UC|21 THE NEW URBAN RESEARCH UNIVERSIT Y

UNIVERSITY OF CINCINNATI
Financial Information
for Fiscal years 2004-2009
REPORT TO
THE HIGHER LEARNING COMMISSION
OF THE NORTH CENTRAL ASSOCIATION
OF COLLEGES and SCHOOLS
 UC|21 THE NEW URBAN RESEARCH UNIVERSIT Y

TABLE OF CONTENTS
Fiscal year 2009
UC Budget

FISCAL YEAR 2008

UC Budget
UC Audited Financial Report
A133 Audit Statement

FISCAL YEAR 2007

UC Budget
UC Audited Financial Report
A133 Audit Statement

FISCAL YEAR 2006

UC Budget
UC Audited Financial Report
A133 Audit Statement

FISCAL YEAR 2005

UC Budget
UC Audited Financial Report
A133 Audit Statement

FISCAL YEAR 2004

UC Budget
UC Audited Financial Report
A133 Audit Statement

University of Cincinnati
 UC|21 THE NEW URBAN RESEARCH UNIVERSIT Y

FY 09
Fiscal year 2009
UC Budget

University of Cincinnati
 CURRENT FUNDS
BUDGET PLAN
Fiscal Year 2008-2009

Prepared By
The Office of the VP for Finance

June 24, 2008

BOARD OF TRUSTEES
Jeffery L. Wyler
Chairperson

C. Francis Barrett

Anant R. Bhati

Margaret E. Buchanan

Gary Heiman

Sandra W. Heimann

Thomas H. Humes

H. C. Buck Niehoff

Robert E. Richardson, Jr.

 TABLE OF CONTENTS
GENERAL

Current Funds Budget Summary..................................................................................2

Summary of Budgeted Resources and Expenditures - Total University ...................3

Summary of Budgeted Resources and Expenditures - Total University Graphs

Budgeted Resources by Source ..................................................................4
Budgeted Expenditures by Function .........................................................4
Selected Definitions.........................................................................................................5

Undesignated General Funds - Uptown Campus.........................................................8

Undesignated General Funds - Branches ...................................................................14

Student Fees & Historical Data ...................................................................................20

Auxiliary Operations ....................................................................................................26

Designated General Funds ...........................................................................................48

Restricted Funds ...........................................................................................................57

 FISCAL YEAR 2008-2009
CURRENT FUNDS BUDGET SUMMARY
(IN THOUSANDS)

Undesignated Undesignated Total

Auxiliary Restricted
General Funds General Funds Designated Current
Enterprises Funds
Uptown Campus Branches General Funds Funds

RESOURCES
Gross Tuition, Fee and Other Student Charges 303,051 29,667 10,488 19,409 362,615
Less Scholarships and Fellowships (67,799) (466) (68,265)
Net Tuition, Fee and Other Student Charges 235,251 29,201 10,488 19,409 294,350

State Appropriations (State Share of Instruction) 167,300 16,694 13,083 197,077

State Appropriations (Challenges) 8,308 2,533 10,841
Govt and Private Grants and Contracts 13,001 29 15,946 207,546 236,522
Private Gifts 1,177 6,930 60 34,606 42,773
Endowment Income 1,574 1,214 71,050 73,838
Sales and Service 10 19 61,843 61,872
Temporary Investments 1,670 75 1,745
Other Sources 2,510 92 2,729 525 5,856
Auxiliary Enterprises 71,355 71,355
Total Resources 430,802 48,567 88,773 101,202 326,885 996,229

EXPENDITURES
Educational and General
Instructional and General 216,766 27,945 12,035 60,310 317,056
Separately Budgeted Research 2,881 7,906 142,068 152,855
Public Service 1,219 169 47,784 7,847 57,019
Academic Support 44,967 4,539 23,198 14,951 87,655
Student Services 17,091 4,023 13,917 3,411 38,440
Institutional Support 44,288 6,482 11,590 8,415 70,775
Operation and Maintenance of Plant 50,582 4,752 (1,756) - 53,578
Scholarships and Fellowships 1,040 40,872 41,911
Budget Cut Reserve (971) (971)
Total Educational and General 376,823 47,910 - 115,714 277,872 818,319

Auxilliary Enterprises 68,385 68,385

Mandatory Transfers
Loan Fund Matching -
Debt Service 23,963 36,976 17,513 - 78,452
Nonmandatory Transfers .
Subsidies to Non-Instructional Units 16,675 259 (16,933) -
Plant Funds 342 - 1,445 1,787
Designated 14,821 (14,821) -
Other (3,921) 398 1,038 (6,860) 48,961 39,616
Claims on Operations Repayment 2,100 (2,100) -
Total Expenditures and Transfers 430,802 48,567 90,911 109,446 326,833 1,006,559

Net Increase (Decrease) In Fund Balance - - (2,138) (8,244) 52 (10,330)

2
 SUMMARY OF BUDGETED RESOURCES AND EXPENDITURES
TOTAL UNIVERSITY
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Gross Tuition, Fee and Other Student Charges 353,107 362,615 9,508 2.69%
Less Scholarships and Fellowships (69,762) (68,265) 1,497 -2.15%
Net Tuition, Fee and Other Student Charges 283,345 294,350 11,005 3.88%

State Appropriations (State Share of Instruction) 181,838 197,077 15,239 8.38%

State Appropriations (Challenges) 10,889 10,841 (47) -0.44%
Govt and Private Grants and Contracts 230,546 236,522 5,976 2.59%
Private Gifts 45,938 42,773 (3,165) -6.89%
Endowment Income 70,156 73,838 3,682 5.25%
Sales and Service 60,097 61,872 1,775 2.95%
Temporary Investments 1,744 1,745 1 0.05%
Other Sources 9,671 5,856 (3,815) -39.44%
Auxiliary Enterprises 70,799 71,355 556 0.78%
Total Resources 965,023 996,229 31,206 3.23%

EXPENDITURES
Educational and General
Instructional and General 300,409 317,056 16,647 5.54%
Separately Budgeted Research 156,801 152,855 (3,947) -2.52%
Public Service 56,279 57,019 740 1.31%
Academic Support 82,423 87,655 5,232 6.35%
Student Services 39,081 38,440 (641) -1.64%
Institutional Support 68,707 70,775 2,068 3.01%
Operation and Maintenance of Plant 51,879 53,578 1,699 3.27%
Scholarships and Fellowships 42,019 41,911 (108) -0.26%
Budget Cut Reserve* - (971) (971) -
Total Educational and General 797,598 818,319 20,720 2.60%

Auxiliary Enterprises 69,409 68,385 (1,025) -1.48%

Mandatory Transfers
Loan Fund Matching - - - -
Debt Service 74,193 78,452 4,260 5.74%
Nonmandatory Transfers
Subsidies to Non-Instructional Units - - - -
Plant Funds 1,242 1,787 545 43.90%
Designated - - - -
Other 39,044 39,616 572 1.47%
Claims on Operations Repayment - - - -
Total Expenditures and Transfers 981,487 1,006,559 25,072 2.55%

Net Increase (Decrease) In Fund Balance (16,464) (10,330)

3
 SUMMARY OF BUDGETED RESOURCES AND EXPENDITURES
TOTAL UNIVERSITY

RESOURCES BY SOURCE

Auxiliary Enterprises
7%

Net Tuition, Fees & Other

Other Resources Student Charges
19% 29%

Govt. & Private Grants &

Contracts State Appropriations
24% 21%

EXPENDITURES BY FUNCTION

Auxiliary Enterprises
7%
Nonmandatory Transfers
4%
Instructional & General
Mandatory Transfers 31%
8%

Scholarships &
Fellowships
4%
Operation & Maintenance
of Plant
5%

Institutional Support
7%

Student Services
4% Separately Budgeted
Research
Academic Support 15%
9% Public Service
6%

4
 SELECTED DEFINITIONS
♦ Current Funds are those funds that are earned and expended in the current fiscal
year. They include the General Funds and Restricted Funds. Excluded entirely from
this report are Non-Current Funds such as Plant Funds, Loan Funds and Endowment
Principal.

♦ Undesignated General Funds are unrestricted resources available for allocation in

support of core instruction, instructional support and related general administrative
and physical plant expenditures. The university maintains a separate undesignated
general fund for the Uptown campus and one for each of the branches.

♦ Designated General Funds are those funds which are internally restricted by Board
of Trustee approval for specific activities.

♦ Restricted Funds are funds for which the use has been designated by an external
agency or individual and limited to support a specific purpose and/or unit.

♦ Instructional and Departmental Research includes all direct and applicable

allocated expenditures for all activities that are part of the University's instructional
program. It includes expenditures for departmental research and public service that
are not separately budgeted.

♦ Academic Support includes all funds expended for activities carried out primarily to
provide support services that are an integral part of the operations of one of the three
primary missions -- instruction, research and public service. Included in this category
are Academic Affairs Administration, Libraries, Museums & Galleries and the
Deans’ offices.

♦ Student Services includes funds expended for those activities for which the primary
purpose is to contribute to the student's emotional and physical well being, as well as
his/her cultural and social development outside the context of the formal instructional
program. Included in this category are Admissions and Registration, Counseling, and
Student Financial Aid.

♦ Institutional Support contains expenditures for operations that provide support

services to the total University. Included in this category are Executive Management,
Finance, Human Resources, Administrative Services, Public Affairs and
Development.

♦ Plant Operations and Maintenance includes all expenditures of current funds for the
operation and maintenance of the physical plant, net of amounts charged to auxiliary
operations and the hospital. Included in this category are utilities, repair and
renovations, custodial services, grounds maintenance, space rental and property
insurance.

5
♦ Separately Budgeted Research includes all expenditures for activities specifically
organized to produce research outcomes, whether commissioned by an external
agency to the University (restricted) or the University (unrestricted) and includes
matching funds applicable to the conditions set forth by the grant or contract.

♦ Public Service includes all funds expended for activities that are established
primarily to provide noncredit designated course offerings and services beneficial to
individuals and groups external to the University. Included in this category are
Continuing Education and Cooperative Extension Services.

♦ Scholarships and Fellowships include expenditures in the form of outright grants

and trainee stipends to individuals enrolled in formal course work.

♦ Auxiliaries are specifically identified by the State as the following earnings

operations: Residence & Dining Halls, Intercollegiate Athletics, Student Unions,
Bookstores, Parking Lots & Garages, Kingsgate Conference Center, the Campus
Recreation Center, Faculty Club, and the Fifth Third Arena at the Myrl H. Shoemaker
Center.

♦ IT&IE Fee is the Information Technology and Instructional Equipment fee charged
to all undergraduate, graduate and professional students (except Medicine programs)
for the purpose of improving access to and assistance with information technology
and to fund other types of instructional equipment.

♦ Nonresident Surcharge equates to the full cost of instruction for non-Ohio residents.
The Ohio Board of Regents subsidy policy does not provide support for out-of-state
undergraduate students.

♦ Campus Life Fee is the fee charged to all undergraduate, graduate and professional
students (except Raymond Walters College and Clermont College) for the purpose of
developing a new Student Union and state-of-the-art recreation facility.

♦ SSI – Historically, the State Share of Instruction has been the formula driven state
funding as recommended and approved by the Governor and the State Legislature.
This methodology is being reviewed for modification.

♦ Access Challenge – These funds are meant to reduce or freeze the tuition levels for
students obtaining a two-year degree at public institutions in Ohio. While most of
these funds go to two-year campuses, including our branches, the Uptown campus
receives funds for the students at the Center for Access and Transition. These funds
have been used as previously mentioned.

♦ Jobs Challenge – This program allocates funds in proportion to the amount of

income generated by worker training programs at each campus. It is a small amount
(under $100,000) on the Uptown campus, as well as for the two branch campuses.
These funds are currently viewed as restricted in nature.

6
♦ Success Challenge – This program is aimed at increasing the success of four-year
students and shortening the length of time to degree completion. As a major source
of funding, it is providing the opportunity to target new services and programs at
students having difficulty making normal academic progress. Part of these funds
assist in keeping our past fee increases below the past State fee cap and the State
average. The funds are allocated in proportion to the number of “at risk or under-
prepared” students enrolled and how they perform.

♦ Research Challenge – This program, which matches State funding for research to the
level of research grant holdings, has been around for many years. This funding is
being included with the other Challenge programs in our unrestricted income. Thus,
it can apply to new allocations or help support existing allocations.

♦ Priorities in Graduate Education – This is a focused program to improve key

graduate programs that will drive Ohio’s economy in the next century.

♦ FTE – Full Time Equivalent student, based on a 15 credit hour load per quarter.

7
 I. UNDESIGNATED GENERAL FUNDS
UPTOWN CAMPUS
Undesignated General Funds - Overview.....................................................................9

Undesignated General Funds Budget - Uptown Campus .........................................12

Undesignated General Funds Budget – Uptown Campus Graph

Budgeted Resources by Source ...........................................................................13

Budgeted Expenditures by Function..................................................................13

8
 UNIVERSITY OF CINCINNATI
UNDESIGNATED GENERAL FUNDS
UPTOWN CAMPUS
OVERVIEW

The Uptown Campus budget is the “core” university budget, comprising about 43% of
the total. Given its size and impact, the Uptown budget sets the basic direction for the
entire all-funds budget. For example, the Uptown Campus budget determines the tuition
policy for the vast majority of students, as well as the compensation policy for staff. The
primary income sources for the Uptown budget are tuition income and State Share of
Instruction (SSI) from the State of Ohio, which is based on our student complement and
inflation.

In Fiscal Year 2008 (FY 2008), realistic tuition projections have resulted in the
University Uptown Campus meeting its tuition revenue goals. The freshman class, which
entered in Autumn 2007, was a record class of more than 5,000 students. In addition, the
number of Spring 2008 graduates was the highest in 20 years, totaling 4,555 UC students.
Retention is growing through programs that have enhanced student advising and that
provide capstone experiences. Retention rates have increased from 77% in 2003 to 82%
in 2007. UC distance-learning programs continue to grow as do the number of distance-
learners reaching graduation. Increased graduation rates are also supported by the results
of a recent Student Satisfaction Survey that indicated UC students are increasingly
satisfied with the University.

As with last year’s budget, the Fiscal Year 2009 (FY 2009) budget is the product of a
transparent and participatory decision-making process, structured around key committees
with multiple constituencies. Among these committees are the Academic Coordinating
Committee (ACC), which focuses on strategic academic priorities; and the Fiscal
Coordinating Committee (FCC), which facilitates integrated decisions around fiscal
planning and priorities, including tuition and discounts. Both of these groups, as well as
the Faculty Senate, make recommendations to the Academic Operations Committee
(AOC), which together with the President’s Budget Advisory Committee (PBAC), sends
recommendations to the Executive Committee, the President’s Cabinet, the President and
finally on to the Board of Trustees for approval.

The following Uptown Campus budget for FY 2009 is balanced and requires a minimal
reallocation of $971 thousand ($971K) in which academic instruction has been held
harmless for the purpose of supporting the academic priorities identified in the budget
process. Highlights on the revenue side include a headcount projection of 300 new
undergraduate students and a zero increase in all undergraduate tuition and fees.
However, there is a 2% tuition increase for all graduate and professional students. The
proposed budget also includes an additional 2% increase (total of 4%) in tuition for
College of Medicine (COM) MD professional students. This additional 2% increase for
COM MD professional students goes directly to the college for program support. Due to
the zero increase in undergraduate tuition income, the budget does not include an

9
increase in departmental scholarships, which were previously offset by tuition increases.
Finally, State Share of Instruction (SSI) income has increased $14.9 million ($14.9M),
which is a 9.8% increase over FY 2008.

State Share of Instruction Uptown Campus

170,000,000
167,299,921

160,000,000

152,367,382
150,000,000
144,219,588
145,115,081
144,188,235
140,000,000
140,384,295 140,076,481

130,000,000
FY03 FY04 FY05 FY06 FY07 FY08 FY09
Projected Projected

Also built into the FY 2009 budget are numerous new and expanded academic,
entrepreneurial, revenue-neutral programs that have the potential for producing $3.5M in
additional revenues that will offset related expenditures. These programs range from
Uptown on-campus offerings to distance learning.

On the expense side of the FY 2009 budget, $9.9M is included for salary and benefits
increases for represented and unrepresented employees including a $7.2M AAUP
increase for both FY 2008 and FY 2009 since the AAUP contract was not settled until
after the FY 2008 budget was approved. Unrepresented inflation is included at a 2%
factor. Other expenditure increases in the FY 2009 Budget Plan include $1.1M for
academic priorities that the Provost will distribute based on a recommended prioritization
plan, and $1.4M in UC|21 funding that will support some ongoing UC|21 programs as
well as some newly recommended ones. The plan also includes $3M to fund the
Research Initiative for the FY 2009, the first year of a 3-year plan to permanently fund a
total of $11M necessary to bring the Research budget into balance. Another category
included in the proposed FY 2009 budget is $1.6M for Academic Teaching Lab
Renovations and Academic Building Debt Service. Other important new funding
includes $258K for Performance Based Budgeting as well as $350K for the University
Diversity Initiative.

From a financial perspective, FY 2009 brings the opportunity for the University to work
with the Chancellor for the University System of Ohio (USO) in developing his Strategic
Plan for the System including the opportunity to create a new subsidy model for funding
higher education in Ohio based on enrollments, quality and performance.

10
 Undesignated General Funds Uptown Campus
Budgeted Expenditures for Salary, Benefits & Operating/Equipment/Transfers
(in millions)

250
220
209 211 212
200

150 141
127
116
107
100
68 71
64 67
50

0
2006 2007 2008 2009

Salaries Benefits Operating/Equipment/Transfers

It is apparent in the Uptown portion of the FY 2009 budget that the focused priority is on
academics and the UC|21 initiative based on new funding allocations. Therefore, the new
fiscal year will bring the further implementation of recommended academic and UC|21
priorities as well as University-wide policies on hiring processes, cell phone usage and a
more extensive use of the upgraded SAP system for Employee Self-Service (ESS) and
Position Budget Control (PBC). We will also continue to explore areas of service
duplication where we can increase efficiencies. However, beyond good stewardship of
our revenues, we must also continue to find new ways to grow our revenue base. To that
end, we will explore enrollment, innovation and economic development opportunities.
These kinds of measures and strategies, explored and pursued with discipline and energy,
will help us achieve our academic ambitions.

11
 UNDESIGNATED GENERAL FUNDS
UPTOWN CAMPUS
(IN THOUSANDS)

2008 2009
Percent
Budget Projected Variance
Change
As Of 3/31/08 Budget
RESOURCES
Gross Tuition, Fee and Other Student Charges 296,023 303,051 7,028 2.37%
Less Scholarships and Fellowships (69,394) (67,799) 1,595 -2.30%
Net Tuition, Fee and Other Student Charges 226,629 235,251 8,622 3.80%

State Appropriations (State Share) 152,349 167,300 14,951 9.81%

State Appropriations (Challenges) 8,363 8,308 (55) -0.66%
Govt and Private Grants and Contracts 13,001 13,001 - 0.00%
Private Gifts 1,177 1,177 - 0.00%
Endowment Income 1,574 1,574 - 0.00%
Sales and Service 10 10 - 0.00%
Temporary Investments 1,670 1,670 - 0.00%
Other Sources 2,510 2,510 - 0.00%
Total Resources 407,283 430,802 23,519 5.77%

EXPENDITURES
Educational and General
Instructional and General 203,106 216,766 13,660 6.73%
Separately Budgeted Research 2,620 2,881 261 9.95%
Public Services 1,434 1,219 (215) -15.01%
Academic Support 42,409 44,967 2,558 6.03%
Student Services 17,675 17,091 (584) -3.30%
Institutional Support 42,596 44,288 1,693 3.97%
Operation and Maintenance of Plant 49,395 50,582 1,187 2.40%
Budget Cut Reserve - (971) (971) -
Total Educational and General 359,235 376,823 17,588 4.90%

Mandatory Transfers
Loan Fund Matching
Debt Service 21,771 23,963 2,192 10.07%
Nonmandatory Transfers
Subsidies to Non-Instructional Units 15,936 16,675 739 4.64%
Plant Funds 342 342 - 0.00%
Designated 11,821 14,821 3,000 25.38%
Other (3,921) (3,921) - 0.00%
Claims On Operations Repayment 2,100 2,100 - 0.00%
Total Expenditures and Transfers 407,283 430,802 23,519 5.77%

Net Increase (Decrease) In Fund Balance - -

12
 SUMMARY OF BUDGETED RESOURCES AND EXPENDITURES
UPTOWN CAMPUS GENERAL FUNDS

RESOURCES BY SOURCE

Govt. & Private Grants &

Other Resources
Contracts
2%
3%

State Appropriations
41%
Net Tuition, Fees & Other
Student Charges
54%

EXPENDITURES BY FUNCTION

Nonmandatory Transfers
7%

Mandatory Transfers
6%

Operation & Maintenance of

Plant
12%

Instructional & General

50%

Institutional Support
10%

Student Services
4%
Academic Support
10% Public Service
0% Separately Budgeted Research
1%

13
 II. UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES

Undesignated General Funds Branches - Overview..................................................15

Undesignated General Funds Budget - Branch Campuses .......................................17

Raymond Walters College...................................................................................18

Clermont College .................................................................................................19

14
 UNIVERSITY OF CINCINNATI
UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES
OVERVIEW
In FY 2009, due to new State funding, State appropriations are projected to increase at
the branches. Tuition and fees will remain unchanged due to the related provisions in the
State of Ohio budget.

RAYMOND WALTERS COLLEGE

Raymond Walters College will be undergoing its ten-year accreditation during this
budget cycle. As part of that Accreditation Self-Study, we are focusing on areas that
have been identified through gap analysis as being in need of resources. This will include
improving student advising, adding tenure track faculty, and developing a master space
utilization plan.

In conjunction with the Governors University System of Ohio and UC|21, we will be
strengthening our relationship: with K-12 in Post Secondary and Dual Enrollment
programs, with Accountability and Credibility Together (ACT), and with joint programs
with Cincinnati State Technical and Community College, Clermont College and the
Great Oaks Joint Vocational Center. The Professional Development Institute (PDI)
continues their efforts in Work Force Development by playing a major role in the Region
V Work Force Coalition.

RWC will increase scholarships to traditional students and continue investigating ways to
service non-traditional students with flexible scheduling and hybrid courses.

Capital funds will be used for Life Safety upgrades, computer lab upgrades and
classroom upgrades.

Raymond Walters College is expecting a slight increase in enrollment for the coming
year.

CLERMONT COLLEGE

Clermont College has enjoyed dramatic enrollment growth in the current year, and we are
projecting this trend to continue into FY 2009. Last fall, we saw an increase of 7.8%
FTE which has continued throughout the year and has been boosted by a 4% increase in
retention. In addition to this internal growth, we are also engaging with institutions in the
area for Dual Enrollment, Post Secondary, and the new Ohio Seniors-to-Sophomores
programs. Our outreach location in Milford is pleased to be hosting a new program next
fall in Addictions. Our academic restructuring is nearing completion and we are poised
well to serve our regional needs.

15
In accordance with the Governor’s Efficiency Guideline requirements, FY 2009 tuition
and fees will remain unchanged. Revenue growth will come from our compliance with
the Efficiency Guideline program, and from the increased enrollments. This additional
revenue will be directed to fund new positions, safety and security initiatives, IT
infrastructure, and general renovations. All remaining funds are being held to prepare for
the next major building project, which we will be expediting. We look forward to
working with Construction Management to refine our Campus Master Plan and begin the
planning and construction of new facilities.

16
 UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Gross Tuition, Fee and Other Student Charges 27,846 29,667 1,822 6.54%
Less Scholarships and Fellowships (368) (466) (98) 26.63%
Net Tuition, Fee and Other Student Charges 27,478 29,201 1,724 6.27%

State Appropriations (State Share) 16,102 16,694 592 3.67%

State Appropriations (Challenges) 2,526 2,533 6 0.25%
Govt and Private Grants and Contracts 43 29 (15) -33.76%
Private Gifts - - - -
Endowment Income - - - -
Sales and Service 15 19 4 26.67%
Temporary Investments - - - -
Other Sources 57 92 34 60.13%
Total Resources 46,221 48,567 2,346 5.08%

EXPENDITURES
Educational and General
Instructional and General 26,480 27,945 1,465 5.53%
Separately Budgeted Research - - - -
Public Services 288 169 (119) -41.28%
Academic Support 4,438 4,539 102 2.29%
Student Services 3,734 4,023 288 7.72%
Institutional Support 6,402 6,482 80 1.26%
Operation and Maintenance of Plant 4,451 4,752 302 6.78%
Total Educational and General 45,792 47,910 2,119 4.63%

Mandatory Transfers
Loan Fund Matching - - - -
Debt Service - - - -
Nonmandatory Transfers
Subsidies to Non-Instructional Units 259 259 - 0.00%
Plant Funds 5 - (5) -100.00%
Other 166 398 232 140.20%
Total Expenditures and Transfers 46,221 48,567 2,346 5.08%

Net Increase (Decrease) In Fund Balance - -

17
 UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES
RAYMOND WALTERS COLLEGE
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Gross Tuition, Fee and Other Student Charges 17,287 17,923 636 3.68%
Less Scholarships and Fellowships (68) (101) (33) 48.53%
Net Tuition, Fee and Other Student Charges 17,219 17,822 603 3.50%

State Appropriations (State Share) 9,690 10,309 619 6.39%

State Appropriations (Challenges) 1,640 1,568 (72) -4.39%
Govt and Private Grants and Contracts 14 - (14) -100.00%
Private Gifts - - - -
Endowment Income - - - -
Sales and Service 15 19 4 26.67%
Temporary Investments - - - -
Other Sources 40 45 5 12.50%
Total Resources 28,617 29,763 1,146 4.00%

EXPENDITURES
Educational and General
Instructional and General 17,126 18,034 908 5.30%
Separately Budgeted Research - - - -
Public Services 240 119 (121) -50.34%
Academic Support 2,821 2,789 (32) -1.14%
Student Services 1,832 2,045 213 11.60%
Institutional Support 3,424 3,485 61 1.77%
Operation and Maintenance of Plant 2,795 2,978 183 6.54%
Total Educational and General 28,238 29,450 1,212 4.29%

Mandatory Transfers
Loan Fund Matching - - - -
Debt Service - - - -
Nonmandatory Transfers
Subsidies to Non-Instructional Units 174 174 - 0.00%
Plant Funds 5 - (5) -100.00%
Other 200 139 (61) -30.50%
Total Expenditures and Transfers 28,617 29,763 1,146 4.00%

Net Increase (Decrease) In Fund Balance - -

18
 UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES
CLERMONT COLLEGE
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Gross Tuition, Fee and Other Student Charges 10,559 11,744 1,185 11.23%
Less Scholarships and Fellowships (300) (365) (65) 21.67%
Net Tuition, Fee and Other Student Charges 10,259 11,379 1,120 10.92%

State Appropriations (State Share) 6,412 6,385 (28) -0.43%

State Appropriations (Challenges) 886 965 78 8.84%
Govt and Private Grants and Contracts 29 29 - 0.00%
Private Gifts - - - -
Endowment Income - - - -
Sales and Service - - - -
Temporary Investments - - - -
Other Sources 17 47 29 169.87%
Total Resources 17,604 18,804 1,200 6.82%

EXPENDITURES
Educational and General
Instructional and General 9,354 9,911 557 5.96%
Separately Budgeted Research - - - -
Public Services 48 50 2 3.70%
Academic Support 1,617 1,750 134 8.27%
Student Services 1,902 1,978 76 3.98%
Institutional Support 2,978 2,997 19 0.63%
Operation and Maintenance of Plant 1,656 1,774 118 7.12%
Total Educational and General 17,554 18,461 906 5.16%

Mandatory Transfers
Loan Fund Matching - - - -
Debt Service - - - -
Nonmandatory Transfers
Subsidies to Non-Instructional Units 85 85 - 0.00%
Plant Funds - - - -
Other (34) 259 293 -852.64%
Total Expenditures and Transfers 17,604 18,804 1,200 6.82%

Net Increase (Decrease) In Fund Balance - -

19
 III. STUDENT FEES AND HISTORICAL DATA

Approved Student Fees.................................................................................................21

Summary of All Quarterly Student Fees - All Campuses .........................................22

Summary of All Annual Student Fees - All Campuses..............................................22

Instructional Subsidy and Student Fees - Ten & Five Year Trends ........................23
Ten & Five Year Fee History - Uptown Campus Resident Fees .............................23

Full Time Equivalent (FTE) Enrollments, FY 2000-2009.........................................24

Summary of Resident Student Fees – Autumn FY 2007 & Autumn FY 2008

OBR Institutions ..................................................................................................25

20
 UNIVERSITY OF CINCINNATI
APPROVED QUARTERLY STUDENT FEES
EFFECTIVE SUMMER QUARTER 2008

CAMPUS LIFE FEE1 GENERAL FEE IT&IE FEE2

FY08 FY09 FY08 FY09 FY08 FY09

FULL TIME RATES Actual Approved Actual Approved Actual Approved
Undergraduate Programs:
Uptown Campus 147 147 249 249 105 105
Center for Access & Transition 147 147 249 249 105 105
3
Clermont College 0 0 142 142 85 85
3
Raymond Walters College 0 0 142 142 85 85
Professional Programs:
Law 221 221 374 374 158 158
Medicine 147 147 249 249 0 0
Graduate Programs4 147 147 249 249 105 105

INSTRUCTIONAL FEE
AND NONRESIDENT SURCHARGE

Ohio Out-of-State5
FY08 FY09 FY08 FY09
FULL TIME RATES Actual Approved Actual Approved
Undergraduate Programs:
Uptown Campus 2,632 2,632 7,473 7,473
Center for Access & Transition 1,963 1,963 7,473 7,473
Clermont College 1,287 1,287 3,571 3,571
Raymond Walters College 1,517 1,517 4,295 4,295
Professional Programs:
Law 8,738 8,928 15,798 16,129
Medicine 8,574 8,933 14,963 13,933
Graduate Programs4 3,536 3,617 6,814 6,960

PART TIME PER CREDIT HOUR FEES

(INSTRUCTIONAL, GENERAL, IT&IE, CAMPUS LIFE
AND NONRESIDENT SURCHARGE)

Ohio Out-of-State
FY08 FY09 FY08 FY09
PART-TIME RATES Actual Approved Actual Approved
Undergraduate Programs:
Uptown Campus 262 262 665 665
Center for Access & Transition 206 206 665 665
Clermont College 127 127 317 317
Raymond Walters College 146 146 377 377
Professional Programs:
Law 791 807 1,380 1,407
Medicine 748 778 1,280 1,195
Graduate Programs4 404 412 732 747

(1) Campus Life Fee approved at the May 23, 2000 Board of Trustees meeting.
(2) The IT&IE Fee assists in funding information technology, instructional equipment and improved student access to
computer resources and other instructional materials.
(3) Includes parking fee of $33.
(4) Medicine Graduate Programs do not charge the IT&IE Fee.
(5) Includes the Ohio instructional fee and the non-resident surcharge.

21
 APPROVED SUMMARY OF QUARTERLY STUDENT FEES
ALL CAMPUSES EFFECTIVE SUMMER QUARTER 2008

FULL-TIME FULL-TIME
RESIDENT TUITION & FEES NON-RESIDENT TUITION & FEES

FY08 FY09 FY08 FY09

Tuition & Tuition & Percent Tuition & Tuition & Percent
Fees Fees Change Fees Fees Change

Undergraduate
Uptown Campus 3,133 3,133 0.0% 7,974 7,974 0.0%
Center for Access and Transition 2,464 2,464 0.0% 7,974 7,974 0.0%
1
Clermont College 1,514 1,514 0.0% 3,798 3,798 0.0%
1
Raymond Walters College 1,744 1,744 0.0% 4,522 4,522 0.0%
Professional Programs
2
Law 9,491 9,681 2.0% 16,551 16,882 2.0%
Medicine 8,970 9,329 4.0% 15,359 14,329 -6.7%
3
Graduate Programs 4,037 4,118 2.0% 7,315 7,461 2.0%

APPROVED SUMMARY OF ANNUAL STUDENT FEES

ALL CAMPUSES EFFECTIVE SUMMER QUARTER 2008

FULL-TIME FULL-TIME
RESIDENT TUITION & FEES NON-RESIDENT TUITION & FEES

FY08 FY09 FY08 FY09

Tuition & Tuition & Percent Tuition & Tuition & Percent
Fees Fees Change Fees Fees Change
Undergraduate
Uptown Campus 9,399 9,399 0.0% 23,922 23,922 0.0%
Center for Access and Transition 7,392 7,392 0.0% 23,922 23,922 0.0%
1
Clermont College 4,542 4,542 0.0% 11,394 11,394 0.0%
1
Raymond Walters College 5,232 5,232 0.0% 13,566 13,566 0.0%
Professional Programs
2
Law 18,982 19,362 2.0% 33,102 33,764 2.0%
Medicine 26,910 27,987 4.0% 46,077 42,987 -6.7%
3
Graduate Programs 12,111 12,354 2.0% 21,945 22,383 2.0%

(1) A parking fee of $33 per quarter is assessed by the branch campuses (included in the above amounts).
(2) College of Law tuition calculated on the semester basis.
(3) Medicine Graduate Programs do not charge the IT&IE Fee.

22
 STATE SHARE OF INSTRUCTION AND STUDENT FEES
TEN YEAR & FIVE YEAR TRENDS
UPTOWN CAMPUS
(IN THOUSANDS)

State Share of Instruction (1) Student Fees (2)

State Share of Dollar Percent Dollar Percent
Instruction Change Change Fees Change Change

FY 2000 Actual 159,351 4,153 2.7% 145,227 6,016 4.3%

FY 2001 Actual (3) 159,282 (69) 0.0% 150,719 5,492 3.8%
FY 2002 Actual (4) 149,894 (9,388) -5.9% 170,582 19,863 13.2%
FY 2003 Actual (5) 144,220 (5,674) -3.8% 195,126 24,544 14.4%
FY 2004 Actual 144,188 (32) 0.0% 218,477 23,351 12.0%
FY 2005 Actual 140,384 (3,804) -2.6% 247,747 29,270 13.4%
FY 2006 Actual 140,076 (308) -0.2% 271,034 23,287 9.4%
FY 2007 Actual 145,115 5,039 3.6% 298,557 27,523 10.2%
FY 2008 Projected 152,367 7,252 5.0% 310,333 11,776 3.9%
FY 2009 Budget 167,300 14,933 9.8% 321,223 10,890 3.5%

Ten Year Average Increase 0.8% 8.8%

Five Year Average Increase 3.1% 8.1%

(1) These figures represent the FTE driven State Share of Instruction. Other challenge items
such as Access, Success, Jobs, Research and Priorities in Higher Education are not reflected in this table.
(2) Student Fees include Instructional, General, IT&IE, Campus Life and Non-Resident Fees.
(3) Reduced by a 1% Statewide Budget Cut.
(4) Reduced by a 6% Statewide Budget Cut.
(5) Reduced by a 2.5% Statewide Budget Cut.

ANNUAL FEE HISTORY

OHIO RESIDENT FEES - UPTOWN CAMPUS

Center for
Under- Access and
Year graduate Transition** Graduate Law Medicine

1998-99 4,746 4,590 5,586 7,706 12,537

1999-00 4,998 4,569 5,880 8,104 13,173
2000-01 5,337 4,401 6,264 8,600 13,902
2001-02 Autumn 5,823 4,686 6,822 9,348 15,090
2002-03 6,936 5,448 8,094 11,020 17,709
2003-04 7,623 5,988 8,985 12,236 19,662
2004-05 8,379 6,579 9,975 14,084 21,831
2005-06 Autumn 8,877 6,975 10,773 16,210 23,580
2006-07 9,399 7,392 11,661 18,032 25,965
2007-08 9,399 7,392 12,111 18,982 26,910
2008-09 9,399 7,392 12,354 19,362 27,987

Ten Year Average Annual Increase $465 $280 $677 $1,166 $1,545

Five Year Average Annual Increase $355 $281 $674 $1,425 $1,665

Ten Year Average Annual Increase 7.2% 5.0% 8.3% 9.8% 8.4%

Five Year Average Annual Increase 4.3% 4.4% 6.6% 9.7% 7.4%

**Formerly University College

23
 FULL TIME EQUIVALENT (FTE) ENROLLMENTS
ALL-TERMS SUBSIDY ELIGIBLE REPORTING, FY 2000-2009

Uptown Campus Raymond

Graduate & Walters Clermont Grand
Year Undergrad Professional Total Branch Branch Total

1999-00 15,588 4,902 20,490 2,174 1,363 24,027

2000-01 15,103 5,031 20,134 2,244 1,469 23,847
2001-02 15,200 5,265 20,465 2,458 1,656 24,579
2002-03 14,867 5,406 20,273 2,650 1,778 24,701
2003-04 15,026 5,461 20,487 2,847 2,017 25,351
2004-05 15,111 5,662 20,773 2,969 2,088 25,830
2005-06 15,270 5,332 20,602 2,991 2,170 25,763
2006-07 15,423 5,487 20,910 3,029 2,229 26,168
Est. 2007-08 15,973 5,683 21,656 2,999 2,396 27,051
Est. 2008-09 16,303 5,683 21,986 3,045 2,433 27,464

24
 SUMMARY OF RESIDENT STUDENT FEES
OHIO BOARD OF REGENTS' INSTITUTIONS

UNDERGRADUATE FEES
Autumn Autumn
FY 2007 FY 2008 Percent
Fees Fees Change
Miami University1 10,042 11,937 18.9%
University of Cincinnati 9,399 9,399 0.0%
Bowling Green State University (B) 9,060 9,060 0.0%
Ohio University 8,847 8,907 0.7%
Bowling Green State University (A) 8,746 8,746 0.0%
Ohio State University (D) 8,667 8,676 0.1%
Ohio State University (C) 8,559 8,568 0.1%
Kent State University 8,430 8,430 0.0%
University of Akron (B) 8,383 8,383 0.0%
University of Akron (A) 7,976 7,976 0.0%
Cleveland State University 7,920 7,970 0.6%
University of Toledo 7,927 7,948 0.3%
Wright State University (E) 7,278 7,278 0.0%
Wright State University (D) 7,020 7,020 0.0%
Wright State University (C) 6,756 6,756 0.0%
Youngstown State University 6,697 6,721 0.4%
Shawnee State University (B) 5,832 5,832 0.0%
Shawnee State University (A) 5,436 5,424 -0.2%
Central State University 5,294 5,294 0.0%

Average 7,804 7,912 1.4%

GRADUATE FEES
University of Cincinnati 11,661 12,111 3.9%
Cleveland State University 10,602 11,471 8.2%
Bowling Green State University 11,450 11,450 0.0%
Miami University 10,630 11,435 7.6%
University of Toledo 10,472 10,961 4.7%
Wright State University (E) 9,720 10,107 4.0%
Ohio State University 9,438 9,972 5.7%
Wright State University (D) 9,375 9,750 4.0%
Wright State University (C) 9,114 9,477 4.0%
Ohio University 9,318 9,378 0.6%
Kent State University 8,968 8,968 0.0%
Youngstown State University 7,982 8,728 9.3%
Central State University 8,370 8,370 0.0%
University of Akron 6,971 6,971 0.0%
Shawnee State University 6,606 6,903 4.5%

Average 9,378 9,737 3.8%

Source: "FALL SURVEY OF STUDENT CHARGES - For Academic Year 2007 - 2008" by The Ohio Board of Regents

University of Cincinnati amounts shown include the Instructional, General/Facilities Fees, IT&IE Fee and Campus Life Fee.
1
Miami's published in-state tuition.
(A): Denotes fees charged to continuing students who enrolled before the 2002 summer term.
(B): Denotes fees charged to continuing students who enrolled after the 2002 summer term.
(C): Denotes fees charged to continuing students enrolled prior to summer term 2003.
(D): Denotes fees charged to new students entering summer term 2003, if different than fees charged to continuing students.
(E): Denotes fees charged to new students entering fall term 2004, if different than fees charged to continuing students.

25
 IV. AUXILIARY OPERATIONS
Overview ........................................................................................................................27

Summary of Auxiliary Operations FY 2008 & FY 2009 ...........................................31

Campus Services Auxiliary Budget Summary FY 2008 & FY 2009 ........................32

Budget History Campus Services Auxiliary Graph...................................................33

Campus Services Auxiliary – Retail...................................................................34
Campus Services Auxiliary – Food ....................................................................35
Campus Services Auxiliary – Housing...............................................................36
Campus Services Auxiliary – Faculty Club.......................................................37
Campus Services Auxiliary – Kingsgate Conference Center...........................38
Campus Services Auxiliary – Conferencing ......................................................39
Campus Services Auxiliary – Campus Recreation Center ..............................40
Campus Services Auxiliary – TUC/SLC............................................................41
Campus Services Auxiliary – Campus Life Fee ................................................42

Room, Board, and Apartment Rates...........................................................................43

Parking Services............................................................................................................44

Budget History Parking Services Graph ....................................................................45

Intercollegiate Athletics................................................................................................46

Budget History Intercollegiate Athletics Graph ........................................................47

26
 UNIVERSITY OF CINCINNATI
AUXILIARY ENTERPRISES
OVERVIEW

CAMPUS SERVICES

Campus Services is the largest auxiliary component on the University of Cincinnati

campus comprised of the following units:

Bearcat Campus Card Housing & Food Services

Campus Recreation Center MainStreet Operations
Retail Services University Conferencing
Kingsgate Conference Hotel

Campus Services realized significant budget savings in FY 2008 that resulted in a

reduction in the budgeted net operating loss. In FY 2007 the Campus Services area was
charged with developing a five-year plan to a balanced budget that would eliminate a
potential annual budget deficit of approximately $2.9 M and to start a plan to pay off all
previous years’ accumulated deficit balances. Significant plan progress was made in FY
2007, and in FY 2008 the Campus Services division will close with a positive year-end of
an estimated $571K; thus, accomplishing in two years, the five-year plan to a balanced
annual budget. This was accomplished through a variety of means such as increased
revenue in several departments and significant reductions in operating expenses. The FY
2009 budget reflects a continuing strategy of streamlining operations for greater
efficiencies and identifying opportunities for revenue growth.

Retail Services consists of seven bookstore locations and two convenience stores,
Central Stores, and vending. In Fiscal Year 2006 (FY 2006), the management of the
bookstore operations was outsourced to the Follett Higher Education Group. This 10-
year contract provides a minimum guaranteed income to Campus Services of $1,600,000
to $1,700,000 per year. Improvements to store layouts and on-line services occurred in
Fiscal Year 2007 (FY 2007) as part of this contract. In FY 2008, “Book Now”, an online
textbook reservation service, increased market share for UC Bookstores textbook sales.
In FY 2009, Retail Services looks forward to working with Student Government on
projects to reduce textbook costs.

Central Stores operates in coordination with a contract with Office Depot. Vending
Services is operated partially in-house and partially by a contract with the Rehabilitation
Services Commission of Ohio.

Housing & Food Services serves approximately 3,400 students in residence. Debt
service expenses reflect the full debt service for Campus Recreation Center Housing,
Turner/Schneider Halls, and the Sawyer Hall demolition. As a partial response to budget
challenges, room and board rates increase by 5% for the 2008-09 academic year.
Occupancy is projected to average 95% for the academic year. Morgens and Scioto Halls
will be off-line for FY 2009 for life safety renovations.

27
Food Services operates MarketPointe and CenterCourt, both national award-winning
residential dining centers. The continuing popularity of CenterCourt, the after-hours
acceptance of meal plans at Stadium View Café, and the change from traditional board
plans to more flexible “block” plans have resulted in an increase of 14.2% in board plan
participation in FY 2008. The dining centers are operated under a contract with
Aramark.

The Faculty Club moved to the new Varsity Athletic Center in July 2007. The Faculty
Club receives central funding in addition to the revenue it generates and is operated under
a management fee contract with Ararmark. A task force has been impanelled to review
and make recommendations on improving the Club’s financial performance.

MainStreet Operations consists of business operations, facilities management, and

program coordination for Tangeman University Center, Steger Student Life Center, and
MainStreet Open spaces. Specific operating venues include the Catskeller Game Room
& Sports Lounge, MainStreet Cinema, and a variety of food service operations, including
catering, Wendy’s, Starbucks, Pizza Hut, Subway, and Gold Star Chili. MainStreet
Operations relies on the revenue it generates and central budget subsidy to meet its
financial obligations.

MainStreet Operations includes management of the Bearcat Campus Card, a debit and
charge card system that provides convenient payment options to students, faculty, and
staff at various retail locations both on and off campus. The program provides nearly 500
restaurant, vending, laundry, and shopping locations on and off campus. The unit
operations rely primarily on the fee it charges to “vendors” who accept the Bearcat Card.
FY 2008 sales on the card will exceed $4,300,000.

Kingsgate Conference Hotel and University Conferencing continue to earn a high

level of satisfaction from guests and attendees with respect to our facilities, lodging,
conference management services, and restaurant. Operated under a contract with
Marriott, the Kingsgate Marriott continues to meet its debt service and other financial
obligations and continues to rank at the top of its competitive group in numerous
operational categories.

The Campus Recreation Center (CRC) opened in February 2006 to much local and
national acclaim. Having met its opening target of 800 members, the CRC currently
boasts over 1,536 non-student members. While the CRC is projected to continue to
operate in a deficit mode in FY 2009, the overall loss from FY 2007 is expected to drop
by $1,925,174 or 45%. Contributing to this significant achievement is an increase in
various revenue sources including the campus life fee (charged to students in their
quarterly fee assessment), membership fees to non-student members, rentals, and
program and service fees. Additionally, savings can be attributed to cost control
measures on utilities and plant maintenance as well as creating efficiencies in payroll,
housekeeping and maintenance, and other operational expenses.

28
II. OTHER AUXILIARY ENTERPRISES - Overview

PARKING SERVICES

In FY 2009 and over the next several years, Parking Services will use a variety of
strategies to contain costs and strengthen customer service within the university
community. For example, Parking Services will convert most garages to automated exit
cashier stations. These stations will allow cash parking patrons to pay fees at an
automated cashiering booth where the fees will be calculated and displayed. The
customer may pay the fee with a credit card, Bearcat Card, cash, prepay vouchers or
merchant validated tickets. This equipment will allow Parking to automate the billing
process of validated tickets and submit invoices in a timelier manner. In addition, we
will continue to build upon our on-line decal sales by taking checks and credit cards. A
new parking decal registration system is being researched to effectively manage citations,
permits, decals, asset management, appeals and finances. In addition, this system will
eliminate manual tasks that are currently being done and possibly allow interfaces with
SAP.

Clifton Court Garage will reopen for parking fall quarter after undergoing major
renovations. There will be renovations to the stairs of University Avenue Garage; an
elevator upgrade in Eden Garage; and minor repairs on other parking facilities.

Parking Services continues to be a self sustaining operation which has identified and
implemented best practices that maximize its income and expenses. It is projected that in
FY 2008, Parking Services will eliminate its deficit fund balance and, as a result of the
positive changes that are occurring, there will not be a parking rate increase for FY 2009.

INTERCOLLEGIATE ATHLETICS

In FY 2009, the Department of Athletics will undergo a business practice change, with
the help of an inter-university taskforce, leading to a new multi-year Fiscal Operating
plan with the goal of implementing a break-even budget position in 5 years. This 5-year
plan involves realistic revisions to the 3-year plan referenced previously in the FY 2008
budget plan. This plan focuses the department’s efforts on increasing resources from all
areas, and in particular is building on the revenue generating potential from football and
men’s basketball. Further, the Department is focusing on its private fund raising
opportunities with UCATS and to specific athletic programs and projects, like “Raising
the Bar.”

With respect to expenditures, the emphasis continues to be on a continuing commitment

to cost containment and close monitoring of expenditures for departmental operations,
home game expenses and team travel. Other efforts are being focused on the cost of
utilities, housekeeping and maintenance, and the general operations of various areas and
sports programs with the goal of generating additional efficiencies. The two largest
expenditures of the Department of Athletics are the costs (salaries and benefits) for
coaches and staff and the costs (tuition, room and board and books) of scholarships for

29
student athletes. Both of these areas are continually being reviewed and monitored as to
their impact on operations and to competing in the Big East Conference.

In FY 2009 the Department will be consolidating the operations of the Fifth Third Arena
(Myrl H. Shoemaker Center) into its operations. The Department anticipates that certain
economies from this consolidation will have a positive impact on efforts to further reduce
deficit operations.

30
 SUMMARY OF AUXILIARY OPERATIONS
UPTOWN CAMPUS
(IN THOUSANDS)

FISCAL YEAR 2008

RESOURCES EXPENDITURES and TRANSFERS

Total Debt Other Total Net
Auxilliary Restricted Expenses
Budget Service Transfers Budget Income
Campus Services Auxiliary* 48,724 48,724 31,336 22,886 (2,544) 51,678 (2,954)

Parking Lots and Garages 16,377 16,377 7,498 9,275 557 17,330 (953)

Intercollegiate Athletics 15,758 7,000 22,758 30,575 6,439 (11,910) 25,104 (2,346)

GRAND TOTAL 80,859 7,000 87,859 69,409 38,600 (13,897) 94,112 (6,253)

FISCAL YEAR 2009

RESOURCES EXPENDITURES and TRANSFERS

Total Debt Other Total Net
Auxilliary Restricted Expenses
Budget Service Transfers Budget Income
Campus Services Auxiliary* 48,361 48,361 28,681 22,211 (2,813) 48,080 281

Parking Lots and Garages 16,576 16,576 6,844 8,578 1,103 16,525 51

Intercollegiate Athletics 16,906 6,930 23,836 32,860 6,186 (12,740) 26,305 (2,469)

GRAND TOTAL 81,843 6,930 88,773 68,385 36,976 (14,450) 90,911 (2,138)

* Campus Services Auxiliary includes Retail, Food Services, Housing, Faculty Club, Kingsgate, Conferencing,
Campus Recreation Center, Tangeman University Center/Steger Student Life Center, Campus Life Fee

31
 CAMPUS SERVICES AUXILIARY SUMMARY
Comparison of FY 2008 to FY 2009 Budget
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Sales 3,839 3,648 (191) -4.97%
Student Meals 8,664 9,495 831 9.59%
Housing 18,586 17,482 (1,104) -5.94%
Rentals 35 33 (2) -6.00%
Contracts 4,064 4,135 71 1.74%
Other 3,476 3,080 (396) -11.40%
Miscellaneous Student Fees 10,060 10,488 428 4.26%
Total Resources 48,724 48,361 (363) -0.75%

EXPENDITURES
Cost of Sales 9,457 9,734 277 2.93%
Salaries 5,213 4,436 (777) -14.90%
Benefits 1,719 1,569 (150) -8.70%
DOE 12,102 9,904 (2,198) -18.16%
University Overhead 1,227 1,288 60 4.92%
Programming 1,618 1,750 132 8.17%
Total Expenditures 31,336 28,681 (2,655) -8.47%

Mandatory Transfers
Debt Service 22,886 22,211 (674) -2.95%
Non-Mandatory Transfers
Reserve for Repairs and Renovations 300 300 - 0.00%
Reserve - Other - - - -
Subsidies to Non-Instructional Activities (4,157) (4,145) 12 -0.29%
Internal Campus Services Overhead 1,278 1,119 (159) -12.42%
Other 35 (87) (122) -348.57%
Total Expenditures and Transfers 51,678 48,080 (3,598) -6.96%

Net Increase (Decrease) in Fund Balance (2,954) 281

* Campus Services Auxiliary includes Retail, Food Services, Housing, Faculty Club, Kingsgate,
Conferencing, Campus Recreation Center, Tangeman University Center/Steger Student Life Center,
Campus Life Fee

32
 Budget History - Campus Services
(In Thousands)
48,361
FY 2009 48,080
281

48,724
FY 2008 51,678
(2,954)

46,145
FY 2007 55,094
(8,949)

57,044
FY 2006 60,019
(2,975)

54,090
FY 2005 54,752
(662)

48,860
FY 2004 48,259
601

(20,000) (10,000) 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000

Resources
Expenditures & Transfers
Net Increase (Decrease) in Fund Balance

33
 CAMPUS SERVICES AUXILIARY
RETAIL
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Sales 3,558 3,326 (233) -6.54%
Student Meals - - - -
Housing - - - -
Rentals - - - -
Contracts 1,600 1,600 - 0.00%
Other 101 35 (65) -64.94%
Miscellaneous Student Fees - - - -
Total Resources 5,259 4,961 (298) -5.67%

EXPENDITURES
Cost of Sales 2,729 2,546 (182) -6.69%
Salaries 100 78 (22) -22.15%
Benefits 42 32 (10) -24.52%
DOE 559 459 (100) -17.83%
University Overhead - - - -
Programming - - - -
Total Expenditures 3,429 3,115 (314) -9.17%

Mandatory Transfers
Debt Service 540 540 - 0.00%
Non-Mandatory Transfers
Reserve for Repairs and Renovations 100 100 - 0.00%
Reserve - Other - - - -
Subsidies to Non-Instructional Activities - - - -
Campus Services Overhead 213 187 (26) -12.41%
Other 35 - (35) -100.00%
Total Expenditures and Transfers 4,317 3,941 (376) -8.71%

Net Increase (Decrease) in Fund Balance 942 1,020

34
 CAMPUS SERVICES AUXILIARY
FOOD
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Sales - - - -
Student Meals 8,664 9,495 831 9.59%
Housing - - - -
Rentals - - - -
Contracts - - - -
Other 1,108 1,026 (81) -7.36%
Miscellaneous Student Fees - - - -
Total Resources 9,772 10,521 750 7.67%

EXPENDITURES
Cost of Sales 6,681 7,118 437 6.54%
Salaries 264 248 (15) -5.83%
Benefits 105 98 (8) -7.34%
DOE 939 860 (79) -8.38%
University Overhead 169 177 8 5.00%
Programming - - - -
Total Expenditures 8,157 8,501 344 4.21%

Mandatory Transfers
Debt Service 581 583 2 0.42%
Non-Mandatory Transfers
Reserve for Repairs and Renovations 100 100 - 0.00%
Reserve - Other - - - -
Subsidies to Non-Instructional Activities - - - -
Campus Services Overhead 213 187 (26) -12.41%
Other - - - -
Total Expenditures and Transfers 9,051 9,370 320 3.53%

Net Increase (Decrease) in Fund Balance 721 1,151

35
 CAMPUS SERVICES AUXILIARY
HOUSING
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Sales - - - -
Student Meals - - - -
Housing 18,586 17,482 (1,104) -5.94%
Rentals - - - -
Contracts - - - -
Other 624 665 41 6.58%
Miscellaneous Student Fees - - - -
Total Resources 19,210 18,147 (1,063) -5.53%

EXPENDITURES
Cost of Sales - - - -
Salaries 2,471 1,974 (497) -20.09%
Benefits 933 792 (140) -15.03%
DOE 7,205 5,599 (1,606) -22.29%
University Overhead 1,058 1,110 52 4.91%
Programming 1,368 1,539 171 12.47%
Total Expenditures 13,036 11,016 (2,020) -15.50%

Mandatory Transfers
Debt Service 6,441 6,313 (129) -2.00%
Non-Mandatory Transfers
Reserve for Repairs and Renovations - - - -
Reserve - Other - - - -
Subsidies to Non-Instructional Activities - - - -
Campus Services Overhead 213 187 (26) -12.41%
Other - - - -
Total Expenditures and Transfers 19,690 17,515 (2,175) -11.05%

Net Increase (Decrease) in Fund Balance (480) 632

36
 CAMPUS SERVICES AUXILIARY
FACULTY CLUB
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Sales - - - -
Student Meals - - - -
Housing - - - -
Rentals - - - -
Contracts (145) (121) 24 -16.22%
Other - - - -
Miscellaneous Student Fees - - - -
Total Resources (145) (121) 24 -16.22%

EXPENDITURES
Cost of Sales - - - -
Salaries - - - -
Benefits - - - -
DOE - 88 88 100.00%
University Overhead - - - -
Programming - - - -
Total Expenditures - 88 88 100.00%

Mandatory Transfers
Debt Service 300 310 10 3.37%
Non-Mandatory Transfers
Reserve for Repairs and Renovations - - - -
Reserve - Other - - - -
Subsidies to Non-Instructional Activities (445) (445) - 0.00%
Campus Services Overhead - - - -
Other - (87) (87) 100.00%
Total Expenditures and Transfers (145) (134) 11 -7.66%

Net Increase (Decrease) in Fund Balance - 12

37
 CAMPUS SERVICES AUXILIARY
KINGSGATE CONFERENCE CENTER
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Sales - - - -
Student Meals - - - -
Housing - - - -
Rentals - - - -
Contracts 2,169 2,192 23 1.07%
Other - - - -
Miscellaneous Student Fees - - - -
Total Resources 2,169 2,192 23 1.07%

EXPENDITURES
Cost of Sales - - - -
Salaries - - - -
Benefits - - - -
DOE - - - -
University Overhead - - - -
Programming - - - -
Total Expenditures - - - -

Mandatory Transfers
Debt Service 1,343 1,340 (3) -0.25%
Non-Mandatory Transfers
Reserve for Repairs and Renovations 100 100 - 0.00%
Reserve - Other - - - -
Subsidies to Non-Instructional Activities - - - -
Campus Services Overhead 213 186 (27) -12.47%
Other - - - -
Total Expenditures and Transfers 1,656 1,626 (30) -1.80%

Net Increase (Decrease) in Fund Balance 513 566

38
 CAMPUS SERVICES AUXILIARY
CONFERENCING
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Sales 201 205 4 1.80%
Student Meals - - - -
Housing - - - -
Rentals - - - -
Contracts - - - -
Other - - - -
Miscellaneous Student Fees - - - -
Total Resources 201 205 4 1.80%

EXPENDITURES
Cost of Sales - - - -
Salaries 115 112 (2) -1.92%
Benefits 40 41 1 2.85%
DOE 47 52 5 9.77%
University Overhead - - - -
Programming - - - -
Total Expenditures 201 205 4 1.75%

Mandatory Transfers
Debt Service - - - -
Non-Mandatory Transfers
Reserve for Repairs and Renovations - - - -
Reserve - Other - - - -
Subsidies to Non-Instructional Activities - - - -
Campus Services Overhead - - - -
Other - - - -
Total Expenditures and Transfers 201 205 4 1.75%

Net Increase (Decrease) in Fund Balance - -

39
 CAMPUS SERVICES AUXILIARY
CAMPUS RECREATION CENTER
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Sales - - - -
Student Meals - - - -
Housing - - - -
Rentals - - - -
Contracts - - - -
Other 1,358 1,072 (286) -21.07%
Miscellaneous Student Fees - - - -
Total Resources 1,358 1,072 (286) -21.07%

EXPENDITURES
Cost of Sales 16 21 5 31.55%
Salaries 1,193 1,003 (190) -15.91%
Benefits 257 260 3 1.31%
DOE 1,711 1,289 (422) -24.68%
University Overhead - - - -
Programming - - - -
Total Expenditures 3,177 2,573 (604) -19.00%

Mandatory Transfers
Debt Service 1,800 1,800 - 0.00%
Non-Mandatory Transfers - - - -
Reserve for Repairs and Renovations - - - -
Reserve - Other - - - -
Subsidies to Non-Instructional Activities (1,054) (1,048) 6 -0.56%
Campus Services Overhead 213 187 (26) -12.41%
Other - - - -
Total Expenditures and Transfers 4,136 3,512 (624) -15.09%

Net Increase (Decrease) in Fund Balance (2,778) (2,440)

40
 CAMPUS SERVICES AUXILIARY
TANGEMAN UNIVERSITY CENTER/STEGER STUDENT LIFE CENTER
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Sales 80 118 38 47.89%
Student Meals - - - -
Housing - - - -
Rentals 35 33 (2) -6.00%
Contracts 441 465 24 5.43%
Other 285 281 (4) -1.44%
Miscellaneous Student Fees - - - -
Total Resources 840 896 56 6.65%

EXPENDITURES
Cost of Sales 32 49 18 55.84%
Salaries 1,070 1,019 (51) -4.75%
Benefits 343 347 4 1.21%
DOE 1,642 1,557 (85) -5.15%
University Overhead - - - -
Programming 250 212 (38) -15.34%
Total Expenditures 3,336 3,184 (152) -4.55%

Mandatory Transfers
Debt Service 320 320 - 0.00%
Non-Mandatory Transfers - - - -
Reserve for Repairs and Renovations - - - -
Reserve - Other - - - -
Subsidies to Non-Instructional Activities (2,658) (2,652) 6 -0.22%
Campus Services Overhead 213 187 (26) -12.41%
Other
Total Expenditures and Transfers 1,211 1,038 (173) -14.25%

Net Increase (Decrease) in Fund Balance (371) (142)

41
 CAMPUS SERVICES AUXILIARY
CAMPUS LIFE FEE
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Sales - - - -
Student Meals - - - -
Housing - - - -
Rentals - - - -
Contracts - - - -
Other - - - -
Miscellaneous Student Fees 10,060 10,488 428 4.26%
Total Resources 10,060 10,488 428 4.26%

EXPENDITURES
Cost of Sales - - - -
Salaries - - - -
Benefits - - - -
DOE - - - -
University Overhead - - - -
Programming - - - -
Total Expenditures - - - -

Mandatory Transfers
Debt Service 11,561 11,006 (555) -4.80%
Non-Mandatory Transfers
Reserve for Repairs and Renovations - - - -
Reserve - Other - - - -
Subsidies to Non-Instructional Activities - - - -
Campus Services Overhead - - - -
Other - - - -
Total Expenditures and Transfers 11,561 11,006 (555) -4.80%

Net Increase (Decrease) in Fund Balance (1,501) (518)

42
 ROOM, BOARD, AND APARTMENT RATES
FISCAL YEAR 2008-09

2007-08 2008-09
Actual Actual

QUARTER ANNUAL QUARTER ANNUAL

1
I. SCHEDULE OF BASIC ROOM RATES
A. Calhoun, Daniels, Siddall, Dabney $1,753 $5,259 $1,841 $5,523
(Multiple Occupancy)

B. Calhoun, Daniels, Siddall, Dabney 2,024 6,072 2,125 6,375

(Designed Singles if available)

C. Turner Hall2 2,075 6,225 2,179 6,537

(Double Suites)

D. Turner, Schneider Halls 2 2,200 6,600 2,310 6,930

(Single Suites)

E. Campus Recreation Center (CRC) 2,200 6,600 2,310 6,930

II. SCHEDULE OF BASIC BOARD RATES

209 Value Plan/Quarter Plan (formerly 19 Meals/Week Plan) 1,180 3,540 1,239 3,717
154 Plan/Quarter Plan (formerly 14 Meals/Week Plan) 1,122 3,366 1,178 3,534
132 Plus Plan/Quarter Plan (formerly 12 Plus Meals/Week Plan) 1,180 3,540 1,239 3,717

III. SCHEDULE OF ROOM AND BOARD RATES

209 Value Plan/Quarter Plan (formerly 19 Meals/Week Plan) 2,933 8,799 3,080 9,240
154 Plan/Quarter Plan (formerly 14 Meals/Week Plan) 2,875 8,625 3,019 9,057
132 Plus Plan/Quarter Plan (formerly 12 Plus Meals/Week Plan) 2,933 8,799 3,080 9,240
IV. OFF CAMPUS MEAL TICKET RATES
45 Meals/Quarter Plan 391 1,173 405 1,215
33 Meals/Quarter Plan 265 795 276 828
25 Meals/Quarter Plan 200 600 214 642
15 Lunch only/Quarter Plan 125 375 140 420

3
V. SCHEDULE OF APARTMENT RATES - PER MONTH

Efficiency without balcony $594 $0

Efficiency with balcony 623 0
One Bedroom 715 0
Two Bedroom 846 0
Penthouse 1,180 0

1) The option of a quarterly residence hall contract is available to upperclassmen as part of a pilot program for an
additional surcharge of $300.
2) The option of signing a twelve month lease is available to Turner Hall and Schneider Hall residents.
This option adds $939 to the annual rate.
3) Beginning August 31, 2008 Housing and Food Services will discontinue operations in Morgens and Scioto Halls
for life safety renovations.

43
 DESIGNATED GENERAL FUNDS
PARKING LOTS AND GARAGES
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Sales and Fines 16,377 16,576 199 1.22%
Total Resources 16,377 16,576 199 1.22%

EXPENDITURES
Administrative and General 2,444 2,362 (82) -3.34%
Operation and Maintenance of Plant 4,554 3,981 (572) -12.57%
University Overhead 500 500 - 0.00%
University Hall Lease - - - -
Total Expenditures 7,498 6,844 (654) -8.72%
Mandatory Transfers
Debt Service 9,275 8,578 (697) -7.51%
Non-Mandatory Transfers
Subsidies to Non-Instructional Activities (48) (48) - 0.00%
Other 10 6 (4) -38.71%
Reserve for Repairs and Renovations 595 1,145 550 92.44%
Total Expenditures and Transfers 17,330 16,525 (805) -4.64%

Net Increase (Decrease) in Fund Balance (953) 51

This budget reflects all parking auxiliaries including branch campuses.

44
 Budget History - Parking
(In Thousands)
16,576
FY 2009 16,525
51

16,377
FY 2008 17,330
(953)

16,499
FY 2007 17,858
(1,359)

15,335
FY 2006 14,683
652

13,861
FY 2005 13,100
761

13,649
FY 2004 12,979
670

(5,000) 0 5,000 10,000 15,000 20,000

Resources
Expenditures & Transfers
Net Increase (Decrease) in Fund Balance

45
 INTERCOLLEGIATE ATHLETICS
(INCLUDING FIFTH THIRD ARENA)
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Sports
Men Basketball 5,408 5,130 (278) -5.15%
Football 6,609 8,046 1,437 21.75%
Gifts 7,000 6,930 (70) -1.00%
Other 3,741 3,730 (11) -0.30%
Total Resources 22,758 23,836 1,078 4.74%

EXPENDITURES
Sports
Basketball 3,430 3,389 (41) -1.18%
Football 7,932 8,805 873 11.01%
Women Sports 5,694 5,210 (484) -8.50%
Other Men Sports 2,288 2,145 (143) -6.27%
Total Sports 19,344 19,549 205 1.06%
Administrative and General 8,686 10,284 1,598 18.40%
Operation and Maintenance of Plant 2,545 3,026 481 18.89%
Total Expenditures 30,575 32,860 2,284 7.47%
Mandatory Transfers
Debt Service 6,439 6,186 (253) -3.92%
Non-Mandatory Transfers
Subsidies to Non-Instructional Activities (11,990) (12,740) (750) 6.26%
Other 80 - (80) -100.00%
Total Expenditures and Transfers 25,104 26,305 1,202 4.79%

Net Increase (Decrease) in Fund Balance (2,346) (2,469)

46
 Budget History - Athletics
(In Thousands)
23,836
FY 2009 26,305
(2,469)

22,758
FY 2008 25,152
(2,394)

18,602
FY 2007 22,364
(3,762)

17,342
FY 2006 23,220
(5,878)

12,943
FY 2005 16,694
(3,751)

15,835
FY 2004 15,835
0

(10,000) (5,000) 0 5,000 10,000 15,000 20,000 25,000 30,000

Resources
Expenditures & Transfers
Net Increase (Decrease) in Fund Balance

47
 V. DESIGNATED GENERAL FUNDS

Overview ........................................................................................................................49

Designated General Funds - Including Hoxworth Blood Center ............................53

Hoxworth Blood Center ......................................................................................54

Designated General Funds - University Service Centers:

UCit .......................................................................................................................55

Consolidated Utilities...........................................................................................56

48
 UNIVERSITY OF CINCINNATI
DESIGNATED GENERAL FUNDS
OVERVIEW
Designated General Funds are those funds that are internally restricted by Board of
Trustees approval for specific activities. Other designated funds are managed at the
departmental level with Vice Presidential and Administration and Finance review. The
designated general funds summary includes Hoxworth Blood Center.

In FY 2008, with the increased ability the new Enterprise Resource Planning (ERP)
System (SAP) provides for review, the University mandated that all designated funds
must be budgeted at a realistic income and expenditure level. This aids implementation
of the new Cash Policy approved by the Board of Trustees in FY 2007, prohibiting the
creation of new overdrawn accounts and requiring that all current deficit accounts be
repaid based on a plan submitted to the Office of Budget Management and agreed upon
by the appropriate Vice President. Since these plans have been put in place, in FY 2008,
there have been approximately $20M in deficit funds eliminated. In FY 2009,
administration expects these deficit funds will be further paid down or eliminated. Total
elimination of deficit fund balances will occur over several future fiscal years. The
Office of Budget Management prevents transfers on already existing overdrafted funds
and is exploring system stops on selected overdrawn funds. For the departmental FY
2009 budget formulation process, fund balance amounts were carefully reviewed and
considered as part of the University-wide budget process.

Designated funds represent an important opportunity for leveraging undesignated general

funds in supporting the overall mission of the institution and providing enhancements.
Incentive programs for sponsored projects and continuing education activities give
departments discretionary funds that are used for instructional programs.

Included in the designated revenue is the income projection for the Information
Technology and Instructional Equipment (IT&IE) fee of $7.4M. This fee is used to fund
improved access to information technology and support other types of instructional
equipment. In FY 2009, for the first time, $200K of these funds will be used to fund
further expansion of much needed E-classrooms on the University campus.

Also included in designated income, projected grant and contract revenue represents the
incentive monies returned to departments for their share of the Sponsored Project
Incentive Award Program. Instruction and departmental research are supported by the
use of these funds. They remain an important source of flexibility for departments. This
income rises or declines in relation to the increase or decrease in grants and contracts
awarded to the University. (The formula allocation for the distribution of these funds is
detailed in the restricted funds section of this budget.)

FY 2009 is the tenth year in which OBR Challenge program income is being
incorporated into the Undesignated General Fund. Transfers based on this income are
made to designated funds to support both existing programs and policies that contribute
toward the goals of each Challenge program. The Undesignated General Funds category
49
within designated reflects $5.5M of transfers to meet these program goals. With the
creation of the new University System of Ohio (USO), there is a possibility beginning in
FY 2010 that these funds will be placed into the new subsidy formula currently being
considered and the means of distribution could drastically change.

Hoxworth Blood Center

Under the leadership of Ronald A. Sacher, MD, Hoxworth continued to achieve its
strategic goals as our community’s only blood center, providing blood, blood components
and blood-related services for the patients in the 29 tri-state hospitals we serve.
Achievements for Hoxworth over the past year included the following:

• In FY 2007, Hoxworth Blood Center collected 90,045 red cell units and 6,998
single-donor platelet products from community blood donors.
• Over 8,300 donors were recognized with gallon awards for red cell and platelet
donations. These awards ranged from one-gallon recognitions to one outstanding
68-gallon recognition.
• Our Triple Double Program, intended to encourage donors to use our automated
technology and donate two red cells instead of one, continued to be a success. 788
donors participated, an 18% increase over the previous fiscal year. Each donor
received special recognition for their achievement.
• Hoxworth faculty and staff published 14 articles in peer-reviewed literature and
presented over 31 abstracts and presentations at various national meetings and
conferences.
• The Cincinnati Bengals blood drive was the most successful ever, with 699
donors registered. This event continues to grow, and is of immense benefit to the
community. We thank Coach Marvin Lewis, player spokesman Caleb Miller, and
the entire Bengals organization for their continued support. Also at this year’s
event, 140 donors signed up for the national bone marrow registry, including
Coach Lewis and All-Pro running back Rudi Johnson.
• Hoxworth purchased 7 Abbott Cell-Dyn 1800’s (automated hematology
analyzers) for use in our TRIMA platelet collection sites. This instrumentation
has helped us resolve manufacturing issues that led to some product loss. It also
has helped us obtain greater control over the process and will allow for the
implementation and collection of a platelet “triple” product in the near future.
• Hoxworth received $25,000 from the Frances Luther Foundation, $25,000 from
the Dornette Foundation, and $5,000 from the Haemonetics Foundation for
additional funding for the Minority Recruitment Program.
• Hoxworth’s Downtown neighborhood donor center location celebrated its 20th
anniversary with a special donor breakfast. Hoxworth’s Mason neighborhood
donor center celebrated its one-year anniversary in conjunction with the Mason
Chamber of Commerce.
• Hoxworth’s Cell Therapy Division has been working with the UC Department of
Surgery to provide processing and quality assurance support for their autologous
pancreatic islet cell isolation procedure.
50
 • On December 1, 2007, we implemented testing to detect the antibody to the agent
responsible for Chagas’ disease.
• On December 17, 2007, we began providing blood products to Mercy Fairfield
Hospital. We welcome our 29th hospital to the Hoxworth family.
• Hoxworth continues in strategic planning; now focusing on donor recruitment.
Critical success factors include donor relationship management, our people and
our donors, coordinator relationship management, and internal processes.

University Service Centers

The final two tables in this section represent the budgets for the two largest University
Service Centers. These are centers that provide products or services to the entire
University community, and charge rates to the various funds to recover their costs. These
schedules cannot be summed with the other Designated Fund schedules to determine a
total for the fund, because their income is accounted for as an offset to expenditures.
While they function as self-supporting entities over time, they are presented here due to
their relative size when compared to other funds and departments.

Listed below are some of the accomplishments and current initiatives underway in UCit.

UCit@Langsam
UCit and University Libraries opened up UCit@Langsam in FY 2008, a new 24/7 student
computer lab and study space. UCit@Langsam is a collaborative initiative of University
Libraries and UCit with support from the Provost’s Office, UC Student Government and
a UC|21 grant.

Blackboard Hosting
For FY 2009, UCit will continue to generate revenue through its Blackboard hosting
services. Currently, Mount Vernon Nazarene and Ursuline College have expressed
interest in these services. Continuing Blackboard hosting clients include the Archdiocese
of Cincinnati, Edison Community College, Marion Technical College, Capital
University, Cincinnati State, Columbus State Community College, Ohio Wesleyan
University, and Denison University.

UC Mobile
UCit’s ongoing partnership with Cincinnati Bell realized the largest wireless hotspot in
the Cincinnati region. UC and Cincinnati Bell created an innovative WiFi network,
deploying a wireless mesh of Cisco WiFi equipment that integrates with the university’s
wireless network to provide free WiFi access to students and faculty and guests across an
area of five square miles.

Registrar Support
UCit implemented a new online application for admission and a new admission
confirmation form. About 94% of admissions applications now go through the online
application. The admission confirmation form determines a student’s residency based on
a student’s answers to a series of questions. This determination is a budget savings and
an efficiency improvement by reducing the need for the Registrar’s Office to read every

51
application and manually determine residency. UCit also launched the Degree Programs
system, a web application where colleges can add specific information to their published
degree programs and display them on the web, a recruiting and information resource for
applicants.

Information Security
UC’s Information Security area has taken several steps to enhance security at the
university, including:
• software that monitors changes and abnormal behavior across UC’s production
databases containing SSNs and other personally identifiable information
• offering an encryption service that allows UC business units and colleges to
encrypt regulated data like electronic health data or SSNs
• effecting vulnerability scans that indicate security levels of university systems
• implementing an identity management process, creating a stronger level of access
to UC systems through stronger and more efficient management of passwords

52
 DESIGNATED GENERAL FUNDS
INCLUDING HOXWORTH BLOOD CENTER
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Gross Tuition, Fee and Other Student Charges 19,178 19,409 231 1.20%
Less Scholarships and Fellowships
Net Tuition, Fee and Other Student Charges 19,178 19,409 231 1.20%

Govt and Private Grants and Contracts 10,232 15,946 5,714 55.84%
Private Gifts 225 60 (165) -73.33%
Endowment Income 1,052 1,214 162 15.38%
Sales and Service 60,072 61,843 1,771 2.95%
Other Sources 6,587 2,729 (3,857) -58.56%
Total Resources 97,346 101,202 3,856 3.96%

EXPENDITURES
Educational and General
Instructional and General 10,624 12,035 1,411 13.29%
Separately Budgeted Research 12,272 7,906 (4,366) -35.58%
Public Services 46,889 47,784 895 1.91%
Academic Support 20,641 23,198 2,557 12.39%
Student Services 14,095 13,917 (178) -1.26%
Institutional Support 11,582 11,590 8 0.07%
Operation and Maintenance of Plant (1,967) (1,756) 210 -10.69%
Scholarships and Fellowships 1,339 1,040 (299) -22.36%
Total Educational and General 115,476 115,714 238 0.21%

Auxiliary Enterprises
Mandatory Transfers
Debt Service 13,822 17,513 3,691 26.70%
Nonmandatory Transfers
Subsidies to Non-Instructional Units
Undesignated General Funds (11,821) (14,821) (3,000) 25.38%
Other (7,733) (6,860) 873 -11.28%
Claims on Operations Repayment (2,100) (2,100) - 0.00%
Total Expenditures and Transfers 107,644 109,446 1,802 1.67%

Net Increase (Decrease) In Fund Balance (10,298) (8,244)

53
 DESIGNATED GENERAL FUNDS
HOXWORTH BLOOD CENTER
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Services Provided 34,814 39,866 5,052 14.51%
Interest Income 219 225 6 2.96%
Total Resources 35,033 40,091 5,058 14.44%

EXPENDITURES
Compensation 15,714 16,689 975 6.20%
Other 17,003 20,324 3,321 19.53%
Total Educational and General 32,717 37,013 4,296 13.13%

Mandatory Transfers
Debt Service - - - -
Non-Mandatory Transfers - - - -
Plant Funds 1,300 1,350 50 3.85%
Total Expenditures and Transfers 34,017 38,363 4,346 12.77%

Net Increase (Decrease) in Fund Balance 1,016 1,728

54
 DESIGNATED GENERAL FUNDS
UCit
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Recovery - General Fund 10,300 10,263 (37) -0.36%
Recovery - Other 17,960 18,829 869 4.84%
Total Resources 28,260 29,092 832 2.95%

EXPENDITURES
Compensation 14,070 15,284 1,214 8.63%
All Other 9,827 11,241 1,413 14.38%
Total Expenditures 23,897 26,524 2,628 11.00%
Mandatory Transfers
Debt Service 1,000 800 (200) -20.00%
Non-Mandatory Transfers
Plant Fund 500 750 250 50.00%
Other Transfers 1,704 1,550 (154) -9.04%
Total Expenditures and Transfers 27,101 29,624 2,524 9.31%

Net Increase (Decrease) in Fund Balance 1,159 (532)

This budget reflects resources and expenditures for a University Service Center. A University Service
Center is an entity which provides a service or product on a continuing basis to the University Community
(sometimes including the public) and charges the user a predetermined rate which is calculated to recover
the total cost of operation over a specified period of time.

55
 DESIGNATED GENERAL FUNDS
CONSOLIDATED UTILITIES
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
Recovery - Steam 20,647 26,389 5,742 27.81%
Recovery - Chilled Water 14,455 16,172 1,717 11.88%
Recovery - Electric 25,295 30,381 5,086 20.11%
Recovery - Water and Sewage 1,951 2,907 957 49.04%
Total Resources 62,347 75,849 13,502 21.66%

EXPENDITURES
Compensation 4,613 4,442 (171) -3.70%
All Other 44,627 56,626 11,999 26.89%
Total Expenditures 49,239 61,068 11,828 24.02%
Mandatory Transfers
Debt Service 5,518 5,248 (270) -4.89%
Non-Mandatory Transfers
Plant Fund 1,600 1,493 (107) -6.69%
Undesignated Central (15) - 15 -100.00%
Designated Central - - - -
Other 6,310 8,142 1,832 29.03%
Total Expenditures and Transfers 62,652 75,950 13,298 21.23%

Net Increase (Decrease) in Fund Balance (305) (101)

This budget reflects resources and expenditures for a University Service Center. A University Service
Center is an entity which provides a service or product on a continuing basis to the University Community
(sometimes including the public) and charges the user a predetermined rate which is calculated to
recover the total cost of operation over a specified period of time.

56
 VI. RESTRICTED FUNDS

Overview ........................................................................................................................58

Restricted Funds ...........................................................................................................60

57
 UNIVERSITY OF CINCINNATI
RESTRICTED FUNDS
OVERVIEW
Restricted Funds are those funds that the University receives that have been designated
by an external agency or individual and are limited to the support of a specific purpose
and/or unit. Included in this group are gift funds, the earnings on endowments, and both
private and governmental grants and contracts. Restricted funds are under the local
control of colleges and Vice Presidential areas within the external restrictions imposed.
Actual income must have been received, or guaranteed from these sources before
expenditure budgets are approved. These funds are reviewed centrally based on the
University Cash policy and are an important addition to the University budget, in terms
of their leveraging effects to the undesignated general fund.

Restricted fund revenue sources have been aggressively pursued, and the results of those
efforts are being realized in the current fiscal year. We are anticipating revenues in
excess of expenses for FY 2009 of approximately $52K.

State appropriations are primarily funds retained by the College of Medicine for Clinical
Teaching Subsidy. A variety of programs are supported at the College with this
important source of funds. In future bienniums, pressure will be placed on the University
to protect these funds based on the new allocation formula that is expected to be
established by the USO.

The University of Cincinnati, classified as a Very High Research Activity University by

the Carnegie Commission and ranked as one of America’s top 25 public research
universities, is an institution with a rich history in discovery and innovation. It is our
history that has established UC as a leading research institution, and that great tradition
of excellence continues today as we see our research enterprise grow to more than
$330M including affiliates.

Grants and contract income is received from both private and governmental research.
Projections for this income category for FY 2009 are projected to be flat as compared to
FY 2008.

Starting July 1, 2008, the distribution formula for Facilities and Administrative costs
(also called indirect costs) associated with sponsored research as well as technical
assistance agreements will be revised as follows:

General Funds 52%

Research Support 21%
Provost 1.5%
Deans 3.5%
Departments 22%

58
This adjusts the distribution of indirect costs across the campus from historical amounts
to a more transparent and straight forward distribution.

Endowment income continues to rise, with anticipated continued growth in this category
for FY 2009 based on a 3-year change in the endowment spending policy which
increased from 5% to 6% and the anticipated kick-off in October of the University
Campaign with an $800M fundraising goal over several years.

59
 RESTRICTED FUNDS
(IN THOUSANDS)

2008
2009
Budget Percent
Projected Variance
As Of Change
Budget
3/31/08
RESOURCES
State Appropriations 13,388 13,083 (305) -2.28%
Government, Private Grants and Contracts 207,269 207,546 277 0.13%
Private Gifts 37,536 34,606 (2,930) -7.80%
Endowment Income 67,530 71,050 3,521 5.21%
Temporary Investments 74 75 0 0.60%
Other 517 525 8 1.57%
Total Resources 326,314 326,885 571 0.18%

EXPENDITURES
Educational and General
Instruction and Department Research 60,199 60,310 111 0.18%
Separately Budgeted Research 141,909 142,068 159 0.11%
Public Service 7,668 7,847 178 2.33%
Academic Support 14,935 14,951 16 0.11%
Student Services 3,577 3,411 (166) -4.65%
Institutional Support 8,128 8,415 287 3.53%
Operation and Maintenance of Plant - - - -
Scholarships and Fellowships 40,680 40,872 191 0.47%
Total Educational and General 277,096 277,872 777 0.28%

Mandatory Transfers
Debt Service - - - -
Non-Mandatory Transfers
Other 49,129 48,961 (168) -0.34%
Total Expenditures and Transfers 326,225 326,833 608 0.19%

Net Increase (Decrease) in Fund Balance 89 52

60
 UC|21 THE NEW URBAN RESEARCH UNIVERSIT Y

Fiscal year 2008

UC Budget
UC Audited Financial report

FY 08
A133 audit statement

University of Cincinnati
CURRENT FUNDS
BUDGET PLAN
FY 2007-2008

Prepared By
The Office of the VP for Finance

July 17, 2007

BOARD OF TRUSTEES
Jeffery L. Wyler
Chairperson

C. Francis Barrett

Anant Ram Bhati

Margaret E. Buchanan

Phillip R. Cox

Gary Heiman

Sandra W. Heimann

Thomas H. Humes

H. C. Buck Niehoff
 TABLE OF CONTENTS
GENERAL

Current Funds Budget Summary..................................................................................2

Summary of Budgeted Resources and Expenditures - Total University ...................3

Summary of Budgeted Resources and Expenditures - Total University Graphs

Budgeted Resources by Source ..................................................................4
Budgeted Expenditures by Function .........................................................4
Selected Definitions.........................................................................................................5

Undesignated General Funds - Uptown Campus.........................................................8

Undesignated General Funds - Branches ...................................................................13

Student Fees & Historical Data ...................................................................................18

Designated General Funds – Hoxworth Blood Center ..............................................24

Auxiliary Operations ....................................................................................................28

Designated General Funds – Millennium Research Institute...................................40

Other Designated Funds...............................................................................................45

Restricted Funds ...........................................................................................................51

 FISCAL YEAR 2007-2008
CURRENT FUNDS BUDGET SUMMARY
(IN THOUSANDS)

FULL BUDGET AUTHORITY FUND CONTROLLED AUTHORITY

Designated Designated
Undesignated Undesignated Other Total
General Funds Auxiliary General Funds Restricted
General Funds General Funds Subtotal Designated Subtotal Current
Hoxworth Enterprises Millennium Funds
Uptown Campus Branches General Funds Funds
Blood Center Research Inst.
RESOURCES
Gross Tuition, Fee and Other Student Charges 296,023 27,846 10,060 333,929 19,178 19,178 353,107
Less Scholarships and Fellowships (69,338) (368) - (69,706) - - (69,706)
Net Tuition, Fee and Other Student Charges 226,685 27,478 10,060 264,223 19,178 19,178 283,401

State Appropriations (State Share of Instruction) 152,349 16,102 168,451 13,388 13,388 181,838
State Appropriations (Challenges) 8,531 2,526 11,057 - 11,057
Govt and Private Grants and Contracts 13,001 43 13,045 4,000 19,232 207,269 230,501 243,546
Private Gifts 1,177 7,000 8,177 225 39,486 39,711 47,888
Endowment Income 1,449 1,449 834 67,530 68,364 69,812
Sales and Service 10 15 34,814 34,839 22,449 22,449 57,289
Temporary Investments 1,670 219 1,889 76 76 1,965
Other Sources 2,510 57 2,567 - 2,577 981 3,558 6,125
Auxiliary Enterprises 70,800 70,800 - 70,800
Total Resources 407,382 46,221 35,033 87,860 576,496 4,000 64,495 328,730 397,225 973,721

EXPENDITURES
Educational and General

2
Instructional and General 203,224 26,479 229,703 9,541 62,140 71,681 301,383
Separately Budgeted Research 2,611 2,611 7,174 10,762 150,277 168,213 170,824
Public Service 2,084 288 32,717 35,089 12,953 8,381 21,334 56,423
Academic Support 42,108 4,437 46,546 12,283 16,314 28,597 75,143
Student Services 17,453 3,734 21,187 12,459 3,843 16,302 37,489
Institutional Support 43,275 6,402 49,677 12,716 2,963 15,679 65,356
Operation and Maintenance of Plant 49,154 4,451 53,605 4,596 - - 4,596 58,201
Scholarships and Fellowships - - 874 35,436 36,310 36,310
Budget Cut Reserve* - - - -
Total Educational and General 359,909 45,792 32,717 - 438,418 11,770 71,588 279,354 362,712 801,130

Auxilliary Enterprises 69,450 69,450 - - 69,450

Mandatory Transfers
Loan Fund Matching - - - -
Debt Service 21,771 - - 38,600 60,371 6,909 6,162 - 13,071 73,442
Nonmandatory Transfers
Subsidies to Non-Instructional Units 15,978 259 (16,236) - - -
Plant Funds 342 5 1,300 895 2,542 - - 2,542
Designated 11,204 11,204 (11,204) (11,204) -
Other (3,921) 166 1,403 (2,353) (12,000) - 49,283 37,283 34,930
Claims on Operations Repayment 2,100 2,100 (2,100) (2,100) -
Total Expenditures and Transfers 407,382 46,221 34,017 94,111 581,731 6,678 64,445 328,637 399,761 981,492

Net Increase (Decrease) In Fund Balance - - 1,016 (6,251) (5,235) (2,678) 49 93 (2,536) (7,771)

* No FY 08 budget cut unless there is a negotiated AAUP salary increase

 SUMMARY OF BUDGETED RESOURCES AND EXPENDITURES
TOTAL UNIVERSITY
(IN THOUSANDS)

2007
2008 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Gross Tuition, Fee and Other Student Charges 344,761 353,107 8,346 2.42%
Less Scholarships and Fellowships (66,165) (69,706) (3,540) 5.35%
Net Tuition, Fee and Other Student Charges 278,596 283,401 4,805 1.72%

State Appropriations (State Share of Instruction) 171,329 181,838 10,509 6.13%

State Appropriations (Challenges) 10,765 11,057 292 2.71%
Govt and Private Grants and Contracts 246,482 243,546 (2,936) -1.19%
Private Gifts 47,856 47,888 32 0.07%
Endowment Income 66,029 69,812 3,784 5.73%
Sales and Service 54,498 57,289 2,791 5.12%
Temporary Investments 2,628 1,965 (663) -25.22%
Other Sources 4,829 6,125 1,296 26.83%
Auxiliary Enterprises 66,092 70,800 4,708 7.12%
Total Resources 949,103 973,721 24,618 2.59%

EXPENDITURES
Educational and General
Instructional and General 297,798 301,383 3,585 1.20%
Separately Budgeted Research 170,460 170,824 365 0.21%
Public Service 54,480 56,423 1,943 3.57%
Academic Support 73,536 75,143 1,607 2.18%
Student Services 36,281 37,489 1,208 3.33%
Institutional Support 63,201 65,356 2,155 3.41%
Operation and Maintenance of Plant 57,347 58,201 854 1.49%
Scholarships and Fellowships 34,644 36,310 1,666 4.81%
Budget Cut Reserve* - - - -
Total Educational and General 787,747 801,130 13,383 1.70%

Auxiliary Enterprises 69,815 69,450 (365) -0.52%

Mandatory Transfers
Loan Fund Matching - - -
Debt Service 67,470 73,442 5,972 8.85%
Nonmandatory Transfers
Subsidies to Non-Instructional Units - - - -
Plant Funds 2,742 2,542 (201) -7.31%
Designated - - - -
Other 46,749 34,930 (11,819) -25.28%
Claims on Operations Repayment - -
Total Expenditures and Transfers 974,523 981,492 6,969 0.72%

Net Increase (Decrease) In Fund Balance (25,419) (7,771)

* No FY 08 budget cut unless there is a negotiated AAUP salary increase

3
 SUMMARY OF BUDGETED RESOURCES AND EXPENDITURES
TOTAL UNIVERSITY

RESOURCES BY SOURCE

Auxiliary Enterprises
7%

Net Tuition, Fees & Other

Other Resources Student Charges
19% 29%

Govt. & Private Grants & State Appropriations

Contracts 20%
25%

EXPENDITURES BY FUNCTION

Auxiliary Enterprises
7%
Nonmandatory Transfers
4%
Instructional & General
30%
Mandatory Transfers
7%

Scholarships &
Fellowships
4%
Operation & Maintenance
of Plant
6%

Institutional Support
7%

Student Services
4%
Separately Budgeted
Academic Support Research
8% Public Service 17%
6%

4
 SELECTED DEFINITIONS
♦ Current Funds are those funds that are earned and expended in the current fiscal
year. They include the General Funds and Restricted Funds. Excluded entirely from
this report are Non-Current Funds such as Plant Funds, Loan Funds and Endowment
Principal.

