REPORT DIGEST

ILLINOIS STATE BOARD OF INVESTMENT

COMPLIANCE AUDIT
For the Year Ended:
June 30, 1998

Summary of Findings:

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

Release Date:
January 27, 1999


State of Illinois
Office of the Auditor General

WILLIAM G. HOLLAND
AUDITOR GENERAL

Iles Park Plaza
740 E. Ash Street
Springfield, IL 62703
(217) 782-6046

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, 1998. A financial audit covering the year ending June 30, 1998 is being 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

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

 

{Financial Information is summarized on the reverse page.}

ILLINOIS STATE BOARD OF INVESTMENTS
INFORMATION FROM FINANCIAL AND COMPLIANCE AUDITS
YEAR ENDED JUNE 30, 1998

FINANCIAL STATEMENT ANALYSIS

FY 1998

FY 1997

Revenues:

Investment Income - Interest
Investment Income - Dividends
Investment Income - Securities Lending
Total Investment Income

Expenses:

Operating Expenses

Net Investment Income
Net Realized Gain on Investments
Net Change in Unrealized Gain on Investments

Change in Investments

Member Systems' Withdrawals
Net Assets, at Beginning of Year
Net Assets, at End of Year



$194,122,517
55,779,586
2,335,280
$252,237,383



15,091,365

$237,146,018
748,429,299
154,496,968

$1,140,072,285

(88,300,000)
6,328,137,142
$7,379,909,427


$182,952,985
56,028,503
2,126,047
$241,107,535



14,245,218

$226,862,317
381,054,619
399,803,761

$1,007,720,697

(116,400,000)
5,436,816,445
$6,328,137,142
INVESTMENT PORTFOLIO ANALYSIS - Fair Value

JUNE 30, 1998

JUNE 30, 1997

Total Government Obligations
Total Corporate Obligations
Foreign Obligations
Convertible Bonds
Common Stock & Equity Funds
Convertible Preferred Stock
Preferred Stock
Foreign Equity Securities
Real Estate Funds
Alternative Investments
Money Market Instruments
Forward Foreign Currency Contracts
Options
Total Investment Portfolio
$1,299,851,793
595,698,778
52,336,197
13,984,049
3,022,271,513
33,701,030
9,796,742
1,083,783,967
250,823,177
361,780,824
678,360,145
(306,533)
8,760
$7,402,090,442
$1,137,289,413
648,401,848
38,894,843
7,708,471
2,424,361,786
21,207,595
25,335,680
1,019,434,063
252,606,430
306,053,788
419,376,908
1,008,282
4,465,309
$6,306,144,416
OPERATING EXPENSES

FY 1998

FY 1997

Personal Services
Rent and Utilities
Audit
Other
External Support:
Custody
Consulting and Professional
Investment Advisors/Managers
Investment Services and Research
Total Operating Expenses
$883,220
75,933
77,850
130,523

300,068
252,255
13,272,314
99,202
$15,091,365
$954,362
73,392
74,961
95,413

723,019
57,915
12,171,700
94,456
$14,245,218
SUPPLEMENTARY INFORMATION

FY 1998

FY 1997

Total Investment Manager Fees
Total Time Weighted Return on Investments
Average Number of System Employees
Total Brokerage Commissions Paid

$13,272,314
18.1%
11
$3,471,181

$12,171,700
18.8%
11
$3,953,561

EXECUTIVE DIRECTOR
During Audit Period: Jane R. Patterson
Currently: Jane R. Patterson