Budget and Finance

2008 2007

CASH FLOWS FROM OPERATING ACTIVITIES

Tuition and fees $ 266,423 265,530$

Grants and contracts 170,601 166,337

Sales and services of educational departments and auxiliary enterprises 149,259 136,800

Expenditures and other deductions:

Compensation (578,915) (562,184)

Payments for materials, services and other (244,589) (267,982)

Loans issued (9,159) (7,924)

Loan principal collected 5,099 8,773

Other revenue 10,835 12,893

Cash used for operating activities (230,446) (247,757)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

State appropriations 193,811 185,863

Federal and state grants (non-exchange) 27,633 24,494

Gifts for other than capital purposes (including additions to permanent endowments) 90,698 47,308

Interest on loans receivable 803 562

Cash from noncapital financing activities 312,945 258,227

CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES

State appropriations - capital 39,433 9,791

Private gifts for capital purposes 2,001 3,208

Grants for capital purposes 713 2,098

Other (8,352) 14,681

Proceeds from capital debt 275,288 267,485

Purchases of capital assets (90,514) (156,665)

Principal paid on capital debt (258,602) (162,619)

Interest paid on capital debt (50,532) (46,202)

Cash used for capital financing activities (90,565) (68,223)

CASH FLOWS FROM INVESTING ACTIVITIES

Endowment income 57,390 54,712

Income from deposits with trustees 13,653 2,914

Other endowment expenditures - (45)

Realized gains (losses) on investments 3,753 90,886

Purchase of investments (353,624) (1,226,157)

Sale of investments 268,219 1,163,407

Investment income 3,885 3,396

Cash from investing activities (6,724) 89,113

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (14,790) 31,360

Cash and cash equivalents - beginning of the year 90,075 58,715

Cash and cash equivalents - end of the year $ 75,285 90,075$

University of Cincinnati

Statements of Cash Flows

(in thousands)

Years Ended June 30, 2008 and 2007

See accompanying notes to financial statements.^17