♦ Undesignated General Funds are unrestricted resources available for allocation in

support of core instruction, instructional support and related general administrative
and physical plant expenditures. The university maintains a separate undesignated
general fund for the Uptown campus and one for each of the branches.

♦ Designated General Funds are those funds which are internally restricted by Board
of Trustee approval for specific activities.

♦ Restricted Funds are funds for which the use has been designated by an external
agency or individual and limited to support a specific purpose and/or unit.

♦ Instructional and Departmental Research includes all direct and applicable

allocated expenditures for all activities that are part of the University's instructional
program. It includes expenditures for departmental research and public service that
are not separately budgeted.

♦ Academic Support includes all funds expended for activities carried out primarily to
provide support services that are an integral part of the operations of one of the three
primary missions -- instruction, research and public service. Included in this category
are Academic Affairs Administration, Libraries, Museums & Galleries and the
Deans’ offices.

♦ Student Services includes funds expended for those activities for which the primary
purpose is to contribute to the student's emotional and physical well being, as well as
his/her cultural and social development outside the context of the formal instructional
program. Included in this category are Admissions and Registration, Counseling, and
Student Financial Aid.

♦ Institutional Support contains expenditures for operations that provide support

services to the total University. Included in this category are Executive Management,
Finance, Human Resources, Administrative Services, Public Affairs and
Development.

♦ Plant Operations and Maintenance includes all expenditures of current funds for the
operation and maintenance of the physical plant, net of amounts charged to auxiliary
operations and the hospital. Included in this category are utilities, repair and
renovations, custodial services, grounds maintenance, space rental and property
insurance.

5
♦ Separately Budgeted Research includes all expenditures for activities specifically
organized to produce research outcomes, whether commissioned by an external
agency to the University (restricted) or the University (unrestricted) and includes
matching funds applicable to the conditions set forth by the grant or contract.

♦ Public Service includes all funds expended for activities that are established
primarily to provide noncredit designated course offerings and services beneficial to
individuals and groups external to the University. Included in this category are
Continuing Education and Cooperative Extension Services.

♦ Scholarships and Fellowships include expenditures in the form of outright grants

and trainee stipends to individuals enrolled in formal course work.

♦ Auxiliaries are specifically identified by the State as the following earnings

operations: Residence & Dining Halls, Intercollegiate Athletics, Student Unions,
Bookstores, Parking Lots & Garages, Kingsgate Conference Center, the Campus
Recreation Center, Faculty Club, and the Fifth Third Arena at the Myrl H. Shoemaker
Center.

♦ IT&IE Fee is the Information Technology and Instructional Equipment fee charged
to all undergraduate, graduate and professional students (except Medicine programs)
for the purpose of improving access to and assistance with information technology
and to fund other types of instructional equipment.

♦ Nonresident Surcharge equates to the full cost of instruction for non-Ohio residents.
The Ohio Board of Regents subsidy policy does not provide support for out-of-state
undergraduate students.

♦ Campus Life Fee is the fee charged to all undergraduate, graduate and professional
students (except Raymond Walters College and Clermont College) for the purpose of
developing a new Student Union and state-of-the-art recreation facility.

♦ SSI – Historically, the State Share of Instruction has been the formula driven state
funding as recommended and approved by the Governor and the State Legislature.
This methodology is being reviewed for modification.

♦ Access Challenge – These funds are meant to reduce or freeze the tuition levels for
students obtaining a two-year degree at public institutions in Ohio. While most of
these funds go to two-year campuses, including our branches, the Uptown campus
receives funds for the students at the Center for Access and Transition. These funds
have been used as previously mentioned.

♦ Jobs Challenge – This program allocates funds in proportion to the amount of

income generated by worker training programs at each campus. It is a small amount
(under $100,000) on the Uptown campus, as well as for the two branch campuses.
These funds are currently viewed as restricted in nature.

6
♦ Success Challenge – This program is aimed at increasing the success of four-year
students and shortening the length of time to degree completion. As a major source
of funding, it is providing the opportunity to target new services and programs at
students having difficulty making normal academic progress. Part of these funds
assist in keeping our past fee increases below the past State fee cap and the State
average. The funds are allocated in proportion to the number of “at risk or under-
prepared” students enrolled and how they perform.

♦ Research Challenge – This program, which matches State funding for research to the
level of research grant holdings, has been around for many years. This funding is
being included with the other Challenge programs in our unrestricted income. Thus,
it can apply to new allocations or help support existing allocations.

♦ Priorities in Graduate Education – This is a focused program to improve key

graduate programs that will drive Ohio’s economy in the next century.

♦ FTE – Full Time Equivalent student, based on a 15 credit hour load per quarter.

7
 I. UNDESIGNATED GENERAL FUNDS
UPTOWN CAMPUS

Undesignated General Funds - Overview.....................................................................9

Undesignated General Funds Budget - Uptown Campus .........................................12

8
 UNIVERSITY OF CINCINNATI
UNDESIGNATED GENERAL FUNDS
UPTOWN CAMPUS
OVERVIEW

The Uptown Campus budget is the “core” university budget, comprising about 42% of
the total. Given its size and impact, the Uptown budget sets the basic direction for the
entire all-funds budget. For example, the Uptown Campus budget determines the tuition
policy for the vast majority of students, as well as the compensation policy for staff. The
primary income sources for the Uptown budget are tuition income and State Share of
Instruction (SSI) from the State of Ohio, which is based on our student complement.

To address our fiscal condition, the university adopted a three-pronged, short-term

budget strategy that brought increased financial stability during FY 2007. First, we
changed our business practices to promote fiscal discipline and responsible planning. We
made key personnel changes and consolidated two major administrative divisions into the
Division of Administration and Finance. In addition, we realized significant cost savings
by offering an early retirement incentive plan, abolishing over 100 positions, freezing
salaries for administrative staff, reducing our energy consumption, restructuring
employee benefits, and halting major building projects.

Second, we established a budget process based on realistic revenue and expense

assumptions – especially on tuition assumptions. For the first time in many years, FY
2007 tuition projections came remarkably close to our target, which made current year
adjustments unnecessary. The same held true on the expense side. For example, the FY
2007 utilities budget included the proper level of inflation, so expenditures stayed within
budget. The result is that the FY 2007 Uptown budget will close with a small amount
available for budget reserves. Furthermore, the budget corrections made in FY 2007 will
have positive effects in FY 2008 and beyond.

The final prong of the short-term strategy was the implementation of our cash policy,
approved by the Board of Trustees in November 2006. The policy requires UC to build
its operating cash to a level appropriate for an institution of our size and complexity
according to industry standards. We are now creating internal business practices and
policies that will prohibit overspending of approved budgets and will help us contain
costs and enhance efficiencies, while complying with all government regulations. In
addition, we have developed payback plans to address negative funds balances. As an
immediate measure to improve our cash position, a temporary transfer of administrative
quasi endowment funds was completed in spring quarter.

In addition to these short-term strategies, the university has developed a toolbox of

practices that will help us achieve increases in revenue going forward. An essential tool
in the toolbox is UC’s transparent and participatory decision-making process, which is
structured around key committees with multiple constituencies. These committees have
been active in developing and approving the FY 2008 budget. Among these committees

9
include the Academic Coordinating Committee (ACC), which focuses on strategic
enrollment management, compliance and intellectual property issues; and the Fiscal
Operating Committee (FCC), which facilitates integrated decisions around fiscal
planning and priorities, including tuition and discounts. Both of these groups make
recommendations to the Academic Operations Committee, which together with the
President’s Budget Advisory Committee (PBAC), sends approved policies to the
Executive Committee, President’s Cabinet, President and finally on to the Board of
Trustees.

Also in the toolbox is UC’s Columbus strategy and the new leadership at the Inter-
University Council of Ohio (IUC). Thanks to these state-level efforts higher education
has begun to get the much deserved attention from both the Governor and Legislature.
The new state budget demonstrates a clear consensus among state leaders that strategic
investment in higher education is key to expanding Ohio’s economic opportunity and
development. As encouraged as we are by legislators making higher education a clear
budget priority, it’s important to understand that this is the first step in what must be a
sustained, significant investment in our colleges and universities. UC has pledged to do
its part by reviewing its programs to continue to improve efficiency and productivity,
while still continuing to invest in the quality programs and services our students demand
and deserve. The FY 2008 budget showcases that the real winners in this year’s budget
process are Ohio students and their families for whom a college education, with its
attendant benefits and opportunities, will become more affordable and accessible.

The following Uptown Campus budget for FY 2008 is balanced and requires no budget
reductions at this time. Highlights on the revenue side include a projection of 449 new
undergraduate FTE and a zero percent increase in undergraduate tuition and fees.

We begin the new academic year with capped enrollments, a first in many years.
Furthermore, undergraduate students will not experience an increase in their tuition and
fees for FY 2008. However, there is a $450 per year tuition increase for all graduate and
professional students. There is also a $500 per year additional increase for the College of
Law professional students and an additional 2% increase for College of Medicine (COM)
MD professional students. These additional increases for Law and COM MD
professional students go directly to these colleges for program support. Due to the zero
increase in undergraduate tuition income, the budget does not include an increase in
departmental scholarships, which were previously offset by tuition increases. State Share
of Instruction (SSI) income has increased $8.6M. Of that, $1.4M was awarded in FY 07
but not budgeted permanently due to cautious SSI projections on our part. The remaining
amount - $7.2M- of the SSI increase will partially offset the zero tuition increase.

Also built into the FY 2008 budget are numerous new and expanded academic
entrepreneurial revenue neutral programs that have the potential of producing $4M in
additional revenues that will offset related expenditures. These programs range from
Uptown on campus offerings to distance learning to RCC (Resident Credit Center)
offerings at our branch campuses.

10
On the expense side of the FY 2008 budget, $3.3M is included for salary and benefits
increases for represented and unrepresented employees. Unrepresented inflation is
included at a 2% factor. Excluded from these plan/figures are any increases to staff
benefits for strict inflation to correct the general fund level, and any increase amount for
AAUP, as negotiations are currently underway. Each 1% increase allocated towards an
AAUP increase will require an additional $1.8M to fund salary, benefits and promotions
and may require a budget reduction across the Uptown campus to fund such an increase.

Other expenditures increases in the FY 08 Budget Plan include $1.7M to increase debt
service for UCFlex, primarily for the HR portion of the new system implementation. Also
of importance is $1.4M added to the central utility budget to complete the proper funding
level instituted in the FY 07 plan. Other transfers have been added for MainStreet,
Olympic Sports, Varsity Village, and Title IV funding for approximately $1.8M.
Approximately $1M is also added for debt service related to Medical Sciences Building
(MSB) construction. Finally, an addition of $400K for an increase to the amount of
graduate student health insurance funded by the University is included.

In summary, while this budget cycle and preparation have been challenging, the process
provided an opportunity for enhanced fiscal management and planning that was closely
aligned with UC|21 and academic priorities and was undertaken in a transparent and
participatory manner.

Going forward, we remain committed to academic and fiscal effectiveness and

efficiencies, taking advantage of tools already in place and developing new ones to help
us achieve sustainable growth. Therefore, the new fiscal year will bring the
implementation of policies on the use of purchase cards, travel expenditures, conflict of
interest and others. We will also set the stage for moving from a quarter to semester
system and explore areas of service duplication where we can increase efficiencies.
However, beyond good stewardship of our revenues, we must also find new ways to
grow our revenue base. To that end, we will explore enrollment, innovation and
economic development opportunities. We have already started to examine the viability of
turning some of our fixed assets into assets that can work for UC now and in the future.
These kinds of measures and strategies, explored and pursued with discipline and energy,
will help us achieve our academic ambitions.

11
 UNDESIGNATED GENERAL FUNDS
UPTOWN CAMPUS
(IN THOUSANDS)

2007
2008 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Gross Tuition, Fee and Other Student Charges 286,873 296,023 9,150 3.19%
Less Scholarships and Fellowships (65,802) (69,338) (3,535) 5.37%
Net Tuition, Fee and Other Student Charges 221,071 226,685 5,614 2.54%

State Appropriations (State Share) 143,746 152,349 8,603 5.98%

State Appropriations (Challenges) 8,531 8,531 - 0.00%
Govt and Private Grants and Contracts 13,001 13,001 - 0.00%
Private Gifts 1,177 1,177 - 0.00%
Endowment Income 1,449 1,449 - 0.00%
Sales and Service 10 10 - 0.00%
Temporary Investments 2,270 1,670 (600) -26.43%
Other Sources 2,510 2,510 - 0.00%
Total Resources 393,765 407,382 13,617 3.46%

EXPENDITURES
Educational and General
Instructional and General 200,588 203,224 2,636 1.31%
Separately Budgeted Research 2,099 2,611 513 24.43%
Public Services 1,425 2,084 659 46.20%
Academic Support 41,527 42,108 581 1.40%
Student Services 17,076 17,453 377 2.21%
Institutional Support 42,849 43,275 426 0.99%
Operation and Maintenance of Plant 48,447 49,154 706 1.46%
Budget Cut Reserve* - - - -
Total Educational and General 354,011 359,909 5,898 1.67%

Mandatory Transfers
Loan Fund Matching
Debt Service 15,904 21,771 5,867 36.89%
Nonmandatory Transfers
Subsidies to Non-Instructional Units 14,100 15,978 1,878 13.32%
Plant Funds 342 342 - 0.00%
Designated 11,229 11,204 (25) -0.22%
Other (3,921) (3,921) - 0.00%
Claims on Operations Repayment 2,100 2,100 - 0.00%
Total Expenditures and Transfers 393,765 407,382 13,617 3.46%

Net Increase (Decrease) In Fund Balance - -

* No FY 08 budget cut unless there is a negotiated AAUP salary increase

12
 I. UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES

Undesignated General Funds Branches - Overview..................................................14

Undesignated General Funds Budget - Branch Campuses .......................................15

Raymond Walters College...................................................................................16

Clermont College .................................................................................................17

13
 UNIVERSITY OF CINCINNATI
UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES
OVERVIEW
In FY 2008, due to higher than average enrollment increases at the branch campuses in
recent years and new State funding, State Share of Instruction is projected to increase at
the branches. Tuition and fees will remain unchanged due to the related provisions in the
State of Ohio budget.

RAYMOND WALTERS COLLEGE

Raymond Walters College is being proactive in planning for enrollment and income
changes. Raymond Walters College is realigning the budget to meet expected changes in
enrollment. Should we realize additional income, this income will focus on several of the
criteria outlined in UC|21 with Student-Centered and Technology initiatives taking
priority.

We will be using capital funds to upgrade several classrooms in Muntz Hall to enhance
the learning and teaching process.

CLERMONT COLLEGE

FY08 will be a dynamic year for Clermont College in several ways. We are undertaking
some organizational restructuring in academics and student services. Our students are
excited to see we will be adding Baseball as a sport and expanding our south parking lot.

The College is projecting level enrollment and revenue. Tuition and fees will remain
unchanged based on the state budget adopted. There will be growth in the State Share of
Instruction subsidy, based on higher state allocations and increased enrollment
experienced during the last biennial period. The increase in revenue is being directed to
fund the increased expenses of new faculty positions, academic reorganization, internal
overhead recharges, and program development needs.

14
 UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES
(IN THOUSANDS)

2007
2008 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Gross Tuition, Fee and Other Student Charges 28,922 27,846 (1,076) -3.72%
Less Scholarships and Fellowships (363) (368) (5) 1.38%
Net Tuition, Fee and Other Student Charges 28,559 27,478 (1,081) -3.78%

State Appropriations (State Share) 15,054 16,102 1,048 6.96%

State Appropriations (Challenges) 2,234 2,526 292 13.07%
Govt and Private Grants and Contracts 43 43 - 0.00%
Private Gifts - - - -
Endowment Income - - - -
Sales and Service 15 15 - 0.00%
Temporary Investments - - - -
Other Sources 60 57 (3) -4.67%
Total Resources 45,964 46,221 257 0.56%

EXPENDITURES
Educational and General
Instructional and General 26,656 26,479 (177) -0.66%
Separately Budgeted Research - - - -
Public Services 262 288 26 9.96%
Academic Support 4,782 4,437 (344) -7.20%
Student Services 3,849 3,734 (115) -2.99%
Institutional Support 5,779 6,402 623 10.78%
Operation and Maintenance of Plant 4,339 4,451 113 2.60%
Total Educational and General 45,666 45,792 126 0.28%

Mandatory Transfers
Loan Fund Matching - - - -
Debt Service 125 - (125) -100.00%
Nonmandatory Transfers
Subsidies to Non-Instructional Units 259 259 - 0.00%
Plant Funds 11 5 (6) -54.55%
Other (96) 166 262 -271.85%
Total Expenditures and Transfers 45,964 46,221 257 0.56%

Net Increase (Decrease) In Fund Balance - -

15
 UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES
RAYMOND WALTERS COLLEGE
(IN THOUSANDS)

2007
2008 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Gross Tuition, Fee and Other Student Charges 18,074 17,287 (787) -4.35%
Less Scholarships and Fellowships (63) (68) (5) 7.94%
Net Tuition, Fee and Other Student Charges 18,011 17,219 (792) -4.40%

State Appropriations (State Share) 9,626 9,690 64 0.66%

State Appropriations (Challenges) 1,391 1,640 249 17.93%
Govt and Private Grants and Contracts 14 14 - 0.00%
Private Gifts - - - -
Endowment Income - - - -
Sales and Service 15 15 - 0.00%
Temporary Investments - - - -
Other Sources 42 40 (2) -4.76%
Total Resources 29,098 28,617 (481) -1.65%

EXPENDITURES
Educational and General
Instructional and General 17,460 17,126 (335) -1.92%
Separately Budgeted Research - - - -
Public Services 211 240 28 13.40%
Academic Support 3,271 2,821 (450) -13.77%
Student Services 1,918 1,832 (86) -4.46%
Institutional Support 3,017 3,424 407 13.49%
Operation and Maintenance of Plant 2,857 2,795 (62) -2.17%
Total Educational and General 28,735 28,238 (497) -1.73%

Mandatory Transfers
Loan Fund Matching - - - -
Debt Service - - - -
Nonmandatory Transfers
Subsidies to Non-Instructional Units 174 174 - 0.00%
Plant Funds 11 5 (6) -54.55%
Other 178 200 22 12.54%
Total Expenditures and Transfers 29,098 28,617 (481) -1.65%

Net Increase (Decrease) In Fund Balance - -

16
 UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES
CLERMONT COLLEGE
(IN THOUSANDS)

2007
2008 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Gross Tuition, Fee and Other Student Charges 10,848 10,559 (289) -2.66%
Less Scholarships and Fellowships (300) (300) - 0.00%
Net Tuition, Fee and Other Student Charges 10,548 10,259 (289) -2.74%

State Appropriations (State Share) 5,428 6,412 985 18.14%

State Appropriations (Challenges) 844 886 43 5.06%
Govt and Private Grants and Contracts 29 29 - 0.00%
Private Gifts
Endowment Income
Sales and Service
Temporary Investments
Other Sources 18 17 (1) -3.05%
Total Resources 16,866 17,604 738 4.38%

EXPENDITURES
Educational and General
Instructional and General 9,196 9,354 158 1.71%
Separately Budgeted Research
Public Services 50 48 (2) -4.50%
Academic Support 1,510 1,617 106 7.03%
Student Services 1,931 1,902 (29) -1.53%
Institutional Support 2,762 2,978 216 7.82%
Operation and Maintenance of Plant 1,481 1,656 175 11.82%
Total Educational and General 16,931 17,554 623 3.68%

Mandatory Transfers
Loan Fund Matching
Debt Service 125 - (125) -100.00%
Nonmandatory Transfers
Subsidies to Non-Instructional Units 85 85 - 0.00%
Plant Funds
Other (274) (34) 240 -87.53%
Total Expenditures and Transfers 16,866 17,604 738 4.38%

Net Increase (Decrease) In Fund Balance - -

17
 III. STUDENT FEES AND HISTORICAL DATA

Proposed Student Fees..................................................................................................19

Summary of All Quarterly Student Fees - All Campuses ........................................20

Summary of All Annual Student Fees - All Campuses..............................................20

Instructional Subsidy and Student Fees - Ten & Five Year Trends ........................21
Ten & Five Year Fee History - Uptown Campus Resident Fees .............................21

Full Time Equivalent (FTE) Enrollments, FY 1999-2008........................................22

Summary of Resident Student Fees – Autumn FY 2006 & Autumn FY 2007

OBR Institutions ..................................................................................................23

18
 UNIVERSITY OF CINCINNATI
PROPOSED QUARTERLY STUDENT FEES
EFFECTIVE AUTUMN QUARTER 2007

CAMPUS LIFE FEE 1 GENERAL FEE IT&IE FEE2

FY07 FY08 FY07 FY08 FY07 FY08

FULL TIME RATES Actual Proposed Actual Proposed Actual Proposed
Undergraduate Programs:
Uptown Campus 147 147 249 249 105 105
Center for Access & Transition 147 147 249 249 105 105
3
Clermont College 0 0 142 142 85 85
3
Raymond Walters College 0 0 142 142 85 85
Professional Programs:
4
Law 221 221 374 374 158 158
Medicine 147 147 249 249 0 0
Graduate Programs5 147 147 249 249 105 105

INSTRUCTIONAL FEE
AND NONRESIDENT SURCHARGE

Ohio Out-of-State6
FY07 FY08 FY07 FY08
FULL TIME RATES Actual Proposed Actual Proposed
Undergraduate Programs:
Uptown Campus 2,632 2,632 7,473 7,473
Center for Access & Transition 1,963 1,963 7,473 7,473
Clermont College 1,287 1,287 3,571 3,571
Raymond Walters College 1,517 1,517 4,295 4,295
Professional Programs:
4
Law 8,263 8,738 15,323 15,798
Medicine 8,259 8,574 14,648 14,963
Graduate Programs5 3,386 3,536 6,664 6,814

PART TIME PER CREDIT HOUR FEES

(INSTRUCTIONAL, GENERAL, IT&IE, CAMPUS LIFE
AND NONRESIDENT SURCHARGE)

Ohio Out-of-State
FY07 FY08 FY07 FY08
PART-TIME RATES Actual Proposed Actual Proposed
Undergraduate Programs:
Uptown Campus 262 262 665 665
Center for Access & Transition 206 206 665 665
Clermont College 127 127 317 317
Raymond Walters College 146 146 377 377
Professional Programs:
4
Law 752 791 1,340 1,380
Medicine 722 748 1,254 1,280
Graduate Programs5 389 404 717 732

(1) Campus Life Fee approved at the May 23, 2000 Board of Trustees meeting.
(2) The IT&IE Fee assists in funding information technology, instructional equipment and improved student access to
computer resources and other instructional materials.
(3) Includes parking fee of $33.
(4) College of Law tuition calculated on the semester basis. Supplemental fee increase approved at the May 21, 2003
Board of Trustees meeting.
(5) Medicine Graduate Programs do not charge the IT&IE Fee.
(6) Includes the Ohio instructional fee and the non-resident surcharge.

19
 PROPOSED SUMMARY OF QUARTERLY STUDENT FEES
ALL CAMPUSES EFFECTIVE AUTUMN QUARTER 2007

FULL-TIME FULL-TIME
RESIDENT TUITION & FEES NON-RESIDENT TUITION & FEES

FY07 FY08 FY07 FY08

Tuition & Tuition & Percent Tuition & Tuition & Percent
Fees Fees Change Fees Fees Change

Undergraduate
Uptown Campus 3,133 3,133 0.0% 7,974 7,974 0.0%
Center for Access and Transition 2,464 2,464 0.0% 7,974 7,974 0.0%
1
Clermont College 1,514 1,514 0.0% 3,798 3,798 0.0%
1
Raymond Walters College 1,744 1,744 0.0% 4,522 4,522 0.0%
Professional Programs
2
Law 9,016 9,491 5.3% 16,076 16,551 3.0%
Medicine 8,655 8,970 3.6% 15,044 15,359 2.1%
3
Graduate Programs 3,887 4,037 3.9% 7,165 7,315 2.1%

PROPOSED SUMMARY OF ANNUAL STUDENT FEES

ALL CAMPUSES EFFECTIVE AUTUMN QUARTER 2007

FULL-TIME FULL-TIME
RESIDENT TUITION & FEES NON-RESIDENT TUITION & FEES

FY07 FY08 FY07 FY08

Tuition & Tuition & Percent Tuition & Tuition & Percent
Fees Fees Change Fees Fees Change
Undergraduate
Uptown Campus 9,399 9,399 0.0% 23,922 23,922 0.0%
Center for Access and Transition 7,392 7,392 0.0% 23,922 23,922 0.0%
1
Clermont College 4,542 4,542 0.0% 11,394 11,394 0.0%
1
Raymond Walters College 5,232 5,232 0.0% 13,566 13,566 0.0%
Professional Programs
2
Law 18,032 18,982 5.3% 32,152 33,102 3.0%
Medicine 25,965 26,910 3.6% 45,132 46,077 2.1%
3
Graduate Programs 11,661 12,111 3.9% 21,495 21,945 2.1%

(1) A parking fee of $33 per quarter is assessed by the branch campuses (included in the above amounts).
(2) College of Law tuition calculated on the semester basis. Supplemental fee increase approved at the May 21, 2003
Board of Trustees meeting.
(3) Medicine Graduate Programs do not charge the IT&IE Fee.

20
 STATE SHARE OF INSTRUCTION AND STUDENT FEES
TEN YEAR & FIVE YEAR TRENDS
UPTOWN CAMPUS
(IN THOUSANDS)

State Share of Instruction (1) Student Fees (2)

State Share of Dollar Percent Dollar Percent
Instruction Change Change Fees Change Change

FY 1999 Actual 155,198 507 0.3% 139,211 3,490 2.6%

FY 2000 Actual 159,351 4,153 2.7% 145,227 6,016 4.3%
FY 2001 Actual (3) 159,282 (69) 0.0% 150,719 5,492 3.8%
FY 2002 Actual (4) 149,894 (9,388) -5.9% 170,582 19,863 13.2%
FY 2003 Actual (5) 144,220 (5,674) -3.8% 195,126 24,544 14.4%
FY 2004 Actual 144,188 (32) 0.0% 218,477 23,351 12.0%
FY 2005 Actual 140,384 (3,804) -2.6% 247,747 29,270 13.4%
FY 2006 Actual 140,076 (308) -0.2% 271,034 23,287 9.4%
FY 2007 Projected 145,115 5,039 3.6% 298,723 27,689 10.2%
FY 2008 Budget 152,349 7,234 5.0% 313,720 14,997 5.0%

Ten Year Average Increase -0.1% 8.8%

Five Year Average Increase 1.1% 10.0%

(1) These figures represent the FTE driven State Share of Instruction. Other challenge items
such as Access, Success, Jobs, Research and Priorities in Higher Education are not reflected in this table.
(2) Student Fees include Instructional, General, IT&IE, Campus Life and Non-Resident Fees.
(3) Reduced by a 1% Statewide Budget Cut.
(4) Reduced by a 6% Statewide Budget Cut.
(5) Reduced by a 2.5% Statewide Budget Cut.

ANNUAL FEE HISTORY

OHIO RESIDENT FEES - UPTOWN CAMPUS

Center for
Under- Access and
Year graduate Transition** Graduate Law Medicine

1997-98 4,509 4,443 5,568 7,395 12,051

1998-99 4,746 4,590 5,586 7,706 12,537
1999-00 4,998 4,569 5,880 8,104 13,173
2000-01 5,337 4,401 6,264 8,600 13,902
2001-02 Autumn 5,823 4,686 6,822 9,348 15,090
2002-03 6,936 5,448 8,094 11,020 17,709
2003-04 7,623 5,988 8,985 12,236 19,662
2004-05 8,379 6,579 9,975 14,084 21,831
2005-06 Autumn 8,877 6,975 10,773 16,210 23,580
2006-07 9,399 7,392 11,661 18,032 25,965
2007-08 9,399 7,392 12,111 18,982 26,910

Ten Year Average Annual Increase $489 $295 $654 $1,159 $1,486

Five Year Average Annual Increase $493 $389 $803 $1,592 $1,840

Ten Year Average Annual Increase 7.7% 5.4% 8.2% 10.0% 8.4%

Five Year Average Annual Increase 6.3% 6.4% 8.4% 11.5% 8.8%

**Formerly University College

21
 FULL TIME EQUIVALENT (FTE) ENROLLMENTS
ALL-TERMS SUBSIDY ELIGIBLE REPORTING, FY 1999-2008

Uptown Campus Raymond

Graduate & Walters Clermont Grand
Year Undergrad Professional Total Branch Branch Total

1998-99 15,739 4,899 20,638 2,096 1,355 24,089

1999-00 15,588 4,902 20,490 2,174 1,363 24,027
2000-01 15,103 5,031 20,134 2,244 1,469 23,847
2001-02 15,200 5,265 20,465 2,458 1,656 24,579
2002-03 14,867 5,406 20,273 2,650 1,778 24,701
2003-04 15,026 5,461 20,487 2,847 2,017 25,351
2004-05 15,111 5,662 20,773 2,969 2,088 25,830
2005-06 15,270 5,332 20,602 2,991 2,170 25,763
Est. 2006-07 15,247 5,777 21,024 3,038 2,266 26,328
Est. 2007-08 15,562 5,846 21,408 2,917 2,207 26,532

22
 SUMMARY OF RESIDENT STUDENT FEES
OHIO BOARD OF REGENTS' INSTITUTIONS

UNDERGRADUATE FEES
Autumn Autumn
FY 2006 FY 2007 Percent
Fees Fees Change
Miami University1 9,542 10,042 5.2%
University of Cincinnati 8,877 9,399 5.9%
Bowling Green State University (B) 8,560 9,060 5.8%
Ohio University (B) 8,235 8,847 7.4%
Bowling Green State University (A) 8,248 8,746 6.0%
Ohio State University (C) 8,082 8,667 7.2%
Ohio State University (B) 7,980 8,559 7.3%
Ohio University (A) 7,848 8,436 7.5%
Kent State University 7,954 8,430 6.0%
University of Akron (B) 7,958 8,383 5.3%
University of Akron (A) 7,573 7,976 5.3%
University of Toledo 7,478 7,927 6.0%
Cleveland State University (B) 7,394 7,920 7.1%
Ohio State University (A) 7,323 7,860 7.3%
Cleveland State University (A) 7,022 7,524 7.1%
Wright State University (C) 6,864 7,278 6.0%
Wright State University (B) 6,621 7,020 6.0%
Wright State University (A) 6,372 6,756 6.0%
Youngstown State University 6,333 6,697 5.7%
Shawnee State University (B) 5,508 5,832 5.9%
Shawnee State University (A) 5,130 5,436 6.0%
Central State University 4,994 5,294 6.0%

Average 7,359 7,822 6.3%

GRADUATE FEES
University of Cincinnati 10,773 11,661 8.2%
Bowling Green State University 10,808 11,450 5.9%
Miami University 10,104 10,630 5.2%
Cleveland State University 10,073 10,602 5.3%
University of Toledo 9,880 10,472 6.0%
Wright State University (C) 9,171 9,720 6.0%
Ohio State University 8,832 9,438 6.9%
Wright State University (B) 8,844 9,375 6.0%
Medical University of Ohio at Toledo (Ph.D.) 8,574 9,332 8.8%
Ohio University 8,931 9,318 4.3%
Wright State University (A) 8,598 9,114 6.0%
Kent State University 8,460 8,968 6.0%
Central State University 7,890 8,370 6.1%
Youngstown State University 7,765 7,982 2.8%
University of Akron 6,609 6,971 5.5%
Shawnee State University 2 - 6,606 100.0%

Average 8,457 9,376 10.9%

Source: "FALL SURVEY OF STUDENT CHARGES - For Academic Year 2006 - 2007" by The Ohio Board of Regents

University of Cincinnati amounts shown include the Instructional, General/Facilities Fees, IT&IE Fee and Campus Life Fee.
1
Miami University is $22,523 less scholarships for an average of $10,042 per year.
2
Effective Fall Quarter 2006, Shawnee State is offering masters level programs based on a semester calendar.
(A): Denotes fees charged to continuing students who enrolled before the 2002 summer term.
(B): Denotes fees charged to continuing students who enrolled after the 2002 summer term.
(C): Denotes fees assessed to new students entering autumn term 2003, if different than fees charged to continuing students.
23
 IV. DESIGNATED GENERAL FUNDS
HOXWORTH BLOOD CENTER

Overview ........................................................................................................................25

Hoxworth Blood Center ...............................................................................................27

24
 UNIVERSITY OF CINCINNATI
DESIGNATED GENERAL FUNDS
HOXWORTH BLOOD CENTER
OVERVIEW
Under the leadership of Ronald A. Sacher, MD, Hoxworth continued to achieve its
strategic goals as our community’s only blood center, providing blood, blood components
and blood-related services for the patients in the 28 tri-state hospitals we serve.
Achievements for Hoxworth over the past year included the following:

• In fiscal year 2006, Hoxworth Blood Center collected 94,027 red cell units and
9,434 single-donor platelet products from community blood donors. This
represents a 6% increase for red cells and a 12% increase in single-donor platelet
products when compared to the previous fiscal year.
• Over 8,500 donors were recognized with gallon awards for red cell and platelet
donations. These awards ranged from one-gallon recognitions to one outstanding
70-gallon recognition.
• Hoxworth Blood Center opened its ninth Neighborhood Donor Center in Mason,
in the Governor's Pointe Shopping Center on Mason-Montgomery Road.
• More minorities are rolling up their sleeves to donate blood in Cincinnati and give
the ‘gift of life.’ Over 4,000 minority donors came to a Hoxworth Neighborhood
Donor Center or community/business blood drive between April 2005 and March
2006, a 14 percent increase over the same time period in 2004-05. This increase is
attributed to the result of a Minority Donor Recruitment Campaign that Hoxworth
launched in April 2005.
• The Cincinnati Bengals have been named as recipients of a Special Recognition
Award by America’s Blood Centers, an organization based in Washington, D.C.
The team earned the award for its work with the annual Bengals Community
Blood Drive. Teaming with Hoxworth Blood Center, the Bengals have sponsored
the drive at Paul Brown Stadium for the last five years. The drive has grown
exponentially since its inception, as the 483 total blood units donated last
October 4 represent a total of more than seven times the inaugural total of 63 in
2002. The drive is the largest of its kind in Greater Cincinnati. The final donor
tally was a record-breaking 528 for the fifth annual Bengals/Hoxworth
Community Blood Drive.
• Our Triple Double Program, intended to encourage donors to use our automated
technology and donate two red cells instead of one, continued to be a success. 665
donors participated, an 11% increase over the previous fiscal year. Each donor
received a special recognition shirt for their achievement.
• Hoxworth provided a new pool and store random platelet product for our hospital
customers this year. This new product allows random platelets to be pooled and
stored for up to five days, much longer than the 4-hour outdate previously
available.
• Our Components Lab started manufacturing low volume red blood cells to assist
red blood cell inventory levels.

25
• Phase I of our strategic plan has been completed and we are in the process of
mapping out a plan for Phase II. Phase II will be focused on our donor
recruitment efforts.
• Hoxworth faculty and staff published 14 articles in peer-reviewed literature and
presented over 31 abstracts and presentations at various national meetings and
conferences.
• Our current Six Sigma project to improve Mobile Collection projections is in the
measurement phase. We are identifying key process input variables that have the
greatest impact on overall projection accuracy. This phase of the project will
present the biggest challenge to the Six Sigma Team.

26
 DESIGNATED GENERAL FUNDS
HOXWORTH BLOOD CENTER
(IN THOUSANDS)

2007
2008 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Services Provided 34,780 34,814 34 0.10%
Interest Income 280 219 (61) -21.95%
Total Resources 35,060 35,033 (27) -0.08%

EXPENDITURES
Compensation 15,720 15,714 (6) -0.04%
Other 16,518 17,003 485 2.94%
Total Educational and General 32,238 32,717 479 1.49%

Mandatory Transfers
Debt Service 905 - (905) -100.00%
Non-Mandatory Transfers
Plant Funds 1,100 1,300 200 18.18%
Total Expenditures and Transfers 34,243 34,017 (226) -0.66%

Net Increase (Decrease) in Fund Balance 817 1,016

27
 VII. AUXILIARY OPERATIONS

Overview ........................................................................................................................29

Summary of Auxiliary Operations FY 2007 & FY 2008 ...........................................33

Campus Services Auxiliary Budget Summary FY 2007 & FY 2008 ........................34

Campus Services Auxiliary – MainStreet Budget Summary

FY 2007 & FY 2008.............................................................................................35

Room, Board, and Apartment Rates...........................................................................36

Parking Services............................................................................................................37

Intercollegiate Athletics................................................................................................38

Fifth Third Arena at the Myrl H. Shoemaker Center...............................................39

28
 UNIVERSITY OF CINCINNATI
AUXILIARY ENTERPRISES
OVERVIEW

An auxiliary enterprise provides a service to students, faculty or staff and charges fees
related to, but not necessarily equal to, the cost of the services. The distinguishing
characteristic of most auxiliary enterprises is that they should be managed essentially as
self-supporting activities whose services are provided primarily to individuals in the
institutional community rather than to departments of the institution. Accordingly, any
budget overruns or negative fund balances must be managed by the auxiliary functions.

The Campus Services auxiliary enterprise was created in Fiscal Year 2000 to support the
new Campus Life and MainStreet planning initiatives. The following are the highlights
of each unit's FY 2008 budget plan.

CAMPUS SERVICES AUXILIARY - Overview

Campus Services, a single umbrella auxiliary organization consisting of seven auxiliary

departments, provides a coordinated effort to meet the needs of the campus community:

• Bearcat Campus Card • MainStreet Operations

• Campus Recreation Center • Retail Services
• Housing & Food Services • University Conferencing
• Kingsgate Conference Hotel

Campus Services is addressing its budget challenges in a focused and direct manner as it
continues to improve the collective efficiency of its units. The budget is heavily
influenced by the full debt load for the MainStreet project and new housing
(CRC/Turner/Schneider) resulting in an operating deficit that requires a comprehensive
plan for improvement. The financial results for FY07 have shown significant savings -
approximately $5,000,000 - compared to the original budget. This achievement was the
result of identifying savings across individual units in areas like housekeeping and
maintenance. Other efforts focused on utility savings through better building
management – such as the complete shutdown of MarketPointe dining facility during the
summer months and break weeks. Payroll savings were realized through a variety of
manners including staff reorganization and a redistribution of duties. Campus Services
plans to build on this momentum as it projects additional savings over the next two fiscal
years. This will allow the auxiliaries to speed their financial recovery and eliminate
annual operating deficits.

Retail Services consists of seven bookstore locations, Central Stores, and vending. In
FY06, the management of the bookstore operations was outsourced to the Follett Higher
Education Group. This 10-year contract provides a minimum guaranteed income to
Campus services of $1,600,000 to $1,700,000 per year. Improvements to store layouts
and on-line services occurred in FY07 as part of this contract. In FY08, “Book Now”, an
online textbook reservation service, is expected to increase market share for UC
Bookstores textbook sales. Central Stores operates in coordination with a contract with
29
Office Depot. Vending Services is operated partially in-house and partially by a contract
with the Rehabilitation Services Commission of Ohio.

Housing & Food Services serves approximately 3,400 students in both residence halls
and apartments. In FY07, the demolition of Sawyer Hall reduced the number of available
beds by approximately 600. Debt service expenses reflect the full debt service for CRC
Housing, Turner/Schneider halls, and the Sawyer Hall demolition. As a partial response
to budget challenges, room rates increase by 6.17% and board rates increase by 5% for
the 2007-08 academic year. Occupancy is projected to average 92% for the academic
year.

Food Services operates MarketPointe and CenterCourt, both national-award-winning

residential dining centers. The continuing popularity of CenterCourt, the after-hours
acceptance of meal plans at Stadium View Café, and the change from traditional board
plans to more flexible “block” plans have resulted in a 12% increase in board plan
participation in FY07. The dining centers are operated under a contract with Aramark.

The Faculty Club moved to the new Varsity Athletic Center in July 2007. The Faculty
Club receives central funding in addition to the revenue it generates and is operated under
a management fee contract with Ararmark.

MainStreet Operations consists of business operations, facilities management, and

program coordination for Tangeman University Center, Steger Student Life Center, and
MainStreet Open spaces. Specific operating venues include the Catskeller Game Room
& Sports Lounge, MainStreet Cinema, and a variety of food service operations, including
catering, Wendy’s, Starbucks, Pizza Hut, Subway, and Gold Star Chili. MainStreet
Operations relies on the revenue it generates and central budget subsidy to meet its
financial obligations.

The Bearcat Campus Card is a debit and charge card system that provides convenient
payment options to students, faculty, and staff at various retail locations both on and off
campus. The program provides nearly 500 restaurant, vending, laundry, and shopping
locations on and off campus. This unit relies primarily on the fee it charges to “vendors”
who accept the Bearcat Campus Card. FY07 sales on the card will exceed $4,000,000.

Kingsgate Conference Hotel and University Conferencing continue to earn a high

level of satisfaction from guests and attendees with respect to our facilities, lodging,
conference management services, and restaurant. Operated under a contract with
Marriott, the Kingsgate Marriott continues to meet its debt service and other financial
obligations and continues to rank at the top of its competitive group in numerous
operational categories.

The Campus Recreation Center (CRC) opened in February 2006 to much local and
national acclaim and the CRC met its opening target of 800 members. The CRC
currently has over 1,284 non-student members and forecasts to reach a membership of
2,556 in FY08. Revenue sources include the campus life fee (charged to students in their
quarterly fee assessment), membership fees to non-student members, rentals, and

30
program and service fees. The CRC is projected to continue to operate in a deficit mode
in FY08. Cost control measures on utilities and plant maintenance have been put in
place. The CRC leadership has identified several additional areas for budget savings in
FY08 including payroll, housekeeping, plant maintenance, and other operational
expenses.

II. OTHER AUXILIARY ENTERPRISES - Overview

Parking Services

Parking Services will continue to align itself with and work to fulfill the goals of UC|21
in FY08 by continuing to strengthen our working relationship and customer service with
the University community. Clifton Court Garage will be temporarily closing in the fall
for major renovations. It is anticipated that the renovations will take 15 months for
completion. The closure will require Parking Services to relocate those that park in this
facility into the other garages on the Uptown Campuses.

Parking Services office hours have expanded to Monday through Thursday 7:00 am to
6:00 pm and Friday 7:00 am to 5:00 pm to meet the needs of the parkers. A link to
Parking Services has been added to One Stop and Blackboard websites to make parking
services more accessible to the students to register for parking or obtain information. The
website for Parking Services is a viable location to obtain information as to when
registration for parking occurs, print a map, give feedback and explore value-added
services.

Parking Services is a self-sustaining operation which means that we rely solely on

income derived from decals and cash parking. With maintenance costs for older facilities
rising as well as increased garage debt, parking rates will increase by $2-8 per month
depending upon the facility.

Intercollegiate Athletics

During FY 2007 the Department of Athletics reviewed all aspects of its fiscal operations
and adopted a new “multi-year” Fiscal Operating Plan. The plan is a three year rolling
plan and operating results for FY 2008 reduce the prior year deficit by 50%.

The plan builds on the Revenue generating potential of both football and men’s
basketball, as well as the emerging opportunities of private fund raising to UCATS and to
various athletic programs and projects. The plan is built upon a close monitoring of costs
related to departmental operations, home game expenses and team travel. Also, there is a
continued emphasis on expenditure containment and growth in all areas of the
department.

31
The multi-year Fiscal Operating Plan projects further deficit reduction in FY 09 and a
break-even operation in FY 10.

Fifth Third Arena at the Myrl H. Shoemaker Center

Operations for FY 08 project a deficit operation, primarily due to the increased costs of
utilities and maintenance of an aging facility. Further, opportunities for generating
revenues from rental of the facility continue to decline as internal use demands from
athletic teams and from the University increase. Debt service charges for this facility
will significantly decline in FY 09, and that should restore operations to a break even
situation.

32
 SUMMARY OF AUXILIARY OPERATIONS
UPTOWN CAMPUS
(IN THOUSANDS)

FISCAL YEAR 2007

RESOURCES EXPENDITURES and TRANSFERS

Total Debt Other Total Net
Auxilliary Restricted Expenses
Budget Service Transfers Budget Income
Campus Services Auxilliary* 34,353 34,353 26,046 8,885 578 35,509 (1,156)

CSA - Mainstreet 11,792 11,792 8,105 13,670 (2,059) 19,716 (7,924)

Parking Lots and Garages 16,499 16,499 7,380 9,578 407 17,365 (866)

Intercollegiate Athletics 12,740 5,292 18,031 26,883 4,091 (9,180) 21,793 (3,762)

Fifth Third Arena 571 571 1,393 603 (1,426) 571 -

GRAND TOTAL 75,955 5,292 81,247 69,808 36,828 (11,680) 94,955 (13,708)

FISCAL YEAR 2008

RESOURCES EXPENDITURES and TRANSFERS

Total Debt Other Total Net
Auxilliary Restricted Expenses
Budget Service Transfers Budget Income
Campus Services Auxilliary* 36,466 36,466 24,824 9,205 742 34,771 1,695

CSA - Mainstreet 12,259 12,259 6,513 13,681 (3,286) 16,908 (4,649)

Parking Lots and Garages 16,377 16,377 7,498 9,275 507 17,280 (903)

Intercollegiate Athletics 15,236 7,000 22,236 29,009 5,874 (10,473) 24,410 (2,174)

Fifth Third Arena 522 522 1,606 565 (1,428) 742 (220)

GRAND TOTAL 80,860 7,000 87,860 69,450 38,600 (13,938) 94,111 (6,251)

* Campus Services Auxiliary includes Retail, Food Services, Housing, Faculty Club, Kingsgate, and
Conference Management.

33
 CAMPUS SERVICES AUXILIARY SUMMARY (excludes MainStreet)
Comparison of FY 2007 to FY 2008 Budget
(IN THOUSANDS)

2007
2008 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Sales 3,581 3,760 178 4.98%
Student Meals 8,248 8,664 416 5.05%
Housing 17,772 18,586 813 4.58%
Rentals - - - -
Contracts 3,359 3,624 265 7.90%
Other 1,393 1,833 440 31.59%
Miscellaneous Student Fees - - - -
Total Resources 34,353 36,466 2,113 6.15%

EXPENDITURES
Cost of Sales 9,260 9,410 150 1.62%
Salaries 3,576 2,949 (626) -17.52%
Benefits 1,481 1,119 (362) -24.42%
DOE 8,941 8,750 (191) -2.14%
University Overhead 1,197 1,227 30 2.53%
Programming 1,592 1,368 (224) -14.05%
Total Expenditures 26,046 24,824 (1,222) -4.69%

Mandatory Transfers
Debt Service 8,885 9,205 320 3.60%
Non-Mandatory Transfers
Reserve for Repairs and Renovations - 300 300 100.00%
Reserve - Other - - - -
Subsidies to Non-Instructional Activities (445) (445) - 0.00%
Internal Campus Services Overhead 1,023 852 (171) -16.71%
Other - 35 35 100.00%
Total Expenditures and Transfers 35,509 34,771 (738) -2.08%

Net Increase (Decrease) in Fund Balance (1,156) 1,695

*Campus Services Auxiliary includes Retail, Food Services, Housing, Faculty Club, Kingsgate, and
Conference Management.

34
 CAMPUS SERVICES AUXILIARY SUMMARY - MainStreet
Comparison of FY 2007 to FY 2008 Budget
(IN THOUSANDS)

2007
2008 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Sales 696 80 (616) -88.56%
Student Meals - - - -
Housing - - - -
Rentals - 35 35 100.00%
Contracts 508 441 (67) -13.20%
Other 725 1,644 918 126.56%
Miscellaneous Student Fees 9,863 10,060 197 2.00%
Total Resources 11,792 12,259 467 3.96%

EXPENDITURES
Cost of Sales 31 47 17 54.98%
Salaries 3,428 2,264 (1,165) -33.98%
Benefits 949 600 (349) -36.81%
DOE 3,177 3,353 175 5.51%
University Overhead - - - -
Programming 520 250 (270) -51.92%
Total Expenditures 8,105 6,513 (1,592) -19.64%

Mandatory Transfers
Debt Service 13,670 13,681 11 0.08%
Non-Mandatory Transfers
Reserve for Repairs and Renovations 518 - (518) -100.00%
Reserve - Other - - - -
Subsidies to Non-Instructional Activities (3,129) (3,712) (583) 18.62%
Campus Services Overhead 552 426 (126) -22.83%
Other - - - -
Total Expenditures and Transfers 19,716 16,908 (2,808) -14.24%

Net Increase (Decrease) in Fund Balance (7,924) (4,649)

* Campus Services Auxiliary - Main Street includes Tangeman University Center/Student Life Center
and Campus Recreation Center.

35
 ROOM, BOARD, AND APARTMENT RATES
FISCAL YEAR 2007-08

2006-07 2007-08
Actual Actual

QUARTER ANNUAL QUARTER ANNUAL

1,4
I. SCHEDULE OF BASIC ROOM RATES
A. Calhoun, Daniels, Siddall, Dabney $1,638 $4,914 $1,753 $5,259
(Multiple Occupancy)

B. Calhoun, Daniels, Siddall, Dabney 1,909 5,727 2,024 6,072

(Designed Singles if available)

C. Calhoun, Daniels, Siddall, Dabney 2,620 7,860 N/A N/A

(Super Single if Available)

D. Turner Hall2 1,958 5,874 2,075 6,225

(Double Suites)

E. Turner, Schneider Halls 2 2,095 6,285 2,200 6,600

(Single Suites)

F. Campus Recreation Center (CRC) 2,258 6,774 2,200 6,600

3
II. SCHEDULE OF BASIC BOARD RATES
209 Value Plan/Quarter Plan (formerly 19 Meals/Week Plan) 1,124 3,372 1,180 3,540
154 Plan/Quarter Plan (formerly 14 Meals/Week Plan) 1,069 3,207 1,122 3,366
132 Plus Plan/Quarter Plan (formerly 12 Plus Meals/Week Plan) 1,124 3,372 1,180 3,540
4
III. SCHEDULE OF ROOM AND BOARD RATES
209 Value Plan/Quarter Plan (formerly 19 Meals/Week Plan) 2,762 8,286 2,933 8,799
154 Plan/Quarter Plan (formerly 14 Meals/Week Plan) 2,707 8,121 2,875 8,625
132 Plus Plan/Quarter Plan (formerly 12 Plus Meals/Week Plan) 2,762 8,286 2,933 8,799
IV. OFF CAMPUS MEAL TICKET RATES
45 Meals/Quarter Plan 375 1,125 391 1,173
33 Meals/Quarter Plan 255 765 265 795
25 Meals/Quarter Plan 195 585 200 600
15 Meals/Quarter Plan 130 390 N/A N/A
15 Lunch only/Quarter Plan 120 360 125 375

3,4
V. SCHEDULE OF APARTMENT RATES - PER MONTH

Efficiency without balcony $565 $594

Efficiency with balcony 593 623
One Bedroom 680 715
Two Bedroom 805 846
Penthouse 1,122 1,180

1) The option of a quarterly residence hall contract is available to upperclassmen as part of a pilot program for an
additional surcharge of $300.
2) The option of signing a twelve month lease is available to Turner Hall, Schneider Hall, and Campus Recreation Center residents.
This option adds $894 to the annual rate.
3) 2006-2007 Graduate and Family Housing rates are as published to include base phone service.
4) Beginning 2007-2008 Housing and Food Services has discontinued base phone service in all housing units.

36
 PARKING LOTS AND GARAGES
(IN THOUSANDS)

2007
2008 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Sales and Fines 16,499 16,377 (122) -0.74%
Total Resources 16,499 16,377 (122) -0.74%

EXPENDITURES
Administrative and General 2,547 2,444 (103) -4.05%
Operation and Maintenance of Plant 4,333 4,554 221 5.09%
University Overhead 500 500 - 0.00%
University Hall Lease - - - -
Total Expenditures 7,380 7,498 118 1.59%
Mandatory Transfers
Debt Service 9,578 9,275 (303) -3.17%
Non-Mandatory Transfers
Subsidies to Non-Instructional Activities (98) (98) - 0.00%
Other 1 10 9 907.50%
Reserve for Repairs and Renovations 504 595 92 18.17%
Total Expenditures and Transfers 17,365 17,280 (85) -0.49%

Net Increase (Decrease) In Fund Balance (866) (903)

This budget reflects all parking auxiliaries including branch campuses.

37
 INTERCOLLEGIATE ATHLETICS
(IN THOUSANDS)

2007
2008 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Sports
Men Basketball 5,013 5,408 396 7.89%
Football 4,935 6,609 1,674 33.91%
Gifts 5,292 7,000 1,708 32.29%
Other 2,792 3,219 427 15.29%
Total Resources 18,031 22,236 4,205 23.32%

EXPENDITURES
Sports
Basketball 3,344 3,430 85 2.54%
Football 7,395 7,871 476 6.44%
Women Sports 5,043 5,659 616 12.22%
Other Men Sports 2,146 2,329 184 8.55%
Total Sports 17,928 19,289 1,361 7.59%
Administrative and General 8,168 8,568 399 4.89%
Operation and Maintenance of Plant 787 1,152 366 46.51%
Total Expenditures 26,883 29,009 2,126 7.91%
Mandatory Transfers
Debt Service 4,091 5,874 1,784 43.60%
Non-Mandatory Transfers
Subsidies to Non-Instructional Activities (9,260) (10,553) (1,293) 13.97%
Other 80 80 - 0.00%
Total Expenditures and Transfers 21,793 24,410 2,617 12.01%

Net Increase (Decrease) in Fund Balance (3,762) (2,174)

38
 FIFTH THIRD ARENA
MYRL H. SHOEMAKER CENTER
(IN THOUSANDS)

2007
2008 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Special Event Revenue 147 140 (7) -4.76%
Operation and Maintenance Reimbursement 107 12 (95) -88.79%
Concessions 226 260 34 15.04%
Other 91 110 19 20.58%
Total Resources 571 522 (49) -8.62%

EXPENDITURES
Administrative and General 312 213 (99) -31.74%
Operation and Maintenance of Plant 1,081 1,393 312 28.82%
University Overhead
Total Expenditures 1,393 1,606 213 15.26%
Mandatory Transfers
Debt Service 603 565 (39) -6.45%
Non-Mandatory Transfers
Subsidies to Non-Instructional Activities (1,426) (1,428) (3) 0.19%
Total Expenditures and Transfers 571 742 171 29.93%

Net Increase (Decrease) in Fund Balance - (220)

39
 IV. DESIGNATED GENERAL FUNDS
MILLENNIUM RESEARCH INSTITUTE

Overview ........................................................................................................................41

Millennium Research Institute..……………………………………………………...44

40
 UNIVERSITY OF CINCINNATI
DESIGNATED GENERAL FUNDS
MILLENNIUM RESEARCH INSTITUTE

Attachment A is background detailing what has been reported to and approved by the
Board of Trustees in the past regarding the Millennium Plan. The University is
reevaluating the entire Millennium Plan process at this time to determine whether it
continues to perform in the best interests of the University. The University will report
back to the Board of Trustees when the reevaluation process is completed.

41
 ATTACHMENT A

UNIVERSITY OF CINCINNATI
DESIGNATED GENERAL FUNDS
MILLENNIUM RESEARCH INSTITUTE
OVERVIEW

The Board of Trustee approved Millennium Research program goal was to double
the sponsored research activity at the University of Cincinnati to $300M. In FY
2006 the University and its affiliates generated $332.6M in sponsored awards.

During the first six years of the program, the activities of the Institute have
primarily focused on recruitment within key programmatic areas. The areas of
focus have been aligned with the NIH Roadmap and key recruitments have taken
place within the identified areas of Cancer Biology, Cardiovascular Biology,
Neuroscience, Metabolic Disorders and Obesity.

To date, forty-four Millennium Scholars have been recruited bringing with them
$1.85M in research awards and securing approximately $15M in new awards
since arriving on campus. The Scholars have also submitted approximately
$63.5M in research award applications. In addition to recruitment, significant
progress has been made in relation to the physical infrastructure of the Genome
Research Institute and the facility is still generating great interest from both the
private and public sectors.

The allocation methodology for Facilities and Administrative Cost (F&A) income
resulting from this increased sponsored research revenue for the Center is
different from that of the normal University policy distribution. The
methodology change is to be used on those funds received in excess of the
established base for FY 2000 related to East Campus Sponsored Programs only.
The revised allocations will be as follows:

8% Off-the-Top (Research Infrastructure)

20% Departmental Allocation
21% Facilities Expenses
19% GRI Renovations-Debt Service
32% Research Recruitment Fund
100% Total F&A Income

These distributions have been set with the knowledge that certain items such as
Off-the-Top may need to be increased if support services for these programs
increase in cost or scope. It is recognized that the Departmental Allocation of
20% is subject, at all times, to the support of this program’s infrastructure,

42
facility replacement, recruiting expense and a portion of unrecoverable faculty
salary and benefits involved in the Millennium program.

As approved, the plan will end the current fiscal year in a deficit position and is
projected to continue to accumulate additional expenses during a portion of FY
2008. The negative fund balance is the result of operational/facilities costs and
debt service payments for the Genome Research Institute facility and the direct
expenses of recruitment and faculty start-up packages as outlined in the
Millennium plan.

Based on the requirements of the University’s new Cash Policy approved by the
BOT in November of 2006, the leadership of the College of Medicine and the
Academic Health Center will be working with the Administration and Finance
Division leadership to develop a plan that will greatly reduce or eliminate the
accumulated deficit during the coming fiscal year.

43
 DESIGNATED GENERAL FUNDS
MILLENNIUM RESEARCH INSTITUTE
(IN THOUSANDS)

2007
2008 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Government, Private Grants and Contracts 7,358 4,000 (3,358) -45.64%
Rental Income 75 - (75) -100.00%
Other Sources (387) - 387 -100.00%
Total Resources 7,046 4,000 (3,046) -43.23%

EXPENDITURES
Educational and General
Separately Budgeted Research 8,695 7,174 (1,521) -17.50%
Operation and Maintenance of Plant 4,561 4,596 35 0.76%
Total Educational and General 13,256 11,769 (1,487) -11.22%
Mandatory Transfers
Debt Service 6,185 6,909 724 11.71%
Non-Mandatory Transfers
Plant Funds 268 - (268) -100.00%
Other - (12,000) (12,000) 100.00%
Total Expenditures and Transfers 19,709 6,678 (13,031) -66.12%

1
Net Increase (Decrease) in Fund Balance (12,663) (2,678)

(1) Millennium Plan is required to be self-funded by the end of the program.

44
 V. OTHER DESIGNATED FUNDS

Overview ........................................................................................................................46

Other Designated General Funds - Excluding Hoxworth Blood Center and

The Millennium Research Institute...................................................................48

Designated General Funds - University Service Centers:

UCit .......................................................................................................................49

Consolidated Utilities...........................................................................................50

45
 UNIVERSITY OF CINCINNATI
OTHER DESIGNATED GENERAL FUNDS
OVERVIEW
Other Designated General Funds excluding Hoxworth Blood Center and the Millennium
Research Institute are those funds that are internally restricted by Board of Trustee
approval for specific activities. Other designated funds are managed at the departmental
level with Vice Presidential and Administration and Finance review.

Through the annual budget formulation process departments are required to budget their
revenue and expenses for designated funds at a realistic level including the possibility of
spending any accumulated fund balance. Based on the University Cash policy as
approved in November 2006, designated funds expenditures, cash balances, and transfers
are scrutinized at the central level. Designated funds with overdrawn balances are
subject to payback plans with this process continuing to ramp up in FY 2008.

Designated funds represent an important opportunity for leveraging undesignated general

funds in supporting the overall mission of the institution and providing enhancements.
Incentive programs for sponsored projects and continuing education activities give
departments discretionary funds that are used for instructional programs.

Included in the designated revenue is the income projection for the Information
Technology and Instructional Equipment (IT&IE) fee of $7.2M. This fee is used to fund
improved access to information technology and support other types of instructional
equipment. Virtually all students on the Uptown campus are assessed this $105 per
quarter fee.

Also included in designated income, projected grant and contract revenue represents the
incentive monies returned to departments for their share of the Sponsored Project
Incentive Award Program. Instruction and departmental research are supported by the
use of these funds. They remain an important source of flexibility for departments. This
income rises or declines in relation to the increase or decrease in grants and contracts
awarded to the University.

Sales and services revenue in the designated category is generated by the outpatient
clinical activities of the College of Medicine. Much of the net revenue above the level of
support needed to operate the clinical labs is used to supplement the instructional
expenditures of individual departments.

FY 2008 is the ninth year in which OBR Challenge program income is being
incorporated into the Undesignated General Fund. Transfers based this income are made
to designated funds to support both existing programs and policies that contribute toward
the goals of each Challenge program. The Undesignated General Funds category within
designated reflects $5.7M of transfers to meet these program goals.

46
The final two tables in this section represent the budgets for the two largest University
Service Centers. These are centers that provide products or services to the entire
University community, and charge rates to the various funds to recover their costs. These
schedules cannot be summed with the other Designated Fund schedules to determine a
total for the fund, because their income is accounted for as an offset to expenditures.
While they function as self-supporting entities over time, they are presented here due to
their relative size when compared to other funds and departments.

Listed below are some of the accomplishments and current initiatives underway in UCit.

Blackboard Hosting
For FY08, UCit has added Denison University as a hosting client and is currently
negotiating with e-Tech Ohio to host Bb services for an eleven school K-12 pilot
program for the State of Ohio. These two clients would join Marion Technical College,
Edison Community College, Capitol University, Cincinnati State Technical and
Community College, Columbus State Community College, Ohio Wesleyan University,
and the Archdiocese of Cincinnati as our hosted Bb clients.

UC Mobile
Beginning September 2007, each UC Campus Housing student will receive a pre-paid
wireless phone with service as part of room and board. UC Mobile provides UC-centric
applications which can't be found elsewhere, on world class devices, with ubiquitous
campus coverage, all at below market rates.

Student Computer Labs

UCit will assume management of the College of Applied Science student computer labs
in Sanders and French Halls, leveraging UCit’s economies of scale.

UCit and University Libraries are joining forces to create UCit@Langsam, a centrally
located, readily accessible, 24/7 computing and study facility that will make a substantial
contribution to the 21st-century learning environment for all University of Cincinnati
students.

Articulation and Transfer Clearinghouse

UC is working with the Ohio Board of Regents to develop a system to transmit electronic
transcripts between Ohio colleges and universities and is currently participating in a pilot
with Cincinnati State Technical and Community College, Sinclair Community College
and Wright State University with plans to begin sending and receiving all transcripts
electronically to/from these schools over the next couple of months and to/from other
Ohio colleges and universities by the end of the year.

UC Flex
Technical implementation of the financial and human resources modules of UC Flex is
complete. This SAP-based system has transformed the way in which the university does
business.

47
 OTHER DESIGNATED GENERAL FUNDS
EXCLUDING HOXWORTH BLOOD CENTER AND MILLENNIUM RESEARCH INSTITUTE
(IN THOUSANDS)

2007
2008 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Gross Tuition, Fee and Other Student Charges 19,104 19,178 75 0.39%
Less Scholarships and Fellowships
Net Tuition, Fee and Other Student Charges 19,104 19,178 75 0.39%

Govt and Private Grants and Contracts 18,865 19,232 367 1.94%
Private Gifts 138 225 87 63.00%
Endowment Income 940 834 (106) -11.31%
Sales and Service 19,693 22,449 2,756 14.00%
Other Sources 1,583 2,577 993 62.73%
Total Resources 60,323 64,495 4,172 6.92%

EXPENDITURES
Educational and General
Instructional and General 8,765 9,541 776 8.85%
Separately Budgeted Research 9,944 10,762 818 8.23%
Public Services 12,263 12,953 691 5.63%
Academic Support 11,473 12,283 810 7.06%
Student Services 11,523 12,459 935 8.12%
Institutional Support 11,691 12,716 1,025 8.77%
Operation and Maintenance of Plant - - - -
Scholarships and Fellowships 700 874 173 24.76%
Total Educational and General 66,359 71,588 5,228 7.88%

Auxiliary Enterprises 7 - (7) -100.00%

Mandatory Transfers
Debt Service 7,241 6,162 (1,079) -14.90%
Nonmandatory Transfers
Subsidies to Non-Instructional Units
Undesignated General Funds (11,229) (11,204) 25 -0.22%
Other
Claims on Operations Repayment (2,100) (2,100) - 0.00%
Total Expenditures and Transfers 60,279 64,446 4,167 6.91%

Net Increase (Decrease) In Fund Balance 45 49

48
 DESIGNATED GENERAL FUNDS
UCit
(IN THOUSANDS)

2007
2008 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Recovery - General Fund 9,500 10,100 600 6.32%
Recovery - Other 16,997 18,475 1,478 8.70%
Total Resources 26,497 28,575 2,078 7.84%

EXPENDITURES
Compensation 13,275 14,753 1,477 11.13%
All Other 10,814 11,066 252 2.33%
Total Expenditures 24,089 25,818 1,729 7.18%
Mandatory Transfers
Debt Service 285 250 (35) -12.28%
Non-Mandatory Transfers
Plant Fund 725 500 (225) -31.03%
Other Transfers 1,275 2,350 1,075 84.31%
Total Expenditures and Transfers 26,374 28,918 2,544 9.65%

Net Increase (Decrease) in Fund Balance 123 (343)

This budget reflects resources and expenditures for a University Service Center. A University Service
Center is an entity which provides a service or product on a continuing basis to the University
Community (sometimes including the public) and charges the user a predetermined rate which is
calculated to recover the total cost of operation over a specified period of time.

49
 DESIGNATED GENERAL FUNDS
CONSOLIDATED UTILITIES
(IN THOUSANDS)

2007
2008 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Recovery - Steam 21,573 20,647 (926) -4.29%
Recovery - Chilled Water 14,384 14,455 71 0.49%
Recovery - Electric 25,818 25,295 (523) -2.03%
Recovery - Water and Sewage 2,305 1,951 (354) -15.36%
Total Resources 64,080 62,347 (1,733) -2.70%

EXPENDITURES
Compensation 4,896 4,698 (198) -4.05%
All Other 49,059 45,567 (3,492) -7.12%
Total Expenditures 53,955 50,264 (3,691) -6.84%
Mandatory Transfers
Debt Service 6,405 5,518 (887) -13.85%
Non-Mandatory Transfers
Plant Fund 1,190 1,590 400 33.57%
Undesignated Central (5) - 5 -100.00%
Designated Central (2,462) - 2,462 -100.00%
Other 5,228 6,210 982 18.78%
Total Expenditures and Transfers 64,311 63,582 (729) -1.13%

Net Increase (Decrease) in Fund Balance (232) (1,235)

This budget reflects resources and expenditures for a University Service Center. A University Service
Center is an entity which provides a service or product on a continuing basis to the University
Community (sometimes including the public) and charges the user a predetermined rate which is
calculated to recover the total cost of operation over a specified period of time.

50
 VI. RESTRICTED FUNDS

Overview ........................................................................................................................52

Restricted Funds ...........................................................................................................53

51
 UNIVERSITY OF CINCINNATI
RESTRICTED FUNDS
OVERVIEW
Restricted Funds are those funds that the University receives that have been designated
by an external agency or individual and are limited to the support of a specific purpose
and/or unit. Included in this group are gift funds, the earnings on endowments, and both
private and governmental grants and contracts.

Restricted funds are under the local control of colleges and Vice Presidential areas within
the external restrictions imposed. Actual income must have been received, or guaranteed
from these sources before expenditure budgets are approved. These funds are reviewed
centrally based on the University Cash policy. These funds are an important addition to
the University budget, in terms of their leveraging effects to the undesignated general
fund.

Restricted fund revenue sources have been aggressively pursued, and the results of those
efforts are being realized in the current fiscal year. We are anticipating revenues in
excess of budget for the current fiscal year of approximately $93K.

State appropriations are primarily funds retained by the College of Medicine for Clinical
Teaching Subsidy. A variety of programs are supported at the College with this
important source of funds.

Grants and contract income is received from both private and governmental research.
Projections for this income category for FY 2008 are projected to be flat as compared to
FY 2007.

Endowment income continues to rise, with anticipated continued growth in this category
for FY 2008 based on a 2 year change in the endowment spending policy which increased
from 5% to 6%.

Included in the “Other” nonmandatory transfers, about $38M represents the total
overhead transferred back to unrestricted funds. Over 40% of the overhead earned on the
grants and contracts is channeled back to departments through the Sponsored Project
Incentive Program in designated funds. These monies are used by the departments for
discretionary purposes. The remaining overhead transfer is reported as unrestricted
revenue to the undesignated general fund.

52
 RESTRICTED FUNDS
(IN THOUSANDS)

2007
2008 Percent
Budget Variance
Budget Change
Revised
RESOURCES
State Appropriations 12,530 13,388 858 6.85%
Government, Private Grants and Contracts 207,213 207,269 56 0.03%
Private Gifts 41,250 39,486 (1,764) -4.28%
Endowment Income 63,640 67,530 3,890 6.11%
Temporary Investments 78 76 (2) -2.10%
Other 988 981 (7) -0.69%
Total Resources 325,698 328,730 3,032 0.93%

EXPENDITURES
Educational and General
Instruction and Department Research 61,790 62,140 350 0.57%
Separately Budgeted Research 149,722 150,277 555 0.37%
Public Service 8,292 8,381 89 1.07%
Academic Support 15,754 16,314 560 3.55%
Student Services 3,832 3,843 11 0.29%
Institutional Support 2,882 2,963 81 2.80%
Operation and Maintenance of Plant - - - -
Scholarships and Fellowships 33,943 35,436 1,493 4.40%
Total Educational and General 276,215 279,354 3,139 1.14%

Mandatory Transfers
Debt Service 283 - (283) -100.00%
Non-Mandatory Transfers
Other 49,111 49,283 172 0.35%
Total Expenditures and Transfers 325,609 328,637 3,028 0.93%

Net Increase (Decrease) in Fund Balance 89 93

53
 Financial Report
For the Years Ended June 30, 2008 and 2007
 TABLE OF CONTENTS

Board of Trustees and President's Cabinet ..................................................................... 1

Letter from the Senior Vice President for Administration and Finance ............................ 2

University of Cincinnati Overview .................................................................................... 3

Report of Independent Accountants ................................................................................ 7

Management Discussion and Analysis............................................................................ 8

Statements of Net Assets.............................................................................................. 20

Statements of Revenues, Expenses and Changes in Net Assets ................................. 21

Statements of Cash Flows ............................................................................................ 22

Notes to Financial Statements ...................................................................................... 24

On the cover:
The Center for Academic Research Excellence (CARE)/Crawley Building, the newest addition to the
University of Cincinnati Medical campus,
was officially opened on September 10, 2008.
_______________________________________________________________________________
BOARD OF TRUSTEES*

Anant R. Bhati Secretary (2009)

Jeffrey L. Wyler Chair (2010)

H. C. Buck Niehoff Vice Chair (2011)

Sandra W. Heimann (2012)

Gary Heiman (2013)

Margaret E. Buchanan (2014)

C. Francis Barrett (2015)

Thomas H. Humes (2016)

Robert E. Richardson, Jr. (2017)

Seth Vensil Student Member (2009)

Diana Hechavarria Student Member (2010)

PRESIDENT’S CABINET

Nancy L. Zimpher President

Anthony J. Perzigian Senior Vice President for Academic Affairs and Provost

Monica Rimai Senior Vice President for Administration and Finance

James D. Plummer Vice President for Finance

Gregory J. Vehr Vice President for Governmental Relations and University Communications

David M. Stern Vice President for Health Affairs and Dean of the College of Medicine

Frederick H. Siff Vice President for Information Technology

Sandra Degen Vice President for Research

Mitchel D. Livingston Vice President for Student Affairs and Chief Diversity Officer

Michael Carroll Vice President for Development and Alumni Relations and
President of the UC Foundation

Mitchell D. McCrate General Counsel

Greg Hand Assoc. Vice President for Governmental Relations and University Communications

Michael J. Thomas Director of Athletics

Louis D. Bilionis Chair, Council of Deans

Marla Hall Chair, Faculty Senate

Ezgi Akpinar President, Graduate Student Governance Association

Ryan Rosensweig President, Undergraduate Student Government Association

*The expiration date of each trustee’s term is shown in parentheses.

1
UNIVERSITY OF CINCINNATI JUNE 30, 2008

MISSION

The University of Cincinnati serves the people of Ohio, the nation, and the world as a premier, public, urban research
university dedicated to undergraduate, graduate, and professional education, experience-based learning, and
research. We are committed to excellence and diversity in our students, faculty, staff, and all of our activities. We
provide an inclusive environment where innovation and freedom of intellectual inquiry flourish. Through scholarship,
service, partnerships, and leadership, we create opportunity, develop educated and engaged citizens, enhance the
economy and enrich our University, city, state and global community.

HISTORY IN BRIEF

The University of Cincinnati, Ohio’s premier urban research university, traces its origins to 1819, the year in which
Cincinnati College and the Medical College of Ohio were chartered. In 1870, the City of Cincinnati established the
University of Cincinnati, which later absorbed the earlier institutions. In 1906, the University of Cincinnati created the
first cooperative education program in the United States. For many years, the University of Cincinnati was the second
oldest and second largest municipal university in the country. In 1968, UC became a “municipally sponsored, state
affiliated” institution, entering a transitional period culminating on July 1, 1977 when UC joined the university system
of Ohio. The University of Cincinnati is classified as a Research University (Very High Research Activity) by the
Carnegie Commission, and is ranked as one of America’s top public research universities by the National Science
Foundation.

Since its founding in 1819, UC has been the source of many discoveries and firsts creating positive change for
society, including:

• First program of cooperative education – Herman Schneider (1906)

• First oral polio vaccine – Albert Sabin
• First observations leading to the National Weather Service
• First antihistamine, Benadryl – George Rieveschl
• First electronic organ – Winston Koch
• First use of YAG laser to remove brain tumor
• First bachelor’s degree program in nursing
• First emergency medicine residency program
• First safe anti-knock gasoline
• First degree program offered via satellite

Among the historic faculty or alumni of the University of Cincinnati are found:

• President, and later Chief Justice William Howard Taft

• Albert Sabin, developer of the oral polio vaccine
• Nobel Peace Prize winner and U.S. Vice President Charles G. Dawes
• Pulitzer Prize-winning cartoonist Walt Handelsman
• Doris Twitchell Allen, founder of Children's International Summer Village
• Operatic diva Kathleen Battle
• Cleveland Abbe, whose work at UC led to the National Weather Service
• Eula Bingham, environmental scientist and head of OSHA
• Marilyn Gaston, assistant surgeon general
• Authors Thomas Berger ("Little Big Man," "Neighbors") and Jonathan Valin ("The Lime Pit," "Final Notice")
• Prima Ballerina Suzanne Farrell
• Sports greats Sandy Koufax, Oscar Robertson, Jack Twyman and Tony Trabert
• Architect Michael Graves
• Artists Tom Wesselmann and Gilbert Young
• Tony Award winner Faith Prince

The number of living alumni of the University is estimated (2007) to be 211,954 with 104,519 living in the greater
Cincinnati area.

3
UNIVERSITY OF CINCINNATI JUNE 30, 2008

RANKINGS

The University carries out its rigorous scholarship and research mission while maintaining a deep commitment to
accessible education. Over 36,000 students pursue success in hundreds of academic programs in the sciences, arts,
humanities, and professional disciplines. The University’s programs are highly regarded. The Architecture and
Interior Design programs are ranked No. 1 by the Almanac of Architecture and Design. Programs that are ranked in
the Top 10 by U.S. News and World Report include:
th
Cooperative Education 4 in the U.S.

Music and Arts Programs

rd
Opera/Voice 3 in the U.S.
Interior Design 3rd in the U.S.
Musical Conducting 5th in the U.S.
Music 6th in the U.S.
Industrial Design 6th in the U.S.
Music Composition 9th in the U.S.
Orchestra/Symphony 9th in the U.S.

Science and Engineering Programs

Paleontology 7th in the U.S.

Medical and Human Service Programs

Criminal Justice 3rd in the U.S.
Pediatrics 3rd in the U.S.

The University of Cincinnati is one of the nation’s best institutions for undergraduate education, according to The
Princeton Review. The New York-based education services company, known for its test-prep courses features UC in
the just published 2009 edition of its annual book, “The Best 368 Colleges.” This marks the second year in a row that
th
UC is listed among the nation’s best universities. UC is ranked 19 on the top 20 list of universities with a diverse
student population.

UC|21: DEFINING THE NEW URBAN RESEARCH UNIVERSITY

UC is engaged in a vision for its future called UC|21: Defining the New Urban Research University, which builds on
our greatness as a leader in the 21st century. Through this vision we are committed to:

• keeping students at the center of all that we do,

• enhancing our research capacity and our academic excellence,
• forging effective partnerships in the community, region and world,
• creating a campus environment that is vibrant and inviting for students and the community to learn, live, play
and stay, and
• developing potential in our students as well as our local, state, national and international communities

UC|21 resulted from months of discussion and consultation at an unprecedented level of participation. A wide range
of University stakeholders were invited to take part, including students, faculty, staff, emeriti, alumni, corporate
partners, donors, neighbors, and civic and social service leaders. Called together by President Zimpher, more than
240 people worked in a series of town hall meetings focused on the University’s future. Additional insight came from
over 2,400 people who participated in more than 90 input sessions hosted by University colleges and units. Another
300 people also voiced opinions via the academic planning Web site, which accrued literally thousands of visits.
Drawing upon these collaborative efforts, President Zimpher unveiled UC|21 on May 21, 2004, the date that she was
installed as the University’s 25th president.

Guiding Principles

UC|21 embraces a set of core values that are essential for the new urban research university in meeting the
challenges of the 21st century. These ideals keep the strategic vision focused and true to the University’s aspirations
and dreams.

4
UNIVERSITY OF CINCINNATI JUNE 30, 2008

The vision builds on the University’s Just Community Initiative, endorsed by the University in 2000 to promote
community, justice, and responsibility. UC|21 identifies six guiding principles that build on the University’s rich
heritage as an agent of transformation and discovery, while underscoring its commitment to serve a rapidly changing
world and local Cincinnati community. These principles are:

„ Scholarship „ Leadership
„ Citizenship „ Partnership
„ Stewardship „ Cultural Competency

Urban Research University Objective

The University’s Urban Research University Objective seeks to enhance the University’s academic and research
status by virtue of the University’s engagement in society. This framework and plan is as follows:

z Given the University’s strong and distinctive accomplishments as a research university, the University
will continue to expand and excel in its role as a comprehensive, public research institution – regionally,
nationally and globally.

z The University’s roots are as a municipal university and has evolved with Cincinnati.

z The local community is a resource and problem rich environment that beckons the University as a
community of scholars.

z By fully embracing the urban community, the University seeks a reciprocal partnership right at its
doorstop, where the University’s intellectual power, research capacity, and creativity can be set to work
on society’s most pressing issues:

„ Local Schools „ Economic Development

„ Health Care „ Civic Life
„ Safety „ Racial Relations
„ Entrepreneurialism

Goals

The University’s aspiration to define the new urban research university calls on the University to be a true innovator,
adopting new ways of pursuing the academic enterprise. UC|21 is developing the University’s capacity for change
and commits it to go about the business of higher education more strategically. This vision is driven by a number of
strategic engines, including a budget reorganization tied to six goals, performance-based budgeting, administrative
actions, an exhaustive implementation proposal process, and college and unit alignment efforts. In conjunction with
the Faculty Senate, UC|21 has begun a full review of the University’s governance and committee structures and
implemented change in 2006.

The six goals are:

1. To become a university of choice and a destination campus by keeping students at the University’s
core.

2. Build on the University’s greatness as a major research university to benefit society, have
meaningful economic impact and enhance the quality of life for all.

3. Encourage an environment of high-quality learning and world-renowned scholarship.

4. Establish and nurture relationships with the colleagues within the University and with local and
global communities.

5. Develop an environment where members of the campus community and the community at large
want to spend time learning, living, playing and staying. Provide long-term support to build a better
uptown in our neighboring communities.

6. Develop potential, not just in the University’s students, but in the local and global communities.

5
UNIVERSITY OF CINCINNATI JUNE 30, 2008

FUND-RAISING CAMPAIGN – Proudly Cincinnati

On October 25, 2008, the University began the public phase of the largest fund raising campaign in the University’s
history. Proudly Cincinnati – Tower of Strength, Rock of Truth: The Campaign for the University of Cincinnati will raise
$1 billion (formerly $800 million) to support UC’s vision of becoming the finest public urban research university in the
country.

Proudly Cincinnati’s planning began in July 2005 and will run through 2013. The campaign will focus on support for
scholarships, great teaching and excellence in research and will further combine UC’s strengths in student life,
academics, athletics, research, facilities, international focus and diversity to make each facet of the university an
international benchmark.

This ambitious vision will be achieved through six initiatives that position UC as the finest public urban research
university for the 21st Century:

21st-Century Learning
UC is globally recognized for its emphasis on experiential learning via cooperative education, clinical training and
study abroad. New funds will deepen and broaden ongoing teaching and learning efforts as well as foster new ones,
providing funds for first-year and senior capstone experiences, to enhance honors programs and to endow
professorships that will guide new and extraordinary learning paradigms.

Health in the 21st Century

Collaborative research across UC colleges and disciplines – like medicine, nursing, allied health sciences, pharmacy
and others – are already developing new procedures, technologies and pharmaceuticals that deliver state-of-the-art
health care to the population. Facilities, equipment, top investigators and students will only accelerate
groundbreaking research, speeding discoveries to solve the greatest health challenges: cancer, cardiovascular
disease, metabolic disease and neurological conditions as well as support research related to trauma, nanomedicine,
hearing, stroke and more.

Science and Technology in the 21st Century

UC boasts several areas of strength, including chemical and bio sensors, computational science, nanotechnology,
environmental sciences, aerospace and space-related research and other STEMM (science, technology, engineering,
math and medicine) disciplines. Proudly Cincinnati will commit resources to these and other programs that will, in
turn, advance the region’s and the nation’s global competitiveness.

Arts, Design and the Humanities in the 21st Century

UC’s programs related to design, the arts and the humanities are nationally and internationally recognized. These
programs’ contributions to quality of life issues for the region’s residents and even national industry are models that
others follow. Greater interdisciplinary efforts must be fostered for continued growth and improvement.

Urban Solutions for the 21st Century

Great cities need great universities, and Cincinnati is no different. The city provides the university’s future students,
experiential learning opportunities, research venues and support. The university supplies valuable human capital,
solutions for pressing environmental and social challenges, economic stability and more. Already, UC is recognized
as one of only 50 universities across the country with an exemplary focus on community outreach and engagement.
Proudly Cincinnati will provide critical resources to create lasting and powerful partnerships.

The UC Experience
It’s about placing students at the center, giving priority to the programs and services that bring students to UC, keeps
them here and helps them reach their educational goals.

Through these initiatives, UC will support scholarships and fellowships, providing opportunities to students; faculty
support and endowed chairs, advancing great teaching; excellence in research throughout the university’s programs;
and enriching the students’ educational journeys through experiential opportunities.

6
INDEPENDENT AUDITORS’ REPORT

The Board of Trustees of

The University of Cincinnati

We have audited the accompanying statements of net assets of the University of Cincinnati (the “University”), a
component unit of the State of Ohio, as of June 30, 2008 and 2007 and the related statements of revenues, expenses and
changes in net assets and of cash flows for the years then ended. These financial statements are the responsibility of the
University’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We did not audit the financial statements of the University of Cincinnati Foundation, a discretely presented component
unit. Those financial statements were audited by other auditors whose report has been furnished to us, and our opinion,
insofar as it relates to the amounts included for the University of Cincinnati Foundation, is based solely on the report of
such other auditors.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the University’s internal control over financial reporting. Accordingly, we express no such opinion.
An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audits and the reports
of other auditors provide a reasonable basis for our opinion.

In our opinion, based on our audits and the reports of the other auditors, such financial statements present fairly, in all
material respects, the financial position of the University as of June 30, 2008 and 2007, and the results of its operations
and its cash flows (where applicable) for the years then ended in conformity with accounting principles generally
accepted in the United States of America.

As discussed in Note 1C to the financial statements, the financial statements include investments valued at $416 million
(22% of net assets) and $437 million (22% of net assets) as of June 30, 2008 and 2007, respectively, whose fair values
have been estimated by management in the absence of readily determinable fair values. Management's estimates are
based on information provided by the fund managers or the general partners.

As discussed in Note 12 to the financial statements, the University has a 29.12% equity interest in the Health Alliance of
Greater Cincinnati (the “Alliance”) as a participating entity and has included such $389,446,000 equity investment in
other long-term investments as of June 30, 2008 in the Statement of Net Assets. During 2006 certain other Alliance
participating entities delivered notices to the Alliance of their intention to terminate their participation in the Alliance.
During 2007, it was entered in the Court of Common Pleas of Hamilton County, Ohio that these certain entities have the
right to terminate their participation in the Alliance. No amounts have been reflected in the financial statements related to
such litigation matter as the amounts are not determinable.

Management’s Discussion and Analysis on pages 9–20 is not a required part of the basic financial statements but are
supplementary information required by Governmental Accounting Standards Board. The supplementary information is
the responsibility of the University’s management. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the supplementary
information. However, we did not audit the information and express no opinion on it.

October 13, 2008

UNIVERSITY OF CINCINNATI JUNE 30, 2008

MANAGEMENT DISCUSSION AND ANALYSIS

INTRODUCTION

The following discussion and analysis provide an overview of the financial position and activities of the University of
Cincinnati (the “University”) for the year ended June 30, 2008, with selected comparative information for the years
ended June 30, 2007 and 2006. Comments relate only to the University and do not pertain to the University of
Cincinnati Foundation, a component unit of the University. This discussion has been prepared by management and
should be read in conjunction with the financial statements and the notes thereto, which follow this section.

