REPORT DIGEST

OFFICE OF THE

STATE TREASURER

BRIGHT START COLLEGE SAVINGS PROGRAM

FINANCIAL AUDIT

For the Year Ended:

June 30, 2004

Release Date:

February 10, 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

      The Bright Start College Savings Program (Program) was established in March 2000 pursuant to P.A. 91-0607 which authorized the State Treasurer to establish and administer a "qualified state tuition program" under Section 529 of the Internal Revenue Code of 1986, as amended.  The State Treasurer selected an investment firm (Manager) to advise the office on the investment of the Trust assets, to administer the Trust assets, and to provide other services relating to the Program.  As such, the Manager acts as agent of the Treasurer, and as trustee of the Trust.  The Treasurer, however, retains ultimate authority to manage the investments of the Trust. 

      To administer the Program, the Treasurer has established a division entitled "The Bright Start College Savings Program Administrative Office."  The revenues and expenditures of the Division are recorded in a fund maintained by the Treasurer entitled The Bright Start College Savings Program Administrative Trust Fund, which is classified as an enterprise fund.

      An investment trust fund was used to account for assets held by the Program in a trustee capacity or as agent for individuals throughout the United States.  At June 30, 2004, assets in this fund totaled $1,063,447,366.

AUDITORS' OPINION

      Our special assistant auditors stated that The Bright Start College Savings Program financial statements, as of and for the year ended June 30, 2004 are fairly stated in all material respects.

___________________________________

WILLIAM G. HOLLAND, Auditor General

            WGH:JSC:pp

SPECIAL ASSISTANT AUDITORS

    Our special assistant auditors for this audit were Kerber, Eck & Braeckel LLP.

Expenditures and Activity Measures are summarized on the reverse page.}

STATEMENTS OF FIDUCIARY NET ASSETS

FY 2004

FY 2003

STATEMENT OF FIDUCIARY NET ASSETS

Cash and Cash Equivalents............................................................

Dividends Receivable....................................................................

Mutual Funds................................................................................

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

Payable for Securities Purchased..................................................

Insurance Fees.............................................................................

Advisory Fees.............................................................................

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

Net Assets....................................................................................

            Total Liabilities and Net Assets.........................................

STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS

Operations

   Investment Earnings....................................................................

   Gain (Loss) on Sale of Securities.................................................

   Net Change in Fair Value of Investments (Unrealized)................

   Insurance Fees........................................................................

   Bank Custodial Fees...............................................................

            Net Investment Earnings....................................................

Changes in Net Assets

   Program Contributions...........................................................

   Program Distributions.............................................................

            Net Changes in Net Assets.........................................

Net Increase in Net Assets............................................................

Net Assets, beginning of year......................................................

Net Assets, end of year.................................................................

        $2,506,173

          3,137,635

   1,057,803,558

 $1,063,447,366

        $2,764,182

              14,861

             274,128

          3,053,171

   1,060,394,195

 $1,063,447,366

      $13,586,611

            (14,611)

        97,658,492

            (50,022)

       (2,706,398)

      108,474,072

      523,364,859

    (198,822,623)

      324,542,236

      433,016,308

      627,377,887

  $1,060,394,195

$2,176,608

1,260,662

625,197,015

$628,636,285

$1,084,562

              8,492

          165,344

         1,258,398

627,377,887

      $628,636,285

          $7,722,773

(32,082,021)

68,370,213

(18,255)

(1,306,311)

42,686,399

        359,461,982

(99,180,013)

260,281,969

        302,968,368

324,409,519

$627,377,877

SELECTED ACTIVITY MEASURES

FY 2004

FY 2003

Custodial/Advisory Fees...............................................................

Administrative Expenditures..........................................................

Number of Employees..................................................................

$2,706,398

$538,339

4

$1,306,311

$327,705

4

STATE TREASURER

During Audit Period:  Honorable Judy Baar Topinka

Currently:  Honorable Judy Baar Topinka