UNIVERSITY OF CINCINNATI JUNE 30, 2008
- Restricted Net Assets
Restricted net assets are either nonexpendable or expendable. Nonexpendable restricted net assets consist
primarily of endowments whose corpus is held in perpetuity. Only the income earned on the invested
principal is used for the purpose specified by the donor. The principal of expendable restricted net assets
may be used for the donor-specified purpose. Restricted nonexpendable and expendable net assets are
held for the following purposes (in thousands):2008 2007
Restricted nonexpendable:
Instruction $ 150,369 $ 159,293
Research 95,188 90,712
Academic support 50,105 53,466
College/programs 311,358 344,902
Scholarships 130,589 142,977
Equity interest in Alliance 389,446 375,297
Other 75,468 98,845Total $1,202,523 $1,265,4922008 2007
Restricted expendable:
Instruction $ 31,191 $ 35,226
Research 113,347 120,486
Academic support 30,341 32,926
College/programs 144,456 149,385
Scholarships 44,685 40,038
Student loans 9,284 9,110
Grants and contracts 2,471 3,777
Capital projects 14,794 20,553
Other 1,021 1,562Total $ 391,590 $ 413,063- Unrestricted Net Assets
Unrestricted net assets, as defined by GASB Statement 35, are not subject to externally imposed
stipulations; however, they are subject to internal restrictions imposed by action of management or the Board
of Trustees, or may otherwise be limited by contractual agreements with outside parties.
- Equity Interest in Alliance
Effective January 1, 1995, the University, acting on its own behalf and on behalf of University Hospital (the
Hospital), entered into a Joint Operating Agreement (the Agreement) with The Christ Hospital, St. Luke
Hospital, Inc. and The Health Alliance of Greater Cincinnati (the Alliance) for the purpose of forming an
alliance of hospitals, physicians and other health-care providers in an integrated health-care delivery system.
Jewish Health Systems, Inc. (Jewish Hospital) and Fort Hamilton Hospital Holding Company LLC (Fort
Hamilton Hospital) also executed the Agreement effective January 1, 1996, and July 1, 1998, respectively.
Under the terms of the Agreement, the Hospital, The Christ Hospital, Fort Hamilton Hospital, Jewish Hospital
and St. Luke Hospital were to be managed by Alliance management, and their operating results combined
and allocated based on their calculated equity interests in the Alliance. The University's equity interest in the
Alliance of 29.12% is based on the Hospital’s pro rata portion of the Alliance’s net assets. The University
has recognized its equity interest in the Alliance of $389,446,000 and $375,297,000 for the years ended
June 30, 2008 and 2007, respectively, in Other Long-term Investments and Restricted Nonexpendable Net
Assets. The results of operations of University Hospital have no direct economic impact upon the University
unless the Alliance dissolves, in which case the University would be entitled to its share of the remaining net
assets based upon its proportionate equity share at that time.