The University was founded in 1819 and was city owned until becoming a state university in 1977. The University is
composed of 16 colleges and operates on three campuses in southwest Ohio. The University has been designated
by the Ohio Board of Regents as one of only two comprehensive graduate public universities in the state. It has an
enrollment of approximately 37,000 students. Faculty total approximately 4,300 with 2,300 having full-time status. In
total, there are more than 15,000 people employed by the University, making it the largest employer in the Cincinnati
region.

The University and its Board of Trustees are declared by statute to be a public body performing essential
governmental functions serving public purposes and an instrumentality of the State of Ohio. The Board of Trustees
comprises nine members appointed by the Governor of Ohio for overlapping terms of nine years.

The University is affiliated with a number of health care, educational, cultural and governmental institutions. Through
such affiliations, the University is able to broaden its curricular offerings.

USING THE FINANCIAL STATEMENTS

The University’s financial report includes three financial statements: the Statement of Net Assets; the Statement of
Revenues, Expenses and Changes in Net Assets; and the Statement of Cash Flows. These financial statements are
prepared in accordance with Governmental Accounting Standards Board (GASB) Statement 35, Basic Financial
Statements—and Management’s Discussion and Analysis—for Public Colleges and Universities, as amended by
GASB Statements 37 and 38. These statements establish standards for external financial reporting for public
colleges and universities and require that financial statements focus on the University as a whole, with resources
classified for accounting and reporting purposes into three net asset categories.

Revenues and expenses are categorized as either operating or non-operating. Significant recurring sources of the
University’s revenues, including state appropriations, gifts and investment income are considered non-operating.
Prior year federal and state grant programs totaling $24 million for fiscal year 2007 have been reclassified from
operating revenue to non-operating revenue on the Statement of Revenues, Expenses and Changes in Net Assets to
conform to the current year presentation. This reclassification was the result of the issuance by GASB of an
implementation guide that clarified that certain non-exchange grants should be reporting as non-operating revenues.

Scholarship allowances applied to student accounts are shown as a reduction of student tuition and fee revenues,
while stipends and other payments made directly to students are presented as scholarship and fellowship expense.

Capital assets, including general infrastructure assets, are shown net of depreciation. However, there is no
requirement to fund the accumulated depreciation. Instead, capital assets are largely funded by state capital
appropriations, issuance of debt, and by major gifts that support the academic, research and student services
missions of the institution. Gifts and capital appropriations are reflected on the financial statements as non operating
revenue and other revenue, respectively. The corresponding annual depreciation expense is reflected as an
operating expense.

Accounts of the University of Cincinnati Foundation have been consolidated in the accompanying financial
statements in a discrete columnar format.

8
UNIVERSITY OF CINCINNATI JUNE 30, 2008

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 3,074,622

Current 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 1,208,973

Total net assets $ 1,925,515 $ 1,970,740 $ 1,865,649

9
UNIVERSITY OF CINCINNATI JUNE 30, 2008

The following graph illustrates the University’s assets, liabilities and net assets:

(in thousands)

3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
-
Assets Liabilities Net Assets

2008 2007 2006

Current Assets

Current assets consist primarily of cash and cash equivalents, short-term investments and receivables. Cash and
cash equivalents and short-term investment balances include both operating cash and capital debt proceeds. In
2008, the level of cash and short-term investments increased by $28 million, primarily a result of the University’s cash
operating policy that was originally implemented in fiscal year 2007. Deposits with bond trustees increased by $4
million; a result of depositing capital interest related to the issuance of debt. These factors contributed in part to an
overall increase of $37 million, or 13%, in total current assets.

Endowment and Other Investments

In 2008 the University’s endowment exceeded $1 billion for the fourth year in a row. According to the National
Association of College and University Business Officers Endowment Study, the value of the endowment ranks in the
top 10% of all US institutions of higher education, both public and private.

The University invests its endowment to maximize total return over the long term with an appropriate level of risk.
The success of this long-term investment strategy is evidenced by strong returns sustained over long periods of time
and the University’s ability, in the face of current challenging markets, to limit losses. Changes in the fair value of the
endowment portfolio will not have a meaningful immediate impact on the portion of investment income available to
support current-year operating expenses because the University makes such distributions pursuant to its spending
rate policy.

The University’s endowment value decrease of $88 million in 2008 is a result of the following:

• Negative investment returns of $60 million in 2008.

• Funding added to existing endowments and the establishment of new endowments of $38 million

• Distributions to beneficiaries and fees of $66 million.

In 2007, investment returns, new funding and distributions were $145 million, $17 million and $72 million,
respectively.

Under its endowment spending policy, the University uses its endowment to support current operations in a way that
generates a predictable stream of support, while at the same time maintaining the purchasing power of endowment
funds adjusted for inflation. The spending policy provides for annual distributions of 5% (temporarily increased to 6%
for 2007 through 2009) of the three-year quarterly moving-average market value of assets in the investment pool.

10
UNIVERSITY OF CINCINNATI JUNE 30, 2008

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, $141 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.

11
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Major capital projects in design

• Medical Sciences Building Rehabilitation, Phases 2-5 – $204 million project that will complete the renovation of
the Medical Sciences Building; a 945,000 gross sq. ft. facility. Phases 2-5 include renovation of building systems
to achieve compliance with current codes along with a space utilization design that will permit flexibility for
reconfiguration of the facility over the life of the building and will extend the building’s life another 25 – 30 years.

Debt

Total debt representing bonds, notes and certificates of participation, was increased by $17 million in 2008 as a result
of issuing $275 million of debt and by decreasing outstanding debt by $258 million. The $275 million of debt was
issued to fund various capital projects and to refund existing debt. The $258 million decrease in debt was due to
refunding and the retirement of principal. Debt was increased by $105 million in 2007, due to the issuance of new
debt of $268 million and decreasing outstanding debt by $163 million. That new debt was also used to fund capital
projects and to refund $78 million of existing debt. As a result of the 2008 refunding, the University will realize a net
economic gain of $2 million over 14 years.
The University does not have any auction rate bonds outstanding, as a result of refunding issuances during 2008.
The University did not have any failed auctions in 2008. Likewise, there has not been a significant failed remarketing
on the weekly reset variable rate bonds.
Subsequent to June 30, 2008, the University has issued $36 million in Series 2008E BANS to refinance Series 2007B
insured variable rate bonds. In addition, the University has amended the Standby Bond Purchase Agreement (SBPA)
associated with the Series 2004B insured variable rate bonds to eliminate the potential of a termination of the SBPA
without notice to the bondholders. As a result of this amendment, interest rates have significantly improved. In an
effort to further improve interest rates, the University is planning to issue Series 2008F variable rate bonds, which will
be secured by a letter of credit that will refinance the Series 2004B insured variable rate bonds secured by the SBPA.
The University will continue to monitor the variable rate market and take appropriate action as necessary.
The University executed its first interest rate swap agreement in the spring of 2008 in connection with the issuance of
Series 2008B variable rate bonds and a qualified hedge with respect to bonds which are expected to be issued on or
before May 1, 2009. The intent of these derivative transactions is to protect the University against the potential of
rising interest rates. GASB Statement Number 53, Accounting for 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. The University will implement the Statement in
fiscal year 2010 as required.
Ratings of University bonds by Standard & Poors (S&P) were maintained at A+ in 2007 and in 2008. S&P also
maintained its rating on the University’s certificates of participation at A in 2007 and 2008. The note rating of SP-1+
was maintained through 2007 and 2008 however S&P‘s outlook remained negative during 2008. Moody’s revised the
ratings for bonds from A1 in 2007 to A2 in 2008. The rating for certificates of participation was revised from A2 in
2007 to A3 in 2008. The MIG1 rating for notes was maintained through 2007 and 2008. Moody’s revised the outlook
for the University from negative to stable during 2008. Series 2008E BANS, issued subsequent to June 30, 2008,
maintained the same note ratings and outlooks as those received during 2008.
The University continues to invest in its expansion of research and educational facilities beyond the level provided by
state capital appropriations through the issuance of additional debt. The extensive investment in these facilities was
necessary to attract high quality students, faculty, and research funding in an increasingly competitive environment.
The University’s debt financing activity in the future will focus on Academic Health Center projects, renovations of
existing facilities and building systems, and the overall management of the debt portfolio.

12
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Net Assets

Net assets represent the residual interest in the University’s assets after liabilities are deducted. The University’s net
assets at June 30 for the years 2008, 2007 and 2006 are summarized below:

(in thousands) 2008 2007 2006

Invested in capital assets, net of related debt $ 455,967 $ 478,971 $ 516,992
Restricted:
Nonexpendable 1,202,523 1,265,492 1,115,611
Expendable 391,590 413,063 398,304
Unrestricted (124,565) (186,786) (165,258)
Total net assets $ 1,925,515 $ 1,970,740 $ 1,865,649

The following graph illustrates the components of the University’s net assets:

Net Assets
(in thousands)

2,000,000

1,500,000

1,000,000

500,000

-
2008 2007 2006
(500,000)

Invested in capital assets, net of related debt Restricted Unrestricted

Capital assets, net of depreciation and related debt, represent the University’s depreciated buildings, equipment and
infrastructure less the outstanding principal balances of debt attributable to the acquisition, construction and
improvement of those assets. The decreases of $23 million in 2008 and $38 million in 2007, respectively, reflect the
University’s continued development and renewal of its capital assets in accordance with the Master Plan, net of
depreciation expense and long term debt.

Restricted nonexpendable net assets include, as a primary component, the University’s permanently invested
endowment funds. It also includes the University’s equity interest in The Health Alliance of Greater Cincinnati. The
$63 million decrease in restricted nonexpendable net assets in 2008 and the $150 million increase in 2007 reflect the
changes in the fair value of investments, net of gifts.

Restricted expendable net assets are subject to externally imposed provisions governing their use. This category of
net assets includes restricted quasi-endowments of $280 million in 2008 and $291 million in 2007 that were
temporarily invested in the endowment.

The deficit in unrestricted net assets decreased by $62 million in 2008 due to the University’s strategic actions to
address the deficit position. Specific measures initially implemented in 2007 and continued in 2008 to address the
deficit position include reorganizing around principles of greater accountability, disciplined financial activities, and
integrated budget planning. A large portion of the deficit decrease was attributable to elimination of the College of

13
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Medicine’s $24 million Millennium Plan deficit through a $15 million transfer from an expendable endowment fund and
a $9 million transfer from a quasi-endowment fund, both of which were established for the benefit of the College of
Medicine. The Millennium Plan, initially established to increase the University’s research initiatives and facilitate
strategic faculty new hires in the College of Medicine, was dissolved due to a lack of state and federal funding. The
research growth plan is now addressed through the Medical College’s annual budget and planning process.

The University’s endowment spending policy distribution has also been temporarily increased from 5% to 6% for 2007
and 2008 to address the deficit in unrestricted new assets. Additionally, the deficit will continue to be addressed
through budget cuts and multi-year funding using a combination of departmental and central budget sources to
resolve these fund deficits over time.

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS

The statement of revenues, expenses and changes in net assets presents the University’s results of operations. In
accordance with GASB reporting standards, revenues and expenses are classified as either operating or non-
operating. A summarized comparison as of June 30 for years 2008, 2007 and 2006 follows:

(in thousands) 2008 2007 2006

Operating revenue:
Student tuition and fees, net $ 272,910 $ 260,605 $ 230,778
Grants and contracts 172,338 167,866 168,574
Auxiliary enterprises, net 82,415 77,039 73,815
Other 70,879 64,296 61,873
Total operating revenues 598,542 569,806 535,040

Operating expenses:
Instruction 283,503 285,671 281,857
Research 157,843 153,247 144,764
Auxiliary enterprises 78,163 77,509 80,397
Depreciation 87,765 87,360 79,096
Other 325,767 323,113 342,591
Total operating expenses 933,041 926,900 928,705
Operating loss (334,499) (357,094) (393,665)

Non-operating revenues (expenses):

State appropriations 193,814 185,864 179,857
Federal and state grants (non-exchange) 27,633 24,494 22,092
Gifts 56,310 46,356 49,151
Investment income, net 72,739 60,311 54,443
Increase (decrease) in fair value of investments (96,616) 166,878 130,169
Interest on capital asset related debt (41,264) (40,245) (31,005)
Other non-operating expenses (1,600) (9,892) (6,909)
Total non-operating revenues 211,016 433,766 397,798

Income (loss) before other revenues, expenses,

gains or losses (123,483) 76,672 4,133
Capital appropriations 39,362 8,778 19,344
Capital grants and gifts 1,228 2,675 7,587
Additions to permanent endowments 37,668 16,966 13,414

Increase (decrease) in net assets $ (45,225) $ 105,091 $ 44,478

14
UNIVERSITY OF CINCINNATI JUNE 30, 2008

The following graphs illustrate the operating revenues and expenses as of June 30, 2008:

Operating Revenues - Year 2008

1%
14%

11% Student tuition and fees, net

Federal grants and contracts
45% State and local grants and contracts
Nongovernmental grants and contracts
Sales and services of educational departments
3% Auxiliary enterprises
1% Other operating revenues

25%

Operating Expenses - Year 2008

9%

8%
31%
Instruction
3% Research
Public Service
Academic Support
Student Services
7%
Institutional Support
Operation Maintenance and Plant
Scholarships and Fellowships
Auxiliary Expenses
Depreciation
8%

4%
17%

7%
6%

Statement of Revenues, Expenses and Changes in Net Assets Highlights:

15
UNIVERSITY OF CINCINNATI JUNE 30, 2008

The University’s aggressive efforts related to improving operations were responsible for a $29 million increase in
operating revenues, primarily from student tuition and fees. Additionally, operating costs were contained to a minimal
increase of $4 million. Non-operating revenues increased in general with the exception of the adjustment for the fair
value of investments. The fair value of investments decreased by $97 million during 2008 compared to an increase
of $167 million in 2007. Overall, the University’s net assets decreased in 2008 by $43 million which was attributable
to the loss on the fair value of investments.

Continuous financial improvements have been achieved and are evidenced by comparing certain 2008, 2007, and
2006 financial results. This analysis excludes financing activities, loss on disposal of assets, and certain other non-
operating expenses. The result of the analysis is an improvement in 2008 of $44 million and $42 million in 2007.

(in thousands) 2008 2007 2006

Operating revenues 598,542 569,806 535,040

Operating expenses (933,041) (926,900) (928,705)

State appropriations 193,814 185,864 179,857

Federal and state grants (non-exchange) 27,633 24,494 22,092

Gifts 56,310 46,356 49,151

Total (56,742) (100,380) (142,565)

One of the University’s greatest strengths is the diverse stream of revenues that supplements its student tuition and
fees, including voluntary private support from individuals, foundations and corporations along with government and
other sponsored programs; state appropriations and investment income. The University has aggressively sought,
and will continue to seek, funding from all possible sources consistent with its mission to supplement student tuition,
and will prudently manage the financial resources realized from these efforts to fund its operating activities.

Operating

• Operating revenues increased by $29 million in 2008, compared to $35 million in 2007, primarily from
increased tuition revenue, grants and contracts, sales and services of educational departments, and
auxiliary enterprises.

• Tuition is the primary source of funding for the University. For 2008, the State legislated a cap in Ohio
residential tuition; Ohio graduate and non-Ohio resident tuition was not capped. Tuition and fees for the
2007-2008 academic year ranged from $4,542 to $28,473 for Ohio residents and from $11,394 to $49,653
for out-of-state residents. Given the tuition cap, the increase in tuition revenues was driven mainly by
enrollment increases, which ranged from 3% to 2% in 2008 and 2007, respectively.

• Sales and services of educational departments revenue increased by $7 million in 2008, compared to a $3
million increase in 2007.

• Revenue from auxiliary enterprises increased by $5 million in 2008 and $3 million in 2007.

• Operating expenses in total were contained to an increase of $6 million in 2008, compared to a reduction of
$2 million in 2007. The increase in 2008 was mainly attributable to an increase in research activity
expenditures.

16
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Non-Operating Excluding Other Revenues, Expenses, Gains or Losses

• State appropriations increased by $8 million in 2008 and $6 million in 2007, reflecting an improvement from
the recent trend of flat or decreasing state support for higher education. State appropriations now contribute
a significantly lower percentage of the overall funding of University operations, particularly compared to
tuition. Nonetheless, such resources remain a vital source of funding for academic programs and
administrative costs.

• Revenues from federal and state grants (non-exchange) provide for the recovery of direct and indirect costs.
Such revenues increased $3 million in 2008 and $1 million in 2007. In a time of heightened
competitiveness, especially for federal research funding, the University is maintaining its research base.

• The results of fund-raising efforts have been an important component of financial resources. Expendable
gifts to the University totaled $56 million and $46 million in 2008 and 2007, respectively. It will be difficult to
sustain the current level of operations without continued increases in donor support, which highlights the
importance of the success of the 8-year gift campaign that spans 2005 – 2013.

• Investment income increased $12 million in 2008 and $6 million in 2007, primarily reflecting higher interest
rates in the short-term market.

• The University’s fair value of investments decreased by $97 million in 2008 due to volatile financial market
conditions, expendable endowment commitments, and fund-raising fees. The University’s fair value of
investments increased by $167 million in 2007 due to a favorable investment market.

Overall Summary

There are significant transactions included in the income (loss) before other revenues, expenses, gains or
losses amount. These items, which fluctuate each year, are listed below with their net effect on the financial
statements.

• Fluctuations in the market value of investments

• Depreciation expense
• Additions to permanent endowments
• State capital appropriation revenue

The net effect of these significant transactions on income (loss) before other revenues, expenses, gains or
losses is shown below.

(in millions) 2008 2007 2006

Change in investment value $ (97) $ 167 $ 130

Depreciation (88) (87) (79)
Additions to permanent endowments 38 17 13
State capital appropriations 39 9 19
$ (108) $ 106 $ 83

17
UNIVERSITY OF CINCINNATI JUNE 30, 2008

STATEMENT OF CASH FLOWS

The Statement of Cash Flows provides additional information about the University’s financial results by reporting the
major sources and uses of cash. A comparative summary of the statement of cash flows for the years ended June 30
follows:

(in thousands) 2008 2007 2006

Cash received from operations $ 602,217 $ 590,333 $ 546,996
Cash expended for operations 832,663 838,089 847,806
Net cash used in operating activities (230,446) (247,756) (300,810)
Net cash provided by non-capital financing activities 312,945 258,226 247,700
Net cash used for capital and related
financing activities (90,565) (68,223) (79,431)
Net cash from investing activities (6,724) 89,113 118,435

Net increase (decrease) in cash and cash equivalents $(14,790) $ 31,360 $ (14,106)

The disparity between cash used in operating activities and cash provided by non-capital financing activities is a
result of the required financial reporting classification of state appropriations and gifts. Although state appropriations
and gifts are used primarily for operating expenses of the University, GASB Statement 35 requires that they be
reported as non-operating revenues. Had these resources been reported as operating revenue, the net cash used in
operating activities would have been an increase of $86 million in 2008 and a deficit of $5 million in 2007.

THE UNIVERSITY’S ECONOMIC OUTLOOK

The University of Cincinnati has a strong tradition of effective planning, resource allocation and assessment that has
allowed it to fulfill its mission, improve the quality of its education and respond to future challenges and opportunities.
To ensure the University is able to support this level of excellence, the University is committed to obtaining new
financial resources, to maintaining revenue diversification and to successfully containing costs.

The University continues to achieve its academic goals of increased enrollment, improved scholastic achievement for
the incoming freshmen class, student retention, and improved graduation rates. The University is projecting a total
enrollment of more than 37,000 students for autumn quarter of the 2009 academic year. This is the largest number of
students in 18 years and an increase of more than 500 students over FY 2008’s total enrollment of 36,518. Early
admission figures indicate that freshmen entering UC’s baccalaureate colleges on the Uptown Campus hold an
average ACT test score of 24.8, significantly higher than last year’s average of 24.1 and also higher than the national
average ACT test score of 21.1. SAT test scores are up to 1125 this fall, compared with an average of 1109 last fall.
Among the class are:

• 14 Cincinnatus $80,000 full-ride scholarship recipients

• 897 Cincinnatus total scholarship recipients
• 44 National Merit Scholars, a record for incoming freshmen
• 29 recipients of UC’s Darwin T. Turner scholarship program
• 30 Demakes Legacy Scholars
• 67 valedictorians
• 19 salutatorians

UC’s graduation and retention rates have been steadily improving over the last five years. For fall 2008, the retention
rate is projected to rise 2% over last year, reaching 84%. The graduation rate is projected to reach 55%, up 3%
compared to last year. For both, that is an increase of 7% over five years ago.

18
UNIVERSITY OF CINCINNATI JUNE 30, 2008

The University is state supported with appropriations accounting for 20% and 18% of the total revenues of the
University in 2008 and 2007, respectively. Ohio’s trend in funding higher education has been positive in the past 3
years. Governor Strickland has also made a commitment to higher education which includes a proposed new state
appropriation formula based on retention rates, graduation rates, and increases in research. It is anticipated that this
new formula will benefit the University.

Private gifts will continue to be a critically important financial resource and a significant factor in the growth of both
academic and research activities. To address the issue, the University established an $800 million gift campaign to span
8 years which commenced July 1, 2005 and will end on June 30, 2013. The campaign is the largest in the 188-year
history of UC. Expected campaign priorities are student scholarships, fellowships to encourage advanced
scholarship and research, endowed appointments for top-notch faculty, academic program support and campus
enhancements. Throughout the campaign, the Foundation expects to have more than 500 volunteers actively
engaged. Regional committees will also focus on cultivating relationships with alumni and friends. Work has already
begun in New York, Chicago, Washington, DC, and Silicon Valley.

The current investment climate has been volatile and the University will work to minimize losses and maximize profits
through employment of a long-term investment strategy. The ability to sustain a level of investment return which is
compatible with the endowment spending policy is strained given the current performance of national and
international financial markets. Such investment strategies will be continually reviewed in order to insure the most
efficient use of the University’s financial resources.

19
 University of Cincinnati
Statement of Net Assets
As of June 30, 2008 and 2007
(in thousands)

University Related
University Foundation
2008 2007 2008 2007

ASSETS
Current assets:
Cash and cash equivalents $ 75,285 $ 90,075 $ 14,160 $ 10,684
Investments 53,916 11,097
Accounts and pledges receivable, net 67,683 47,058 14,744 20,119
Inventories 2,001 1,806
Deposits with bond trustees 4,920 780
Notes receivable, net 3,266 2,869
Other assets 494 17,048 117 113
Total current assets 207,565 170,733 29,021 30,916

Noncurrent assets:
Investments 53,591 33,122
Accounts and pledges receivable, net 10,151 23,737 45,736 15,000
Deposits with bond trustees 10,423 7,975
Endowment investments 1,095,327 1,183,723 15,651 19,511
Notes receivable, net 33,282 29,620
Other long-term investments 390,454 380,545
Capital assets, net 1,469,215 1,470,743 1,251 1,220
Total noncurrent assets 3,062,443 3,129,465 62,638 35,731
Total assets 3,270,008 3,300,198 91,659 66,647

LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 153,761 158,014 10,634 11,017
Deferred revenue 40,429 29,669
Long-term liabilities - current portion 65,403 138,811
Total current liabilities 259,593 326,494 10,634 11,017

Noncurrent liabilities:
Deposits 3,228 10,076 713 835
Accrued liabilites 29,779 31,055
Refundable advances for federal loans 26,276 26,311
Long-term liabilities 1,025,617 935,522
Total noncurrent liabilities 1,084,900 1,002,964 713 835
Total liabilities 1,344,493 1,329,458 11,347 11,852

NET ASSETS
Invested in capital assets, net of related debt 455,967 478,971 1,251 1,220
Restricted for:
Nonexpendable 1,202,523 1,265,492 47,037 29,389
Expendable 391,590 413,063 30,944 19,850
Unrestricted (124,565) (186,786) 1,080 4,336
Total net assets $ 1,925,515 $ 1,970,740 $ 80,312 $ 54,795

See accompanying notes to financial statements. 20

 University of Cincinnati
Statement of Revenues, Expenses and Changes in Net Assets
For the Years Ended June 30, 2008 and 2007
(in thousands)

University Related
University Foundation
REVENUES 2008 2007 2008 2007
Operating revenues:
Student tuition and fees, net $ 272,910 $ 260,605 $ $
Federal grants and contracts 148,273 148,124
State and local grants and contracts 6,580 5,568
Nongovernmental grants and contracts 17,485 14,174
Sales and services of educational departments 66,041 58,645
Auxiliary enterprises:
Residential life 30,139 27,591
Athletics, net 15,380 13,184
Other Auxiliary enterprises 36,896 36,264
Other operating revenues 4,838 5,651
Total operating revenues 598,542 569,806 - -

EXPENSES
Operating expenses:
Instruction 283,503 285,671
Research 157,843 153,247
Public Service 57,247 56,592
Academic Support 63,944 66,306
Student Services 37,722 37,188
Institutional Support 79,664 77,054 7,740 7,804
Operation Maintenance and Plant 63,560 61,499
Scholarships and Fellowships 23,630 24,474
Auxiliary Expenses 78,163 77,509
Depreciation 87,765 87,360 275 210
Total operating expenses 933,041 926,900 8,015 8,014
Operating loss (334,499) (357,094) (8,015) (8,014)

NONOPERATING REVENUES (EXPENSES)

State appropriations 193,814 185,864
Federal and state grants (non-exchange) 27,633 24,494
Gifts, including $27,264 in FY08 and $22,927 in FY07
from the University Foundation 56,310 46,356 57,425 27,778
Investment income, net 72,739 60,311 4,848 5,212
Increase (decrease) in fair value of investments (96,616) 166,878 (1,477) 5,009
Interest on capital asset-related debt (41,264) (40,245)
Gain (loss) on disposal of assets (1,136) 1,659
Payments to University of Cincinnati - - (27,264) (22,927)
Other nonoperating expenses (464) (11,551)
Net nonoperating revenue 211,016 433,766 33,532 15,072
Income (loss) before other revenues,
expenses, gains or losses (123,483) 76,672 25,517 7,058
Capital appropriations 39,362 8,778
Capital grants and gifts 1,228 2,675
Additions to permanent endowments 37,668 16,966
Increase (decrease) in net assets (45,225) 105,091 25,517 7,058

NET ASSETS
Net assets - beginning of year 1,970,740 1,865,649 54,795 47,737
Net assets - end of year $ 1,925,515 $ 1,970,740 $ 80,312 $ 54,795

See accompanying notes to financial statements. 21

 University of Cincinnati
Statements of Cash Flows
Years Ended June 30, 2008 and 2007
(in thousands)

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

See accompanying notes to financial statements. 22

 University of Cincinnati
Statements of Cash Flows - continued
Years Ended June 30, 2008 and 2007
(in thousands)

2008 2007
RECONCILIATION OF NET OPERATING LOSS TO
NET CASH USED FOR OPERATING ACTIVITIES:

Operating loss $ (334,499) $ (357,094)

Adjustments to reconcile operating loss to net cash
used for operating activities:
Depreciation expense 87,765 87,360
Loss (gain) on disposal of capital assets 1,136 (1,659)
Changes in assets and liabilities:
Receivables, net (9,904) (2,405)
Inventories (195) (2,052)
Other assets 16,035 549
Accounts payable and accrued liabilities (3,402) 26,378
Deferred revenue 7,334 4,395
Compensated absences (1,244) (1,913)
Deposits 6,528 (1,316)
Net cash used for operating activities $ (230,446) $ (247,757)

Non cash transactions:

Capital asset acquired by incurring note payable $ - $ 2,800
Accrued liabilities for construction in progress 7,549 7,996

See accompanying notes to financial statements. 23

UNIVERSITY OF CINCINNATI JUNE 30, 2008

NOTES TO FINANCIAL STATEMENTS

For the Years Ended June 30, 2008 and 2007

1. Organization and Summary of Significant Accounting Policies

A) Organization

The University of Cincinnati (the University) was founded in 1819 with the first charter granted by the State of
Ohio in 1870. The University, formerly city owned, became a State University on July 1, 1977. As such, it is
a component unit of the State of Ohio. Under provisions of the Internal Revenue Code, Section 115, and the
applicable income tax regulations of the State of Ohio, the University, as a state institution, is exempt from
taxes on income other than unrelated business income. Since the University has no material net unrelated
business income during the year ended June 30, 2008, no provision for income taxes has been made.

The accompanying financial statements consist of the accounts of the University and the accounts of the
University of Cincinnati Foundation (the Foundation). The Foundation, which is a component unit of the
University in accordance with the provisions of the Governmental Accounting Standards Board (GASB)
Statement 14, The Financial Reporting Entity, is described more fully in Note 16. The Foundation is exempt
from Federal income taxes under the provisions of Internal Revenue Code Section 501(c)(3).

B) Basis of Presentation

The financial statements have been prepared in accordance with accounting principles generally accepted in
the United States of America, as prescribed by the GASB. The University has elected not to apply those
Financial Accounting Standards Board (FASB) pronouncements issued after November 30, 1989.

The University’s financial resources are classified for accounting and reporting purposes into the following three
net asset categories:

Invested in Capital Assets Net of Related Debt—Capital assets, net of accumulated depreciation and
outstanding principal balances of debt attributable to the acquisition, construction or improvement of those
assets.

Restricted—Nonexpendable restricted net assets are subject to externally imposed stipulations that they be
maintained permanently by the University. Such assets include the University’s permanent endowment funds.

Restricted—Expendable restricted net assets are subject to externally imposed stipulations that can be fulfilled
by actions of the University pursuant to those stipulations or that expire by the passage of time.

Unrestricted—Net assets that are not subject to externally imposed stipulations. Unrestricted net assets may
be designated for specific purposes by action of management or the Board of Trustees or may otherwise be
limited by contractual agreements with outside parties. Substantially all unrestricted net assets are designated
for academic and research programs and initiatives and for capital programs.

C) Summary of Significant Accounting Policies

The accompanying financial statements have been prepared on the accrual basis. The University reports as
a Business Type Activity as defined by GASB Statement No. 35. A Business Type Activity is financed in
whole or in part by fees charged to external parties for goods or services.

Investments in marketable securities (other than the University’s alternative investments) are carried at fair
value as established by the major securities markets (quoted market prices). Investment income is recorded
on the accrual basis. Realized and unrealized gains and losses are reported as non-operating revenues
(expenses).

24
UNIVERSITY OF CINCINNATI JUNE 30, 2008

The University’s financial statements include alternative investments, such as limited partnerships, that are
not publicly traded. Certain of these alternative investments are carried at estimated fair value as of March
31, 2008 and 2007, as adjusted by cash receipts, cash disbursements and securities distributions through
June 30, 2008 and 2007, at a total estimated fair value of $98 million and $83 million, respectively. In
addition, the University also has alternative investments in investment funds that are not themselves publicly
traded and thus do not have publicly reported market values, but whose underlying assets consist of publicly
traded investments for which fair values are established by the major securities markets. Such alternative
investments are carried at fair value of $318 million and $354 million at June 30, 2008 and 2007. The
University believes that the total carrying amount of its alternative investments valued at $416 million and
$437 million at June 30, 2008 and 2007 is a reasonable estimate of fair value. The University’s outstanding
commitment to alternative investments is $42 million and $25 million as of June 30, 2008 and 2007,
respectively.

The University’s investment securities, in general, are exposed to various risks, such as interest rate, credit,
and overall market volatility risks. Due to the level of risk associated with certain investment securities, it is
reasonably possible that changes in the values of investments could occur in the near term and that such
changes could materially affect the investment amounts reported in the accompanying Statement of Net
Assets. Subsequent to June 30, 2008, conditions in the worldwide debt and equity markets have
deteriorated significantly. These conditions have had a negative effect on the fair value of the University’s
investments since June 30, 2008. However, we are unable to quantify the exact effect on the University.

Inventories are held primarily by the central store and are stated at the lower of cost or net realizable market
value. The moving-average basis for all inventories is used to determine inventory cost.

Capital Assets—Land, land improvements, infrastructure, buildings and equipment are recorded at cost at
date of acquisition, or market value at date of donation. The University’s capitalization threshold is $100,000
for major capital projects and $5,000 for all other capitalized items. Interest on related borrowing, net of
interest earnings on invested proceeds, is capitalized during the period of construction. University and
Foundation property and equipment are depreciated using the straight-line method over the estimated useful
lives (from five to fifty years) of the respective assets. When plant assets are sold or disposed of, the
carrying value of such assets and the associated depreciation are removed from the University’s records.

The University does not capitalize works of art or historical treasures that are held for public exhibition,
education or research in furtherance of public service. These collections are neither disposed of for financial
gain nor encumbered in any way. In addition, the University requires the proceeds from the sale of collection
items be used to acquire other collection items. Accordingly, such collections are not recognized or
capitalized for financial statement purposes. All other works of art or historical treasures are capitalized at
historical or fair value at date of donation.

Gift Pledges—The University receives pledges and bequests of financial support from corporations,
foundations and individuals. Revenue is recognized when a pledge representing an unconditional promise
to pay is received and all eligibility requirements, including time requirements, have been met. In the
absence of such promise, revenue is recognized when the gift is received.

Unconditional promises to give that are expected to be collected in future years are recorded at the present
value of the estimated future cash flows. The discounts on these amounts are computed using a discount
rate commensurate with the risks involved. At June 30, 2008, these discount rates ranged from 4% to 6%.
An allowance for uncollectible pledges receivable is provided based on management’s judgment of potential
uncollectible amounts. The determination includes such factors as prior collection history, type of gift and
nature of fund-raising.

Deferred Revenue includes amounts received in advance of an event.

Endowment Spending Policy—For donor restricted endowments, the Uniform Management of Institutional
Funds Act permits the University to distribute an amount of realized and unrealized endowment appreciation
as the Board of Trustees determines to be prudent. The University’s policy is to accumulate the
undistributed realized and unrealized appreciation within the endowment, which is discussed in Note 2.

Student Tuition and Residence Fees are presented net of scholarship and fellowship allowances of
$84,322,000 in 2008 and $81,510,000 in 2007 and bad debt provisions of $1,287,000 in 2008 and
$2,726,000 in 2007. Payments made directly to students are presented as scholarship and fellowship
expenses.

25
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Auxiliary Enterprise Revenues primarily represent revenues generated by bookstores, parking, the
conference center, athletics, housing, and dining.

Operating Activities, as reported on the Statement of Revenues, Expenses, and Changes in Net Assets
are those that generally result from exchange transactions such as payments received for providing services
and payments made for services or goods received. Nearly all of the University’s expenses are from
exchange transactions. Certain significant revenue streams relied upon for operations are recorded
as non-operating revenues, as defined by GASB Statement 35, including state appropriations, gifts and
investment income.

Management Estimates—The preparation of financial statements in conformity with accounting principles

generally accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported amounts of revenue and expenditures
during the reporting period. Actual results could differ from those estimates.

Reclassifications – Prior year federal and state grant programs have been reclassified from operating
revenue to non-operating revenue in the amount of $24,494,000 for fiscal year 2007 on the Statement of
Revenues, Expenses and Changes in Net Assets to conform to the current year presentation. This
reclassification was the result of the issuance by GASB of an implementation guide that clarified that certain
non-exchange grants should be reported as non-operating revenue.

2. Cash and Investments

Summary—The University maintains centralized management for substantially all of its cash and
investments. With the exception of insurance reserves, charitable remainder trusts, and other trust funds the
terms of which require separate management, the University invests its reserves and relatively short-duration
assets in the Temporary Investment Pool, and invests substantially all of the assets of the University
endowment in the Endowment Investment Pool.

Distributions are made from the University endowment to the University entities that benefit from those
funds. The endowment spending policy provides for an annual distribution of 5% of the twelve-quarter
moving-average market value of endowment units. However, during 2007 and continuing into fiscal year
2009, a temporary 6% endowment spending policy is in effect.

Authorizations—The Temporary Investment Pool is invested principally in investment-grade money-market

and fixed-income securities. Balances in the Temporary Investment Pool are primarily for operating
expenses or for funding capital projects.

The University investment policies are governed and authorized by University rules. The approved asset
allocation policy for the endowment investments sets a general target of 85% equities and 15% fixed-income
securities within broader ranges set at the discretion of the Investment Committee.

The University has an established set of investment guidelines related to targeted asset allocation and
allowable ranges for alternative investments. As commonly defined in the investment industry, the target
allocations for the three groups of alternative investments in force at June 30, 2008 are Private Real Estate
3%, Private Equity 2.5%, and Hedge Funds 3%. The allowable range for all three groups is 0% to 10%.

Diversification is a fundamental risk-management strategy for the endowment portfolio. Accordingly, the
portfolio includes investments in domestic and non-U.S. stocks, bonds and bond-like loans; real estate; and
limited partnerships consisting of venture capital, private equity and real estate.

Off-Balance-Sheet Risk—The University’s investment strategy incorporates certain financial instruments

which involve, to varying degrees, elements of market risk and credit risk in excess of amounts recorded in
the financial statements. Market risk is the potential for changes in the value of financial instruments due to
market changes, including interest and foreign exchange rate movements and fluctuations embodied in
forward, futures, and commodity or security prices. Market risk is directly impacted by the volatility and
liquidity of the markets in which the related underlying assets are traded. Credit risk is the possibility that a
loss may occur due to the failure of a counterparty to perform according to the terms of the contract. The
University’s risk of loss in the event of counterparty default is typically limited to the amounts recognized in
the Statement of Net Assets and is not represented by the contract or notional amounts of the instruments.

26
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Cash and Cash Equivalents—The University considers all highly liquid investments purchased with an
original maturity of three months or less to be cash equivalents. At June 30, 2008, the carrying amount of
the University’s cash and cash equivalents for all funds is $75,285,000 as compared to bank balances of
$85,854,000. The difference between the carrying amount and the bank balances is caused primarily by
deposits in transit and outstanding checks.

Of the University’s bank balances, $210,000 is covered by federal depository insurance; mutual funds hold
cash equivalents of $76,991,000; $6,099,000 is in public funds collateralized pools; and the balance of
$2,554,000 is uncollateralized. The University does not have a policy for custodial credit risk.

Investments — The fair value of University investments at June 30 is (in thousands):

2008 2007
U. S. government, agency and treasury securities $ 35,696 $ 38,896
Corporate notes and bonds 108,783 41,052
Corporate stocks 244,540 267,934
Mutual funds 491,049 523,885
Other securities 69,755 75,216
Real estate 12,687 12,687
Total investments 962,510 959,670
Less current investments (see detail below) 53,916 11,097
Non-current investments $908,594 $948,573

Current investment detail (in thousands):

2008 2007
U. S. government, agency and treasury securities $10,952 $ 4,568
Corporate notes and bonds 42,964 6,487
Mutual funds - 42
Total current investments $53,916 $11,097

Alternative Investments (please refer to Note 1-C, Summary of Significant Accounting Policies, regarding
valuation of alternative investments) of $416 million are included within mutual funds and other securities in
the summary schedule of investments above.

At June 30, 2008 and 2007, other securities included $82,580,000 and $81,045,000 net of $14,781,000 and
$14,534,000 of loan loss reserves, respectively, of loans made to certain nonprofit entities for the purpose of
developing residential and commercial facilities on the borders of the campus. Currently, these loans are
secured primarily by mortgages on parcels of land purchased by these nonprofit entities. Some of these
mortgages are subordinated to external financing arranged by these entities. These loans bear interest at
6%. The University expects repayment once the residential and commercial facilities have streams of rental
income. Loan loss reserves are estimated based on aggregate cash flows projections for the projects and
independent appraisals of the underlying undeveloped real estate. The loan loss reserves are reflected in
non-operating revenues (expenses), as a component of the increase in fair value of investments.

The University has recorded the investments in the table above in the following categories: $107,507,000 of
investments and $855,003,000 of endowment investments. Also, included in endowment investments as
reported on the Statement of Net Assets are $240,324,000 invested predominately in equities held in donor-
stipulated irrevocable trusts.

GASB Statement 40 requires government entities to categorize investments by interest rate risk, credit risk,
and custodial credit risk.

27
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Interest Rate Risk – The University’s investments total $962,510,000. The segmented time distribution
method is used to portray interest rate risk of $344,877,000 at June 30, 2008 of bond, other fixed income
investments, and other local mortgage rates. Investments for the years ended June 30, 2008 and 2007 are
summarized as follows (in thousands):

Investment Maturities (In Years) 2008

Investment Type Fair Value Less than 1 1-5 6-10 More than 10

US Treasury
Obligations $ 5,348 $ - $ 761 $ 1,728 $ 2,859
US Government and
Agency Obligations 26,633 10,332 155 2,015 14,131
US Treasury STRIPS 3,715 850 2,865 - -
US Treasury
Mutual Fund 71,870 - - 71,870 -
Corporate Bonds and
Notes 108,783 44,958 5,429 5,598 52,798
Bond Mutual Funds 58,343 - 18,808 39,534 1
Local mortgage secured
loans 67,799 3,503 3,788 4,908 55,600
Other 2,386 367 1,836 183 -
Total $344,877 $60,010 $ 33,642 $125,836 $125,389

Investment Maturities (In Years) 2007

Investment Type Fair Value Less than 1 1-5 6-10 More than 10

US Treasury
Obligations $ 3,517 $ - $ - $ 1,100 $ 2,417
US Government and
Agency Obligations 31,170 3,740 12,617 2,750 12,063
US Treasury STRIPS 4,209 828 3,381 - -
US Treasury
Mutual Fund 42,503 - - 42,503 -
Corporate Bonds and
Notes 41,052 7,495 14,510 5,012 14,035
Bond Mutual Funds 53,193 - 17,862 35,331 -
Local mortgage secured
loans 66,511 - - - 66,511
Other 3,908 367 1,835 551 1,155
Total $246,063 $12,430 $50,205 $87,247 $ 96,181

Local mortgage secured loans are comprised of demand notes receivable. Amounts reflected as maturities
represent management’s best estimate of anticipated collections of these receivables.

The University’s investment policy stipulates that the weighted average maturity of investments in the
Temporary Investment Pool shall be no longer than 5 years. The weighted average of fixed income
maturities in the Endowment portfolio shall not exceed 20 years.

Credit Risk - The Temporary Investment Pool permits investments in securities rated A or higher at the time
of purchase. Securities which are downgraded below an A rating after purchase are permitted to be
retained. Endowment investment-grade bonds are limited to those in the first four grades of any rating
system. Below-investment grade high yield bond investments and certain unrated investments having
strategic value to the University are permitted. In accordance with the University’s investment policy, the
University’s $344,877,000 bond and other fixed income investments are rated by nationally recognized rating
organizations as follows as of June 30 (in thousands):

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UNIVERSITY OF CINCINNATI JUNE 30, 2008

Rating 2008 2007

US Treasury Obligations – equivalent of AAA $ 77,218 $ 46,019
AAA 31,588 35,379
AA 77,527 55,693
A 77,610 27,500
BBB 10,749 11,053
Not Rated 70,185 70,419
Total $344,877 $246,063

Custodial Credit Risk – Of the University’s $962,510,000 total investments, $920,354,000 are uninsured,
not registered in the name of the University, and are held by trust departments or agents in the University’s
name, and thus are exposed to custodial credit risk. The University does not have a policy for custodial
credit risk.

University Investment Pools—Of the University investments, approximately $37,097,000 are separately
invested by donor stipulation. The remaining funds are invested in one of three pools. The Temporary
Investment Pool represents the investment of substantially all University cash not otherwise invested in the
endowment.

The Endowment Investment Pool A is the principal investment pool for the University endowments that may be
pooled legally or by donor concurrence. The University employs the share method of accounting for the
Endowment Investment Pool A investments and for proportionate distribution of income to each fund that
participates in the pool. At June 30, 2008, the Endowment Investment Pool A consisted of 7,841,000 shares.
Effective July 1, 2002, substantially all endowments held in trust, by donor stipulation, by the University of
Cincinnati Foundation were invested in the University's Endowment Investment Pool A. At June 30, 2008, such
endowments own 1,921,000 pool shares with a market value of $201,825,000, equating to approximately 25%
of the Endowment Investment Pool A. The Endowment Investment Pool B comprises real estate holdings
received by bequest.

The following tabulation summarizes the changes in relationships between cost and fair values of the
Endowment Investment Pool A assets for the year (in thousands):

Net Fair Value

Gains/ Gain/(Loss)
Net Cost Fair Value (Losses) Per Share

End of year $784,112 $822,281 $ 38,169 $105.05

Beginning of year 755,216 866,935 111,719 117.34

Unrealized net gain/(loss) for year (73,550)

Realized net gain/(loss) for year (29,836)

Total net gain/(loss) for year $(103,386) $ (12.29)

The University has adopted a spending rate policy which limits the distribution of endowment income earned in
the investment pool to 5% of the moving-average market value for the twelve-quarter period ending each
December. For FY07 through FY09, the spending policy has temporarily been increased to 6%. During 2008,
income earned was approximately $28,814,000 less than the amount allocated for spending. In accordance
with the Ohio Uniform Management of Institutional Funds Act, the cumulative shortfall of $178,735,000 as of
June 30, 2008, is funded by capital appreciation of the investment pool.

Income allocated for spending during 2008 amounted to $6.30 per share of the Endowment Investment Pool A.
The average annual earnings per share, exclusive of capital appreciation, amounted to $2.98.

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UNIVERSITY OF CINCINNATI JUNE 30, 2008

3. Accounts, Pledges and Notes Receivable

Accounts, pledges and notes receivable as of June 30, are as follows (in thousands):

2008 2007
Accounts receivable $ 59,448 $ 51,971
Pledges receivable 11,095 12,388
Notes receivable 36,548 32,489
Accrued interest receivable 7,290 6,436
Total 114,381 103,284
Less current receivables 56,865 49,927
Non-current receivables $ 57,516 $ 53,357

Allowances for uncollectible receivables have been provided in the amount of approximately $6,665,000 and
$6,926,000 for accounts receivable, $568,000 and $827,000 for pledges receivable, and $5,645,000 and
$4,903,000 for notes receivable as of June 30, 2008 and 2007, respectively.

An allowance for uncollectible accrued interest receivable has been provided in the amount of approximately
$14,084,000 and $10,439,000 related to loans made to certain nonprofit entities as of June 30, 2008 and
2007, respectively (see note #2).

Pledges have been discounted at a rate of 4% to net present value, which approximates the fair value of the
receivables as follows (in thousands):

2008 2007
Less than one year $ 4,333 $ 2,712
One to five years 3,726 5,899
More than five years 3,604 4,604
Subtotal 11,663 13,215
Less allowance for uncollectible pledges 568 827
Total $11,095 $12,388

Pledges receivable due from one donor approximated 48% and 45% of total pledges receivable, as of June
30, 2008 and 2007, respectively.

4. Capital Assets
Capital assets activity for the years ended June 30, 2008 and 2007 is summarized as follows (in thousands):

Balance Retirements/ Balance

July 1, 2007 Additions Transfers June 30, 2008
Land $ 21,923 $ - $ - $ 21,923
Land improvement 81,629 - 4,773 86,402
Buildings 1,596,622 - 13,618 1,610,240
Construction in progress 176,665 71,839 (25,250) 223,254
Infrastructure 96,353 - 3,891 100,244
Building equipment 15,193 - 58 15,251
Moveable equipment 152,999 9,064 (11,115) 150,948
Computer Software 34,940 426 (155) 35,211
Books 140,741 9,155 (549) 149,347
Art objects 4,364 - - 4,364
Total Assets 2,321,429 90,484 (14,729) 2,397,184
Less accumulated depreciation 850,686 87,765 (10,482) 927,969
Net Assets $1,470,743 $ 2,719 $ (4,247) $1,469,215

30
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Balance Retirements/ Balance

July 1, 2006 Additions Transfers June 30, 2007
Land $ 21,923 $ - $ - $ 21,923
Land improvement 78,014 - 3,615 81,629
Buildings 1,531,770 - 64,852 1,596,622
Construction in progress 141,295 131,735 (96,365) 176,665
Infrastructure 89,668 - 6,685 96,353
Building equipment 15,193 - - 15,193
Moveable equipment 145,846 9,895 (2,742) 152,999
Computer Software 28,747 200 5,993 34,940
Books 131,684 8,671 386 140,741
Art objects 4,356 18 (10) 4,364
Total Assets 2,188,496 150,519 (17,586) 2,321,429
Less accumulated depreciation 768,017 87,360 (4,691) 850,686
Net Assets $1,420,479 $ 63,159 $ (12,895) $1,470,743

5. Accounts Payable and Accrued Liabilities

Accounts payable and the current portion of accrued liabilities as of June 30, 2008 and 2007 are as follows
(in thousands):

2008 2007
Compensated absences (Current portion) $ 33,528 $ 33,941
Compensation 31,694 32,237
Accrued liabilities 53,867 59,018
Vendors payable 34,672 32,818

Total $153,761 $158,014

6. Compensated Absences

University employees earn vacation and sick leave on a monthly basis. Vacation benefits may be accrued
up to a maximum of three years’ credit, and earned but unused days are payable upon termination. Sick
leave may be accrued without limit; however, earned but unused days are payable only upon retirement
from the University, subject to 30- or 60-day limits depending upon the date of hire. The liability for the
costs of such benefits approximated $62,864,000 and $64,108,000 as of June 30, 2008 and 2007,
respectively.

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UNIVERSITY OF CINCINNATI JUNE 30, 2008

7. Bonds and Notes Payable

Bonds and notes payable at June 30, comprise the following (in thousands):

Maturity
Issue Dates Interest Outstanding Debt
Bond Series – Fixed Rate Debt Date Through Rate 2008 2007
T, X, Y, AA, AG, AH 1998 2014 4.65-5.50% $ 11,795 $ 15,855
Z, AC 1997 2012 5.05-5.15% 1,135 2,705
AD 1997 2010 5.05% 935 1,820
AL, AM, AN 1998 2018 4.40-4.75% 3,800 4,555
AL-1, AO 1999 2013 5.05-5.50% 3,985 4,670
AQ, AT, AU, AV, AZ 2000 2015 5.25-5.50% 2,645 3,145
2001A 2001 2031 5.00-5.50% 106,060 112,775
2002A 2002 2022 3.85-4.875% 4,480 4,710
2002D 2002 2022 4.00-5.00% 3,340 3,665
2002F 2003 2024 3.55-5.375% 26,710 28,370
2002G 2003 2031 3.50-5.00% 11,230 12,250
2003C 2003 2026 4.00-5.00% 69,155 73,940
2004A 2004 2031 2.25-5.00% 56,430 63,405
2004D 2004 2026 2.50-5.00% 49,095 50,050
2004E 2005 2021 2.80-5.00% 21,240 22,505
2005A 2005 2020 3.10-5.00% 69,410 69,410
2005D 2006 2019 4.00-5.00% 20,410 20,410
2006A 2006 2031 3.50-5.00% 52,035 54,075
2007A 2007 2031 3.55-5.00% 78,015 78,445
2007G 2008 2034 3.75-5.00% 89,170 0
2008C 2008 2031 3.00-5.00% 39,280 0
Total bonds payable – fixed rate debt $720,355 $626,760
Average
Interest Rate
Since
Bond Series – Variable Rate Debt Issuance
2004B – Auction Mode 2004 2008 2.79% $0 $40,000
2004B – Weekly Mode 2004 2031 3.01% 99,055 101,295
2007B – Weekly Mode 2007 2020 3.85% 38,355 39,955
2008B – Weekly Mode 2008 2024 3.27% 35,915 0
Total bonds payable – variable rate
debt 173,325 181,250

Total bonds payable $893,680 $808,010

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UNIVERSITY OF CINCINNATI JUNE 30, 2008

Maturity
Notes Payable and Issue Dates Interest Outstanding Debt
Other Debt ___ Date Through Rate 2008 2007
General Receipts Bond
Anticipation Notes:
2006D July 2006 July 2007 4.75% 0 20,025
2006E August 2006 July 2007 4.75% 0 15,000
2007C January 2007 January 2008 4.50% 0 28,000
2007D March 2007 October 2007 3.73% 0 32,810
2008A January 2008 January 2009 3.25% 30,000 0
Certificates of Participation—Ctr
For Information Tech 1993 2008 0 90
Capital Lease Obligations
University Center 1996 2011 5.00-5.10% 11,215 14,055
Edwards Center 1998 2011 5.50-5.75% 8,580 10,445
Residence Halls 2000 2028 4.65-5.50% 38,415 39,500
University Ctr Refunding 2005 2024 3.50-5.00% 52,815 52,815
Capital Lease-Stetson July 2006 June 2033 4.25-5.97% 32,745 32,745
Capital Lease-Turner July 2006 June 2033 4.00-5.25% 9,955 9,955
Loans payable-equipment 2003 2014 3.58-4.69% 5,068 6,439
Total notes payable and other debt 188,793 261,879
Total bonds and notes payable and other debt 1,082,473 1,069,889
Premium net of unamortized costs and loss on refunding 8,547 4,444
Total bonds and notes payable and other debt, net $1,091,020 $1,074,333

A) Debt Issuances and Permanent Fundings

General Receipt Bonds-Fixed Rate Debt – During the year ended June 30, 2008, the University issued
two general receipt fixed rate bond series totaling $128,450,000 that bear interest at rates ranging from
3.00% to 5.00% and mature in years 2031 and 2034. Both bond series were issued at a premium. The
proceeds were used to current refund portions of Series 2007C and 2007E BANS; current refund a portion of
Series 2004B variable rate bonds (the auction rate reset mode bonds); to finance a portion of the MSB
Phase 1/CARE/Eden Quad project, a portion of the MSB Rehabilitation Phases 2-5 project, and the
Teachers/Dyer Phase 2A project; and to pay associated bond issue costs and capitalized interest.

The refunded Series 2004B variable rate bonds had been issued to finance a portion of the MSB Phase
1/CARE/Eden Quad project. $32,250,000 of bonds was called on February 14, 2008 and the remaining
$7,750,000 of bonds was called on March 20, 2008.

General Receipt Bonds-Variable Rate Debt – During the year ended June 30, 2008, the University issued
an additional general receipt variable rate bond series, totaling $35,915,000. Series 2008B was issued April
9, 2008 in a weekly reset mode and matures in 2024. The proceeds were used to current refund
$34,855,000 of the 2008 and callable 2009 maturities of fixed rate bonds on June 1, 2008, with the goal of
building cash reserves.

The initial interest rate for the Series 2008B – weekly reset mode bonds was 1.90%. The interest rate for the
weekly mode bonds resets every week, with interest due the first business day of each calendar month.
Interest paid to date has been based on weekly rates that have fluctuated from a low of 1.52% to a high of
2.68%. The maximum interest rate on the weekly reset mode bonds is 12%. The Series 2008B bonds are
secured by a letter of credit issued by Bayerische Landesbank. Series 2008B weekly rate bondholders may
tender any of these bonds for repurchase every seven days. Any bonds so tendered will be purchased
either by the proceeds of the remarketing of such bonds or, if not successfully remarketed, by a draw on the
letter of credit. Accordingly, the University has classified the outstanding principal balance on its weekly

33
UNIVERSITY OF CINCINNATI JUNE 30, 2008

reset mode bonds that matures after June 30, 2009 as a long-term liability. As of June 30, 2008, there has
not been a failed remarketing for the weekly reset mode variable rate bonds.

The University issued general receipt insured variable rate bonds, Series 2007B, in 2007. The initial interest
rate for the Series 2007B – weekly reset mode bonds was 3.60%. The interest rate for the weekly mode
bonds resets every week, with interest due the first business day of each calendar month. Interest paid to
date has been based on weekly rates that have fluctuated from a low of 3.54% to a high of 10%. The
maximum interest rate on the weekly reset mode bonds is 12%. The University has entered into a standby
bond purchase agreement (SBPA) with a liquidity provider for Series 2007B weekly reset mode bonds.
Series 2007B weekly rate bondholders may tender any of these bonds for repurchase every seven days.
Any bonds so tendered will be purchased either by the proceeds of the remarketing of such bonds or, if not
successfully remarketed, by the liquidity provider. Accordingly, the University has classified the outstanding
principal balance on its weekly reset mode bonds that matures after June 30, 2009 as a long-term liability.
As of June 30, 2008, there has not been a failed remarketing for the weekly reset mode variable rate bonds.
The Series 2007B Bonds were retired with the issuance of Series 2008E Bond Anticipation Notes in July,
2008, as presented in Section F of this footnote.

The University issued general receipt insured variable rate bonds, Series 2004B, in 2004. These bonds
were initially issued in two modes: a portion was in the weekly reset mode and a portion was in the auction
rate reset mode.

The initial interest rate for the Series 2004B – weekly reset mode bonds was .92%. The interest rate for the
weekly mode bonds resets every week, with interest due the first business day of each calendar month.
Interest paid to date has been based on weekly rates that have fluctuated from a low of .87% to a high of
9.0%. The maximum interest rate on the weekly reset mode bonds is 12%. The University has entered into
a standby bond purchase agreement (SBPA) with a liquidity provider for Series 2004B weekly reset mode
bonds. Series 2004B weekly rate bondholders may tender any of these bonds for repurchase every seven
days. Any bonds so tendered will be purchased either by the proceeds of the remarketing of such bonds or,
if not successfully remarketed, by the liquidity provider. Accordingly, the University has classified the
outstanding principal balance on its weekly reset mode bonds that matures after June 30, 2009 as a long-
term liability. As of June 30, 2008, there has not been a failed remarketing for the weekly reset mode
variable rate bonds. The SBPA was amended in July 2008 as presented in Section F of this footnote.

The initial interest rate for the Series 2004B – auction rate reset mode was .85%. The interest rate for
auction rate bonds is reset at each auction. Series 2008C fixed rate bonds were issued on February 6, 2008
to current refund the Series 2004B auction rate reset mode bonds, due to deteriorating conditions within the
auction rate securities market. Interest paid through March 20, 2008 was based on rates that have
fluctuated from a low of .85% to a high of 4.65%. $32,250,000 of bonds was called on February 14, 2008
and the remaining $7,750,000 of bonds was called on March 20, 2008.

The University has the option to convert the variable rate bonds from one rate mode to another, as well as
the option to redeem these bonds in whole or in part. The University’s variable rate bonds mature at various
dates through 2031. It is the University’s intent to repay its variable rate bonds in accordance with the
maturities set forth in the bond indentures.

Derivative Transactions – During the year ended June 30, 2008, the University entered into an interest rate
swap agreement relating to the Series 2008B variable rate bonds, and a qualified hedge with respect to
bonds which are expected to be issued on or about May 1, 2009. The intention of these derivative
transactions is to protect against the potential of rising interest rates. The amounts under the swaps
decrease as principal payments are made on the bonds, so that the amount equals the principal amortization
for the bonds.

The following table summarizes the University’s interest rate swap agreements:

Associated Outstanding Fixed Fair Swap Counterparty/

Bond Notional Effective Rate Variable Rate Value @ Termination Counterparty
Issue Amount Date Paid Index Received 6/30/2008 Date Credit Rating
USD-SIFMA Royal Bank
2008B $30,930,000 4/8/2008 3.508% Municipal $366,000 6/1/2024 Of Canada/
Swap Index Aaa, AA-
Royal Bank
2009– $24,075,000 5/1/2009 3.163% USD- 67% $327,000 6/1/2030 Of Canada/
Series TBD LIBOR-BBA-1M Aaa, AA-

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UNIVERSITY OF CINCINNATI JUNE 30, 2008

Based on the swap agreements, the University pays to the swap counterparty interest calculated at a fixed
rate. In return, the swap counterparty pays the University interest based on a specified index. Only the net
difference in interest payments is actually exchanged with the counterparty. The University continues to pay
interest to the bondholders at the variable rate as provided for by the bonds. The interest paid to the
bondholders will be offset by the swap counterparty’s payment to the University; thus during the term of the
swap agreement, the University is in effect paying a synthetic fixed interest rate on this debt.

Basis Risk: The swaps expose the University to basis risk should the interest rate received on the swaps be
less than the interest rate paid on the bonds. This mismatch will effectively result in a higher synthetic fixed
rate and the expected savings may not be realized.

Termination Risk: The University or counterparty may terminate the swap if either party fails to perform
under the terms of the agreement. Termination provisions may result in the University paying or receiving a
termination payment, depending on the value of the swap at that point in time.

Fair Value: As of June 30, 2008, the combined fair value of the two swap agreements was a positive
$693,000, indicating the amount that the Counterparty would be required to pay the University to terminate
the swap agreements. The fair value was estimated using the zero coupon method. This method calculates
the future net settlement payments required by the swap agreement, assuming that the forward rates implied
by the yield curve as of June 30, 2008 correctly anticipate future spot interest rates. These payments are
then discounted using the spot rates implied by the yield curve for hypothetical zero-coupon bonds due on
the date of each future net settlement of the swap agreement. The fair values of the swap agreements were
developed by an independent third party with no vested interest in the swap transaction.

Credit Risk: As of June 30, 2008, the University was exposed to credit risk of the counterparty on the
termination payments because the swaps had positive fair values. At June 30, 2008, the counterparty was
rated AA- by Standard & Poor’s and Aaa by Moody’s Investors Service.

The Debt Service Commitments presented in section 7-D of this footnote are calculated using the fixed rate
of 3.508% for Series 2008B.

Bond Anticipation Notes – During the year ended June 30, 2008, the University issued the following Bond
Anticipation Notes: Series 2007E for $40,468,000, issued primarily to refinance existing bond anticipation
notes (Series 2006D and 2006E); Series 2007F for $32,810,083, issued to refinance existing bond
anticipation notes (Series 2007D); and Series 2008A for $30,000,000, issued to refinance existing bond
anticipation notes (a portion of Series 2007C and Series 2007E). Series 2007F bond anticipation notes were
retired on December 21, 2007. Series 2008A notes are currently outstanding and bear interest at a rate of
3.25%.

Loans Payable for Equipment – The University did not enter into any new loans for equipment purchases
during the year ended June 30, 2008. All of the outstanding loans for equipment bear interest rates between
3.58% and 4.69%.

Capital Leases for Stetson and Turner – The University has two capital lease agreements in connection
with the financing of two buildings (One Stetson Square and the Turner Center) which are owned by King
Highland Community Urban Redevelopment Corporation and will be occupied, all or in part, by the
University. The One Stetson Square lease totaling $32,745,000 bears interest at rates ranging from 4.25%
to 5.97% and matures in 2033. The Turner Center lease totaling $9,955,000 bears interest at rates ranging
from 4.00% to 5.25% and matures in 2033.

B) Refundings

General Receipts Bonds—Series 2008B general receipt bonds were issued April 9, 2008 in the amount of
$35,915,000, for the purpose of current refunding $34,855,000 of the following June 1, 2008 and callable
June 1, 2009 fixed rate bond maturities: Series T $1,210,000, Series X $240,000, Series Y $390,000, Series
Z $1,325,000, Series AA $985,000, Series AC $245,000, Series AD $885,000, Series AG $430,000, Series
AH $805,000, Series AL $335,000, Series AL1 $230,000, Series AM $265,000, Series AN $155,000, Series
AO $455,000, Series AQ $260,000, Series AT $30,000, Series AU $100,000, Series AV $35,000, Series AZ
$75,000, Series 2001A $6,715,000, Series 2002A $230,000, Series 2002D $325,000, Series 2002F

35
UNIVERSITY OF CINCINNATI JUNE 30, 2008

$1,660,000, Series 2002G $1,020,000, Series 2003C $4,785,000, Series 2004A $6,975,000, Series 2004D
$955,000, Series 2004E $1,265,000, Series 2006A $2,040,000 and Series 2007A $430,000. The purpose of
the refunding was to increase the University’s Liquidity Reserve from short-term debt service savings by
slightly extending the average life of the University’s debt. Net proceeds of $35,496,090 were used to
purchase United States government securities that were placed in irrevocable trust with an escrow agent to
provide for the June 1, 2008 debt service payment for the above referenced bonds. The resulting loss on
refunding which reflects the difference between the refunding reacquisition price for Series 2008B and the
net carrying amount of the outstanding principal balances of the refunded debt issues was not significant.

Series 2008C general receipt bonds were issued February 6, 2008 in the amount of $39,280,000, for the
purpose of current refunding $40,000,000 of the Series 2004B variable rate auction reset mode bond
maturities. $32,250,000 of the Series 2004B variable rate auction reset mode bonds was called on February
14, 2008 and the remaining $7,750,000 of these bonds was called on March 20, 2008. The purpose of the
refunding was to current refund all of the Series 2004B auction rate reset mode bonds, due to deteriorating
conditions within the auction rate market. Net proceeds of $40,000,000 were used to provide for the
February 14, 2008 and March 20, 2008 calls for this series. The resulting deferred loss on refunding was not
significant.

C) Collateralization and Debt Reserves

The general receipts bonds and general receipts bond anticipation notes are collateralized by a pledge of
general receipts of the University. The Capital Lease Obligations and Capital Leases (Stetson and Turner) are
secured by base rent payments under the leases. The net book value of assets under Capital Lease
Obligations is $182,966,000. Payment of base rents is subordinate to debt service payments on the University’s
general receipt bonds and bond anticipation notes. Loans Payable – Equipment is collateralized by specified
equipment. At June 30, 2008, the required debt service reserve amounted to $8,679,000. As provided for in
the Amended and Restated Trust Agreement, this reserve is solely for the payment of debt service charges on
the pre-amended bonds, with the exception that excess amounts may be transferred pursuant to Section 4.03 of
the Amended and Restated Trust Agreement

D) Debt Service Commitments

For bonds and notes payable at June 30, 2008, scheduled annual debt service payments subsequent to
June 30, 2008 are as follows (in thousands):

Fiscal
Year Principal Interest Total
2009 $55,760 $ 49,039 $ 104,799
2010 32,520 46,890 79,410
2011 34,955 45,353 80,308
2012 37,985 43,648 81,633
2013 39,455 41,680 81,135
2014-2018 227,505 174,518 402,023
2019-2023 236,905 108,881 345,786
2024-2028 173,060 52,313 225,373
2029-2033 82,480 10,780 93,260
2034 3,055 153 3,208

Total $923,680 $573,255 $1,496,935

The University has $173.3 million of variable rate bonds; all which interest is reset weekly based on the
market with a maximum rate of 12% per year. The interest rate used to determine future interest payments
in the debt service repayment table above is the rate in effect at June 30, 2008 as follows: 9% for the 2004B
variable weekly rate; 10% for the 2007B variable weekly rate; and 3.508% for the portion of Series 2008B
associated with the swap and 1.59% for the portion of Series 2008B not associated with the swap. Series
2004B variable rate bonds were issued in February 2004 and since the date of issuance, the variable weekly
rate has ranged from .87% to 9%. Series 2007B variable rate bonds were issued in January 2007 and since

36
UNIVERSITY OF CINCINNATI JUNE 30, 2008

the date of issuance, the variable weekly rate has ranged from 2.99% to 10%. Series 2008B variable rate
bonds were issued in April 2008; interest rates have ranged from 1.52% to 2.68%.

The Governmental Accounting Standards Board (GASB) requires the disclosure of debt service
requirements to maturity as depicted above, with the interest on variable rate debt being determined by using
the rate in effect at the financial statement date. The University has been exposed to negative market
conditions associated with insured variable rate debt, as the insurers on Series 2004B and 2007B bonds
both had rating downgrades in fiscal year 2008, resulting in interest rates of 9% and 10% respectively being
paid on these issues at the end of June 2008. The University has taken steps subsequent to June 30,
2008, to decrease interest rate exposure on these issues as presented in Section F of this footnote.

Scheduled principal and interest payments on capital lease obligations and loans payable subsequent to
June 30, 2008 are (in thousands):

Fiscal
Year Principal Interest Total
2009 $ 8,795 $ 8,005 $ 16,800
2010 8,825 7,562 16,387
2011 8,199 7,111 15,310
2012 7,701 6,674 14,375
2013 6,932 6,333 13,265
2014-2018 35,586 26,146 61,732
2019-2023 38,025 17,322 55,347
2024-2028 29,665 8,025 37,690
2029-2033 15,065 2,333 17,398
Total $158,793 $89,511 $248,304

E) Defeased Debt

Debt defeased by the University for which amounts remain outstanding at June 30, 2008, is (in thousands):

Maturity Interest Amount

Bond Series Dates Rate(s) Outstanding

Residence Hall and Dining

Facility Bonds:
Series F 1972-2009 5.25% $ 650
General Receipts Bonds:
Series AL-1 2014-2019 5.60-5.75% 2,140
Series AO 2014-2019 5.60-5.75% 4,285
Series AT 2014-2020 5.50-5.75% 325
Series AV 2014-2020 5.50-5.75% 365
Series AZ 2014-2020 5.50-5.75% 850
Series 2001A 2015-2019 5.75% 29,245
Series 2001A 2022-2024 5.25% 24,030
Series 2002F 2016-2020 5.375% 13,010

Total $74,900

Neither the outstanding indebtedness nor the related trust accounts are reflected in the accompanying
financial statements for the fully defeased bonds listed above. United States Treasury obligations in an
amount sufficient to pay principal and interest on the defeased obligations, when due, have been deposited
with a trustee in accordance with the defeasance of the debt.

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UNIVERSITY OF CINCINNATI JUNE 30, 2008

F) Other

Subsequent to June 30, 2008, the University has issued $36 million in Series 2008E BANS to refinance
Series 2007B insured variable rate bonds. Series 2008E was issued at an interest rate of 2.75% and will
mature on July 21, 2009. In addition, the University has amended the Standby Bond Purchase Agreement
(SBPA) associated with the Series 2004B insured variable rate bonds to eliminate the potential of a
termination of the SBPA without notice to the bondholders. Both of these subsequent events have
substantially decreased the interest expense exposure to the University as a result of negative market
conditions relating to insured variable rate debt. In an effort to further improve interest rates, the University
is planning to issue Series 2008F variable rate bonds, which will be secured by a letter of credit that will
refinance the remaining Series 2004B insured variable rate bonds secured by the SBPA.

Interest expense incurred on indebtedness for the years ended June 30, 2008 and 2007, is $41,286,000 and
$40,245,000, respectively. In 2008, interest expense on construction-related debt of $9,246,000, net of
$2,156,000 interest earned on invested funds, was capitalized. In 2007, interest expense on construction-
related debt of $5,727,000, net of $2,125,000 interest earned on invested funds, was capitalized.

G) Long-Term Liability

Long-term liabilities as of June 30, 2008 and 2007 are as follows (in thousands)

Year Ended June 30, 2008

Balance Balance Current Non-current
July 1, 2007 Additions Reductions June 30,2008 Portion Portion

Bonds, notes and capital leases:

Bonds and notes payable $903,845 $267,643 $247,808 $923,680 $55,760 $ 867,920
Certificates of participation 90 - 90 - - -
Loans payable-equipment 6,439 - 1,371 5,068 1,290 3,778
Capital lease obligations 159,515 - 5,790 153,725 7,505 146,220
Premium net of unamortized
costs and loss on refunding 4,444 7,646 3,543 8,547 ___848 7,699
Total bonds, notes and
capital leases 1,074,333 275,289 258,602 1,091,020 65,403 1,025,617
Other long-term liabilities:
Compensated absences 64,108 1,427 2,671 62,864 33,528 29,336
Refundable advances,
federal loans 26,311 18 53 26,276 - 26,276
Other 1,387 - 444 943 500 443
Deposits held in trust for others 10,076 66,911 73,759 3,228 - 3,228
Total other long-term liabilities 101,882 68,356 76,927 93,311 34,028 59,283
Total $1,176,215 $343,645 $335,529 $1,184,331 $99,431 $1,084,900

Year Ended June 30, 2007

Balance Balance Current Non-current
July 1, 2006 Additions Reductions June 30,2007 Portion Portion

Bonds, notes and capital leases:

Bonds and notes payable $ 839,580 $214,235 $149,970 $903,845 $130,725 $773,120
Certificates of participation 180 - 90 90 90 -
Loans payable-equipment 4,616 2,800 977 6,439 1,371 5,068
Capital lease obligations 122,140 42,700 5,325 159,515 5,790 153,725
Premium net of unamortized
costs and loss on refunding 2,951 7,750 6,257 4,444 ___835 3,609
Total bonds, notes and
capital leases 969,467 267,485 162,619 1,074,333 138,811 935,522
Other long-term liabilities:
Compensated absences 66,021 1,181 3,094 64,108 33,941 30,167
Refundable advances,
federal loans 25,987 324 - 26,311 - 26,311
Other 1,814 - 427 1,387 500 887
Deposits held in trust for others 9,187 80,176 79,287 10,076 - 10,076
Total other long-term liabilities 103,009 81,681 82,808 101,882 34,441 67,441
Total $1,072,476 $349,166 $245,427 $1,176,215 $173,252 $1,002,963

38
UNIVERSITY OF CINCINNATI JUNE 30, 2008

8. State Support
The University is a state-assisted institution of higher education and receives from the State of Ohio a state
share of instruction that is student-enrollment based. This subsidy is determined annually by the Ohio Board
of Regents. The State also provides line-item appropriations that support, in part, the current operations of
various activities including clinical teaching expenditures.

In addition to the operating subsidies, the State of Ohio provides funding for and constructs major plant
facilities on the University’s campuses. The state passes a capital-appropriations bill biannually for both
major capital projects and basic renovation projects of which the University receives a share. Such facilities
are reported as capital assets on the Statement of Net Assets.

9. Retirement Plans and Other Post Employment Benefits

Retirement benefits are available for substantially all employees under one of several contributory retirement
plans. Prior to July 1, 1977, when the University became a state institution, employees were covered by
either the City of Cincinnati Retirement System (CRS) or the Teachers’ Insurance and Annuity Association -
College Retirement Equities Fund (TIAA-CREF). Certified teachers appointed on or after July 1, 1977, are
covered by the State Teachers’ Retirement System (STRS). Non-certified employees appointed on or after
that date are covered by the Ohio Public Employees Retirement System (OPERS). Both STRS and OPERS
are statewide systems that offer three separate plans: 1) a defined benefit plan, 2) a defined contribution
plan and 3) a combined plan. Each of the three options is discussed in greater detail in the following
sections.

A) Defined Benefit Plans

The OPERS, STRS and CRS plans are cost-sharing, multiple-employer, defined-benefit, public-employee
retirement systems. Each provides retirement, disability and death benefits to plan members and
beneficiaries. These plans also provide health-care benefits to vested retirees. Benefits provided under the
plans are established by State statute or the Cincinnati Municipal Code.

All three plans issue separate, publicly available financial reports that include financial statements and
required supplementary information. These reports may be obtained by contacting each system as follows:
Public Employee Retirement System of Ohio, 277 East Town Street, Columbus, Ohio 43215, Telephone
(614) 466-2085; State Teachers Retirement System of Ohio, 275 East Broad Street, Columbus, Ohio 43215,
Telephone (614) 227-4090; and City of Cincinnati Retirement System, 801 Plum Street, Cincinnati, Ohio
45202, Telephone (513) 352-3227.

The Ohio Revised Code and the Cincinnati Municipal Code provide OPERS, STRS and CRS statutory
authority, respectively, over employer and employee contributions. The required, actuarially determined
contribution rates for the University and for employees are 14% (7% relating to health-care benefits) and
10% of covered payroll, respectively, for OPERS; 14% (1% relating to health-care benefits) and 10%,
respectively, for STRS; and 17% and 7%, respectively, for CRS for the year ended June 30, 2008. The
University’s contributions, representing 100% of employer contributions for the year ended June 30, 2008,
and for each of the two preceding years are as follows (in thousands):

Fiscal Year PERS $ STRS $ CRS $

2006 19,811 16,417 361
2007 20,318 17,618 506
2008 20,155 15,417 278

OPERS and STRS provide postretirement and postemployment health-care benefits in addition to the
retirement benefits described above. OPERS Other Post Employment Benefits (OPEB) is advance funded
on an actuarially determined basis. The assumptions and calculations below were based on the system’s
latest actuarial review performed as of December 31, 2006. An entry-age normal actuarial-cost method of
valuation is used in determining the present value. The difference between assumed and actual experience
(actuarial gains and losses) becomes part of unfunded actuarial accrued liability. All investments are carried
at market value. For valuation purposes, a smoothed market approach is used. Under this approach assets
are adjusted annually to reflect 25% of unrealized market appreciation or depreciation on investment assets

39
UNIVERSITY OF CINCINNATI JUNE 30, 2008

not to exceed a 12% corridor. The actuaries’ assumptions were as follows: investment return, 6.5%; annual
wage increase (compounded annually), 4%; and health care costs, 4%. At December 31, 2006, the actuarial
value of the Retirement System’s net assets available for OPEB was $12 billion. The actuarially accrued
liability and the unfunded actuarial accrued liability, based on the actuarial cost method used, were $30.7
billion and $18.7 billion, respectively. There are 374,979 active contributing participants. Of the
$20,155,000 University employer contributions to OPERS for 2008, $10,078,000 was to fund OPEB.

STRS has discretionary authority, pursuant to the Ohio Revised Code, over how much, if any, of the health-
care costs will be absorbed by STRS. All benefit recipients are required to pay a portion of the health-care
cost in the form of a monthly premium. The balance in the Health Care Reserve Fund was $4.1 billion at
June 30, 2007 (the latest information available). For the year ended June 30, 2007, the net health-care
costs paid by STRS were $265,558,000. There were 122,934 eligible benefit recipients.

In addition to the pension benefits described above, the University provides postretirement health-care and
dental benefits (under its labor agreement with the American Association of University Professors) to all who
are participants of TIAA-CREF when they retire. During 2007, 2006, and 2005 the net cost of these benefits
recorded on a pay-as-you-go basis totaled approximately $3,010,000, $2,961,000, and $2,945,000,
respectively.

B) Defined Contribution Plans

On June 23, 1998, pursuant to Ohio House Bill 586, the University created an Ohio Alternative Retirement
Plan (ARP), which is designed to aid the University in recruiting and retaining employees by offering a
portable retirement option. The ARP is a defined-contribution plan that provides full and immediate vesting
of all contributions made on behalf of the participant. Contributions are directed to one of eight investment
management companies, which allows the participant to manage the investment of all retirement funds.
New employees who qualify for the ARP have 90 days from the date of hire to elect the ARP option. Once
this window has passed, the employee will not have the option to elect into the ARP.

At June 30, 2008, there were 1,889 members of the plan. During 2008, 2007, and 2006 the employer
contributions were $13,730,000, $13,418,000, and $11,310,000, respectively. The employer contribution
rate was 13.77% for participants electing out of OPERS during 2007. Effective January 1, 2008 the employer
contribution rate increased to 14%. The employer contribution rate for participants electing out of STRS was
14.00% for both 2008 and 2007.

C) Combined Plans

STRS offers a combined plan with features of both a defined contribution plan and a defined benefit plan. In
the combined plan, employee contributions are invested in self directed investments, and the employer
contribution is used to fund a reduced defined benefit. Employees electing the combined plan receive
postretirement health care benefits.

OPERS also offers a combined plan. This is a cost-sharing multiple-employer defined benefit plan that has
elements of both a defined benefit and defined contribution plan. In the combined plan, employee
contributions are invested in self directed investments, and the employer contribution is used to fund a
reduced defined benefit. Employees electing the combined plan receive postretirement health care benefits.
OPERS provides retirement, disability, survivor and postretirement health benefits to qualifying members of
the combined plan.

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UNIVERSITY OF CINCINNATI JUNE 30, 2008

10. 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 98,845

Total $1,202,523 $1,265,492

2008 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 1,562

Total $ 391,590 $ 413,063

11. 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.

12. 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.

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UNIVERSITY OF CINCINNATI JUNE 30, 2008

Hospital revenues and expenditures are recorded by the Alliance. The University has reported its pro rata share
($14,149,000 and $50,658,000 for the years ended June 30, 2008 and 2007, respectively) of the Alliance’s
increase in unrestricted net assets as part of the change in the fair value of investments as included in the
accompanying financial statements.

The University provides various shared services, consisting mainly of security and various administrative
services, to the Alliance for which the University is reimbursed on a cost basis. The total cost of these services
for the years ended June 30, 2008 and 2007 were approximately $4,810,000 and $4,695,000, respectively.

In response to The Christ Hospital’s expressed intent to withdraw from the Alliance, the Alliance initiated
litigation (The Health Alliance of Greater Cincinnati v. The Christ Hospital, et al. (Case No. A0601969)) on
March 1, 2006 in the Court of Common Pleas of Hamilton County, Ohio (the “Court of Common Pleas”) to
obtain a declaratory judgment that there were no circumstances that would permit The Christ Hospital to
withdraw from the Alliance. St. Luke Hospital joined the suit as a defendant in order to obtain an adjudication of
whether it was permitted to withdraw from the Alliance. On April 16, 2007, the Court of Common Pleas made a
post-trial entry following a bench trial that The Christ Hospital and St. Luke Hospital had the right to terminate
the contractual relationship with the Alliance. The Alliance appealed from the trial court’s judgment. On
September 30, 2008 the Ohio First District Court of Appeals sustained the judgment of Judge Nelson.

In the final judgment entry on June 13, 2007, the Common Pleas Court denied the request of The Christ
Hospital and St. Luke Hospital to dissolve the Alliance and ordered an accounting for the purpose of
determining, among other things, the value of the respective interests of The Christ Hospital and St. Luke
Hospital under the Joint Operating Agreement in anticipation of their departure from the Alliance. In addition, on
July 31, 2007, The Christ Hospital and St. Luke Hospital filed an action in the Court of Common Pleas seeking
to dissolve the Alliance and asking that a receiver be appointed to oversee the break-up. On February 19,
2008, the Court granted summary judgment to the Alliance holding that the Alliance was not required to
dissolve. The Christ Hospital and St. Luke Hospital subsequently amended the complaint and are now seeking
damages in the amount they otherwise would have received in dissolution in lieu of actual dissolution.

The effect of the denial of the appeal on the University is difficult to ascertain with certainty. Under the Joint
Operating Agreement, the possibility exists that the Alliance will be required to pay certain amounts to the
departing members or that such departing members may be required to make payments to the Alliance. The
report of an independent consultant ordered by the Court of Common Pleas indicates that payments by the
Alliance to at least one departing member would be required. The Court of Common Pleas has not made any
further rulings with respect to the report.

In early September 2008, St. Luke Hospital and the Alliance reached an agreement in principal to allow St. Luke
Hospital to withdraw from the Alliance and dismiss all pending action by St. Luke Hospital against the Alliance
and remaining Participating Entities. On September 23, 2008, the University of Cincinnati received approval
from its Board of Trustees for delegation of authority to approve final separation agreements for the termination
of St. Luke Hospital in The Health Alliance and to approve amendments to the Joint Operating Agreement to
reflect the departure of St. Luke Hospital as a participating entity. St. Luke Hospital had a 12.8% share in the
Alliance.

A trial date of January 20, 2009 has been set to address The Christ Hospital’s claim for damage in lieu of
dissolving the Health Alliance. Meanwhile, a mediator has been assigned to the case.

In addition, a number of factors may result in a diminution of the demand for services by the Alliance and its
remaining members, including the University, and may result in a reduction of clinical training opportunities for
students in the University’s College of Medicine. Pursuant to the Operating and Affiliation Agreement between
the Alliance and the University dated January 25, 2006, the Alliance provides financial support to the University
for academic programs that directly or indirectly support patient care at the University Hospital or the Alliance.
The Alliance also pays the University an annual education and research payment that must be used exclusively
for Academic Health Center purposes. The total of these payments for the years ended June 30, 2008 and
2007 were $9,084,000 and $9,038,000, respectively. Currently, the University is unable to determine whether
and to what extent, if any, the receipt of such amounts in the future could be materially and adversely affected.
The ultimate result of the current litigation, as well as the financial and operational effects thereof on the
University, is extremely difficult to quantify or assess until such litigation is resolved. Accordingly, no amounts
have been reflected in the accompanying financial statements for this litigation.

42
UNIVERSITY OF CINCINNATI JUNE 30, 2008

13. Capital Project Commitments

At June 30, 2008, the University is committed to future capital expenditures as follows (in thousands):

Contractual commitments $ 23,080

Estimated completion costs of projects 232,392
Total $255,472

These projects are being funded through various resources, including the State of Ohio, as follows (in
thousands):

Approved state appropriations requested and released

as of June 30, 2008 $ 176
Approved state appropriations not yet requested 5,287
University funded prior to June 30, 2008 47,908
Funds to be provided subsequent to June 30, 2008, from
various available sources 202,101
Total $255,472

The $202,101,000 of funding to be provided subsequent to June 30, 2008 will come from state funds, debt, and
University funds.

14. Self-Insurance Funds

The University currently provides for medical professional and general liability insurance through a combination
of an actuarially funded self-insurance program sponsored by the University and purchased commercial
insurance in excess of the self-insurance amount. The medical professional liability insurance program also
includes several qualified not-for-profit departmental (physician) practice corporations. Medical professional
self-insurance limits were $4 million per occurrence for 2008. An additional $15 million in commercial excess
professional liability insurance was provided above the self-insured retention.

General liability coverage is also provided as part of a group insurance program of Ohio state universities known
as the Inter-University Council of Ohio Insurance Consortium (IUC-IC). This program provided for $1 million
retention per occurrence with the first $100,000 funded by UC, and the remaining $900,000 funded by pool
funds held through the IUC. Excess commercial coverage for general liability was provided with total limits of
$50 million, of which $45 million was shared with the other participating universities. In addition, educators’ legal
liability coverage was provided through the IUC program with $25 million in total limits, of which $20 million was
shared among the participating institutions. The IUC-IC self-insurance pools are funded by an agreed formula
among the participating universities.

The University’s self-insurance program is based on calculations by independent actuaries and funds are
deposited directly into two irrevocable self-insurance trust funds, one for medical and professional liability and
one for general liability. In the opinion of management, trust assets totaling approximately $28,199,000 are
adequate to cover estimated liabilities resulting from known claims and incidents and incurred-but-not-reported
incidents as of June 30, 2008.

Property insurance is also provided through the IUC-IC program, consisting of commercial property insurance
with a $350,000 retention, and a self-insurance pool to fund losses between $100,000 and $350,000.

The University is also self-insured for a portion of medical and dental benefits provided to employees beginning
in fiscal year 2007 with the addition of self-insured prescription benefits during fiscal year 2008. The cost of
such self-insured benefits provided during 2008 and 2007, respectively, was approximately $64,706,000 and
$36,022,000, including $5,313,000 and $5,202,000 accrued for estimated claims incurred but not reported.

43
UNIVERSITY OF CINCINNATI JUNE 30, 2008

15. Commitments and Contingencies

The University is currently a defendant in various legal actions. Additional legal action regarding The Alliance of
Greater Cincinnati but not involving the University could negatively affect a portion of the education and
research payment received from the Alliance. Although the final outcome of such actions cannot currently be
determined, the University's administration is of the opinion that the eventual liability, if any, will not have a
material effect on the financial position or operations of the University.

The University receives grants and contracts from certain federal, state and local agencies to fund research and
other activities. The costs, both direct and indirect, that have been charged to the grants or contracts are
subject to examination and approval by the granting agency. It is the opinion of management that any
disallowance or adjustment of such costs would not have a material effect on the financial statements.

In 2005 the Department of Education conducted a program audit of certain aspects of the University’s Student
Financial Aid Program. As a result of various findings of the Department of Education, the University has
estimated a liability to the Department of Education approximating $13,900,000.

The University’s utility plant is exposed to market price fluctuations on its purchase of natural gas. Purchase
commitments have been issued with certain suppliers of natural gas whereby the University has locked into the
price of natural gas for specified amounts to stabilize costs.

16. University of Cincinnati Foundation

The University of Cincinnati Foundation is a legally separate, tax-exempt component unit of the University.
The principal function of the Foundation is to solicit, reserve, hold, invest and administer funds and to make
distributions to or for the benefit of the University. Since these resources held by the Foundation can be used
only by or for the benefit of the University, the Foundation is considered a component unit of the University and
is discretely presented in the University’s financial statements.

Accounts of the Foundation have been consolidated in the accompanying financial statements in accordance
with generally accepted accounting principles for not-for-profit organizations. Pledges receivable for the benefit
of the University totaling $11,095,000 in 2008 and $12,388,000 in 2007, and funds held in trust by the
Foundation for the University of $224,061,000 in 2008 and $224,903,000 in 2007, have been recorded by the
University and have, therefore, been eliminated from the amounts reported for the Foundation as of June 30,
2008 and 2007. Of these amounts, $202,068,000 and $203,257,000 has been invested as of June 30, 2008
and 2007, respectively, in the University endowment pool investment pool.

A) Cash & Cash Equivalents

The carrying amount of the Foundation’s cash and cash equivalents is $14,160,000 as compared to bank
balances of $14,213,000. The difference between the carrying amounts and the bank balances is caused
primarily by deposits in transit and outstanding checks.

