REPORT DIGEST

GOVERNORS STATE UNIVERSITY

FINANCIAL AUDIT

For the Year Ended:

June 30, 2006

Release Date:

January 24, 2007

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 available on

the worldwide web at

www.auditor.illinois.gov

AUDITORS' OPINION

      Our auditors state the University’s financial statements as of June 30, 2006 and for the year then ended, are fairly presented in all material respects.  A single audit and compliance examination covering the year ended June 30, 2006 will be issued at a later date.

____________________________________

WILLIAM G. HOLLAND, Auditor General

WGH:TLK:pp

SPECIAL ASSISTANT AUDITORS

        Our special assistant auditors for this audit were Nykiel Carlin & Co., LTD.

{Financial Information is summarized on the reverse page.}

FINANCIAL OPERATIONS (CURRENT FUNDS)

FY 2006

FY 2005

OPERATING REVENUES

     Student tuition and fees (net of scholarship allowances)...................

     Grants and contracts.................................................................................

     Auxiliary enterprises.................................................................................

     Sales and services of educational departments....................................

 Other operating revenues........................................................................

             Total Operating Revenues...............................................................

OPERATING EXPENSES

     Instruction..................................................................................................

     Research.....................................................................................................

     Public service.............................................................................................

     Academic support.....................................................................................

     Student services........................................................................................

     Institutional support.................................................................................

     Operation and maintenance of plant......................................................

     Auxiliary enterprises.................................................................................

     Depreciation...............................................................................................

             Total Operating Expenses...............................................................

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

NONOPERATING REVENUES (EXPENSES)

        State Appropriations..............................................................................

        Payments on behalf of the University.................................................

        Investment income.................................................................................

        Interest on capital assets and related debt.........................................

        Other nonoperating expenses...............................................................

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

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

        Transfers from the Capital Development Board.................................

INCREASE IN NET ASSETS.......................................................................

Net assets, beginning of year.................................................

Net assets, end of year.........................................................

$17,210,033

7,578,864

1,754,631

6,644,924

486,502

$33,674,954

$29,784,579

1,063,576

9,735,440

1,780,596

4,171,088

10,084,776

6,462,158

1,855,501

     2,578,296

 $67,516,010

($33,841,056)

$25,986,100

9,056,892

496,022

(164,223)

        (77,063)

 $35,297,728

$1,456,672

  477,394

 $1,934,066

       $53,872,632

$55,806,698

$15,658,923

6,754,211

1,908,766

6,520,128

1,234,707

$32,076,735

$26,219,975

1,116,425

8,954,648

1,648,342

3,731,811

11,375,776

6,010,867

1,809,814

     2,445,624

 $63,313,282

($31,236,547)

$24,280,100

8,350,099

154,083

(122,225)

        (71,871)

 $32,590,186

$1,353,639

  628,978

 $1,982,617

       $51,890,015

$53,872,632

SELECTED ACCOUNT BALANCES (ALL FUNDS)

JUNE 30, 2006

JUNE 30, 2005

Cash, short-term investments and trust escrow..........................

Capital assets..........................................................................

Accumulated depreciation........................................................

Accrued compensated absences................................................

Certificates of participation......................................................

$13,981,655

$97,448,037

$42,164,566

$6,167,676

$1,925,000

$10,939,533

$95,106,322

$41,146,189

$6,557,435

$2,005,000

UNIVERSITY PRESIDENT

    During Audit Period and Currently:  Dr. Stuart Fagan