REPORT DIGEST

 

STATE UNIVERSITIES RETIREMENT SYSTEM

 

COMPLIANCE EXAMINATION

For the Year Ended:

June 30, 2007

 

Summary of Findings:

Total this audit†††††††††††††     0

Total prior audit                1

Repeated from last audit   0

 

Release Date:

April 30, 2008

 

 

 

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 Full Report are available on

the worldwide web at

www.auditor.illinois.gov

 

 

INTRODUCTION

 

††††† This digest covers our compliance examination of the System for the year ended June 30, 2007.A financial audit covering the year ended June 30, 2007 was issued separately.There were no material findings of noncompliance disclosed during our testing.

 

FUNDING LEGISLATION

 

††††† Public Act 94-0004 became law June 1, 2005 and affected the System by modifying several retirement benefit calculations for fiscal year 2006 and beyond.In addition, the Act also established specific dollar amounts to be contributed by the State for fiscal years 2006 and 2007, as opposed to the State contribution being calculated based on the existing funding formula.State required contributions will be higher in future years to make up for the two-year funding reduction.

 

AUDITORSí OPINION

†††††

††††† We conducted a compliance examination of the System for the year ended June 30, 2007 as required by the Illinois State Auditing Act.A financial audit covering the year ending June 30, 2007 was issued separately.

 

 

 

___________________________________

WILLIAM G. HOLLAND, Auditor General

 

WGH:KMA:pp

 

SPECIAL ASSISTANT AUDITORS

 

††††† BKD, LLP were our special assistant auditors.

 

 

 

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

 

 

 

 


STATE UNIVERSITIES RETIREMENT SYSTEM

COMPLIANCE EXAMINATION

Year Ended June 30, 2007

 

FINANCIAL OPERATIONS (All Funds)

FY 2007

FY 2006

Revenues

††††† Contributions

††††††††††† Participants..............................................

††††††††††† Employer..................................................

††††††††††††††††† Total Contributions..............................

††††† Investment Income

††††††††††† Net appreciation in fair market value..........

††††††††††† Interest....................................................

††††††††††† Dividends.................................................

††††††††††† Securities lending......................................

††††††††††† Less:Investment expense.........................

††††††††††††††††† Net Investment Income.......................

††††††††††††††††††††††† Total Revenues.............................

Expenses

††††† Total benefits..................................................

††††† Other expenses...............................................

††††††††††††††††††††††† Total Expenses.............................

Excess of Revenues over Expenses.......................

 

 

†††††††††† $303,992,601

†††††††††††† 294,451,464

†††††††††† $598,444,065

 

††††††† $2,249,927,509

†††††††††††† 225,548,765

†††††††††††† 155,508,304

††††††††††††††† 4,958,036

†††††††††††† (38,111,626)

††††††† $2,597,830,988

††††††† $3,196,275,053

 

††††††† $1,180,574,674

††††††††††††† 65,112,023

††††††† $1,245,686,697

††††††† $1,950,588,356

 

 

 

†††††††††† $292,392,188

†††††††††††† 209,651,367

†††††††††† $502,043,555

 

††††††† $1,281,932,946

†††††††††††† 183,792,025

†††††††††††† 126,245,756

††††††††††††††† 4,525,486

†††††††††††† (29,685,842)

††††††† $1,566,810,371

††††††† $2,068,853,926

 

††††††† $1,086,565,418

††††††††††††† 63,584,559

††††††† $1,150,149,977

†††††††††† $918,703,949

INVESTMENT PORTFOLIO ANALYSIS (Fair Market Value)

JUNE 30, 2007

JUNE 30, 2006

Equities ..............................................................

Fixed income........................................................

Real estate...........................................................

Self-managed plan funds.......................................

††††† Total Portfolio at Fair Market Value.................

†††††† $10,242,225,544

††††††††† 5,180,583,996

†††††††††††† 328,033,841

†††††††††††† 533,000,506

†††††† $16,283,843,887

 

††††††† $9,692,422,530

††††††††† 3,816,079,807

†††††††††††† 131,569,925

†††††††††††† 405,332,778

†††††† $14,045,405,040

INVESTMENTS USED FOR BENEFITS AND EXPENSES

(Defined Benefit Plan)

FY 2007

FY 2006

Contributions

††††† Participants ....................................................

††††† State of Illinois................................................

††††† Federal/Trust and other sources.......................

††††††††††† Total Contributions....................................

Deductions

††††† Benefits.........................................................

††††† Refunds.........................................................

††††† Administrative Expenses.................................

††††† Bond Interest Expense....................................

††††††††††† Total Deductions.......................................

Investments Used to Pay Benefits and Expenses....

 

†††††††††† $262,350,838

†††††††††††† 224,064,475

††††††††††††† 37,078,160

†††††††††† $523,493,473

 

††††††† $1,177,348,076

††††††††††††† 41,353,881

††††††††††††† 11,704,567

†††††                     

††††††† $1,230,406,524

††††††††† $(706,913,051)

 

 

†††††††††† $252,921,802

†††††††††††† 142,196,464

††††††††††††† 37,821,618

†††††††††† $432,939,884

 

††††††† $1,085,383,795

††††††††††††† 42,620,200

††††††††††††† 11,982,284

†††††††††††††††††† 179,640

††††††† $1,140,165,919

††††††††† $(707,226,035)

SUPPLEMENTARY INFORMATION

FY 2007

FY 2006

Total investment administrative expenses................

Investment return (unaudited)................................

Average number of employees (unaudited).............

Number of active members...................................

Number of inactive members.................................

Number of retirement benefit recipients..................

Number of survivors benefit recipients...................

Number of disabilities benefit recipients..................

$37,104,488

18.3%

120.10

81,691

75,261

35,200

6,958

849

$28,813,142

11.7%

121.30

80,869

72,606

33,574

6,807

864

EXECUTIVE DIRECTOR

 

 

During Examination Period:Dan M. Slack

Currently:Dan M. Slack