UNIVERSITY OF CINCINNATI JUNE 30, 2 008
FINANCIAL HIGHLIGHTS
The University has worked diligently over the past several years targeting improved financial health including
increasing liquidity and strengthening operations. Increases in liquidity have been primarily achieved through
implementation of the University’s operating cash policy. The policy identified structural measures to restore cash
balances that includes balancing all University accounts through the budget process, no new deficit funds permitted
without the express approval of the Vice President for Finance in consultation with the appropriate Sr. Vice President,
disciplined payoff of existing funds that are in deficit position, scaled down, deferred or canceled capital projects, and
concentration on receivables management. Operations have been strengthened through increased student tuition
and fees as a result of increased enrollment, increased revenues related to auxiliary enterprises, increased state
appropriations, and containing costs. Notable improvements in these areas are evidenced below:
- Cash, cash equivalents, and investments (excluding endowment investments and other long-term
investments) increased by $48 million (36%) for 2008 and $46 million (51%) for 2007 reflecting a distinct
improvement in liquidity. - The deficit for unrestricted net assets decreased by $62 million in 2008 and increased by $22 million in
2007. The decrease in 2008 is primarily the result of the implementation of the University’s operating cash
policy that was established in November 2006. See also the net assets section herein. - Over the past 2 years operating revenues have steadily increased. In 2008 and 2007, operating revenues
increased by $29 million and $35 million, respectively. - Due to cost containment and avoidance efforts, operating expenses were limited to an increase of $6.0
million (.6%) in 2008 and reduced by $2.0 million (-.2%) in 2007. - Non-operating revenues and expenses, when excluding any change in the fair value of investments,
increased by $41 million in 2008 and decreased by $1 million in 2007.
STATEMENT OF NET ASSETS
The statement of net assets presents the financial position of the University at the end of the fiscal year and includes
all assets and liabilities of the University using the accrual basis of accounting. Net assets represent the difference
between total assets and total liabilities, and are one indicator of the overall financial condition of the University. The
changes in net assets that occur over time indicate improvement or deterioration in the University’s financial
condition. Assets and liabilities are generally measured using current values with the exception of capital assets,
which are stated at historical cost less accumulated depreciation. A summarized comparison of the University’s
assets, liabilities and net assets at June 30 for the years 2008, 2007 and 2006 follows:
(in thousands) 2008 2007 2006
Current assets $ 207,565 $ 170,733 $ 154,435
Non-current assets:
Endowment, and other investments 1,539,372 1,597, 390 1,442,060
Capital assets, net 1,469, 215 1,470,743 1,420,479
Other 53,856 61,332 57,648
Total assets 3,270,008 3,300,198 3,074,622Current liabilities 259, 593 326,494 288,353
Non-current liabilities 1,084,900 1,002,964 920,620
Total liabilities 1,344,493 1,329,458 1,208,973Total net assets $ 1,925,515 $ 1,970,740 $ 1,865,649