                      Net investment income

                      Net (depreciation) in fair value of investments

                      Interest earned on cash balances

                            Total Revenue

EXPENSES:  Benefits - Retirement annuities

                      Benefits - Survivors' annuities

                            Total Benefits

                      Refunds

                      Administration

                            Total Expenses

                      Deficiency of revenues over expenses

$ 1,954,169

5,433,781

$ 7,387,950

1,071,966

(1,340,215)

35,155

$ 7,154,856

$ 9,159,794

1,971,683

$11,131,477

106,713

290,931

$11,529,121

$(4,374,265)

$ 1,552,295

4,721,478

$ 6,273,773

1,346,042

(5,304,627)

43,745

$ 2,358,933

$ 8,111,247

1,841,986

$ 9,953,233

68,205

284,775

$ 10,306,213

$(7,947,280)

ANALYSIS OF PLAN INVESTMENTS

FY 2003

FY 2002

Balance at beginning of year, at fair value

Net cash (withdrawn) from investments

                   Net investments (1)

Investment income interest, dividends and other

Investment expenses

                   Net Investment income (2)

Net realized gain (loss) on sale of investments

Net unrealized (loss) on investments

                   Net (depreciation) in fair value of investments (3)

                   Total net investment (loss) (4), (2) + (3)

                   Balance at end of year, at fair value (1) + (4)

$52,154,420

(4,500,000)

$47,654,420

1,176,330

(104,364)

$ 1,071,966

2,581,426

(3,921,641)

$(1,340,215)

$ (268,249)

$ 47,386,171

$ 60,463,005

(4,350,000)

$ 56,113,005

1,472,358

(126,316)

$ 1,346,042

(3,865,748)

(1,438,879)

$(5,304,627)

$(3,958,585)

$ 52,154,420

SELECTED ACCOUNT BALANCES

JUNE 30, 2003

JUNE 30, 2002

Cash

Receivables

Investments, at fair value

Property and equipment, net of accumulated depreciation

Liabilities

Net Assets Held in Trust for Benefits

Actuarial Accrued Liability

Unfunded Liability

$ 1,614,768

791,696

47,386,171

1,546

(117,879)

$ 49,676,302

$(196,510,067)

$(146,833,765)

$ 1,297,601

701,568

52,154,420

2,081

(105,103)

$ 54,050,567

$(184,582,544)

$(130,531,977)

SUPPLEMENTARY INFORMATION (unaudited)

FY 2003

FY 2002

Retirees and beneficiaries currently receiving benefits

Total members

Total active members

Total return on investments

383

295

182

.3%

353

286

181

(6.9)%

EXECUTIVE SECRETARY

During Audit Period: Michael L. Mory until December 31, 2002; Robert V. Knox effective January 1, 2003

Currently: Robert V. Knox