State of Illinois Office of the Treasurer, The Illinois Funds Financial Audit

              Office of the Auditor General, Iles Park Plaza, 740 E. Ash St., Springfield, IL 62703 • Tel: 217-782-6046 or TTY 888-261-2887
This Report Digest and a Full Report are also available on the internet at www.auditor.illinois.gov
OFFICE OF THE TREASURER –
THE ILLINOIS FUNDS
Financial Audit
For the Year Ended: June 30, 2011
Summary of Findings:
Total this audit:
Total last audit:
Repeated from last audit:
0
0
0
Release Date: March 6, 2012
SYNOPSIS
This digest covers the financial statement audit of the Office of the Treasurer - The Illinois Funds for the year ended June 30, 2011.
The Illinois Funds was established under the name Illinois Public Treasurers’ Investment Pool (IPTIP) in 1976 to supplement and enhance the investment opportunities available to custodians of public agency funds throughout the State of Illinois. The management, custodianship and operation of The Illinois Funds are under the supervision of the Office of the Treasurer – State of Illinois.
To administer the Illinois Funds, the Treasurer has established a division entitled “The Illinois Funds Administrative Office”. The revenues and expenditures of the Division were recorded in a fund maintained by the Treasurer entitled “The Illinois Funds Administrative Trust Fund”.
An investment trust fund is used to account for assets held by The Illinois Funds in a trustee capacity for public treasurers throughout the State of Illinois. The custodian for this fund is U.S. Bank of Illinois.
AUDITORS’ OPINION
The auditors stated the financial statements of the Office of the Treasurer - The Illinois Funds as of June 30, 2011, and for the year then ended, are fairly stated in all material respects.
___________________________________
WILLIAM G. HOLLAND, Auditor General
WGH:RPU:rt
SPECIAL ASSISTANT AUDITORS
Our special assistant auditors for this audit were McGladrey & Pullen LLP.
{Financial data and activity measures are summarized on the next page.}2
STATEMENTS OF FIDUCIARY NET ASSETS
ASSETS:
Repurchase Agreements.......................................................................
2,275,016,285$
2,375,001,167$
Commercial Paper ...............................................................................
1,574,636,980
1,724,816,062
Certificates of Deposit..........................................................................
14,198,301
44,236,504
Money Market Mutual Funds...............................................................
557,065,102
562,002,301
U.S. Treasury Bills ..............................................................................
499,869,508
-
U.S. Treasury Notes ............................................................................
226,651,069
-
U.S. Agency Obligations:
- Federal Home Loan Bank Debentures.........................................
50,000,000
324,998,427
- Federal Home Loan Mortgage Corporation Discount Notes.......
51,368,188
74,990,243
- Federal Home Loan Bank Discount Notes...................................
49,999,889
-
- Federal National Mortgage Association Discount Notes.............
274,873,417
149,991,722
- Federal Agriculture Mortgage Corporation Notes.......................
-
60,000,000
- Federal Agriculture Mortgage Corporation Discount Notes........
-
24,965,000
- Federal Deposit Insurance Corporation Guaranteed
Floating Rate Notes.................................................................
-
25,000,000
Accrued Interest Receivable................................................................
799,406
475,515
Total Assets.............................................................................
5,574,478,145$
5,366,476,941$
LIABILITIES AND NET ASSETS:
Bank Custodial Fees Payable...............................................................
151,078$
143,064$
State Management Fees Payable..........................................................
234,004
260,345
Total Liabilities ......................................................................
385,082$
403,409$
Net Assets Available to Participants....................................................
5,574,093,063$
5,366,073,532$
STATEMENTS OF CHANGES IN FUDICIARY NET ASSETS
FY 2011
FY 2010
REVENUE: Investment Earnings....................................................
11,374,999$
11,840,855$
EXPENSES: Bank Custodial Fees.....................................................
1,793,867$
1,752,116$
State Management Fees................................................
3,226,341
3,196,903
Total Expenses.........................................................
5,020,208$
4,949,019$
Net Investment Earnings / Dividends to Shareholders.........................
6,354,791$
6,891,836$
Share Transactions: Subscriptions......................................................
20,171,505,496$
18,352,916,349$
Reinvestments....................................................
6,354,492
6,902,854
Redemptions.......................................................
(19,969,840,457)
(19,028,029,078)
Increase / (Decrease) in Net Assets Available to Participants.............
208,019,531$
(668,209,875)$
Net Assets Available to Participants, Beginning of Year....................
5,366,073,532
6,034,283,407
Net Assets Available to Participants, End of Year...............................
5,574,093,063$
5,366,073,532$
SELECTED ACTIVITY MEASURES
FY 2011
FY 2010
Total Number of Participants...............................................................
2,303
2,280
Number of State of Illinois Participants...............................................
30
29
Balance of State of Illinois Investments, end of year...........................
1,314,336,467$
1,414,512,872$
Number of Employees, full time equivalents.......................................
25
27
During Engagement Period: Honorable Alexi Giannoulias (ending 1-10-11), Honorable Dan Rutherford
(beginning 1-10-11)
Currently: Honorable Dan Rutherford
OFFICE OF THE TREASURER - THE ILLINOIS FUNDS
FINANCIAL AUDIT
For The Year Ended June 30, 2011
TREASURER
June 30, 2010
June 30, 2011