Annual Report PDF file 2009 - State of Illinois

INDEPENDENT AUDITORS’ REPORTHonorable William G. HollandAuditor GeneralState of IllinoisBoard of DirectorsIllinois State Board of Investment:As Special Assistant Auditors for the Auditor General, we have audited the accompanying statements of net assets of the IllinoisState Board of Investment (Board), an internal investment pool of the State of Illinois, as of June 30, 2009 and June 30, 2008,and the related statements of changes in net assets for the years then ended, as listed in the table of contents. These financialstatements are the responsibility of the Board’s management. Our responsibility is to express opinions on these financialstatements based on our audit.We conducted our audit in accordance with auditing standards generally accepted in the United States of America and thestandards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of theUnited States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free of material misstatement. An audit includes consideration of internal control over financial reportingas a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the Board’s internal control over financial reporting. Accordingly, we express no such opinion. Anaudit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significant estimates made by management, as well as evaluatingthe overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.As discussed in Note 1, the financial statements present only the Board and do not purport to, and do not present fairly thefinancial position of the State of Illinois as of June 30, 2009 and June 30, 2008, and the changes in its financial position for theyears then ended in conformity with accounting principles generally accepted in the United States of America.In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the IllinoisState Board of Investment as of June 30, 2009 and June 30, 2008, and the changes in its net assets for the years then ended, inconformity with accounting principles generally accepted in the United States of America.In accordance with Government Auditing Standards, we have also issued, under separate cover, our report dated January 20,2010 on our consideration of the Board’s internal control over financial reporting and on our tests of its compliance with certainprovisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe thescope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to providean opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed inaccordance with Government Auditing Standards and should be considered in assessing the results of our audit.The accompanying management’s discussion and analysis on pages 12 and 13 is not a required part of the basic financialstatements but is supplementary information required by accounting principles generally accepted in the United States ofAmerica. We have applied certain limited procedures, which consisted principally of inquiries of management regarding themethods of measurement and presentation of the required supplementary information. However, we did not audit the informationand express no opinion on it.Chicago, IllinoisJanuary 20, 2010McGladrey & Pullen, LLP is a member firm of RSM International,an affiliation of separate and independent legal entities.1ILLINOIS STATE BOARD OF INVESTMENT11