Budget and Finance

UNIVERSITY OF CINCINNATI JUNE 30, 2008

Custodial Credit Risk

Of the Foundation’s $15,651,000 total investments, approximately $14,657,000 are uninsured, not registered in

the name of the Foundation, and are held in trust departments or assets in the Foundation’s name and are thus

not exposed to custodial credit risk. The Foundation does not have a policy for custodial credit risk.

C) Endowment Investments

These funds represent separately invested endowments and split interest trusts where the Foundation is the

remainderman.

D) Pledges Receivable

Contributors to the Foundation have made unconditional pledges totaling $75,241,000 and $38,030,000 as of

June 30, 2008 and 2007, respectively. These pledges receivable have been discounted at a rate of 6% to a net

present value of $54,350,000 and $24,669,000 as of June 30, 2008 and 2007, respectively, which represents

fair market value. As of June 30, these pledges are due as follows (in thousands):

2008 2007

Less than one year $14,350 $ 8,065

One to five years 26,311 8,565

More than five years 13,689 8,039

Subtotal 54,350 24,669

Less allowance for

uncollectibles pledges 1,809 1,603

Total $52,541 $23,066

Separate financial information regarding the Foundation may be obtained by contacting the Foundation at

University of Cincinnati Foundation, University Hall, Suite 100, 51 Goodman Drive, Cincinnati, Ohio 45221-

0064.

17. New Accounting Standards

GASB Statement Number 49, Accounting and Financial Reporting for Pollution Remediation Obligations was

issued in November 2006 and addresses accounting and financial reporting standards for pollution (including

contamination) remediation obligations. The requirements of the Statement are effective for financial statements

for periods beginning after December 15, 2007.

GASB Statement Number 51, Accounting and Reporting for Intangible Assets was issued June 2007 and

establishes accounting and financial reporting requirements for intangible assets to reduce inconsistencies and

enhance the comparability of accounting and financial reporting of such assets among state and local

governments. The requirements of this Statement are effective for financial statements for periods beginning

after June 15, 2009.

GASB Statement Number 52, Land and Other Real Estate Held as Investments by Endowments was issued

November 2007 and establishes consistent standards for reporting of land and real estate held as investments

by essentially similar entities. It requires endowments to report their land and real estate investments at fair

value. The requirements of the Statement are effective for financial statements for periods after June 15, 2008.

GASB Statement Number 53, Accounting and Financial Reporting for Derivative Instruments was issued June

2008. This Statement addresses the recognition, measurement and disclosure of information regarding
      derivative instruments entered into by state and local governments. The requirements of this Statement are
      effective for financial statements for periods beginning after June 15, 2009.

Although not yet required to implement the aforementioned Statements for the year ended June 30, 2008, the

University does not think that there will be a material effect on its financial statements when implementation

does occur.