WILLIAM G. HOLLAND

AUDITOR GENERAL

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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

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

INTRODUCTION

Our report covers the financial audit for the period ending June 30, 2006. A compliance examination covering the year ending June 30, 2006 will be issued at a later date.

AUDITORS' OPINION

Our auditors stated the University’s financial statements at June 30, 2006 and for the year then ended are fairly presented in all material respects.

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WILLIAM G. HOLLAND, Auditor General

WGH:TLK:pp

SPECIAL ASSISTANT AUDITORS

Our special assistant auditors were E.C. Ortiz & Co., LLP.

{Financial Information is summarized on the reverse page.}

NORTHEASTERN ILLINOIS UNIVERSITY

FINANCIAL AUDIT

For The Year Ended June 30, 2006

STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS	FY 2006	FY 2005
OPERATING REVENUES............................................................................ Student tuition and fees (net of scholarship allowances)................... Grants and contracts................................................................................. Auxiliary enterprises............................................................................... Other operating revenues........................................................................ Total Operating Revenues............................................................... OPERATING EXPENSES Instruction.................................................................................................. Research..................................................................................................... Public service............................................................................................. Academic support..................................................................................... Student services and programs............................................................... Institutional support................................................................................. Operation and maintenance of plant...................................................... Scholarships and fellowships.................................................................. Auxiliary enterprises................................................................................. Depreciation............................................................................................... Other operating expenses........................................................................ Total Operating Expenses............................................................... Operating loss............................................................................................... NONOPERATING REVENUES (EXPENSES) State Appropriations.............................................................................. Payments on behalf of the University................................................. Investment income................................................................................. Interest on indebtedness....................................................................... Other nonoperating revenue................................................................. Net nonoperating revenues.................................................................. Loss before other revenues, expenses, gains and losses................ Capital additions provided by State of Illinois................................... Gain (loss) on disposal of capital assets............................................. DECREASE IN NET ASSETS..................................................................... Net assets, beginning of year................................................ Net assets, end of year.........................................................	$32,821,397 26,583,227 3,297,405 2,664,272 $65,366,301 $40,342,794 158,458 15,223,591 6,435,117 8,233,391 28,299,628 10,097,128 4,905,792 2,481,931 4,169,179 1,607,214 $121,954,223 ($56,587,922) $39,168,216 16,207,855 557,334 (1,180,342) 686,370 $55,439,433 ($1,148,489) 616,636 10,908 ($520,945) 87,966,561 $87,445,616	$28,186,112 26,539,428 3,090,323 2,054,402 $59,870,265 $38,387,677 178,153 15,604,667 6,080,010 7,534,838 30,171,195 9,997,060 4,824,937 2,378,313 3,563,528 210,638 $118,931,016 ($59,060,751) $39,203,830 17,437,422 385,046 (995,779) 170,000 $56,200,519 ($2,860,232) 2,910,331 (142,313) ($92,214) 88,058,775 $87,966,561
SELECTED ACCOUNT BALANCES	JUNE 30, 2006	JUNE 30, 2005
Cash and short-term investments................................................................ Investments..................................................................................................... Capital Assets (net), including construction in progress........................ Accrued compensated absences................................................................. Revenue Bonds Payable............................................................................... Certificates of participation, (net)................................................................	$17,927,257 10,012,835 104,213,544 11,251,004 21,420,000 14,967,290	$9,729,214 8,797,555 100,919,267 11,553,035 21,730,000 0
UNIVERSITY PRESIDENT
During Audit Period: Dr. Salme H. Steinberg
Currently: Dr. Salme H. Steinberg

WILLIAM G. HOLLAND

FY 2005

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

OPERATING EXPENSES

DECREASE IN NET ASSETS.....................................................................