Of the Foundation’s bank balances, $994,000 is covered by federal depository insurance, $11,280,000 is
uninsured and mutual funds hold $1,939,000 in cash equivalents.
B) Investments

The fair value of investments at June 30 is (in thousands):

2008 2007
U. S. government and treasury securities $ 4,605 $ 4,472
Corporate bonds 4,280 5,498
Mutual funds 5,948 8,574
Other securities 818 967
Total investments $15,651 $19,511

44
UNIVERSITY OF CINCINNATI JUNE 30, 2008

GASB Statement 40 requires government entities to categorize investments of interest rate risk, credit risk, and
custodial risk.

Interest Rate Risk

The Foundation’s investments total $15,651,000 and $19,511,000 as of June 30, 2008 and 2007 respectively.
The segmented time distribution method is used to portray interest rate risk for $14,818,000 and $17,515,000 of
bond and other fixed income investments as of June 30, 2008 and 2007, respectively. Investments for the
years ended June 30, 2008 and 2007 are summarized as follows (in thousands):

Investment Maturities (In Years) 2008

Investment Type Fair Value Less than 1 1–5 6 – 10 More than 10

U.S. Treasury Obligations $ 2,023 $ 1,006 $ 446 $ 571 $ -

U.S. Government Agency 2,582 567 323 709 983
Obligations
Municipal Obligations 60 - - 21 39
Corporate Bonds 4,280 1,830 1,569 869 12
Bond Mutual Funds 5,873 - 530 4,448 895
Total Investments $14,818 $ 3,403 $ 2,868 $ 6,618 $ 1,929

Investment Maturities (In Years) 2007

Investment Type Fair Value Less than 1 1–5 6 – 10 More than 10

U.S. Treasury Obligations $ 1,270 $ 209 $ 219 $ 842 $ -

U.S. Government Agency 3,202 1,196 661 601 744
Obligations
Municipal Obligations 77 - - 21 56
Corporate Bonds 5,498 2,453 2,350 663 32
Bond Mutual Funds 7,468 - 1,151 6,117 200
Total Investments $17,515 $ 3,858 $ 4,381 $ 8,244 $ 1,032

The Foundation does not have a policy for interest rate risk.

Credit Risk – Bond and other fixed income investments are rated by nationally recognized rating organizations
as follows, as of June 30 (in thousands):

2008 2007
U.S. Treasury Obligations $ 2,023 $ 1,270
AAA 6,577 8,397
AA/Aa 2,423 4,063
A/A-1 2,799 3,091
BBB/Baa 76 157
BB - 507
B 496 -
Not Rated 424 30
Total $14,818 $17,515

Foundation investment grade bonds are limited to those in the first four grades of any rating system. The
average rating of the portfolio of investment grade bonds must be in the top two grades of any rating system.
Limited investments having strategic value to the University are permitted.

45
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.

46
University of
Cincinnati
Office of Management and Budget
Circular A-133 Reports for the
Year Ended June 30, 2008
UNIVERSITY OF CINCINNATI

TABLE OF CONTENTS

Page

INDEPENDENT AUDITORS’ REPORT 1–2

MANAGEMENT’S DISCUSSION AND ANALYSIS 3–14

FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2008 AND 2007:

Statements of Net Assets 15

Statements of Revenues, Expenses and Changes in Net Assets 16

Statements of Cash Flows 17–18

Notes to Financial Statements 19–41

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2008 42–90

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2008 91–92

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS 93–94

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS

APPLICABLE OF EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 95–96

SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED

JUNE 30, 2008 97–98

SUMMARY OF SCHEDULE OF PRIOR AUDIT FINDINGS AND

QUESTIONED COSTS 99
INDEPENDENT AUDITORS’ REPORT

To the Board of Trustees of

the University of Cincinnati:

We have audited the accompanying statements of net assets of the University of Cincinnati (“University”), a
component unit of the State of Ohio, as of June 30, 2008 and 2007, and the related statements of revenues,
expenses and changes in net assets and of cash flows for the years then ended. These financial statements are
the responsibility of the University’s management. Our responsibility is to express an opinion on these
financial statements based on our audits. We did not audit the financial statements of the University of
Cincinnati Foundation, a discretely presented component unit. Those statements were audited by other
auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included
for the University of Cincinnati Foundation, is based solely on the report of such other auditors.

We conducted our audits in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards issued
by the Comptroller General of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement. An
audit includes consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the University’s internal control over financial reporting. Accordingly, we express no such
opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audits and
the reports of other auditors provide a reasonable basis for our opinion.

In our opinion, based on our audits and the reports of the other auditors, the financial statements referred to
above present fairly, in all material respects, the financial position of the University as of June 30, 2008 and
2007, and the results of its operations and its cash flows, as applicable, for the years then ended in conformity
with accounting principles generally accepted in the United States of America.

As discussed in Note 1C to the financial statements, the financial statements include investments valued at
$416 million (22% of net assets) and $437 million (22% of net assets) as of June 30, 2008 and 2007,
respectively, whose fair values have been estimated by management in the absence of readily determinable
fair values. Management's estimates are based on information provided by the fund managers or the general
partners.

As discussed in Note 12 to the financial statements, the University has a 29.12% equity interest in the Health
Alliance of Greater Cincinnati (the “Alliance”) as a participating entity and has included such $389,446,000
equity investment in other long-term investments as of June 30, 2008 in the Statement of Net Assets. During
2006 certain other Alliance participating entities delivered notices to the Alliance of their intention to
terminate their participation in the Alliance. During 2007, it was entered in the Court of Common Pleas of
Hamilton County, Ohio that these certain entities have the right to terminate their participation in the
Alliance. No amounts have been reflected in the financial statements related to such litigation matter as the
amounts are not determinable.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements of the
University. The accompanying schedule of expenditures of federal awards is presented for the purpose of
additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial
statements. Such information has been subjected to the auditing procedures applied in our audit of the basic
financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial
statements taken as a whole.

Management’s Discussion and Analysis on pages 9 through 20 are not a required part of the basic financial
statements but is supplementary information required by the Governmental Accounting Standards Board. This
supplementary information is the responsibility of the University’s management. We have applied certain
limited procedures, which consisted principally of inquiries of management regarding the methods of
measurement and presentation of the supplementary information. However, we did not audit the information
and we do not express opinion on it.

In accordance with Government Auditing Standards, we have also issued our report dated
October 13, 2008, on our consideration of the University’s internal control over financial reporting and our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be considered in assessing the results of our audits.

October 13, 2008

-2-
UNIVERSITY OF CINCINNATI JUNE 30, 2008

MANAGEMENT DISCUSSION AND ANALYSIS

INTRODUCTION

The following discussion and analysis provide an overview of the financial position and activities of the University of
Cincinnati (the “University”) for the year ended June 30, 2008, with selected comparative information for the years
ended June 30, 2007 and 2006. Comments relate only to the University and do not pertain to the University of
Cincinnati Foundation, a component unit of the University. This discussion has been prepared by management and
should be read in conjunction with the financial statements and the notes thereto, which follow this section.

The University was founded in 1819 and was city owned until becoming a state university in 1977. The University is
composed of 16 colleges and operates on three campuses in southwest Ohio. The University has been designated
by the Ohio Board of Regents as one of only two comprehensive graduate public universities in the state. It has an
enrollment of approximately 37,000 students. Faculty total approximately 4,300 with 2,300 having full-time status. In
total, there are more than 15,000 people employed by the University, making it the largest employer in the Cincinnati
region.

The University and its Board of Trustees are declared by statute to be a public body performing essential
governmental functions serving public purposes and an instrumentality of the State of Ohio. The Board of Trustees
comprises nine members appointed by the Governor of Ohio for overlapping terms of nine years.

The University is affiliated with a number of health care, educational, cultural and governmental institutions. Through
such affiliations, the University is able to broaden its curricular offerings.

USING THE FINANCIAL STATEMENTS

The University’s financial report includes three financial statements: the Statement of Net Assets; the Statement of
Revenues, Expenses and Changes in Net Assets; and the Statement of Cash Flows. These financial statements are
prepared in accordance with Governmental Accounting Standards Board (GASB) Statement 35, Basic Financial
Statements—and Management’s Discussion and Analysis—for Public Colleges and Universities, as amended by
GASB Statements 37 and 38. These statements establish standards for external financial reporting for public
colleges and universities and require that financial statements focus on the University as a whole, with resources
classified for accounting and reporting purposes into three net asset categories.

Revenues and expenses are categorized as either operating or non-operating. Significant recurring sources of the
University’s revenues, including state appropriations, gifts and investment income are considered non-operating.
Prior year federal and state grant programs totaling $24 million for fiscal year 2007 have been reclassified from
operating revenue to non-operating revenue on the Statement of Revenues, Expenses and Changes in Net Assets to
conform to the current year presentation. This reclassification was the result of the issuance by GASB of an
implementation guide that clarified that certain non-exchange grants should be reporting as non-operating revenues.

Scholarship allowances applied to student accounts are shown as a reduction of student tuition and fee revenues,
while stipends and other payments made directly to students are presented as scholarship and fellowship expense.

Capital assets, including general infrastructure assets, are shown net of depreciation. However, there is no
requirement to fund the accumulated depreciation. Instead, capital assets are largely funded by state capital
appropriations, issuance of debt, and by major gifts that support the academic, research and student services
missions of the institution. Gifts and capital appropriations are reflected on the financial statements as non operating
revenue and other revenue, respectively. The corresponding annual depreciation expense is reflected as an
operating expense.

Accounts of the University of Cincinnati Foundation have been consolidated in the accompanying financial
statements in a discrete columnar format.

3
UNIVERSITY OF CINCINNATI JUNE 30, 2008

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 3,074,622

Current 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 1,208,973

Total net assets $ 1,925,515 $ 1,970,740 $ 1,865,649

4
UNIVERSITY OF CINCINNATI JUNE 30, 2008

The following graph illustrates the University’s assets, liabilities and net assets:

(in thousands)

3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
-
Assets Liabilities Net Assets

2008 2007 2006

Current Assets

Current assets consist primarily of cash and cash equivalents, short-term investments and receivables. Cash and
cash equivalents and short-term investment balances include both operating cash and capital debt proceeds. In
2008, the level of cash and short-term investments increased by $28 million, primarily a result of the University’s cash
operating policy that was originally implemented in fiscal year 2007. Deposits with bond trustees increased by $4
million; a result of depositing capital interest related to the issuance of debt. These factors contributed in part to an
overall increase of $37 million, or 13%, in total current assets.

Endowment and Other Investments

In 2008 the University’s endowment exceeded $1 billion for the fourth year in a row. According to the National
Association of College and University Business Officers Endowment Study, the value of the endowment ranks in the
top 10% of all US institutions of higher education, both public and private.

The University invests its endowment to maximize total return over the long term with an appropriate level of risk.
The success of this long-term investment strategy is evidenced by strong returns sustained over long periods of time
and the University’s ability, in the face of current challenging markets, to limit losses. Changes in the fair value of the
endowment portfolio will not have a meaningful immediate impact on the portion of investment income available to
support current-year operating expenses because the University makes such distributions pursuant to its spending
rate policy.

The University’s endowment value decrease of $88 million in 2008 is a result of the following:

• Negative investment returns of $60 million in 2008.

• Funding added to existing endowments and the establishment of new endowments of $38 million

• Distributions to beneficiaries and fees of $66 million.

In 2007, investment returns, new funding and distributions were $145 million, $17 million and $72 million,
respectively.

Under its endowment spending policy, the University uses its endowment to support current operations in a way that
generates a predictable stream of support, while at the same time maintaining the purchasing power of endowment
funds adjusted for inflation. The spending policy provides for annual distributions of 5% (temporarily increased to 6%
for 2007 through 2009) of the three-year quarterly moving-average market value of assets in the investment pool.

5
UNIVERSITY OF CINCINNATI JUNE 30, 2008

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, $141 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.

6
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Major capital projects in design

• Medical Sciences Building Rehabilitation, Phases 2-5 – $204 million project that will complete the renovation of
the Medical Sciences Building; a 945,000 gross sq. ft. facility. Phases 2-5 include renovation of building systems
to achieve compliance with current codes along with a space utilization design that will permit flexibility for
reconfiguration of the facility over the life of the building and will extend the building’s life another 25 – 30 years.

Debt

Total debt representing bonds, notes and certificates of participation, was increased by $17 million in 2008 as a result
of issuing $275 million of debt and by decreasing outstanding debt by $258 million. The $275 million of debt was
issued to fund various capital projects and to refund existing debt. The $258 million decrease in debt was due to
refunding and the retirement of principal. Debt was increased by $105 million in 2007, due to the issuance of new
debt of $268 million and decreasing outstanding debt by $163 million. That new debt was also used to fund capital
projects and to refund $78 million of existing debt. As a result of the 2008 refunding, the University will realize a net
economic gain of $2 million over 14 years.
The University does not have any auction rate bonds outstanding, as a result of refunding issuances during 2008.
The University did not have any failed auctions in 2008. Likewise, there has not been a significant failed remarketing
on the weekly reset variable rate bonds.
Subsequent to June 30, 2008, the University has issued $36 million in Series 2008E BANS to refinance Series 2007B
insured variable rate bonds. In addition, the University has amended the Standby Bond Purchase Agreement (SBPA)
associated with the Series 2004B insured variable rate bonds to eliminate the potential of a termination of the SBPA
without notice to the bondholders. As a result of this amendment, interest rates have significantly improved. In an
effort to further improve interest rates, the University is planning to issue Series 2008F variable rate bonds, which will
be secured by a letter of credit that will refinance the Series 2004B insured variable rate bonds secured by the SBPA.
The University will continue to monitor the variable rate market and take appropriate action as necessary.
The University executed its first interest rate swap agreement in the spring of 2008 in connection with the issuance of
Series 2008B variable rate bonds and a qualified hedge with respect to bonds which are expected to be issued on or
before May 1, 2009. The intent of these derivative transactions is to protect the University against the potential of
rising interest rates. GASB Statement Number 53, Accounting for 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. The University will implement the Statement in
fiscal year 2010 as required.
Ratings of University bonds by Standard & Poors (S&P) were maintained at A+ in 2007 and in 2008. S&P also
maintained its rating on the University’s certificates of participation at A in 2007 and 2008. The note rating of SP-1+
was maintained through 2007 and 2008 however S&P‘s outlook remained negative during 2008. Moody’s revised the
ratings for bonds from A1 in 2007 to A2 in 2008. The rating for certificates of participation was revised from A2 in
2007 to A3 in 2008. The MIG1 rating for notes was maintained through 2007 and 2008. Moody’s revised the outlook
for the University from negative to stable during 2008. Series 2008E BANS, issued subsequent to June 30, 2008,
maintained the same note ratings and outlooks as those received during 2008.
The University continues to invest in its expansion of research and educational facilities beyond the level provided by
state capital appropriations through the issuance of additional debt. The extensive investment in these facilities was
necessary to attract high quality students, faculty, and research funding in an increasingly competitive environment.
The University’s debt financing activity in the future will focus on Academic Health Center projects, renovations of
existing facilities and building systems, and the overall management of the debt portfolio.

7
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Net Assets

Net assets represent the residual interest in the University’s assets after liabilities are deducted. The University’s net
assets at June 30 for the years 2008, 2007 and 2006 are summarized below:

(in thousands) 2008 2007 2006

Invested in capital assets, net of related debt $ 455,967 $ 478,971 $ 516,992
Restricted:
Nonexpendable 1,202,523 1,265,492 1,115,611
Expendable 391,590 413,063 398,304
Unrestricted (124,565) (186,786) (165,258)
Total net assets $ 1,925,515 $ 1,970,740 $ 1,865,649

The following graph illustrates the components of the University’s net assets:

Net Assets
(in thousands)

2,000,000

1,500,000

1,000,000

500,000

-
2008 2007 2006
(500,000)

Invested in capital assets, net of related debt Restricted Unrestricted

Capital assets, net of depreciation and related debt, represent the University’s depreciated buildings, equipment and
infrastructure less the outstanding principal balances of debt attributable to the acquisition, construction and
improvement of those assets. The decreases of $23 million in 2008 and $38 million in 2007, respectively, reflect the
University’s continued development and renewal of its capital assets in accordance with the Master Plan, net of
depreciation expense and long term debt.

Restricted nonexpendable net assets include, as a primary component, the University’s permanently invested
endowment funds. It also includes the University’s equity interest in The Health Alliance of Greater Cincinnati. The
$63 million decrease in restricted nonexpendable net assets in 2008 and the $150 million increase in 2007 reflect the
changes in the fair value of investments, net of gifts.

Restricted expendable net assets are subject to externally imposed provisions governing their use. This category of
net assets includes restricted quasi-endowments of $280 million in 2008 and $291 million in 2007 that were
temporarily invested in the endowment.

The deficit in unrestricted net assets decreased by $62 million in 2008 due to the University’s strategic actions to
address the deficit position. Specific measures initially implemented in 2007 and continued in 2008 to address the
deficit position include reorganizing around principles of greater accountability, disciplined financial activities, and
integrated budget planning. A large portion of the deficit decrease was attributable to elimination of the College of
8
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Medicine’s $24 million Millennium Plan deficit through a $15 million transfer from an expendable endowment fund and
a $9 million transfer from a quasi-endowment fund, both of which were established for the benefit of the College of
Medicine. The Millennium Plan, initially established to increase the University’s research initiatives and facilitate
strategic faculty new hires in the College of Medicine, was dissolved due to a lack of state and federal funding. The
research growth plan is now addressed through the Medical College’s annual budget and planning process.

The University’s endowment spending policy distribution has also been temporarily increased from 5% to 6% for 2007
and 2008 to address the deficit in unrestricted new assets. Additionally, the deficit will continue to be addressed
through budget cuts and multi-year funding using a combination of departmental and central budget sources to
resolve these fund deficits over time.

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS

The statement of revenues, expenses and changes in net assets presents the University’s results of operations. In
accordance with GASB reporting standards, revenues and expenses are classified as either operating or non-
operating. A summarized comparison as of June 30 for years 2008, 2007 and 2006 follows:

(in thousands) 2008 2007 2006

Operating revenue:
Student tuition and fees, net $ 272,910 $ 260,605 $ 230,778
Grants and contracts 172,338 167,866 168,574
Auxiliary enterprises, net 82,415 77,039 73,815
Other 70,879 64,296 61,873
Total operating revenues 598,542 569,806 535,040

Operating expenses:
Instruction 283,503 285,671 281,857
Research 157,843 153,247 144,764
Auxiliary enterprises 78,163 77,509 80,397
Depreciation 87,765 87,360 79,096
Other 325,767 323,113 342,591
Total operating expenses 933,041 926,900 928,705
Operating loss (334,499) (357,094) (393,665)

Non-operating revenues (expenses):

State appropriations 193,814 185,864 179,857
Federal and state grants (non-exchange) 27,633 24,494 22,092
Gifts 56,310 46,356 49,151
Investment income, net 72,739 60,311 54,443
Increase (decrease) in fair value of investments (96,616) 166,878 130,169
Interest on capital asset related debt (41,264) (40,245) (31,005)
Other non-operating expenses (1,600) (9,892) (6,909)
Total non-operating revenues 211,016 433,766 397,798

Income (loss) before other revenues, expenses,

gains or losses (123,483) 76,672 4,133
Capital appropriations 39,362 8,778 19,344
Capital grants and gifts 1,228 2,675 7,587
Additions to permanent endowments 37,668 16,966 13,414

Increase (decrease) in net assets $ (45,225) $ 105,091 $ 44,478

9
UNIVERSITY OF CINCINNATI JUNE 30, 2008

The following graphs illustrate the operating revenues and expenses as of June 30, 2008:

Operating Revenues - Year 2008

6% 1%

3%

5%
0%

Student tuition and fees, net

Federal grants and contracts
11%
State and local grants and contracts
Nongovernmental grants and contracts
45%
Sales and services of educational departments
Auxiliary enterprises:
Residential life
3%
Athletics, net
1% Other Auxiliary enterprises
Other operating revenues

25%

Operating Expenses - Year 2008

9%

8%
31%
Instruction
3% Research
Public Service
Academic Support
Student Services
7%
Institutional Support
Operation Maintenance and Plant
Scholarships and Fellowships
Auxiliary Expenses
Depreciation
8%

4%
17%

7%
6%

10
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Statement of Revenues, Expenses and Changes in Net Assets Highlights:

The University’s aggressive efforts related to improving operations were responsible for a $29 million increase in
operating revenues, primarily from student tuition and fees. Additionally, operating costs were contained to a minimal
increase of $4 million. Non-operating revenues increased in general with the exception of the adjustment for the fair
value of investments. The fair value of investments decreased by $97 million during 2008 compared to an increase
of $167 million in 2007. Overall, the University’s net assets decreased in 2008 by $43 million which was attributable
to the loss on the fair value of investments.

Continuous financial improvements have been achieved and are evidenced by comparing certain 2008, 2007, and
2006 financial results. This analysis excludes financing activities, loss on disposal of assets, and certain other non-
operating expenses. The result of the analysis is an improvement in 2008 of $44 million and $42 million in 2007.

(in thousands) 2008 2007 2006

Operating revenues 598,542 569,806 535,040

Operating expenses (933,041) (926,900) (928,705)

State appropriations 193,814 185,864 179,857

Federal and state grants (non-exchange) 27,633 24,494 22,092

Gifts 56,310 46,356 49,151

Total (56,742) (100,380) (142,565)

One of the University’s greatest strengths is the diverse stream of revenues that supplements its student tuition and
fees, including voluntary private support from individuals, foundations and corporations along with government and
other sponsored programs; state appropriations and investment income. The University has aggressively sought,
and will continue to seek, funding from all possible sources consistent with its mission to supplement student tuition,
and will prudently manage the financial resources realized from these efforts to fund its operating activities.

Operating

• Operating revenues increased by $29 million in 2008, compared to $35 million in 2007, primarily from
increased tuition revenue, grants and contracts, sales and services of educational departments, and
auxiliary enterprises.

• Tuition is the primary source of funding for the University. For 2008, the State legislated a cap in Ohio
residential tuition; Ohio graduate and non-Ohio resident tuition was not capped. Tuition and fees for the
2007-2008 academic year ranged from $4,542 to $28,473 for Ohio residents and from $11,394 to $49,653
for out-of-state residents. Given the tuition cap, the increase in tuition revenues was driven mainly by
enrollment increases, which ranged from 3% to 2% in 2008 and 2007, respectively.

• Sales and services of educational departments revenue increased by $7 million in 2008, compared to a $3
million increase in 2007.

• Revenue from auxiliary enterprises increased by $5 million in 2008 and $3 million in 2007.

• Operating expenses in total were contained to an increase of $6 million in 2008, compared to a reduction of
$2 million in 2007. The increase in 2008 was mainly attributable to an increase in research activity
expenditures.

11
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Non-Operating Excluding Other Revenues, Expenses, Gains or Losses

• State appropriations increased by $8 million in 2008 and $6 million in 2007, reflecting an improvement from
the recent trend of flat or decreasing state support for higher education. State appropriations now contribute
a significantly lower percentage of the overall funding of University operations, particularly compared to
tuition. Nonetheless, such resources remain a vital source of funding for academic programs and
administrative costs.

• Revenues from federal and state grants (non-exchange) provide for the recovery of direct and indirect costs.
Such revenues increased $3 million in 2008 and $1 million in 2007. In a time of heightened
competitiveness, especially for federal research funding, the University is maintaining its research base.

• The results of fund-raising efforts have been an important component of financial resources. Expendable
gifts to the University totaled $56 million and $46 million in 2008 and 2007, respectively. It will be difficult to
sustain the current level of operations without continued increases in donor support, which highlights the
importance of the success of the 8-year gift campaign that spans 2005 – 2013.

• Investment income increased $12 million in 2008 and $6 million in 2007, primarily reflecting higher interest
rates in the short-term market.

• The University’s fair value of investments decreased by $97 million in 2008 due to volatile financial market
conditions, expendable endowment commitments, and fund-raising fees. The University’s fair value of
investments increased by $167 million in 2007 due to a favorable investment market.

Overall Summary

There are significant transactions included in the income (loss) before other revenues, expenses, gains or
losses amount. These items, which fluctuate each year, are listed below with their net effect on the financial
statements.

• Fluctuations in the market value of investments

• Depreciation expense
• Additions to permanent endowments
• State capital appropriation revenue

The net effect of these significant transactions on income (loss) before other revenues, expenses, gains or
losses is shown below.

(in millions) 2008 2007 2006

Change in investment value $ (97) $ 167 $ 130

Depreciation (88) (87) (79)
Additions to permanent endowments 38 17 13
State capital appropriations 39 9 19
$ (108) $ 106 $ 83

12
UNIVERSITY OF CINCINNATI JUNE 30, 2008

STATEMENT OF CASH FLOWS

The Statement of Cash Flows provides additional information about the University’s financial results by reporting the
major sources and uses of cash. A comparative summary of the statement of cash flows for the years ended June 30
follows:

(in thousands) 2008 2007 2006

Cash received from operations $ 602,217 $ 590,333 $ 546,996
Cash expended for operations 832,663 838,089 847,806
Net cash used in operating activities (230,446) (247,756) (300,810)
Net cash provided by non-capital financing activities 312,945 258,226 247,700
Net cash used for capital and related
financing activities (90,565) (68,223) (79,431)
Net cash from investing activities (6,724) 89,113 118,435

Net increase (decrease) in cash and cash equivalents $(14,790) $ 31,360 $ (14,106)

The disparity between cash used in operating activities and cash provided by non-capital financing activities is a
result of the required financial reporting classification of state appropriations and gifts. Although state appropriations
and gifts are used primarily for operating expenses of the University, GASB Statement 35 requires that they be
reported as non-operating revenues. Had these resources been reported as operating revenue, the net cash used in
operating activities would have been an increase of $86 million in 2008 and a deficit of $5 million in 2007.

THE UNIVERSITY’S ECONOMIC OUTLOOK

The University of Cincinnati has a strong tradition of effective planning, resource allocation and assessment that has
allowed it to fulfill its mission, improve the quality of its education and respond to future challenges and opportunities.
To ensure the University is able to support this level of excellence, the University is committed to obtaining new
financial resources, to maintaining revenue diversification and to successfully containing costs.

The University continues to achieve its academic goals of increased enrollment, improved scholastic achievement for
the incoming freshmen class, student retention, and improved graduation rates. The University is projecting a total
enrollment of more than 37,000 students for autumn quarter of the 2009 academic year. This is the largest number of
students in 18 years and an increase of more than 500 students over FY 2008’s total enrollment of 36,518. Early
admission figures indicate that freshmen entering UC’s baccalaureate colleges on the Uptown Campus hold an
average ACT test score of 24.8, significantly higher than last year’s average of 24.1 and also higher than the national
average ACT test score of 21.1. SAT test scores are up to 1125 this fall, compared with an average of 1109 last fall.
Among the class are:

• 14 Cincinnatus $80,000 full-ride scholarship recipients

• 897 Cincinnatus total scholarship recipients
• 44 National Merit Scholars, a record for incoming freshmen
• 29 recipients of UC’s Darwin T. Turner scholarship program
• 30 Demakes Legacy Scholars
• 67 valedictorians
• 19 salutatorians

UC’s graduation and retention rates have been steadily improving over the last five years. For fall 2008, the retention
rate is projected to rise 2% over last year, reaching 84%. The graduation rate is projected to reach 55%, up 3%
compared to last year. For both, that is an increase of 7% over five years ago.

13
UNIVERSITY OF CINCINNATI JUNE 30, 2008

The University is state supported with appropriations accounting for 20% and 18% of the total revenues of the
University in 2008 and 2007, respectively. Ohio’s trend in funding higher education has been positive in the past 3
years. Governor Strickland has also made a commitment to higher education which includes a proposed new state
appropriation formula based on retention rates, graduation rates, and increases in research. It is anticipated that this
new formula will benefit the University.

Private gifts will continue to be a critically important financial resource and a significant factor in the growth of both
academic and research activities. To address the issue, the University established an $800 million gift campaign to
span 8 years which commenced July 1, 2005 and will end on June 30, 2013. The campaign is the largest in the 188-
year history of UC. Expected campaign priorities are student scholarships, fellowships to encourage advanced
scholarship and research, endowed appointments for top-notch faculty, academic program support and campus
enhancements. Throughout the campaign, the Foundation expects to have more than 500 volunteers actively
engaged. Regional committees will also focus on cultivating relationships with alumni and friends. Work has already
begun in New York, Chicago, Washington, DC, and Silicon Valley.

The current investment climate has been volatile and the University will work to minimize losses and maximize profits
through employment of a long-term investment strategy. The ability to sustain a level of investment return which is
compatible with the endowment spending policy is strained given the current performance of national and
international financial markets. Such investment strategies will be continually reviewed in order to insure the most
efficient use of the University’s financial resources.

14
 University of Cincinnati
Statement of Net Assets
As of June 30, 2008 and 2007
(in thousands)

University Related
University Foundation
2008 2007 2008 2007

ASSETS
Current assets:
Cash and cash equivalents $ 75,285 $ 90,075 $ 14,160 $ 10,684
Investments 53,916 11,097
Accounts and pledges receivable, net 67,683 47,058 14,744 20,119
Inventories 2,001 1,806
Deposits with bond trustees 4,920 780
Notes receivable, net 3,266 2,869
Other assets 494 17,048 117 113
Total current assets 207,565 170,733 29,021 30,916

Noncurrent assets:
Investments 53,591 33,122
Accounts and pledges receivable, net 10,151 23,737 45,736 15,000
Deposits with bond trustees 10,423 7,975
Endowment investments 1,095,327 1,183,723 15,651 19,511
Notes receivable, net 33,282 29,620
Other long-term investments 390,454 380,545
Capital assets, net 1,469,215 1,470,743 1,251 1,220
Total noncurrent assets 3,062,443 3,129,465 62,638 35,731
Total assets 3,270,008 3,300,198 91,659 66,647

LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 153,761 158,014 10,634 11,017
Deferred revenue 40,429 29,669
Long-term liabilities - current portion 65,403 138,811
Total current liabilities 259,593 326,494 10,634 11,017

Noncurrent liabilities:
Deposits 3,228 10,076 713 835
Accrued liabilites 29,779 31,055
Refundable advances for federal loans 26,276 26,311
Long-term liabilities 1,025,617 935,522
Total noncurrent liabilities 1,084,900 1,002,964 713 835
Total liabilities 1,344,493 1,329,458 11,347 11,852

NET ASSETS
Invested in capital assets, net of related debt 455,967 478,971 1,251 1,220
Restricted for:
Nonexpendable 1,202,523 1,265,492 47,037 29,389
Expendable 391,590 413,063 30,944 19,850
Unrestricted (124,565) (186,786) 1,080 4,336
Total net assets $ 1,925,515 $ 1,970,740 $ 80,312 $ 54,795

See accompanying notes to financial statements. 15

 University of Cincinnati
Statement of Revenues, Expenses and Changes in Net Assets
For the Years Ended June 30, 2008 and 2007
(in thousands)

University Related
University Foundation
REVENUES 2008 2007 2008 2007
Operating revenues:
Student tuition and fees, net $ 272,910 $ 260,605 $ $
Federal grants and contracts 148,273 148,124
State and local grants and contracts 6,580 5,568
Nongovernmental grants and contracts 17,485 14,174
Sales and services of educational departments 66,041 58,645
Auxiliary enterprises:
Residential life 30,139 27,591
Athletics, net 15,380 13,184
Other Auxiliary enterprises 36,896 36,264
Other operating revenues 4,838 5,651
Total operating revenues 598,542 569,806 - -

EXPENSES
Operating expenses:
Instruction 283,503 285,671
Research 157,843 153,247
Public Service 57,247 56,592
Academic Support 63,944 66,306
Student Services 37,722 37,188
Institutional Support 79,664 77,054 7,740 7,804
Operation Maintenance and Plant 63,560 61,499
Scholarships and Fellowships 23,630 24,474
Auxiliary Expenses 78,163 77,509
Depreciation 87,765 87,360 275 210
Total operating expenses 933,041 926,900 8,015 8,014
Operating loss (334,499) (357,094) (8,015) (8,014)

NONOPERATING REVENUES (EXPENSES)

State appropriations 193,814 185,864
Federal and state grants (non-exchange) 27,633 24,494
Gifts, including $27,264 in FY08 and $22,927 in FY07
from the University Foundation 56,310 46,356 57,425 27,778
Investment income, net 72,739 60,311 4,848 5,212
Increase (decrease) in fair value of investments (96,616) 166,878 (1,477) 5,009
Interest on capital asset-related debt (41,264) (40,245)
Gain (loss) on disposal of assets (1,136) 1,659
Payments to University of Cincinnati - - (27,264) (22,927)
Other nonoperating expenses (464) (11,551)
Net nonoperating revenue 211,016 433,766 33,532 15,072
Income (loss) before other revenues,
expenses, gains or losses (123,483) 76,672 25,517 7,058
Capital appropriations 39,362 8,778
Capital grants and gifts 1,228 2,675
Additions to permanent endowments 37,668 16,966
Increase (decrease) in net assets (45,225) 105,091 25,517 7,058

NET ASSETS
Net assets - beginning of year 1,970,740 1,865,649 54,795 47,737
Net assets - end of year $ 1,925,515 $ 1,970,740 $ 80,312 $ 54,795

See accompanying notes to financial statements. 16

 University of Cincinnati
Statements of Cash Flows
Years Ended June 30, 2008 and 2007
(in thousands)

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

See accompanying notes to financial statements. 17

 University of Cincinnati
Statements of Cash Flows - continued
Years Ended June 30, 2008 and 2007
(in thousands)

2008 2007
RECONCILIATION OF NET OPERATING LOSS TO
NET CASH USED FOR OPERATING ACTIVITIES:

Operating loss $ (334,499) $ (357,094)

Adjustments to reconcile operating loss to net cash
used for operating activities:
Depreciation expense 87,765 87,360
Loss (gain) on disposal of capital assets 1,136 (1,659)
Changes in assets and liabilities:
Receivables, net (9,904) (2,405)
Inventories (195) (2,052)
Other assets 16,035 549
Accounts payable and accrued liabilities (3,402) 26,378
Deferred revenue 7,334 4,395
Compensated absences (1,244) (1,913)
Deposits 6,528 (1,316)
Net cash used for operating activities $ (230,446) $ (247,757)

Non cash transactions:

Capital asset acquired by incurring note payable $ - $ 2,800
Accrued liabilities for construction in progress 7,549 7,996

See accompanying notes to financial statements. 18

UNIVERSITY OF CINCINNATI JUNE 30, 2008

NOTES TO FINANCIAL STATEMENTS

For the Years Ended June 30, 2008 and 2007

1. Organization and Summary of Significant Accounting Policies

A) Organization

The University of Cincinnati (the University) was founded in 1819 with the first charter granted by the State of
Ohio in 1870. The University, formerly city owned, became a State University on July 1, 1977. As such, it is
a component unit of the State of Ohio. Under provisions of the Internal Revenue Code, Section 115, and the
applicable income tax regulations of the State of Ohio, the University, as a state institution, is exempt from
taxes on income other than unrelated business income. Since the University has no material net unrelated
business income during the year ended June 30, 2008, no provision for income taxes has been made.

The accompanying financial statements consist of the accounts of the University and the accounts of the
University of Cincinnati Foundation (the Foundation). The Foundation, which is a component unit of the
University in accordance with the provisions of the Governmental Accounting Standards Board (GASB)
Statement 14, The Financial Reporting Entity, is described more fully in Note 16. The Foundation is exempt
from Federal income taxes under the provisions of Internal Revenue Code Section 501(c)(3).

B) Basis of Presentation

The financial statements have been prepared in accordance with accounting principles generally accepted in
the United States of America, as prescribed by the GASB. The University has elected not to apply those
Financial Accounting Standards Board (FASB) pronouncements issued after November 30, 1989.

The University’s financial resources are classified for accounting and reporting purposes into the following three
net asset categories:

Invested in Capital Assets Net of Related Debt—Capital assets, net of accumulated depreciation and
outstanding principal balances of debt attributable to the acquisition, construction or improvement of those
assets.

Restricted—Nonexpendable restricted net assets are subject to externally imposed stipulations that they be
maintained permanently by the University. Such assets include the University’s permanent endowment funds.

Restricted—Expendable restricted net assets are subject to externally imposed stipulations that can be fulfilled
by actions of the University pursuant to those stipulations or that expire by the passage of time.

Unrestricted—Net assets that are not subject to externally imposed stipulations. Unrestricted net assets may
be designated for specific purposes by action of management or the Board of Trustees or may otherwise be
limited by contractual agreements with outside parties. Substantially all unrestricted net assets are designated
for academic and research programs and initiatives and for capital programs.

C) Summary of Significant Accounting Policies

The accompanying financial statements have been prepared on the accrual basis. The University reports as
a Business Type Activity as defined by GASB Statement No. 35. A Business Type Activity is financed in
whole or in part by fees charged to external parties for goods or services.

Investments in marketable securities (other than the University’s alternative investments) are carried at fair
value as established by the major securities markets (quoted market prices). Investment income is recorded
on the accrual basis. Realized and unrealized gains and losses are reported as non-operating revenues
(expenses).

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UNIVERSITY OF CINCINNATI JUNE 30, 2008

The University’s financial statements include alternative investments, such as limited partnerships, that are
not publicly traded. Certain of these alternative investments are carried at estimated fair value as of March
31, 2008 and 2007, as adjusted by cash receipts, cash disbursements and securities distributions through
June 30, 2008 and 2007, at a total estimated fair value of $98 million and $83 million, respectively. In
addition, the University also has alternative investments in investment funds that are not themselves publicly
traded and thus do not have publicly reported market values, but whose underlying assets consist of publicly
traded investments for which fair values are established by the major securities markets. Such alternative
investments are carried at fair value of $318 million and $354 million at June 30, 2008 and 2007. The
University believes that the total carrying amount of its alternative investments valued at $416 million and
$437 million at June 30, 2008 and 2007 is a reasonable estimate of fair value. The University’s outstanding
commitment to alternative investments is $42 million and $25 million as of June 30, 2008 and 2007,
respectively.

The University’s investment securities, in general, are exposed to various risks, such as interest rate, credit,
and overall market volatility risks. Due to the level of risk associated with certain investment securities, it is
reasonably possible that changes in the values of investments could occur in the near term and that such
changes could materially affect the investment amounts reported in the accompanying Statement of Net
Assets. Subsequent to June 30, 2008, conditions in the worldwide debt and equity markets have
deteriorated significantly. These conditions have had a negative effect on the fair value of the University’s
investments since June 30, 2008. However, we are unable to quantify the exact effect on the University.

Inventories are held primarily by the central store and are stated at the lower of cost or net realizable market
value. The moving-average basis for all inventories is used to determine inventory cost.

Capital Assets—Land, land improvements, infrastructure, buildings and equipment are recorded at cost at
date of acquisition, or market value at date of donation. The University’s capitalization threshold is $100,000
for major capital projects and $5,000 for all other capitalized items. Interest on related borrowing, net of
interest earnings on invested proceeds, is capitalized during the period of construction. University and
Foundation property and equipment are depreciated using the straight-line method over the estimated useful
lives (from five to fifty years) of the respective assets. When plant assets are sold or disposed of, the
carrying value of such assets and the associated depreciation are removed from the University’s records.

The University does not capitalize works of art or historical treasures that are held for public exhibition,
education or research in furtherance of public service. These collections are neither disposed of for financial
gain nor encumbered in any way. In addition, the University requires the proceeds from the sale of collection
items be used to acquire other collection items. Accordingly, such collections are not recognized or
capitalized for financial statement purposes. All other works of art or historical treasures are capitalized at
historical or fair value at date of donation.

Gift Pledges—The University receives pledges and bequests of financial support from corporations,
foundations and individuals. Revenue is recognized when a pledge representing an unconditional promise
to pay is received and all eligibility requirements, including time requirements, have been met. In the
absence of such promise, revenue is recognized when the gift is received.

Unconditional promises to give that are expected to be collected in future years are recorded at the present
value of the estimated future cash flows. The discounts on these amounts are computed using a discount
rate commensurate with the risks involved. At June 30, 2008, these discount rates ranged from 4% to 6%.
An allowance for uncollectible pledges receivable is provided based on management’s judgment of potential
uncollectible amounts. The determination includes such factors as prior collection history, type of gift and
nature of fund-raising.

Deferred Revenue includes amounts received in advance of an event.

Endowment Spending Policy—For donor restricted endowments, the Uniform Management of Institutional
Funds Act permits the University to distribute an amount of realized and unrealized endowment appreciation
as the Board of Trustees determines to be prudent. The University’s policy is to accumulate the
undistributed realized and unrealized appreciation within the endowment, which is discussed in Note 2.

Student Tuition and Residence Fees are presented net of scholarship and fellowship allowances of
$84,322,000 in 2008 and $81,510,000 in 2007 and bad debt provisions of $1,287,000 in 2008 and
$2,726,000 in 2007. Payments made directly to students are presented as scholarship and fellowship
expenses.

20
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Auxiliary Enterprise Revenues primarily represent revenues generated by bookstores, parking, the
conference center, athletics, housing, and dining.

Operating Activities, as reported on the Statement of Revenues, Expenses, and Changes in Net Assets
are those that generally result from exchange transactions such as payments received for providing services
and payments made for services or goods received. Nearly all of the University’s expenses are from
exchange transactions. Certain significant revenue streams relied upon for operations are recorded
as non-operating revenues, as defined by GASB Statement 35, including state appropriations, gifts and
investment income.

Management Estimates—The preparation of financial statements in conformity with accounting principles

generally accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported amounts of revenue and expenditures
during the reporting period. Actual results could differ from those estimates.

Reclassifications – Prior year federal and state grant programs have been reclassified from operating
revenue to non-operating revenue in the amount of $24,494,000 for fiscal year 2007 on the Statement of
Revenues, Expenses and Changes in Net Assets to conform to the current year presentation. This
reclassification was the result of the issuance by GASB of an implementation guide that clarified that certain
non-exchange grants should be reported as non-operating revenue.

2. Cash and Investments

Summary—The University maintains centralized management for substantially all of its cash and
investments. With the exception of insurance reserves, charitable remainder trusts, and other trust funds the
terms of which require separate management, the University invests its reserves and relatively short-duration
assets in the Temporary Investment Pool, and invests substantially all of the assets of the University
endowment in the Endowment Investment Pool.

Distributions are made from the University endowment to the University entities that benefit from those
funds. The endowment spending policy provides for an annual distribution of 5% of the twelve-quarter
moving-average market value of endowment units. However, during 2007 and continuing into fiscal year
2009, a temporary 6% endowment spending policy is in effect.

Authorizations—The Temporary Investment Pool is invested principally in investment-grade money-market

and fixed-income securities. Balances in the Temporary Investment Pool are primarily for operating
expenses or for funding capital projects.

The University investment policies are governed and authorized by University rules. The approved asset
allocation policy for the endowment investments sets a general target of 85% equities and 15% fixed-income
securities within broader ranges set at the discretion of the Investment Committee.

The University has an established set of investment guidelines related to targeted asset allocation and
allowable ranges for alternative investments. As commonly defined in the investment industry, the target
allocations for the three groups of alternative investments in force at June 30, 2008 are Private Real Estate
3%, Private Equity 2.5%, and Hedge Funds 3%. The allowable range for all three groups is 0% to 10%.

Diversification is a fundamental risk-management strategy for the endowment portfolio. Accordingly, the
portfolio includes investments in domestic and non-U.S. stocks, bonds and bond-like loans; real estate; and
limited partnerships consisting of venture capital, private equity and real estate.

Off-Balance-Sheet Risk—The University’s investment strategy incorporates certain financial instruments

which involve, to varying degrees, elements of market risk and credit risk in excess of amounts recorded in
the financial statements. Market risk is the potential for changes in the value of financial instruments due to
market changes, including interest and foreign exchange rate movements and fluctuations embodied in
forward, futures, and commodity or security prices. Market risk is directly impacted by the volatility and
liquidity of the markets in which the related underlying assets are traded. Credit risk is the possibility that a
loss may occur due to the failure of a counterparty to perform according to the terms of the contract. The
University’s risk of loss in the event of counterparty default is typically limited to the amounts recognized in
the Statement of Net Assets and is not represented by the contract or notional amounts of the instruments.

21
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Cash and Cash Equivalents—The University considers all highly liquid investments purchased with an
original maturity of three months or less to be cash equivalents. At June 30, 2008, the carrying amount of
the University’s cash and cash equivalents for all funds is $75,285,000 as compared to bank balances of
$85,854,000. The difference between the carrying amount and the bank balances is caused primarily by
deposits in transit and outstanding checks.

Of the University’s bank balances, $210,000 is covered by federal depository insurance; mutual funds hold
cash equivalents of $76,991,000; $6,099,000 is in public funds collateralized pools; and the balance of
$2,554,000 is uncollateralized. The University does not have a policy for custodial credit risk.

Investments — The fair value of University investments at June 30 is (in thousands):

2008 2007
U. S. government, agency and treasury securities $ 35,696 $ 38,896
Corporate notes and bonds 108,783 41,052
Corporate stocks 244,540 267,934
Mutual funds 491,049 523,885
Other securities 69,755 75,216
Real estate 12,687 12,687
Total investments 962,510 959,670
Less current investments (see detail below) 53,916 11,097
Non-current investments $908,594 $948,573

Current investment detail (in thousands):

2008 2007
U. S. government, agency and treasury securities $10,952 $ 4,568
Corporate notes and bonds 42,964 6,487
Mutual funds - 42
Total current investments $53,916 $11,097

Alternative Investments (please refer to Note 1-C, Summary of Significant Accounting Policies, regarding
valuation of alternative investments) of $416 million are included within mutual funds and other securities in
the summary schedule of investments above.

At June 30, 2008 and 2007, other securities included $82,580,000 and $81,045,000 net of $14,781,000 and
$14,534,000 of loan loss reserves, respectively, of loans made to certain nonprofit entities for the purpose of
developing residential and commercial facilities on the borders of the campus. Currently, these loans are
secured primarily by mortgages on parcels of land purchased by these nonprofit entities. Some of these
mortgages are subordinated to external financing arranged by these entities. These loans bear interest at
6%. The University expects repayment once the residential and commercial facilities have streams of rental
income. Loan loss reserves are estimated based on aggregate cash flows projections for the projects and
independent appraisals of the underlying undeveloped real estate. The loan loss reserves are reflected in
non-operating revenues (expenses), as a component of the increase in fair value of investments.

The University has recorded the investments in the table above in the following categories: $107,507,000 of
investments and $855,003,000 of endowment investments. Also, included in endowment investments as
reported on the Statement of Net Assets are $240,324,000 invested predominately in equities held in donor-
stipulated irrevocable trusts.

GASB Statement 40 requires government entities to categorize investments by interest rate risk, credit risk,
and custodial credit risk.

22
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Interest Rate Risk – The University’s investments total $962,510,000. The segmented time distribution
method is used to portray interest rate risk of $344,877,000 at June 30, 2008 of bond, other fixed income
investments, and other local mortgage rates. Investments for the years ended June 30, 2008 and 2007 are
summarized as follows (in thousands):

Investment Maturities (In Years) 2008

Investment Type Fair Value Less than 1 1-5 6-10 More than 10

US Treasury
Obligations $ 5,348 $ - $ 761 $ 1,728 $ 2,859
US Government and
Agency Obligations 26,633 10,332 155 2,015 14,131
US Treasury STRIPS 3,715 850 2,865 - -
US Treasury
Mutual Fund 71,870 - - 71,870 -
Corporate Bonds and
Notes 108,783 44,958 5,429 5,598 52,798
Bond Mutual Funds 58,343 - 18,808 39,534 1
Local mortgage secured
loans 67,799 3,503 3,788 4,908 55,600
Other 2,386 367 1,836 183 -
Total $344,877 $60,010 $ 33,642 $125,836 $125,389

Investment Maturities (In Years) 2007

Investment Type Fair Value Less than 1 1-5 6-10 More than 10

US Treasury
Obligations $ 3,517 $ - $ - $ 1,100 $ 2,417
US Government and
Agency Obligations 31,170 3,740 12,617 2,750 12,063
US Treasury STRIPS 4,209 828 3,381 - -
US Treasury
Mutual Fund 42,503 - - 42,503 -
Corporate Bonds and
Notes 41,052 7,495 14,510 5,012 14,035
Bond Mutual Funds 53,193 - 17,862 35,331 -
Local mortgage secured
loans 66,511 - - - 66,511
Other 3,908 367 1,835 551 1,155
Total $246,063 $12,430 $50,205 $87,247 $ 96,181

Local mortgage secured loans are comprised of demand notes receivable. Amounts reflected as maturities
represent management’s best estimate of anticipated collections of these receivables.

The University’s investment policy stipulates that the weighted average maturity of investments in the
Temporary Investment Pool shall be no longer than 5 years. The weighted average of fixed income
maturities in the Endowment portfolio shall not exceed 20 years.

Credit Risk - The Temporary Investment Pool permits investments in securities rated A or higher at the time
of purchase. Securities which are downgraded below an A rating after purchase are permitted to be
retained. Endowment investment-grade bonds are limited to those in the first four grades of any rating
system. Below-investment grade high yield bond investments and certain unrated investments having
strategic value to the University are permitted. In accordance with the University’s investment policy, the
University’s $344,877,000 bond and other fixed income investments are rated by nationally recognized rating
organizations as follows as of June 30 (in thousands):

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UNIVERSITY OF CINCINNATI JUNE 30, 2008

Rating 2008 2007

US Treasury Obligations – equivalent of AAA $ 77,218 $ 46,019
AAA 31,588 35,379
AA 77,527 55,693
A 77,610 27,500
BBB 10,749 11,053
Not Rated 70,185 70,419
Total $344,877 $246,063

Custodial Credit Risk – Of the University’s $962,510,000 total investments, $920,354,000 are uninsured,
not registered in the name of the University, and are held by trust departments or agents in the University’s
name, and thus are exposed to custodial credit risk. The University does not have a policy for custodial
credit risk.

University Investment Pools—Of the University investments, approximately $37,097,000 are separately
invested by donor stipulation. The remaining funds are invested in one of three pools. The Temporary
Investment Pool represents the investment of substantially all University cash not otherwise invested in the
endowment.

The Endowment Investment Pool A is the principal investment pool for the University endowments that may be
pooled legally or by donor concurrence. The University employs the share method of accounting for the
Endowment Investment Pool A investments and for proportionate distribution of income to each fund that
participates in the pool. At June 30, 2008, the Endowment Investment Pool A consisted of 7,841,000 shares.
Effective July 1, 2002, substantially all endowments held in trust, by donor stipulation, by the University of
Cincinnati Foundation were invested in the University's Endowment Investment Pool A. At June 30, 2008, such
endowments own 1,921,000 pool shares with a market value of $201,825,000, equating to approximately 25%
of the Endowment Investment Pool A. The Endowment Investment Pool B comprises real estate holdings
received by bequest.

The following tabulation summarizes the changes in relationships between cost and fair values of the
Endowment Investment Pool A assets for the year (in thousands):

Net Fair Value

Gains/ Gain/(Loss)
Net Cost Fair Value (Losses) Per Share

End of year $784,112 $822,281 $ 38,169 $105.05

Beginning of year 755,216 866,935 111,719 117.34

Unrealized net gain/(loss) for year (73,550)

Realized net gain/(loss) for year (29,836)

Total net gain/(loss) for year $(103,386) $ (12.29)

The University has adopted a spending rate policy which limits the distribution of endowment income earned in
the investment pool to 5% of the moving-average market value for the twelve-quarter period ending each
December. For FY07 through FY09, the spending policy has temporarily been increased to 6%. During 2008,
income earned was approximately $28,814,000 less than the amount allocated for spending. In accordance
with the Ohio Uniform Management of Institutional Funds Act, the cumulative shortfall of $178,735,000 as of
June 30, 2008, is funded by capital appreciation of the investment pool.

Income allocated for spending during 2008 amounted to $6.30 per share of the Endowment Investment Pool A.
The average annual earnings per share, exclusive of capital appreciation, amounted to $2.98.

24
UNIVERSITY OF CINCINNATI JUNE 30, 2008

3. Accounts, Pledges and Notes Receivable

Accounts, pledges and notes receivable as of June 30, are as follows (in thousands):

2008 2007
Accounts receivable $ 59,448 $ 51,971
Pledges receivable 11,095 12,388
Notes receivable 36,548 32,489
Accrued interest receivable 7,290 6,436
Total 114,381 103,284
Less current receivables 56,865 49,927
Non-current receivables $ 57,516 $ 53,357

Allowances for uncollectible receivables have been provided in the amount of approximately $6,665,000 and
$6,926,000 for accounts receivable, $568,000 and $827,000 for pledges receivable, and $5,645,000 and
$4,903,000 for notes receivable as of June 30, 2008 and 2007, respectively.

An allowance for uncollectible accrued interest receivable has been provided in the amount of approximately
$14,084,000 and $10,439,000 related to loans made to certain nonprofit entities as of June 30, 2008 and
2007, respectively (see note #2).

Pledges have been discounted at a rate of 4% to net present value, which approximates the fair value of the
receivables as follows (in thousands):

2008 2007
Less than one year $ 4,333 $ 2,712
One to five years 3,726 5,899
More than five years 3,604 4,604
Subtotal 11,663 13,215
Less allowance for uncollectible pledges 568 827
Total $11,095 $12,388

Pledges receivable due from one donor approximated 48% and 45% of total pledges receivable, as of June
30, 2008 and 2007, respectively.

4. Capital Assets
Capital assets activity for the years ended June 30, 2008 and 2007 is summarized as follows (in thousands):

Balance Retirements/ Balance

July 1, 2007 Additions Transfers June 30, 2008
Land $ 21,923 $ - $ - $ 21,923
Land improvement 81,629 - 4,773 86,402
Buildings 1,596,622 - 13,618 1,610,240
Construction in progress 176,665 71,839 (25,250) 223,254
Infrastructure 96,353 - 3,891 100,244
Building equipment 15,193 - 58 15,251
Moveable equipment 152,999 9,064 (11,115) 150,948
Computer Software 34,940 426 (155) 35,211
Books 140,741 9,155 (549) 149,347
Art objects 4,364 - - 4,364
Total Assets 2,321,429 90,484 (14,729) 2,397,184
Less accumulated depreciation 850,686 87,765 (10,482) 927,969
Net Assets $1,470,743 $ 2,719 $ (4,247) $1,469,215

25
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Balance Retirements/ Balance

July 1, 2006 Additions Transfers June 30, 2007
Land $ 21,923 $ - $ - $ 21,923
Land improvement 78,014 - 3,615 81,629
Buildings 1,531,770 - 64,852 1,596,622
Construction in progress 141,295 131,735 (96,365) 176,665
Infrastructure 89,668 - 6,685 96,353
Building equipment 15,193 - - 15,193
Moveable equipment 145,846 9,895 (2,742) 152,999
Computer Software 28,747 200 5,993 34,940
Books 131,684 8,671 386 140,741
Art objects 4,356 18 (10) 4,364
Total Assets 2,188,496 150,519 (17,586) 2,321,429
Less accumulated depreciation 768,017 87,360 (4,691) 850,686
Net Assets $1,420,479 $ 63,159 $ (12,895) $1,470,743

5. Accounts Payable and Accrued Liabilities

Accounts payable and the current portion of accrued liabilities as of June 30, 2008 and 2007 are as follows
(in thousands):

2008 2007
Compensated absences (Current portion) $ 33,528 $ 33,941
Compensation 31,694 32,237
Accrued liabilities 53,867 59,018
Vendors payable 34,672 32,818

Total $153,761 $158,014

6. Compensated Absences

University employees earn vacation and sick leave on a monthly basis. Vacation benefits may be accrued
up to a maximum of three years’ credit, and earned but unused days are payable upon termination. Sick
leave may be accrued without limit; however, earned but unused days are payable only upon retirement
from the University, subject to 30- or 60-day limits depending upon the date of hire. The liability for the
costs of such benefits approximated $62,864,000 and $64,108,000 as of June 30, 2008 and 2007,
respectively.

26
UNIVERSITY OF CINCINNATI JUNE 30, 2008

7. Bonds and Notes Payable

Bonds and notes payable at June 30, comprise the following (in thousands):

Maturity
Issue Dates Interest Outstanding Debt
Bond Series – Fixed Rate Debt Date Through Rate 2008 2007
T, X, Y, AA, AG, AH 1998 2014 4.65-5.50% $ 11,795 $ 15,855
Z, AC 1997 2012 5.05-5.15% 1,135 2,705
AD 1997 2010 5.05% 935 1,820
AL, AM, AN 1998 2018 4.40-4.75% 3,800 4,555
AL-1, AO 1999 2013 5.05-5.50% 3,985 4,670
AQ, AT, AU, AV, AZ 2000 2015 5.25-5.50% 2,645 3,145
2001A 2001 2031 5.00-5.50% 106,060 112,775
2002A 2002 2022 3.85-4.875% 4,480 4,710
2002D 2002 2022 4.00-5.00% 3,340 3,665
2002F 2003 2024 3.55-5.375% 26,710 28,370
2002G 2003 2031 3.50-5.00% 11,230 12,250
2003C 2003 2026 4.00-5.00% 69,155 73,940
2004A 2004 2031 2.25-5.00% 56,430 63,405
2004D 2004 2026 2.50-5.00% 49,095 50,050
2004E 2005 2021 2.80-5.00% 21,240 22,505
2005A 2005 2020 3.10-5.00% 69,410 69,410
2005D 2006 2019 4.00-5.00% 20,410 20,410
2006A 2006 2031 3.50-5.00% 52,035 54,075
2007A 2007 2031 3.55-5.00% 78,015 78,445
2007G 2008 2034 3.75-5.00% 89,170 0
2008C 2008 2031 3.00-5.00% 39,280 0
Total bonds payable – fixed rate debt $720,355 $626,760
Average
Interest Rate
Since
Bond Series – Variable Rate Debt Issuance
2004B – Auction Mode 2004 2008 2.79% $0 $40,000
2004B – Weekly Mode 2004 2031 3.01% 99,055 101,295
2007B – Weekly Mode 2007 2020 3.85% 38,355 39,955
2008B – Weekly Mode 2008 2024 3.27% 35,915 0
Total bonds payable – variable rate
debt 173,325 181,250

Total bonds payable $893,680 $808,010

27
UNIVERSITY OF CINCINNATI JUNE 30, 2008

Maturity
Notes Payable and Issue Dates Interest Outstanding Debt
Other Debt ___ Date Through Rate 2008 2007
General Receipts Bond
Anticipation Notes:
2006D July 2006 July 2007 4.75% 0 20,025
2006E August 2006 July 2007 4.75% 0 15,000
2007C January 2007 January 2008 4.50% 0 28,000
2007D March 2007 October 2007 3.73% 0 32,810
2008A January 2008 January 2009 3.25% 30,000 0
Certificates of Participation—Ctr
For Information Tech 1993 2008 0 90
Capital Lease Obligations
University Center 1996 2011 5.00-5.10% 11,215 14,055
Edwards Center 1998 2011 5.50-5.75% 8,580 10,445
Residence Halls 2000 2028 4.65-5.50% 38,415 39,500
University Ctr Refunding 2005 2024 3.50-5.00% 52,815 52,815
Capital Lease-Stetson July 2006 June 2033 4.25-5.97% 32,745 32,745
Capital Lease-Turner July 2006 June 2033 4.00-5.25% 9,955 9,955
Loans payable-equipment 2003 2014 3.58-4.69% 5,068 6,439
Total notes payable and other debt 188,793 261,879
Total bonds and notes payable and other debt 1,082,473 1,069,889
Premium net of unamortized costs and loss on refunding 8,547 4,444
Total bonds and notes payable and other debt, net $1,091,020 $1,074,333

A) Debt Issuances and Permanent Fundings

General Receipt Bonds-Fixed Rate Debt – During the year ended June 30, 2008, the University issued
two general receipt fixed rate bond series totaling $128,450,000 that bear interest at rates ranging from
3.00% to 5.00% and mature in years 2031 and 2034. Both bond series were issued at a premium. The
proceeds were used to current refund portions of Series 2007C and 2007E BANS; current refund a portion of
Series 2004B variable rate bonds (the auction rate reset mode bonds); to finance a portion of the MSB
Phase 1/CARE/Eden Quad project, a portion of the MSB Rehabilitation Phases 2-5 project, and the
Teachers/Dyer Phase 2A project; and to pay associated bond issue costs and capitalized interest.

The refunded Series 2004B variable rate bonds had been issued to finance a portion of the MSB Phase
1/CARE/Eden Quad project. $32,250,000 of bonds was called on February 14, 2008 and the remaining
$7,750,000 of bonds was called on March 20, 2008.

General Receipt Bonds-Variable Rate Debt – During the year ended June 30, 2008, the University issued
an additional general receipt variable rate bond series, totaling $35,915,000. Series 2008B was issued April
9, 2008 in a weekly reset mode and matures in 2024. The proceeds were used to current refund
$34,855,000 of the 2008 and callable 2009 maturities of fixed rate bonds on June 1, 2008, with the goal of
building cash reserves.

The initial interest rate for the Series 2008B – weekly reset mode bonds was 1.90%. The interest rate for the
weekly mode bonds resets every week, with interest due the first business day of each calendar month.
Interest paid to date has been based on weekly rates that have fluctuated from a low of 1.52% to a high of
2.68%. The maximum interest rate on the weekly reset mode bonds is 12%. The Series 2008B bonds are
secured by a letter of credit issued by Bayerische Landesbank. Series 2008B weekly rate bondholders may
tender any of these bonds for repurchase every seven days. Any bonds so tendered will be purchased
either by the proceeds of the remarketing of such bonds or, if not successfully remarketed, by a draw on the
letter of credit. Accordingly, the University has classified the outstanding principal balance on its weekly

28
UNIVERSITY OF CINCINNATI JUNE 30, 2008

reset mode bonds that matures after June 30, 2009 as a long-term liability. As of June 30, 2008, there has
not been a failed remarketing for the weekly reset mode variable rate bonds.

The University issued general receipt insured variable rate bonds, Series 2007B, in 2007. The initial interest
rate for the Series 2007B – weekly reset mode bonds was 3.60%. The interest rate for the weekly mode
bonds resets every week, with interest due the first business day of each calendar month. Interest paid to
date has been based on weekly rates that have fluctuated from a low of 3.54% to a high of 10%. The
maximum interest rate on the weekly reset mode bonds is 12%. The University has entered into a standby
bond purchase agreement (SBPA) with a liquidity provider for Series 2007B weekly reset mode bonds.
Series 2007B weekly rate bondholders may tender any of these bonds for repurchase every seven days.
Any bonds so tendered will be purchased either by the proceeds of the remarketing of such bonds or, if not
successfully remarketed, by the liquidity provider. Accordingly, the University has classified the outstanding
principal balance on its weekly reset mode bonds that matures after June 30, 2009 as a long-term liability.
As of June 30, 2008, there has not been a failed remarketing for the weekly reset mode variable rate bonds.
The Series 2007B Bonds were retired with the issuance of Series 2008E Bond Anticipation Notes in July,
2008, as presented in Section F of this footnote.

The University issued general receipt insured variable rate bonds, Series 2004B, in 2004. These bonds
were initially issued in two modes: a portion was in the weekly reset mode and a portion was in the auction
rate reset mode.

The initial interest rate for the Series 2004B – weekly reset mode bonds was .92%. The interest rate for the
weekly mode bonds resets every week, with interest due the first business day of each calendar month.
Interest paid to date has been based on weekly rates that have fluctuated from a low of .87% to a high of
9.0%. The maximum interest rate on the weekly reset mode bonds is 12%. The University has entered into
a standby bond purchase agreement (SBPA) with a liquidity provider for Series 2004B weekly reset mode
bonds. Series 2004B weekly rate bondholders may tender any of these bonds for repurchase every seven
days. Any bonds so tendered will be purchased either by the proceeds of the remarketing of such bonds or,
if not successfully remarketed, by the liquidity provider. Accordingly, the University has classified the
outstanding principal balance on its weekly reset mode bonds that matures after June 30, 2009 as a long-
term liability. As of June 30, 2008, there has not been a failed remarketing for the weekly reset mode
variable rate bonds. The SBPA was amended in July 2008 as presented in Section F of this footnote.

The initial interest rate for the Series 2004B – auction rate reset mode was .85%. The interest rate for
auction rate bonds is reset at each auction. Series 2008C fixed rate bonds were issued on February 6, 2008
to current refund the Series 2004B auction rate reset mode bonds, due to deteriorating conditions within the
auction rate securities market. Interest paid through March 20, 2008 was based on rates that have
fluctuated from a low of .85% to a high of 4.65%. $32,250,000 of bonds was called on February 14, 2008
and the remaining $7,750,000 of bonds was called on March 20, 2008.

The University has the option to convert the variable rate bonds from one rate mode to another, as well as
the option to redeem these bonds in whole or in part. The University’s variable rate bonds mature at various
dates through 2031. It is the University’s intent to repay its variable rate bonds in accordance with the
maturities set forth in the bond indentures.

Derivative Transactions – During the year ended June 30, 2008, the University entered into an interest rate
swap agreement relating to the Series 2008B variable rate bonds, and a qualified hedge with respect to
bonds which are expected to be issued on or about May 1, 2009. The intention of these derivative
transactions is to protect against the potential of rising interest rates. The amounts under the swaps
decrease as principal payments are made on the bonds, so that the amount equals the principal amortization
for the bonds.

The following table summarizes the University’s interest rate swap agreements:

Associated Outstanding Fixed Fair Swap Counterparty/

Bond Notional Effective Rate Variable Rate Value @ Termination Counterparty
Issue Amount Date Paid Index Received 6/30/2008 Date Credit Rating
USD-SIFMA Royal Bank
2008B $30,930,000 4/8/2008 3.508% Municipal $366,000 6/1/2024 Of Canada/
Swap Index Aaa, AA-
Royal Bank
2009– $24,075,000 5/1/2009 3.163% USD- 67% $327,000 6/1/2030 Of Canada/
Series TBD LIBOR-BBA-1M Aaa, AA-

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UNIVERSITY OF CINCINNATI JUNE 30, 2008

Based on the swap agreements, the University pays to the swap counterparty interest calculated at a fixed
rate. In return, the swap counterparty pays the University interest based on a specified index. Only the net
difference in interest payments is actually exchanged with the counterparty. The University continues to pay
interest to the bondholders at the variable rate as provided for by the bonds. The interest paid to the
bondholders will be offset by the swap counterparty’s payment to the University; thus during the term of the
swap agreement, the University is in effect paying a synthetic fixed interest rate on this debt.

Basis Risk: The swaps expose the University to basis risk should the interest rate received on the swaps be
less than the interest rate paid on the bonds. This mismatch will effectively result in a higher synthetic fixed
rate and the expected savings may not be realized.

Termination Risk: The University or counterparty may terminate the swap if either party fails to perform
under the terms of the agreement. Termination provisions may result in the University paying or receiving a
termination payment, depending on the value of the swap at that point in time.

Fair Value: As of June 30, 2008, the combined fair value of the two swap agreements was a positive
$693,000, indicating the amount that the Counterparty would be required to pay the University to terminate
the swap agreements. The fair value was estimated using the zero coupon method. This method calculates
the future net settlement payments required by the swap agreement, assuming that the forward rates implied
by the yield curve as of June 30, 2008 correctly anticipate future spot interest rates. These payments are
then discounted using the spot rates implied by the yield curve for hypothetical zero-coupon bonds due on
the date of each future net settlement of the swap agreement. The fair values of the swap agreements were
developed by an independent third party with no vested interest in the swap transaction.

Credit Risk: As of June 30, 2008, the University was exposed to credit risk of the counterparty on the
termination payments because the swaps had positive fair values. At June 30, 2008, the counterparty was
rated AA- by Standard & Poor’s and Aaa by Moody’s Investors Service.

The Debt Service Commitments presented in section 7-D of this footnote are calculated using the fixed rate
of 3.508% for Series 2008B.

Bond Anticipation Notes – During the year ended June 30, 2008, the University issued the following Bond
Anticipation Notes: Series 2007E for $40,468,000, issued primarily to refinance existing bond anticipation
notes (Series 2006D and 2006E); Series 2007F for $32,810,083, issued to refinance existing bond
anticipation notes (Series 2007D); and Series 2008A for $30,000,000, issued to refinance existing bond
anticipation notes (a portion of Series 2007C and Series 2007E). Series 2007F bond anticipation notes were
retired on December 21, 2007. Series 2008A notes are currently outstanding and bear interest at a rate of
3.25%.

Loans Payable for Equipment – The University did not enter into any new loans for equipment purchases
during the year ended June 30, 2008. All of the outstanding loans for equipment bear interest rates between
3.58% and 4.69%.

Capital Leases for Stetson and Turner – The University has two capital lease agreements in connection
with the financing of two buildings (One Stetson Square and the Turner Center) which are owned by King
Highland Community Urban Redevelopment Corporation and will be occupied, all or in part, by the
University. The One Stetson Square lease totaling $32,745,000 bears interest at rates ranging from 4.25%
to 5.97% and matures in 2033. The Turner Center lease totaling $9,955,000 bears interest at rates ranging
from 4.00% to 5.25% and matures in 2033.

B) Refundings

General Receipts Bonds—Series 2008B general receipt bonds were issued April 9, 2008 in the amount of
$35,915,000, for the purpose of current refunding $34,855,000 of the following June 1, 2008 and callable
June 1, 2009 fixed rate bond maturities: Series T $1,210,000, Series X $240,000, Series Y $390,000, Series
Z $1,325,000, Series AA $985,000, Series AC $245,000, Series AD $885,000, Series AG $430,000, Series
AH $805,000, Series AL $335,000, Series AL1 $230,000, Series AM $265,000, Series AN $155,000, Series
AO $455,000, Series AQ $260,000, Series AT $30,000, Series AU $100,000, Series AV $35,000, Series AZ
$75,000, Series 2001A $6,715,000, Series 2002A $230,000, Series 2002D $325,000, Series 2002F

30
UNIVERSITY OF CINCINNATI JUNE 30, 2008

$1,660,000, Series 2002G $1,020,000, Series 2003C $4,785,000, Series 2004A $6,975,000, Series 2004D
$955,000, Series 2004E $1,265,000, Series 2006A $2,040,000 and Series 2007A $430,000. The purpose of
the refunding was to increase the University’s Liquidity Reserve from short-term debt service savings by
slightly extending the average life of the University’s debt. Net proceeds of $35,496,090 were used to
purchase United States government securities that were placed in irrevocable trust with an escrow agent to
provide for the June 1, 2008 debt service payment for the above referenced bonds. The resulting loss on
refunding which reflects the difference between the refunding reacquisition price for Series 2008B and the
net carrying amount of the outstanding principal balances of the refunded debt issues was not significant.

Series 2008C general receipt bonds were issued February 6, 2008 in the amount of $39,280,000, for the
purpose of current refunding $40,000,000 of the Series 2004B variable rate auction reset mode bond
maturities. $32,250,000 of the Series 2004B variable rate auction reset mode bonds was called on February
14, 2008 and the remaining $7,750,000 of these bonds was called on March 20, 2008. The purpose of the
refunding was to current refund all of the Series 2004B auction rate reset mode bonds, due to deteriorating
conditions within the auction rate market. Net proceeds of $40,000,000 were used to provide for the
February 14, 2008 and March 20, 2008 calls for this series. The resulting deferred loss on refunding was not
significant.

C) Collateralization and Debt Reserves

The general receipts bonds and general receipts bond anticipation notes are collateralized by a pledge of
general receipts of the University. The Capital Lease Obligations and Capital Leases (Stetson and Turner) are
secured by base rent payments under the leases. The net book value of assets under Capital Lease
Obligations is $182,966,000. Payment of base rents is subordinate to debt service payments on the University’s
general receipt bonds and bond anticipation notes. Loans Payable – Equipment is collateralized by specified
equipment. At June 30, 2008, the required debt service reserve amounted to $8,679,000. As provided for in
the Amended and Restated Trust Agreement, this reserve is solely for the payment of debt service charges on
the pre-amended bonds, with the exception that excess amounts may be transferred pursuant to Section 4.03 of
the Amended and Restated Trust Agreement

D) Debt Service Commitments

For bonds and notes payable at June 30, 2008, scheduled annual debt service payments subsequent to
June 30, 2008 are as follows (in thousands):

Fiscal
Year Principal Interest Total
2009 $55,760 $ 49,039 $ 104,799
2010 32,520 46,890 79,410
2011 34,955 45,353 80,308
2012 37,985 43,648 81,633
2013 39,455 41,680 81,135
2014-2018 227,505 174,518 402,023
2019-2023 236,905 108,881 345,786
2024-2028 173,060 52,313 225,373
2029-2033 82,480 10,780 93,260
2034 3,055 153 3,208

Total $923,680 $573,255 $1,496,935

The University has $173.3 million of variable rate bonds; all which interest is reset weekly based on the
market with a maximum rate of 12% per year. The interest rate used to determine future interest payments
in the debt service repayment table above is the rate in effect at June 30, 2008 as follows: 9% for the 2004B
variable weekly rate; 10% for the 2007B variable weekly rate; and 3.508% for the portion of Series 2008B
associated with the swap and 1.59% for the portion of Series 2008B not associated with the swap. Series
2004B variable rate bonds were issued in February 2004 and since the date of issuance, the variable weekly
rate has ranged from .87% to 9%. Series 2007B variable rate bonds were issued in January 2007 and since

31
UNIVERSITY OF CINCINNATI JUNE 30, 2008

the date of issuance, the variable weekly rate has ranged from 2.99% to 10%. Series 2008B variable rate
bonds were issued in April 2008; interest rates have ranged from 1.52% to 2.68%.

The Governmental Accounting Standards Board (GASB) requires the disclosure of debt service
requirements to maturity as depicted above, with the interest on variable rate debt being determined by using
the rate in effect at the financial statement date. The University has been exposed to negative market
conditions associated with insured variable rate debt, as the insurers on Series 2004B and 2007B bonds
both had rating downgrades in fiscal year 2008, resulting in interest rates of 9% and 10% respectively being
paid on these issues at the end of June 2008. The University has taken steps subsequent to June 30,
2008, to decrease interest rate exposure on these issues as presented in Section F of this footnote.

Scheduled principal and interest payments on capital lease obligations and loans payable subsequent to
June 30, 2008 are (in thousands):

Fiscal
Year Principal Interest Total
2009 $ 8,795 $ 8,005 $ 16,800
2010 8,825 7,562 16,387
2011 8,199 7,111 15,310
2012 7,701 6,674 14,375
2013 6,932 6,333 13,265
2014-2018 35,586 26,146 61,732
2019-2023 38,025 17,322 55,347
2024-2028 29,665 8,025 37,690
2029-2033 15,065 2,333 17,398
Total $158,793 $89,511 $248,304

E) Defeased Debt

Debt defeased by the University for which amounts remain outstanding at June 30, 2008, is (in thousands):

Maturity Interest Amount

Bond Series Dates Rate(s) Outstanding

Residence Hall and Dining

Facility Bonds:
Series F 1972-2009 5.25% $ 650
General Receipts Bonds:
Series AL-1 2014-2019 5.60-5.75% 2,140
Series AO 2014-2019 5.60-5.75% 4,285
Series AT 2014-2020 5.50-5.75% 325
Series AV 2014-2020 5.50-5.75% 365
Series AZ 2014-2020 5.50-5.75% 850
Series 2001A 2015-2019 5.75% 29,245
Series 2001A 2022-2024 5.25% 24,030
Series 2002F 2016-2020 5.375% 13,010

Total $74,900

Neither the outstanding indebtedness nor the related trust accounts are reflected in the accompanying
financial statements for the fully defeased bonds listed above. United States Treasury obligations in an
amount sufficient to pay principal and interest on the defeased obligations, when due, have been deposited
with a trustee in accordance with the defeasance of the debt.

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UNIVERSITY OF CINCINNATI JUNE 30, 2008

F) Other

Subsequent to June 30, 2008, the University has issued $36 million in Series 2008E BANS to refinance
Series 2007B insured variable rate bonds. Series 2008E was issued at an interest rate of 2.75% and will
mature on July 21, 2009. In addition, the University has amended the Standby Bond Purchase Agreement
(SBPA) associated with the Series 2004B insured variable rate bonds to eliminate the potential of a
termination of the SBPA without notice to the bondholders. Both of these subsequent events have
substantially decreased the interest expense exposure to the University as a result of negative market
conditions relating to insured variable rate debt. In an effort to further improve interest rates, the University
is planning to issue Series 2008F variable rate bonds, which will be secured by a letter of credit that will
refinance the remaining Series 2004B insured variable rate bonds secured by the SBPA.

Interest expense incurred on indebtedness for the years ended June 30, 2008 and 2007, is $41,286,000 and
$40,245,000, respectively. In 2008, interest expense on construction-related debt of $9,246,000, net of
$2,156,000 interest earned on invested funds, was capitalized. In 2007, interest expense on construction-
related debt of $5,727,000, net of $2,125,000 interest earned on invested funds, was capitalized.

G) Long-Term Liability

Long-term liabilities as of June 30, 2008 and 2007 are as follows (in thousands)

Year Ended June 30, 2008

Balance Balance Current Non-current
July 1, 2007 Additions Reductions June 30,2008 Portion Portion

Bonds, notes and capital leases:

Bonds and notes payable $903,845 $267,643 $247,808 $923,680 $55,760 $ 867,920
Certificates of participation 90 - 90 - - -
Loans payable-equipment 6,439 - 1,371 5,068 1,290 3,778
Capital lease obligations 159,515 - 5,790 153,725 7,505 146,220
Premium net of unamortized
costs and loss on refunding 4,444 7,646 3,543 8,547 ___848 7,699
Total bonds, notes and
capital leases 1,074,333 275,289 258,602 1,091,020 65,403 1,025,617
Other long-term liabilities:
Compensated absences 64,108 1,427 2,671 62,864 33,528 29,336
Refundable advances,
federal loans 26,311 18 53 26,276 - 26,276
Other 1,387 - 444 943 500 443
Deposits held in trust for others 10,076 66,911 73,759 3,228 - 3,228
Total other long-term liabilities 101,882 68,356 76,927 93,311 34,028 59,283
Total $1,176,215 $343,645 $335,529 $1,184,331 $99,431 $1,084,900

Year Ended June 30, 2007

Balance Balance Current Non-current
July 1, 2006 Additions Reductions June 30,2007 Portion Portion

Bonds, notes and capital leases:

Bonds and notes payable $ 839,580 $214,235 $149,970 $903,845 $130,725 $773,120
Certificates of participation 180 - 90 90 90 -
Loans payable-equipment 4,616 2,800 977 6,439 1,371 5,068
Capital lease obligations 122,140 42,700 5,325 159,515 5,790 153,725
Premium net of unamortized
costs and loss on refunding 2,951 7,750 6,257 4,444 ___835 3,609
Total bonds, notes and
capital leases 969,467 267,485 162,619 1,074,333 138,811 935,522
Other long-term liabilities:
Compensated absences 66,021 1,181 3,094 64,108 33,941 30,167
Refundable advances,
federal loans 25,987 324 - 26,311 - 26,311
Other 1,814 - 427 1,387 500 887
Deposits held in trust for others 9,187 80,176 79,287 10,076 - 10,076
Total other long-term liabilities 103,009 81,681 82,808 101,882 34,441 67,441
Total $1,072,476 $349,166 $245,427 $1,176,215 $173,252 $1,002,963

33
UNIVERSITY OF CINCINNATI JUNE 30, 2008

8. State Support
The University is a state-assisted institution of higher education and receives from the State of Ohio a state
share of instruction that is student-enrollment based. This subsidy is determined annually by the Ohio Board
of Regents. The State also provides line-item appropriations that support, in part, the current operations of
various activities including clinical teaching expenditures.

In addition to the operating subsidies, the State of Ohio provides funding for and constructs major plant
facilities on the University’s campuses. The state passes a capital-appropriations bill biannually for both
major capital projects and basic renovation projects of which the University receives a share. Such facilities
are reported as capital assets on the Statement of Net Assets.

9. Retirement Plans and Other Post Employment Benefits

Retirement benefits are available for substantially all employees under one of several contributory retirement
plans. Prior to July 1, 1977, when the University became a state institution, employees were covered by
either the City of Cincinnati Retirement System (CRS) or the Teachers’ Insurance and Annuity Association -
College Retirement Equities Fund (TIAA-CREF). Certified teachers appointed on or after July 1, 1977, are
covered by the State Teachers’ Retirement System (STRS). Non-certified employees appointed on or after
that date are covered by the Ohio Public Employees Retirement System (OPERS). Both STRS and OPERS
are statewide systems that offer three separate plans: 1) a defined benefit plan, 2) a defined contribution
plan and 3) a combined plan. Each of the three options is discussed in greater detail in the following
sections.

A) Defined Benefit Plans

The OPERS, STRS and CRS plans are cost-sharing, multiple-employer, defined-benefit, public-employee
retirement systems. Each provides retirement, disability and death benefits to plan members and
beneficiaries. These plans also provide health-care benefits to vested retirees. Benefits provided under the
plans are established by State statute or the Cincinnati Municipal Code.

All three plans issue separate, publicly available financial reports that include financial statements and
required supplementary information. These reports may be obtained by contacting each system as follows:
Public Employee Retirement System of Ohio, 277 East Town Street, Columbus, Ohio 43215, Telephone
(614) 466-2085; State Teachers Retirement System of Ohio, 275 East Broad Street, Columbus, Ohio 43215,
Telephone (614) 227-4090; and City of Cincinnati Retirement System, 801 Plum Street, Cincinnati, Ohio
45202, Telephone (513) 352-3227.

The Ohio Revised Code and the Cincinnati Municipal Code provide OPERS, STRS and CRS statutory
authority, respectively, over employer and employee contributions. The required, actuarially determined
contribution rates for the University and for employees are 14% (7% relating to health-care benefits) and
10% of covered payroll, respectively, for OPERS; 14% (1% relating to health-care benefits) and 10%,
respectively, for STRS; and 17% and 7%, respectively, for CRS for the year ended June 30, 2008. The
University’s contributions, representing 100% of employer contributions for the year ended June 30, 2008,
and for each of the two preceding years are as follows (in thousands):

Fiscal Year PERS $ STRS $ CRS $

2006 19,811 16,417 361
2007 20,318 17,618 506
2008 20,155 15,417 278

OPERS and STRS provide postretirement and postemployment health-care benefits in addition to the
retirement benefits described above. OPERS Other Post Employment Benefits (OPEB) is advance funded
on an actuarially determined basis. The assumptions and calculations below were based on the system’s
latest actuarial review performed as of December 31, 2006. An entry-age normal actuarial-cost method of
valuation is used in determining the present value. The difference between assumed and actual experience
(actuarial gains and losses) becomes part of unfunded actuarial accrued liability. All investments are carried
at market value. For valuation purposes, a smoothed market approach is used. Under this approach assets
are adjusted annually to reflect 25% of unrealized market appreciation or depreciation on investment assets

34
UNIVERSITY OF CINCINNATI JUNE 30, 2008

not to exceed a 12% corridor. The actuaries’ assumptions were as follows: investment return, 6.5%; annual
wage increase (compounded annually), 4%; and health care costs, 4%. At December 31, 2006, the actuarial
value of the Retirement System’s net assets available for OPEB was $12 billion. The actuarially accrued
liability and the unfunded actuarial accrued liability, based on the actuarial cost method used, were $30.7
billion and $18.7 billion, respectively. There are 374,979 active contributing participants. Of the
$20,155,000 University employer contributions to OPERS for 2008, $10,078,000 was to fund OPEB.

STRS has discretionary authority, pursuant to the Ohio Revised Code, over how much, if any, of the health-
care costs will be absorbed by STRS. All benefit recipients are required to pay a portion of the health-care
cost in the form of a monthly premium. The balance in the Health Care Reserve Fund was $4.1 billion at
June 30, 2007 (the latest information available). For the year ended June 30, 2007, the net health-care
costs paid by STRS were $265,558,000. There were 122,934 eligible benefit recipients.

In addition to the pension benefits described above, the University provides postretirement health-care and
dental benefits (under its labor agreement with the American Association of University Professors) to all who
are participants of TIAA-CREF when they retire. During 2007, 2006, and 2005 the net cost of these benefits
recorded on a pay-as-you-go basis totaled approximately $3,010,000, $2,961,000, and $2,945,000,
respectively.

B) Defined Contribution Plans

On June 23, 1998, pursuant to Ohio House Bill 586, the University created an Ohio Alternative Retirement
Plan (ARP), which is designed to aid the University in recruiting and retaining employees by offering a
portable retirement option. The ARP is a defined-contribution plan that provides full and immediate vesting
of all contributions made on behalf of the participant. Contributions are directed to one of eight investment
management companies, which allows the participant to manage the investment of all retirement funds.
New employees who qualify for the ARP have 90 days from the date of hire to elect the ARP option. Once
this window has passed, the employee will not have the option to elect into the ARP.

At June 30, 2008, there were 1,889 members of the plan. During 2008, 2007, and 2006 the employer
contributions were $13,730,000, $13,418,000, and $11,310,000, respectively. The employer contribution
rate was 13.77% for participants electing out of OPERS during 2007. Effective January 1, 2008 the employer
contribution rate increased to 14%. The employer contribution rate for participants electing out of STRS was
14.00% for both 2008 and 2007.

C) Combined Plans

STRS offers a combined plan with features of both a defined contribution plan and a defined benefit plan. In
the combined plan, employee contributions are invested in self directed investments, and the employer
contribution is used to fund a reduced defined benefit. Employees electing the combined plan receive
postretirement health care benefits.

OPERS also offers a combined plan. This is a cost-sharing multiple-employer defined benefit plan that has
elements of both a defined benefit and defined contribution plan. In the combined plan, employee
contributions are invested in self directed investments, and the employer contribution is used to fund a
reduced defined benefit. Employees electing the combined plan receive postretirement health care benefits.
OPERS provides retirement, disability, survivor and postretirement health benefits to qualifying members of
the combined plan.

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UNIVERSITY OF CINCINNATI JUNE 30, 2008

10. 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 98,845

Total $1,202,523 $1,265,492

2008 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 1,562

Total $ 391,590 $ 413,063

11. 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.

12. 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.

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UNIVERSITY OF CINCINNATI JUNE 30, 2008

Hospital revenues and expenditures are recorded by the Alliance. The University has reported its pro rata share
($14,149,000 and $50,658,000 for the years ended June 30, 2008 and 2007, respectively) of the Alliance’s
increase in unrestricted net assets as part of the change in the fair value of investments as included in the
accompanying financial statements.

The University provides various shared services, consisting mainly of security and various administrative
services, to the Alliance for which the University is reimbursed on a cost basis. The total cost of these services
for the years ended June 30, 2008 and 2007 were approximately $4,810,000 and $4,695,000, respectively.

In response to The Christ Hospital’s expressed intent to withdraw from the Alliance, the Alliance initiated
litigation (The Health Alliance of Greater Cincinnati v. The Christ Hospital, et al. (Case No. A0601969)) on
March 1, 2006 in the Court of Common Pleas of Hamilton County, Ohio (the “Court of Common Pleas”) to
obtain a declaratory judgment that there were no circumstances that would permit The Christ Hospital to
withdraw from the Alliance. St. Luke Hospital joined the suit as a defendant in order to obtain an adjudication of
whether it was permitted to withdraw from the Alliance. On April 16, 2007, the Court of Common Pleas made a
post-trial entry following a bench trial that The Christ Hospital and St. Luke Hospital had the right to terminate
the contractual relationship with the Alliance. The Alliance appealed from the trial court’s judgment. On
September 30, 2008 the Ohio First District Court of Appeals sustained the judgment of Judge Nelson.

In the final judgment entry on June 13, 2007, the Common Pleas Court denied the request of The Christ
Hospital and St. Luke Hospital to dissolve the Alliance and ordered an accounting for the purpose of
determining, among other things, the value of the respective interests of The Christ Hospital and St. Luke
Hospital under the Joint Operating Agreement in anticipation of their departure from the Alliance. In addition, on
July 31, 2007, The Christ Hospital and St. Luke Hospital filed an action in the Court of Common Pleas seeking
to dissolve the Alliance and asking that a receiver be appointed to oversee the break-up. On February 19,
2008, the Court granted summary judgment to the Alliance holding that the Alliance was not required to
dissolve. The Christ Hospital and St. Luke Hospital subsequently amended the complaint and are now seeking
damages in the amount they otherwise would have received in dissolution in lieu of actual dissolution.

