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Business and Financial Policies and Procedures

1.1.3 How the University Compiles its Annual Financial Report

The University of Illinois System is subject to and complies with the reporting requirements mandated by the  State Comptroller Act (15 ILCS 405/19.5). This requires that financial reports are prepared using accounting principles generally accepted in the United States, as prescribed by the Governmental Accounting Standards Board (GASB), which establishes standards for external financial reporting for public colleges and universities. The reports must be published so the public and members of groups responsible for the system's support have necessary information about its financial affairs. The system's Annual Financial Report also provides information helpful in evaluating how resources are managed to attain the system's goals.

The Annual Financial Report presents the system's financial activities for the fiscal year which ends on June 30. The report covers the annual operating activity for the entire fiscal year and the financial position at the end of the fiscal year. It also includes information from the prior year for comparison.

The report contains basic financial statements, supplementary schedules, and the independent auditor's opinion of these statements issued by the Special Assistant Auditors for the State Auditor General. It also contains an aggregate financial statement that presents university-related organizations (UROs) as defined in the Legislative Audit Commission Guidelines, in a separate column as components of the University of Illinois.

The Annual Financial Report is compiled from system accounting records, which are maintained using fund accounting principles. The system's financial statements consolidate all university and administrative activities to present the system's financial position as a whole.

Components of the University Annual Financial Report

Basic Financial Statements

Statement of Net Position - Reports the financial position of the system at the end of the fiscal year, which includes all its assets and liabilities using the accrual basis of accounting.

Statement of Revenues, Expenses, and Changes in Net Position - Reports the system's revenues, expenses, and resulting change in net position for the fiscal year.

Statement of Cash Flows - Reports the major sources and uses of cash during the fiscal year.

Supplementary Materials
Schedules, notes, and materials that provide details in support of the basic financial statements.

Independent Auditor’s Report A statement by the external auditors that they have reviewed the basic financial statements and determined that they are fairly presented in accordance with Generally Accepted Accounting Principles (GAAP).

Other separate institutional reports, as required by law or bond indentures, are also published and distributed.

Additional Resources

University Accounting Fund Types
University of Illinois Annual Financial Reports
Legislative Audit Commission Guidelines

Last Updated: March 28, 2019 | Approved: Senior Associate Vice President for Business and Finance | Effective: July 5, 2016

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