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REPORT DIGEST OFFICE OF THE STATE TREASURER COLLEGE SAVINGS PROGRAM FINANCIAL AUDIT For the Year Ended: June 30, 2006 Release Date: December 12, 2006
State of Illinois Office of the Auditor General WILLIAM G. HOLLAND AUDITOR GENERAL
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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 and Report
Digest are also available on the worldwide web at http://www.state.il.us/auditor |
INTRODUCTION The 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.
Participants of the Program have a choice of two Section 529
investment programs, the Bright Start College Savings Program, which
commenced operations on March 27, 2000, and the Bright Directions College Savings
Program, which commenced operations on November 18, 2005. The State Treasurer selected an investment
firm (Manager), one for Bright Start and one for Bright Directions, 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 Managers act as agents of the
Treasurer, and as trustees 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 College Savings
Program Division”. The revenues and
expenditures of the Division are recorded in a fund maintained by the
Treasurer entitled College Savings Program Administrative Trust Fund, which
is classified as an enterprise fund.
The administrative expenditures paid out of this fund were $632,504 in
FY06 and $525,781 in FY05. 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, 2006, assets in this fund
totaled $1,845,567,136. AUDITORS' OPINION
Our special assistant
auditors stated that the College Savings Program financial statements, as of
and for the year ended June 30, 2006 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 Crowe Chizek and Company LLC.
Expenditures and Activity Measures are summarized on the reverse page.} |