The effect of the denial of the appeal on the University is difficult to ascertain with certainty. Under the Joint
Operating Agreement, the possibility exists that the Alliance will be required to pay certain amounts to the
departing members or that such departing members may be required to make payments to the Alliance. The
report of an independent consultant ordered by the Court of Common Pleas indicates that payments by the
Alliance to at least one departing member would be required. The Court of Common Pleas has not made any
further rulings with respect to the report.

In early September 2008, St. Luke Hospital and the Alliance reached an agreement in principal to allow St. Luke
Hospital to withdraw from the Alliance and dismiss all pending action by St. Luke Hospital against the Alliance
and remaining Participating Entities. On September 23, 2008, the University of Cincinnati received approval
from its Board of Trustees for delegation of authority to approve final separation agreements for the termination
of St. Luke Hospital in The Health Alliance and to approve amendments to the Joint Operating Agreement to
reflect the departure of St. Luke Hospital as a participating entity. St. Luke Hospital had a 12.8% share in the
Alliance.

A trial date of January 20, 2009 has been set to address The Christ Hospital’s claim for damage in lieu of
dissolving the Health Alliance. Meanwhile, a mediator has been assigned to the case.

In addition, a number of factors may result in a diminution of the demand for services by the Alliance and its
remaining members, including the University, and may result in a reduction of clinical training opportunities for
students in the University’s College of Medicine. Pursuant to the Operating and Affiliation Agreement between
the Alliance and the University dated January 25, 2006, the Alliance provides financial support to the University
for academic programs that directly or indirectly support patient care at the University Hospital or the Alliance.
The Alliance also pays the University an annual education and research payment that must be used exclusively
for Academic Health Center purposes. The total of these payments for the years ended June 30, 2008 and
2007 were $9,084,000 and $9,038,000, respectively. Currently, the University is unable to determine whether
and to what extent, if any, the receipt of such amounts in the future could be materially and adversely affected.
The ultimate result of the current litigation, as well as the financial and operational effects thereof on the
University, is extremely difficult to quantify or assess until such litigation is resolved. Accordingly, no amounts
have been reflected in the accompanying financial statements for this litigation.

37
UNIVERSITY OF CINCINNATI JUNE 30, 2008

13. Capital Project Commitments

At June 30, 2008, the University is committed to future capital expenditures as follows (in thousands):

Contractual commitments $ 23,080

Estimated completion costs of projects 232,392
Total $255,472

These projects are being funded through various resources, including the State of Ohio, as follows (in
thousands):

Approved state appropriations requested and released

as of June 30, 2008 $ 176
Approved state appropriations not yet requested 5,287
University funded prior to June 30, 2008 47,908
Funds to be provided subsequent to June 30, 2008, from
various available sources 202,101
Total $255,472

The $202,101,000 of funding to be provided subsequent to June 30, 2008 will come from state funds, debt, and
University funds.

14. Self-Insurance Funds

The University currently provides for medical professional and general liability insurance through a combination
of an actuarially funded self-insurance program sponsored by the University and purchased commercial
insurance in excess of the self-insurance amount. The medical professional liability insurance program also
includes several qualified not-for-profit departmental (physician) practice corporations. Medical professional
self-insurance limits were $4 million per occurrence for 2008. An additional $15 million in commercial excess
professional liability insurance was provided above the self-insured retention.

General liability coverage is also provided as part of a group insurance program of Ohio state universities known
as the Inter-University Council of Ohio Insurance Consortium (IUC-IC). This program provided for $1 million
retention per occurrence with the first $100,000 funded by UC, and the remaining $900,000 funded by pool
funds held through the IUC. Excess commercial coverage for general liability was provided with total limits of
$50 million, of which $45 million was shared with the other participating universities. In addition, educators’ legal
liability coverage was provided through the IUC program with $25 million in total limits, of which $20 million was
shared among the participating institutions. The IUC-IC self-insurance pools are funded by an agreed formula
among the participating universities.

The University’s self-insurance program is based on calculations by independent actuaries and funds are
deposited directly into two irrevocable self-insurance trust funds, one for medical and professional liability and
one for general liability. In the opinion of management, trust assets totaling approximately $28,199,000 are
adequate to cover estimated liabilities resulting from known claims and incidents and incurred-but-not-reported
incidents as of June 30, 2008.

Property insurance is also provided through the IUC-IC program, consisting of commercial property insurance
with a $350,000 retention, and a self-insurance pool to fund losses between $100,000 and $350,000.

The University is also self-insured for a portion of medical and dental benefits provided to employees beginning
in fiscal year 2007 with the addition of self-insured prescription benefits during fiscal year 2008. The cost of
such self-insured benefits provided during 2008 and 2007, respectively, was approximately $63,290,000 and
$36,022,000, including $5,313,000 and $5,202,000 accrued for estimated claims incurred but not reported.

38
UNIVERSITY OF CINCINNATI JUNE 30, 2008

15. Commitments and Contingencies

The University is currently a defendant in various legal actions. Additional legal action regarding The Alliance of
Greater Cincinnati but not involving the University could negatively affect a portion of the education and
research payment received from the Alliance. Although the final outcome of such actions cannot currently be
determined, the University's administration is of the opinion that the eventual liability, if any, will not have a
material effect on the financial position or operations of the University.

The University receives grants and contracts from certain federal, state and local agencies to fund research and
other activities. The costs, both direct and indirect, that have been charged to the grants or contracts are
subject to examination and approval by the granting agency. It is the opinion of management that any
disallowance or adjustment of such costs would not have a material effect on the financial statements.

In 2005 the Department of Education conducted a program audit of certain aspects of the University’s Student
Financial Aid Program. As a result of various findings of the Department of Education, the University has
estimated a liability to the Department of Education approximating $13,900,000.

The University’s utility plant is exposed to market price fluctuations on its purchase of natural gas. Purchase
commitments have been issued with certain suppliers of natural gas whereby the University has locked into the
price of natural gas for specified amounts to stabilize costs.

16. University of Cincinnati Foundation

The University of Cincinnati Foundation is a legally separate, tax-exempt component unit of the University.
The principal function of the Foundation is to solicit, reserve, hold, invest and administer funds and to make
distributions to or for the benefit of the University. Since these resources held by the Foundation can be used
only by or for the benefit of the University, the Foundation is considered a component unit of the University and
is discretely presented in the University’s financial statements.

Accounts of the Foundation have been consolidated in the accompanying financial statements in accordance
with generally accepted accounting principles for not-for-profit organizations. Pledges receivable for the benefit
of the University totaling $11,095,000 in 2008 and $12,388,000 in 2007, and funds held in trust by the
Foundation for the University of $224,061,000 in 2008 and $224,903,000 in 2007, have been recorded by the
University and have, therefore, been eliminated from the amounts reported for the Foundation as of June 30,
2008 and 2007. Of these amounts, $202,068,000 and $203,257,000 has been invested as of June 30, 2008
and 2007, respectively, in the University endowment pool investment pool.

A) Cash & Cash Equivalents

The carrying amount of the Foundation’s cash and cash equivalents is $14,160,000 as compared to bank
balances of $14,213,000. The difference between the carrying amounts and the bank balances is caused
primarily by deposits in transit and outstanding checks.

Of the Foundation’s bank balances, $994,000 is covered by federal depository insurance, $11,280,000 is
uninsured and mutual funds hold $1,939,000 in cash equivalents.
B) Investments

The fair value of investments at June 30 is (in thousands):

2008 2007
U. S. government and treasury securities $ 4,605 $ 4,472
Corporate bonds 4,280 5,498
Mutual funds 5,948 8,574
Other securities 818 967
Total investments $15,651 $19,511

39
UNIVERSITY OF CINCINNATI JUNE 30, 2008

GASB Statement 40 requires government entities to categorize investments of interest rate risk, credit risk, and
custodial risk.

Interest Rate Risk

The Foundation’s investments total $15,651,000 and $19,511,000 as of June 30, 2008 and 2007 respectively.
The segmented time distribution method is used to portray interest rate risk for $14,818,000 and $17,515,000 of
bond and other fixed income investments as of June 30, 2008 and 2007, respectively. Investments for the
years ended June 30, 2008 and 2007 are summarized as follows (in thousands):

Investment Maturities (In Years) 2008

Investment Type Fair Value Less than 1 1–5 6 – 10 More than 10

U.S. Treasury Obligations $ 2,023 $ 1,006 $ 446 $ 571 $ -

U.S. Government Agency 2,582 567 323 709 983
Obligations
Municipal Obligations 60 - - 21 39
Corporate Bonds 4,280 1,830 1,569 869 12
Bond Mutual Funds 5,873 - 530 4,448 895
Total Investments $14,818 $ 3,403 $ 2,868 $ 6,618 $ 1,929

Investment Maturities (In Years) 2007

Investment Type Fair Value Less than 1 1–5 6 – 10 More than 10

U.S. Treasury Obligations $ 1,270 $ 209 $ 219 $ 842 $ -

U.S. Government Agency 3,202 1,196 661 601 744
Obligations
Municipal Obligations 77 - - 21 56
Corporate Bonds 5,498 2,453 2,350 663 32
Bond Mutual Funds 7,468 - 1,151 6,117 200
Total Investments $17,515 $ 3,858 $ 4,381 $ 8,244 $ 1,032

The Foundation does not have a policy for interest rate risk.

Credit Risk – Bond and other fixed income investments are rated by nationally recognized rating organizations
as follows, as of June 30 (in thousands):

2008 2007
U.S. Treasury Obligations $ 2,023 $ 1,270
AAA 6,577 8,397
AA/Aa 2,423 4,063
A/A-1 2,799 3,091
BBB/Baa 76 157
BB - 507
B 496 -
Not Rated 424 30
Total $14,818 $17,515

Foundation investment grade bonds are limited to those in the first four grades of any rating system. The
average rating of the portfolio of investment grade bonds must be in the top two grades of any rating system.
Limited investments having strategic value to the University are permitted.

40
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.

41
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures
STUDENT FINANCIAL AID CLUSTER
STUDENT FINANCIAL AID - DIRECT
Department of Education
Office of Student Financial Assistance 84.007 USED SEOG-RWC P007A0 1,047,400.00
Office of Student Financial Assistance 84.007 USED SEOG P007A07 379,259.38
Office of Student Financial Assistance 84.007 USED SEOG-CLR P007A0 759,508.00
Office of Student Financial Assistance 84.007 USED SEOG P007A06 -1,415.00
Office of Student Financial Assistance 84.033 USED FWS-MAINP033A07 1,551,587.41
Office of Student Financial Assistance 84.033 USED FWS-JL&DP033A07 53,472.09
Office of Student Financial Assistance 84.033 USED FWS-RWC P033A07 22,356.06
Office of Student Financial Assistance 84.033 USED FWS-CLR P033A07 60,207.06
Office of Student Financial Assistance 84.033 USED FWS-READP033A07 64,618.42
Office of Student Financial Assistance 84.033 USED FWS-MAINP033A05 -58.21
Office of Student Financial Assistance 84.033 USED FWS-CLR P033A06 1,210.86
Office of Student Financial Assistance 84.033 USED FWS-RWC P033A06 -1,010.56
Office of Student Financial Assistance 84.033 USED FWS-READP033A06 -1,148.00
Office of Student Financial Assistance 84.033 USED FWS-MAINP033A06 28,480.30
Office of Student Financial Assistance 84.063 USED PELL-CLR P063P0 3,082,042.63
Office of Student Financial Assistance 84.063 USED ACG P375A072017 807,443.69
Office of Student Financial Assistance 84.063 USED SMART P376S0720 342,869.00
Office of Student Financial Assistance 84.063 USED SMART P376S0620 9,334.00
Office of Student Financial Assistance 84.063 USED PELL P063P07 11,741,132.88
Office of Student Financial Assistance 84.063 USED PELL-RWC P063P0 3,437,310.00
Office of Student Financial Assistance 84.063 USED ACG P375A062017 2,367.00
Office of Student Financial Assistance 84.063 USED PELL P063P05 -27.32
Office of Student Financial Assistance 84.063 USED PELL P063P06 671,693.94
TOTAL DEPARTMENT OF EDUCATION 24,058,633.63
TOTAL STUDENT FINANCIAL AID - DIRECT CLUSTER 24,058,633.63
TOTAL STUDENT FINANCIAL AID CLUSTER 24,058,633.63
RESEARCH AND DEVELOPMENT CLUSTER
RESEARCH AND DEVELOPMENT - DIRECT
Department of Agriculture
Agricultural Research Service 10.001 USDA/CSREES Nat Res 168,848.43
Cooperative State Research, Education, and Extension Service 10.206 USDA 02-35200-12313 -4,855.03
Cooperative State Research, Education, and Extension Service 10.206 USDA 58-3148-5-046 3,732.20
Cooperative State Research, Education, and Extension Service 10.206 USDA 02-35200-12235 -12,256.98
Cooperative State Research, Education, and Extension Service 10.206 USDA 2006-35320-1656 97,395.63
TOTAL DEPARTMENT OF AGRICULTURE 252,864.25
Department of Commerce
National Institute of Standards and Technology 11.609 NIST RA134106SE5451 9,999.99

42
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Institute of Standards and Technology 11.609 NIST RA134107SE5312 14,550.21

National Institute of Standards and Technology 11.609 NIST IPA #IP0509 18,553.50
National Institute of Standards and Technology 11.609 NIST RA134105SE669 170.83
TOTAL DEPARTMENT OF COMMERCE 43,274.53
Department of Defense
Army Research Office 12.431 ARMY W911NF-06-1-029 74,227.26
Army Research Office 12.431 ARMY-DAAD19-02-1-022 40,912.50
Army Research Office 12.431 ARMY-DAAD19-02-1-022 169,437.12
Army Research Office 12.431 ARMY-DAAD19-02-1-022 -8,604.58
Army Research Office 12.431 DAAD19-03-1-0101 ARMY -23,331.30
Army Research Office 12.431 ARMY-DAAD19-02-1-022 48,314.80
Defense Advanced Research Projects Agency 12.910 ARMY W9132T-06-2-001 74,961.74
Department of Army 12.420 DAMD17-02-1-0342 ARM 43,562.56
Department of Army 12.420 W81XWH-06-1-0098 Arm 15,477.28
Department of Army 12.420 ARMY W81XWH-04-1-049 -5,911.97
Department of Army 12.420 ARMY W81XWH-05-2-008 26,636.51
Department of Army 12.420 DAMD17-03-1-0614 ARM -2,569.04
Department of Army 12.420 ARMY-W81XWH-04-1-032 81.06
Department of Army 12.420 ARMY W81XWH-07-2-002 258,410.45
Department of Army 12.420 ARMY W81XWH-05-1-023 514,390.84
Department of Army 12.420 ARMY W81XWH-07-2-003 23,644.59
Department of Army 12.420 ARMY W81XWH-06-1-035 103,832.80
Department of Army 12.420 ARMY W81XWH-06-2-001 204,023.67
Department of Army 12.420 ARMY W81XWH-06-1-037 49,870.84
Department of Army 12.420 ARMY W81XWH-06-10433 215,862.35
Department of Army 12.420 ARMY DAMD W81XWH-06- 145,941.41
Department of Army 12.420 ARMY W81XWH-06-1-037 40,042.10
Department of Army 12.420 Army W81XWH-07-10045 34,880.31
Department of Army 12.420 ARMY W81XWH-06-2-001 257,470.44
Department of Defense 12 ARMY W911NF-07-1-022 205,683.27
Department of Defense 12 ARMY W81XWH-05-1-041 7,236.00
Department of Defense 12 ARMY W912HZ-07-P0425 5,952.91
Department of Defense 12 ARMY W81XWH-04-1-018 -2,633.24
Department of Defense 12 AIR FORCE-WPAFB-IPA 4,958.92
Department of Defense 12 ARMY TATRC IPA 79,485.12
Department of Defense 12 USAF/AFMC FA8650-07- 155,130.04
Department of Defense 12 NATL SEC AGY/MDA904- -0.06
Department of Defense 12 ARMY W81XWH-07-2-003 391,011.59
Department of Defense 12 ARMY W81XWH-04-C-000 -938.74
Department of Defense 12 DACA72-03-C-0019 ARM -32,007.68
Department of Defense 12 ARMY DAAG55-98-1-021 -23.65
Department of Defense 12 ARMY W912HZ-06-P-035 34,605.10
Department of Defense 12 ARMY-CERL/DACA88-97- -96.69

43
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

Department of Defense 12 ARMY TATRC IPA 16,179.44

Department of Defense 12 W81XWH-06-1-0635 Evo 144.18
Department of Defense 12 ARMY W81XWH-06-2-001 313,956.04
Department of Defense 12 ARMY W912HQ-08-P-001 28,702.82
Department of Defense 12 ARMY W81XWH-06-1-017 95.02
Department of Defense 12 ARMY W81XWH-06-1-008 1,404.58
Department of Defense 12.351 HDTRA1-08-1-0012 Dep 44,598.82
Department of the Air Force 12.800 AIR FORCE/F33615-2-1 -1,256.33
Department of the Air Force 12.800 AFOSR FA9550-07-1-00 76,796.22
Department of the Air Force 12.800 AFOSR FA9550-07-1-02 214,364.73
Department of the Air Force 12.800 AFOSR FA9550-05-1-01 -4.57
Department of the Air Force 12.800 AFOSR FA9550-07-1-02 11,085.20
Department of the Air Force 12.800 AF F33615-03-2-5210 43,450.67
Department of the Air Force 12.800 AF FA9550-05-1-0386 21,277.96
National Security Agency 12.901 NSA H98230-07-1-0016 20,969.27
Office of Naval Research 12.300 ONR N00014-07-1-0425 47,641.93
Office of Naval Research 12.300 ONR N00014-06-1-1147 19,521.63
Office of Naval Research 12.300 ONR N00014-04-1-0059 26,440.39
Office of Naval Research 12.300 ONR N00014-06-1-0517 123,564.59
Office of Naval Research 12.300 ONR N00014-04-1-0229 37,424.60
Office of Naval Research 12.300 ONR N00173-07-1-G009 182,314.84
Office of Naval Research 12.300 ONR N00014-03-1-0706 585.23
Office of Naval Research 12.300 ONR N00014-05-1-0436 -21,539.86
Office of Naval Research 12.300 ONR N00014-07-1-0635 29,278.76
Office of Naval Research 12.300 ONR N00014-07-1-0438 94,018.85
TOTAL DEPARTMENT OF DEFENSE 4,480,941.64
Department of Energy
Department of Energy 81 DOE IPA JOHNSON Offi 162,962.32
Office of Energy & Renewable Energy 81.087 GO DE-FG36-05GO15043 129,883.53
Office of Energy & Renewable Energy 81.087 GO DE-FG36-05GO15043 83,837.74
Office of Energy & Renewable Energy 81.087 GO DE-FG36-05GO15043 74,181.42
Office of Fossil Energy 81.057 NETL DE-FG26-03NT417 41,468.54
Office of Fossil Energy 81.057 DOE DE-FG26-06NT42 20,819.52
Office of Fossil Energy 81.057 DOE DE-FG26-06NT42 13,793.12
Office of Fossil Energy 81.089 NETL DE-FC26-04NT422 148,595.54
Office of Nuclear Energy 81.114 ID DE-FG07-07ID14772 37,895.01
Office of Nuclear Energy 81.114 ID DE-FG07-02ID14352 9,051.90
Office of Nuclear Energy 81.114 ID DE-FG07-01ID14161 3,577.00
Office of Nuclear Energy 81.121 DE-FC07-05-ID14653 96,600.53
Office of Nuclear Energy 81.121 DE-FC07-07ID14839 147,941.41
Office of Nuclear Energy 81.121 CH DE-FG07-07ID14876 87,461.01
Office of Science 81.049 DOE CH DE-FG02-07ER4 5,772.61
Office of Science 81.049 DOE DE-FC02-06ER2579 173,494.86

44
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

Office of Science 81.049 CHI DE-FG02-84ER4015 299,677.25

Office of Science 81.049 DOE DE-FG02-04ER1560 182,229.69
Office of Science 81.049 CH DE-FG02-03ER63655 26,857.87
Office of Science 81.049 CH DE-FG02-84ER40153 233,447.72
Office of Science 81.049 DOE DE-FG02-04ER4612 59,570.95
Office of Science 81.049 CH DE-FG02-07ER64353 124,667.80
Office of Science 81.049 DOE DE-FC02-06ER2579 23,689.45
Office of Science 81.049 DE-FC01-06EH06002 45,451.51
TOTAL DEPARTMENT OF ENERGY 2,232,928.30
Department of Health and Human Services
Administration for Children and Families 93.600 DHHS Head Start 90YP0044/01 113,556.67
Administration for Children and Families 93.600 DHHS ACF 90YD0129/04 -11,449.73
Administration for Children and Families 93.600 DHHS ACF 90YD0191/01 -2,362.89
Administration for Children and Families 93.600 USDHHS 90YD0191 HEAD 115,461.85
Administration for Children and Families 93.600 USDHHS 90YD0191/02 2,773.65
Agency for Healthcare Research and Quality 93.226 5 T73 MC00032-15 (MC -1,357.88
Agency for Healthcare Research and Quality 93.226 5 K08 HS013914-02 29,634.64
Agency for Healthcare Research and Quality 93.226 5 K08 HS013914-03 90,377.13
Agency for Healthcare Research and Quality 93.226 1 K08 HS013914-011A2 -934.87
Bureau of Health Professions 93.358 2 A10HP00227-08-00 76,228.00
Bureau of Health Professions 93.984 5 D54HP000168-05-00 19,084.84
Centers for Disease Control and Prevention 93.136 R49 CCR523225-03 -6.29
Centers for Disease Control and Prevention 93.136 R49 CCR523225-03 12,665.89
Centers for Disease Control and Prevention 93.136 R49 CCR523225-03 -0.01
Centers for Disease Control and Prevention 93.161 U50/ATU573006-03 (AT -39,614.13
Centers for Disease Control and Prevention 93.161 U50 ATU573006-01 0.70
Centers for Disease Control and Prevention 93.161 5 U50 ATU573006-02 -183.00
Centers for Disease Control and Prevention 93.197 CDC 254-2007-M-19455 8,044.55
Centers for Disease Control and Prevention 93.197 CDC 254-2006-M-15577 1,058.17
Centers for Disease Control and Prevention 93.197 CDC 200-98-7010 797.48
Centers for Disease Control and Prevention 93.197 CDC PO 2511-2006-M-1 4,856.68
Centers for Disease Control and Prevention 93.197 CDC 211-2007-M-19263 6,114.02
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-03 2,535.15
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 -155.25
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 534.09
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 -274.29
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 -547.13
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 -17.58
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 -5.03
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 -240.10
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 0.02
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 11.00
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 -6,015.49
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-03 5,858.89
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-03 4,720.00
Centers for Disease Control and Prevention 93.946 5 U01 DP000188-04 22,912.32
Centers for Disease Control and Prevention 93.946 5 U01 DP000188-03 331,284.76
Centers for Disease Control and Prevention 93.946 5 U01 DP000188-02 -8,233.98
Department of Health and Human Services 93 NIOSH PO# 212-2004-M -0.22
Department of Health and Human Services 93 CDC 212-2005-M-11911 1,196.81
Department of Health and Human Services 93 1U54EB007954-01 Core 85,854.10
45
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures
Department of Health and Human Services 93 CDC PO# 212-2005-M-1 843.89
Department of Health and Human Services 93 DHHS / NIH National 104.58
Department of Health and Human Services 93 CDC 211-2004-M-10217 0.02
Department of Health and Human Services 93 CDC 211-2007-M-23297 9,466.14
Department of Health and Human Services 93 N01DA-9-8095 / # 5 ( 41,931.08
Department of Health and Human Services 93 N01-WH-4-2126-12,13, 141,990.40
Department of Health and Human Services 93 N01-HD-4-3377 HHSN27 23,072.69
Department of Health and Human Services 93 N01DA-9-8095 / # 5 ( 423,129.49
Department of Health and Human Services 93 N01-HB-47171 296,065.86
Department of Health and Human Services 93 N01-HD-4-3377 HHSN27 140,704.17
Department of Health and Human Services 93 N01-AI-25467 482,337.98
Department of Health and Human Services 93 CDC PO# 211-2006-M- 279.83
Department of Health and Human Services 93 N01-AR-2-2264 -9,144.75
Department of Health and Human Services 93 N01-HD-4-3377 HHSN27 330,559.56
Department of Health and Human Services 93 CDC 211-2007-M-22637 15,418.32
Environmental Protection Agency 93.061 5 R01 DP000113-03 Pa 5,457.81
Environmental Protection Agency 93.061 5 R01 DP000113-03 Pa 71,992.01
Food and Drug Administration 93.103 1 R01 FD003362 - 01, 40,002.59
Food and Drug Administration 93.103 FD-R-00672-13,14,15 30,677.21
Health Resources and Services Administration 93.110 90DD0546/04 15,173.94
Health Resources and Services Administration 93.110 4 T73 MC00032-16-01 775,528.39
Health Resources and Services Administration 93.110 90DD0638/01 (UCDD Pr 351,380.67
Health Resources and Services Administration 93.110 90DD0546/03 -93.40
Health Resources and Services Administration 93.110 90DD0546-05 (UCDD Pr 170,473.52
Health Resources and Services Administration 93.124 1 A22HP08247-01-00 " 14,849.00
Health Resources and Services Administration 93.178 5 D19 HP40540-03-00 15,236.81
Health Resources and Services Administration 93.365 HRSA-5U1EMC07655-02 238,000.59
Health Resources and Services Administration 93.365 HRSA-U1EMC07655-01 120,391.97
Health Resources and Services Administration 93.884 1 D58 HP 00368-02 -72.55
Health Resources and Services Administration 93.884 5 D54HP00168-06-00 39,687.01
Health Resources and Services Administration 93.884 5 D54HP000168-06-00 71,221.46
Health Resources and Services Administration 93.884 5 D54HP00168-05-00 23,061.83
Health Resources and Services Administration 93.888 NLM PO#467-MZ-700887 9,999.96
Health Resources and Services Administration 93.888 NLM PO#467-MZ-700887 9,000.00
Health Resources and Services Administration 93.888 NLM PO# 467-MZ-50063 -1,382.80

46
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

Health Resources and Services Administration 93.925 2 T08HP04913-03 61,874.00

Health Resources Services Administration 93.247 1 D09HP07991-01-00 242,525.60
Health Resources Services Administration 93.247 5 D09 HP03559-03-02 21,233.75
Health Resources Services Administration 93.247 1 D09 HP00338-03 -134.92
Health Resources Services Administration 93.247 5 D09 HP05327-03-00 259,210.24
Health Resources Services Administration 93.247 1 D09HP05327-02-00 A 811.32
National Cancer Institute 93.393 5 P01 CA096964-02 -0.01
National Cancer Institute 93.393 5 P01 CA096964-05 329,837.37
National Cancer Institute 93.393 5 P01 CA096964-05 130,984.93
National Cancer Institute 93.393 7 R21 ES0123071 - 03 138,740.93
National Cancer Institute 93.393 5 R01 CA015776-26,27 362,693.18
National Cancer Institute 93.393 1R01CA122346-01A1 233,151.74
National Cancer Institute 93.393 5 P01 CA096964-05 444,819.38
National Cancer Institute 93.393 5 P01 CA096964-05 16,421.40
National Cancer Institute 93.393 5 R01 CA62269-11 211,955.52
National Cancer Institute 93.393 2 U01 CA76293-06A2 114.74
National Cancer Institute 93.393 5 U01 CA76293-07 180,288.78
National Cancer Institute 93.393 5 P01 CA096964-05 145,550.54
National Cancer Institute 93.393 5 P01 CA096964-05 88,338.46
National Cancer Institute 93.393 5 R21 CA119006-01A1 176,045.77
National Cancer Institute 93.393 8 RCA112532-1,2,3 257,658.41
National Cancer Institute 93.393 5 R01 CA097099-02-05 225,960.41
National Cancer Institute 93.393 5 R01 CA94221-04 16.67
National Cancer Institute 93.393 5 P01 CA096964-05 265,792.24
National Cancer Institute 93.393 1 U01 CA120475-01A1 200,342.78
National Cancer Institute 93.393 5 R01 CA94221-03S1 38.38
National Cancer Institute 93.393 2 U01 CA076293-08 104,601.28
National Cancer Institute 93.393 2 U01 CA076293-08 469,229.67
National Cancer Institute 93.393 5 P01 CA096964-04 -22.17
National Cancer Institute 93.393 5 P01 CA096964-04 237.61
National Cancer Institute 93.393 5 P01 CA096964-04 23,164.80
National Cancer Institute 93.393 5 U01 CA120475-01A1 95,762.56
National Cancer Institute 93.393 5 P01 CA096964-04 125,008.64
National Cancer Institute 93.393 5 P01 CA096964-05 106,873.36
National Cancer Institute 93.393 5 R01 CA90934-01,02 23,159.88
National Cancer Institute 93.393 2 U01 CA076293-07 8,560.29
National Cancer Institute 93.393 1 P01 CA096964-01 -62.05
National Cancer Institute 93.393 5 R01 CA112570-01-03 305,303.93
National Cancer Institute 93.393 2 U01 CA076293-07 206,584.70
National Cancer Institute 93.393 5 P01 CA096964-04 271.20
National Cancer Institute 93.393 5 P01 CA096964-04 12,268.29
National Cancer Institute 93.393 2 R01 CA90522-07A1 52,372.22
National Cancer Institute 93.393 5 R01 CA095925-01,02 611.81

47
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Cancer Institute 93.393 5 P01 CA096964-05 27,317.30

National Cancer Institute 93.394 5 R24 CA095784-01,02 154,805.32
National Cancer Institute 93.395 5 R01CA099996 YR 1-5 81,210.47
National Cancer Institute 93.395 NCI 263-MQ-605827 -2,829.22
National Cancer Institute 93.395 5 R01 CA104804-01-05 290,610.96
National Cancer Institute 93.395 5 R01 CA72039-05,06 70,665.98
National Cancer Institute 93.395 5 R01 CA91878-01,02 93,441.16
National Cancer Institute 93.396 1 R03 CA115258-01A2 71,025.08
National Cancer Institute 93.396 5 R01 CA096613-02,03 -17,185.23
National Cancer Institute 93.396 5 R21 CA106257-01,02 -0.13
National Cancer Institute 93.396 2 U01 CA084291-07 9,033.40
National Cancer Institute 93.396 5 R01 CA096613-02,03 26,558.67
National Cancer Institute 93.396 5 R01 CA096613-02,03 85.00
National Cancer Institute 93.396 5 R01 CA106471-01,02 112,899.70
National Cancer Institute 93.396 5 R01 CA096613-01,02 184,476.54
National Cancer Institute 93.396 5 R01 CA100002-01,02 265,222.47
National Cancer Institute 93.396 5 R01 CA104213-01 129,111.81
National Cancer Institute 93.396 5 R01 CA095286-01-05 267,847.60
National Cancer Institute 93.396 2 U01 CA084291-06 -25,726.45
National Cancer Institute 93.396 1 R01 CA119935 - 01A 177,885.56
National Cancer Institute 93.396 5 R01 CA120199-1,2,3 323,597.80
National Cancer Institute 93.396 5 R01 CA078524-08 289,329.40
National Cancer Institute 93.396 1 R21 CA121402-01A1 68,052.00
National Cancer Institute 93.396 1 R01 CA116777-01A1 79,940.95
National Cancer Institute 93.396 5 R01 CA93404-01,02 -17,468.29
National Cancer Institute 93.396 5 R01 CA78524-01,02 -305.66
National Cancer Institute 93.396 5 R01 CA82996-01,02 -15.20
National Cancer Institute 93.396 5 R01 CA82525-05S1 -0.07
National Cancer Institute 93.396 5 R01 CA88041-01,02 -3,047.70
National Cancer Institute 93.396 5 R01 CA90522-01,02 -0.02
National Cancer Institute 93.398 1 T32 CA117846-01A1 125,532.25
National Cancer Institute 93.398 7 K01 CA098743-06 159,267.35
National Cancer Institute 93.398 1 K01 CA123355-1,2 127,288.12
National Cancer Institute 93.398 1 T32 CA117846-02 230,698.04
National Cancer Institute 93.398 5 T32 CA059268-12 269,051.86
National Cancer Institute 93.398 2 T32 CA059268-11A2 -24,920.13
National Cancer Institute 93.398 5 T32 CA59268-09 -208.28
National Cancer Institute 93.398 5 T32 CA059268-13 729.00
National Cancer Institute 93.399 1 R01 CA114095-02 386,756.66
National Center for Complementary and Alternative Medicine 93.213 5 R21 AT002110-02 D 97.36
National Center for Complementary and Alternative Medicine 93.213 5 K01 AT002637-01, 0 -1,628.00
National Center for Complementary and Alternative Medicine 93.213 5 K24 AT001676-01,02 102,457.24
National Center for Complementary and Alternative Medicine 93.213 5 K01 AT002637-03, 0 103,096.75

48
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Center for Complementary and Alternative Medicine 93.213 5 R21 AT002110-02 ME 43,180.67
National Center for Complementary and Alternative Medicine 93.213 5 R21 AT00567-01A1 -1,412.47
National Center for Complementary and Alternative Medicine 93.213 5 R01 AT001147-01,02 -305.35
National Center for Research Resources 93.306 5 K26 RR17024-01A1 21,440.16
National Center for Research Resources 93.389 5 R01 RR023190-01,02 430,160.01
National Center for Research Resources 93.389 5 K01 RR020360-01A1 93,186.39
National Center for Research Resources 93.389 1 P20 RR023486-01 U 155,752.52
National Center for Research Resources 93.389 5 K30 RR022273-01,02 497,213.29
National Center for Research Resources 93.389 5 K30 RR022273-01,02 13,194.89
National Eye Institute 93.867 5 R01 EY015227-01,02 353,285.85
National Eye Institute 93.867 1 PN2 EY018230-01 406,662.46
National Eye Institute 93.867 5 R01 GM059944-06,07 200,851.23
National Eye Institute 93.867 5 R01 EY015181-01,02 279,308.63
National Eye Institute 93.867 5 R01 EY010556-05,06 514,861.41
National Eye Institute 93.867 7 PNS EY018230-02 26,109.00
National Eye Institute 93.867 5 R01 EY011845-05A2 458,699.44
National Eye Institute 93.867 2 R01 EY13168-08 38,793.94
National Eye Institute 93.867 7 R01 EY012486-07 Th 23,064.53
National Eye Institute 93.867 7 PNS EY018230-02 713,265.13
National Eye Institute 93.867 5 R03 EY014207-01,02 -0.71
National Eye Institute 93.867 5 R01 EY13755-01A1 -126.24
National Eye Institute 93.867 5 R01 EY13168-04,05 289,079.71
National Heart, Lung, and Blood Institute 93.837 5 R01 HL083334-02 409,658.04
National Heart, Lung, and Blood Institute 93.837 5 R01 HL67093-06 295,030.88
National Heart, Lung, and Blood Institute 93.837 5 R01 HL082734-03 292,165.40
National Heart, Lung, and Blood Institute 93.837 5 F31 HL081923-03 29,401.15
National Heart, Lung, and Blood Institute 93.837 5 R01 HL066062-08 36,430.92
National Heart, Lung, and Blood Institute 93.837 1 P50 HL77101 - 04 46,149.97
National Heart, Lung, and Blood Institute 93.837 5 R01 HL59888-08 37,849.43
National Heart, Lung, and Blood Institute 93.837 5 R01 HL066062-08 242,048.46
National Heart, Lung, and Blood Institute 93.837 1 F31 HL081923-01 721.91
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101 - 03 517,710.00
National Heart, Lung, and Blood Institute 93.837 1 P50 HL 77101-01 -7,598.54
National Heart, Lung, and Blood Institute 93.837 5 T32 HL007382-29 -14,205.05
National Heart, Lung, and Blood Institute 93.837 5 R37 HL074272-05 428,617.26
National Heart, Lung, and Blood Institute 93.837 5 R01 HL61974-07,08 16,054.70
National Heart, Lung, and Blood Institute 93.837 1 K99 HL087561-01 92,732.29
National Heart, Lung, and Blood Institute 93.837 5 R01 HL061974-06,07 304,528.51
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101 - 03 152,955.00
National Heart, Lung, and Blood Institute 93.837 5 R01 HL061332-08 -35,679.99
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101 - 03 53,592.04
National Heart, Lung, and Blood Institute 93.837 1 R01 HL078806-02 311,225.89
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101 - 03 296,524.88

49
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Heart, Lung, and Blood Institute 93.837 5 R01 HL063034-08 397,984.84
National Heart, Lung, and Blood Institute 93.837 5 R01 HL076684-04 352,893.14
National Heart, Lung, and Blood Institute 93.837 1 F31 HL081923-02 3,995.52
National Heart, Lung, and Blood Institute 93.837 2 R01 HL28573-23A1 320,087.18
National Heart, Lung, and Blood Institute 93.837 5 R01 HL081680-02 442,158.02
National Heart, Lung, and Blood Institute 93.837 5 R01 HL61974-09 48,766.42
National Heart, Lung, and Blood Institute 93.837 7 K08 HL068867-05 -4,239.31
National Heart, Lung, and Blood Institute 93.837 1 R01 HL075633-03 283,884.44
National Heart, Lung, and Blood Institute 93.837 5 R01 HL75297-05 283,822.80
National Heart, Lung, and Blood Institute 93.837 5 R01 HL62542-10 197,747.52
National Heart, Lung, and Blood Institute 93.837 1 R01 HL089067-01A2 95,897.43
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101 - 03 226,777.05
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101 - 03 199,260.73
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101 - 03 357,170.19
National Heart, Lung, and Blood Institute 93.837 1 R01 HL087861-02 328,431.74
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101 - 03 296,864.57
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101 - 03 60,838.01
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101 - 03 354,321.60
National Heart, Lung, and Blood Institute 93.837 1 R01 HL087246-02 545,701.31
National Heart, Lung, and Blood Institute 93.837 5 T32 HL007382-31 532,028.55
National Heart, Lung, and Blood Institute 93.837 1 R01 HL089535-01A1 20,837.95
National Heart, Lung, and Blood Institute 93.837 1 P50 HL77101-01 -1,526.92
National Heart, Lung, and Blood Institute 93.837 1 R01 HL085222-01 78,572.90
National Heart, Lung, and Blood Institute 93.837 7 R01 HL070860-04 137,373.62
National Heart, Lung, and Blood Institute 93.837 5 R01 HL080008-02 177,616.96
National Heart, Lung, and Blood Institute 93.837 1 R01 HL087288-01A2 71,375.58
National Heart, Lung, and Blood Institute 93.837 1 K08 HL081472-02 -16,655.04
National Heart, Lung, and Blood Institute 93.837 5 R01 HL071952-04 187,235.81
National Heart, Lung, and Blood Institute 93.837 1 R01 HL078806-01A2 40,519.23
National Heart, Lung, and Blood Institute 93.837 1 R01 HL078806-01A2 14,505.48
National Heart, Lung, and Blood Institute 93.837 1 R21 HL084539-02 168,846.53
National Heart, Lung, and Blood Institute 93.837 5 R01 HL61974-09 119,735.90
National Heart, Lung, and Blood Institute 93.837 5 R01 HL64018-09 266,878.22
National Heart, Lung, and Blood Institute 93.837 5 R01 HL026057-27 272,977.97
National Heart, Lung, and Blood Institute 93.837 5 R01 HL65915-08 411,253.66
National Heart, Lung, and Blood Institute 93.837 5 R01 HL28573-18,19 -10,513.89
National Heart, Lung, and Blood Institute 93.837 1 R01 HL079599-02 509,678.83
National Heart, Lung, and Blood Institute 93.837 1 P50 HL77101-02 -183.00
National Heart, Lung, and Blood Institute 93.837 1 P50 HL77101 - 04 38,009.18
National Heart, Lung, and Blood Institute 93.837 1 P50 HL77101 - 04 136,170.85
National Heart, Lung, and Blood Institute 93.837 5 T32 HL007382-30 47,745.09
National Heart, Lung, and Blood Institute 93.837 1 P50 HL77101 - 04 44,631.78
National Heart, Lung, and Blood Institute 93.837 1 R01 HL088567-01A 97,849.09

50
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Heart, Lung, and Blood Institute 93.837 1 R01 HL090948-01 15,620.67
National Heart, Lung, and Blood Institute 93.837 5 R01 HL67093-01A1 -23,945.85
National Heart, Lung, and Blood Institute 93.837 1 R01 HL083236-03 493,075.52
National Heart, Lung, and Blood Institute 93.837 1 R21 HL084648-01A1 204,613.20
National Heart, Lung, and Blood Institute 93.837 1 P50 HL77101-02 -5,378.09
National Heart, Lung, and Blood Institute 93.837 1 P50 HL77101-02 -5,947.99
National Heart, Lung, and Blood Institute 93.837 5 R01 HL66246-01A1 -14,174.79
National Heart, Lung, and Blood Institute 93.837 1 P50 HL77101-02 -440.89
National Heart, Lung, and Blood Institute 93.837 5 R01 HL70062-05 92,427.65
National Heart, Lung, and Blood Institute 93.837 5 R01 HL28573-23A1 27,510.59
National Heart, Lung, and Blood Institute 93.837 5 R01 HL67965-01A1 -4,644.39
National Heart, Lung, and Blood Institute 93.837 5 R01 HL080686-04 497,811.99
National Heart, Lung, and Blood Institute 93.837 1 P50 HL77101 - 04 407,882.57
National Heart, Lung, and Blood Institute 93.838 1 R01 HL087871-01 247,641.73
National Heart, Lung, and Blood Institute 93.838 1 R01 HL077763-02 28,381.32
National Heart, Lung, and Blood Institute 93.838 5 R01 HL066312-08 288,940.14
National Heart, Lung, and Blood Institute 93.838 1R13 HL088920-01 24,750.00
National Heart, Lung, and Blood Institute 93.838 1 R01 HL079193-03 -16,219.95
National Heart, Lung, and Blood Institute 93.838 5 R01 HL72068-04 -142,668.48
National Heart, Lung, and Blood Institute 93.838 5 R01 HL059945-09 207,275.26
National Heart, Lung, and Blood Institute 93.838 5 R01 HL068725-05 31,568.94
National Heart, Lung, and Blood Institute 93.838 1 R21 HL086689-02 252,329.29
National Heart, Lung, and Blood Institute 93.838 5 R01 HL076955-05 327,456.89
National Heart, Lung, and Blood Institute 93.838 5 R01 HL58399-05A2 120,609.63
National Heart, Lung, and Blood Institute 93.838 5 R01 HL64570-01,02 -4,342.14
National Heart, Lung, and Blood Institute 93.838 5 R01 HL64570-01,02 -1,815.28
National Heart, Lung, and Blood Institute 93.838 5 R01 HL058687,05,06 -1,180.69
National Heart, Lung, and Blood Institute 93.838 5 K02 HL072552-05 -8,358.24
National Heart, Lung, and Blood Institute 93.838 5 R01 HL084171-03 397,955.61
National Heart, Lung, and Blood Institute 93.838 1 R01 HL078900-02 364,595.11
National Heart, Lung, and Blood Institute 93.839 5 R01 HL072382-01A1 121,571.78
National Heart, Lung, and Blood Institute 93.839 5 R01 HL072382-03S1 -1,671.46
National Human Genome Research Institute 93.172 5 R01 HG003749-02 'B 18,351.61
National Human Genome Research Institute 93.172 5 R01 HG003749-02 325,851.48
National Institute of Arthritis, Musculoskeletal, and Skin 93.846 1 R21 AR051702-01,02 -2,798.28
National Institute of Arthritis, Musculoskeletal, and Skin 93.846 5 R01 AR46574-06, 07 271,380.15
National Institute of Arthritis, Musculoskeletal, and Skin 93.846 5 R01 AR46574-06, 07 14,339.37
National Institute of Arthritis, Musculoskeletal, and Skin 93.846 5 R01 AR050797-01,02 14,284.97
National Institute of Arthritis, Musculoskeletal, and Skin 93.846 1 R13 AR051039-01 -218.81
National Institute of Arthritis, Musculoskeletal, and Skin 93.846 1 R21 AR051702-01,02 -448.43
National Institute of Arthritis, Musculoskeletal, and Skin 93.846 5 R21 AG24484-01,02 84,087.53
National Institute of Arthritis, Musculoskeletal, and Skin 93.846 1 R01 AR053207-01A2 187,093.86
National Institute of Arthritis, Musculoskeletal, and Skin 93.846 1 R21 AR056059 - 01 11,323.58

51
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Institute of Arthritis, Musculoskeletal, and Skin 93.846 1 R13 AR054721 - 01 8,378.05
National Institute of Child Health and Human Development 93.864 5 K12 HD01256-10 14,649.54
National Institute of Child Health and Human Development 93.864 5 K12 HD01256-08 161.94
National Institute of Child Health and Human Development 93.864 5 K12 HD01256-09 84,403.91
National Institute of Child Health and Human Development 93.864 5 K12 HD01256-09 76,932.95
National Institute of Child Health and Human Development 93.864 5 K12 HD01256-10 14,278.96
National Institute of Child Health and Human Development 93.864 1 R21 HD050137-01A2 234,278.06
National Institute of Child Health and Human Development 93.864 5 K12 HD01256-08 162.00
National Institute of Child Health and Human Development 93.864 5 K12 HD01256-10 11,337.68
National Institute of Child Health and Human Development 93.864 5 K12 HD01256-09 77,296.69
National Institute of Child Health and Human Development 93.864 5 K12 HD01256-08 -324.04
National Institute of Child Health and Human Development 93.865 5 R21 HD048512-01,02 24,417.38
National Institute of Child Health and Human Development 93.865 3 U01 HD040565-05S1 3,847.81
National Institute of Child Health and Human Development 93.865 5 K23 HD44556-01,02 132,460.92
National Institute of Child Health and Human Development 93.865 5 K12 HD051953-03 69,624.59
National Institute of Child Health and Human Development 93.865 5 K12 HD051953-02 3,758.98
National Institute of Child Health and Human Development 93.865 5 R13 HD051237-01,02 8,938.72
National Institute of Child Health and Human Development 93.865 5 K12 HD051953-02 70,486.62
National Institute of Child Health and Human Development 93.865 1 R01 HD49777-01 -1,053.00
National Institute of Child Health and Human Development 93.865 5 K12 HD051953-03 41,657.81
National Institute of Child Health and Human Development 93.865 1 K12 HD051953-01 0.01
National Institute of Child Health and Human Development 93.865 5 R01 HD031514-10,11 214,962.85
National Institute of Child Health and Human Development 93.865 1 K23 HD052639-01A1 120,150.68
National Institute of Child Health and Human Development 93.865 5 K12 HD051953-02 16,590.33
National Institute of Child Health and Human Development 93.865 5 K12 HD051953-03 CH 91,579.15
National Institute of Child Health and Human Development 93.865 1 R13 HD055080-01 9,791.14
National Institute of Child Health and Human Development 93.865 1 R03 HD058032 - 01 1,238.11
National Institute of Child Health and Human Development 93.865 5 K12 HD051953-03 72,700.03
National Institute of Child Health and Human Development 93.865 5 K12 HD051953-02 6,598.05
National Institute of Child Health and Human Development 93.865 5 K12 HD051953-02 604.86
National Institute of Child Health and Human Development 93.865 1 K12 HD051953-01 0.05
National Institute of Child Health and Human Development 93.865 1 K12 HD051953-01 -430.24
National Institute of Child Health and Human Development 93.865 5 R01 HD40285 1A1,02 177,107.17
National Institute of Child Health and Human Development 93.865 5 R01 HD39419-01A2 -5,258.26
National Institute of Child Health and Human Development 93.865 5 R03 HD052838-01,02 50,149.21
National Institute of Child Health and Human Development 93.865 1 K12 HD051953-01 -71.59
National Institute of Child Health and Human Development 93.865 5 R01 HD26471-11A1 -264.13
National Institute of Child Health and Human Development 93.865 5 R01 HD34089-06,07 -816.81
National Institute of Child Health and Human Development 93.865 1 R03 HD058030 - 01 2,162.24
National Institute of Diabetes and Digestive and Kidney 93.847 2 R01 DK061659-06 310,306.37
National Institute of Diabetes and Digestive and Kidney 93.847 5 T32 GM63483-04 -934.80
National Institute of Diabetes and Digestive and Kidney 93.847 5 T32 DK59803-05 -8,234.93
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK059630-06 7,997.64

52
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Institute of Diabetes and Digestive and Kidney 93.847 5 T35 DK60444-06 109,693.88
National Institute of Diabetes and Digestive and Kidney 93.847 1 K23 DK080081 - 01 116,208.83
National Institute of Diabetes and Digestive and Kidney 93.847 2 T32 DK059803 - 06 52,040.43
National Institute of Diabetes and Digestive and Kidney 93.847 1 R01 DK069845 - 01A 556,358.40
National Institute of Diabetes and Digestive and Kidney 93.847 8 R01 DK054966-07,08 196,020.69
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK059630-06 1,657.46
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK59630-05 18,503.03
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK59630-05 0.01
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK059630-06 5,792.89
National Institute of Diabetes and Digestive and Kidney 93.847 1 R01 DK069967-01A2 373,613.04
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK059630-07 374,741.57
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK59630-07 24,732.11
National Institute of Diabetes and Digestive and Kidney 93.847 1 R01 DK073505-01A1 307,136.95
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK059630-07 238,669.45
National Institute of Diabetes and Digestive and Kidney 93.847 5 R01 DK070992-01,02 269,626.75
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK059630-07 164,352.21
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK059630-07 131,112.91
National Institute of Diabetes and Digestive and Kidney 93.847 1 F32 DK67820-01 -42.00
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK059630-07 207,182.81
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK59630-04 -0.09
National Institute of Diabetes and Digestive and Kidney 93.847 5 R01 DK063907-01,02 228,856.24
National Institute of Diabetes and Digestive and Kidney 93.847 5 R01 DK46433-06,07 -47.19
National Institute of Diabetes and Digestive and Kidney 93.847 5 R01 DK57900-04A1,05 224,004.89
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK059630-06 1,971.17
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK059630-08 13,094.27
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK59630-04 -289.35
National Institute of Diabetes and Digestive and Kidney 93.847 5 R01 DK48061-10 -9,749.33
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK59630-04 -419.21
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK59630-04 -0.02
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK59630-05 -3,495.27
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK59630-04 -390.61
National Institute of Diabetes and Digestive and Kidney 93.847 1 R01 DK074361-1, 2, 82,049.12
National Institute of Diabetes and Digestive and Kidney 93.847 5 T32 GM063483-05 23,663.88
National Institute of Diabetes and Digestive and Kidney 93.847 1 K01 DK75365-01,02 125,798.06
National Institute of Diabetes and Digestive and Kidney 93.847 7 R01 DK061659-04,5 -90,853.10
National Institute of Diabetes and Digestive and Kidney 93.847 1 F31 DK076185-01A1 4,290.00
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK059630-08 12,299.38
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK59630-03 -4,816.94
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK59630-04 -0.04
National Institute of Diabetes and Digestive and Kidney 93.847 5 R01 DK54216-06,07 -14,237.61
National Institute of Diabetes and Digestive and Kidney 93.847 5 T32 DK59803-04 138.49
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK059630-08 10,679.11
National Institute of Diabetes and Digestive and Kidney 93.847 1 R01 DK074932-01A2 500,390.39

53
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Institute of Diabetes and Digestive and Kidney 93.847 1 F31 DK076185-02 32,833.84
National Institute of Diabetes and Digestive and Kidney 93.847 3 R01 DK52134-07S1 20,097.33
National Institute of Diabetes and Digestive and Kidney 93.847 1 F32 DK079710 - 01 46,824.47
National Institute of Diabetes and Digestive and Kidney 93.847 2 T32 GM063483-06 301,931.33
National Institute of Diabetes and Digestive and Kidney 93.847 5 T32 DK059803 - 07 143,251.39
National Institute of Diabetes and Digestive and Kidney 93.847 1 R01 DK073802-01 293,282.02
National Institute of Diabetes and Digestive and Kidney 93.847 1 K23 DK074440-01A1 177,289.39
National Institute of Diabetes and Digestive and Kidney 93.847 5 R01 DK52134-5,6,7 162,217.74
National Institute of Diabetes and Digestive and Kidney 93.847 5 R01 DK063088-01,02 288,255.68
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK059630-08 15,522.29
National Institute of Diabetes and Digestive and Kidney 93.847 1 R01 DK078201 - 01A 55,230.91
National Institute of Diabetes and Digestive and Kidney 93.847 1 R01 DK073689-01A1 214,450.87
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK059630-06 -19,800.30
National Institute of Diabetes and Digestive and Kidney 93.847 5 R01 DK52134-05,06 458.42
National Institute of Diabetes and Digestive and Kidney 93.847 7 R01 DK66058-04,5 161,416.85
National Institute of Diabetes and Digestive and Kidney 93.847 7 R01 DK067555-02,03 272,239.67
National Institute of Diabetes and Digestive and Kidney 93.847 1 F32 DK75255-01 1,102.29
National Institute of Diabetes and Digestive and Kidney 93.847 5 U24 DK059630-08 7,815.29
National Institute of Diabetes and Digestive and Kidney 93.847 5 R01 DK073681-01,02 355,728.40
National Institute of Diabetes and Digestive and Kidney 93.848 1 R21 DK074976-01A2, 113,261.11
National Institute of Diabetes and Digestive and Kidney 93.848 2 P01 DK56863-07 40,110.26
National Institute of Diabetes and Digestive and Kidney 93.848 2 P01 DK56863-07 141,119.89
National Institute of Diabetes and Digestive and Kidney 93.848 2 P01 DK56863-06A1 -2,513.39
National Institute of Diabetes and Digestive and Kidney 93.848 2 P01 DK56863-06A1 0.10
National Institute of Diabetes and Digestive and Kidney 93.848 5 F32 DK75255-02 10,670.90
National Institute of Diabetes and Digestive and Kidney 93.848 1 K24 DK070528-01,02 128,064.60
National Institute of Diabetes and Digestive and Kidney 93.848 5 R01 DK054890 - 09A 298,127.74
National Institute of Diabetes and Digestive and Kidney 93.848 8 R01 DK67550-01A2, 340,763.14
National Institute of Diabetes and Digestive and Kidney 93.848 1 K01 DK078906 - 01 119,746.06
National Institute of Diabetes and Digestive and Kidney 93.848 5 F32 DK67809-03 3,505.49
National Institute of Diabetes and Digestive and Kidney 93.848 5 R01 DK66596-01,02 156,384.14
National Institute of Diabetes and Digestive and Kidney 93.848 2 P01 DK56863-06A1 -199.14
National Institute of Diabetes and Digestive and Kidney 93.848 1 F32 DK67749-01 2,064.57
National Institute of Diabetes and Digestive and Kidney 93.848 2 P01 DK56863-07 170,916.23
National Institute of Diabetes and Digestive and Kidney 93.848 1 R01 DK076928 - 01A 125,216.99
National Institute of Diabetes and Digestive and Kidney 93.848 5 R01 DK42457-11,12 391.45
National Institute of Diabetes and Digestive and Kidney 93.848 5 R01 DK053548-04 3,321.07
National Institute of Diabetes and Digestive and Kidney 93.848 2 R01 DK017844-31,32 135,898.51
National Institute of Diabetes and Digestive and Kidney 93.848 5 R01 DK064885-01A1 191,305.90
National Institute of Diabetes and Digestive and Kidney 93.848 1 R01 DK66223-01A1 192,677.11
National Institute of Diabetes and Digestive and Kidney 93.848 7 R01 DK054940 - 06 60,199.80
National Institute of Diabetes and Digestive and Kidney 93.848 2 P01 DK56863-07 150,113.76
National Institute of Diabetes and Digestive and Kidney 93.848 9 R01 DK073552-06A1 238,230.06

54
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Institute of Diabetes and Digestive and Kidney 93.848 2 P01 DK056863 - 08 40,347.24
National Institute of Diabetes and Digestive and Kidney 93.848 1 R21 DK075888-01A1 63,479.54
National Institute of Diabetes and Digestive and Kidney 93.848 1 R01 DK076907 - 01A 305,526.11
National Institute of Diabetes and Digestive and Kidney 93.848 1 R01 DK071125 - 01A 184,704.35
National Institute of Diabetes and Digestive and Kidney 93.848 1 R01 DK069987-01A1 290,664.55
National Institute of Diabetes and Digestive and Kidney 93.848 5 P01 DK56863-05 -32,365.76
National Institute of Diabetes and Digestive and Kidney 93.848 5 R01 DK43816-09,10 -30,275.59
National Institute of Diabetes and Digestive and Kidney 93.848 2 P01 DK56863-07 202,270.61
National Institute of Diabetes and Digestive and Kidney 93.848 5 T32 DK64581-02 1,477.40
National Institute of Diabetes and Digestive and Kidney 93.848 5 P01 DK56863-05 -8,234.11
National Institute of Diabetes and Digestive and Kidney 93.848 2 P01 DK56863-07 195,003.21
National Institute of Diabetes and Digestive and Kidney 93.848 5 T32 DK64581-05 169,669.26
National Institute of Diabetes and Digestive and Kidney 93.848 2 P01 DK56863-06 3,870.08
National Institute of Diabetes and Digestive and Kidney 93.848 1 K23 DK075599 - 01A 127,014.39
National Institute of Diabetes and Digestive and Kidney 93.848 7 R01 DK054940-07 349,581.41
National Institute of Diabetes and Digestive and Kidney 93.848 2 P01 DK056863 - 08 28,096.23
National Institute of Diabetes and Digestive and Kidney 93.848 5 R01 DK056029-06A1 116,960.61
National Institute of Diabetes and Digestive and Kidney 93.848 5 F32 DK67809-02 5,708.30
National Institute of Diabetes and Digestive and Kidney 93.848 5 R01 DK67416 322,386.91
National Institute of Diabetes and Digestive and Kidney 93.848 5 F32 DK67749-02 6,500.00
National Institute of Diabetes and Digestive and Kidney 93.848 1 R13 DK080587-01 16,000.00
National Institute of Diabetes and Digestive and Kidney 93.848 2 P01 DK056863-08 6,389.28
National Institute of Diabetes and Digestive and Kidney 93.848 5 R01 DK056029 - 09 269,394.82
National Institute of Diabetes and Digestive and Kidney 93.848 5 T32 DK64581-04 17,218.65
National Institute of Diabetes and Digestive and Kidney 93.848 1 R01 DK068273-012A2 321,786.71
National Institute of Diabetes and Digestive and Kidney 93.848 1 R01 DK080047 - 01A 57,298.73
National Institute of Diabetes and Digestive and Kidney 93.848 2 P01 DK56863-06 37,749.07
National Institute of Diabetes and Digestive and Kidney 93.848 2 P01 DK056863 - 08 11,364.93
National Institute of Diabetes and Digestive and Kidney 93.848 2 P01 DK056863 - 08 50,144.23
National Institute of Diabetes and Digestive and Kidney 93.848 2 P01 DK056863 - 08 31,098.10
National Institute of Diabetes and Digestive and Kidney 93.848 1 R21 DK075888 - 01 140,699.38
National Institute of Diabetes and Digestive and Kidney 93.849 1 R21 DK066589-01,02 -1,924.81
National Institute of Diabetes and Digestive and Kidney 93.849 5 R01 DK057552-05A2,06 279,355.92
National Institute of Diabetes and Digestive and Kidney 93.849 5 R37 DK50594-10, 11 70,141.98
National Institute of Diabetes and Digestive and Kidney 93.849 1 R01 DK062809-01A1 236,519.15
National Institute of Diabetes and Digestive and Kidney 93.849 1R21 DK078006-01,02 221,315.03
National Institute of Diabetes and Digestive and Kidney 93.849 1 R01 DK071802-01A1 373,043.39
National Institute of Diabetes and Digestive and Kidney 93.849 1 R21 DK063954-01,02 -13,375.63
National Institute of Diabetes and Digestive and Kidney 93.849 5 R37 DK50594-10, 11 575,666.52
National Institute of Diabetes and Digestive and Kidney 93.849 5 R01 DK057552-01,02, -70,576.84
National Institute of Diabetes and Digestive and Kidney 93.849 5 R37 DK 50594-11 47,532.19
National Institute of Diabetes and Digestive and Kidney 93.849 1 R01 DK068568-01A2 -113.11
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 7,486.66

55
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 2,762.44
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 2,883.16
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 10,613.60
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 0.03
National Institute for Occupational Safety and Health 93.262 2 R01 OH007364-04 14,925.15
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 343.35
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 6,513.94
National Institute for Occupational Safety and Health 93.262 2 R01 OH004085 247,306.57
National Institute for Occupational Safety and Health 93.262 1 R21 OH008510-01A1 76.19
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 771.33
National Institute for Occupational Safety and Health 93.262 1 T42 OH008432-01 -260.32
National Institute for Occupational Safety and Health 93.262 1 R01 OH 008795 -02 15,004.45
National Institute for Occupational Safety and Health 93.262 3 T42 OH008432-02S1 -0.10
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 -13.95
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 6,853.37
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 149.95
National Institute for Occupational Safety and Health 93.262 5 R01 OH007976-01,02 -15.41
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 6,480.00
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 30.83
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 8,640.00
National Institute for Occupational Safety and Health 93.262 1 R01 OH008795 -02 153,002.17
National Institute for Occupational Safety and Health 93.262 2 R01 OH007529-05A1 166,432.88
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 2,823.62
National Institute for Occupational Safety and Health 93.262 5 R01 OH007364-06 302,283.51
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 0.04
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 12,874.89
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 5,628.77
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 0.02
National Institute for Occupational Safety and Health 93.262 5 R01 0H07364-05 -1,320.34
National Institute for Occupational Safety and Health 93.262 1 T42 OH008432-01 -282.62
National Institute for Occupational Safety and Health 93.262 1 T42 OH008432-01 -1,908.64
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 184,856.80
National Institute for Occupational Safety and Health 93.262 1 T42 OH008432-01 11,719.60
National Institute for Occupational Safety and Health 93.262 5 R21 OH008510-2 147,852.77
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 216,233.43
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 30,686.38
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 47,749.91
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 185,836.68
National Institute for Occupational Safety and Health 93.262 1 T42 OH008432-01 0.02
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 27,721.87
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 162,741.72
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 74,561.30
National Institute for Occupational Safety and Health 93.262 1 T42 OH008432-01 -19.23

56
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Institute for Occupational Safety and Health 93.262 1 T42 OH008432-01 0.08
National Institute for Occupational Safety and Health 93.262 1 T42 OH008432-01 -0.02
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 1,643.83
National Institute for Occupational Safety and Health 93.262 1 R01 OH008795-01 45,126.11
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 34,323.51
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 2,913.80
National Institute for Occupational Safety and Health 93.262 1 T42 OH008432-01 -0.11
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 19,179.65
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 259,635.26
National Institute for Occupational Safety and Health 93.262 1 T42 OH008432-01 -0.13
National Institute for Occupational Safety and Health 93.262 1 T42 OH008432-01 -0.02
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 19,164.90
National Institute for Occupational Safety and Health 93.262 5 R01 OH07364-01A1 -31,693.69
National Institute for Occupational Safety and Health 93.262 1 T42 OH008432-01 0.03
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-03 8,484.06
National Institute for Occupational Safety and Health 93.262 1 R01 OH008795-01 3,062.62
National Institute for Occupational Safety and Health 93.262 5 R01 OH007529-01,02 9,213.87
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 972.33
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 14,383.52
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 1,325.32
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 -0.13
National Institute for Occupational Safety and Health 93.262 1 T42 OH008432-01 -0.04
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 4,683.88
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 590.75
National Institute for Occupational Safety and Health 93.262 1 T42 OH008432-01 16.81
National Institute for Occupational Safety and Health 93.262 1 T42 OH008432-01 104.80
National Institute for Occupational Safety and Health 93.262 1 T42 OH008432-01 0.01
National Institute for Occupational Safety and Health 93.262 5 T42 OH008432-02 -7,656.43
National Institute of Allergy and Infectious Disease 93.855 5 T32 AI060515-04 118,406.71
National Institute of Allergy and Infectious Disease 93.855 5 R01 AI064893-01A2 277,046.93
National Institute of Allergy and Infectious Disease 93.855 1 U01 AI69513-02 887,544.51
National Institute of Allergy and Infectious Disease 93.855 1 R01 AI070300-01A2 87,057.01
National Institute of Allergy and Infectious Disease 93.855 1 U01 AI69513-02 210,926.38
National Institute of Allergy and Infectious Disease 93.855 5 T32 AI060515-03 943.20
National Institute of Allergy and Infectious Disease 93.855 5 R21 AI070865-01A1 132,608.78
National Institute of Allergy and Infectious Disease 93.855 1 U01 AI075498-01 173,712.60
National Institute of Allergy and Infectious Disease 93.855 5 R01 AI07240-01A1 215,672.24
National Institute of Allergy and Infectious Disease 93.855 1 U01 AI075498-01 40,031.48
National Institute of Allergy and Infectious Disease 93.855 1 R01 AI073337-01A2 20,467.25
National Institute of Allergy and Infectious Disease 93.855 5 R01 AI065256-01A1 609,239.82
National Institute of Allergy and Infectious Disease 93.855 1 R21 AI067868-01A1 179,096.60
National Institute of Allergy and Infectious Disease 93.855 5 R01 AI52175-01,02 106,367.92
National Institute of Allergy and Infectious Disease 93.855 7 R01 AI066261-03 253,911.05

57
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Institute of Allergy and Infectious Disease 93.855 1 R01 AI072297-01A1 116,773.25
National Institute of Allergy and Infectious Disease 93.855 1 R01 AI072581-01A2 132,169.34
National Institute of Allergy and Infectious Disease 93.855 1 R01 AI067903-01 -0.04
National Institute of Allergy and Infectious Disease 93.855 5 T32 AI060515-05 4,210.56
National Institute of Allergy and Infectious Disease 93.855 1 R01 AI067104-01A2 63,786.14
National Institute of Allergy and Infectious Disease 93.855 1 R21 AI075237 49,591.79
National Institute of Allergy and Infectious Disease 93.856 3 R01 AI052099-03S1 18,347.30
National Institute of Allergy and Infectious Disease 93.856 1 R21 AI061495-01A1 -3,281.86
National Institute of Allergy and Infectious Disease 93.856 5 F31 AI064121-03 24,122.80
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-05 1,743.83
National Institute of Allergy and Infectious Disease 93.856 3 R01 AI064084-02S1 8,340.94
National Institute of Allergy and Infectious Disease 93.856 5 T32 AI055406-03 -3,473.16
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI061497-01A1 312,061.04
National Institute of Allergy and Infectious Disease 93.856 1 F31 AI064121-01 -2,915.86
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI036701- 10 239,701.21
National Institute of Allergy and Infectious Disease 93.856 5 T32 AI055406-05 248,706.16
National Institute of Allergy and Infectious Disease 93.856 3 U01 AI025897-17S1 3,388.80
National Institute of Allergy and Infectious Disease 93.856 5 R21 AI60770-01,02 5,680.65
National Institute of Allergy and Infectious Disease 93.856 5 F31 AI064121-04 6,383.00
National Institute of Allergy and Infectious Disease 93.856 1 U01 AI69513-01 349,663.74
National Institute of Allergy and Infectious Disease 93.856 5 T32 AI055406-04 77,997.45
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI055848-01,02 174,959.71
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI34361-11,12 289,053.70
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI36701-05A1 -809.56
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-03 14,538.83
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-03 9,528.03
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI064084-01A1 125,967.24
National Institute of Allergy and Infectious Disease 93.856 5 K23 AI068453-01A1 140,576.12
National Institute of Allergy and Infectious Disease 93.856 1 U01 AI69513-01 270,323.23
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI052099-01A1 273,621.94
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-04 203,983.16
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-03 -2,936.70
National Institute of Allergy and Infectious Disease 93.856 R01 AI062492-01A1,02 613,858.26
National Institute of Allergy and Infectious Disease 93.856 1 U01 AI69513-01 84,701.73
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-04 183,395.01
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-04 150,823.13
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-04 209,220.98
National Institute of Allergy and Infectious Disease 93.856 1 P01 AI61298-01 -865.77
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI23695-15,16 -46,626.88
National Institute of Allergy and Infectious Disease 93.856 5 R37 AI42747-06,07 295,419.51
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI50450-01A1 86,862.89
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI49358-01,02 73,612.39
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI58159-01A2 251,428.68
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-02 811.92
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-03 -7,798.23
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-02 -0.11
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-05 16,559.11
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI45715-01A1 -54.92
National Institute of Dental Research 93.121 1 R03 DE017089-01, 0 29,298.94
National Institute of Dental Research 93.121 1 R13 DE018363-01 1,671.00

58
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures
National Institute of Dental Research 93.121 1 R21 DE 017703-01-0 23,637.18
National Institute of Dental Research 93.121 1 R01 DE016325-01A2, 42,254.32
National Institute of Dental Research 93.121 5 R01 DE013823-01,02 -153.09
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-05 22,777.48
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-02 -5,443.15
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-05 10,036.43
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-02 0.01
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-05 D 364,470.67
National Institute of Environmental Health Sciences 93.113 5 R01 ES09110-05A2 224,689.64
National Institute of Environmental Health Sciences 93.113 5 R01 ES012212-01,02 121,187.96
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-05 144,605.72
National Institute of Environmental Health Sciences 93.113 5 R01 ES12463-01,02 317,655.68
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-05 101,654.72
National Institute of Environmental Health Sciences 93.113 5 R01 ES004203-15,16 387.39
National Institute of Environmental Health Sciences 93.113 2 T32 ES10957-07 - L 353,205.28
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-05 (A 129,349.28
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-02 -1,890.98
National Institute of Environmental Health Sciences 93.113 1 R01 ES016531-01 33,617.60
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 56,838.15
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S5 26.38
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 Pr 95,925.04
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770 - CHR 73,768.13
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 P 78,092.18
National Institute of Environmental Health Sciences 93.113 1 U01-ES015675 -02 73,879.96
National Institute of Environmental Health Sciences 93.113 1 U01 ES016123 -01-L 16,871.74
National Institute of Environmental Health Sciences 93.113 9 R01 ES016675-06A1 15,688.53
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 447.77
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770 - Pro 246,283.65
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 0.02
National Institute of Environmental Health Sciences 93.113 2 P30 ES06096 - 16A1 93.83
National Institute of Environmental Health Sciences 93.113 1 U01 ES012770-01 -7.98
National Institute of Environmental Health Sciences 93.113 3 P42 ES004908-15S5 19,606.75
National Institute of Environmental Health Sciences 93.113 5 R01 ES11798-01,02, 267,957.58
National Institute of Environmental Health Sciences 93.113 5 P30 ES06273-11S1,1 -0.03
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-03 Re -163.61
National Institute of Environmental Health Sciences 93.113 5 R01 ES015145 - 04A 199,878.11
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S5 -19,220.36
National Institute of Environmental Health Sciences 93.113 5 U01 ES12770-02 -144.05
National Institute of Environmental Health Sciences 93.113 5 R01 ES014464 -01, 329,725.00
National Institute of Environmental Health Sciences 93.113 5 R01 ES06273-10,11, 321,959.49
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-02 -49,322.50
National Institute of Environmental Health Sciences 93.113 1 R21 ES013524-02 28,863.98
National Institute of Environmental Health Sciences 93.113 1 U01 ES016123 -01 417,814.97
National Institute of Environmental Health Sciences 93.113 5 R01 ES014016-06242 341,689.04
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S2 1 16.93
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-02 -2,731.70
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S5 0.58
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S5 -2,181.20
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S5 -856.06
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S5 38.00
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S5 -505.89
National Institute of Environmental Health Sciences 93.113 2 P42 ES04908-15S2 -992.82

59
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures
National Institute of Environmental Health Sciences 93.113 1 R03 ES015307-01A1, 55,238.01
National Institute of Environmental Health Sciences 93.113 5 R01 ES014016-06242 14,110.69
National Institute of Environmental Health Sciences 93.113 5 R01 ES015036-01, 0 482,870.52
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 -19,369.71
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 148.70
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 11,310.25
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 96,975.39
National Institute of Environmental Health Sciences 93.113 5 R01 ES015446-01,02 239,977.56
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-05 P 131,518.63
National Institute of Environmental Health Sciences 93.113 3 U01 ES012770-03S1 2,103.23
National Institute of Environmental Health Sciences 93.113 5 U01 ES11038-05,05S 2,046.02
National Institute of Environmental Health Sciences 93.113 5 U01 ES11038-05,05S -787.49
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-02 -9,269.89
National Institute of Environmental Health Sciences 93.113 5 U01 ES11038-05,05S 0.04
National Institute of Environmental Health Sciences 93.113 1 R01 ES015559-01 145,675.08
National Institute of Environmental Health Sciences 93.113 5 U01 ES11038-04 -9.99
National Institute of Environmental Health Sciences 93.113 1R21ES015335-01A1 - 65,043.49
National Institute of Environmental Health Sciences 93.113 1 U01 ES015675-01 fu 179,501.54
National Institute of Environmental Health Sciences 93.113 1 R21 ES013827-01 -234.34
National Institute of Environmental Health Sciences 93.113 5 R21 ES01317-01,02, 193,435.81
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S5 -11,865.30
National Institute of Environmental Health Sciences 93.113 5 U01 ES016123-02 D 12,481.17
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S5 s 3,907.47
National Institute of Environmental Health Sciences 93.113 2 R01 ES009110-10 47,431.12
National Institute of Environmental Health Sciences 93.113 2 P30 ES06096-16A1 24,120.58
National Institute of Environmental Health Sciences 93.113 2 R01 ES010807-06,07 291,665.83
National Institute of Environmental Health Sciences 93.113 2 P30 ES06096-16A1 15,023.10
National Institute of Environmental Health Sciences 93.113 2 P30 ES06096-16A1 8,818.47
National Institute of Environmental Health Sciences 93.113 1 R03 ES014621-01,02 32,393.57
National Institute of Environmental Health Sciences 93.113 5 R01 ES014403-01,02 311,182.70
National Institute of Environmental Health Sciences 93.113 5 R01 ES08147-05,06 -2,859.88
National Institute of Environmental Health Sciences 93.113 2 P30 ES06096-16 A1 8,929.66
National Institute of Environmental Health Sciences 93.113 2 P30 ES06096-16A1 4,509.00
National Institute of Environmental Health Sciences 93.113 5 R01 ES012695-01A2- 512,445.70
National Institute of Environmental Health Sciences 93.113 2 P30 ES06096-16A1 56,949.39
National Institute of Environmental Health Sciences 93.113 1 U01 ES016123 -01 / 3,355.29
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 -38,465.91
National Institute of Environmental Health Sciences 93.113 5 R01 ES10416-01,02 -36,240.65
National Institute of Environmental Health Sciences 93.113 5 R01 ES015446-01,02 175,488.04
National Institute of Environmental Health Sciences 93.113 5 R01 ES015448-01,02,03 316,294.50
National Institute of Environmental Health Sciences 93.114 5 U45 ES06184-15 RE 24,598.08
National Institute of Environmental Health Sciences 93.114 5 U45 ES06184-14 -17,935.32
National Institute of Environmental Health Sciences 93.114 5 U45 ES06184-15 // 304,384.42
National Institute of Environmental Health Sciences 93.114 5 R21 ES11009-01,02 -4,524.96
National Institute of Environmental Health Sciences 93.115 2 R01 ES011170-06A2, 473,659.15
National Institute of Environmental Health Sciences 93.115 3 R01 ES011170-05S1 0.06
National Institute of Environmental Health Sciences 93.115 5 R01 ES011170-01,02 4.55
National Institute of Environmental Health Sciences 93.115 5 R01 ES011170-01,02 -3,552.93
National Institute of Environmental Health Sciences 93.115 5 R01 ES011170-01,02 31,361.13
National Institute of Environmental Health Sciences 93.115 2 R01 ES011170-06A2, 43,884.49
National Institute of Environmental Health Sciences 93.123 5 U01 ES012770-03 -3,348.94
National Institute of Environmental Health Sciences 93.123 5 U01 ES012770-02 -129.26

60
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures
National Institute of Environmental Health Sciences 93.123 5 U01 ES012770-03 1,120.52
National Institute of Environmental Health Sciences 93.123 5 U01 ES012770-04 19,389.97
National Institute of Environmental Health Sciences 93.123 5 R01 HL081859-04 486,744.13
National Institute of Environmental Health Sciences 93.123 5 U01 ES012770-03 144.13
National Institute of Environmental Health Sciences 93.123 5 U01 ES012770-03 -50.66
National Institute of Environmental Health Sciences 93.123 5 U01 ES012770-03 4,287.42
National Institute of Environmental Health Sciences 93.123 5 U01 ES012770-04 3,865.58
National Institute of Environmental Health Sciences 93.142 5 U45 ES06184-13 -8,848.68
National Institute of Environmental Health Sciences 93.142 3 U45 ES006184-16S1 17,296.37
National Institute of Environmental Health Sciences 93.142 5 U45 ES006184-16 1,253,045.67
National Institute of Environmental Health Sciences 93.894 5 T32 ES07250-18 -83.18
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-13 -3,180.34
National Institute of Environmental Health Sciences 93.894 5 T32 ES10957-04 40,109.55
National Institute of Environmental Health Sciences 93.894 2 T32 ES10957-06 127,528.08
National Institute of Environmental Health Sciences 93.894 5 T32 ES10957-03 -2,805.87
National Institute of Environmental Health Sciences 93.894 5 T32 ES07250-20 437,331.04
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 -799.13
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 -585.00

61
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 840.09

National Institute of Environmental Health Sciences 93.894 5 T32 ES07250-19 40,917.67
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 -212.49
National Institute of Environmental Health Sciences 93.894 5 T32 ES10957-05 -22,415.94
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 239,268.82
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 -8.29
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 -316.04
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 -8,671.00
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 11,013.06
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 71,487.17
National Institute of General Medical Sciences 93.859 8 RGM084186A 36,742.76
National Institute of General Medical Sciences 93.859 3 R01 GM072760-02S1 35,463.90
National Institute of General Medical Sciences 93.859 1 R01 GM083204-01,02 132,862.11
National Institute of General Medical Sciences 93.859 5 R01 GM67991-01A2 251,553.67
National Institute of General Medical Sciences 93.859 5 R01 GM072760-01A1 224,904.69
National Institute of General Medical Sciences 93.859 1 R01 GM079542-01A1 142,029.01
National Institute of General Medical Sciences 93.859 1 R01 GM69845-01A1 220,920.57
National Institute of General Medical Sciences 93.859 5 R01 GM58843-08 217,702.45
National Institute of General Medical Sciences 93.859 5 R01 GM069547-01,02 145,862.25
National Institute of General Medical Sciences 93.859 5 T32 GM008478-15 131,790.16
National Institute of General Medical Sciences 93.859 5 R01 GM041399-13,14 38,779.02
National Institute of General Medical Sciences 93.859 5 R01 GM 63855-01A1 217,808.40
National Institute of General Medical Sciences 93.859 5 R01 GM041803-14,15 225,306.41
National Institute of General Medical Sciences 93.859 5 R01 GM069547-01,02 50,544.43
National Institute of General Medical Sciences 93.859 5 T32 GM008478-14 57,151.79
National Institute of General Medical Sciences 93.859 5 R25 GM72834-01,02 57,081.99
National Institute of General Medical Sciences 93.859 1 R01 GM076363-01A1 -2,740.92
National Institute of General Medical Sciences 93.859 5 R01 GM61194-01,02 -223.91
National Institute of General Medical Sciences 93.859 7 R01 GM063559-05 135,804.01
National Institute of General Medical Sciences 93.859 5 R01 GM50509-09,10 -26,016.41
National Institute of General Medical Sciences 93.862 5 R01 GM73169-02A3 273,879.96
National Institute of Health 93.989 5 R03 TW007213-01A1 37,643.98
National Institute of Mental Health 93.242 1 R01 MH078043 -01A1 230,158.97
National Institute of Mental Health 93.242 3 R01 MH069725-02S1, 78,641.14
National Institute of Mental Health 93.242 1 R01 MH069725-01A2, 389,419.56
National Institute of Mental Health 93.242 1 R34 MH071719-03 B 28,038.23
National Institute of Mental Health 93.242 P50 MH077138-01A1 BI 125,299.43
National Institute of Mental Health 93.242 P50 MH077138-01A1 BI 321,115.04
National Institute of Mental Health 93.242 P50 MH077138-01A1 BI 128,867.79
National Institute of Mental Health 93.242 P50 MH077138-01A1 BI 124,643.16
National Institute of Mental Health 93.242 P50 MH077138-01A1 BI 107,212.83
National Institute of Mental Health 93.242 1 R01 MH074929-01A1, 345,618.54
National Institute of Mental Health 93.242 1 R01 MH69860-02,03 439,922.17

62
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Institute of Mental Health 93.242 1 R01 MH066626-01A2 359,301.37

National Institute of Mental Health 93.242 P50 MH077138-01A1 BI 376,812.64
National Institute of Mental Health 93.242 1 R01 MH71931- 1, 2, 541,197.85
National Institute of Mental Health 93.242 5 R01 MH068801-01A,2 440,735.66
National Institute of Mental Health 93.242 5 R01 MH49698-11,12 29,786.57
National Institute of Mental Health 93.242 1 R21 MH73704-01A1, 85,101.03
National Institute of Mental Health 93.242 5 R01 MH60781-01,02 -77.88
National Institute of Mental Health 93.242 3 R01 MH066626-03S1, 41,136.22
National Institute of Mental Health 93.242 1 R21 MH083213 - 01 29,857.62
National Institute of Mental Health 93.242 1 R34 MH071719-01A1, 166,248.79
National Institute of Mental Health 93.242 2 R01 MH049698 - 16 77,441.00
National Institute of Mental Health 93.242 1 R21 MH074858-01A1, 170,959.35
National Institute of Mental Health 93.242 5 R01 MH63798-01,02 48,547.77
National Institute of Mental Health 93.281 5 K23 MH67705-01A2,02 170,723.36
National Institute of Mental Health 93.281 1 K23 MH70849-01,2,3 168,674.65
National Institute of Mental Health 93.281 5 K23 MH63373-01,02 8,051.49
National Institute of Mental Health 93.281 1 K23 MH081214 - 01A 10,562.41
National Institute of Mental Health 93.282 5 F32 MH65770-03 -0.57
National Institute of Mental Health 93.282 5 K23 MH064086-01,02 78,032.93
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 43.61
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 -0.03
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 4,740.16
National Institute of Neurological Disorders and Stroke 93.853 1 R01 NS054890-01A2 300,580.95
National Institute of Neurological Disorders and Stroke 93.853 1 F30 NS060418-01A1 14,643.00
National Institute of Neurological Disorders and Stroke 93.853 5 K23 NS045054-05 /O 18,529.99
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 0.07
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 2,735.86
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 -0.23
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 -0.01
National Institute of Neurological Disorders and Stroke 93.853 U01 NS052220-01 12,794.03
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS050569-01A1 7,277.89
National Institute of Neurological Disorders and Stroke 93.853 3 T32 NS004753-08S1 -3,462.00
National Institute of Neurological Disorders and Stroke 93.853 1 U10 NS058982-01 11,388.03
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS042308-01A2 1,769.04
National Institute of Neurological Disorders and Stroke 93.853 5 K23 NS052468-02 156,827.69
National Institute of Neurological Disorders and Stroke 93.853 5 T32 NS007453-09 -2,799.40
National Institute of Neurological Disorders and Stroke 93.853 5 U10 NS058982-01,02 330,494.95
National Institute of Neurological Disorders and Stroke 93.853 1 U01 NS52220 - 01 2,108.93
National Institute of Neurological Disorders and Stroke 93.853 1 K23 NS052468 -10,590.79
National Institute of Neurological Disorders and Stroke 93.853 2 R01 NS36695-08 -0.08
National Institute of Neurological Disorders and Stroke 93.853 2 R01 NS36695-08 0.20
National Institute of Neurological Disorders and Stroke 93.853 1 R01 NS058798-01A1 73,614.82
National Institute of Neurological Disorders and Stroke 93.853 7 R01 NS045132-04 113,775.87

63
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 26,054.16
National Institute of Neurological Disorders and Stroke 93.853 1 R01 NS057367 43,632.17
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS44283-02 5,228.62
National Institute of Neurological Disorders and Stroke 93.853 1 R01 NS055860-01A2 127,998.11
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS030678-13 103,222.79
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS44283-02 5,794.76
National Institute of Neurological Disorders and Stroke 93.853 1 R01 NS055295-01A1 362,223.65
National Institute of Neurological Disorders and Stroke 93.853 5 U01 NS052220-03 593,143.54
National Institute of Neurological Disorders and Stroke 93.853 1 U01 NS52220 - 01 -253.11
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS030678-13 -0.08
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS030678-13 41,078.15
National Institute of Neurological Disorders and Stroke 93.853 3 R01 NS042308-01A2 0.01
National Institute of Neurological Disorders and Stroke 93.853 7 R03 NS048188-03 2,052.44
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 237,737.61
National Institute of Neurological Disorders and Stroke 93.853 5 U01 NS052220-03 29,274.24
National Institute of Neurological Disorders and Stroke 93.853 1 R01 NS058698-01A2 78,372.65
National Institute of Neurological Disorders and Stroke 93.853 1 K23 NS059843-01 191,478.94
National Institute of Neurological Disorders and Stroke 93.853 U01 NS052220-01 6,181.05
National Institute of Neurological Disorders and Stroke 93.853 P50 NS44283-04 -7,699.22
National Institute of Neurological Disorders and Stroke 93.853 P50 NS044283-04 62.52
National Institute of Neurological Disorders and Stroke 93.853 P50 NS044283-04 3,037.45
National Institute of Neurological Disorders and Stroke 93.853 1 R01 NS054750-01A1 145,711.17
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS039512-04 2,678.21
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS049172-01,02 144,389.51
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS039512-03 -94.50
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS047603-01,02 28,154.87
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS047603-01,02 568,219.54
National Institute of Neurological Disorders and Stroke 93.853 5 K02 NS056253-01,02 179,657.50
National Institute of Neurological Disorders and Stroke 93.853 1 R01 NS058698-01A2 3,666.00
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS049428-01 163,382.96
National Institute of Neurological Disorders and Stroke 93.853 5 T32 NS047996-02 101,617.41
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 56,370.82
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS047603-01,02 0.08
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 51,220.95
National Institute of Neurological Disorders and Stroke 93.853 5 T32 NS07453-08 -0.12
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS047603-01,02 1,793.55
National Institute of Neurological Disorders and Stroke 93.853 5 U01 NS052220-02 681,611.23
National Institute of Neurological Disorders and Stroke 93.853 5 U01 NS052220-02 41,871.71
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS058682-01 312,991.02
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS049428-01 57,187.07
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 177,064.92
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 80,143.62
National Institute of Neurological Disorders and Stroke 93.853 5 U01 NS52220-03 IMS 610,413.82

64
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS030678-12 0.01
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS035313-05A2 263,157.53
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS039087-07 25,713.53
National Institute of Neurological Disorders and Stroke 93.853 7 R01 NS040396-5 3,076.35
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS36695-08 -0.35
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS44283-03 -663.79
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS44283-03 -6,797.21
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 412,655.98
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS44283-03 -5,228.62
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS44283-03 -929.68
National Institute of Neurological Disorders and Stroke 93.853 5 T32 NS007453-10 212,831.60
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 75,942.59
National Institute of Neurological Disorders and Stroke 93.853 1 K02 NS 056253-1 26.24
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS030678-14 660,988.67
National Institute of Neurological Disorders and Stroke 93.853 1 U01 NS52220-03 IMS 113,888.69
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS030678-14 38,983.99
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS052700-01A1 305,530.67
National Institute of Neurological Disorders and Stroke 93.853 P50 NS44283-04 -1,501.90
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS050569-01A1 414,127.24
National Institute of Neurological Disorders and Stroke 93.853 T32 NS047996 12,833.72
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS044972-01,02 8,289.97
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS039512-04 0.17
National Institute of Neurological Disorders and Stroke 93.853 T32 NS047996 6,916.55
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS36695-09 322,184.52
National Institute of Neurological Disorders and Stroke 93.853 U01 NS052220-01 -300,915.53
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS36695-09 48,216.17
National Institute of Neurological Disorders and Stroke 93.853 1 F31 NS059270-01A2 14,379.25
National Institute of Neurological Disorders and Stroke 93.853 3 R01 NS050569-01A1S -212.13
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS039512-01,02 838,702.99
National Institute of Neurological Disorders and Stroke 93.853 5 K23 NS049463-01,02 170,959.87
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS36695-08 0.17
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS030652-08A1 -0.02
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS045594-01,02 243,332.12
National Institute of Neurological Disorders and Stroke 93.853 5 K23 NS049463-01,02 13,431.97
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS30678-12 -5,649.33
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS30652-08A1 118,327.67
National Institute of Neurological Disorders and Stroke 93.853 5 U01 NS52220 - 02 -20,594.74
National Institute of Neurological Disorders and Stroke 93.853 5 U01 NS52220 - 02 83,774.49
National Institute of Neurological Disorders and Stroke 93.853 5 U01 NS52220 - 02 289,292.15
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS039512-01,02 1,725,434.61
National Institute of Neurological Disorders and Stroke 93.853 5 K23 NS045054-01,02 0.05
National Institute of Neurological Disorders and Stroke 93.853 5 K23 NS045054-01,02 95,462.70
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS042798-01A1 -1,555.88

