UNIVERSITY OF CINCINNATI JUNE 30, 2 008
Due to the changes in valuation of these assets over the last three years, actual distributions to beneficiary units were
5.6% and 5.4% of the beginning market value of these assets in 2008 and 2007, respectively.
Non-current investments increased by $20 million in 2008 reflecting additional debt proceeds borrowed to restructure
June 1, 2008 debt service payments. In 2007, non-current investments increased by $14 million reflecting additional
debt proceeds borrowed for capital projects.
Other long-term investments primarily represent the University’s equity interest in The Health Alliance of Greater
Cincinnati, valued at $389 million and $375 million in 2008 and 2007, respectively. The University and the Health
Alliance entered into an operating and affiliation agreement in 2006, under which the Alliance provides support to the
University’s Academic Health Center. Such support totaled $9 million for both 2008 and 2007 providing a return on
asset of 2.4% for both fiscal years. For further discussion of the Health Alliance, please refer to Note 12, Equity
Interest in Alliance.
Capital Assets
Since the approval of the University Campus Master Plan (the “Master Plan”) in 1991, more than $1.4 billion in capital
projects have been completed. One major phased project remains in design and construction. Signature, national
and local architects have been selected for the design of major capital projects and the work has been the subject of
much press and many awards. In-house University staffs typically provide the programs for major projects and the
design for projects costing less that $1 million. Numerous new academic and auxiliary facilities have been built in
addition to renovation and rehabilitation of many existing facilities. The University’s Master Plan was set into motion
in 1989 and has transformed the Uptown Campus into a cohesive community that enhances the student experience
by providing improved teaching, research and quality of student life facilities. The dramatically improved campus has
attracted new students and supported enrollment growth.
Development and renewal of capital assets are critical factors in continuing the quality of the University’s academic
mission, research programs and student life. Capital asset additions are acquired with state capital appropriations,
gifts, debt, federal grants and university funds. Capital additions totaled $90 million in 2008, $1 4 1 million in 2007, and
$181 million in 2006 and retirements before depreciation expense of $88 million, $87 million, and $79 million in 2008,
2007 and 2006, respectively. Capital additions primarily comprise capital projects that were either completed during
the fiscal year or are in either the construction or design phase at June 30 of each fiscal year. During 2008, the
University continued to focus its capital program on Academic Health Center projects and renovation of existing
facilities.
Major capital projects completed during Fiscal Year 2008
- Zimmer Rehabilitation – $3 million renovation of Zimmer Auditorium and the corridor/lounge spaces that
surround it. - Eden Quadrangle - $11 million project to create open space for the academic medical campus.
Major capital projects in construction at June 30, 2008
- Medical Sciences Building Rehabilitation Phase I and CARE (Center for Academic Research
Excellence)/Crawley Building – $191 million project creating a state-of-the-art instructional and research space
for the College of Medicine. The project was completed in July 2008. - Teachers College/Dyer Hall Rehabilitation Phase 2 – $18 million project rehabilitating 60,000 gross square feet
of existing space. Major building improvements include reconfiguration of interior spaces with all new interior
finishes and furnishings as well as new HVAC, electrical, fire protection, and plumbing systems, new lighting,
data wiring, audio-visual systems, and security. The project was completed in August 2008. - Clifton Court Garage – $6 million project rehabilitating 178,773 square feet of parking area. The project was
completed in September 2008. - Kettering Preclinical Science Lab Renovation – $3 million project to provide 9,760 square feet of renovated lab
space for environmental research. The project is scheduled to be completed in spring 2009.