INDEPENDENT AUDITORS’ REPORT
The Board of Trustees of
The University of Cincinnati
We have audited the accompanying statements of net assets of the University of Cincinnati (the “University”), a
component unit of the State of Ohio, as of June 30, 2008 and 2007 and the related statements of revenues, expenses and
changes in net assets and of cash flows for the years then ended. These financial statements are the responsibility of the
University’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We did not audit the financial statements of the University of Cincinnati Foundation, a discretely presented component
unit. Those financial statements were audited by other auditors whose report has been furnished to us, and our opinion,
insofar as it relates to the amounts included for the University of Cincinnati Foundation, is based solely on the report of
such other auditors.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the University’s internal control over financial reporting. Accordingly, we express no such opinion.
An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audits and the reports
of other auditors provide a reasonable basis for our opinion.
In our opinion, based on our audits and the reports of the other auditors, such financial statements present fairly, in all
material respects, the financial position of the University as of June 30, 2008 and 200 7 , and the results of its operations
and its cash flows (where applicable) for the years then ended in conformity with accounting principles generally
accepted in the United States of America.
As discussed in Note 1C to the financial statements, the financial statements include investments valued at $416 million
(22% of net assets) and $437 million (22% of net assets) as of June 30, 2008 and 2007, respectively, whose fair values
have been estimated by management in the absence of readily determinable fair values. Management's estimates are
based on information provided by the fund managers or the general partners.
As discussed in Note 12 to the financial statements, the University has a 29.12% equity interest in the Health Alliance of
Greater Cincinnati (the “Alliance”) as a participating entity and has included such $389,446,000 equity investment in
other long-term investments as of June 30, 2008 in the Statement of Net Assets. During 2006 certain other Alliance
participating entities delivered notices to the Alliance of their intention to terminate their participation in the Alliance.
During 2007, it was entered in the Court of Common Pleas of Hamilton County, Ohio that these certain entities have the
right to terminate their participation in the Alliance. No amounts have been reflected in the financial statements related to
such litigation matter as the amounts are not determinable.
Management’s Discussion and Analysis on pages 9–20 is not a required part of the basic financial statements but are
supplementary information required by Governmental Accounting Standards Board. The supplementary information is
the responsibility of the University’s management. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the supplementary
information. However, we did not audit the information and express no opinion on it.
October 13, 2008