65
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University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Institute of Nursing 93.361 5 K23 NR008716-01,02 7,952.69

National Institute on Aging 93.866 5 R01 AG20249-02,03 147,406.08
National Institute on Aging 93.866 5 R01 AG025881-01,02 392,348.00
National Institute on Aging 93.866 7 R01 AG025036-03 242,300.27
National Institute on Aging 93.866 5 R01 AG12853-07A1 -992.26
National Institute on Aging 93.866 5 R01 AG12962-06A2 159,802.49
National Institute on Alcohol Abuse and Alcoholism 93.271 5 K02 AA00319-02,02S 244.02
National Institute on Alcohol Abuse and Alcoholism 93.273 5 R21 AA014014-01,02 7,743.37
National Institute on Alcohol Abuse and Alcoholism 93.273 5 R01 AA013957-01A1 481,038.20
National Institute on Alcohol Abuse and Alcoholism 93.273 3 R01 AA013957-03S1 66,409.86
National Institute on Alcohol Abuse and Alcoholism 93.273 1 R21 AA016372-01A2 4,210.41
National Institute on Alcohol Abuse and Alcoholism 93.273 5 R01 AA013307-01A2 367,351.56
National Institute on Deafness and Other Communication 93.173 3 R01 DC03604-06S1 -0.02
National Institute on Deafness and Other Communication 93.173 7 R01 DC03577 - 09 0.04
National Institute on Deafness and Other Communication 93.173 5 R21 DC006505-01,02 26,505.01
National Institute on Deafness and Other Communication 93.173 5 K08 DC005421-03,04 72,788.64
National Institute on Deafness and Other Communication 93.173 5 R01 DC05250-01,02 -16,587.78
National Institute on Deafness and Other Communication 93.173 5 R01-DC04203-05 -78.00
National Institute on Deafness and Other Communication 93.173 5 R01 DC03604-05,06 -118.80
National Institute on Deafness and Other Communication 93.173 1 R03 DC006771-01A2, 78,665.44
National Institute on Deafness and Other Communication 93.173 5 R01 DC000926-08,09 -3,992.82
National Institute on Drug Abuse 93.279 2 R01 DA07427-12A1 305,861.88
National Institute on Drug Abuse 93.279 1 K01 DA020485-01A1 149,454.75
National Institute on Drug Abuse 93.279 1 R21 DA022148-01 179,250.63
National Institute on Drug Abuse 93.279 5 R21 DA019261 57,524.09
National Institute on Drug Abuse 93.279 3 U10 DA13732-06S1 -13,375.00
National Institute on Drug Abuse 93.279 3 R01 DA022221-02S1 33,952.91
National Institute on Drug Abuse 93.279 1 R01 DA16778-01A1 204,705.39
National Institute on Drug Abuse 93.279 5 U10 DA013732-08 1,588,691.00
National Institute on Drug Abuse 93.279 5 U10 DA013732-07 4,730.75
National Institute on Drug Abuse 93.279 5 R01 DA14644-05S1 0.02
National Institute on Drug Abuse 93.279 1 R01 DA17399-01,02 302,947.74
National Institute on Drug Abuse 93.279 5 R01 DA13786-01,02 -12,800.46
National Institute on Drug Abuse 93.279 3U10 DA013732-07S1 1,162,819.69
National Institute on Drug Abuse 93.279 5 U10 DA13732-05 -2,632.32
National Institute on Drug Abuse 93.279 3 U10 DA013732-08S1 15,058.67
National Institute on Drug Abuse 93.279 1 R01 DA022221-01,02 367,680.12
National Institute on Drug Abuse 93.279 5 U10 DA13732-05S1 -0.28
National Institute on Drug Abuse 93.279 1 K23 DA021512-01A2 3,330.16
National Institute on Drug Abuse 93.279 3 R01 DA022221-02S2 15,694.52
National Institute on Drug Abuse 93.279 1 R21 DA020804 - 01A 38,690.62
National Institute on Drug Abuse 93.279 5 R01 DA14591-01,02 -0.01
National Institute on Drug Abuse 93.279 5 F32 DA16466-03 -105.33

66
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University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Institute on Drug Abuse 93.279 5 U10 DA013732-07 369,410.91

National Institute on Drug Abuse 93.279 5 R01 DA07427-07,08 1,655.16
National Institutes of Health 93.286 7 R01 EB003730-04 140,039.19
National Institutes of Health 93.286 1 R21 EB003979-02 -16,922.42
National Institutes of Health 93.286 1 R21 EB003938 - 01 -11,245.29
National Institutes of Health 93.286 1U54EB007954-01 53,245.96
National Institutes of Health 93.286 1U54EB007954-01 169,052.86
National Institutes of Health 93.286 1 R21 EB003938 0.35
National Institutes of Health 93.286 1U54EB007954-01 56,630.26
National Institutes of Health 93.286 1U54EB007954-01 42,895.63
National Institutes of Health 93.286 1 R21 EB007244-01 8,586.88
National Institutes of Health 93.286 1 R21 EB007244-01 7,487.35
National Institutes of Health 93.286 1 R21 EB007244-01 223,891.20
National Institutes of Health 93.286 1 R21 EB003938 - 02 2,460.49
National Institutes of Health 93.286 1 R21 EB007335-01 16,212.96
National Institutes of Health 93.286 1 R21 EB005042-02 49,647.40
National Institutes of Health 93.286 1 R21 EB005042-02 120,342.81
National Institutes of Health 93.286 1U54EB007954-01 37,465.67
National Institutes of Health 93.286 1U54EB007954-01 69,398.12
National Institutes of Health 93.286 1R21 EB004859-02 162,396.56
National Library of Medicine 93.879 1 R03 LM08248-01,02 0.01
National Library of Medicine 93.879 1 K22 LM008534-03 57,966.15
National Library of Medicine 93.879 5 G08 LM07853-04 25,440.55
National Library of Medicine 93.879 NLM PO# 467-MZ-30159 -0.01
TOTAL DEPARTMENT OF HEALTH AND HUMAN SERVICES 102,166,710.78
Department of Housing and Urban Development
Department of Housing and Urban Development 14 HUD OHLTS0094-02 -602.41
Department of Housing and Urban Development 14.902 HUD OHLHT0163-07 Le 7,091.94
Department of Housing and Urban Development 14.902 HUD OHLHT0114-06 23,917.25
Department of Housing and Urban Development 14.902 HUD OHLHT0113-06 211,919.44
Department of Housing and Urban Development 14.902 HUD OHLHT0106-05 218,258.78
Department of Housing and Urban Development 14.902 HUD OHLHT0157-07 Lea 81,450.11
Department of Housing and Urban Development 14.906 HUD OHLHH0162-07 HEA 92,163.52
Office of Healthy Homes and Lead Hazard Control 14.900 HUD OHLHH0155-06 268,179.25
Office of Healthy Homes and Lead Hazard Control 14.900 US HUD OHLHR0054E99 -8,649.54
Office of Healthy Homes and Lead Hazard Control 14.900 US HUD OHLTS0098-03 -1,023.15
Office of Healthy Homes and Lead Hazard Control 14.900 HUD OHLHH0099E01 -269.54
TOTAL DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 892,435.65
Department of Interior
Geological Survey 15.807 USGS - 07HQGR0017 / 31,387.93
TOTAL DEPARTMENT OF INTERIOR 31,387.93
Department of Justice
Department of Justice 16 KINSOW 1224708 CHAKR 332,509.00
Department of Justice 16 PROJECT 3 MISC FEDER -10,475.53

67
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University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Institute of Corrections 16.602 NIC 07C69GJR5 WOMEN 145,722.85

National Institute of Corrections 16.602 NIC 06WOI01GJL0 C 36,190.24
National Institute of Justice 16.560 2007-DC-BX-0016 OJJD 58,989.42
National Institute of Justice 16.560 NIJ 2005-IJ-CX-0030 25,080.62
National Institute of Justice 16.560 DOJ 2005-DA-BX-K102 154,738.42
National Institute of Justice 16.562 2007-IJ-CX-0010 Stei 1,860.50
Office of Community Oriented Policing Services 16.710 USDOJ-2005CKWX0397 N 31,965.92
TOTAL DEPARTMENT OF JUSTICE 776,581.44
Department of Veterans Affairs
Department of Veterans Affairs 64 VA IPA SESSTERHAN SU 42,012.27
Department of Veterans Affairs 64 VA IPA HONG LI 47,762.55
Department of Veterans Affairs 64 VA IPA Jie Xu 29,045.52
Department of Veterans Affairs 64 VA IPA Freyberg 143,264.35
Department of Veterans Affairs 64 VA IPA KNAUF 10,911.96
Department of Veterans Affairs 64 VA IPA Yoon 36,694.98
Department of Veterans Affairs 64 VA IPA HEIDORN 32,117.87
Department of Veterans Affairs 64 VA IPA AHLBRAND 14,969.54
Department of Veterans Affairs 64 V673P-5763 / Treatme 3,662.66
Department of Veterans Affairs 64 VA IPA Panchanathan 41,493.60
Department of Veterans Affairs 64 VA IPA Tanaka 29,004.67
Department of Veterans Affairs 64 VA IPA McNamara 2,162.19
Department of Veterans Affairs 64 VA IPA ROTH 42,283.04
Department of Veterans Affairs 64 VA MED CENTER IPA DE 26,585.35
Department of Veterans Affairs 64 VA IPA BREWER 35,182.01
Department of Veterans Affairs 64 VA IPA Reta Gibbons 36,073.39
Department of Veterans Affairs 64 VA IPA - Puget Sound 1,151.38
Department of Veterans Affairs 64 VA IPA ZHANG 16,667.44
Department of Veterans Affairs 64 VA IPA WEBER - VISN 19,634.83
Department of Veterans Affairs 64 VA IPA MEGANATHAN - 9,024.86
Department of Veterans Affairs 64 VA IPA SIJUE WAN 18,602.59
Department of Veterans Affairs 64 VA IPA Winters 2,860.87
Department of Veterans Affairs 64 VA IPA YING 7,892.95
TOTAL DEPARTMENT OF VETERANS AFFAIRS 649,060.87
Environmental Protection Agency
Environmental Protection Agency 66 EPA EP068000093 ROHS -0.02
Environmental Protection Agency 66 EPA IPA HQ-535-07-07 89,282.52
Environmental Protection Agency 66 EPA 68-C-00-159 TO#5 897.22
Environmental Protection Agency 66.509 EPA STAR Cyanotoxin 53,123.86
Office of Grants and Debarment 66.607 EPA T83292901 Resear 40,547.85
TOTAL ENVIRONMENTAL PROTECTION AGENCY 183,851.43
Federal Mediation and Conciliation Service
Federal Mediation and Conciliation Service 34.002 FMCS 06-OH/PS-001 32,795.80
TOTAL FEDERAL MEDIATION AND CONCILIATION SERVICE 32,795.80

68
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Aeronautics & Space Administration 43 NNX08AC43B 17,192.78

National Aeronautics & Space Administration 43 NNX07AC69A - NASA 211,233.54
National Aeronautics & Space Administration 43 NNX07AB38A-NASA 297,143.31
National Aeronautics & Space Administration 43.001 NASAGLENN NNCO6GA30G 31,031.07
National Aeronautics & Space Administration 43.001 NNA06CB04G APPROACH 19,116.65
National Aeronautics & Space Administration 43.001 NNC04CB44C NASA -54.17
National Aeronautics & Space Administration 43.001 NASA NAS3-01120 1,780.00
National Aeronautics & Space Administration 43.001 NNC04GB46G NASA 299.17
National Aeronautics & Space Administration 43.001 NAG5 13426 NASA 6,996.54
National Aeronautics & Space Administration 43.002 NCC5-728 NASA 3,578.08
TOTAL NATIONAL AERONAUTICS & SPACE ADMINISTRATION 588,316.97
National Foundation on the Arts and the Humanities
Division of Educational Programs 45.167 NEH RZ-50602-06 115,392.74
National Foundation on the Arts and the Humanities 45 NEH RK-20052-93 -1,173.32
TOTAL NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES 114,219.42
National Science Foundation
Directorate for Biological Sciences 47.074 NSF DBI-0729754 45.00
Directorate for Biological Sciences 47.074 NSF CNS-0634473 BPC- 106,821.42
Directorate for Biological Sciences 47.074 NSF MCB-0543910 AMEN 2,639.64
Directorate for Biological Sciences 47.074 NSF CNS-0421092 3,821.00
Directorate for Biological Sciences 47.074 NSF DEB-0345990 REU 47.03
Directorate for Biological Sciences 47.074 NSF IOB-0545978 155,424.83
Directorate for Biological Sciences 47.074 NSF DEB-0317687 REU 5,809.67
Directorate for Biological Sciences 47.074 NSF CCF-0541103 24,496.15
Directorate for Biological Sciences 47.074 NSF IBN-0423963 7,660.26
Directorate for Biological Sciences 47.074 NSF MCB-9733303 -970.04
Directorate for Biological Sciences 47.074 NSF IBN-0239164 43,911.36
Directorate for Biological Sciences 47.074 NSF DEB-0326957 57,994.33
Directorate for Biological Sciences 47.074 NSF DEB-0317687 18,484.08
Directorate for Biological Sciences 47.074 NSF DEB-0345990 20,264.93
Directorate for Biological Sciences 47.074 NSF DEB-0317687-001 -0.02
Directorate for Biological Sciences 47.074 NSF CCF-0541103 55,447.40
Directorate for Biological Sciences 47.074 NSF IOS-0749768 Path 12,195.44
Directorate for Biological Sciences 47.074 NSF MCB-0543910 Func 67,077.36
Directorate for Computer and Information and Science 47.070 NSF CNS-0724198 14,953.67
Directorate for Computer and Information and Science 47.070 NSF CCF-0429717 - Su 27,519.20
Directorate for Computer and Information and Science 47.070 NSF CNS-0721641 41,311.49
Directorate for Computer and Information and Science 47.070 NSF CCF-0429717 23,859.93
Directorate for Computer and Information and Science 47.070 NSF CNS-0521189 47,521.38
Directorate for Computer and Information and Science 47.070 NSF CNS-0721641 ZENG 7,444.32
Directorate for Education and Human Resources 47.076 NSF DGE-0538532 Proj 254,489.57
Directorate for Education and Human Resources 47.076 NSF DGE-0538532 STEP 42,160.98
Directorate for Education and Human Resources 47.076 NSF DGE-0538532 SUPP 12,008.46

69
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University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

Directorate for Education and Human Resources 47.076 NSF DRL-0723638 Deve 37,178.34
Directorate for Education and Human Resources 47.076 NSF DGE-0538532 SUPP 48,406.01
Directorate for Education and Human Resources 47.076 NSF DUE-0434086 36,399.00
Directorate for Education and Human Resources 47.076 NSF DGE-0333377 77,858.90
Directorate for Education and Human Resources 47.076 NSF DGE-0333377 745,082.71
Directorate for Education and Human Resources 47.076 NSF DUE-0511160 12,331.30
Directorate for Education and Human Resources 47.076 NSF DUE-0536799 Inte 47,738.37
Directorate for Engineering 47.041 NSF ECCS-0640964 NSF 77,635.85
Directorate for Engineering 47.041 NSF CBET-0729250 35,982.33
Directorate for Engineering 47.041 NSF-CMMI-0653920 / C 7,446.51
Directorate for Engineering 47.041 NSF IIP-0732457-001 4,312.83
Directorate for Engineering 47.041 NSF ECCS-0725812 31,592.73
Directorate for Engineering 47.041 NSF CMS-0508232 43,554.92
Directorate for Engineering 47.041 NSF IIP-0652208 / Mi 59,272.27
Directorate for Engineering 47.041 NSF BCS-0650393 Pale 9,757.89
Directorate for Engineering 47.041 NSF CMMI-0508232-001 4,500.00
Directorate for Engineering 47.041 NSF ECCS-0725812 8,847.92
Directorate for Engineering 47.041 NSF ECCS-0725404 24,371.03
Directorate for Engineering 47.041 NSF CMMI-0727250 33,713.85
Directorate for Engineering 47.041 NSF ECCE-0725404 60,233.08
Directorate for Engineering 47.041 NSF CBET-0747602 Chl 15,666.27
Directorate for Engineering 47.041 NSF EEC-0649914 SGER 60,481.26
Directorate for Engineering 47.041 NSF CTS-0237172 Mech 2,903.15
Directorate for Engineering 47.041 NSF CTS-0626063 Spra 60,816.47
Directorate for Engineering 47.041 NSF CMS-0510823 111,196.90
Directorate for Engineering 47.041 NSF CTS 0548364 -171.60
Directorate for Engineering 47.041 NSF CBET-0552036-001 1,000.00
Directorate for Engineering 47.041 NSF EEC-0533321 54,073.92
Directorate for Engineering 47.041 NSF EEC-0532495 NUE: 21,353.50
Directorate for Engineering 47.041 NSF BES-0529217 NSF 19,140.74
Directorate for Engineering 47.041 NSF ECS-0608854 NER: 41,853.74
Directorate for Engineering 47.041 NSF IIP-0624148 MAST 1,312.44
Directorate for Engineering 47.041 NSF CBET-0740061 9,100.00
Directorate for Engineering 47.041 NSF CHE-0749790 Stra 8,308.14
Directorate for Engineering 47.041 NSF DUE-0633560 35,766.65
Directorate for Engineering 47.041 NSF BES-0529063 Enab 60,077.77
Directorate for Engineering 47.041 NSF EEC-0531945 C -306.55
Directorate for Engineering 47.041 NSF BES-0529217 SST 33,618.88
Directorate for Engineering 47.041 NSF EEC-0639469 REU 8,270.49
Directorate for Engineering 47.041 NSF ECCS-0725530 32,947.16
Directorate for Engineering 47.041 NSF EEC-0631412 Coll 32,496.26
Directorate for Engineering 47.041 NSF CMMI-0727250 4,497.88
Directorate for Engineering 47.041 NSF EEC-0649914 SGER 8,050.64

70
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures
Directorate for Engineering 47.041 NSF EEC-0639469 I/UC 52,667.47
Directorate for Engineering 47.041 NSF CBET-0626063 RET 707.65
Directorate for Engineering 47.041 NSF IIP-0652208 - Su 17,272.89
Directorate for Engineering 47.041 NSF ECCS-0701703 Sup 9,738.98
Directorate for Engineering 47.041 NSF EEC-0541600 NSF 32,483.87
Directorate for Engineering 47.041 NSF BES-0529063 REU 4,202.23
Directorate for Engineering 47.041 NSF EEC-0647677 REU 106,311.11
Directorate for Engineering 47.041 NSF CBET-0626063 32,102.51
Directorate for Engineering 47.041 NSF BES-0448117 REU 4,134.32
Directorate for Engineering 47.041 NSF CMMI-0700107 45,517.08
Directorate for Engineering 47.041 NSF EEC-0540582 I/UC -60,257.91
Directorate for Engineering 47.041 NSF ECCS-0701703 65,408.23
Directorate for Engineering 47.041 NSF CMMI-0700747 40,244.55
Directorate for Engineering 47.041 NSF CMS-0600583 - Me 78,019.09
Directorate for Engineering 47.041 NSF CBET-0626063 Sup 206.03
Directorate for Engineering 47.041 NSF DMI-0555962 Con 86,516.15
Directorate for Engineering 47.041 NSF BES-0238858 6,970.47
Directorate for Engineering 47.041 NSF CTS-0403897 502.42
Directorate for Engineering 47.041 NSF BES-0529217 SST 39,726.00
Directorate for Engineering 47.041 NSF CTS-0403897 30,801.04
Directorate for Engineering 47.041 NSF CTS-0457453 85,653.08
Directorate for Engineering 47.041 NSF BES-0238858 33,031.61
Directorate for Engineering 47.041 NSF BES-0229135 -474.17
Directorate for Engineering 47.041 NSF OCE-0304171 0.58
Directorate for Engineering 47.041 NSF EEC-0540582-004 12,030.00
Directorate for Engineering 47.041 NSF CMS-0210351 0.05
Directorate for Engineering 47.041 NSF IIP-0732457 27,973.32
Directorate for Engineering 47.041 NSF AST-0607497 Reve 132,504.22
Directorate for Engineering 47.041 NSF EEC-0552786 REU 72,790.64
Directorate for Engineering 47.041 NSF BES-0448117 58,476.36
Directorate for Engineering 47.041 NSF CTS-0403897 34,433.95
Directorate for Engineering 47.041 NSF EEC-0622036 - EP 108,896.68
Directorate for Engineering 47.041 NSF BES-0428600 76,012.11
Directorate for Engineering 47.041 NSF BES-0552036 NSF/ 82,346.09
Directorate for Engineering 47.041 NSF ECS-0524166 GO 40,296.84
Directorate for Engineering 47.041 NSF EEC-0601960 RET 3,980.66
Directorate for Engineering 47.041 NSF CTS-0403897 NIRT 2,113.30
Directorate for Engineering 47.041 NSF CMS-0540289 DDDA 97,288.89
Directorate for Engineering 47.041 NSF EEC-0647677-002 1,496.22
Directorate for Engineering 47.041 NSF EEC 0601960 RET 136,780.85
Directorate for Engineering 47.041 NSF BES-0428600 17,478.30
Directorate for Engineering 47.041 NSF BES-0617939 Work -0.03
Directorate for Engineering 47.041 NSF CTS-0403897 36,782.77

71
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

Directorate for Engineering 47.041 NSF CMS-0432992 53,725.00

Directorate for Engineering 47.041 NSF BES-0529217 Inte 3,750.00
Directorate for Engineering 47.041 NSF EEC-0624148 CU-U 13,976.50
Directorate for Engineering 47.041 NSF CTS-0320695 44,590.85
Directorate for Engineering 47.041 NSF CMS-0210351 17,744.49
Directorate for Engineering 47.041 NSF GRS-0548846 49,650.74
Directorate for Engineering 47.041 NSF EEC-0341842 -412.92
Directorate for Engineering 47.041 NSF CTS-0238962 84,568.21
Directorate for Engineering 47.041 NSF CTS-0237172 2,370.95
Directorate for Engineering 47.041 NSF CMS-0210351 60,367.44
Directorate for Engineering 47.041 NSF DMR-0200839 -16,040.34
Directorate for Engineering 47.041 NSF EEC-0540582-03 I 7,569.99
Directorate for Geosciences 47.050 NSF 0643144 - LOWELL 81,208.30
Directorate for Geosciences 47.050 NSF EAR-0544822 -1,440.25
Directorate for Geosciences 47.050 NSF EAR 0518511 Hig 73,312.42
Directorate for Geosciences 47.050 NSF EAR 0602675 Geom 17,883.53
Directorate for Geosciences 47.050 NSF EAR-0618003 135,030.81
Directorate for Geosciences 47.050 NSF EAR-0537580 Coll -1,716.29
Directorate for Geosciences 47.050 NSF EAR-0640378 5,000.00
Directorate for Mathematical and Physical Sciences 47.049 NSF DMS-0504198 CLAS 30,913.87
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0709560 Mode 53,513.68
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR-0407569 104,382.75
Directorate for Mathematical and Physical Sciences 47.049 NSF DMS-0710701 13,019.95
Directorate for Mathematical and Physical Sciences 47.049 NSF DMS-0618997 9,240.02
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0602413 New 189,759.07
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0645483 Care 18,877.34
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR 0706161 / ME 65,673.56
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR 0706161 / ME 44,295.07
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0703920 REAC 197,877.36
Directorate for Mathematical and Physical Sciences 47.049 NSF PHY-0457336 REU 33,161.16
Directorate for Mathematical and Physical Sciences 47.049 NSF DMS-0515989 24,201.95
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0243731 1,965.86
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR-0314760 240,515.21
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR-0305076 210.05
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0400539 18,393.05
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0134975 159,786.28
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR-0216374 -369.52
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR-0312680 157,489.83
Directorate for Mathematical and Physical Sciences 47.049 NSF PHY-0406400 -19,966.22
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR-0456472 109,826.38
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0548150 122,305.70
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR-0706379 24,581.97
Directorate for Mathematical and Physical Sciences 47.049 NSF DMS-0515989 30,630.55

72
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

Directorate for Mathematical and Physical Sciences 47.049 NSF DMS-0355027 22,280.11
Directorate for Mathematical and Physical Sciences 47.049 NSF PHY-0457336 198,260.68
Directorate for Mathematical and Physical Sciences 47.049 NSF AST-0094050 -6,314.07
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0449774 96,860.26
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR-0244489 -4,818.55
Directorate for Social, Behavorial and Economic Sciences 47.075 NSF OISE-436627 13,695.50
Directorate for Social, Behavorial and Economic Sciences 47.075 NSF BCS-0716319 51,504.12
Directorate for Social, Behavorial and Economic Sciences 47.075 NSF BCS-0728413 27,623.66
Directorate for Social, Behavorial and Economic Sciences 47.075 NSF SES-0715515 11,854.33
Directorate for Social, Behavorial and Economic Sciences 47.075 NSF SES-0615706 Nons 79,259.89
Directorate for Social, Behavorial and Economic Sciences 47.075 NSF BCS-0642716 Coll 50,512.94
Directorate for Social, Behavorial and Economic Sciences 47.075 NSF 0728743 DHB Coll 62,223.63
Office of the Director 47.078 NSF ARC-0641623 -4,491.59
Office of the Director 47.078 NSF ARC-0713813 68,949.43
Office of the Director 47.078 NSF ARC-0641623 568,394.02
Office of the Director 47.078 NSF OPP-0094769 -817.00
TOTAL NATIONAL SCIENCE FOUNDATION 8,230,677.00
Nuclear Regulatory Commission
Nuclear Regulatory Commission 77.006 US NUCLEAR REGULATOR 54,104.43
TOTAL NUCLEAR REGULATORY COMMISSION 54,104.43
TOTAL RESEARCH AND DEVELOPMENT - DIRECT FUNDS 120,730,150.44
RESEARCH AND DEVELOPMENT - PASS THROUGH
Department of Agriculture
Agricultural Research Service 10.001 ENV10-003-004-Egypt- 6,126.12
TOTAL DEPARTMENT OF AGRICULTURE 6,126.12
Department of Commerce
National Oceanic and Atmospheric Administration 11.417 OSURF RF00984052 SUB -652.50
TOTAL DEPARTMENT OF COMMERCE -652.50
Department of Defense
Army Research Office 12.431 VA TECH SUB ARMY CR- -1,660.56
Department of Army 12.420 UR sub Army W81XWH07 4,414.20
Department of Army 12.420 UKRF SUB ARMY #4-651 -710.06
Department of Army 12.420 Rutgers AFIRM sub Ar 8,603.45
Department of Army 12.420 LIFECELL CORP / ARMY -6,806.25
Department of Defense 12 UTC SUB AF 05-S508-0 -1,147.84
Department of Defense 12 RFID sub AF - Rapid 61,250.00
Department of Defense 12 CHEMAT SUB AF FA9550 52,404.42
Department of Defense 12 UTC SUB AF 05-S530-0 9,555.84
Department of Defense 12 HEMERUS - SUB ARMY L 131.04
Department of Defense 12 UDRI SUB AF RSC0300 -93.08
Department of Defense 12 JXT Applications Arm 143,200.57
Department of Defense 12 Systran SUB AF FA875 30,188.39
Department of Defense 12 Navigant Biotechnolo 13,510.22
Department of Defense 12 UDRI SUB AF RSC0300 -0.06

73
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

Department of Defense 12 General Dynamics / U 3,199.56

Department of Defense 12 HONEYWELL SUB USAF/A 30,761.61
Department of Defense 12 ANTEON SUB AF #0060- 18,430.51
Department of Defense 12 ISSI SUB AF #SB0900 12,833.09
Department of Defense 12 UDRI RSC06003 sub AF 73,476.99
Department of Defense 12 HEMERUS sub ARMY PC 85,410.31
Department of Defense 12 ANTEON SUB AF #5408- 24,829.92
Department of Defense 12 BATTELLE SUB ARMY 41,773.75
Department of Defense 12 UES SUB AF #S-709-00 -12,292.74
Department of Defense 12 INTEL AUTO SUB AF FA 20,000.00
Department of Defense 12 NANOLAB INC / ARMY 10,778.99
Department of Defense 12 HONEYWELL SUB AF FA8 15,475.43
Department of Defense 12 UDRI sub Army RSC06 80,452.02
Department of Defense 12 Systran Sub AF FA955 59,884.59
Department of Defense 12 CSA Enginrng sub AF 15,000.00
Department of Defense 12 UES INC SUB AF S825- 10,153.78
Department of Defense 12 Systran sub AF FA955 167,485.94
Department of Defense 12 UES INC SUB AF S-80 1,854.17
Department of Defense 12 OAI SUB ARMY #R-300 104,713.17
Department of Defense 12 UES INC SUB AF S825- 19,306.84
Department of Defense 12 ISSI SUB AF #SB03014 -973.85
Department of Defense 12 THOR TECH SUB AF #03 -4,360.06
Department of Defense 12 UNIV OF VA SUB AF GG -23,068.72
Department of Defense 12 CHARLES STARK DRAPER 0.05
Department of Defense 12 GE SUB NAVY RESEARCH 23,131.32
Department of Defense 12 General Dynamics US 675.62
Department of Defense 12 INFOSCITEX SUB ARMY 15,719.68
Department of Defense 12 GE SUB AF GE PO#200- 19,557.38
Department of Defense 12 GNL DYNAMICS SUB ARM 0.02
Department of Defense 12 UDRI SUB AF RSC05046 16,417.44
Department of Defense 12 SILOAM BIO SUB ARMY 88,533.14
Department of Defense 12 UDRI SUB ARMY RSC050 -2,094.24
Department of Defense 12 UES INC SUB AF S837 30,819.02
Department of Defense 12 INFOSCITEX SUB ARMY 15,451.92
Department of the Air Force 12.800 AVETEC SUB AF FA9550 108,704.58
Department of the Air Force 12.800 H. M. Jackson sub AF 113,034.27
Department of the Air Force 12.800 Korea Univ sub AF F 6,829.14
Department of the Air Force 12.800 Psychometrix sub AFO 18,568.87
Office of Naval Research 12.300 NC A&T SUB NAVY #441 29,899.25
TOTAL DEPARTMENT OF DEFENSE 1,553,213.04
Department of Education
Assistant Secretary for Innovation and Improvement 84.295 UNIV PENN SUB USED R 17,821.44
Assistant Secretary for Innovation and Improvement 84.295 UNIV PENN SUB USED R 106,233.91

74
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

Department of Education 84 HEZEL SUB ODE/USED 15,115.00

Department of Education 84 HEZEL SUB ODE/USED 71,220.93
Office of Elementary and Secondary Education 84.350 CAMPBELLSVILLE/USED 17,658.55
Office of Assistant Secretary for Vocational and Adult 84.048 KENTUCKY COMMUNITY & 17,600.00
Office of Elementary and Secondary Education 84.367 MSU/KCPE SUB USED Ef 15,000.00
Office of Elementary and Secondary Education 84.367 OBR SUB USED 06-11 95,242.49
Office of Elementary and Secondary Education 84.367 OBR SUB USED 06-12 I 57,731.42
Office of Elementary and Secondary Education 84.367 NKU SUB USED 2006-10 1,952.50
Office of Elementary and Secondary Education 84.367 NKU SUB USED 2006-10 -915.83
Office of Special Education and Rehabilitative Services 84.323 ODE SUB USED 062827- 47,097.97
Office of Special Education and Rehabilitative Services 84.323 ODE SUB USEDSCHL STU 5,420.25
Office of the Assistant Secretary for Educational Research 84.215 JASON PROJ/USED 0.01
Office of the Assistant Secretary for Educational Research 84.215 VCU SUB USED PO#2030 9,000.00
Office of the Assistant Secretary for Educational Research 84.215 OBR SUB USED HHS Gri 30,351.52
TOTAL DEPARTMENT OF EDUCATION 506,530.16
Department of Energy
Department of Energy 81 ANL sub DOE /Optim 6,051.89
Department of Energy 81 UT BATTELLE/DOE PO#4 -2,239.92
Department of Energy 81 UT-BATTELLE/DOE #400 -1,109.45
Department of Energy 81 MRI/DOE-Solar Decath 35,912.05
Department of Energy 81 ORISE/DOE/AFRL/HEP F 44,008.35
Department of Energy 81 ORISE/DOE/AFRL/HEP F 24,875.00
Department of Energy 81 SANDIA/DOE #778452 778.29
Department of Energy 81 ORISE/DOE/AFRL/HEP F 23,306.16
Department of Energy 81 ORISE/DOE/AFRL/HEP F 18,980.18
Department of Energy 81 ORISE/DOE/AFRL/HEP F -9,805.00
Department of Energy 81 SNL SUB DOE Interns 19,336.92
Department of Energy 81 B& Y-12, LLC SUB DOE 36,515.88
Department of Energy 81 UT-BATTELLE SUB DOE 42,863.39
Department of Energy 81 ORISE/DOE/AFRL/HEP F 2,399.67
Department of Energy 81 ANL SUB DOE Laser 19,577.56
Department of Energy 81 U CAL SUB DOE LLNL N 6,293.98
Department of Energy 81 TUSKEGEE U SUB DOE # 22,243.36
Department of Energy 81 HONEYWELL SUB DOE PO 6,593.92
Department of Energy 81 ORISE/DOE/AFRL/HEP O 38,664.00
Office of Energy Efficiency and Renewable Energy 81.119 EI sub Sub DE-FG01NT41175 1,444.01
Office of Fossil Energy 81.057 NM INST MINING / DOE 62,686.61
Office of Nuclear Energy 81.114 PENN STATE SUB DOE - -1,156.23
Office of Science 81.049 CPWR/DOE EH06004 HAN 106,609.36
Office of Science 81.049 CPWR/DOE EH06004 HAN 49,658.14
Office of Science 81.049 CPWR/DOE EH06004 HAN -5,535.43
TOTAL DEPARTMENT OF ENERGY 548,952.69

Department of Health and Human Services

Health Resources and Services Administration 93.822 CIN ST SUB HRSA 2D18 -10,045.68

75
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

Administration for Children and Families 93.558 TALBERT SUB TANF 200 -17,277.03
Administration for Children and Families 93.558 OBR SUB TEAP TANF 10,545.89
Administration for Children and Families 93.558 ODR SUB NICYF OH DEP 29,776.77
Administration for Children and Families 93.575 HCJFS/ODJFS SUB DHHS -4,876.12
Administration for Children and Families 93.575 HCJFS SUB NICYF 83,885.62
Administration for Children and Families 93.600 CHCCAA sub HHS/HEAD 674,307.55
Administration for Children and Families 93.600 CHCCAA sub HHS/HEAD 214,388.56
Administration for Children and Families 93.600 HCJFS #97824 -7,107.00
Administration for Children and Families 93.658 OH DPT JF SVCS G-67- 35,414.83
Agency for Healthcare Research and Quality 93.226 ETI SUB 1 R43 HL0769 -7,947.34
Agency for Healthcare Research and Quality 93.226 CHRF SUB HS016957-01 28,289.48
Centers for Disease Control and Prevention 93.161 U of M sub CDC TS000 25,860.10
Centers for Disease Control and Prevention 93.161 U of M sub CDC TS000 189,717.09
Centers for Disease Control and Prevention 93.184 SPEC OLYMPCS SUB CDC 1,052.26
Centers for Disease Control and Prevention 93.185 CHMC SUB CDC U38CCU5 94,708.33
Centers for Disease Control and Prevention 93.283 NCHH-07-1064 sub CDC 4,098.08
Centers for Disease Control and Prevention 93.283 ODH SUB CDC 3140012B 254,912.75
Centers for Disease Control and Prevention 93.283 AAMC SUB CDC MM-0971 98,905.43
Centers for Disease Control and Prevention 93.283 ODH SUB CDC 03140012 17,046.56
Centers for Disease Control and Prevention 93.283 VAMC CFBR SUB CDC CI 12,280.00
Centers for Disease Control and Prevention 93.283 AAMC SUB CDC CCU3192 39,608.81
Centers for Disease Control and Prevention 93.283 NCHH SUB CDC U59 CCU -22,163.59
Centers for Disease Control and Prevention 93.283 ODH 3140012AE07 1,734.59
Centers for Disease Control and Prevention 93.283 NCHH 07-1064 SUB CDC 2 4,750.72
Centers for Disease Control and Prevention 93.283 HFM SUB U01 DD000293 4,981.54
Centers for Disease Control and Prevention 93.283 HFM-SUB CDC U27/CCU 2,159.30
Centers for Disease Control and Prevention 93.940 CINTI BOH SUB CDC 48,993.85
Centers for Disease Control and Prevention 93.940 CINTI BOH SUB CDC 13,316.43
Centers for Disease Control and Prevention 93.940 CINTI BOH SUB CDC 418.16
Centers for Disease Control and Prevention 93.977 CBOH SUB CDC STD/HIV -2,117.79
Centers for Disease Control and Prevention 93.991 ODH SUB CDC 3140012E 77,838.19
Centers for Disease Control and Prevention 93.991 ODH SUB CDC 0314001 59,747.18
Centers for Medicare and Medicaid Services 93.779 OBR/ODJFS SUB DHHS-C 113,656.13
Department of Health and Human Services 93 ODJFS SUB NICYF G-89 6,354.06
Department of Health and Human Services 93 UNC-CH/ SUB N01 MH90 59,215.43
Department of Health and Human Services 93 SDSU SUB N01-HD-6-34 0.02
Department of Health and Human Services 93 DUMC SUB N01-AI05419 11,240.00
Department of Health and Human Services 93 U OF M SUB NS056975 108,812.00
Department of Health and Human Services 93 U OF M SUB NS056975 104,125.34
Department of Health and Human Services 93 UTHSC SUB N01-AR0225 76,464.28
Department of Health and Human Services 93 CHMC CORNELL SUB GM0 -11,935.51
Department of Health and Human Services 93 CWRU SUB NHLBI N01-H 240.18
Department of Health and Human Services 93 UOR/SUB DA015849 - 0 3,629.43

76
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

Department of Health and Human Services 93 SPINA BIFIDA Electro 19,245.25

Department of Health and Human Services 93 IU sub AUCD-CDC 30,334.00
Department of Health and Human Services 93 UKRF/5 R01 NS050311 38,035.30
Department of Health and Human Services 93 SDSU/ SUB N01-HD-6-3 30,202.06
Department of Health and Human Services 93 TERA CDC GS-10F-0369 3,632.51
Food and Drug Administration 93.103 MSSM SUB FD-R-002613 -78,786.36
Food and Drug Administration 93.103 MSSM SUB FD-R-002613 -23,382.94
Health Resources and Services Administration 93.107 MODEL STATE SUB HRS 54,594.19
Health Resources and Services Administration 93.107 MODEL STATE SUB HRSA 26,057.03
Health Resources and Services Administration 93.110 HFM SUB 6H30MC0015-1 10,843.70
Health Resources and Services Administration 93.134 LIFELINE SUB HRSA R3 100,272.39
Health Resources and Services Administration 93.134 LIFELINE SUB HRSA R3 80,463.14
Health Resources and Services Administration 93.134 LIFELINE SUB 5 H39 O -20,638.21
Health Resources and Services Administration 93.134 U PITT SUB HRSA 5 R 0.10
Health Resources and Services Administration 93.145 U PITT SUB 5 H4A HA0 2,461.90
Health Resources and Services Administration 93.145 U PITT SUB-AETC 5 250,859.99
Health Resources and Services Administration 93.145 U PITT SUB 5 H4A HA0 -3,004.46
Health Resources and Services Administration 93.145 U PITT SUB H4AAH0006 28,492.50
Health Resources and Services Administration 93.145 U PITT SUB-AETC 5 503.66
Health Resources and Services Administration 93.211 CASE WES SUB 1 D18 T -203.81
Health Resources and Services Administration 93.887 HRSA sub OBR-HHS 62,388.17
Health Resources and Services Administration 93.888 CWRU SUB HRSA # SPC5 288.91
Health Resources and Services Administration 93.888 CWRU SUB HRSA # SPC 208.86
Health Resources and Services Administration 93.918 CHN SUB HRSA Sub HA 225,349.87
Health Resources and Services Administration 93.918 CHN SUB HRSA Sub HA 594,056.20
Health Resources and Services Administration 93.918 CHN SUB HRSA Sub HA 45,919.80
Health Resources and Services Administration 93.969 UKRF sub HRSA 1D31HP 100,000.00
Health Resources and Services Administration 93.969 UKRF SUB D31 HP70120 -31.80
Health Resources and Services Administration 93.969 UKRF SUB D31 HP70120 -14.39
Health Resources and Services Administration 93.969 UK SUB D31 HP70120-0 -0.02
Health Resources and Services Administration 93.994 ODH SUB HRSA WOMENS 6,315.90
Health Resources and Services Administration 93.994 ODH SEE 1005550/HRSA -897.15
Health Resources and Services Administration 93.994 ODH SUB HRSA WOMENS 8,461.69
National Cancer Institute 93.393 U PITT SUB CA088041 11,616.00
National Cancer Institute 93.393 WASH UNIV SUB CA93643-05 14,340.19
National Cancer Institute 93.393 IARC SUB1R01CA124759 35,858.82
National Cancer Institute 93.393 WU SUB CA058554-14 48,527.64
National Cancer Institute 93.394 ARDENT SUB CA124283 53,395.58
National Cancer Institute 93.394 ACRIN 6666 SUB CA080 14,279.58
National Cancer Institute 93.394 ARDENT SUB CA124283 6,498.84
National Cancer Institute 93.395 NSAPB SUB NCI TFED 33,313.57
National Cancer Institute 93.395 DUKE UNIV SUB 7 U10 26,650.00
National Cancer Institute 93.395 GOG #27469-33 CA(04) 37,039.17

77
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Cancer Institute 93.395 NCCF SUB U10 CA9854 6,605.91

National Cancer Institute 93.395 SWOG04026 5 U10 CA32 -551.66
National Cancer Institute 93.395 RTOG SUB NIH CA21661 6,882.75
National Cancer Institute 93.395 UN MICH SUB SWOG -22,310.01
National Cancer Institute 93.395 UN MICH SUB SWOG -0.01
National Cancer Institute 93.396 OSU SUB CA84291 -1,151.66
National Cancer Institute 93.396 SKIRA SUB CA84292-09 19,146.17
National Cancer Institute 93.396 OSU SUB CA84291 633.76
National Cancer Institute 93.396 UNIV OF MICH SUB U24 33,698.12
National Cancer Institute 93.396 UMDNJ SUB CA113863-0 704.89
National Cancer Institute 93.396 SKIRA SUB CA84292-08 -8,644.85
National Cancer Institute 93.396 OSU U01 CA84291 41,084.06
National Cancer Institute 93.396 OSU SUB CA84291-07 -24,266.02
National Cancer Institute 93.399 NSABP STAR SUB NCI 1,584.02
National Cancer Institute 93.399 NSABP SUB NCI TIND 3,118.50
National Cancer Institute 93.399 NSABP STAR SUB NCI -2,970.00
National Cancer Institute 93.399 BCCA SUB CA96109-05 33,432.73
National Center for Research Resources 93.306 CINCY ZOO SUB R24 RR -54.39
National Center for Research Resources 93.333 MIAMI U SUB RR016301 13,019.93
National Center for Research Resources 93.333 CHMC SUB RR008084-14 12,806.18
National Center for Research Resources 93.333 CHMC SUB RR008084-15 12,578.79
National Center for Research Resources 93.333 CHMC SUB RR008084-13 0.01
National Center for Research Resources 93.389 CHMC SUB RR019498 - 04 22,886.76
National Center for Research Resources 93.389 CCHMC SUB 5U54RR0194 83,895.81
National Center for Research Resources 93.389 NHGRI PO#263-MJ-6121 79,352.76
National Eye Institute 93.867 PURDUE/EY018230-01 21.44
National Eye Institute 93.867 UIC/EY 00380 15,585.36
National Eye Institute 93.867 ORE HSU/EY013139-05A 95,889.63
National Heart, Lung, and Blood Institute 93.837 UTHC SUB R01HL74002 124,681.65
National Heart, Lung, and Blood Institute 93.837 OSURF N01-HR-76189 37,270.95
National Heart, Lung, and Blood Institute 93.837 VUMC sub R01HL088459 142,823.07
National Heart, Lung, and Blood Institute 93.837 VUMC SUB HL088459 29,233.37
National Heart, Lung, and Blood Institute 93.837 U OF IOWA SUB HL062984 -0.13
National Heart, Lung, and Blood Institute 93.837 UTHC SUB HL059586-6 -11,251.30
National Heart, Lung, and Blood Institute 93.837 NWU SUB HL059586-6 -15,283.45
National Heart, Lung, and Blood Institute 93.837 DUKE SUB HL63747-01A2 8,230.42
National Heart, Lung, and Blood Institute 93.837 U IOWA SUB HL062984 223,554.45
National Heart, Lung, and Blood Institute 93.837 UIC SUB HL79032-04 39,924.70
National Heart, Lung, and Blood Institute 93.837 UTHC SUB HL74002-03 -48,665.20
National Heart, Lung, and Blood Institute 93.837 CHRF SUB 2P01HL06977 35,634.57
National Heart, Lung, and Blood Institute 93.837 U IOWA SUB HL062984 37,890.90
National Heart, Lung, and Blood Institute 93.837 UTHC SUB HL059586-6 85,980.99
National Heart, Lung, and Blood Institute 93.837 NWU SUB HL74002 -8,426.54

78
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Heart, Lung, and Blood Institute 93.838 CHMC SUB HL058795-06 -2,156.11
National Heart, Lung, and Blood Institute 93.838 UPITT SUB HL074111-04 76,160.25
National Heart, Lung, and Blood Institute 93.838 CHMC SUB HL56285-09 0.01
National Heart, Lung, and Blood Institute 93.838 CHMC SUB HL058795 8,206.58
National Heart, Lung, and Blood Institute 93.838 CHMC SUB HL058795 3,508.85
National Heart, Lung, and Blood Institute 93.838 CHMC SUB HL072987-04 2,563.80
National Heart, Lung, and Blood Institute 93.838 UCSF SUB HL090335 19,115.03
National Heart, Lung, and Blood Institute 93.838 CHMC SUB HL072987-03 -0.01
National Heart, Lung, and Blood Institute 93.839 CHRF SUB HL070871-03S1 0.01
National Heart, Lung, and Blood Institute 93.839 CHRF SUB HL69779-04 5,053.46
National Heart, Lung, and Blood Institute 93.839 CHMC SUB HL70871-5 38,293.40
National Heart, Lung, and Blood Institute 93.839 UNI OF PITT HL068429 1,400.00
National Heart, Lung, and Blood Institute 93.839 CHMC SUB U54HL070871 -0.02
National Heart, Lung, and Blood Institute 93.839 CHMC SUB HL70871-5 197,994.87
National Heart, Lung, and Blood Institute 93.839 CHMC SUB U54-HL70871 0.01
National Heart, Lung, and Blood Institute 93.839 CHMC SUB U54HL070871 25,834.77
National Heart, Lung, and Blood Institute 93.839 CHMC SUB U54HL070871 4,252.49
National Heart, Lung, and Blood Institute 93.839 CHRF SUB HL69779-05 -32,715.67
National Heart, Lung, and Blood Institute 93.839 CHMC SUB HL070871-04 -0.04
National Heart, Lung, and Blood Institute 93.839 CHMC sub 496 M1Clini -19,231.62
National Heart, Lung, and Blood Institute 93.839 CHMC sub 497 M1Clini 4,732.00
National Institute of Arthriris, Musculoskeletal, and Skin 93.846 CARDIOENERGETICS/SUB -2,292.70
National Institute of Arthriris, Musculoskeletal, and Skin 93.846 CHMC SUB 5 R01 AR500 548.33
National Institute of Arthriris, Musculoskeletal, and Skin 93.846 UTHSC SUB AR46208-05 -0.17
National Institute of Arthriris, Musculoskeletal, and Skin 93.846 UTHSC SUB AR44888-08 0.04
National Institute of Arthriris, Musculoskeletal, and Skin 93.846 AR43584 SUB STANFORD -172.47
National Institute of Arthriris, Musculoskeletal, and Skin 93.846 UTHSC SUB AR44888-09 -17,501.17
National Institute of Arthriris, Musculoskeletal, and Skin 93.846 CHMC SUB 5 R01 AR050 18,263.82
National Institute of Arthriris, Musculoskeletal, and Skin 93.846 CHMC/ SUB 1 U01 AR05 7,722.35
National Institute of Arthriris, Musculoskeletal, and Skin 93.846 CHMC/SUB AR050688-02 12,109.78
National Institute of Arthriris, Musculoskeletal, and Skin 93.846 CHRF/SUB 1 R01 AR049 24,440.35
National Institute of Arthriris, Musculoskeletal, and Skin 93.846 CHMC/SUB AR050688-01 6,990.87
National Institute of Child Health and Human Development 93.865 CHRF SUB HD37249-09 6,229.73
National Institute of Child Health and Human Development 93.865 U PENN /T32 HD40135-04 5,105.92
National Institute of Child Health and Human Development 93.865 PURDUE SUB HD052112 34,785.65
National Institute of Child Health and Human Development 93.865 CWRU SUB HD49777-03 143,150.24
National Institute of Child Health and Human Development 93.865 CWRU SUB 5 R01 HD497 0.05
National Institute of Child Health and Human Development 93.865 CWRU/ SUB 5 R01 HD49 42,302.82
National Institute of Child Health and Human Development 93.865 UTMB SUB HD40151-06 19,603.11
National Institute of Child Health and Human Development 93.865 CHRF SUB HD37249-07 145.11
National Institute of Child Health and Human Development 93.865 U PENN/T32 HD40135-03 1,165.00
National Institute of Diabetes and Digestive and Kidney 93.847 CHMC SUB DK58182-04 -281.38
National Institute of Diabetes and Digestive and Kidney 93.847 CHMC/ SUB 482 DK0740 27,923.67

79
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Institute of Diabetes and Digestive and Kidney 93.847 MCG SUB 1 U24 DK0761 41,773.84
National Institute of Diabetes and Digestive and Kidney 93.847 MCG SUB 1 U24 DK0761 30,135.72
National Institute of Diabetes and Digestive and Kidney 93.847 CHMC SUB DK59183 0.04
National Institute of Diabetes and Digestive and Kidney 93.847 CWRU SUB N01-HC-9518 -816.58
National Institute of Diabetes and Digestive and Kidney 93.847 UOC SUB DK076134-01 10,064.06
National Institute of Diabetes and Digestive and Kidney 93.847 CWRU SUB N01-HC-9518 62,364.70
National Institute of Diabetes and Digestive and Kidney 93.847 CHMC SUB 482 DK07405 18,737.46
National Institute of Diabetes and Digestive and Kidney 93.847 SBIR W/ABT SUB DK078 34,685.26
National Institute of Diabetes and Digestive and Kidney 93.847 CWRU SUB N01-HC-9518 -962.56
National Institute of Diabetes and Digestive and Kidney 93.847 CWRU SUB N01-HC-9518 -124.41
National Institute of Diabetes and Digestive and Kidney 93.847 CWRU SUB N01-HC-9518 86,225.14
National Institute of Diabetes and Digestive and Kidney 93.847 CHMC SUB 482 DK07405 -18,532.72
National Institute of Diabetes and Digestive and Kidney 93.847 CWRU SUB N01-HC95181 -11,914.87
National Institute of Diabetes and Digestive and Kidney 93.847 CWRU SUB N01-HC-9518 120,017.92
National Institute of Diabetes and Digestive and Kidney 93.847 MCG/ SUB U24 DK07616 25,554.22
National Institute of Diabetes and Digestive and Kidney 93.848 BU SUB 5 R01 DK59642 -77,824.45
National Institute of Diabetes and Digestive and Kidney 93.848 ULRF/ SUB DK055030-0 23,635.68
National Institute of Diabetes and Digestive and Kidney 93.848 CHRF SUB 8 R01 DK068 42,411.98
National Institute of Diabetes and Digestive and Kidney 93.848 CHRF/5 R01 DK068463 -51,714.58
National Institute of Diabetes and Digestive and Kidney 93.848 CHRF/SUB DK068463-3 236,828.89
National Institute of Diabetes and Digestive and Kidney 93.848 CHRF/SUB 1 P30 DK078 20,443.95
National Institute of Diabetes and Digestive and Kidney 93.849 MERCATOR MED/SUB DK 4,970.92
National Institute of Diabetes and Digestive and Kidney 93.849 U OF FL SUB R01 DK05 22,178.36
National Institute for Occupational Safety and Health 93.262 UL SUB OH007650 86,359.73
National Institute for Occupational Safety and Health 93.262 OH07650-01A1 9,424.92
National Institute for Occupational Safety and Health 93.262 UKRF SUB OH07650-01A1 -2,100.51
National Institute for Occupational Safety and Health 93.262 UL SUB OH007650-04 -0.08
National Institute of Allergy and Infectious Disease 93.855 SSS SUB AI068636 10,851.50
National Institute of Allergy and Infectious Disease 93.855 CHMC sub AI055649 32,887.40
National Institute of Allergy and Infectious Disease 93.855 CHRF SUB AI068524 25,653.66
National Institute of Allergy and Infectious Disease 93.855 SSS sub AI068636-01 1,810.91
National Institute of Allergy and Infectious Disease 93.855 SSS SUB AI068636 49,302.66
National Institute of Allergy and Infectious Disease 93.855 CHMC sub AI055649 4,593.34
National Institute of Allergy and Infectious Disease 93.855 GLRCE sub AI057153 320.36
National Institute of Allergy and Infectious Disease 93.856 U CHICAGO SUB AI5715 -3,067.73
National Institute of Allergy and Infectious Disease 93.856 GLRCE-01 SUB NIAID 20,520.36
National Institute of Allergy and Infectious Disease 93.856 U CHI SUB 5 U54 AI57 41,432.00
National Institute of Allergy and Infectious Disease 93.856 SSS sub AI068636 1.16
National Institute of Allergy and Infectious Disease 93.856 GLRCE-01 SUB NIAID 41,100.98
National Institute of Allergy and Infectious Disease 93.856 CHMC 201B-M1/AI25459 -0.02
National Institute of Allergy and Infectious Disease 93.856 UCSF SUB AI52748-05 26,469.07
National Institute of Allergy and Infectious Disease 93.856 U CHI SUB 5 U54 AI57 18,483.98
National Institute of Allergy and Infectious Disease 93.856 U CHI SUB 5 U54 AI57 18,232.34

80
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures
National Institute of Allergy and Infectious Disease 93.856 UOM SUB AI57164-02 -2,969.46
National Institute of Allergy and Infectious Disease 93.856 CHMC 430 SUB AI056927 9,210.57
National Institute of Allergy and Infectious Disease 93.856 CHMC SUB AI32121-14 68,060.60
National Institute of Allergy and Infectious Disease 93.856 SSS SUB AI068636 3,482.69
National Institute of Allergy and Infectious Disease 93.856 CHMC/N01-AI25459 -1,366.87
National Institute of Allergy and Infectious Disease 93.856 CHMC 430 SUB AI056927 5,586.62
National Institute of Environmental Health Sciences 93.113 CU Sub ES015905 COLU 50,631.37
National Institute of Environmental Health Sciences 93.113 CCHMC Sub 1U01ES0160 9,510.60
National Institute of Environmental Health Sciences 93.113 ILL U SUB ES015584 - 70,681.85
National Institute of Environmental Health Sciences 93.113 ILL UNIV. SUB ES012281-3 1,564.40
National Institute of Environmental Health Sciences 93.113 UAB sub ES016003-01 27,961.87
National Institute of Environmental Health Sciences 93.113 CHRF SUB 1 R01 ES014 15,846.16
National Institute of Environmental Health Sciences 93.115 GCOH SUB ES12093-01, 30,275.72
National Institute of Environmental Health Sciences 93.115 CHS Sub NIH R01ES01 14,919.81
National Institute of Environmental Health Sciences 93.115 CHRF/ES11261-04 -2,278.40
National Institute of Environmental Health Sciences 93.115 Pittsburgh Sub ES015 44,902.07
National Institute of Environmental Health Sciences 93.115 CHMC Sub T32 ES0070 11,144.00
National Institute of Environmental Health Sciences 93.115 CHMC SUB 1 R21 ES012 1,531.39
National Institute of Environmental Health Sciences 93.115 CHMC SUB ES11261-05 377.52
National Institute of Environmental Health Sciences 93.123 DARTMOUTH SUB ES0138 -21,277.56
National Institute of Environmental Health Sciences 93.142 ICWU SUB ES06162- 16 3,484.85
National Institute of Environmental Health Sciences 93.142 ICWU SUB ES06162-15 7,625.44
National Institute of Environmental Health Sciences 93.142 ICWU SUB ES09758-16 3,259.31
National Institute of Environmental Health Sciences 93.142 ICWU SUB ES06162-16 47,131.57
National Institute of Environmental Health Sciences 93.142 ICWU SUB ES09758-14 332.22
National Institute of Environmental Health Sciences 93.142 ICWU SUB ES09758-15 899.07
National Institute of Environmental Health Sciences 93.142 ICWU SUB ES06162-HDP 470.09
National Institute of Environmental Health Sciences 93.142 ICWU SUB ES06162-13 -4,035.13
National Institute of General Medical Sciences 93.821 NCSU SUB GM065156 01 44,014.92
National Institute of General Medical Sciences 93.859 U WASH SUB GM032165 1,358.48
National Institute of Health 93.233 CHMC Sub HL080670/NI 46,229.89
National Institute of Mental Health 93.242 CHRF/ SUB 5 R01 MH07 9,518.73
National Institute of Mental Health 93.242 SUB/P2D 1 R43 MH0795 44,093.60
National Institute of Mental Health 93.242 CHRF SUB MH073816-02 -0.09
National Institute of Mental Health 93.242 CHRF SUB MH074033-01 0.03
National Institute of Mental Health 93.242 CHRF SUB MH073816-03 3,673.01
National Institute of Mental Health 93.242 UCO SUB MH62456-01,0 -4,234.21
National Institute of Mental Health 93.242 CHRF SUB 5 R01 MH074 53,932.65
National Institute of Neurological Disorders and Stroke 93.853 MAYO/R01 NS039987-08 3,402.64
National Institute of Neurological Disorders and Stroke 93.853 YALE/NS044876-03 4,624.48
National Institute of Neurological Disorders and Stroke 93.853 YALE/NS044281-05 142,641.17
National Institute of Neurological Disorders and Stroke 93.853 CHMC SUB NS45911 -4,270.89
National Institute of Neurological Disorders and Stroke 93.853 U of Fla/NS038455-07 7,551.67

81
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University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

National Institute of Neurological Disorders and Stroke 93.853 UMDNJ SUB NS038384-06 4,500.00
National Institute of Neurological Disorders and Stroke 93.853 WASH U/NS042167-01 56,945.57
National Institute of Neurological Disorders and Stroke 93.853 YALE/NS044876-04 13,334.57
National Institute of Neurological Disorders and Stroke 93.853 YALE/NS044876-04 181,674.65
National Institute of Neurological Disorders and Stroke 93.853 UTHS SUB NS43353-03 -2.74
National Institute of Neurological Disorders and Stroke 93.853 CHMC/5 R21 NS051798 3,598.98
National Institute of Neurological Disorders and Stroke 93.853 CKI SUB R43NS057890 11,718.92
National Institute of Neurological Disorders and Stroke 93.853 YALE SUB NS044281-03 9,599.10
National Institute of Neurological Disorders and Stroke 93.853 MAYO/R01 NS039987-07 1,859.00
National Institute of Neurological Disorders and Stroke 93.853 U of FL sub NS038455 28,136.09
National Institute of Neurological Disorders and Stroke 93.853 U.Roch/ NS050095 2,618.59
National Institute of Neurological Disorders and Stroke 93.853 CHMC SUB NS45911-01A1 4.14
National Institute of Neurological Disorders and Stroke 93.853 U of M sub NS056975 25,402.72
National Institute of Neurological Disorders and Stroke 93.853 YALE/NS044876-03 14,115.90
National Institute of Neurological Disorders and Stroke 93.853 U of M sub 1 U01 NS0 136,878.15
National Institute of Neurological Disorders and Stroke 93.853 U. Rochester/NS03716 6,169.90
National Institute of Neurological Disorders and Stroke 93.853 U.Roch/5 U01 NS05009 8,775.02
National Institute of Neurological Disorders and Stroke 93.853 MAYO SUB NS028492-12 2,425.20
National Institute of Neurological Disorders and Stroke 93.853 MAYO/NS042759 IGF-1A 1,417.11
National Institute of Neurological Disorders and Stroke 93.853 JHU SUB NS046309-0 32,785.23
National Institute of Neurological Disorders and Stroke 93.853 CHMC SUB NS051798 0.06
National Institute of Neurological Disorders and Stroke 93.853 CHMC SUB U01 NS04591 -5,409.28
National Institute of Neurological Disorders and Stroke 93.853 YALE/NS044281-04 -16,216.49
National Institute of Neurological Disorders and Stroke 93.853 U RCHSTR SUB NS37167 843.75
National Institute of Neurological Disorders and Stroke 93.853 U OF FLA SUB NS038455 -520.10
National Institute of Neurological Disorders and Stroke 93.853 CHMC SUB U01 NS04591 -20,329.27
National Institute of Neurological Disorders and Stroke 93.853 MA Gen Hosp Sub NS052592 64.29
National Institute of Nursing 93.361 U Penn SUB NR005352 4,762.62
National Institute of Nursing 93.361 U Penn SUB NR005352 1,870.70
National Institute of Nursing 93.361 U Penn SUB NR005352 4,039.87
National Institute on Aging 93.866 IU SUB P30 AG010133 17,922.81
National Institute on Aging 93.866 UKRF/5 P01 AG10836 1,583.38
National Institute on Aging 93.866 IU SUB P30 AG010133 28,188.44
National Institute on Aging 93.866 CHMC/5 R21 AG025149 7,768.87
National Institute on Aging 93.866 UKRF SUB 5P01AG10836 7,835.59
National Institute on Aging 93.866 U of CO sub AG026529 21,662.43
National Institute on Aging 93.866 CHMC/1 R21 AG025149 -6,791.20
National Institute on Aging 93.866 LOTUS GRP S/AG023982 -630.41
National Institute on Deafness and Other Communication 93.173 OSMIC SUB DC006369-2 13,345.79
National Institute on Deafness and Other Communication 93.173 CW/SUB-R21 DC007866- 38,994.22
National Institute on Deafness and Other Communication 93.173 COMPUSNIFF SUB 7 R44 8,931.86
National Institute on Drug Abuse 93.279 KCL/ SUB 2 R01 DA004 18,121.41
National Institute on Drug Abuse 93.279 SUB/P2D DA023294-01 43,489.79
National Institute on Drug Abuse 93.279 CHRF SUB DA019965-1 -0.01
National Institute on Drug Abuse 93.279 UOR SUB DA019434-04 2,123.19
National Institute on Drug Abuse 93.279 BREF/NIDA-CSP-1022 174,846.38
National Institute on Drug Abuse 93.279 CHRF SUB DA019965-02 10,131.00
National Institute on Drug Abuse 93.279 PHASE 2 DISC SUB DA -0.02
National Institute on Drug Abuse 93.279 UOR/ SUB DA018697-04 14,023.14
National Institutes of Health 93.286 EB004527-04 Sub UMICH 3,057.93

82
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures
National Institutes of Health 93.286 Cardio SUB EB001579 51,102.70
National Institutes of Health 93.286 UMich EB004527-3 104,124.80
National Institutes of Health 93.286 U MICHIGAN SUB EB004527 2,001.06
Office of The Secretary 93.007 WAKE FOREST SUB NHLBI -0.05
Office of The Secretary 93.007 WFUHS SUB/WHI-MS NHL 6,386.91
Office of The Secretary 93.007 WAKE FOREST SUB NHLBI -86.92
Office of The Secretary 93.007 WAKE FOREST SUB NHLBI -433.43
Substance Abuse and Mental Health Services Administration 93.243 CCJC SUB 5 H79 TI017 40,287.79
Substance Abuse and Mental Health Services Administration 93.243 CCJC SUB 5 H79 TI017 47,189.78
Substance Abuse and Mental Health Services Administration 93.959 ODADAS SUB SAMHSA OR 733,566.47
Substance Abuse and Mental Health Services Administration 93.959 ODADAS SUB SAMHSA #9 1,779.39
Substance Abuse and Mental Health Services Administration 93.959 ODADAS SUB SAMHSA 99 216,211.72
Substance Abuse and Mental Health Services Administration 93.959 ODADAS SUB SAMHSA #9 13,801.92
TOTAL DEPARTMENT OF HEALTH AND HUMAN SERVICES 9,951,892.12
Department of Homeland Security
Department of Homeland Security 97.065 NANOLYTICS SUB DOD 12,059.68
TOTAL DEPARTMENT OF HOMELAND SECURITY 12,059.68
Department of Interior
Geological Survey 15.805 OSURF sub USGS 06HQG 22,330.99
Geological Survey 15.807 USC / SUB USGS 07HQ 12,098.57
TOTAL DEPARTMENT OF INTERIOR 34,429.56
Department of Justice
Bureau of Justice Assistance 16.579 OCJS SUB DOJ TASER 12,056.98
Bureau of Justice Assistance 16.579 OCJS SUB DOJ TASER S 17,428.69
Bureau of Justice Assistance 16.579 2004 2005-DS/JG19-19 78,357.91
Department of Justice 16 UNISYS CORP SUB DOJ 134,737.49
National Institute of Corrections 16.602 NIC SUB DOJ 03C25CIZ -1,881.14
National Institute of Justice 16.562 AFFYMETRIX SUB NIJ 2 53,410.46
Office of Justice 16.585 CUYAHOGA CO SUB DOJ 3,766.77
Office of Justice 16.588 OCJS SUB DOJ 2006-JG 18,496.00
Office of Justice Programs 16.738 OCJS CIRV SUB DOJ 20 49,780.70
Office of Justice Programs 16.738 OCJS CIRV SUB DOJ 20 23,611.50
Office of Justice Programs 16.738 ODPS SUB DOJ 2005-JG -1,264.23
Office of Juvenile Justice and Delinquency Prevention 16.523 ODYS SUB OJJDP 2006 -1,552.45
Office of Juvenile Justice and Delinquency Prevention 16.523 FRANKLIN CTY SUB DOJ -361.78
TOTAL DEPARTMENT OF JUSTICE 386,586.90

83
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

Department of Labor
Department of Labor 17 OSHA/DOL Q079F25333 2,135.20
Department of Labor 17 CPWR/DOL-J059E22270 22,170.33
Department of Labor 17 CPWR/ DOL - J059E222 50,131.94
Department of Labor 17 BUTLER CTY JOB / DOL 646,497.68
Department of Labor 17 CPWR SUB DOL J059E22 -868.48
TOTAL DEPARTMENT OF LABOR 720,066.67
Department of State
Bureau of Educational and Cultural Affairs 19.401 CIES - Fullbright / 17,852.50
TOTAL DEPARTMENT OF STATE 17,852.50
Department of Transportation
Department of Transportation 20 BAKER 11342 SUB ODOT -0.03
Department of Transportation 20 BAKER 11342 SUB ODOT -0.03
Federal Highway Administration 20.205 ODOT #11855 SUB FHWA 13,480.12
Federal Highway Administration 20.205 ODOT 14811/FHWA DIST 18,499.73
Federal Highway Administration 20.205 ODOT 20589, SUB FHWA -0.04
Federal Highway Administration 20.205 ODOT 9879 SUB FHWA -24.08
Federal Highway Administration 20.205 ODOT #11009 SUB FHWA -0.01
Federal Highway Administration 20.205 ODOT 20590, SUB FHWA -0.01
Federal Highway Administration 20.205 UIUC SUB OF US DOT 59,569.83
Federal Highway Administration 20.205 ODOT 11859 SUB FHWA -0.01
Federal Highway Administration 20.205 ODOT 14811/FHWA DIST 20,187.52
Federal Highway Administration 20.205 ODOT 20397 SUB FHWA -0.20
Federal Highway Administration 20.205 NAS SUB DOT NCHRP HR 119,921.51
Federal Highway Administration 20.205 ODOT 9879 SUB FHWA -0.01
Federal Highway Administration 20.205 ODOT #11569 SUB FHWA 132,811.84
Federal Highway Administration 20.205 ODOT #20359 SUB FHWA 3,237.84
Federal Highway Administration 20.205 ODOT #9894 SUB FHWA -236.64
Federal Highway Administration 20.205 ODOT 21104 SUB FHWA 4,473.40
Federal Highway Administration 20.205 ODOT 20979 SUB FHWA 45,268.07
Federal Highway Administration 20.205 ODOT 20979 SUB FHWA 0.02
Federal Highway Administration 20.215 ODOT 20983 SUB FHWA 3,192.87
Research and Special Programs Administration 20.701 MSU SubODOT 61-5678A 58,230.73
Research and Special Programs Administration 20.701 UNIV WIS SUB DOT 28,600.61
Research and Special Programs Administration 20.701 UNIV WIS SUB FHWA A8 19,291.80
Research and Special Programs Administration 20.701 UNIV AKRON SUB USDOT 9,881.03
TOTAL DEPARTMENT OF TRANSPORTATION 536,385.86
Environmental Protection Agency
Environmental Protection Agency 66 Pegasus sub EPA:52UC 49,095.98
Environmental Protection Agency 66 Pegasus sub EPA: 46U 6,731.34
Environmental Protection Agency 66 HEI SUB EPA 4701-RFA 212.56
Environmental Protection Agency 66 Pegasus sub EPA: 05U 1,500.00
Environmental Protection Agency 66 Pegasus sub EPA: 22U 4,560.29
Environmental Protection Agency 66 SHAW ENV SUB EPA PO# 208.75
Environmental Protection Agency 66 Pegasus sub EPA: 07U 13,314.93
Environmental Protection Agency 66 Pegasus sub EPA:52T1 12,692.90
Environmental Protection Agency 66 Pegasus sub EPA: 02U 40,336.48
Environmental Protection Agency 66 Pegasus sub EPA: 12U 26,049.60
Environmental Protection Agency 66 Pegasus sub EPA: 06U 172,585.11
Environmental Protection Agency 66 Pegasus sub EPA:67UC 27,743.47
Environmental Protection Agency 66 Pegasus sub EPA: 18U 3,419.45
84
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures
Environmental Protection Agency 66 Pegasus sub EPA: 44U 14,325.11
Environmental Protection Agency 66 Pegasus sub EPA: 45U 14,516.36
Environmental Protection Agency 66 Pegasus sub EPA: 29U 10,804.27
Environmental Protection Agency 66 Pegasus sub EPA: 23U 17,101.26
Environmental Protection Agency 66 Pegasus sub EPA: 37U 514.35
Environmental Protection Agency 66 Pegasus sub EPA: 30U 1,784.33
Environmental Protection Agency 66 OEEF SUB EPA 06M-022 502.03
Environmental Protection Agency 66 Pegasus sub EPA: 20U 51,550.70
Environmental Protection Agency 66 Pegasus sub EPA: 14U 40,968.22
Environmental Protection Agency 66 Tisch Environ sub EP 15,208.07
Environmental Protection Agency 66 Pegasus sub EPA: 17U 11,842.14
Environmental Protection Agency 66 Pegasus sub EPA: 04U 18,505.90
Environmental Protection Agency 66 Pegasus sub EPA: 05U 33,992.51
Environmental Protection Agency 66 Pegasus sub EPA: 03U 3.45
Environmental Protection Agency 66 Pegasus sub EPA: 08U 15,937.14
Environmental Protection Agency 66 Pegasus sub EPA: 24U 41,957.45
Environmental Protection Agency 66 Pegasus sub EPA: 17U 48,839.66
Environmental Protection Agency 66 Pegasus sub EPA: 40U -6,262.83
Environmental Protection Agency 66 AWWA SUB EPA RF 0285 -2.72
Environmental Protection Agency 66 CHRF SUB R82938901-0 -72.52
Environmental Protection Agency 66 Pegasus sub EPA: 31U 18,848.16
Environmental Protection Agency 66 SHAW ENV SUB EPA EP 49,997.64
Environmental Protection Agency 66 Pegasus sub EPA: 36U 43,778.30
Environmental Protection Agency 66 Pegasus sub EPA: 36U 64,023.31
Environmental Protection Agency 66 Pegasus sub EPA: 31U 48,580.92
Environmental Protection Agency 66 Pegasus sub EPA: 30U 1,496.52
Environmental Protection Agency 66 Pegasus sub EPA: 51U 9,019.25
Environmental Protection Agency 66 Pegasus sub EPA: 20U 70,383.88
Environmental Protection Agency 66 Pegasus sub EPA: 47U 30,460.68
Environmental Protection Agency 66 Pegasus sub EPA: 12U 50,443.93
Environmental Protection Agency 66 Pegasus sub EPA: 11U 35,634.98
Environmental Protection Agency 66 Pegasus sub EPA: 05U 49,723.26
Environmental Protection Agency 66 Pegasus sub EPA: 06U 335,580.59
Environmental Protection Agency 66 Pegasus sub EPA: 14U 96,804.01
Environmental Protection Agency 66 Pegasus sub EPA: 02U 73,041.26
Environmental Protection Agency 66 Pegasus sub EPA: 38U 72,034.83
Environmental Protection Agency 66 Pegasus sub EPA: 37U 45,149.24
Environmental Protection Agency 66 Pegasus sub EPA: 66U 55,671.30
Environmental Protection Agency 66 MALCOLM SUB EPA PIRN -2,349.93
Environmental Protection Agency 66 Pegasus sub EPA: 56U 60,721.67
Environmental Protection Agency 66 Pegasus sub EPA: 51U 29,092.94
Environmental Protection Agency 66 Pegasus sub EPA: 53U 48,432.00
Environmental Protection Agency 66 Pegasus sub EPA:52UC 94,839.47
Environmental Protection Agency 66 Pegasus sub EPA: 44U 2,411.76
Environmental Protection Agency 66 Pegasus sub EPA: 45U 3,114.13
Environmental Protection Agency 66 Pegasus sub EPA: 04U -71.34
Environmental Protection Agency 66 Pegasus sub EPA: 47U 52,248.38
Environmental Protection Agency 66.509 EMORY UNIV/EPA-RD-83 26,629.18
Environmental Protection Agency 66.509 UC BERKELEY SUB EPA -2,989.73
Environmental Protection Agency 66.509 EMORY UNIV/EPA-RD-83 44,455.12
Office of Research and Development 66.500 HDR/ESS SUB EPA ENGI 10,902.73
TOTAL ENVIRONMENTAL PROTECTION AGENCY 2,208,574.18
85
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures
National Aeronautics & Space Administration
National Aeronautics & Space Administration 43 NSBRI/JSC/NASA DETER 40,890.74
National Aeronautics & Space Administration 43 GE SUB NASA LOW NOIS 38,341.59
National Aeronautics & Space Administration 43 AVANT SUB NASA SBIR 14,901.67
National Aeronautics & Space Administration 43 PURDUE U SUB NASA NN 10,433.03
National Aeronautics & Space Administration 43.001 OSURF(NASA-PROP 21) 4,472.05
National Aeronautics & Space Administration 43.001 OSURF(NASA-PROP 21) -0.10
National Aeronautics & Space Administration 43.001 NNH06CC28C SUB NASA 23,916.61
National Aeronautics & Space Administration 43.001 WSU SUB OAI SUB NASA -16.02
National Aeronautics & Space Administration 43.001 OSURF(NASA-PROP 21) -0.29
National Aeronautics & Space Administration 43.001 AVETEC sub NASA AV07 49,140.75
National Aeronautics & Space Administration 43.001 OAI/NASA MOD#3 R3001 0.04
National Aeronautics & Space Administration 43.001 OSURF/NASA-GUTMARK-J 20,924.44
National Aeronautics & Space Administration 43.001 DCES/NASA UGRAD RES 29,783.62
National Aeronautics & Space Administration 43.001 OSURF(NASA-PROP 21) -0.05
National Aeronautics & Space Administration 43.002 NASA SUB TEES #66575 -250.82
TOTAL NATIONAL AERONAUTICS & SPACE ADMINISTRATION 232,537.26
National Foundation on the Arts and the Humanities
Institute of Museum and Library Services 45.310 KENT ST SUB IMLS CL- -563.00
TOTAL NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES -563.00
National Science Foundation
International Science and Engineering (OISE) 47.079 UND SUB NSF OISE-073 36,098.18
International Science and Engineering (OISE) 47.079 UND SUB NSF OISE-073 11,503.58
Directorate for Education and Human Resources 47.076 WSU SUB NSF DUE-0618 6,085.93
Directorate for Education and Human Resources 47.076 KSU sub NSF ESI-0628 6,226.93
Directorate for Engineering 47.041 U OF VA SUB NSF CMS0 5,959.43
Directorate for Engineering 47.041 UWM Award NSF 011751 59,341.54
Directorate for Engineering 47.041 SBIR EDAptive sub NS 24,792.23

86
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University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

Directorate for Engineering 47.041 U OF COLO SUB NSF-15 29,643.23

Directorate for Engineering 47.041 ULRF SUB NSF BES-033 1,362.61
Directorate for Engineering 47.041 USF SUB NSF 7,500.00
Directorate for Engineering 47.041 UWM K087570 sub NSF 14,449.79
Directorate for Engineering 47.041 UM SUB NSF EEC-01325 34,635.61
Directorate for Mathematical and Physical Sciences 47.049 UND sub NSF PHY-0715 641.57
Directorate for Mathematical and Physical Sciences 47.049 OSURF NSF SUB 60004 19,852.65
Directorate for Social, Behavorial and Economic Sciences 47.075 UCLA - sub NSF NIRT- 14,892.51
Office of the Director 47.078 NSF SUB UNIV ALASKA -0.04
TOTAL NATIONAL SCIENCE FOUNDATION 272,985.75
Nuclear Regulatory Commission
Nuclear Regulatory Commission 77.006 OSURF Sub NRC-38-07- 30,290.61
TOTAL NUCLEAR REGULATORY COMMISSION 30,290.61
TOTAL RESEARCH AND DEVELOPMENT - PASS THROUGH FUNDS 17,017,267.60
TOTAL RESEARCH AND DEVELOPMENT CLUSTER 137,747,418.04
OTHER CLUSTER
OTHER – DIRECT FUNDS
Department of Education
Trio Cluster
Office of the Assistant Secretary for Postsecondary Education 84.042 USED P042A051055 SSS 270,096.74
Office of the Assistant Secretary for Postsecondary Education 84.044 USED P044A020499 ED 280.00
Office of the Assistant Secretary for Postsecondary Education 84.044 USED P044A060201-01 278,858.29
Office of the Assistant Secretary for Postsecondary Education 84.047 USED P047A080557 UPW 6,960.28
Office of the Assistant Secretary for Postsecondary Education 84.047 USED UPWARD BOUND P0 186,979.71
Office of the Assistant Secretary for Postsecondary Education 84.047 USED P047A040244A 517,400.49
Office of the Assistant Secretary for Postsecondary Education 84.047 USED UPWARD BOUND 100,212.24
Office of Assistant Secretary for Postsecondary Education 84.066 USED EOC PROG P066A0 37,271.29
Office of Assistant Secretary for Postsecondary Education 84.066 USED P066A70145-01 177,905.00
Office of Assistant Secretary for Postsecondary Education 84.066 USED H325K070307 187,426.26
Office of Assistant Secretary for Postsecondary Education 84.066 USED P153A070026 46,598.04
TOTAL TRIO CLUSTER 1,809,988.34
Other Department of Education:
Office of Special Education and Rehabilitative Services 84.325 USED H325D030059 104,617.75
Office of Special Education and Rehabilitative Services 84.327 USED H327A060006 124,795.13
Office of Special Education and Rehabilitative Services 84.327 USED H325T070001 -01 53,380.59
Office of the Assistant Secretary for Postsecondary Education 84.116 USED P116Z050329 FIP 39,047.19
Office of the Assistant Secretary for Postsecondary Education 84.116 USDE FIPSE P116N0400 21,606.90
Office of the Assistant Secretary for Postsecondary Education 84.116 USED FIPSE P116B0402 74,483.91
Office of the Assistant Secretary for Postsecondary Education 84.116 USED P116J020017 31,222.80
Office of the Assistant Secretary for Postsecondary Education 84.116 USED P116N040013 FIP 13,641.25

87
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures

Office of the Assistant Secretary for Postsecondary Education 84.217 USED P217A070026 1,552.01
Office of the Assistant Secretary for Postsecondary Education 84.217 USED P217A030205 72,139.87
Office of the Assistant Secretary for Postsecondary Education 84.334 USED P334A020113 3,445,058.65
TOTAL OTHER DEPARTMENT OF EDUCATION 3,981,546.05

TOTAL DEPARTMENT OF EDUCATION 5,791,534.39

Department of Defense
Department of the Air Force 12.800 AF FA9550-08-1-0032 10,161.93
TOTAL DEPARTMENT OF DEFENSE 10,161.93

Department of Homeland Security

Department of Homeland Security 97.019 DHS FEMA-2003-CA-030 -17,842.38
Federal Emergency Management Agency 97.103 EME-2007-CA-0298 10,336.86
TOTAL DEPARTMENT OF HOMELAND SECURITY -7,505.52
Department of Interior
National Park Service 15.923 MT-2210-05-NC-12 -1,818.25
TOTAL DEPARTMENT OF INTERIOR -1,818.25
Environmental Protection Agency
Environmental Protection Agency 66.606 EPA X-83042101-0 5,000.00
Office of Grants and Debarment 66.607 EPA T-83041001 10,028.66
Office of Grants and Debarment 66.607 EPA T-83292901 RESEA 537,657.42
Office of Research and Development 66.514 EPA Star Fellowship 13,390.00
TOTAL ENVIRONMENTAL PROTECTION AGENCY 566,076.08
National Foundation on the Arts and the Humanities
National Endowment for the Humanities 45.149 NEH PA 51541-06 4,500.00
National Endowment for the Humanities 45.162 NEH EE-50122-04 RIOR 19,392.63
TOTAL NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES 23,892.63
National Science Foundation
Directorate for Education and Human Resources 47.076 NSF DUE-0434086 15,038.88
Directorate for Engineering 47.041 NSF DUE-0630990 S-ST 155,081.44
Directorate for Engineering 47.041 NSF CHE-0754114 REU 47,003.55
Directorate for Engineering 47.041 NSF ESI-0552126 IPA 10,821.19
Directorate for Engineering 47.041 NSF EEC-0227801-03 30,876.50
Directorate for Engineering 47.041 NSF BES-0229135 REU -0.01
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0452387 REU 30,840.28
TOTAL NATIONAL SCIENCE FOUNDATION 289,661.83
Office of Personnel Management
Office of Personnel Management 27.011 NASA IPA - DANSBERRY 108,777.67
TOTAL OFFICE OF PERSONNEL MANAGEMENT 108,777.67
TOTAL OTHER - DIRECT FUNDS 6,780,780.76
OTHER - PASS THROUGH FUNDS
Corporation for National Service
Corporation for National and Community Service 94.004 OTTERBEIN SUB CNCS 112,927.50
TOTAL CORPORATION FOR NATIONAL SERVICE 112,927.50
Department of Agriculture
Food and Nutrition Service 10.558 ODE CACFP SUB USDA F 40,214.90
Food and Nutrition Service 10.558 ODE CACFP SUB USDA F 5,401.22
TOTAL DEPARTMENT OF AGRICULTURE 45,616.12
Department of Defense
Army Research Office 12.431 AAS SUB ARMY 07-91, 5,204.16

88
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures
Department of Defense 12 UTC SUB AF Pratt & W 27,779.44
Department of Defense 12 Tribologix SUB AF 06 -7,448.12
Department of Defense 12 MICROPHASE SUB AF #1 -0.22
Department of Defense 12 UTC SUB AF Pratt & W 10,537.27
Department of Defense 12 Anteon Sub AF TAA #2 2,080.00
Department of Defense 12 UTC SUB AF Pratt & W 22,808.15
Department of Defense 12 UTC SUB AF Pratt & W 28,026.23
TOTAL DEPARTMENT OF DEFENSE 88,986.91
Department of Education
Department of Education 84 ODE SUB USED SAELP G 17,098.10
Department of Education 84 ODE SUB USED SAELP G 22,870.67
Federal Student Aid 84.268 OH DPT JF SVCS CWWPE -4,918.50
National Institute for Literacy 84.255 PADC SUB USED Evalu 36,208.12
Office of Elementary and Secondary Education 84.186 ODE SUB USED ODADAS 0.05
Office of Elementary and Secondary Education 84.186 OPERC SUB USED ITLE -78,792.21
Office of Elementary and Secondary Education 84.186 ODE SUB USED ODADAS -2,255.15
Office of Elementary and Secondary Education 84.186 OPERC SUB USED ITLE 35,598.95
Office of Elementary and Secondary Education 84.298 ODE SUB USED ABC SCH -0.07
Office of Elementary and Secondary Education 84.298 ODE- SUB USED - ABC 40,663.70
Office of Elementary and Secondary Education 84.298 ODE SUB USED ABC Ini 0.10
Office of Elementary and Secondary Education 84.357 CPS SUB USED SUP ED 188,544.84
Office of Assistant Secretary for Vocational and Adult 84.048 USED/ODE-VENT-07-UC- 2,000.00
Office of Elementary and Secondary Education 84.367 OBR 05-09 ITQ / USED 456.91
Office of Elementary and Secondary Education 84.367 OBR SUB USED 07-08 I 2,569.60
Office of Elementary and Secondary Education 84.367 OBR SUB USED 07-09 I 3,167.36
Office of Innovation & Improvement 84.330 ODE CI667-CALC-07-02 68,667.83
Office of Special Education & Rehabilitative Services 84.027 ODE SUB USED 062927- -0.16
Office of Special Education and Rehabilitative Services 84.173 ODE CORE CURR-FED PR -14,052.03
Office of Special Education and Rehabilitative Services 84.323 ODE/USED STATE IMPRO -29.24
Office of Special Education and Rehabilitative Services 84.323 ODE/USED SIG-SRS0612 61,097.01
Office of the Assistant Secretary for Postsecondary Education 84.116 RFCUNY SUB USED 12,960.81
Office of the Assistant Secretary for Postsecondary Education 84.334 OBR-OCAN-GEAR UP-SUB 72,971.24
Office of the Assistant Secretary for Postsecondary Education 84.334 OBR-OCAN SUB USED P3 18,287.32
Office of Vocational and Adult Education 84.243 ODE/USED TECH PREP F 19,579.30
Office of Vocational and Adult Education 84.346 ODE SUB USED ACRN TE -0.01
TOTAL DEPARTMENT OF EDUCATION 502,694.54
Department of Energy
Department of Energy 81 STOLLER/DOE FERNALD 224,065.77
Department of Energy 81 KRELL INST SUB DOE C 12,523.00
Office of Nuclear Energy 81.114 SCSU SUB DOE 04-4442 88,941.61
TOTAL DEPARTMENT OF ENERGY 325,530.38
Department of Justice
Bureau of Justice Assistance 16.580 OSU SUB DOJ -21.60
Executive Office for Weed and Seed 16.595 Madisonville SUB DOJ 2,338.33
Office of Juvenile Justice and Delinquency Prevention 16.523 ODYS SUB OJJDP B-101 -1,029.66
TOTAL DEPARTMENT OF JUSTICE 1,287.07
Department of Transportation
National Highway Traffic Safety Administration 20.600 BROWN CTY SUB DOT SA 13,156.00

National Highway Traffic Safety Administration 20.600 BROWN CTY SUB DOT SA 9,729.90
TOTAL DEPARTMENT OF TRANSPORTATION 22,885.90

89
See Notes To Schedule of Expenditures of Federal Awards
University of Cincinnati
Schedule of Expenditures of Federal Awards
for the period ending June 30, 2008
Federal
Federal Grant Federal
Federal Agency CFDA Number Expenditures
National Aeronautics & Space Administration
National Aeronautics & Space Administration 43.001 OSGC/NASA-OAI SCHOLA 37,819.71
National Aeronautics & Space Administration 43.001 OSGC/NASA- BALLOON S 4,124.91
TOTAL NATIONAL AERONAUTICS & SPACE ADMINISTRATION 41,944.62
National Foundation on the Arts and the Humanities
Institute of Museum and Library Services 45.310 ST LIBRARY OH / NEH 242,824.46
National Endowment for the Humanities 45.129 OHC 02-009 SUB NEH -58.21
TOTAL NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES 242,766.25
National Science Foundation
Directorate for Education and Human Resources 47.076 OSURF SUB NSF HRD-03 30,305.50
TOTAL NATIONAL SCIENCE FOUNDATION 30,305.50
Small Business Administration
Small Business Administration 59.037 ODOD SUB SBA SBDC FY 155,459.66
Small Business Administration 59.037 ODOD SUB SBA - SBDC 1,110.37
Small Business Administration 59.037 ODOD SUB SBA SBDC FY 217,888.16
TOTAL SMALL BUSINESS ADMINISTRATION 374,458.19
TOTAL OTHER - PASS THROUGH FUNDS 1,789,402.98
TOTAL OTHER CLUSTER 8,570,183.74
TOTAL FEDERAL AWARDS EXPENDITURES 170,376,235.41

90
See Notes To Schedule of Expenditures of Federal Awards
UNIVERSITY OF CINCINNATI

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2008

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation—The accompanying schedule of expenditures of federal awards includes the

federal grant transactions of the University of Cincinnati (“University”) and is recorded on the accrual
basis of accounting.

