Illinois State Board on Investment 2001 Compliance Audit

REPORT DIGEST
ILLINOIS STATE BOARD OF INVESTMENT

COMPLIANCE AUDIT

For the Year Ended:

June 30, 2001

Summary of Findings:

Total this audit 0
Total last audit 0
Repeated from last audit 0

Release Date:
February 28, 2002

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
Attn: Records Manager
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 Board for the year ended June 30, 2001. A financial audit covering the year ending June 30, 2001 was issued separately. There were no material findings of noncompliance disclosed during our audit tests. We commend the Board for maintaining effective fiscal controls.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:RPU:pp

SPECIAL ASSISTANT AUDITORS

KPMG, LLP were our special assistant auditors for this audit.

{Financial Information is summarized on the reverse page.}

ILLINOIS STATE BOARD OF INVESTMENT
INFORMATION FROM FINANCIAL AND COMPLIANCE AUDITS
YEAR ENDED JUNE 30, 2001

FINANCIAL STATEMENT ANALYSIS	FY 2001	FY 2000
Revenues: Investment Income - Interest Investment Income - Dividends Investment Income - Securities Lending Total Investment Income Expenses: Operating Expenses Net Investment Income Realized Gain on Investments Unrealized Gain (Loss) on Investments Change in Investments Member Systems’ Withdrawals Net Assets, at Beginning of Year Net Assets, at End of Year	$ 191,525,567 52,761,122 3,607,963 $ 247,894,652 20,598,995 $ 227,295,657 297,832,749 (1,177,475,837) $ (879,643,088) (39,900,000) 9,270,329,398 $ 8,578,081,967	$ 172,452,202 55,256,052 3,658,079 $ 231,366,333 20,719,681 $ 210,646,652 981,404,165 (214,981,485) $ 977,069,332 (15,700,000) 8,308,960,066 $9,270,329,398
INVESTMENT PORTFOLIO ANALYSIS - Fair Value	JUNE 30, 2001	JUNE 30, 2000
Total Government Obligations Total Corporate Obligations Foreign Obligations Convertible Bonds Common Stock & Equities Convertible Preferred Stock Preferred Stock Foreign Equity Securities Real Estate Investments Alternative Investments Money Market Investments Forward Foreign Currency Contracts Total Investment Portfolio	$1,134,638,341 799,240,560 108,110,344 55,706 3,777,918,575 3,375,353 5,742,468 1,594,371,444 349,790,999 494,792,298 345,601,984 (52,875) $8,613,585,197	$1,154,131,028 543,874,357 68,212,655 10,928,836 3,957,626,585 38,141,900 6,764,833 2,086,712,466 284,414,376 535,793,992 606,334,768 341,876 $9,293,277,672
OPERATING EXPENSES	FY 2001	FY 2000
Salaries Benefits Rent and Utilities Audit Other External Support: Custody Consulting and Professional Investment Advisors/Managers Investment Services and Research Total Operating Expenses	$ 1,179,201 310,946 141,212 101,600 140,286 356,068 533,682 17,645,753 190,247 $20,598,995	$ 990,253 261,764 152,677 101,225 110,779 343,818 350,891 18,267,452 140,822 $20,719,681
SUPPLEMENTARY INFORMATION	FY 2001	FY 2000
Compounded Annual Rate of Return, Since July 1, 1982 Total Time Weighted Return on Investments Average Number of System Employees Total Brokerage Commissions Paid	12.1% (7.1)% 12 $4,650,839	13.2% 11.8% 12 $5,472,382
EXECUTIVE DIRECTOR
During Audit Period: Jane R. Patterson Currently: Jane R. Patterson