REPORT DIGEST ILLINOIS STATE BOARD OF INVESTMENT COMPLIANCE AUDIT For the Year Ended: Summary of Findings: Total this audit 1 Release Date: State of Illinois WILLIAM G. HOLLAND To obtain a copy of the Report contact: (217)782-6046 or TDD (217) 524-4646 This Report Digest is also available on |
SYNOPSIS .
{Financial Information is summarized on the reverse page.} |
ILLINOIS STATE BOARD OF INVESTMENT
INFORMATION FROM FINANCIAL AND COMPLIANCE AUDITS
YEAR ENDED JUNE 30, 1999
FINANCIAL STATEMENT ANALYSIS | FY 1999 |
FY 1998 |
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 |
$ 174,325,319 53,130,599 2,602,987 $ 230,058,905 15,912,548 $ 214,146,357 590,931,959 150,072,323 $ 955,150,639 (26,100,000) 7,379,909,427 $8,308,960,066 |
$ 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 |
INVESTMENT PORTFOLIO ANALYSIS - Fair Value | JUNE 30, 1999 |
JUNE 30, 1998 |
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 |
$1,081,840,850 476,507,428 43,324,091 10,802,791 3,946,786,728 34,850,689 25,085,532 1,714,207,025 216,350,722 355,128,394 421,186,286 442,111 0 $8,326,512,647 |
$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 |
OPERATING EXPENSES | FY 1999 |
FY 1998 |
Personal Services
Rent and Utilities Audit Other External Support: Custody Consulting and Professional Investment Advisors/Managers Investment Services and Research Total Operating Expenses |
$ 1,139,998 78,483 76,637 125,207 300,000 314,565 13,768,836 108,822 $15,912,548 |
$ 883,220 75,933 77,850 130,523 300,068 252,255 13,272,314 99,202 $15,091,365 |
SUPPLEMENTARY INFORMATION | FY 1999 |
FY 1998 |
Compounded Annual Rate of
Return, Since July 1, 1982 Total Time Weighted Return on Investments, FY99 Average Number of System Employees Total Brokerage Commissions Paid |
13.3% 12.9% 11 $5,587,069 |
13.4% 18.1% 11 $3,471,181 |
EXECUTIVE DIRECTOR | ||
During Audit Period: Jane R. Patterson Currently: Jane R. Patterson |
Employees and Board members were reimbursed actual meal expenses
Approvals for lodging exceptions were not received in 3 instances
Travel outside the United States was not approved by the Travel Control Board
Employees received commuting mileage to airport |
INTRODUCTION This digest covers our compliance audit of the Board for the year ended June 30, 1999. A financial audit covering the year ending June 30, 1999 is being issued separately. FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS TRAVEL POLICIES During our audit testwork we noted the Board was not complying with travel control board rules and regulations. Our review of the State statutes determined that Board members should be following the rules and regulations of the Legislative Travel Control Board, and Board employees should be following the rules and regulations of the Governors Travel Control Board. We noted the following instances of non-compliance with the Governors Travel Control Board (GTCB) and the Legislative Travel Control Board (LTCB) (collectively referred to as Travel Control Boards):
Board officials indicated they were of the opinion they were not subject to either of the travel control boards rules and regulations. (Finding 1, pages 8-9) We recommended the Board follow the Governors Travel Control Board rules and regulations for employee related travel and the Legislative Travel Control Board rules and regulations for Board member related travel. Board officials responded that they have never concluded that Board members or employees are subject to the jurisdiction of either travel control board, but will investigate this issue further. In follow-up to the Boards response we strongly recommended that it take the steps needed to come into compliance with travel control board rules and regulations. We further recommended that, after reviewing applicable laws, if the Board is still unclear about what rules and regulations it should be following, the Board should request an opinion on the matter from the Attorney General. Ms. Jane R. Patterson, Executive Director, provided the response to our recommendation on December 18, 1999. ____________________________________ WILLIAM G. HOLLAND, Auditor General WGH:RPU:pp SPECIAL ASSISTANT AUDITORS KPMG, LLP were our special assistant auditors for this audit. |