REPORT DIGEST

UNIVERSITY OF ILLINOIS FOUNDATION

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

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 also available on

the worldwide web at

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

AUDITORS’ OPINION

      Our auditors stated the Foundation’s June 30, 2006 financial statements are fairly presented in all material respects.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:TLK:pp

SPECIAL ASSISTANT AUDITORS

      Our special assistant auditors were Clifton Gunderson LLP.

FINANCIAL OPERATIONS (All Funds) (in thousands)

FY 2006

FY 2005

OPERATING REVENUES.................................................

OPERATING EXPENSES...................................................

      Operating loss...................................................................

NONOPERATING REVENUES (EXPENSES)

      Net investment income.......................................................

      Net increase in fair value of investments..............................

      Interest on indebtedness.....................................................

            Net nonoperating revenues (expenses).........................

            Income before other revenues, expenses, gains ............             and losses....................................................................

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

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

NET ASSETS

      Net Assets - beginning of year...........................................

      Net Assets - end of year....................................................

$140,930

$148,383

$(7,453)

$7,294

84,816

(396)

$91,714

$84,261

31,397

$115,658

$934,873

$1,050,531

$120,668

$141,143

$(20,475)

$3,175

65,700

(228)

$68,647

$48,172

24,445

$72,617

$862,256

$934,873

OTHER SIGNIFICANT ACCOUNT BALANCES

      (in thousands)

At June 30,

2006

At June 30,

2005

Cash and Investments..............................................................

Farms and Real Estate.............................................................

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

Accounts Payable....................................................................

Annuities Payable....................................................................

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

Net Assets - Restricted - Nonexpendable................................

Net Assets - Restricted - Expendable......................................

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

$1,054,834

$26,021

$1,157,330

$40,833

$51,690

$106,799

$703,487

$328,947

$1,050,531

$932,959

$22,601

$1,028,183

$25,781

$50,043

$93,310

$631,778

$286,911

$934,873

FOUNDATION PRESIDENT

During Audit Period:  Dr. Sidney Micek

Currently:  Dr. Sidney Micek