Subrecipients—Certain funds are passed through to subgrantee organizations by the University.

Expenditures incurred by the subgrantees and reimbursed by the University are presented in the schedule
of expenditures of federal awards. The University is also the subrecipient of federal funds which have
been subjected to testing and are reported as expenditures and listed as federal pass-through funds.

Negative Expenditures—Certain grant expenditures are negative as a result of various adjustments

made during the year.

2. CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBERS

Catalog of Federal Domestic Assistance (“CFDA”) numbers are presented for those programs for which
such numbers are available.

3. FEDERAL FAMILY EDUCATION LOAN PROGRAM

The University also participates in the Federal Family Education Loan Program. Loan awards under the
Federal Family Education Loan Program for the year ended June 30, 2008 were $267,438,595.

4. FEDERAL LOAN PROGRAMS

The University administers the Federal Perkins, Health Professions Student and Nursing Student Federal
Loan Programs. Total loan expenditures and disbursements of the Department of Education and
Department of Health and Human Services student financial assistance programs for the year ended
June 30, 2008 are as follows:

Federal Perkins Loan Program (CFDA 84.038) $ 8,542,258

Health Professions Student Loan Program (CFDA 93.342) 126,758
Nursing Student Loan Program (CFDA 93.364) 233,615

Total $ 8,902,631

The above expenditures include disbursements and expenditures such as loans to students and
administrative expenditures. The schedule of expenditures of federal awards only includes
administrative costs of the loan programs.

- 91 -
 Outstanding loans at June 30, 2008 include the following:

Federal Perkins Loans $30,141,781

Health Professions Student Loans 941,129
Nursing Student Loans 752,915

Total $ 31,835,825

5. INDIRECT COSTS

The University recovers indirect costs by means of predetermined indirect cost rates. The predetermined
rates are a result of negotiated agreements with the U.S. Department of Health and Human Services. On
May 30, 2007, the University received approval for indirect cost recovery rate effective from July 1,
2006 through June 30, 2009. The indirect cost rates structure is as follows:

Effective July 1, 2006

Rate Type through June 30, 2009

Organized research:
On-campus 56.0 %
Off-campus 26.0 %

Instruction:
On-campus 56.0 %
Off-campus 26.0 %

Public Service:
On-campus 30.0 %
Off-campus 26.0 %

- 92 -
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS

To the Board of Trustees of

the University of Cincinnati:

We have audited the financial statements of the University of Cincinnati (the “University”), a component
unit of the State of Ohio, as of and for the year ended June 30, 2008, and have issued our report thereon
dated October 13, 2008, which included a reference on our reliance on the other auditors’ report that
related to their audit of the University of Cincinnati Foundation, an emphasis paragraph related to the
University’s investment in alternative investments whose values have been estimated by management in
the absence of readily determinable fair market values, and an emphasis paragraph related to the
University’s equity investment in the Health Alliance of Greater Cincinnati. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States.
Internal Control Over Financial Reporting

In planning and performing our audit, we considered the University’s internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing an opinion on the effectiveness of the
University’s internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the University’s internal control over financial reporting.

A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or
report financial data reliably in accordance with generally accepted accounting principles such that there
is more than a remote likelihood that a misstatement of the entity’s financial statements that is more than
inconsequential will not be prevented or detected by the entity’s internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in

more than a remote likelihood that a material misstatement of the financial statements will not be
prevented or detected by the entity’s internal control. .

Our consideration of the internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and would not necessarily identify all deficiencies in the internal control
that might be significant deficiencies and, accordingly, would not necessarily disclose all significant
deficiencies that are also considered to be material weaknesses. We did not identify any deficiencies in
internal control that we consider to be material weaknesses, as defined above.

- 93 -
Compliance and Other Matters

As part of obtaining reasonable assurance about whether the University’s financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.

We noted certain matters that we reported to management of the University in a separate letter dated
October 13, 2008.

This report is intended solely for the information and use of the Board of Trustees of the University of
Cincinnati, management, federal awarding agencies, pass-through entities and the Auditor of State of
Ohio and is not intended to be and should not be used by anyone other than those specified parties.

October 13, 2008

- 94 -
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

To the Board of Trustees of

the University of Cincinnati

Compliance

We have audited the compliance of the University of Cincinnati (the “University”), a component unit of
the State of Ohio, with the types of compliance requirements described in the U.S. Office of Management
and Budget (“OMB”) Circular A-133, Compliance Supplement, that are applicable to its major federal
program for the year ended June 30, 2008. The University’s major federal program is identified in the
summary of auditor’s results section of the accompanying schedule of findings and questioned costs.
Compliance with the requirements of laws, regulations, contracts and grants applicable to its major
federal program is the responsibility of the University’s management. Our responsibility is to express an
opinion on the University’s compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect
on a major federal program occurred. An audit includes examining, on a test basis, evidence about the
University’s compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our
audit does not provide a legal determination on the University’s compliance with those requirements.

In our opinion, the University complied, in all material respects, with the requirements referred to above
that are applicable to each of its major federal programs for the year ended June 30, 2008.

Internal Control Over Compliance

The management of the University is responsible for establishing and maintaining effective internal
control over compliance with the requirements of laws, regulations, contracts, and grants applicable to
federal programs. In planning and performing our audit, we considered the University’s internal control
over compliance with the requirements that could have a direct and material effect on a major federal
program in order to determine our auditing procedures for the purpose of expressing our opinion on
compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, we do not express an opinion on the effectiveness of the University’s internal
control over compliance.

- 95 -
A control deficiency in an entity’s internal control over compliance exists when the design or operation of
a control does not allow management or employees, in the normal course of performing their assigned
functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program
on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies,
that adversely affects the entity’s ability to administer a federal program such that there is more than a
remote likelihood that non-compliance with a type of compliance requirement of a federal program that is
more than inconsequential will not be prevented or detected by the entity’s internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in

more than a remote likelihood that material noncompliance with a type of compliance requirement of a
federal program will not be prevented or detected by the entity’s internal control.

Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might
be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses, as defined above.

This report is intended solely for the information and use of the Board of Trustees of the University of
Cincinnati, management, federal awarding agencies, pass-through entities and the Auditor of State of
Ohio and is not intended to be and should not be used by anyone other than those specified parties.

October 13, 2008

- 96 -
UNIVERSITY OF CINCINNATI

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE YEAR ENDED JUNE 30, 2008

PART I — SUMMARY OF INDEPENDENT AUDITORS’ RESULTS

I. Financial Statements

Type of auditor’s report issued: Unqualified

Internal control over financial reporting:

Material weakness(es) identified? Yes X No

Significant deficiencies identified that are

not considered to be material weaknesses? Yes X N/a

Noncompliance material to financial

statements noted? ______Yes X No

II. Federal Awards

Internal control over major programs:

Material weakness(es) identified? ________Yes X No

Significant deficiencies identified that are

not considered to be material weaknesses? ________Yes X N/a

Type of auditor’s report issued on Unqualified

compliance for major programs:

Any audit findings disclosed that are

required to be reported in accordance
with Section 510(a) of Circular A-133? ________Yes X No

Identification of Major Programs: Research and Development - Cluster

Dollar threshold used to distinguish between $3,000,000

Type A and Type B programs

Auditee qualified as low-risk auditee? Yes X No

- 97 -
UNIVERSITY OF CINCINNATI

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE YEAR ENDED JUNE 30, 2008 (Continued)

PART II — FINANCIAL STATEMENT FINDINGS SECTION

No matters are reportable.

PART III — FEDERAL AWARD FINDINGS AND QUESTIONED COSTS SECTION

No matters are reportable.

- 98 -
UNIVERSITY OF CINCINNATI

SUMMARY OF SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS

The summary below was provided by management of the University of Cincinnati and constitutes a summary
of the current status of the findings reported in the Schedule of Findings and Questioned Costs from the
Independent Auditors’ Single Audit Reports for the year ended June 30, 2007.

Conditions 07-1, 06-1, 05-1, 04-1 and 03-2 (Student Financial Assistance Cluster, CFDA Numbers
84.007, 84.032 and 84.063)

During the fiscal year 2007 audit, there was an instance noted where the University did not calculate student
returns correctly based upon the percentage of days attended.

Management’s Update on Current Status— During FY 2008, the University Bursar has made it a top
priority for his office to comply with Title IV regulations. The Bursar inspects data to make sure compliance
regulations are being adhered to. The Bursar is also in the process of hiring a compliance specialist to assist
him in making sure the University continues to adhere to all current regulations and implements new
regulations timely.

Condition 07-2, 06-4, 05-4 and 04-4 (Student Financial Assistance, CFDA Numbers 84.007, 84.032 and
84.063)

During the fiscal year 2007 audit, there were instances noted where the University did not deposit or transfer
to the lender returns of Title IV funds within the required 30 day time period from the date that the University
is made aware of the student withdrawal.

Management’s Update on Current Status— Proper compliance procedures continue to be addressed and
monitored by the Bursar’s office. It is a top priority to make certain the University remains in compliance
with all regulations. The Bursar has been making it his responsibility to understand current regulations and
will be hiring a compliance specialist to assist the office.

- 99 -
 UC|21 THE NEW URBAN RESEARCH UNIVERSIT Y

Fiscal year 2007

UC Budget
UC Audited Financial report
A133 audit statement

FY 07

University of Cincinnati
 CURRENT FUNDS
BUDGET PLAN
FY 2006-2007

Prepared By
The Office of the Executive Chief Financial Officer

June 27, 2006

BOARD OF TRUSTEES

Phillip R. Cox
Chairperson

C. Francis Barrett

Anant Ram Bhati

Margaret E. Buchanan

Gary Heiman

Sandra W. Heimann

Thomas H. Humes

H. C. Buck Niehoff

Jeffery L. Wyler
 TABLE OF CONTENTS
GENERAL

Current Funds Budget Summary..................................................................................2

Summary of Budgeted Resources and Expenditures - Total University ...................3

Summary of Budgeted Resources and Expenditures - Total University Graphs

Budgeted Resources by Source ..................................................................4
Budgeted Expenditures by Function .........................................................4
Selected Definitions.........................................................................................................5

Undesignated General Funds - Uptown Campus.........................................................8

Undesignated General Funds - Branches ...................................................................12

Student Fees & Historical Data ...................................................................................17

Designated General Funds – Hoxworth Blood Center ..............................................23

Auxiliary Operations ....................................................................................................27

Designated General Funds – Millennium Research Institute...................................39

Other Designated Funds...............................................................................................44

Restricted Funds ...........................................................................................................50

 FISCAL YEAR 2006-2007
CURRENT FUNDS BUDGET SUMMARY
(IN THOUSANDS)

FULL BUDGET AUTHORITY FUND CONTROLLED AUTHORITY

Designated Designated
Undesignated Undesignated Other Total
General Funds Auxiliary General Funds Restricted
General Funds General Funds Subtotal Designated Subtotal Current
Hoxworth Enterprises Millennium Funds
Uptown Campus Branches General Funds Funds
Blood Center Research Inst.
RESOURCES
Gross Tuition, Fee and Other Student Charges 286,573 28,922 9,863 325,357 19,103 19,103 344,460
Less Scholarships and Fellowships (65,802) (363) (66,165) - (66,165)
Net Tuition, Fee and Other Student Charges 220,770 28,559 9,863 259,192 19,103 19,103 278,295

State Appropriations (State Share of Instruction) 141,646 15,054 156,699 12,530 12,530 169,229
State Appropriations (Challenges) 8,690 2,234 10,924 - 10,924
Govt and Private Grants and Contracts 13,001 43 13,045 7,358 18,323 274,507 300,188 313,233
Private Gifts 1,177 5,292 6,469 138 41,242 41,380 47,849
Endowment Income 1,449 1,449 1,064 63,637 64,701 66,150
Sales and Service 10 9 34,780 34,799 19,693 19,693 54,492
Temporary Investments 2,270 280 2,550 78 78 2,628
Other Sources 2,487 66 2,553 (312) 1,183 912 1,783 4,336
Auxiliary Enterprises 66,092 66,092 - 66,092
Total Resources 391,501 45,964 35,060 81,247 553,772 7,046 59,505 392,905 459,456 1,013,228

EXPENDITURES
Educational and General

2
Instructional and General 207,024 26,656 233,681 15,457 62,296 77,753 311,434
Separately Budgeted Research 2,035 2,035 8,960 11,516 198,295 218,770 220,805
Public Service 1,444 262 32,238 33,944 11,147 11,036 22,182 56,126
Academic Support 42,491 4,782 47,272 11,286 13,890 25,176 72,448
Student Services 17,712 3,849 21,561 11,398 3,468 14,866 36,427
Institutional Support 45,087 5,779 50,867 5,063 5,643 10,705 61,572
Operation and Maintenance of Plant 50,701 4,338 55,039 4,571 - - 4,571 59,610
Scholarships and Fellowships - 500 45,426 45,926 45,926
Budget Cut Reserve* (15,600) (15,600) - (15,600)
Total Educational and General 350,894 45,666 32,238 - 428,798 13,531 66,366 340,054 419,951 848,749

Auxilliary Enterprises 70,890 70,890 21 21 70,911

Mandatory Transfers
Loan Fund Matching 223 223 - 223
Debt Service 15,619 125 905 36,837 53,487 6,185 6,991 283 13,459 66,945
Nonmandatory Transfers
Subsidies to Non-Instructional Units 14,322 259 (14,581) - - -
Plant Funds 342 11 1,100 519 1,972 31 31 2,003
Designated** 13,944 13,944 (13,944) (13,944) -
Other (3,844) (97) 1,651 (2,289) - 52,492 52,492 50,202
Total Expenditures and Transfers 391,501 45,964 34,243 95,317 567,025 19,747 59,434 392,828 472,009 1,039,034

Net Increase (Decrease) In Fund Balance - - 817 (14,070) (13,253) (12,701) 71 77 (12,553) (25,806)

* Result fo FY 2006-07 budget process.

** This amount includes an annual payment of $2.1M toward internal debt on claims on operations.
 SUMMARY OF BUDGETED RESOURCES AND EXPENDITURES
TOTAL UNIVERSITY
(IN THOUSANDS)

2006
2007 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Gross Tuition, Fee and Other Student Charges 324,390 344,460 20,070 6.19%
Less Scholarships and Fellowships (59,602) (66,165) (6,563) 11.01%
Net Tuition, Fee and Other Student Charges 264,788 278,295 13,507 5.10%

State Appropriations (State Share of Instruction) 168,039 169,229 1,190 0.71%

State Appropriations (Challenges) 11,102 10,924 (177) -1.60%
Govt and Private Grants and Contracts 346,016 313,233 (32,783) -9.47%
Private Gifts 38,699 47,849 9,150 23.64%
Endowment Income 49,927 66,150 16,223 32.49%
Sales and Service 54,538 54,492 (47) -0.09%
Temporary Investments 2,578 2,628 49 1.91%
Other Sources 10,988 4,336 (6,652) -60.54%
Auxiliary Enterprises 75,262 66,092 (9,170) -12.18%
Total Resources 1,021,937 1,013,228 (8,709) -0.85%

EXPENDITURES
Educational and General
Instructional and General 298,348 311,434 13,086 4.39%
Separately Budgeted Research 242,032 220,805 (21,227) -8.77%
Public Service 57,124 56,126 (998) -1.75%
Academic Support 72,095 72,448 354 0.49%
Student Services 35,820 36,427 607 1.69%
Institutional Support 63,779 61,572 (2,207) -3.46%
Operation and Maintenance of Plant 46,247 59,610 13,363 28.89%
Scholarships and Fellowships 46,267 45,926 (341) -0.74%
Budget Cut Reserve* - (15,600) (15,600) 100.00%
Total Educational and General 861,713 848,749 (12,964) -1.50%

Auxiliary Enterprises 81,379 70,911 (10,468) -12.86%

Mandatory Transfers
Loan Fund Matching 223 223 - 0.00%
Debt Service 53,447 66,945 13,498 25.25%
Nonmandatory Transfers
Subsidies to Non-Instructional Units - - - 0.00%
Plant Funds 2,985 2,003 (983) -32.91%
Designated** - - - 0.00%
Other 45,534 50,202 4,668 10.25%
Total Expenditures and Transfers 1,045,281 1,039,034 (6,247) -0.60%

Net Increase (Decrease) In Fund Balance (23,344) (25,806)

* Result of FY 2006-07 budget process.

** This amount includes an annual payment of $2.1M toward internal debt on claims on operations.

3
 SUMMARY OF BUDGETED RESOURCES AND EXPENDITURES
TOTAL UNIVERSITY

RESOURCES BY SOURCE

Auxiliary Enterprises
7%

Net Tuition, Fees & Other

Other Resources Student Charges
17% 27%

State Appropriations
18%
Govt. & Private Grants &
Contracts
31%

EXPENDITURES BY FUNCTION

Auxiliary Enterprises
7%
Nonmandatory Transfers
5% Instructional & General
30%
Mandatory Transfers
6%

Scholarships &
Fellowships
4%
Operation & Maintenance
of Plant
6%

Institutional Support
6%
Student Services
3%
Separately Budgeted
Academic Support Research
7% Public Service 21%
5%

4
 SELECTED DEFINITIONS
♦ Current Funds are those funds that are earned and expended in the current fiscal
year. They include the General Funds and Restricted Funds. Excluded entirely from
this report are Non-Current Funds such as Plant Funds, Loan Funds and Endowment
Principal.

♦ Undesignated General Funds are unrestricted resources available for allocation in

support of core instruction, instructional support and related general administrative
and physical plant expenditures. The university maintains a separate undesignated
general fund for the Uptown campus and one for each of the branches.

♦ Designated General Funds are those funds which are internally restricted by Board
of Trustee approval for specific activities.

♦ Restricted Funds are funds for which the use has been designated by an external
agency or individual and limited to support a specific purpose and/or unit.

♦ Instructional and Departmental Research includes all direct and applicable

allocated expenditures for all activities that are part of the University's instructional
program. It includes expenditures for departmental research and public service that
are not separately budgeted.

♦ Academic Support includes all funds expended for activities carried out primarily to
provide support services that are an integral part of the operations of one of the three
primary missions -- instruction, research and public service. Included in this category
are Academic Affairs Administration, Libraries, Museums & Galleries and the
Deans’ offices.

♦ Student Services includes funds expended for those activities for which the primary
purpose is to contribute to the student's emotional and physical well being, as well as
his/her cultural and social development outside the context of the formal instructional
program. Included in this category are Admissions and Registration, Counseling, and
Student Financial Aid.

♦ Institutional Support contains expenditures for operations that provide support

services to the total University. Included in this category are Executive Management,
Finance, Human Resources, Administrative Services, Public Affairs and
Development.

♦ Plant Operations and Maintenance includes all expenditures of current funds for the
operation and maintenance of the physical plant, net of amounts charged to auxiliary
operations and the hospital. Included in this category are utilities, repair and
renovations, custodial services, grounds maintenance, space rental and property
insurance.

5
♦ Separately Budgeted Research includes all expenditures for activities specifically
organized to produce research outcomes, whether commissioned by an external
agency to the University (restricted) or the University (unrestricted) and includes
matching funds applicable to the conditions set forth by the grant or contract.

♦ Public Service includes all funds expended for activities that are established
primarily to provide noncredit designated course offerings and services beneficial to
individuals and groups external to the University. Included in this category are
Continuing Education and Cooperative Extension Services.

♦ Scholarships and Fellowships include expenditures in the form of outright grants

and trainee stipends to individuals enrolled in formal course work.

♦ Auxiliaries are specifically identified by the State as the following earnings

operations: Residence & Dining Halls, Intercollegiate Athletics, Student Unions,
Bookstores, Parking Lots & Garages, Kingsgate Conference Center, the Campus
Recreation Center, Faculty Club, and the Fifth Third Arena at the Myrl H. Shoemaker
Center.

♦ IT&IE Fee is the Information Technology and Instructional Equipment fee charged
to all undergraduate, graduate and professional students (except Medicine programs)
for the purpose of improving access to and assistance with information technology
and to fund other types of instructional equipment.

♦ Nonresident Surcharge equates to the full cost of instruction for non-Ohio residents.
The Ohio Board of Regents subsidy policy does not provide support for out-of-state
undergraduate students.

♦ Campus Life Fee is the fee charged to all undergraduate, graduate and professional
students (except Raymond Walters College and Clermont College) for the purpose of
developing a new Student Union and state-of-the-art recreation facility.

♦ SSI – State Share of Instruction is the formula driven state funding as recommended
and approved by the Governor and the State Legislature.

♦ Access Challenge – These funds are meant to reduce or freeze the tuition levels for
students obtaining a two-year degree at public institutions in Ohio. While most of
these funds go to two-year campuses, including our branches, the Uptown campus
receives funds for the students at the Center for Access and Transition. These funds
have been used as previously mentioned.

♦ Jobs Challenge – This program allocates funds in proportion to the amount of

income generated by worker training programs at each campus. It is a small amount
(under $100,000) on the Uptown campus, as well as for the two branch campuses.
These funds are currently viewed as restricted in nature.

6
♦ Success Challenge – This program is aimed at increasing the success of four-year
students and shortening the length of time to degree completion. As a major source
of funding, it is providing the opportunity to target new services and programs at
students having difficulty making normal academic progress. Part of these funds
assist in keeping our past fee increases below the past State fee cap and the State
average. The funds are allocated in proportion to the number of “at risk or under-
prepared” students enrolled and how they perform.

♦ Research Challenge – This program, which matches State funding for research to the
level of research grant holdings, has been around for many years. This funding is
being included with the other Challenge programs in our unrestricted income. Thus,
it can apply to new allocations or help support existing allocations.

♦ Priorities in Graduate Education – This is a focused program to improve key

graduate programs that will drive Ohio’s economy in the next century.

♦ FTE – Full Time Equivalent student, based on a 15 credit hour load per quarter.

7
 I. UNDESIGNATED GENERAL FUNDS
UPTOWN CAMPUS

Undesignated General Funds - Overview.....................................................................9

Undesignated General Funds Budget - Uptown Campus .........................................11

8
 UNIVERSITY OF CINCINNATI
UNDESIGNATED GENERAL FUNDS
UPTOWN CAMPUS
OVERVIEW

The Uptown Campus budget is the “core” University budget and comprises about 38% of
its total. The events and trends in this budget set the basic direction for the entire, all-
funds budget, as it depends on primary sources of income – tuition and State Share of
Instruction (also called the SSI). Thus, tuition policy for the vast majority of students is
determined in this budget, and compensation policy for the entire institution is driven by
this budget.

In FY 2007, the UC|21 Academic Plan becomes the key driver to decision and allocation
making in the university-wide budget process. Through the President’s Budget Advisory
Committee (PBAC), the Executive Committee and the President’s Budget Committee
(PBC), the budget has become more of an academic tool that has created greater
transparency. Thus, the Uptown portion of the budget becomes a stable model for all
other university-wide budgets in an all-inclusive, all-budgets process.

The following Uptown Campus budget reflects the need to fund $25.5M of projected
expenditures that outstrip projected revenues. At the conclusion of campus-wide
briefings at all levels, it has been realized that to correct a problem of this magnitude is a
two to three year process. Consultations with university-wide involvement produced
many cost reduction strategies that will be implemented to produce the funding to fill this
gap over the next two to three years. Thus, the FY 2007 budget as presented covers
$10M of the recurring problem with the additional $15.6M to be covered on a one-time
basis and further remedied in FY 2008. The above process addresses several issues that
have been crippling the Uptown Campus for several years. In FY 2007, conservative
tuition estimates are being used which will correct a decade long issue of tuition
shortfalls that have existed. For example, overly optimistic tuition projections of the
past have been replaced by realistic projections of flat enrollment in FY 2007, based in
part on the raising of academic standards for newly enrolling students. A tuition increase
of 5.4% for undergraduates and 7.8% for graduate students was passed at the March
meeting of the Board of Trustees and has been incorporated into this final submission. In
addition, an increase to the ITIE fee is being requested at the June Board of Trustees
meeting and, subject to approval, will result in a total tuition increase of 5.6% for
undergraduates and 8% for graduate students. Other revenue items as well are being
conservatively increased including the major item of State Share of Instruction increasing
$500,000 due to previous years’ enrollment increases. There is current thought that the
Return on Economic Investment funding included in last year’s legislative budget bill
will be allocated through the SSI, but no amount is currently budgeted.

On the expenditure side of the increased budget are issues with Utilities that have
drastically increased over the last two years; added debt service of new and renovated
buildings coming on line, as well as, new core system installations. Salary increases for

9
contract employees must be honored, but unrepresented employees will receive no
increase in FY 2007.

With the FY 2007 budget comes a new commitment to change the business culture at
UC. The University community is engaged in creating cost saving strategies that change
the manner in which UC pursues it mission. The current budget process has created a
greater sense of transparency that will lead UC into the future with a greater sense of
conservation and cost controlling efforts from the entire University community.

Despite the difficulties presented by UC’s budget situation, faculty, staff and students
have come together and faced this challenge as one University, keeping our collective
vision at the fore of every decision we have made to date. The PBAC has been
tremendously impressed with the breadth and substance of advice it has received from all
the various campus constituencies, and as a result, that advice truly has driven the
recommendations contained in this budget.

10
 UNDESIGNATED GENERAL FUNDS
UPTOWN CAMPUS
(IN THOUSANDS)

2006
2007 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Gross Tuition, Fee and Other Student Charges 270,263 286,573 16,310 6.03 %
Less Scholarships and Fellowships (59,240) (65,802) (6,562) 11.08 %
Net Tuition, Fee and Other Student Charges 211,023 220,770 9,748 4.62 %

State Appropriations (State Share of Instruction) 141,146 141,646 500 0.35 %

State Appropriations (Challenges) 9,113 8,690 (423) (4.64) %
Govt and Private Grants and Contracts 12,701 13,001 300 2.36 %
Private Gifts 1,177 1,177 - 0.00 %
Endowment Income 1,457 1,449 (8) (0.55) %
Sales and Service 10 10 - 0.00 %
Temporary Investments 2,270 2,270 - 0.00 %
Other Sources 2,487 2,487 - 0.00 %
Total Resources 381,384 391,501 10,117 2.65 %

EXPENDITURES
Educational and General
Instructional and General 195,453 207,024 11,572 5.92 %
Separately Budgeted Research 2,551 2,035 (516) (20.23) %
Public Service 1,444 1,444 - 0.00 %
Academic Support 42,199 42,491 292 0.69 %
Student Services 16,924 17,712 788 4.66 %
Institutional Support 49,374 45,087 (4,287) (8.68) %
Operation and Maintenance of Plant 39,445 50,701 11,256 28.54 %
Budget Cut Reserve* - (15,600) (15,600) 100.00%
Total Educational and General 347,390 350,894 3,504 1.01 %

Mandatory Transfers
Loan Fund Matching 223 223 - 0.00 %
Debt Service 12,169 15,619 3,450 28.35 %
Nonmandatory Transfers
Subsidies to Non-Instructional Units 8,971 14,322 5,351 59.65 %
Plant Funds 891 342 (549.60) (61.68) %
Designated** 18,384 13,944 (4,439) (24.15) %
Other (6,644) (3,844) 2,800 (42.14) %
Total Expenditures and Transfers 381,384 391,501 10,117 2.65 %

Net Increase (Decrease) In Fund Balance - -

* Result of FY 2006-07 budget process.

** This amount includes an annual payment of $2.1M toward internal debt on claims on operations.

11
 I. UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES

Undesignated General Funds Branches - Overview..................................................13

Undesignated General Funds Budget - Branch Campuses .......................................14

Raymond Walters College...................................................................................15

Clermont College .................................................................................................16

12
 UNIVERSITY OF CINCINNATI
UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES
OVERVIEW
In FY 2007, due to higher than average enrollment increases at the branch campuses in
recent years, State Share of Instruction is projected to increase at the branches. It is also
projected that both branches will continue to experience modest enrollment growth.

RAYMOND WALTERS COLLEGE

The College has experienced tremendous growth since the completion of the Science and
Allied Health Building in 2000. We are expecting to continue the growth this year but at
a much slower pace of about 1.5% FTE. Areas of growth are projected in Biology,
Chemistry, Math (Developmental and College level), English (Developmental and
College level), Medical Assistant, Radiation Technology and Behavioral Sciences.

Raymond Walters College opened the Veterinary Technology Building this year. The
3.4 million dollar project was funded from private donations, state appropriations and 1.2
million dollars from the College.

The building is equipped with the latest technologies in Animal Wellness Care. The
program graduates approximately forty Veterinary Technicians each year. The majority
of the graduates are hired by local Veterinarians and research centers.

Capital Projects for 2007 include renovation of the Flory Center. This renovation will
allow the Professional Development Institute to relocate to the RWC campus.

CLERMONT COLLEGE

Revenues reflect a 5.65% increase in tuition, and credit hour enrollment is projected to
increase 2.75%. The State Share of Instruction is based on the latest “known” funding
for this source. The College has also increased its Instructional Technology and
Equipment Fee (ITIE) from $80/quarter to $85/quarter.

Expenditures reflect funding for approved new faculty positions, new academic
initiatives, and continuing support of existing academic programs. Also included is
modest funding for the final close-out of construction costs related to the new West
Woods Academic Center.

13
 UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES
(IN THOUSANDS)

2006
2007 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Gross Tuition, Fee and Other Student Charges 26,585 28,922 2,337 8.79%
Less Scholarships and Fellowships (363) (363) - 0.00%
Net Tuition, Fee and Other Student Charges 26,222 28,559 2,336 8.91%

State Appropriations (State Share of Instruction) 14,391 15,054 663 4.61%

State Appropriations (Challenges) 1,989 2,234 246 12.34%
Govt and Private Grants and Contracts 43 43 - 0.00%
Private Gifts
Endowment Income
Sales and Service 9 9 - 0.00%
Temporary Investments
Other Sources 75 66 (9) -12.05%
Total Resources 42,729 45,964 3,236 7.57%

EXPENDITURES
Educational and General
Instructional and General 24,319 26,656 2,338 9.61%
Separately Budgeted Research
Public Service 334 262 (73) -21.71%
Academic Support 5,097 4,782 (316) -6.19%
Student Services 3,540 3,849 309 8.73%
Institutional Support 5,062 5,779 717 14.17%
Operation and Maintenance of Plant 3,754 4,338 584 15.55%
Total Educational and General 42,107 45,666 3,560 8.45%

Mandatory Transfers
Loan Fund Matching
Debt Service 350 125 (225) -64.29%
Nonmandatory Transfers
Subsidies to Non-Instructional Units 259 259 - 0.00%
Plant Funds 27 11 (16) -59.22%
Other (13) (97) (84) 639.10%
Total Expenditures and Transfers 42,729 45,964 3,235 7.57%

Net Increase (Decrease) In Fund Balance - -

14
 UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES
RAYMOND WALTERS COLLEGE
(IN THOUSANDS)

2006
2007 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Gross Tuition, Fee and Other Student Charges 17,046 18,074 1,027 6.03%
Less Scholarships and Fellowships (118) (63) 55 -46.38%
Net Tuition, Fee and Other Student Charges 16,929 18,011 1,082 6.39%

State Appropriations (State Share of Instruction) 9,344 9,626 282 3.01%

State Appropriations (Challenges) 1,267 1,391 123 9.72%
Govt and Private Grants and Contracts 14 14 - 0.00%
Private Gifts
Endowment Income
Sales and Service 9 9 - 0.00%
Temporary Investments
Other Sources 56 48 (8) -14.59%
Total Resources 27,620 29,098 1,478 5.35%

EXPENDITURES
Educational and General
Instructional and General 16,244 17,460 1,216 7.48%
Separately Budgeted Research
Public Service 191 211 21 10.85%
Academic Support 3,656 3,271 (385) -10.52%
Student Services 1,849 1,918 69 3.73%
Institutional Support 2,725 3,017 292 10.73%
Operation and Maintenance of Plant 2,566 2,857 291 11.35%
Total Educational and General 27,231 28,736 1,504 5.52%

Mandatory Transfers
Loan Fund Matching
Nonmandatory Transfers
Subsidies to Non-Instructional Units 174 174 - 0.00%
Plant Funds 21 11 (10) -47.49%
Debt Service
Other 194 178 (16) -8.42%
Total Expenditures and Transfers 27,620 29,098 1,478 5.35%

Net Increase (Decrease) In Fund Balance - -

15
 UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES
CLERMONT COLLEGE
(IN THOUSANDS)

2006
2007 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Gross Tuition, Fee and Other Student Charges 9,538 10,848 1,310 13.73%
Less Scholarships and Fellowships (245) (300) (55) 22.45%
Net Tuition, Fee and Other Student Charges 9,293 10,548 1,255 13.50%

State Appropriations (State Share of Instruction) 5,046 5,428 381 7.55%

State Appropriations (Challenges) 721 844 122 16.95%
Govt and Private Grants and Contracts 29 29 - 0.00%
Private Gifts
Endowment Income
Sales and Service
Temporary Investments
Other Sources 19 18 (1) -4.32%
Total Resources 15,109 16,866 1,758 11.63%

EXPENDITURES
Educational and General
Instructional and General 8,074 9,196 1,122 13.89%
Separately Budgeted Research
Public Service 143 50 (93) -64.97%
Academic Support 1,442 1,510 69 4.78%
Student Services 1,691 1,931 240 14.20%
Institutional Support 2,337 2,762 425 18.18%
Operation and Maintenance of Plant 1,188 1,481 293 24.63%
Total Educational and General 14,876 16,931 2,055 13.82%

Mandatory Transfers
Loan Fund Matching
Nonmandatory Transfers
Subsidies to Non-Instructional Units 85 85 - 0.00%
Plant Funds 6 (6) -100.00%
Debt Service 350 125 (225) -64.29%
Other (207) (274) (67) 32.48%
Total Expenditures and Transfers 15,109 16,866 1,757 11.63%

Net Increase (Decrease) In Fund Balance - -

16
 III. STUDENT FEES AND HISTORICAL DATA

Approved Student Fees.................................................................................................18

Summary of All Quarterly Student Fees - All Campuses ........................................19

Summary of All Annual Student Fees - All Campuses..............................................19

Instructional Subsidy and Student Fees - Ten & Five Year Trends ........................20
Ten & Five Year Fee History - Uptown Campus Resident Fees .............................20

Full Time Equivalent (FTE) Enrollments, FY 1998-2007........................................21

Summary of Resident Student Fees – Autumn FY 2005 & Autumn FY 2006

OBR Institutions ..................................................................................................22

17
 UNIVERSITY OF CINCINNATI
QUARTERLY STUDENT FEES
EFFECTIVE AUTUMN QUARTER 2006

1
CAMPUS LIFE FEE GENERAL FEE IT&IE FEE2

FY06 FY07 FY06 FY07 FY06 FY07

FULL TIME RATES Actual Actual Actual Actual Actual Actual
Undergraduate Programs: Spring
Uptown Campus 139 147 245 249 99 105
Center for Access & Transition 139 147 245 249 99 105
3
Clermont College 0 0 142 142 80 85
3
Raymond Walters College 0 0 142 142 80 85
Professional Programs:
4
Law 208 221 368 374 149 158
Medicine 139 147 245 249 0 0
5
Graduate Programs 139 147 245 249 99 105

INSTRUCTIONAL FEE
AND NONRESIDENT SURCHARGE

6
Ohio Out-of-State
FY06 FY07 FY06 FY07
FULL TIME RATES Actual Actual Actual Actual
Undergraduate Programs:
Uptown Campus 2,484 2,632 7,068 7,473
Center for Access & Transition 1,850 1,963 7,068 7,473
Clermont College 1,211 1,287 3,373 3,571
Raymond Walters College 1,424 1,517 4,045 4,295
Professional Programs:
4
Law 7,392 8,263 13,929 15,323
Medicine 7,484 8,259 13,292 14,648
5
Graduate Programs 3,116 3,386 6,151 6,664

PART TIME PER CREDIT HOUR FEES

(INSTRUCTIONAL, GENERAL, IT&IE, CAMPUS LIFE
AND NONRESIDENT SURCHARGE)

Ohio Out-of-State
FY06 FY07 FY06 FY07
PART-TIME RATES Actual Actual Actual Actual
Undergraduate Programs: Spring Spring
Uptown Campus 248 262 630 665
Center for Access & Transition 195 206 630 665
Clermont College 120 127 300 317
Raymond Walters College 138 146 356 377
Professional Programs:
4
Law 677 752 1,222 1,340
Medicine 656 722 1,140 1,254
Graduate Programs5 361 389 664 717

(1) Campus Life Fee approved at the May 23, 2000 Board of Trustees meeting.
(2) The IT&IE Fee assists in funding information technology, instructional equipment and improved student access to
computer resources and other instructional materials.
(3) Includes parking fee of $33.
(4) College of Law tuition calculated on the semester basis. Supplemental fee increase approved at the May 21, 2003
Board of Trustees meeting.
(5) Medicine Graduate Programs do not charge the IT&IE Fee.
(6) Includes the Ohio instructional fee and the non-resident surcharge.

18
 SUMMARY OF QUARTERLY STUDENT FEES
ALL CAMPUSES EFFECTIVE AUTUMN QUARTER 2006

FULL-TIME FULL-TIME
RESIDENT TUITION & FEES NON-RESIDENT TUITION & FEES

Spring Spring
FY06 FY07 FY06 FY07
Tuition & Tuition & Percent Tuition & Tuition & Percent
Fees Fees Change Fees Fees Change

Undergraduate
Uptown Campus 2,967 3,133 5.6% 7,551 7,974 5.6%
Center for Access and Transition 2,333 2,464 5.6% 7,551 7,974 5.6%
1
Clermont College 1,433 1,514 5.6% 3,595 3,798 5.6%
1
Raymond Walters College 1,646 1,744 5.9% 4,267 4,522 6.0%
Professional Programs
2
Law 8,117 9,016 11.1% 14,653 16,076 9.7%
Medicine 7,868 8,655 10.0% 13,676 15,044 10.0%
3
Graduate Programs 3,599 3,887 8.0% 6,634 7,165 8.0%

PROPOSED SUMMARY OF ANNUAL STUDENT FEES

ALL CAMPUSES EFFECTIVE AUTUMN QUARTER 2006

FULL-TIME FULL-TIME
RESIDENT TUITION & FEES NON-RESIDENT TUITION & FEES

Spring Spring
FY06 FY07 FY06 FY07
Tuition & Tuition & Percent Tuition & Tuition & Percent
Fees Fees Change Fees Fees Change
Undergraduate
Uptown Campus 8,901 9,399 5.6% 22,653 23,922 5.6%
Center for Access and Transition 6,999 7,392 5.6% 22,653 23,922 5.6%
1
Clermont College 4,299 4,542 5.6% 10,785 11,394 5.6%
1
Raymond Walters College 4,938 5,232 6.0% 12,801 13,566 6.0%
Professional Programs
2
Law 16,234 18,032 11.1% 29,306 32,152 9.7%
Medicine 23,604 25,965 10.0% 41,028 45,132 10.0%
3
Graduate Programs 10,797 11,661 8.0% 19,902 21,495 8.0%

(1) A parking fee of $33 per quarter is assessed by the branch campuses (included in the above amounts).
(2) College of Law tuition calculated on the semester basis. Supplemental fee increase approved at the May 21, 2003
Board of Trustees meeting.
(3) Medicine Graduate Programs do not charge the IT&IE Fee.

19
 STATE SHARE OF INSTRUCTION AND STUDENT FEES
TEN YEAR & FIVE YEAR TRENDS
UPTOWN CAMPUS
(IN THOUSANDS)

State Share of Instruction (1) Student Fees (2)

State Share of Dollar Percent Dollar Percent
Instruction Change Change Fees Change Change

FY 1998 Actual 154,691 5,608 3.8% 135,721 6,602 5.1%

FY 1999 Actual 155,198 507 0.3% 139,211 3,490 2.6%
FY 2000 Actual 159,351 4,153 2.7% 145,227 6,016 4.3%
FY 2001 Actual (3) 159,282 (69) 0.0% 150,719 5,492 3.8%
FY 2002 Actual (4) 149,894 (9,388) -5.9% 170,582 19,863 13.2%
FY 2003 Actual (5) 144,220 (5,674) -3.8% 195,126 24,544 14.4%
FY 2004 Actual 144,188 (32) 0.0% 218,477 23,351 12.0%
FY 2005 Actual 140,384 (3,804) -2.6% 247,747 29,270 13.4%
FY 2006 Projected 140,076 (308) -0.2% 272,317 24,570 9.9%
FY 2007 Budget 141,646 1,570 1.1% 299,316 26,999 9.9%

Ten Year Average Increase -0.5% 8.9%

Five Year Average Increase -1.1% 11.9%

(1) These figures represent the FTE driven State Share of Instruction. Other challenge items
such as Access, Success, Jobs, Research and Priorities in Higher Education are not reflected in this table.
(2) Student Fees include Instructional, General, IT&IE, Campus Life and Non-Resident Fees.
(3) Reduced by a 1% Statewide Budget Cut.
(4) Reduced by a 6% Statewide Budget Cut.
(5) Reduced by a 2.5% Statewide Budget Cut.

ANNUAL FEE HISTORY

OHIO RESIDENT FEES - UPTOWN CAMPUS

Center for
Under- Access and
Year graduate Transition** Graduate Law Medicine

1996-97 4,152 4,152 5,445 6,900 11,478

1997-98 4,509 4,443 5,568 7,395 12,051
1998-99 4,746 4,590 5,586 7,706 12,537
1999-00 4,998 4,569 5,880 8,104 13,173
2000-01 5,337 4,401 6,264 8,600 13,902
2001-02 Autumn 5,823 4,686 6,822 9,348 15,090
2002-03 6,936 5,448 8,094 11,020 17,709
2003-04 7,623 5,988 8,985 12,236 19,662
2004-05 8,379 6,579 9,975 14,084 21,831
2005-06 Autumn 8,877 6,975 10,773 16,210 23,580
2006-07 9,399 7,392 11,661 18,032 25,965

Ten Year Average Annual Increase $525 $324 $622 $1,113 $1,449

Five Year Average Annual Increase $715 $541 $968 $1,737 $2,175

Ten Year Average Annual Increase 8.6% 6.1% 8.0% 10.2% 8.6%

Five Year Average Annual Increase 10.2% 9.6% 11.4% 14.1% 11.5%

**Formerly University College

20
 FULL TIME EQUIVALENT (FTE) ENROLLMENTS
ALL-TERMS SUBSIDY ELIGIBLE REPORTING, FY 1998-2007

Uptown Campus Raymond

Graduate & Walters Clermont Grand
Year Undergrad Professional Total Branch Branch Total

1997-98 15,945 4,954 20,899 2,173 1,478 24,550

1998-99 15,739 4,899 20,638 2,096 1,355 24,089
1999-00 15,588 4,902 20,490 2,174 1,363 24,027
2000-01 15,103 5,031 20,134 2,244 1,469 23,847
2001-02 15,200 5,265 20,465 2,458 1,656 24,579
2002-03 14,867 5,406 20,273 2,650 1,778 24,701
2003-04 15,026 5,461 20,487 2,847 2,017 25,351
2004-05 15,111 5,662 20,773 2,969 2,088 25,830
Est. 2005-06 15,318 5,579 20,897 3,044 2,165 26,106
Est. 2006-07 15,318 5,753 21,071 3,103 2,224 26,398

21
 SUMMARY OF RESIDENT STUDENT FEES
OHIO BOARD OF REGENTS' INSTITUTIONS

UNDERGRADUATE FEES
Autumn Autumn
FY 2005 FY 2006 Percent
Fees Fees Change
Miami University1 9,042 9,542 5.5%
University of Cincinnati 8,379 8,877 5.9%
Bowling Green State University (B) 8,072 8,560 6.0%
Bowling Green State University (A) 7,784 8,248 6.0%
Ohio University (B) 7,770 8,235 6.0%
Ohio State University (C) 7,542 8,082 7.2%
Ohio State University (B) 7,446 7,980 7.2%
University of Akron (B) 7,510 7,958 6.0%
Kent State University 7,504 7,954 6.0%
Ohio University (A) 7,404 7,848 6.0%
University of Akron (A) 7,147 7,573 6.0%
University of Toledo 7,054 7,478 6.0%
Cleveland State University (B) 6,822 7,394 8.4%
Ohio State University (A) 6,828 7,323 7.2%
Cleveland State University (A) 6,474 7,022 8.5%
Wright State University (C) 6,477 6,864 6.0%
Wright State University (B) 6,246 6,621 6.0%
Wright State University (A) 6,012 6,372 6.0%
Youngstown State University 5,884 6,333 7.6%
Shawnee State University (B) 5,202 5,508 5.9%
Shawnee State University (A) 4,842 5,130 5.9%
Central State University 4,710 4,994 6.0%

Average 6,916 7,359 6.4%

GRADUATE FEES
Bowling Green State University 10,174 10,808 6.2%
University of Cincinnati 9,975 10,773 8.0%
Miami University 9,270 10,104 9.0%
Cleveland State University 9,325 10,073 8.0%
University of Toledo 9,396 9,880 5.2%
Wright State University (C) 8,652 9,171 6.0%
Ohio University 8,670 8,931 3.0%
Wright State University (B) 8,343 8,844 6.0%
Ohio State University 8,205 8,832 7.6%
Wright State University (A) 8,112 8,598 6.0%
Medical University of Ohio (Ph.D.) 8,264 8,574 3.8%
Kent State University 7,980 8,460 6.0%
Central State University 5,940 7,890 32.8%
Youngstown State University 7,237 7,765 7.3%
University of Akron 6,213 6,609 6.4%
Shawnee State University -- -- N/A

Average 8,384 9,021 8.1%

Source: "FALL SURVEY OF STUDENT CHARGES - For Academic Year 2005 - 2006" by The Ohio Board of Regents

University of Cincinnati amounts shown include the Instructional, General/Facilities Fees, IT&IE Fee and Campus Life Fee
1
Miami University is $21,410 less scholarships for an average of $9,542 per year.
(A): Denotes fees charged to continuing students who enrolled before the 2002 summer term.
(B): Denotes fees charged to continuing students who enrolled after the 2002 summer term.
(C): Denotes fees assessed to new students entering autumn term 2003, if different than fees charged to continuing students.

22
 IV. DESIGNATED GENERAL FUNDS
HOXWORTH BLOOD CENTER

Overview ........................................................................................................................24

Hoxworth Blood Center ...............................................................................................26

23
 UNIVERSITY OF CINCINNATI
DESIGNATED GENERAL FUNDS
HOXWORTH BLOOD CENTER
OVERVIEW
Under the leadership of Ronald A. Sacher, MD, Hoxworth continued to achieve its
strategic goals as our community’s only blood center, providing blood, blood components
and blood related services for the patients in the 27 tri-state hospitals we serve.
Achievements for Hoxworth over the past year included the following:

• In fiscal year 2005, Hoxworth Blood Center collected 88,599 red cell units and
8,364 single-donor platelet products from community blood donors. This
represents a 1.0% increase for red cells and a 3.2% increase in single-donor
platelet products when compared to the previous fiscal year.
• Over 7,000 donors were recognized with gallon awards for red cell and platelet
donations. These awards ranged from one-gallon recognitions to one outstanding
65-gallon recognition.
• Hoxworth Blood Center moved its Tri-County Neighborhood Donor Center to a
new location with increased space and accessibility. We also purchased a new
mobile vehicle for blood drives. This state-of-the-art vehicle for mobile
collections was the focus of a successful capital campaign and we acknowledge
the generosity of The Procter & Gamble Fund, National City Bank, The Luther
Foundation, Brian Schierloh Bequest, Robert J. Williams, and Rendigs, Fry, Kiely
& Dennis, LLP.
• Tibor Greenwalt, MD, Emeritus Professor, passed away in July 2005. A pioneer
in transfusion medicine, the blood center is working with the American
Association of Blood Banks (AABB) to permanently endow the annual Greenwalt
Lectureship, given at each annual AABB meeting.
• The Hoxworth Blood Center Cellular Therapies Division continues to collaborate
with the Experimental Hematology Division at CCHMC in clinical trials
involving novel cell therapies. A second gene transfer clinical trial has been
approved by the FDA and will protect hematopoietic stem cells to allow high-
dose chemotherapy in the treatment of certain brain tumors.
• Hoxworth Blood Center has embarked on the implementation of Six Sigma as a
process to facilitate continuous improvement and cost-savings across our
organization. Patty Walton, Gregg Boothe, Dawn Lowe-Gooden and Kyle Rife
are completing Black Belt training and are working on projects to reduce platelet
outdates and wastage, increase donor frequency and increase double red cells
collections on mobile drives.
• Hoxworth Blood Center began offering a new service to reduce LDL cholesterol
via apheresis for patients who are non-responsive to standard cholesterol-
lowering drugs.
• The Hoxworth Blood Center Transplantation Immunology Division performed
testing in support of the new Ohio Live Donor Kidney Exchange Program. The

24
Transplantation Immunology Division also provided testing on a record number
of cadaveric donors and potential recipients over the past year.

25
 DESIGNATED GENERAL FUNDS
HOXWORTH BLOOD CENTER
(IN THOUSANDS)

2006
2007 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Services Provided 35,030 34,780 (250) -0.71%
Interest Income 280 280 - 0.00%
Total Resources 35,310 35,060 (250) -0.71%

EXPENDITURES
Compensation 15,663 15,720 57 0.36%
Other 16,730 16,518 (212) -1.27%
Total Educational and General 32,394 32,238 (155) -0.48%

Mandatory Transfers
Debt Service 949 905 (44) -4.65%
Non-Mandatory Transfers
Plant Funds 1,106 1,100 (6) -0.56%
Total Expenditures and Transfers 34,449 34,243 (206) -0.60%

Net Increase (Decrease) in Fund Balance 861 817

26
 VII. AUXILIARY OPERATIONS

Overview ........................................................................................................................28

Summary of Auxiliary Operations FY 2006 & FY 2007 ...........................................32

Campus Services Auxiliary Budget Summary FY 2006 & FY 2007 ........................33

Campus Services Auxiliary – MainStreet Budget Summary

FY 2006 & FY 2007.............................................................................................34

Room, Board, and Apartment Rates...........................................................................35

Parking Services............................................................................................................36

Intercollegiate Athletics................................................................................................37

Fifth Third Arena at the Myrl H. Shoemaker Center...............................................38

27
 UNIVERSITY OF CINCINNATI
AUXILIARY ENTERPRISES
OVERVIEW

An auxiliary enterprise provides a service to students, faculty or staff and charges fees
related to, but not necessarily equal to, the cost of the services. The distinguishing
characteristic of most auxiliary enterprises is that they should be managed essentially as
self-supporting activities whose services are provided primarily to individuals in the
institutional community rather than to departments of the institution. Accordingly, any
budget overruns or negative fund balances must be managed by the auxiliary functions.

The Campus Services auxiliary enterprise was created in Fiscal Year 2000 to support the
new Campus Life and MainStreet planning initiatives. The following are the highlights
of each unit's FY 2007 budget plan.

CAMPUS SERVICES AUXILIARY - Overview

Campus Services is a single umbrella organization that consists of six auxiliary

departments that provide a coordinated effort to meet the needs of the campus
community:

• Retail Services • Kingsgate Conference Center

• Housing and Food Services • Campus Recreation Center
• MainStreet Operations • Bearcat Campus Card

The completion of the MainStreet Projects (Tangeman University Center, Steger Student
Life Center, and the Campus Recreation Center) has resulted in significant new facilities
and services that should serve as great tools for attracting and retaining students.
Campus Services, in conjunction with Finance, University Architect and Construction
Management, has developed a long-term financial plan that identifies income sources,
operating expenses, and annual debt service obligations for all of its units. The new
MainStreet construction, Sawyer Hall demolition, and Turner/Schneider residence halls
have added significant debt service obligations for the auxiliaries. Campus Services
departmental revenues will partially offset this debt. Campus Services units, as a whole,
are projected to operate at a deficit for the next several years. MainStreet and Campus
Recreation will continue to operate in a deficit mode. Increased square footage, building
volume, and energy rates have resulted in substantial increases in utility costs across
Campus Services as well.
To offset lost funding allocations, Campus Services has implemented additional cost
controls to reduce operating expenses and will be pursuing new opportunities for revenue
enhancement, including additional membership programs and fundraising.
Retail Services consists of seven UC Bookstores locations, Central Stores, and Vending
Services. In FY06, the management of the bookstore operations was outsourced to the
Follett Higher Education Group. This 10-year contract allows the University to recover
the funds invested in bookstore inventory and provides a minimum guaranteed income to

28
Campus services of approximately $1,650,000. Improvements to store layouts and on-
line services will also occur in FY07 as part of this contract. Central Stores operates in
coordination with a contract with Office Depot and Vending Services is operated
partially in-house and partially by a contract with the Rehabilitation Services
Commission of Ohio.

Housing & Food Services serves approximately 3400 students in both residence halls
and apartments. The number of available beds had dropped by about 600 with the
demolition of Sawyer hall. Debt service expenses reflect the full debt service for CRC
housing, Turner/Schneider halls, and the Sawyer Hall demolition. Housing will operate
in a deficit mode in FY07 as it addresses this and utility rate increases. As a partial
response, and in alignment with tuition increases, both room and board rates were
increased at 5%. Occupancy is projected to average 90% for the academic year.

Food Services operates two national-award-winning residential dining centers –

including the gold medal award-winning CenterCourt dining center in the Campus
Recreation Center. Traditional board plans have been changed to more flexible “block”
plans – allowing students to use their meal plans as often as they wish rather than at
prescribed times during the day. The dining centers are operated under a contract with
Aramark.

Food Services also operates several retail locations, including the Faculty Club which is
moving to the new Varsity Athletic Center in July 2007. The Faculty Club receives
central funding in addition to the revenue it generates and is operated under a
management fee contract with Ararmark.

MainStreet Operations consists of business operations, facilities management, and

program coordination for Tangeman University Center, Steger Student Life Center, and
MainStreet open spaces. Specific operational venues include the Catskeller Game Room
& Sports Lounge, MainStreet Cinema, and a variety of food service operations –
including catering, Wendy’s, Starbucks, Pizza Hut, Subway, and Gold Star Chili.
MainStreet Operations relies on the revenue it generates and central budget subsidy to
meet its financial obligations. Due in part to a reduction in central budget subsidies of
approximately $1,000,000 the operating deficit is larger than originally planned.

The Bearcat Campus Card is a debit and charge card system that provides convenient
payment options to students, faculty, and staff at various retail locations both on and off
campus. The program provides nearly 500 locations where goods and services can be
purchased with the card. This unit relies primarily on the fee it charges to “vendors” who
accept the card. Sales on the card will exceed $4,000,000.

Kingsgate Conference Center and University Conferencing continue to earn a high

level of satisfaction from guests and attendees with respect to facilities, lodging,
conference management services, and restaurant. Operated under a contract with
Marriott, the Kingsgate Marriott continues to meet its debt service and other financial
obligations and continues to rank at the top of its competitive group in numerous
operational categories.

29
The Campus Recreation Center (CRC) opened in February 2006 to much local and
national acclaim. The CRC met its opening target of 800 members by selling
memberships at a discounted rate. To date, the CRC currently has over 1200
memberships and forecasts to double that number within the next year. The Campus
Recreation Center facilities and services are expected to provide great added value to
campus life, appealing to prospective students, staff, and faculty and helping to retain
current students. Revenue sources include the campus life fee (charged to students in
their quarterly fee assessment), membership fees to non-student members, and program
and service fees. The CRC is projected to continue to operate in a deficit mode past this
budget year. This budget also includes central budget subsidies that are planned to assist
the department in meeting its debt service obligations. The subsidy for FY07 has been
reduced by approximately $1,000,000, creating a larger deficit than originally forecast.
Cost control measures on utilities and plant maintenance have been put in place. New
revenue from programs and increased membership are planned to impact this loss of
funding.

II. OTHER AUXILIARY ENTERPRISES - Overview

Parking Services

Parking Services will continue to align itself with and work to fulfill the goals of UC|21
in FY07 by building strong working relationships with the university community. The
installation of new elevators at University Avenue Garage was delayed due to
construction in the area but should begin May 2006 and be completed by Fall 2006.
Varsity Village Garage was opened March 2006 offering an additional 150 parking
spaces to the university campus. In addition, cash parking was expanded in Lot 16 and
22. Three additional garage facilities were upgraded to proximity card systems--
Woodside Garage, Kingsgate Garage and Clifton Court Garage.

Parking strives to meet the needs of its customer base offering decal, hourly, and special
event parking in all facilities simultaneously. We will continue to offer the safety zone
after hours reduced rate parking in the Woodside Garage on the West campus as well as
the Eden Avenue Garage on the East Campus. One of the most widely used service
offered by Parking, the Motorist Assistance Program (MAP) for car unlocks and battery
jumps continues to assist stranded motorists throughout the university community.
Parking updated website enables the community to provide feedback, explore value-
added services, purchase parking, pay citations, print a map, find driving directions to
campus or even appeal a citation.

Parking Services is a self sustaining operation which means that we rely solely on income
derived from decals and cash parking to fund our operations. With maintenance costs for
older facilities rising, and with the additional debt brought on by the Varsity Village and
Calhoun Garages, Parking will need to increase rates for the FY07 year. Decal rates will
increase by $1-4 per month depending upon the facility location.

30
Intercollegiate Athletics

Similar to FY 2006 when UC Athletics began competing in the prestigious Big East
Conference, FY 2007 will be marked by more significant changes -- the inaugural year in
the new Richard E. Lindner Center and the emergence of a new administration.

While previous long-term forecasts had projected FY 2006 to be the beginning of a

balanced budget cycle for Athletics, unfortunately, due to events and expenditures which
were both unforeseen and outside of the department’s control -- this was obviously not
realized. It is now apparent that planned efforts to reduce the deficit fund balance will
need to be realistically reviewed and revised during FY 2007. As part of this effort, the
revenue-producing side of the department is in the process of being aggressively
reorganized to advantage of emerging funding opportunities which will be generated by
the excitement of Varsity Village and a new coaching staff in the men’s basketball
program.

Fifth Third Arena at the Myrl H. Shoemaker Center

The current income level is consistent with the previous year while a slight decrease is
being projected in total expenditures. We believe that these projections are an accurate
reflection of the steps we need to take in the current budget environment.

31
 SUMMARY OF AUXILIARY OPERATIONS
UPTOWN CAMPUS
(IN THOUSANDS)

FISCAL YEAR 2006

RESOURCES EXPENDITURES and TRANSFERS

Total Debt Other Total Net
Auxilliary Restricted Expenses
Budget Service Transfers Budget Income
Campus Services Auxilliary* 45,645 45,645 38,219 8,040 (577) 45,682 (37)

CSA - Mainstreet 11,175 11,175 6,465 8,638 (988) 14,116 (2,941)

Parking Lots and Garages 15,335 15,335 7,026 7,680 (23) 14,683 652

Intercollegiate Athletics 12,054 4,792 16,846 28,185 233 (5,694) 22,724 (5,878)

Fifth Third Arena 496 496 1,462 600 (1,566) 496 -

GRAND TOTAL 84,705 4,792 89,497 81,358 25,190 (8,847) 97,701 (8,204)

FISCAL YEAR 2007

RESOURCES EXPENDITURES and TRANSFERS

Total Debt Other Total Net
Auxilliary Restricted Expenses
Budget Service Transfers Budget Income
Campus Services Auxilliary* 34,353 34,353 26,128 8,895 486 35,509 (1,156)

CSA - Mainstreet 11,792 11,792 8,105 13,670 (2,190) 19,585 (7,793)

Parking Lots and Garages 16,499 16,499 8,380 9,578 (101) 17,858 (1,359)

Intercollegiate Athletics 12,740 5,292 18,031 26,883 4,091 (9,180) 21,793 (3,762)

Fifth Third Arena 571 571 1,393 603 (1,426) 571 -

GRAND TOTAL 75,955 5,292 81,247 70,890 36,837 (12,410) 95,317 (14,070)

* Campus Services Auxiliary includes Retail, Food Services, Housing, Faculty Club, Kingsgate, and
Conference Management.

32
 CAMPUS SERVICES AUXILIARY SUMMARY (excludes MainStreet)
Comparison of FY 2006 to FY 2007 Budget
(IN THOUSANDS)

2006
2007 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Sales 18,559 3,581 (14,978) -80.70%
Student Meals 7,911 8,248 337 4.26%
Housing 16,060 17,772 1,712 10.66%
Rentals - - -
Contracts 1,270 3,359 2,089 164.49%
Other 1,845 1,393 (453) -24.53%
Miscellaneous Student Fees - - -
Total Resources 45,645 34,353 (11,292) -24.74%

EXPENDITURES
Cost of Sales 19,712 9,260 (10,453) -53.03%
Salaries 5,120 3,576 (1,545) -30.17%
Benefits 1,933 1,481 (452) -23.37%
DOE 8,415 9,023 608 7.22%
University Overhead 1,151 1,197 46 4.01%
Programming 1,888 1,592 (296) -15.67%
Total Expenditures 38,219 26,128 (12,091) -31.64%

Mandatory Transfers
Debt Service 8,040 8,895 855 10.64%
Non-Mandatory Transfers
Reserve for Repairs and Renovations - - -
Reserve - Other - - -
Subsidies to Non-Instructional Activities (189) (537) (348) 183.91%
Internal Campus Services Overhead 912 1,023 111 12.16%
Other (1,300) - 1,300 -100.00%
Total Expenditures and Transfers 45,682 35,509 (10,173) -22.27%

Net Increase (Decrease) in Fund Balance (37) (1,156)

*Campus Services Auxiliary includes Retail, Food Services, Housing, Faculty Club, Kingsgate, and
Conference Management.

33
 CAMPUS SERVICES AUXILIARY SUMMARY - MainStreet
Comparison of FY 2006 to FY 2007 Budget
(IN THOUSANDS)

2006
2007 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Sales 649 696 47 7.25%
Student Meals - - -
Housing - - -
Rentals - - -
Contracts 437 508 71 16.27%
Other 647 725 79 12.20%
Miscellaneous Student Fees 9,443 9,863 420 4.45%
Total Resources 11,175 11,792 617 5.52%

EXPENDITURES
Cost of Sales 15 31 16 103.33%
Salaries 2,755 3,428 674 24.46%
Benefits 940 949 9 0.98%
DOE 2,256 3,177 921 40.83%
University Overhead - - -
Programming 500 520 20 4.00%
Total Expenditures 6,465 8,105 1,640 25.36%

Mandatory Transfers
Debt Service 8,638 13,670 5,032 58.25%
Non-Mandatory Transfers
Reserve for Repairs and Renovations 507 518 11 2.26%
Reserve - Other 2 - (2) -100.00%
Subsidies to Non-Instructional Activities (1,604) (3,260) (1,656) 103.24%
Internal Campus Services Overhead 608 552 (56) -9.21%
Other (500) - 500 -100.00%
Total Expenditures and Transfers 14,116 19,585 5,469 38.75%

Net Increase (Decrease) in Fund Balance (2,941) (7,793)

* Campus Services Auxiliary - Main Street includes Tangeman University Center/Student Life Center
and Campus Recreation Center.

34
 ROOM, BOARD, AND APARTMENT RATES
FISCAL YEAR 2006-07

2005-06 2006-07
Actual Actual

QUARTER ANNUAL QUARTER ANNUAL

1
I. SCHEDULE OF BASIC ROOM RATES
A. Calhoun, Daniels, Siddall, Dabney $1,560 $4,680 $1,638 $4,914
(Multiple Occupancy)

B. Calhoun, Daniels, Siddall, Dabney 1,818 5,454 1,909 5,727

(Designed Singles if available)

C. Calhoun, Daniels, Siddall, Dabney 1,939 5,817 2,620 7,860

(Super Single if Available)

D. Turner Hall2 1,865 5,595 1,958 5,874

(Double Suites)

E. Turner, Schneider Halls 2 1,995 5,985 2,095 6,285

(Single Suites)

F. Campus Recreation Center (CRC) 2,150 6,450 2,258 6,774

3
II. SCHEDULE OF BASIC BOARD RATES
209 Vallue Plan/Quarter Plan (formerly 19 Meals/Week Plan) 1,070 3,210 1,124 3,372
154 Plan/Quarter Plan (formerly 14 Meals/Week Plan) 1,018 3,054 1,069 3,207
132 Plus Plan/Quarter Plan (formerly 12 Plus Meals/Week Plan) 1,070 3,210 1,124 3,372
78 Plus Meals/Quarter Plan 1,026 3,078 N/A N/A
78 Meals/Quarter Plan 968 2,904 N/A N/A
3
III. SCHEDULE OF ROOM AND BOARD RATES
209 Vallue Plan/Quarter Plan (formerly 19 Meals/Week Plan) 2,630 7,890 2,762 8,286
154 Plan/Quarter Plan (formerly 14 Meals/Week Plan) 2,578 7,734 2,707 8,121
132 Plus Plan/Quarter Plan (formerly 12 Plus Meals/Week Plan) 2,630 7,890 2,762 8,286
78 Plus Meals/Quarter Plan 2,586 7,758 N/A N/A
78 Meals/Quarter Plan 2,528 7,584 N/A N/A
IV. OFF CAMPUS MEAL TICKET RATES
45 Meals/Quarter Plan 360 1,080 375 1,125
33 Meals/Quarter Plan 245 735 255 765
25 Meals/Quarter Plan 185 555 195 585
15 Meals/Quarter Plan 125 375 130 390
15 Lunch only/Quarter Plan N/A N/A 120 360

4
V. SCHEDULE OF APARTMENT RATES - PER MONTH

Efficiency without balcony $502 $527

Efficiency with balcony 528 554
One Bedroom 612 643
Two Bedroom 730 767
Penthouse 1,031 1,083

1) The option of a quarterly residence hall contract is available to upperclassmen as part of a pilot program for an
additional surcharge of $300.

2) The option of signing a twelve month lease is available to Turner Hall, Schneider Hall, and Campus Recreation Center residents.
This option adds $843 to the annual rate.
3) Weekly meal plans have been converted to quarter plans and the 78 meals plans have been cancelled.
4) Graduate and Family housing published rates include base phone service.

35
 PARKING LOTS AND GARAGES
(IN THOUSANDS)

2006
2007 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Sales and Fines 15,335 16,499 1,164 7.59%
Total Resources 15,335 16,499 1,164 7.59%

EXPENDITURES and TRANSFERS

Administrative and General 2,230 2,467 237 10.64%
Operation and Maintenance of Plant 4,796 5,413 618 12.88%
University Overhead 500 500 100.00%
University Hall Lease 1 (1) -100.00%
Total Expenditures 7,026 8,380 1,354 19.27%
Mandatory Transfers
Debt Service 7,680 9,578 1,899 24.72%
Non-Mandatory Transfers
Subsidies to Non-Instructional Activities (96) (98) (2) 1.75%
Other (87) (4) 83 -95.98%
Reserve for Repairs and Renovations 161 1 (160) -99.38%
Total Expenditures and Transfers 14,683 17,858 3,175 21.62%

Net Increase (Decrease) In Fund Balance 652 (1,359)

36
 INTERCOLLEGIATE ATHLETICS
(IN THOUSANDS)

2006
2007 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Sports
Men's Basketball 4,942 5,013 71 1.43%
Football 4,645 4,935 290 6.24%
Gifts 4,792 5,292 500 10.43%
Other 2,467 2,792 325 13.17%
Total Resources 16,846 18,031 1,185 7.04%

EXPENDITURES and TRANSFERS

Sports
Basketball 6,403 3,344 (3,059) -47.77%
Football 7,270 7,395 125 1.72%
Women's Sports 4,853 5,043 190 3.91%
Other Men's Sports 2,017 2,146 129 6.38%
Total Sports 20,543 17,928 (2,615) -12.73%
Administrative and General 7,219 8,168 949 13.15%
Operation and Maintenance of Plant 423 787 364 85.95%
Total Expenditures 28,185 26,883 (1,302) -4.62%
Mandatory Transfers
Debt Service 233 4,091 3,858 1655.58%
Non-Mandatory Transfers
Subsidies to Non-Instructional Activities (5,774) (9,260) (3,486) 60.38%
Other 80 80 0 0.00%
Total Expenditures and Transfers 22,724 21,793 (931) -4.10%

Net Increase (Decrease) in Fund Balance (5,878) (3,762)

37
 FIFTH THIRD ARENA
MYRL H. SHOEMAKER CENTER
(IN THOUSANDS)

2006
2007 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Special Event Revenue 40 147 107 267.50%
Operation and Maintenance Reimbursement 10 107 97 970.00%
Concessions 285 226 (59) -20.70%
Other 161 91 (69) -43.16%
Total Resources 496 571 76 15.28%

EXPENDITURES and TRANSFERS

Administrative and General 287 312 25 8.57%
Operation and Maintenance of Plant 1,175 1,081 (93) -7.94%
University Overhead
Total Expenditures 1,462 1,393 (69) -4.69%
Mandatory Transfers
Debt Service 600 603 4 0.64%
Non-Mandatory Transfers
Subsidies to Non-Instructional Activities (1,566) (1,426) 141 -8.98%
Total Expenditures and Transfers 496 571 75 15.19%

Net Icrease (Decrease) in Fund Balance - -

38
 IV. DESIGNATED GENERAL FUNDS
MILLENNIUM RESEARCH INSTITUTE

Overview ........................................................................................................................40

Millennium Research Institute..……………………………………………………...43

39
 UNIVERSITY OF CINCINNATI
DESIGNATED GENERAL FUNDS
MILLENNIUM RESEARCH INSTITUTE

Attachment A is background detailing what has been reported to and approved by the
Board of Trustees in the past. The University is reevaluating the entire Millennium Plan
process at this time to determine whether it continues to perform in the best interests of
the University. The University will report back to the Board of Trustees when the
reevaluation process is completed.

40
 ATTACHMENT A

UNIVERSITY OF CINCINNATI
DESIGNATED GENERAL FUNDS
MILLENNIUM RESEARCH INSTITUTE
OVERVIEW

It is the goal of the University of Cincinnati to establish a separately identifiable

and self-funded research institute. It is the goal of this plan through the UC
Medical Center Research Enterprise via the Millennium Research Institute to
double the sponsored research activity of the University of Cincinnati’s College
of Medicine to $300M. The center will require the hiring of 200 new research
faculty members and will encompass, at the outset, the Genome Research
Institute (GRI) and Medical Sciences Building facilities, with the addition of the
CARE facility in the future. This center will be a major player in the
University’s participation in the Third Frontier program introduced and fully
supported by the Governor of Ohio.

The allocation methodology for Facilities and Administrative Cost (F&A) income
resulting from this increased sponsored research revenue for the Center is
different from that of the normal University policy distribution. The
methodology change is to be used on those funds received in excess of the
established base for FY 2000 related to East Campus Sponsored Programs only.
The revised allocations will be as follows:

8% Off-the-Top (Research Infrastructure)

20% Departmental Allocation
21% Facilities Expenses
19% GRI Renovations-Debt Service
32% Research Recruitment Fund
100% Total F&A Income

These distributions have been set with the knowledge that certain items such as
Off-the-Top may need to be increased if support services for these programs
increase in cost or scope. It is recognized that the Departmental Allocation of
20% is subject, at all times, to the support of this program’s infrastructure,
facility replacement, recruiting expense and a portion of unrecoverable faculty
salary and benefits involved in the Millennium program.

The established business plan leads to a self-funded end. The Center will
accumulate deficit amounts that will be subject to TIP interest charges, which
41
will hold harmless the Uptown campus General funds budget from lost interest
revenues. At the time the program reaches self-liquidity, the University will
revisit the restated F&A distribution policy for the Center and determine
necessary realignment with the University-wide F&A distribution policy that
exists at that time.

During the first five years of the program, the activities of the Institute have
primarily focused on identifying the appropriate programmatic areas for
recruitment and the establishment of task forces to identify key research recruits.
The programmatic areas have been aligned with the NIH Roadmap and key
recruitments have taken place within the identified areas. Areas of focus include
Cancer Biology, Cardiovascular Biology, Neuroscience, Metabolic Disorders and
Obesity. To date, thirty-seven Millennium Scholars have been recruited bringing
with them $3.6M in research awards and securing approximately $9.9M in new
awards since arriving on campus. The Scholars have also submitted
approximately $76M in research applications. In addition to recruitment,
significant progress has been made in relation to the physical infrastructure of
the Genome Research Institute and the facility is now operational and generating
great interest from both the private and public sectors.

As discussed earlier and projected in the original business plan, the fund will end
the current fiscal year in a deficit position and is projected to continue to
accumulate additional expenses during FY 2007. The negative fund balance is
the result of debt service payments for the Genome Research Institute facility,
facility maintenance and operation costs including escalating utility costs for
GRI paid from the fund, and the direct expenses of recruitment and faculty start-
up packages as outlined in the Millennium plan.

42
 DESIGNATED GENERAL FUNDS
MILLENNIUM RESEARCH INSTITUTE
(IN THOUSANDS)

2006
2007 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Government, Private Grants and Contracts 8,127 7,358 (769) -9.46%
Rental Income 656 75 (581) -88.56%
Other Sources (387) (387) 100.00%
Total Resources 8,783 7,046 (1,737) -19.77%

EXPENDITURES
Educational and General
Separately Budgeted Research 16,547 8,960 (7,587) -45.85%
Operation and Maintenance of Plant 3,048 4,571 1,523 49.98%
Total Educational and General 19,594 13,531 (6,063) -30.94%
Mandatory Transfers
Debt Service 5,038 6,185 1,148 22.78%
Non-Mandatory Transfers
Plant Funds 292 31 (261) -89.38%
Total Expenditures and Transfers 24,923 19,747 (5,176) -20.77%

1
Net Increase (Decrease) in Fund Balance (16,141) (12,701)

(1) Millennium Plan is required to be self-funded by the end of the program.

43
 V. OTHER DESIGNATED FUNDS

Overview ........................................................................................................................45

Other Designated General Funds - Excluding Hoxworth Blood Center and

The Millennium Research Institute...................................................................47

Designated General Funds - University Service Centers:

UCit .......................................................................................................................48

Consolidated Utilities...........................................................................................49

44
 UNIVERSITY OF CINCINNATI
OTHER DESIGNATED GENERAL FUNDS
OVERVIEW
Other Designated General Funds excluding Hoxworth Blood Center and the Millennium
Research Institute are those funds that are internally restricted by Board of Trustee
approval for specific activities. Other designated funds are locally managed with little
control exercised centrally. They are managed by not allowing departments to budget
above their expected level of revenue plus accumulated fund balance. They represent an
important opportunity for leveraging undesignated general funds in supporting the overall
mission of the institution and providing enhancements. Incentive programs for sponsored
projects and continuing education activities give departments discretionary funds that are
used for instructional programs.

The student fee revenue herein is the result of fees designated for self-supported
instructional program expenditures. Also included in this revenue projection is the
Information Technology and Instructional Equipment (IT&IE) fee income of $7.2M.
This fee is used to fund improved access to and assistance with information technology
and to fund other types of instructional equipment. Virtually all students on the Uptown
campus are assessed this $105 per quarter fee.

The projected grant and contract revenue primarily represents the incentive monies
retained by departments for their share of the Sponsored Project Incentive Award
Program. Instruction, as well as departmental research, is supported through the use of
these funds. These funds are showing a drop in revenue based on a projected decline in
Federal and State funding. They remain an important source of flexibility for the
departments, especially as additional research generates more funds. This income rises
or declines in relation to the increase or decrease in grants and contracts awarded to the
university.

The sales and services revenue is generated primarily by the outpatient clinical activities
of the College of Medicine. Much of the net revenue, above the level of support needed
to operate the clinical labs, is used to supplement the instructional expenditures of
individual departments.

FY 2007 is the eighth year in which OBR Challenge program income is being
incorporated into the Undesignated General Fund with transfers being made to
designated funds to support both existing programs and policies that contribute toward
the goals of each Challenge program. The Undesignated General Funds category within
designated reflects $5.9M of transfers to meet these program goals.

The final two tables in this section represent the budgets for the two largest University
Service Centers. These are centers that provide products or services to the entire
University community, and charge rates to the various funds to recover their costs. These
schedules cannot be summed with the other Designated Fund schedules to determine a
total for the fund, because their income is accounted for as an offset to expenditures.

45
While they function as self-supporting entities over time, they are presented here due to
their relative size when compared to other funds and departments.

46
 DESIGNATED GENERAL FUNDS
EXCLUDING HOXWORTH BLOOD CENTER AND MILLENNIUM RESEARCH INSTITUTE
(IN THOUSANDS)

2006
2007 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Gross Tuition, Fee and Other Student Charges 18,100 19,103 1,003 5.54%
Less Scholarships and Fellowships
Net Tuition, Fee and Other Student Charges 18,100 19,103 1,003 5.54%

Govt and Private Grants and Contracts 20,137 18,323 (1,814) -9.01%
Private Gifts 110 138 28 25.77%
Endowment Income 1,052 1,064 12 1.17%
Sales and Service 19,489 19,693 203 1.04%
Other Sources 1,370 1,183 (187) -13.62%
Total Resources 60,257 59,505 (753) -1.25%

EXPENDITURES
Educational and General
Instructional and General 15,916 15,457 (459) -2.88%
Separately Budgeted Research 12,010 11,516 (494) -4.11%
Public Service 11,409 11,147 (263) -2.30%
Academic Support 11,359 11,286 (73) -0.64%
Student Services 11,950 11,398 (552) -4.62%
Institutional Support 5,540 5,063 (478) -8.62%
Operation and Maintenance of Plant - - - 0.00%
Scholarships and Fellowships 629 500 (129) -20.51%
Total Educational and General 68,814 66,366 (2,448) -3.56%

Auxiliary Enterprises 21 21 - 0.00%

Mandatory Transfers
Debt Service 9,750 6,991 (2,759) -28.30%
Nonmandatory Transfers
Subsidies to Non-Instructional Units
Undesignated General Funds (18,384) (13,944) 4,439 -24.15%
Other 0.00%
Total Expenditures and Transfers 60,201 59,434 (767) -1.27%

Net Increase (Decrease) In Fund Balance 56 71

47
 DESIGNATED GENERAL FUNDS
UCit
(IN THOUSANDS)

2006
2007 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Recovery - General Fund 12,670 9,500 (3,170) -25.02%
Recovery - Other 14,783 16,997 2,214 14.98%
Total Resources 27,453 26,497 (956) -3.48%

EXPENDITURES
Compensation 13,443 13,139 (304) -2.26%
All Other 10,671 10,814 143 1.34%
Total Expenditures 24,114 23,953 (161) -0.67%
Mandatory Transfers
Debt Service 70 285 215 307.14%
Non-Mandatory Transfers
Plant Fund 1,250 725 (525) -42.00%
Other Transfers 1,217 1,275 58 4.81%
Total Expenditures and Transfers 26,651 26,238 (413) -1.55%

Net Increase (Decrease) in Fund Balance 802 259

This budget reflects resources and expenditures for a University Service Center. A University Service
Center is an entity which provides a service or product on a continuing basis to the University
Community (sometimes including the public) and charges the user a predetermined rate which is
calculated to recover the total cost of operation over a specified period of time.

48
 DESIGNATED GENERAL FUNDS
CONSOLIDATED UTILITIES
(IN THOUSANDS)

2006
2007 Percent
Budget Variance
Budget Change
Revised
RESOURCES
Recovery - Steam 17,938 21,573 3,635 20.27%
Recovery - Chilled Water 11,397 14,384 2,987 26.21%
Recovery - Electric 21,725 25,818 4,093 18.84%
Recovery - Water and Sewage 3,587 2,305 (1,282) -35.74%
Total Resources 54,647 64,080 9,433 17.26%

EXPENDITURES
Compensation 4,547 4,914 368 8.08%
All Other 42,813 49,059 6,246 14.59%
Total Expenditures 47,360 53,973 6,613 13.96%
Mandatory Transfers
Debt Service 6,044 6,405 361 5.97%
Non-Mandatory Transfers
Plant Fund 1,190 1,190 - 0.00%
Undesignated Central (16) (5) 10 -65.68%
Designated Central (4,800) (2,462) 2,338 -48.71%
Other 3,835 5,210 1,375 35.85%
Total Expenditures and Transfers 53,614 64,312 10,698 19.95%

Net Increase (Decrease) in Fund Balance 1,033 (232)

This budget reflects resources and expenditures for a University Service Center. A University Service
Center is an entity which provides a service or product on a continuing basis to the University
Community (sometimes including the public) and charges the user a predetermined rate which is
calculated to recover the total cost of operation over a specified period of time.

49
 VI. RESTRICTED FUNDS

Overview ........................................................................................................................51

Restricted Funds ...........................................................................................................52

50
 UNIVERSITY OF CINCINNATI
RESTRICTED FUNDS
OVERVIEW
Restricted Funds are those funds that the University receives that have been designated
by an external agency or individual and are limited to the support of a specific purpose
and/or unit. Included in this group are gift funds, the earnings on endowments, and both
private and governmental grants and contracts. Restricted funds are under the local
control of colleges and departments, within the external restrictions imposed. Actual
income must have been received, or guaranteed, from these sources before expenditure
budgets are approved. These funds are an important addition to the University budget, in
terms of their leveraging effects to the undesignated general fund.

Restricted fund revenue sources have been aggressively pursued, and the results of those
efforts are being realized in the current fiscal year. We are anticipating revenues in
excess of budget for the current fiscal year of approximately $77K.

State appropriations are primarily funds retained by the College of Medicine for Clinical
Teaching Subsidy. A variety of programs are supported at the College with this
important source of funds.

Grants and contract income is received from both private and governmental research.
Projections for this income category for FY 2005 and again in FY 2006 moved in a
positive direction while it is projected that there will be a 10% decrease in FY 2007.
We therefore anticipate that this downward trend will result in a $30M down-swing.

Endowment income continues to rise, and we anticipate continued growth in this

category for FY 2007 based on a 2 year change in the endowment spending policy which
increased from 5% to 6%.

Included in the “Other” nonmandatory transfers, about $37M represents the total
overhead transferred back to unrestricted funds. Over 40% of the overhead earned on the
grants and contracts is channeled back to departments through the Sponsored Project
Incentive Program in designated funds. These monies are used by the departments for
discretionary purposes. The remaining overhead transfer is reported as unrestricted
revenue to the undesignated general fund.

51
 RESTRICTED FUNDS
(IN THOUSANDS)

2006
2007 Percent
Budget Variance
Budget Change
Revised
RESOURCES
State Appropriations 12,503 12,530 27 0.22%
Government, Private Grants and Contracts 305,007 274,507 (30,501) -10.00%
Private Gifts 32,620 41,242 8,622 26.43%
Endowment Income 47,418 63,637 16,219 34.20%
Temporary Investments 28 78 49 174.39%
Other 6,400 912 (5,488) -85.75%
Total Resources 403,977 392,905 (11,072) -2.74%

EXPENDITURES
Educational and General
Instruction and Department Research 62,661 62,296 (364) -0.58%
Separately Budgeted Research 210,925 198,295 (12,631) -5.99%
Public Service 11,543 11,036 (507) -4.39%
Academic Support 13,439 13,890 451 3.35%
Student Services 3,407 3,468 61 1.80%
Institutional Support 3,803 5,643 1,840 48.40%
Operation and Maintenance of Plant - - -
Scholarships and Fellowships 45,638 45,426 (212) -0.46%
Total Educational and General 351,415 340,054 (11,362) -3.23%

Mandatory Transfers
Debt Service - 283 283 100.00%
Non-Mandatory Transfers
Other 52,478 52,492 14 0.03%
Total Expenditures and Transfers 403,893 392,828 (11,065) -2.74%

Net Increase (Decrease) in Fund Balance 84 77

52
University of Cincinnati
Financial Report for the Years Ended
June 30, 2007 and 2006
 BOARD OF TRUSTEES*

Phillip R. Cox (2008)

Anant R. Bhati Secretary (2009)

Jeffrey L. Wyler Chair (2010)

H. C. Buck Niehoff Vice Chair (2011)

Sandra W. Heimann (2012)

Gary Heiman (2013)

Margaret E. Buchanan (2014)

C. Francis Barrett (2015)

Thomas H. Humes (2016)

Nicholas M. Furtwengler Student Member (2007)

Daisy-Malloy Hamburg Student Member (2008)

OFFICERS OF THE UNIVERSITY

Nancy L. Zimpher President

Anthony J. Perzigian Senior Vice President and Provost for Baccalaureate

and Graduate Education

Jane E. Henney Senior Vice President and Provost for Health Affairs

Monica Rimai Senior Vice President for Administration and Finance

Sandra Degen Vice President for Research

Mitchel D. Livingston Vice President for Student Affairs and Services

James D. Plummer Vice President for Finance

Frederick H. Siff Vice President for Information Technology

Gregory J. Vehr Vice President for Governmental Relations and University Communications

Michael Carroll Vice President for Development and Alumni Affairs and
President of the UC Foundation

*The expiration date of each trustee's term is shown in parentheses.

 TABLE OF CONTENTS

Report of Independent Accountants ................................................................................ 7

Management Discussion and Analysis............................................................................ 9

Statements of Net Assets.............................................................................................. 18

Statements of Revenues, Expenses and Changes in Net Assets ................................. 19

Statements of Cash Flows ............................................................................................ 20

Notes to Financial Statements ...................................................................................... 22

 Deloitte & Touche LLP
250 East 5th Street
Suite 1900
Cincinnati, OH 45202-5109
USA
Tel: +1 513 784 7100
Fax: +1 513 784 7204
www.deloitte.com
INDEPENDENT AUDITORS’ REPORT

The Board of Trustees of

The University of Cincinnati

We have audited the accompanying statements of net assets of the University of Cincinnati (the “University”), a
component unit of the State of Ohio, as of June 30, 2007 and 2006 and the related statements of revenues, expenses and
changes in net assets and of cash flows for the years then ended. These financial statements are the responsibility of the
University’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We did not audit the financial statements of the University of Cincinnati Foundation, a discretely presented component
unit. Those financial statements were audited by other auditors whose report has been furnished to us, and our opinion,
insofar as it relates to the amounts included for the University of Cincinnati Foundation, is based solely on the report of
such other auditors.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the University’s internal control over financial reporting. Accordingly, we express no such opinion.
An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audits and the reports
of other auditors provide a reasonable basis for our opinion.

In our opinion, based on our audits and the reports of the other auditors, such financial statements present fairly, in all
material respects, the financial position of the University as of June 30, 2007 and 2006, and the results of its operations
and its cash flows (where applicable) for the years then ended in conformity with accounting principles generally
accepted in the United States of America.

As discussed in Note 1C to the financial statements, the financial statements include investments valued at $437 million
(22% of net assets) and $325 million (17% of net assets) as of June 30, 2007 and 2006, respectively, whose fair values
have been estimated by management in the absence of readily determinable fair values. Management's estimates are
based on information provided by the fund managers or the general partners.

As discussed in Note 12 to the financial statements, the University has a 29.09% equity interest in the Health Alliance of
Greater Cincinnati (the “Alliance”) as a participating entity. During 2006 certain other Alliance participating entities
delivered notices to the Alliance of their intention to terminate their participation in the Alliance. During 2007, it was
entered in the Court of Common Pleas of Hamilton County, Ohio that these certain entities have the right to terminate
their participation in the Alliance. In addition, during 2007, these certain other participating entities filed an action to
dissolve the Alliance. This matter is still pending in the Court of Common Pleas of Hamilton County, Ohio.

