REPORT DIGEST

 

 

OFFICE OF THE

STATE TREASURER

COLLEGE SAVINGS PROGRAM

 

 

FINANCIAL AUDIT

For the Year Ended:

June 30, 2008

 

 

 

Release Date:

April 2, 2009

 

 

 

 

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 the Full Report are also available on

the worldwide web at

http://www.auditor.illinois.gov

 

 

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 $1,210,380 in FY08 and $648,763 in FY07.

 

      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, 2008, assets in this fund totaled $2,798,368,478.

 

AUDITORS' OPINION

 

      Our special assistant auditors stated that the College Savings Program financial statements, as of and for the year ended June 30, 2008 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 Horwath LLP.

 

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


 

 

 

OFFICE OF THE STATE TREASURER

BRIGHT START COLLEGE SAVINGS PROGRAM

FINANCIAL AUDIT

For Year Ending June 30, 2008

 

STATEMENTS OF FIDUCIARY NET ASSETS

FY 2008

FY 2007

STATEMENT OF FIDUCIARY NET ASSETS

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

Capital Shares, Securities Sold and Dividends Receivable...............................

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

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

Cash overdraft..........................................................................................................

Payable for capital shares.......................................................................................

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

Other liabilities..........................................................................................................

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

Net Assets available to participants.....................................................................

                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)……………………..

   Interest expense....................................................................................................

   Distribution fees....................................................................................................

   State administrative fees......................................................................................

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

   12b-1 Fees..............................................................................................................

   Management and Bank Custodial Fees.............................................................

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

 

Distribution to Shareholders – Net Investment Income....................................

 

Participant Transactions

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

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

   Distributions Reinvested.....................................................................................

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

 

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

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

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

 

$81,605,550

7,218,048

 2,709,544,880

$2,798,368,478

$218,215

3,804,496

3,068,481

459,220

7,550,412

2,790,818,066

$2,798,368,478

 

 

 

$73,053,355

(16,775,795)

(270,349,702)

(5,471)

(2,510,242)

(660,879)

(107,407)

(981,487)

(5,358,655)

(223,696,283)

 

(274,998)

 

 

1,399,546,594

(910,603,851)

         274,489

489,217,232

 

265,245,951

2,525,572,115

$2,790,818,066

 

$92,123,753

15,885,499

 2,424,616,587

$2,532,625,839

$0

0

6,204,756

848,968

7,053,724

 2,525,572,115

$2,532,625,839

 

 

 

$51,849,943

84,430,962

165,183,577

0

0

0

(99,110)

(396,403)

(7,172,979)

293,795,990

 

(144,585)

 

 

1,024,933,987

(635,412,175)

         135,637

389,657,449

 

683,308,854

1,842,263,261

$2,525,572,115

 

SELECTED ACTIVITY MEASURES (Unaudited)

FY 2008

FY 2007

Number of Illinois Participants (Bright Start).......................................................

Balance of Illinois Participants (Bright Start).......................................................

Number of Non-Illinois Participants (Bright Start)..............................................

Balance of Non-Illinois Participants (Bright Start)..............................................

Number of Illinois Participants (Bright Directions).............................................

Balance of Illinois Participants (Bright Directions).............................................

Number of Out of State Participants (Bright Directions)...................................

Balance of Out of State Participants (Bright Directions)...................................

128,018

$1,833,635,882

41,036

$579,877,664

33,449

$355,903,638

1,410

$22,232,202

106,234

$1,712,534,254

38,464

$575,323,468

19,956

$226,916,263

617

$10,772,577

 

STATE TREASURER

 

During Audit Period:  Honorable Alexi Giannoulias

Currently:  Honorable Alexi Giannoulias