REPORT DIGEST

SOUTHERN ILLINOIS UNIVERSITY EDWARDSVILLE FOUNDATION

FINANCIAL AUDIT

For the Year Ended:

June 30, 2004

Release Date:

 January 27, 2005

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 is also available on

the worldwide web at

http://www.state.il.us/auditor

INTRODUCTION

      This digest covers our financial audit of the Foundation for the year ended June 30, 2004.  A compliance audit covering the two years ended June 30, 2005 will be issued at a later date.

AUDITORS’ OPINION

      Our auditors stated the June 30, 2004 financial statements of the Foundation are fairly presented in all material respects.

___________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:KAL:pp

SPECIAL ASSISTANT AUDITORS

      Kerber, Eck & Braeckel LLP were our special assistant auditors for this engagement.

FINANCIAL OPERATIONS (All Funds)

FY 2004

FY 2003

REVENUES

      Operating revenues........................................................

$1,077,473

$1,195,139

EXPENSES

      Operating expenses.......................................................

$2,767,097

$3,702,614

            Operating income (loss)...........................................

($1,689,624)

($2,507,475)

NONOPERATING REVENUES (EXPENSES)

Contributions.......................................................................

$3,041,074

$2,845,699

Transfers from SIU..............................................................

$0

$285,150

Net investment income (loss)................................................

$984,869

$397,433

Increase (decrease) in allowance for uncollectibles................

$12,712

($30,917)

Increase (decrease) in present value-interest in trusts............

$140,309

($355,111)

Bond interest expense..........................................................

($75,488)

($97,233)

Grants to other organizations................................................

($4,750)

$0

Payments to annuitants.........................................................

($47,887)

($2,455)

Loss on sale of assets held for resale....................................

($41,146)

($349,014)

Other nonoperating revenues (expenses)..............................

$386

($4,357)

      Net nonoperating revenues.............................................

$4,010,079

$2,689,195

      Income before other revenues, expenses, gains or losses

$2,320,455

$181,720

Additions to permanent endowments....................................

$883,972

$454,447

      Increase in net assets.....................................................

$3,204,427

$636,167

NET ASSETS

Net Assets – beginning of year.............................................

$16,764,739

$16,128,572

Net Assets – end of year.....................................................

$19,969,166

$16,764,739

OTHER SIGNIFICANT ACCOUNT BALANCES

AT JUNE 30,

2004

AT JUNE 30,

2003

Cash, Deposits, and Investments..................................

Total Assets..............................................................

Revenue Bonds Payable..............................................

Total Liabilities.........................................................

Net Assets – Invested in capital assets.........................

Net Assets – Restricted...............................................

Net Assets – Unrestricted............................................

Total Net Assets.......................................................

$14,343,416

$22,520,638

$1,650,000

$2,551,472

$586,444

$17,840,783

$1,541,939

$19,969,166

$12,637,702

$19,198,565

$1,650,000

$2,433,826

$648,799

$14,876,237

$1,239,703

$16,764,739

EXECUTIVE DIRECTOR

During the audit:  Mr. G. Patrick Williams

Currently:  Mr. G. Patrick Williams