Management’s Discussion and Analysis on pages 9–17 is not a required part of the basic financial statements but are
supplementary information required by Governmental Accounting Standards Board. The supplementary information is
the responsibility of the University’s management. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the supplementary
information. However, we did not audit the information and express no opinion on it.

October 12, 2007

Member of
Deloitte Touche Tohmatsu
UNIVERSITY OF CINCINNATI JUNE 30, 2007

MANAGEMENT’S DISCUSSION AND ANALYSIS

INTRODUCTION

The following discussion and analysis provides an overview of the financial position and activities of the University of
Cincinnati (the “University”) for the year ended June 30, 2007, with selected comparative information for the years
ended June 30, 2006 and 2005. Comments relate only to the University and do not pertain to the University of
Cincinnati Foundation, a component unit of the University. This discussion has been prepared by management and
should be read in conjunction with the financial statements and the notes thereto, which follow this section.

The University was founded in 1819 and was city owned until becoming a state university in 1977. The University is
composed of 14 colleges, one division and one school and operates on three campuses in southwest Ohio. It has an
enrollment of approximately 35,000 students. There are approximately 2,000 full-time faculty members and a total
faculty of 4,000. The University has been designated in long-range planning by the Ohio Board of Regents as one of
only two comprehensive graduate public universities in the state. In total, the University employs more than 14,000
people and is the largest employer in the Cincinnati region.

The University and its Board of Trustees are declared by statute to be a public body performing essential
governmental functions serving public purposes and an instrumentality of the State of Ohio. The Board of Trustees
comprises nine members appointed by the Governor of Ohio for overlapping terms of nine years.

The University is affiliated with a number of health care, educational, cultural and governmental institutions. Through
such affiliations, the University is able to broaden its curricular offerings.

USING THE FINANCIAL STATEMENTS

The University’s financial report includes three financial statements: the Statement of Net Assets; the Statement of
Revenues, Expenses and Changes in Net Assets; and the Statement of Cash Flows. These financial statements are
prepared in accordance with Governmental Accounting Standards Board (GASB) Statement 35, Basic Financial
Statements—and Management’s Discussion and Analysis—for Public Colleges and Universities, as amended by
GASB Statements 37 and 38. These statements establish standards for external financial reporting for public
colleges and universities and require that financial statements focus on the University as a whole, with resources
classified for accounting and reporting purposes into three net asset categories.

Revenues and expenses are categorized as either operating or non operating. Significant recurring sources of the
University’s revenues, including state appropriations, gifts and investment income are considered non operating.

Scholarship allowances applied to student accounts are shown as a reduction of student tuition and fee revenues,
while stipends and other payments made directly to students are presented as scholarship and fellowship expense.

Capital assets, including general infrastructure assets, are shown net of depreciation. However, there is no
requirement to fund the accumulated depreciation. Instead, capital assets are largely funded by state capital
appropriations, issuance of debt, and by major gifts that support the academic, research and student services
missions of the institution. Gifts and capital appropriations are reflected on the financial statements as non operating
revenue and other revenue, respectively. The corresponding annual depreciation expense is reflected as an
operating expense.

Accounts of the University of Cincinnati Foundation have been consolidated in the accompanying financial
statements in a discrete columnar format.

9
UNIVERSITY OF CINCINNATI JUNE 30, 2007

FINANCIAL HIGHLIGHTS

The University’s financial position remained strong at June 30, 2007, with total assets of $ 3.3 billion and liabilities of
$1.3 billion. Net assets, which represent the residual interest in the University’s assets after liabilities are deducted,
increased by $105 million in fiscal 2007 to $2.0 billion, or 60% of total assets as a result of the following:

- Total assets increased by $226 million, or 7%, primarily due to increases in the value of endowment and
other non-current investments and the addition of capital assets.

- Total liabilities increased by $120 million, primarily due to the issuance of additional debt.

Income before other revenues, expenses, gains or losses includes the effect of several significant transactions,
including fluctuations in the market value of investments; non cash depreciation; losses on the disposal of assets;
federal financial aid program liabilities; increased benefit costs primarily due to retirement contributions and health
care; and expenses incurred related to bringing major projects on line. The net effect of these significant transactions
on income (loss) before other revenues, expenses, gains or losses is shown below.

2007 2006 2005

Change in investment value $ 167 $ 130 $ 65

Depreciation (87) (79) (72)
Loss on asset disposal - (11) (15)
Federal financial aid liability - (8) -
Benefit costs - (13) -
Expenses related to major capital projects - (13) -
$ 80 $ 6 $ (22)

Operating revenues increased by $37 million in 2007, compared to $11 million in 2006, primarily from increased
tuition revenue. The increase in tuition revenues was driven by tuition increases, which ranged from 6% to 11% in
2007 and 2006, and increases in enrollment of 2% and 3% in 2007 and 2006. Revenues from sponsored research
(grants and contracts) increased by $2 million in 2007, compared to a $3 million decrease in 2006.

Operating expenses in total were approximately flat at $927 million and $929 million in 2007 and 2006, reflecting the
University’s focus on cost containment. Operating expenses that increased included $8 million reflecting increased
research activity, $7 million for scholarships and fellowships that support enrollment growth, and $8 million for
depreciation expense for new and renovated buildings brought on line. Operating and maintenance of plant
expenses decreased $27 million, reflecting energy saving measures, budget cuts and staff reductions in facilities
management and other areas that support the University’s physical plant. Auxiliary enterprise expenses decreased
$3 million, primarily reflecting budget cuts in the Campus Services auxiliary. In 2006, operating expenses increased
by $77 million, primarily due to increases in depreciation, benefits costs, energy costs, and expenses incurred related
to bringing major projects on line. Other operating expenses were approximately flat.

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. Total
enrollment has increased from 32,975 in autumn 2002 to 35,527 in autumn 2006, with enrollment expected to exceed
36,000 in autumn 2007. Student quality has improved as well, with average ACT scores for baccalaureate freshmen
rising from 21.7 in 2002 to 24.0 in 2006. With the completion of the long period of dramatic new building construction,
the University’s capital activities now are focused on renovation and rehabilitation of existing buildings, of which the
largest is the Medical Sciences Building Rehabilitation Project.

Finally, in 2007 the University’s endowment exceeded $1 billion for the third year in a row. According to the National
Association of College and University Business Officers Endowment Study, the value of the endowment ranks in the
top 10% of all US institutions of higher education, both public and private.

10
UNIVERSITY OF CINCINNATI JUNE 30, 2007

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS

The statement of revenues, expenses and changes in net assets presents the University’s results of operations. A
summarized comparison for the years ended June 30 follows (in thousands):

2007 2006 2005

Operating revenues:
Student tuition and fees, net $ 260,605 $ 230,778 $210,937
Grants and contracts 192,360 190,666 193,877
Auxiliary enterprises, net 77,039 73,815 81,250
Other 64,296 61,873 60,375
594,300 557,132 546,439

Operating expenses:
Instruction 285,671 281,857 264,736
Research 153,247 144,764 143,848
Auxiliary enterprises 77,509 80,397 83,167
Depreciation 87,360 79,096 71,708
Other 323,113 342,591 288,281
926,900 928,705 851,740
Operating loss (332,600) (371,573) (305,301)

Nonoperating revenues (expenses):

State appropriations 185,864 179,857 179,007
Gifts 46,356 49,151 37,686
Investment income, net 60,311 54,443 53,448
Increase in fair value of investments 166,878 130,169 65,480
Interest expense, net (40,245) (31,005) (25,115)
Other (9,892) (6,909) (15,026)
409,272 375,706 295,480
Income (loss) before other revenues, expenses,
gains or losses 76,672 4,133 (9,821)

Capital appropriations 8,778 19,344 44,024

Capital grants and gifts 2,675 7,587 12,026
Additions to permanent endowments 16,966 13,414 15,203

Increase in net assets $ 105,091 $ 44,478 $ 61,432

The University’s financial condition improved in 2007 as demonstrated by the $77 million income before other
revenues, expenses, gains or losses, compared to $4 million and $(10) million in 2006 and 2005 respectively. The
University’s aggressive efforts to work toward stabilized operations resulted in increased operating revenues,
primarily from student tuition and fees, which, combined with flat operating expenses, led to the improvement.

One of the University’s greatest strengths is the diverse stream of revenues that supplement its student tuition and
fees, including voluntary private support from individuals, foundations and corporations along with government and
other sponsored programs; state appropriations and investment income. The University has aggressively sought,
and will continue to seek, funding from all possible sources consistent with its mission to supplement student tuition,
and will prudently manage the financial resources realized from these efforts to fund its operating activities.

11
UNIVERSITY OF CINCINNATI JUNE 30, 2007

Tuition and state appropriations are the primary sources of funding for the University. During 2007, tuition rate
increases ranged from 6% to 11%, depending upon the category of student. In addition, a 2% increase in overall
enrollment was achieved by increased recruitment and retention efforts. These increases, as well as changes in the
mix of students, resulted in increases in tuition and fee income in 2007 of $30 million, or 13%, over 2006. Similar
tuition increases were implemented in 2006, supplemented by a 3% increase in enrollment that resulted in increases
in tuition and fee revenue of $20 million, or 9%, in 2006 compared to 2005.

State appropriations increased $6 million, or 3%, in 2007, reflecting an improvement from the recent trend of flat or
decreasing state support for higher education. State appropriations now contribute a significantly lower percentage of
the overall funding of University operations, particularly compared to tuition. Nonetheless, such resources remain a
vital source of funding for academic programs and administrative costs. If future tuition increases are to be
minimized, the level of state appropriation support will need to be increased.

Revenues from grants and contracts with governmental and private entities provide for the recovery of direct and
indirect costs. Such revenues increased $2 million in 2007, rebounding from a slight decline in 2006. In a time of
heightened competitiveness, especially for federal research funding, the University is maintaining its research base.

The results of fund raising efforts have been an important component of financial resources during the past two fiscal
years. Expendable gifts to the University totaled $49 million and $57 million in 2007 and 2006, respectively. It will be
difficult to sustain the current level of operations without continued increases in donor support. Accordingly, plans are
being implemented for a fund raising campaign to increase the number of substantial recurring gifts that are available
for operations.

Investment income increased $6 million in 2007 compared to 2006, primarily reflecting growth in endowment income
on a higher level of endowment investments. Endowment investments increased $91 million in 2007.

Although higher education must compete with other state demands for increased state capital appropriations, the
decrease in capital appropriations in 2007 compared to 2006 reflects a temporary delay in obtaining a portion of the
biennial capital appropriation until the state issues its Buckeye Tobacco Settlement Financing Bonds, which is
expected to occur in late fall 2007.

STATEMENT OF NET ASSETS

The statement of net assets presents the financial position of the University at the end of the fiscal year. Net assets
represent the difference between total assets and total liabilities. Net assets are one indicator of the overall financial
condition of the University, while the change in net assets is an indicator of whether the overall financial condition has
improved or worsened during the year. Assets and liabilities are generally measured using current values. One
notable exception is capital assets, which are stated at historical cost less an allowance for depreciation. A
summarized comparison of the University’s assets, liabilities and net assets at June 30 follows (in thousands):

2007 2006 2005

Current assets $ 170,733 $ 154,435 $ 192,641
Noncurrent assets:
Endowment, life income and other investments 1,597,390 1,442,060 1,341,637
Capital assets, net 1,470,743 1,420,479 1,330,172
Other 61,332 57,648 57,519
Total assets 3,300,198 3,074,622 2,921,969

Current liabilities 326,494 288,353 209,951

Noncurrent liabilities 1,002,964 920,620 890,847

Net assets $ 1,970,740 $ 1,865,649 $ 1,821,171

12
UNIVERSITY OF CINCINNATI JUNE 30, 2007

Current Assets

Current assets consist primarily of cash, short-term investments and receivables. Cash and short-term investment
balances include both operating cash and capital debt proceeds. In 2007, the level of cash and short-term
investments increased by $31 million, primarily reflecting the proceeds of new debt borrowed for capital projects.
Deposits with bond trustees decreased by $9 million, primarily reflecting the release of prior debt service reserves no
longer required. These factors contributed to an overall increase of $16 million, or 11%, in total current assets.

Endowment, Life Income and Other Investments

The University invests its endowment to maximize total return over the long term with an appropriate level of risk.
The success of this long-term investment strategy is evidenced by strong returns sustained over long periods of time
and the University’s ability, in the face of current challenging markets, to limit losses. Changes in the fair value of the
endowment portfolio will not have a meaningful immediate impact on the portion of investment income available to
support current-year operating expenses because the University makes such distributions pursuant to its spending
rate policy.

The assets of the University’s endowment increased by $90 million in 2007. This increase resulted from investment
returns of $145 million, the establishment of new endowments of $17 million and distributions of $72 million to
beneficiary units within the University. In 2006, investment returns, new funds and distributions were $118 million,
$13 million and $62 million respectively. Under its endowment spending policy, the University uses its endowment to
support current operations in a way that generates a predictable stream of support, while at the same time
maintaining the purchasing power of endowment funds adjusted for inflation. The spending policy provides for annual
distributions of five percent (temporarily increased to 6% for 2007 and 2008) of the three-year quarterly moving-
average market value of assets in the investment pool. Due to the changes in valuation of these assets over the last
three years, actual distributions to beneficiary units were 5.4% and 4.2% of the beginning market value of these
assets in 2007 and 2006, respectively.

Non current investments increased by $14 million in 2007 reflecting additional debt proceeds borrowed for capital
projects during fiscal year 2007. In 2006, such expenditures decreased non current investments by $32 million.

Other long-term investments primarily represent the University’s equity interest in the Health Alliance of Greater
Cincinnati, valued at $375 million and $325 million in 2007 and 2006 respectively. The University and the 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 in 2007, compared to $12 million in 2006,
providing a return on asset of 2.4% and 3.7% respectively. For further discussion of the Health Alliance, please refer
to Note 12, Equity Interest in Alliance.

Capital Assets

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 $141 million in 2007, $181 million in 2006,
and $201 million in 2005 before depreciation expense of $87 million, $79 million, and $72 million in 2007, 2006 and
2005, 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 2007, the University
continued to focus its capital program on Academic Health Center projects and renovation of existing facilities.

Major capital projects completed during FY 2007

• Jefferson Grid – $3 million project scope included restoration of Corry Boulevard.

• Edwards Renovation - $2 million project included updates to portions of all seven levels of the Edwards One
building to accommodate new tenants that will be displaced during phase 2 of the renovation of Teachers
College/Dyer.

13
UNIVERSITY OF CINCINNATI JUNE 30, 2007

Major capital projects in construction at June 30, 2007 (projects will be completed during FY 2008)

• Medical Sciences Building Rehabilitation Phase I, CARE (Center for Academic Research Excellence)/Crawley
Building, and Eden Quadrangle – $214 million project scope consists of creating a state-of-the-art instructional
and research space for the College of Medicine, as well as open space for the academic medical campus.

• Teachers College/Dyer Hall Rehabilitation Phase 2 – $18 million project includes 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.

• Zimmer Rehabilitation – $3 million construction includes renovation of Zimmer Auditorium and the
corridor/lounge spaces that surround it.

Major capital projects in design (projects have various completion dates)

• Clifton Court Garage – $6 million project will rehabilitate 178,773 square feet of parking area.

• Kettering Preclinical Science Lab Renovation – $3 million project will provide 9,760 square feet of renovated lab
space for environmental research.

• Medical Sciences Building Rehabilitation, Phases 2-5 - $204 million project will continue the major rehabilitation
of the Medical Sciences Building which will extend the use of the facility for another 25 – 30 years.

Debt

Total debt representing bonds, notes and certificates of participation, was increased by $105 million in 2007 as a
result of issuing new debt of $268 million and by decreasing outstanding debt by $163 million. New debt of $268
million was issued to fund various capital projects and to refund $78 million of existing debt. As a result of refunding
the existing debt, the University will realize a net economic gain of $2 million over 18 years. Debt was increased by
$90 million in 2006, due to the issuance of new debt of $165 million and decreasing outstanding debt by $75 million.
That new debt was also used to fund capital projects and to refund $20 million of existing debt. As a result of that
refunding, the University will realize a net economic gain of $.9 million over 14 years.
Subsequent to June 30, 2007, the University has issued $40.5 million in Series 2007E BANS and $32.8 million in
Series 2007F BANS to refinance existing bond anticipation notes (Series 2006D, 2006E and 2007D) and to fund
various capital projects.
Standard & Poor’s (S&P) rated the University’s bonds A+, its certificates of participation A, and its notes SP-1+ in
2006 and 2007. S&P revised the outlook for the University from stable to negative during 2007. Moody’s rated the
University’s bonds A1, its certificates of participation A2, and its notes MIG1 in 2006 and 2007. Moody’s revised the
outlook for the University from stable to negative during 2007. The outlook revisions reflected continuing operating
deficits and declines in unrestricted net assets. Series 2007E and 2007F BANS, issued subsequent to June 30, 2007
to refinance existing bond anticipation notes and to fund various capital projects, were rated SP-1+ and MIG1 by S&P
and Moody’s respectively, and the University’s underlying long-term bond ratings were confirmed.
The University’s repositioning of student activity facilities, expansion of research and educational facilities beyond the
level provided by state capital appropriations, technological upgrades, and restructured parking system all resulted in
a significant amount of new debt. The extensive investment in these facilities was necessary to attract high quality
students, faculty, and research funding in an increasingly competitive environment. With the completion of the Main
Street and Varsity Village projects, the University’s debt financing activity will proceed at a slower pace than in the
last decade, focusing on Academic Health Center projects and renovations of existing facilities.

14
UNIVERSITY OF CINCINNATI JUNE 30, 2007

Net Assets

Net assets represent the residual interest in the University’s assets after liabilities are deducted. The University’s net
assets at June 30 are summarized below (in thousands):

2007 2006 2005

Invested in capital assets, net of related debt $ 478,971 $ 516,992 $ 541,205
Restricted:
Nonexpendable 1,265,492 1,115,611 997,531
Expendable 413,063 398,304 400,182
Unrestricted (186,786) (165,258) (117,747)
Total net assets $1,970,740 $1,865,649 $1,821,171

Capital assets, net of related debt, represent the University’s depreciated buildings, equipment and infrastructure less
the outstanding principal balances of debt attributable to the acquisition, construction and improvement of those
assets. The decreases of $38 million in 2007 and $24 million in 2006, respectively, reflect the University’s continued
development and renewal of its capital assets in accordance with the Master Plan, net of depreciation expense and
long term debt.

Restricted nonexpendable net assets include, as a primary component, the University’s permanently invested
endowment funds. It also includes the University’s equity interest in The Health Alliance of Greater Cincinnati. The
$150 million increase in restricted nonexpendable net assets in 2007 and the $118 million increase in 2006 reflect the
changes in the fair value of investments, net of gifts.

Restricted expendable net assets are subject to externally imposed provisions governing their use. This category of
net assets includes restricted gifts of $291 million in 2007 and $303 million in 2006 that were temporarily invested in
the endowment.

While the deficit position of unrestricted net assets grew by $22 million in 2007, the University’s actions to address
the deficit dramatically slowed the rate of deficit growth from $48 million in 2006. Specific measures implemented in
2007 to address the deficit position include aggressive management of health care costs, increased employee
contribution to health care premiums and co-pays, elimination of salary increases and bonuses for non-represented
employees, heating and cooling temperature adjustments to reduce energy costs, and an early retirement incentive
program for employees in the OPERS retirement system. In addition, the University’s endowment spending policy
distribution was temporarily increased from 5% to 6% for 2007 and 2008. The unrestricted net assets deficit position
will continue to be addressed through budget cuts and multi-year funding using a combination of departmental and
central budget sources to resolve these fund deficits over time. The slowed rate of deficit growth reflects the success
of the structural management changes initiated in 2006, under which the University reorganized around principles of
greater accountability, disciplined financial activities, and integrated budget planning.

15
UNIVERSITY OF CINCINNATI JUNE 30, 2007

STATEMENT OF CASH FLOWS

The Statement of Cash Flows provides additional information about the University’s financial results by reporting the
major sources and uses of cash. A comparative summary of the statement of cash flows for the years ended June 30
follows (in thousands):

2007 2006 2005

Cash received from operations $ 653,241 $ 569,088 $ 549,726

Cash expended for operations 866,848 847,806 785,417

Net cash used in operating activities (213,607) (278,718) (235,691)

Net cash provided by non-capital financing activities 234,969 225,608 231,699
Net cash used for capital and related
financing activities (79,115) (79,431) (181,077)
Net cash used for investing activities 89,113 118,435 179,125

Net increase (decrease) in cash and cash equivalents $ 31,360 $ (14,106) $ (5,944)

The disparity between cash used in operating activities and cash provided by non capital financing activities results
from the required financial reporting classification of state appropriations. Although state appropriations are used
primarily for operating expenses of the University, GASB Statement 35 requires that they be reported as non
operating revenues. Had these resources been reported as operating revenue, the net cash used in operating
activities would have been deficits of $28 million 2007 and $87 million in 2006.

ECONOMIC FACTORS AFFECTING THE FUTURE

Following several years of weakness, the Ohio economy, with its broadly diversified economic base, is now in a
period of modest expansion, with improving reserve levels based on restrained spending and strong revenues. State
support to the University declined for several years, flattened in 2006 and 2005, and increased in 2007. Although the
University is a state-supported institution, such appropriations accounted for only 18% and 19% of the total revenues
of the University in 2007 and 2006, respectively. The depressed level of state support has resulted in an increasing
reliance on tuition and fees as a primary funding source. The state increased appropriations to higher education for
2008, however, it also mandated no tuition increase for in-state undergraduate students. The improving Ohio
economy, combined with a new state administration that took office in 2007 and its welcome attention to higher
education, may provide cautious optimism for increased state support. The state-announced University System of
Ohio will undoubtedly impact higher education and the University of Cincinnati as its specifics are developed.

Considering the increasing reliance on tuition revenue to fund operations, it is of vital importance to the future of the
University to increase the current levels of student enrollment and student retention. Increasing enrollment is a
critical part of an institutional strategic plan titled “UC 21” that lays out ambitious goals and an action plan to define
the role of an urban research university in the new century. The plan defines a set of core values to guide the
institution in its rapid transformation and enable it to compete for students from a diverse cohort of learners, as it
deals with an escalating need to bring intellectual capital to bear on societal issues and to meet the rising call to serve
as the economic engine in a knowledge-based environment. While national demographic trends are generally
favorable for higher education, Ohio faces a predicted decline in high school graduates in the future. The University’s
investment in its Main Street complex, Varsity Village, residential and commercial facilities on the borders of campus
and other quality of life facilities are key to attracting students from outside Ohio’s borders. These facilities and
additional anticipated improvements to the nearby neighborhoods should result in a more enjoyable and more
convenient environment that will supplement the on-campus educational experience and serve as a magnet for
prospective students. The University has supported these efforts through $81 million of loans currently outstanding
from its endowment to neighborhood partnerships. These initiatives have contributed significantly toward the
University’s enrollment growth, which is expected to exceed 36,000 in fall 2007.

16
UNIVERSITY OF CINCINNATI JUNE 30, 2007

The University has long maintained a position of national prominence among leading research institutions. While
research funding has become an increasingly competitive environment, the University maintained a stable research
base. The University’s existing and planned investments in research facilities provide a competitive edge. The
Academic Health Center capital projects will be completed over the next decade and will enable the University to
remain a leader in biotechnology medical research for the region. The focus of the current capital projects is to
upgrade and add research facilities, improve the quality of student life, and upgrade infrastructure and utilities.
These initiatives are in an effort to remain competitive and provide the best possible educational experience for the
students and promote quality of student life. While the University has scaled down or even canceled many of its
planned capital projects, renovating existing facilities to keep them operable is critical. The traditional source of
capital for such projects—the State of Ohio Capital Bill—is declining in both value and absolute level with each new
biennium. This trend must be reversed if the University is to sustain the required academic facilities.

Private gifts will continue to be a critically important financial resource and a significant factor in the growth of both
academic and research activities. The University’s fundraising strategy, as well as economic factors affecting donors’
ability to contribute, will have a significant impact on the ability to tap this important financial resource. In this regard,
fundraising budgets have been increased in order to support an aggressive program that includes a national
fundraising network focused on increasing the level of private gifts to the University. Within the next year, the
University will begin a new all University fundraising campaign.

The University will continue to employ its long-term investment strategy to maximize total return at a reasonable level
of risk. The ability to sustain a level of investment return which is compatible with the endowment spending policy will
be strained given the anticipated performance of national and international financial markets. The temporary
increase in the endowment spending policy for 2007 and 2008 will provide further strain. As a result, such investment
strategies will be continually reviewed in order to insure the most efficient use of these important financial resources.
In this regard, a full-time chief investment officer was recruited during 2006, and the investment committee was
restructured with a volunteer membership consisting of investment industry professionals.

This effort will be extended to all phases of cash management. Therefore, cash collection and investment policies
and procedures will be evaluated and reengineered as necessary. Internal administrative reorganizations have been
implemented to achieve this goal.

A significant component of both graduate and undergraduate enrollment consists of international students.
International visitors also hold numerous teaching and research positions. The ability of these individuals to achieve
or maintain international visitor status in the face of increased scrutiny by the Immigration and Naturalization Service
will be a key factor in maintaining this cross section of the academic community.

The University exists in an increasingly competitive higher education environment. Colleges and universities
throughout the region and across the country are investing heavily in marketing and public relations programs to
establish or maintain favorable reputations and to build enrollment to optimum levels. With these factors in mind, the
University continues to develop strategies that will achieve a reputation commensurate with the University’s
excellence and increase enrollment where appropriate.

Looking forward, the University is well positioned to maintain its financial condition, its high standards of service to
students and its stature in the national research community. In order to enable the University to support this level of
excellence, the University is committed to obtaining new financial resources, to maintaining revenue diversification
and to successfully containing costs.

17
 University of Cincinnati
Statement of Net Assets
As of June 30, 2007 and 2006
(in thousands)

University Related
University Foundation
2007 2006 2007 2006

ASSETS
Current assets:
Cash and cash equivalents $ 90,075 $ 58,715 $ 10,684 $ 10,891
Investments 11,097 10,969
Accounts and pledges receivable, net 47,058 56,907 20,119 25,785
Inventories 1,806 1,481
Deposits with bond trustees 780 10,246
Notes receivable, net 2,869 2,994
Other assets 17,048 13,123 113 136
Total current assets 170,733 154,435 30,916 36,812

Noncurrent assets:
Investments 33,122 19,082
Accounts and pledges receivable, net 23,737 24,720 15,000 14,579
Deposits with bond trustees 7,975 2,583
Endowment investments 1,183,723 1,093,218 19,511 18,125
Notes receivable, net 29,620 30,345
Other long-term investments 380,545 329,760
Capital assets, net 1,470,743 1,420,479 1,220 522
Total noncurrent assets 3,129,465 2,920,187 35,731 33,226
Total assets 3,300,198 3,074,622 66,647 70,038

LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 158,014 148,375 11,017 21,277
Deferred revenue 29,669 23,977
Long-term liabilities - current portion 138,811 116,001
Total current liabilities 326,494 288,353 11,017 21,277

Noncurrent liabilities:
Deposits 10,076 9,187 835 754
Accrued liabilites 31,055 31,980 - 270
Refundable advances for federal loans 26,311 25,987
Long-term liabilities 935,522 853,466
Total noncurrent liabilities 1,002,964 920,620 835 1,024
Total liabilities 1,329,458 1,208,973 11,852 22,301

NET ASSETS
Invested in capital assets, net of related debt 478,971 516,992 1,220 522
Restricted for:
Nonexpendable 1,265,492 1,115,611 29,389 22,801
Expendable 413,063 398,304 19,850 20,663
Unrestricted (186,786) (165,258) 4,336 3,751
Total net assets $ 1,970,740 $ 1,865,649 $ 54,795 $ 47,737

See accompanying notes to financial statements. 18

 University of Cincinnati
Statement of Revenues, Expenses and Changes in Net Assets
For the Years Ended June 30, 2007 and 2006
(in thousands)

University Related
University Foundation
REVENUES 2007 2006 2007 2006
Operating revenues:
Student tuition and fees, net $ 260,605 $ 230,778 $ $
Federal grants and contracts 167,593 166,459
State and local grants and contracts 10,593 10,864
Nongovernmental grants and contracts 14,174 13,343
Sales and services of educational departments 58,645 56,008
Auxiliary enterprises:
Residential life 27,591 25,671
Athletics, net 13,184 11,665
Other Auxiliary enterprises 36,264 36,479
Other operating revenues 5,651 5,865
Total operating revenues 594,300 557,132 - -

EXPENSES
Operating expenses:
Instruction 285,671 281,857
Research 153,247 144,764
Public Service 56,592 55,566
Academic Support 66,306 67,501
Student Services 37,188 38,041
Institutional Support 77,054 75,269 7,804 15,455
Operation Maintenance and Plant 61,499 88,322
Scholarships and Fellowships 24,474 17,892
Auxiliary Expenses 77,509 80,397
Depreciation 87,360 79,096 210 270
Total operating expenses 926,900 928,705 8,014 15,725
Operating loss (332,600) (371,573) (8,014) (15,725)

NONOPERATING REVENUES (EXPENSES)

State appropriations 185,864 179,857
Gifts, including $22,927 in FY07 and $32,306 in FY06
from the University Foundation 46,356 49,151 27,778 15,609
Investment income 60,311 54,443 5,212 4,454
Increase in fair value of investments 166,878 130,169 5,009 2,653
Interest on capital asset-related debt (40,245) (31,005)
Gain (loss) on disposal of assets 1,659 (11,164)
Payments to University of Cincinnati - - (22,927) (32,306)
Other nonoperating revenues (expenses) (11,551) 4,255 1,121
Net nonoperating revenue (expense) 409,272 375,706 15,072 (8,469)
Income (loss) before other revenues,
expenses, gains or losses 76,672 4,133 7,058 (24,194)
Capital appropriations 8,778 19,344
Capital grants and gifts 2,675 7,587
Additions to permanent endowments 16,966 13,414
Increase (decrease) in net assets 105,091 44,478 7,058 (24,194)

NET ASSETS
Net assets - beginning of year 1,865,649 1,821,171 47,737 71,931
Net assets - end of year $ 1,970,740 $ 1,865,649 $ 54,795 $ 47,737

See accompanying notes to financial statements. 19

 University of Cincinnati
Statements of Cash Flows
Years Ended June 30, 2007 and 2006
(in thousands)

2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES
Tuition and fees $ 265,530 $ 235,805
Grants and contracts 190,831 181,664
Sales and services of educational departments and auxiliary enterprises 136,800 131,496
Expenditures and other deductions:
Compensation (562,184) (579,052)
Payments for materials, services and other (267,982) (261,323)
Loans issued (7,924) (7,431)
Loan principal collected 8,773 6,950
Other revenue 12,893 13,173
Cash used for operating activities (223,263) (278,718)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

State appropriations 185,863 179,857
Gifts for other than capital purposes 47,308 45,659
Interest on loans receivable 562 92
Cash from noncapital financing activities 233,733 225,608

CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES

State appropriations 9,791 11,259
Private gifts for capital purposes 3,208 7,965
Grants for capital purposes 2,098 6,499
Other 14,681 2,333
Proceeds from capital debt 267,485 164,845
Purchases of capital assets (156,665) (157,014)
Principal paid on capital debt (162,619) (74,635)
Interest paid on capital debt (46,202) (40,683)
Cash used for capital financing activities (68,223) (79,431)

CASH FLOWS FROM INVESTING ACTIVITIES

Endowment income 54,712 32,024
Income from deposits with trustees 2,914 21,173
Other endowment expenditures (45) (45)
Realized gains on investments 90,886 33,519
Purchase of investments (1,226,157) (742,861)
Sale of investments 1,163,407 771,626
Investment income 3,396 2,999
Cash from investing activities 89,113 118,435

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 31,360 (14,106)

Cash and cash equivalents - beginning of the year 58,715 72,821
Cash and cash equivalents - end of the year $ 90,075 $ 58,715

See accompanying notes to financial statements. 20

 University of Cincinnati
Statements of Cash Flows - continued
Years Ended June 30, 2007 and 2006
(in thousands)

2007 2006
RECONCILIATION OF NET OPERATING LOSS TO
NET CASH USED FOR OPERATING ACTIVITIES:

Operating loss $ (332,600) $ (371,573)

Adjustments to reconcile operating loss to net cash
used for operating activities:
Depreciation expense 87,360 79,096
Gain on disposal of capital assets (1,659) -
Changes in assets and liabilities:
Receivables, net (2,405) (6,381)
Inventories (2,052) 2,813
Other assets 549 (3,167)
Accounts payable and accrued liabilities 26,378 7,960
Deferred revenue 4,395 7,145
Compensated absences (1,913) 963
Deposits (1,316) 4,426
Net cash used for operating activities $ (223,263) $ (278,718)

Non cash transactions:

Capital asset acquired by incurring note payable $ 2,800 $ 3,100
Accrued liabilities for construction in progress 7,996 21,349

See accompanying notes to financial statements. 21

UNIVERSITY OF CINCINNATI JUNE 30, 2007

NOTES TO FINANCIAL STATEMENTS

For the Years Ended June 30, 2007 and 2006

1. Organization and Summary of Significant Accounting Policies

A) Organization

The University of Cincinnati (the University) was founded in 1819 with the first charter granted by the State
of Ohio in 1870. The University, formerly city owned, became a State University on July 1, 1977. As such,
it is a component unit of the State of Ohio. Under provisions of the Internal Revenue Code, Section 115,
and the applicable income tax regulations of the State of Ohio, the University, as a state institution, is
exempt from taxes on income other than unrelated business income. Since the University has no material
net unrelated business income during the year ended June 30, 2007, no provision for income taxes has
been made.

The accompanying financial statements consist of the accounts of the University and the accounts of the
University of Cincinnati Foundation (the Foundation). The Foundation, which is a component unit of the
University in accordance with the provisions of the Governmental Accounting Standards Board (GASB)
Statement 14, The Financial Reporting Entity, is described more fully in Note 16. The Foundation is exempt
from Federal income taxes under the provisions of Internal Revenue Code Section 501(c)(3).

B) Basis of Presentation

The financial statements have been prepared in accordance with accounting principles generally accepted in
the United States of America, as prescribed by the GASB. The University has elected not to apply those
Financial Accounting Standards Board (FASB) pronouncements issued after November 30, 1989.

The University’s financial resources are classified for accounting and reporting purposes into the following
three net asset categories:

Invested in Capital Assets Net of Related Debt—Capital assets, net of accumulated depreciation and
outstanding principal balances of debt attributable to the acquisition, construction or improvement of those
assets.

Restricted—Nonexpendable restricted net assets are subject to externally imposed stipulations that they be
maintained permanently by the University. Such assets include the University’s permanent endowment funds.

Expendable restricted net assets are subject to externally imposed stipulations that can be fulfilled by actions
of the University pursuant to those stipulations or that expire by the passage of time.

Unrestricted—Net assets that are not subject to externally imposed stipulations. Unrestricted net assets may
be designated for specific purposes by action of management or the Board of Trustees or may otherwise be
limited by contractual agreements with outside parties. Substantially all unrestricted net assets are designated
for academic and research programs and initiatives and for capital programs.

C) Summary of Significant Accounting Policies

The accompanying financial statements have been prepared on the accrual basis. The University reports
as a Business Type Activity as defined by GASB Statement No. 35. A Business Type Activity is financed in
whole or in part by fees charged to external parties for goods or services.

Investments in marketable securities (other than the University’s alternative investments) are carried at fair
value as established by the major securities markets (quoted market prices). Investment income is
recorded on the accrual basis. Realized and unrealized gains and losses are reported as nonoperating
revenues (expenses).

22
UNIVERSITY OF CINCINNATI JUNE 30, 2007

The University’s financial statements include alternative investments, such as limited partnerships, that are
not publicly traded. Certain of these alternative investments are carried at estimated fair value provided by
the management of the limited partnerships as of March 31, 2007 and 2006, as adjusted by cash receipts,
cash disbursements and securities distributions through June 30, 2007 and 2006, for an estimated fair
value of $83 million and $78 million respectively. In addition, the University also has alternative
investments in investment funds that are not themselves publicly traded and thus do not have publicly
reported market values, but whose underlying assets consist of publicly traded investments for which fair
values are established by the major securities markets. Such alternative investments are carried at fair
value of $354 million and $247 million at June 30, 2007 and 2006. The University believes that the total
carrying amount of its alternative investments valued at $437 million and $325 million at June 30, 2007 and
2006 is a reasonable estimate of fair value. The University’s outstanding commitment to alternative
investments is $25 million and $31 million as of June 30, 2007 and 2006 respectively.

The University’s investment securities, in general, are exposed to various risks, such as interest rate, credit,
and overall market volatility risks. Due to the level of risk associated with certain investment securities, it is
reasonably possible that changes in the values of investments could occur in the near term and that such
changes could materially affect the investment amounts reported in the accompanying Statement of Net
Assets.

Inventories are held primarily by the central store and are stated at the lower of cost or net realizable
market value. The moving-average basis for all inventories is used to determine inventory cost.

Capital Assets—Land, land improvements, infrastructure, buildings and equipment are recorded at cost at
date of acquisition, or market value at date of donation. The University’s capitalization threshold is $100,000
for major capital projects and $5,000 for all other capitalized items. Interest on related borrowing, net of
interest earnings on invested proceeds, is capitalized during the period of construction. University and
Foundation property and equipment are depreciated using the straight-line method over the estimated
useful lives (from five to fifty years) of the respective assets. When plant assets are sold or disposed of, the
carrying value of such assets and the associated depreciation are removed from the University’s records.

The University does not capitalize works of art or historical treasures that are held for public exhibition,
education or research in furtherance of public service. These collections are neither disposed of for
financial gain nor encumbered in any way. In addition, the University requires the proceeds from the sale of
collection items be used to acquire other collection items. Accordingly, such collections are not recognized
or capitalized for financial statement purposes. All other works of art or historical treasures are capitalized
at historical or fair value at date of donation.

Gift Pledges—The University receives pledges and bequests of financial support from corporations,
foundations and individuals. Revenue is recognized when a pledge representing an unconditional promise
to pay is received and all eligibility requirements, including time requirements, have been met. In the
absence of such promise, revenue is recognized when the gift is received.

Unconditional promises to give that are expected to be collected in future years are recorded at the present
value of the estimated future cash flows. The discounts on these amounts are computed using a discount
rate commensurate with the risks involved. An allowance for uncollectible pledges receivable is provided
based on management’s judgment of potential uncollectible amounts. The determination includes such
factors as prior collection history, type of gift and nature of fundraising.

Deferred Revenue includes amounts received in advance of an event.

Endowment Spending Policy—For donor restricted endowments, the Uniform Management of Institutional
Funds Act permits the University to distribute an amount of realized and unrealized endowment
appreciation as the Board of Trustees determines to be prudent. The University’s policy is to accumulate
the undistributed realized and unrealized appreciation within the endowment, which is discussed in Note 2.

Student Tuition and Residence Fees are presented net of scholarship and fellowship allowances of
$81,510,000 in 2007 and $81,367,000 in 2006 and bad debt provisions of $2,726,000 in 2007 and
$2,955,000 in 2006. Payments made directly to students are presented as scholarship and fellowship
expenses.

Auxiliary Enterprise Revenues primarily represent revenues generated by bookstores, parking, the
conference center, athletics, housing, and dining.

23
UNIVERSITY OF CINCINNATI JUNE 30, 2007

Operating Activities, as reported on the Statement of Revenues, Expenses, and Changes in Net Assets
are those that generally result from exchange transactions such as payments received for providing
services and payments made for services or goods received. Nearly all of the University’s expenses are
from exchange transactions. Certain significant revenue streams relied upon for operations are recorded
as non-operating revenues, as defined by GASB Statement 35, including state appropriations, gifts and
investment income.

Management Estimates—The preparation of financial statements in conformity with accounting principles

generally accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported amounts of revenue and expenditures
during the reporting period. Actual results could differ from those estimates. The use of management’s
estimates relate most significantly to self-insurance reserves.

2. Cash and Investments

Summary—The University maintains centralized management for substantially all of its cash and
investments. With the exception of insurance reserves, charitable remainder trusts, and other trust funds
the terms of which require separate management, the University invests its reserves and relatively short-
duration assets in the Temporary Investment Pool, and invests substantially all of the assets of the
University endowment in the Endowment Investment Pool.

Distributions are made from the University endowment to the University entities that benefit from those
funds. The endowment spending policy provides for an annual distribution of five percent of the twelve-
quarter moving-average market value of endowment units. However, during 2007 and continuing into fiscal
year 2008, a temporary 6% endowment spending policy is in effect.

Authorizations—The Temporary Investment Pool is invested principally in investment-grade money-market

and fixed-income securities. Balances in the Temporary Investment Pool are primarily for operating
expenses or for funding capital projects.

The University investment policies are governed and authorized by University rules. The approved asset
allocation policy for the endowment investments sets a general target of 85 percent equities and 15 percent
fixed-income securities within broader ranges set at the discretion of the Investment Committee.

Diversification is a fundamental risk-management strategy for the endowment portfolio. Accordingly, the
portfolio includes investments in domestic and non-U.S. stocks, bonds and bond-like loans; real estate; and
limited partnerships consisting of venture capital, private equity and real estate.

Off-Balance-Sheet Risk—The University’s investment strategy incorporates certain financial instruments

which involve, to varying degrees, elements of market risk and credit risk in excess of amounts recorded in
the financial statements. Market risk is the potential for changes in the value of financial instruments due to
market changes, including interest and foreign exchange rate movements and fluctuations embodied in
forward, futures, and commodity or security prices. Market risk is directly impacted by the volatility and
liquidity of the markets in which the related underlying assets are traded. Credit risk is the possibility that a
loss may occur due to the failure of a counterparty to perform according to the terms of the contract. The
University’s risk of loss in the event of counterparty default is typically limited to the amounts recognized in
the Statement of Net Assets and is not represented by the contract or notional amounts of the instruments.

Cash and Cash Equivalents—The University considers all highly liquid investments purchased with an
original maturity of three months or less to be cash equivalents. At June 30, 2007, the carrying amount of
the University’s cash and cash equivalents for all funds is $90,075,000 as compared to bank balances of
$104,360,000. The difference between the carrying amount and the bank balances is caused primarily by
deposits in transit and outstanding checks.

Of the University’s bank balances, $454,000 is covered by federal depository insurance; mutual funds hold
cash equivalents of $34,164,000; $69,483,000 is in public funds collateralized pools; and the balance of
$259,000 is uncollateralized. The University does not have a policy for custodial credit risk.

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

Investments — The fair value of University investments at June 30 is (in thousands):

2007 2006
U. S. government securities $ 38,896 $ 45,564
Corporate notes and bonds 41,052 20,071
Corporate stocks 267,934 272,812
Mutual funds 523,885 426,864
Other securities 75,216 109,870
Real estate 12,687 12,749
Total investments 959,670 887,930
Less current investments 11,097 10,969
Non current investments $948,573 $876,961

Alternate Investments (please refer to Note 1-C, Summary of Significant Accounting Policies, regarding
valuation of alternative investments) of $437 million are included within mutual funds and other securities in
the summary schedule of investments above.

At June 30, 2007 and 2006, other securities included $81,045,000 and $104,471,000, net of $14,534,000
and $0 of loan loss reserves, respectively, of loans made to certain nonprofit entities for the purpose of
developing residential and commercial facilities on the borders of the campus. Currently, these loans are
secured primarily by mortgages on parcels of land purchased by these nonprofit entities. Some of these
mortgages are subordinated to external financing arranged by these entities. These loans bear interest at
6%. The University expects repayment once the residential and commercial facilities have streams of rental
income. Loan loss reserves are estimated based on aggregate cash flows projections for the projects and
independent appraisals of the underlying undeveloped real estate. The loan loss reserves are reflected in
non-operating revenues (expenses), as a component of the increase in fair value of investments.

The University has recorded the investments in the table above in the following categories: $44,260,000 of
investments and $915,410,000 of endowment investments. Also, included in endowment investments as
reported on the Statement of Net Assets are $268,272,000 invested predominately in equities held in
donor-stipulated irrevocable trusts.

GASB Statement 40 requires government entities to categorize investments by interest rate risk, credit risk,
and custodial credit risk.

Interest Rate Risk – The University’s investments total $959,670,000. The segmented time distribution
method is used to portray interest rate risk of $246,063,000 of bond and other fixed income investments.
Investments for the years ended June 30, 2007 and 2006 are summarized as follows (in thousands):

Investment Maturities (In Years) 2007

Investment Type Fair Value Less than 1 1-5 6-10 More than 10

US Treasury $ 3,517 - - $ 1,100 $ 2,417

Obligations
US Government 31,170 3,740 12,617 2,750 12,063
Agencies
US Treasury 4,209 828 3,381 - -
STRIPS
US Treasury 42,503 - - 42,503 -
Mutual Fund
Corporate Bonds 41,052 7,495 14,510 5,012 14,035
and Notes
Bond Mutual 53,193 - 17,862 35,331 -
Funds
Local mortgage 66,511 - - - 66,511
secured loans
Other 3,908 367 1,835 551 1,155
Total $246,063 $12,430 $50,205 $87,247 $ 96,181

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

Investment Maturities (In Years) 2006

Investment Type Fair Value Less than 1 1-5 6-10 More than 10

US Treasury $ 15,322 $ 5,054 $ 3,835 $ 2,719 $ 3,714

Obligations
US Government 25,443 5,056 10,205 7 10,175
Agencies
US Treasury 4,799 828 3,506 465 -
STRIPS
Corporate Bonds 20,071 1,216 15,357 3,498 -
and Notes
Bond Mutual 28,592 - 17,833 10,759 -
Funds
Local mortgage 105,011 - 540 - 104,471
secured loans
Other 3,935 367 1,468 1,285 815
Total $203,173 $12,521 $52,744 $18,733 $119,175

The University’s investment policy stipulates that the weighted average maturity of investments in the
Temporary Investment Pool shall be no longer than 5 years. The weighted average of fixed income
maturities in the Endowment portfolio shall not exceed 20 years.

Credit Risk - The Temporary Investment Pool permits investments in securities rated A or higher at the
time of purchase. Securities which are downgraded below an A rating after purchase are permitted to be
retained. Endowment investment-grade bonds are limited to those in the first four grades of any rating
system. Below-investment grade high yield bond investments and certain unrated investments having
strategic value to the University are permitted. In accordance with the University’s investment policy, the
University’s $246,063,000 bond and other fixed income investments are rated by nationally recognized
rating organizations as follows as of June 30 (in thousands):

Rating 2007 2006

US Treasury Obligations – equivalent of AAA $ 46,019 $ 15,322
AAA 35,379 48,075
AA 55,693 2,469
A 27,500 14,566
BBB 11,053 13,794
BB - -
Not Rated 70,419 108,947
Total $246,063 $203,173

Custodial Credit Risk – Of the University’s $959,670,000 total investments, $918,292,000 are uninsured,
not registered in the name of the University, and are held by trust departments or agents in the University’s
name, and thus are exposed to custodial credit risk. The University does not have a policy for custodial
credit risk.

University Investment Pools—Of the University investments, approximately $50,055,000 are separately
invested by donor stipulation. The remaining funds are invested in one of three pools. The Temporary
Investment Pool represents the investment of substantially all University cash not otherwise invested in the
endowment.

The Endowment Investment Pool A is the principal investment pool for the University endowments that may be
pooled legally or by donor concurrence. The University employs the share method of accounting for the
Endowment Investment Pool A investments and for proportionate distribution of income to each fund that
participates in the pool. At June 30, 2007, the Endowment Investment Pool A consisted of 7,388,000 shares.
Effective July 1, 2002, substantially all endowments held in trust, by donor stipulation, by the University of
Cincinnati Foundation were invested in the University's Endowment Investment Pool A. At June 30, 2007,
such endowments own 1,695,000 pool shares with a market value of $203,105,000, equating to approximately

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

23% of the Endowment Investment Pool A. The Endowment Investment Pool B comprises real estate holdings
received by bequest.

The following tabulation summarizes the changes in relationships between cost and fair values of the
Endowment Investment Pool A assets for the year (in thousands):

Net Fair Value

Gains/ Gain/(Loss)
Net Cost Fair Value (Losses) Per Share

End of year $755,216 $866,935 $111,719 $117.34

Beginning of year 717,968 818,001 100,033 108.28

Unrealized net gain/(loss) for year 11,686

Realized net gain/(loss) for year 43,510

Total net gain/(loss) for year $ 55,196 $ 9.06

The University has adopted a spending rate policy which limits the distribution of endowment income earned in
the investment pool to five percent of the moving-average market value for the twelve-quarter period ending
each December. For FY07 and 08, the spending policy has temporarily been increased to 6%. During 2007,
income earned was approximately $20,856,000 less than the amount allocated for spending. In accordance
with the Ohio Uniform Management of Institutional Funds Act, the cumulative shortfall of $149,921,000 as of
June 30, 2007, is funded by capital appreciation of the investment pool.

Income allocated for spending during 2007 amounted to $5.88 per share of the Endowment Investment Pool A.
The average annual earnings per share, exclusive of capital appreciation, amounted to $1.28.

3. Accounts, Pledges and Notes Receivable

Accounts, pledges and notes receivable as of June 30, are as follows (in thousands):

2007 2006
Accounts receivable $ 51,971 $50,247
Pledges receivable 12,388 18,023
Notes receivable 32,489 33,339
Accrued interest receivable 6,436 13,357
Total 103,284 114,966
Less current receivables 49,927 59,901
Noncurrent receivables $ 53,357 $55,065

Allowances for uncollectible receivables have been provided in the amount of approximately $6,926,000
and $7,105,000 for accounts receivable, $827,000 and $1,169,000 for pledges receivable, $4,903,000 and
$4,749,000 for notes receivable as of June 30, 2007 and 2006, respectively.

An allowance for uncollectible accrued interest receivable has been provided in the amount of
approximately $10,439,000 and $0 related to loans made to certain nonprofit entities as of June 30, 2007
and 2006 respectively (see note #2).

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

Pledges have been discounted at a rate of four percent to net present value, which approximates the fair
value of the receivables as follows (in thousands):

2007 2006
Less than one year $ 2,712 $ 3,589
One to five years 5,899 9,061
More than five years 4,604 6,542
Subtotal 13,215 19,192
Less allowance for uncollectible pledges 827 1,169
Total $12,388 $18,023

Pledges receivable due from one donor approximated 45% and 38% of total pledges receivable, as of June
30, 2007 and 2006, respectively.

4. Capital Assets
Capital assets activity for the years ended June 30, 2007 and 2006 is summarized as follows (in
thousands):

Balance Retirements/ Balance

July 1, 2006 Additions Transfers June 30, 2007
Land $ 21,923 $ - $ - $ 21,923
Land improvement 78,014 - 3,615 81,629
Buildings 1,531,770 - 64,852 1,596,622
Construction in progress 141,295 131,735 (96,365) 176,665
Infrastructure 89,668 - 6,685 96,353
Building equipment 15,193 - - 15,193
Moveable equipment 145,846 9,895 (2,742) 152,999
Computer Software 28,747 200 5,993 34,940
Books 131,684 8,671 386 140,741
Art objects 4,356 18 (10) 4,364
Total Assets 2,188,496 150,519 (17,586) 2,321,429
Less accumulated depreciation 768,017 87,360 (4,691) 850,686
Net Assets $1,420,479 $ 63,159 $ (12,895) $1,470,743

Balance Retirements/ Balance

July 1, 2005 Additions Transfers June 30, 2006
Land $ 21,305 $ 618 $ - $ 21,923
Land improvement 34,752 - 43,262 78,014
Buildings 1,313,888 19 217,863 1,531,770
Construction in progress 295,625 158,037 (312,367) 141,295
Infrastructure 78,399 - 11,269 89,668
Building equipment 15,167 - 26 15,193
Moveable equipment 136,867 12,775 (3,796) 145,846
Computer Software 162 - 28,585 28,747
Books 133,718 9,087 (11,121) 131,684
Art objects 4,469 30 (143) 4,356
Total Assets 2,034,352 180,566 (26,422) 2,188,496
Less accumulated depreciation 704,180 79,096 (15,259) 768,017
Net Assets $1,330,172 $101,470 $ (11,163) $1,420,479

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

5. Accounts Payable and Accrued Liabilities

Accounts payable and the current portion of accrued liabilities as of June 30, 2007 and 2006 are as follows
(in thousands):

2007 2006
Compensated absences (Current portion) $ 33,941 $ 35,428
Compensation 32,237 40,177
Accrued liabilities 59,018 30,022
Vendors payable 32,818 42,748

Total $158,014 $148,375

6. Compensated Absences

University employees earn vacation and sick leave on a monthly basis. Vacation benefits may be accrued
up to a maximum of three years’ credit, and earned but unused days are payable upon termination. Sick
leave may be accrued without limit; however, earned but unused days are payable only upon retirement
from the University, subject to 30- or 60-day limits depending upon the date of hire. The liability for the
costs of such benefits approximated $64,108,000 and $66,021,000 as of June 30, 2007 and 2006,
respectively.

7. Bonds and Notes Payable

Bonds and notes payable at June 30, comprise the following (in thousands):

Maturity
Issue Dates Interest Outstanding Debt
Bond Series – Fixed Rate Debt Date Through Rate 2007 2006
R-11, T, X, Y, AA, AG, AH, AI 1998 2018 3.70-5.50% $ 15,855 $ 21,125
Z, AC 1997 2012 4.15-5.15% 2,705 3,435
AB 1997 2007 4.40-5.10% - 170
AD 1997 2010 4.65-5.05% 1,820 2,665
AL, AM, AN 1998 2018 3.45-4.75% 4,555 4,910
AL-1, AO 1999 2013 4.20-5.50% 4,670 5,320
AQ, AT, AU, AV, AZ 2000 2020 4.60-5.50% 3,145 5,150
2001A 2001 2031 3.60-5.50% 112,775 144,275
2002A 2002 2022 2.25-4.875% 4,710 4,935
2002D 2002 2022 2.40-5.00% 3,665 3,975
2002F 2003 2024 2.50-5.375% 28,370 42,995
2002G 2003 2031 1.80-5.00% 12,250 13,415
2003C 2003 2026 3.00-5.00% 73,940 78,540
2004A 2004 2031 2.00-5.00% 63,405 64,435
2004D 2004 2026 2.00-5.00% 50,050 50,985
2004E 2005 2021 2.25-5.00% 22,505 23,740
2005A 2005 2020 3.10-5.00% 69,410 69,410
2005D 2006 2019 4.00-5.00% 20,410 20,410
2006A 2006 2031 3.50-5.00% 54,075 54,870
2007A 2007 2031 3.55-5.00% 78,445 -

Total bonds payable – fixed rate debt $626,760 $614,760

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

Weighted
Average
Bond Series – Variable Rate Debt Interest Rate
2004B – Auction Mode 2004 2031 2.60% $ 40,000 $ 40,000

2004B – Weekly Mode 2004 2031 2.63% 101,295 103,755

2004B – Weekly Mode 2007 2020 3.72% 39,955 -

Total bonds payable – variable rate

debt 181,250 143,755

Total bonds payable $808,010 $758,515

Maturity
Notes Payable and Issue Dates Interest Outstanding Debt
Other Debt ___ Date Through Rate 2007 2006
General Receipts Bond
Anticipation Notes:
2006B January 2006 January 2007 4.50% $ - $ 40,000
2006C March 2006 March 2007 4.50% - 41,065
2006D July 2006 July 2007 4.75% 20,025 -
2006E August 2006 July 2007 4.75% 15,000 -
2007C January 2007 January 2008 4.50% 28,000 -
2007D March 2007 October 2007 3.73% 32,810 -
Certificates of Participation—Center
For Information Technology 1993 2008 2.40-5.50% 90 180
Capital Lease Obligations
University Center 1996 2011 4.125-5.10% 14,055 16,570
Edwards Center 1998 2011 4.00-5.75% 10,445 12,215
Residence Halls 2000 2028 4.40-5.50% 39,500 40,540
University Center Refunding 2005 2024 3.50-5.00% 52,815 52,815
Capital lease-Stetson July 2006 June 2033 4.25-5.97% 32,745 -
Capital lease-Turner July 2006 June 2033 4.00-5.25% 9,955 -
Loans payable-equipment 2003 2014 3.58-4.69% 6,439 4,616
Total notes payable and other debt 261,879 208,001
Total bonds and notes payable and other debt 1,069,889 966,516
Plus discounts/premiums/loss on refunding 4,444 2,951
Total bonds and notes payable and other debt, net $1,074,333 $969,467

A) Debt Issuances and Permanent Fundings

General Receipt Bonds-Fixed Rate Debt – During the year ended June 30, 2007, the University issued
one general receipt fixed rate bond series totaling $78,445,000 that bears interest at rates ranging from
3.55% to 5.00% and matures in 2031. The proceeds were used to refund portions of Series X, Y, AT, AV,
AZ, 2001A and 2002F bonds; refund a portion of Series 2006B BANS; to pay associated bond issue costs
and to finance all or a portion of the costs of the following projects: MSB Rehabilitation/CARE/Eden Quad,
Varsity Village, Jefferson Grid, and two suspended projects, along with the associated bond issue costs and
capitalized interest.

The refunded Series X bonds had been issued to finance a portion of the Sigma Sigma Commons project
and will be called June 2008; the refunded Series Y bonds had been issued to finance a portion of the
Vontz Center for Molecular Studies Plaza and will be called June 2008; the refunded Series AT bonds had

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

been issued to fund a portion of a laboratory for use by the Foundation of the Research Laboratory of the
Tanner’s Council and will be called June 2010; the refunded Series AV bonds had been issued to fund a
portion of the construction of a new facility at the University’s Center Hill site and will be called June 2010;
the refunded Series AZ bonds had been issued to ultimately finance a portion of the University Pavilion and
will be called June 2010; the refunded Series 2001A bonds had been issued to finance a portion of the
MainStreet project and several large utility projects and will be called June 2011; and the refunded Series
2002F bonds had been issued to finance the rehabilitation of the Genome Research Center and the
construction of a powerhouse at Genome and will be called June 2012.

General Receipt Bonds-Variable Rate Debt – During the year ended June 30, 2007, the University issued
an additional general receipt variable rate bond series, totaling $39,955,000. Series 2007B was issued
January 24, 2007, in a weekly reset mode and matures in 2020. The proceeds were used to current refund
a portion of Series 2006B BANS for Varsity Village Gift Bridging, to current refund a portion of Series 2006C
BANS for CCM and Gettler Stadium Gift Bridging and to fund a portion of the MSB
Rehabilitation/CARE/Eden Quad project in advance of biennium 2011/2012 state funding.

The initial interest rate for the Series 2007B – weekly reset mode bonds was 3.60%. The interest rate for
the weekly mode bonds resets every week, with interest due the first business day of each calendar month.
Interest paid to date has been based on weekly rates that have fluctuated from a low of 3.54% to a high of
3.96%. The maximum interest rate on the weekly reset mode bonds is 12%. The University has entered
into a standby bond purchase agreement with a liquidity provider for Series 2007B weekly reset mode
bonds. Series 2007B weekly rate bondholders may tender any of these bonds for repurchase every seven
days. Any bonds so tendered will be purchased either by the proceeds of the remarketing of such bonds
or, if not successfully remarketed, by the liquidity provider. Accordingly, the University has classified the
outstanding principal balance on its weekly reset mode bonds that matures after June 30, 2008 as a long-
term liability. As of June 30, 2007, there has not been a failed remarketing for the weekly reset mode
variable rate bonds.

The University issued general receipt variable rate bonds, Series 2004B in 2004. The initial interest rate for
the Series 2004B – auction rate reset mode was .85%. Auction rate bonds call for the interest rate to be
reset and paid every 35 days. Interest paid to date has been based on rates that have fluctuated from a low
of .85% to a high of 3.90%. The maximum interest rate on the auction rate bonds is 12%. Series 2004B
auction rate bonds do not have a permanent put feature. The University does not have an obligation to
purchase any Series 2004B auction rate bonds that a holder wishes to sell on an auction date, or to
purchase any Series 2004B auction rate bonds that a holder has tendered for purchase on a mandatory
tender date in connection with a change in mode. Accordingly, the University has classified the outstanding
principal balance on its auction rate bonds that matures after June 30, 2008 as long-term liability.

The initial interest rate for the Series 2004B – weekly reset mode bonds was .92%. The interest rate for the
weekly mode bonds resets every week, with interest due the first business day of each calendar month.
Interest paid to date has been based on weekly rates that have fluctuated from a low of .87% to a high of
3.9%. The maximum interest rate on the weekly reset mode bonds is 12%. The University has entered into
a standby bond purchase agreement with a liquidity provider for Series 2004B weekly reset mode bonds.
Series 2004B weekly rate bondholders may tender any of these bonds for repurchase every seven days.
Any bonds so tendered will be purchased either by the proceeds of the remarketing of such bonds or, if not
successfully remarketed, by the liquidity provider. Accordingly, the University has classified the outstanding
principal balance on its weekly reset mode bonds that matures after June 30, 2008 as a long-term liability.
As of June 30, 2007, there has not been a failed remarketing for the weekly reset mode variable rate bonds.

The University has the option to convert the variable rate bonds from one rate mode to another, as well as
the option to redeem these bonds in whole or in part. The University’s variable rate bonds mature at
various dates, beginning in fiscal year 2007 through 2031. It is the University’s intent to repay its variable
rate bonds in accordance with the maturities set forth in the bond offering circulars.

Bond Anticipation Notes – During the year ended June 30, 2007, the University issued the following Bond
Anticipation Notes: Series 2006D for $20,025,000, issued in advance of biennium 2009/2010 state funding
to fund a portion of the MSB Rehabilitation/CARE/Eden Quad project and various construction and
renovation projects; Series 2006E for $15,000,000, issued to fund Early Project Expenditures for various
construction and renovation projects; Series 2007C for $28,000,000, issued to refinance existing bond
anticipation notes (a portion of Series 2006B and Series 2006C) as well as fund a portion of the Teacher’s
College/Dyer Hall Rehabilitation Phase II project in advance of biennium 2009/2010 state funding, and to
fund additional Early Project Expenditures for various construction and renovation projects; and Series
2007D for $32,810,000 issued to refinance existing bond anticipation notes (a portion of Series 2006C).

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

Series 2006B bond anticipation notes were retired on January 25, 2007 and Series 2006C bond anticipation
notes were retired on March 28, 2007. Series 2006D, 2006E, 2007C and 2007D notes are currently
outstanding; Series 2006D and 2006E each bear interest at a rate of 4.75%; Series 2007C bears interest at
a rate of 4.50% and Series 2007D bears interest at a rate of 3.73%.

Loans Payable for Equipment – During the year ended June 30, 2007, the University borrowed
$2,800,000, at an interest rate of 4.69%, for the purchase of university-wide data network equipment. All of
the outstanding loans for equipment bear interest rates between 3.58% and 4.69%.

Capital Leases for Stetson and Turner – During the year ended June 30, 2007, the University entered
into two capital lease agreements in connection with the financing of two buildings (One Stetson Square
and the Turner Center) which are owned by King Highland Community Urban Redevelopment Corporation
and will be occupied, all or in part, by the University. The One Stetson Square lease totaling $32,745,000
bears interest at rates ranging from 4.25% to 5.9% and matures in 2033. The Turner Center lease totaling
$9,955,000 bears interest at rates ranging from 4.00% to 5.25% and matures in 2033.

B) Defeasance

General Receipts Bonds—Series 2007A general receipt bonds were issued January 23, 2007 in the
amount of $78,445,000. A portion of the Series 2007A bonds, $985,000, was issued for the purpose of
advance refunding $1,000,000 of the outstanding Series X general receipts bonds, stated to mature on
June 1, 2013 through June 1, 2018. Another portion of the Series 2007A bonds, $1,620,000, was issued
for the purpose of advance refunding $1,645,000 of the outstanding Series Y general receipts bonds, stated
to mature on June 1, 2013 through June 1, 2018. Further, $330,000 of the Series 2007A bonds was issued
for the purpose of advance refunding $325,000 of the outstanding Series AT general receipts bonds, stated
to mature on June 1, 2014 through June 1, 2020. Another, $370,000 of the Series 2007A bonds was
issued for the purpose of advance refunding $365,000 of the outstanding Series AV general receipts bonds,
stated to mature on June 1, 2014 through June 1, 2020. In addition, $855,000 of the Series 2007A bonds
was issued for the purpose of advance refunding $850,000 of the outstanding Series AZ general receipts
bonds, stated to mature on June 1, 2014 through June 1, 2020. Another, $23,905,000 of the Series 2007A
bonds was issued for the purpose of advance refunding $24,030,000 of the outstanding Series 2001A
general receipts bonds, stated to mature on June 1, 2022 through June 1, 2024. Finally, $12,935,000 of
the Series 2007A bonds was issued for the purpose of advance refunding $13,010,000 of the outstanding
Series 2002F general receipts bonds, stated to mature on June 1, 2016 through June 1, 2020. The
purpose of the refunding was to reduce future debt service payments. Net proceeds of $43,886,000 were
used to purchase United States government securities that were placed in irrevocable trust with an escrow
agent to provide for all future debt service payments on the advance refunded Series X, Y, AT, AV, AZ,
2001A and 2002F general receipts bonds. The economic gain (difference between the present value of the
old and new debt service payments) to the University will be $1,966,000. As a result of the refunding,
$2,755,000 has been recorded as Deferred Loss on Refunding and will be amortized from 2007 through
2024. The deferred loss on refunding reflects the difference between the refunding reacquisition price for
the respective portion of Series 2007A and the net carrying amount of the outstanding principal balances of
the refunded debt issues.

C) Collateralization and Debt Reserves

The general receipts bonds and general receipts bond anticipation notes are collateralized by a pledge of
general receipts of the University. The certificates of participation are collateralized by the capital assets
purchased under the respective financing agreements and by certain insurance covering repayment of the
proceeds. Loans Payable – Equipment is collateralized by specified equipment. Loans Payable - Office and
Classroom Capital Leases are not collateralized. At June 30, 2007, the required debt service reserve
amounted to $8,679,000. As provided for in the Amended and Restated Trust Agreement, this reserve is
solely for the payment of debt service charges on the pre-amended bonds, with the exception that excess
amounts may be transferred pursuant to Section 4.03 of the Amended and Restated Trust Agreement.

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

D) Debt Service Commitments

For bonds and notes payable at June 30, 2007, scheduled annual debt service payments subsequent to
June 30, 2007 are as follows (in thousands):

Fiscal
Year Principal Interest Total
2008 $130,815 $ 39,868 $ 170,683
2009 30,170 35,016 65,186
2010 30,920 33,768 64,688
2011 34,660 32,414 67,074
2012 36,495 30,951 67,446
2013-2017 201,975 129,601 331,576
2018-2022 199,370 81,045 280,415
2023-2027 150,395 39,715 190,110
2028-2031 89,135 9,477 98,612

Total $903,935 $431,855 $1,335,790

The University has $181.3 million of variable rate bonds. $141.3 million of this variable rate debt bears interest that
is reset weekly based on the market with a maximum rate of 12% per year. $40 million of the variable rate debt
bears interest that is reset every 35 days based on an auction rate, subject to a maximum of 12% per year. The
interest rate used to determine future interest payments in the debt service repayment table above is the rate in
effect at July 1, 2007 as follows: 3.74% for the 2004B variable weekly rate, 3.75% for the 2007B variable weekly
rate and 3.75% for the variable 35-day rate. Series 2004B variable rate bonds were issued in February 2004 and
since the date of issuance, the variable weekly rate has ranged from .87% to 3.97% and the variable 35-day rate has
ranged from .85% to 3.90%. Series 2007B variable rate bonds were issued in January 2007 and since the date of
issuance, the variable weekly rate has ranged from 3.54% to 3.96%.

Scheduled principal and interest payments on capital lease obligations and loans payable subsequent to June 30,
2007 are (in thousands):

Fiscal
Year Principal Interest Total
2008 $ 7,161 $ 8,118 $ 15,279
2009 8,795 8,005 16,800
2010 8,825 7,562 16,387
2011 8,199 7,111 15,310
2012 7,701 6,674 14,375
2013-2017 36,148 27,970 64,118
2018-2022 35,895 19,131 55,026
2023-2027 32,600 9,683 42,283
2028-2032 17,315 3,209 20,524
2033 3,315 166 3,481

Total $165,954 $97,629 $263,583

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

E) Defeased Debt

Debt defeased by the University for which amounts remain outstanding at June 30, 2007, is (in thousands):

Maturity Interest Amount

Bond Series Dates Rate(s) Outstanding

Residence Hall and Dining

Facility Bonds:
Series F 1972-2009 5.00-6.00% 1,270
General Receipts Bonds:
Series T 2014-2018 5.00% 9,460
Series X 2013-2018 4.85-5.00% 1,000
Series Y 2013-2018 4.85-5.00% 1,645
Series AA 2014-2018 5.00% 3,610
Series AL-1 2014-2019 5.60-5.75% 2,140
Series AO 2014-2019 5.60-5.75% 4,285
Series AT 2014-2020 5.50-5.75% 325
Series AV 2014-2020 5.50-5.75% 365
Series AZ 2014-2020 5.50-5.75% 850
Series 2001A 2015-2019 5.75% 29,245
Series 2001A 2022-2024 5.25% 24,030
Series 2002F 2016-2020 5.375% 13,010

Total $91,235

Neither the outstanding indebtedness nor the related trust accounts are reflected in the accompanying
financial statements for the fully defeased bonds listed above. United States Treasury obligations in an
amount sufficient to pay principal and interest on the defeased obligations, when due, have been deposited
with a trustee in accordance with the defeasance of the debt.

F) Other

Subsequent to June 30, 2007, the University has issued $40.5 million in Series 2007E BANS to refinance
existing bond anticipation notes (Series 2006D and 2006E) as well as to fund all or a portion of the costs of
the following projects that were initially funded with Early Project Expenditure proceeds: Zimmer
Auditorium, Jefferson Quad and the remaining five suspended projects. In addition, the University has
issued $32.8 million in Series 2007F BANS to refinance existing bond anticipation notes (Series 2007D)
that mature October 1, 2007.

Interest expense incurred on indebtedness for the years ended June 30, 2007 and 2006, is $40,245,000
and $31,005,000 respectively. In 2007, interest expense on construction-related debt of $5,727,000, net of
$2,125,000 interest earned on invested funds, was capitalized. In 2006, interest expense on construction-
related debt of $9,615,000, net of $2,204,000 interest earned on invested funds, was capitalized.

34
UNIVERSITY OF CINCINNATI JUNE 30, 2007

G) Long-Term Liability

Long-term liabilities as of June 30, 2007 and 2006 are as follows (in thousands):

Year Ended June 30, 2007

Balance Balance Current Noncurrent
July 1, 2006 Additions Reductions June 30,2007 Portion Portion

Bonds, notes and capital leases:

Bonds and notes payable $ 839,580 $214,235 $149,970 $903,845 $130,725 $773,120
Certificates of participation 180 - 90 90 90 -
Loans payable-equipment 4,616 2,800 977 6,439 1,371 5,068
Capital lease obligations 122,140 - 5,325 116,815 5,790 111,025
Capital Leases - 42,700 - 42,700 - 42,700
Issue costs, premiums
and discounts 2,951 7,750 6,257 4,444 ___835 3,609
Total bonds, notes and
capital leases 969,467 267,485 162,619 1,074,333 138,811 935,522
Other long-term liabilities:
Compensated absences 66,021 1,181 3,094 64,108 33,941 30,167
Refundable advances,
federal loans 25,987 324 - 26,311 - 26,311
Other Liability 1,814 - 427 1,387 500 887
Deposits held in trust for others 9,187 80,176 79,286 10,077 - 10,077
Total other long-term liabilities 103,009 81,681 82,807 101,883 34,441 67,442
Total $1,072,476 $349,166 $245,426 $1,176,216 $173,252 $1,002,964

Year Ended June 30, 2006

Balance Balance Current Noncurrent
July 1, 2005 Additions Reductions June 30,2006 Portion Portion

Bonds, notes and capital leases:

Bonds and notes payable $748,201 $156,345 $ 64,966 $839,580 $108,745 $730,835
Certificates of participation 270 - 90 180 90 90
Loans payable-equipment 2,182 3,100 666 4,616 978 3,638
Capital lease obligations 126,800 - 4,660 122,140 5,325 116,815
Issue costs, premiums
and discounts 1,804 5,400 4,253 2,951 ___863 2,088
Total bonds, notes and
capital leases 879,257 164,845 74,635 969,467 116,001 853,466
Other long-term liabilities:
Compensated absences 65,057 1,657 693 66,021 35,428 30,593
Refundable advances,
federal loans 25,895 167 75 25,987 - 25,987
Other Liability 2,226 - 412 1,814 427 1,387
Deposits held in trust for others 4,768 88,938 84,519 9,187 - 9,187
Total other long-term liabilities 97,946 90,762 85,699 103,009 35,855 67,154

Total $977,203 $255,607 $160,334 $1,072,476 $ 151,856 $920,620

8. State Support
The University is a state-assisted institution of higher education and receives from the State of Ohio a state
share of instruction that is student-enrollment based. This subsidy is determined annually by the Ohio
Board of Regents. The State also provides line-item appropriations that support, in part, the current
operations of various activities including clinical teaching expenditures.

In addition to the operating subsidies, the State of Ohio provides funding for and constructs major plant
facilities on the University’s campuses. The state passes a capital-appropriations bill biannually for both
major capital projects and basic renovation projects of which the University receives a share. Such facilities
are reported as capital assets on the Statement of Net Assets.

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

9. Retirement Plans and Other Post Employment Benefits

A) Public Employee Retirement Plans

Retirement benefits are available for substantially all employees under one of several contributory
retirement plans. Prior to July 1, 1977, when the University became a state institution, employees were
covered by either the City of Cincinnati Retirement System (CRS) or the Teachers’ Insurance and Annuity
Association - College Retirement Equities Fund (TIAA-CREF). Certified teachers appointed on or after
July 1, 1977, are covered by the State Teachers’ Retirement System (STRS). Non-certified employees
appointed on or after that date are covered by the Public Employees Retirement System (PERS). Both
STRS and PERS are statewide systems.

The PERS, STRS and CRS plans are cost-sharing, multiple-employer, defined-benefit, public-employee
retirement systems. Each provides retirement, disability and death benefits to plan members and
beneficiaries. These plans also provide health-care benefits to vested retirees. Benefits provided under the
plans are established by State statute or the Cincinnati Municipal Code.

All three plans issue separate, publicly available financial reports that include financial statements and
required supplementary information. These reports may be obtained by contacting each system as follows:
Public Employee Retirement System of Ohio, 277 East Town Street, Columbus, Ohio 43215, Telephone
(614) 466-2085; State Teachers Retirement System of Ohio, 275 East Broad Street, Columbus, Ohio
43215, Telephone (614) 227-4090; and City of Cincinnati Retirement System, 801 Plum Street, Cincinnati,
Ohio 45202, Telephone (513) 352-3227.

The Ohio Revised Code and the Cincinnati Municipal Code provide PERS, STRS and CRS statutory
authority, respectively, over employer and employee contributions. The required, actuarially determined
contribution rates for the University and for employees are 13.77% (5.00% relating to health-care benefits)
and 9.5% of covered payroll, respectively, for PERS; 14% (1% relating to health-care benefits) and 10%,
respectively, for STRS; and 17% and 7%, respectively, for CRS for the year ended June 30, 2007. The
University’s contributions, representing 100% of employer contributions for the year ended June 30, 2007,
and for each of the two preceding years are as follows (in thousands):

Fiscal Year PERS $ STRS $ CRS $

2005 18,217 15,404 417
2006 19,811 16,417 361
2007 20,318 17,618 506

PERS and STRS provide postretirement and postemployment health-care benefits in addition to the
retirement benefits described above. PERS Other Post Employment Benefits (OPEB) is advance funded
on an actuarially determined basis. The assumptions and calculation below were based on the system’s
latest actuarial review performed as of December 31, 2005. An entry-age normal actuarial-cost method of
valuation is used in determining the present value. The difference between assumed and actual experience
(actuarial gains and losses) becomes part of unfunded actuarial accrued liability. All investments are
carried at market value. For valuation purposes, a smoothed market approach is used. Under this
approach assets are adjusted annually to reflect 25% of unrealized market appreciation or depreciation on
investment assets not to exceed a 12% corridor. The actuaries’ assumptions were as follows: investment
return, 6.5%; annual wage increase (compounded annually), 4%; and health care costs, 4%. At December
31, 2005, the actuarial value of the Retirement System’s net assets available for OPEB was $11.1 billion.
The actuarially accrued liability and the unfunded actuarial accrued liability, based on the actuarial cost
method used, were $31.3 billion and $20.2 billion, respectively. There are 369,214 active contributing
participants. Of the $20,318,000 University employer contributions to PERS for 2007, $7,378,000 was to
fund OPEB.

STRS has discretionary authority, pursuant to the Ohio Revised Code, over how much, if any, of the health-
care costs will be absorbed by STRS. All benefit recipients are required to pay a portion of the health-care
cost in the form of a monthly premium. The balance in the Health Care Reserve Fund was $3.5 billion at
June 30, 2006 (the latest information available). For the year ended June 30, 2006, the net health-care
costs paid by STRS were $282,743,000. There were 119,184 eligible benefit recipients.
In addition to the pension benefits described above, the University provides postretirement health-care and
dental benefits (under its labor agreement with the American Association of University Professors) to all

36
UNIVERSITY OF CINCINNATI JUNE 30, 2007

who are participants of TIAA-CREF when they retire. During 2007, 2006, and 2005 the net cost of these
benefits recorded on a pay-as-you-go basis totaled approximately $2,961,000, $2,945,000, and $2,972,000
respectively.

B) Ohio Alternative Retirement Plan

On June 23, 1998, pursuant to Ohio House Bill 586, the University created an Ohio Alternative Retirement
Plan (ARP), which is designed to aid the University in recruiting and retaining employees by offering a
portable retirement option. The ARP is a defined-contribution plan that provides full and immediate vesting
of all contributions made on behalf of the participant. Contributions are directed to one of eight investment
management companies, which allows the participant to manage the investment of all retirement funds.
New employees who qualify for the ARP have 90 days from the date of hire to elect the ARP option. Once
this window has passed, the employee will not have the option to elect into the ARP.

At June 30, 2007, there were 1,901 members of the plan. During 2007, 2006, and 2005 the employer
contributions were $13,418,000, $11,310,000, and $10,349,000 respectively. The employer contribution
rate was 12% for participants electing out of PERS during fiscal year 2006. Effective January 1, 2007 the
employer contribution rate increased to 13.77%. The employer contribution rate for participants electing out
of STRS was 14.00% for 2007 and 12% for 2006.

10. 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):

2007 2006
Restricted nonexpendable:
Instruction $ 159,293 $ 145,004
Research 90,712 80,398
Academic support 53,466 48,945
College/programs 344,902 312,011
Scholarships 142,977 129,004
Equity interest in Alliance 375,297 324,639
Other 98,845 75,610

Total $1,265,492 $1,115,611

Restricted expendable:
Instruction $ 35,226 $ 31,621
Research 120,486 111,013
Academic support 32,926 30,234
College/programs 149,385 135,172
Scholarships 40,038 35,546
Student loans 9,110 9,021
Grants and contracts 3,777 6,327
Capital projects 20,553 31,160
Other 1,562 8,210

Total $ 413,063 $ 398,304

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

11. 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.

12. 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 (collectively referred to as the Participating Entities) are managed by
Alliance management, and their operating results are combined and allocated to the Participating Entities
based on their calculated equity interests in the Alliance. The University's equity interest in the Alliance of
29.09% is based on the Hospital’s pro rata portion of the Participating Entities' net assets. The University
has recognized its equity interest in the Alliance of $375,297,000 and $324,639,000 for the years ended
June 30, 2007 and 2006, respectively, in Other Long-term Investments and Restricted Nonexpendable Net
Assets. Separate financial information regarding the Alliance may be obtained by contacting the Alliance at
the Health Alliance of Greater Cincinnati, 3200 Burnet Avenue, Cincinnati, Ohio 45229.

Hospital revenues and expenditures are recorded by the Alliance. The University has reported its pro rata
share ($50,658,000 and $67,589,000 for the years ended June 30, 2007 and 2006, respectively) of the
Alliance’s net gain as part of the change in the fair value of investments.

The University provides various shared services, consisting mainly of security and various administrative
services, to the Health Alliance for which the University is reimbursed on a cost basis. The total cost of these
services for the years ended June 30, 2007 and 2006 were approximately $4,695,000 and $5,304,000
respectively.

In response to The Christ Hospital’s expressed intent to withdraw from the Health Alliance, the Health Alliance
initiated litigation (The Health Alliance of Greater Cincinnati v. The Christ Hospital, et al. (Case No. A0601969))
on March 1, 2006 in the Court of Common Pleas of Hamilton County, Ohio (the “Court of Common Pleas”) to
obtain a declaratory judgment that there were no circumstances that would permit The Christ Hospital to
withdraw from the Health Alliance. St. Luke Hospital joined the suit as a defendant in order to obtain an
adjudication of whether it was permitted to withdraw from the Health Alliance. On April 16, 2007, the Court of
Common Pleas made a post-trial entry following a bench trial that The Christ Hospital and St. Luke Hospital
had the right to terminate the contractual relationship with the Health Alliance. In the final judgment entry on
June 13, 2007, the Common Pleas Court denied the request of The Christ Hospital and St. Luke Hospital to
dissolve the Health Alliance and ordered an accounting for the purpose of determining, among other things, the
value of the respective interests of The Christ Hospital and St. Luke Hospital under the Joint Operating
Agreement in anticipation of their departure from the Health Alliance. In addition, on July 31, 2007, The Christ
Hospital and St. Luke Hospital filed an action in the Court of Common Pleas seeking to dissolve the Health
Alliance and asking that a receiver be appointed to oversee the break-up. A preliminary injunction hearing, set
for September 28, 2007, in which The Christ Hospital and St. Luke Hospital sought to enjoin the Health
Alliance from taking actions inconsistent with dissolution, has been postponed until October 29, 2007. On
September 28, 2007 The Christ Hospital and St. Luke Hospital filed a motion for summary judgment asking the
judge to decide the matter without a trial.

If the judgment of the Court of Common Pleas is ultimately permitted to stand, or if the Health Alliance is
dissolved, the effect on the University is difficult to ascertain with certainty. Under the Joint Operating
Agreement, the possibility exists that the Health Alliance will be required to pay certain amounts to the
departing members. Likewise, such departing members may be required to make payments to the Health
Alliance. Absent an accounting, it is impossible to determine at this time the existence or size of such amount,
if any. Further, any number of factors may result in a diminution of the demand for services by the Health
Alliance and its remaining members, including the University, may result in a reduction of clinical training
opportunities for students in the University’s College of Medicine. Pursuant to the Operating and Affiliation
Agreement between the Health Alliance and the University dated January 25, 2006, the Health Alliance
provides financial support to the University for academic programs that directly or indirectly support patient care
at the University Hospital or the Health Alliance. The Health Alliance also pays the University an annual

38
UNIVERSITY OF CINCINNATI JUNE 30, 2007

education and research payment that must be used exclusively for academic health center purposes. The total
of these payments for the years ended June 30, 2007 and 2006 were $9,038,000 and $12,139,000
respectively. Currently, the University is unable to determine whether and what extent, if any, the receipt of
such amounts in the future could be materially and adversely affected. The ultimate result of the current
litigation, as well as the financial and operational effects thereof on the University, is extremely difficult to
quantify or assess until such litigation is resolved.

13. Capital Project Commitments

At June 30, 2007, the University is committed to future capital expenditures as follows (in thousands):

Contractual commitments $ 44,907

Estimated completion costs of projects 254,976
Total $299,883

These projects are being funded through various resources, including the State of Ohio, as follows (in
thousands):

Approved state appropriations requested and released

as of June 30, 2007 $ 6,586
Approved state appropriations not yet requested 308
Gifts and Pledges 225
University funded prior to June 30, 2007 51,374
Funds to be provided subsequent to June 30, 2007, from
various available sources 241,390
Total $299,883

The $241,390,000 of funding to be provided subsequent to June 30, 2007 will come from state funds, federal
funds, debt, gifts and University funds.

14. Self-Insurance Funds

The University currently provides for medical professional and general liability insurance through a combination
of an actuarially funded self-insurance program sponsored by the University and purchased commercial
insurance in excess of the self-insurance amount. The medical professional liability insurance program also
includes several qualified not-for-profit departmental (physician) practice corporations. Medical professional
self-insurance limits were $4 million per occurrence for 2007. An additional $15 million in commercial excess
professional liability insurance was provided above the self-insured retention.

General liability coverage is also provided as part of a group insurance program of Ohio state universities
known as the Inter-University Council of Ohio Insurance Consortium (IUC-IC). This program provided for $1
Million retention per occurrence with the first $100,000 funded by UC, and the remaining $900,000 funded by
pool funds held through the IUC. Excess commercial coverage for general liability was provided with total
limits of $50 million, of which $45 million was shared with the other participating universities. In addition,
educators’ legal liability coverage was provided through the IUC program with $25 million in total limits, of
which $20 million was shared among the participating institutions. The IUC-IC self-insurance pools are funded
by an agreed formula among the participating universities.

The University’s self-insurance program is based on calculations by independent actuaries and funds are
deposited directly into two irrevocable self-insurance trust funds, one for medical and professional liability and
one for general liability. In the opinion of management, trust assets totaling approximately $23,749,000 are
adequate to cover estimated liabilities resulting from known claims and incidents and incurred-but-not-reported
incidents as of June 30, 2007.

Property insurance is also provided through the IUC-IC program, consisting of commercial property insurance
with a $350,000 retention, and a self-insurance pool to fund losses between $100,000 and $350,000.

39
UNIVERSITY OF CINCINNATI JUNE 30, 2007

The University is also self-insured for a portion of medical and dental benefits provided to employees. The cost
of such self-insured benefits provided during 2007 and 2006, respectively, was approximately $36,022,000 and
$21,197,000, including $5,202,000 and $1,861,000 accrued for estimated claims incurred but not reported.
The increase in 2007 is attributable to adding the HMO portion of medical and dental benefits.

15. Commitments and Contingencies

The University is currently a defendant in various legal actions. Additional legal action regarding the Health
Alliance of Greater Cincinnati but not involving the University could negatively affect a portion of the education
and research payment received from the Health Alliance. Although the final outcome of such actions cannot
currently be determined, the University's administration is of the opinion that the eventual liability, if any, will not
have a material effect on the financial position or operations of the University.

The University receives grants and contract from certain federal, state and local agencies to fund research and
other activities. The costs, both direct and indirect, that have been charged to the grants or contracts are
subject to examination and approval by the granting agency. It is the opinion of management that any
disallowance or adjustment of such costs would not have a material effect on the financial statements.

In 2005 the Department of Education conducted a program audit of certain aspects of the University’s Student
Financial Aid Program. As a result of various findings of the Department of Education, the University has
estimated a liability to the Department of Education approximating $13 million.

The University’s utility plant is exposed to market price fluctuations on its purchase of natural gas. The
University has purchase commitments with certain suppliers of natural gas whereby the University can lock into
the price of natural gas for a specified amount of natural gas that the University will take delivery of. As of June
30, 2007, the University has purchase commitments for 353,225 decatherm of gas at a price based on
NYMEX, plus a surcharge on the date of the purchase commitment.

16. University of Cincinnati Foundation

The University of Cincinnati Foundation is a legally separate, tax-exempt component unit of the University.
The principal function of the Foundation is to solicit, reserve, hold, invest and administer funds and to make
distributions to or for the benefit of the University. Since these resources held by the Foundation can be used
only by or for the benefit of the University, the Foundation is considered a component unit of the University and
is discretely presented in the University’s financial statements.

Accounts of the Foundation have been consolidated in the accompanying financial statements in accordance
with generally accepted accounting principles for not-for-profit organizations. Pledges receivable for the benefit
of the University totaling $12,388,000 in 2007 and $18,671,000 in 2006, and funds held in trust by the
Foundation for the University of $224,903,000 in 2007 and $191,001,000 in 2006, have been recorded by the
University and have, therefore, been eliminated from the amounts reported for the Foundation as of June 30,
2007 and 2006. Of these amounts, $203,257,000 and $171,491,000 has been invested as of June 30, 2007
and 2006 respectively in the University endowment pool investment pool.

A) Cash & Cash Equivalents

The carrying amount of the Foundation’s cash and cash equivalents is $10,684,000 as compared to bank
balances of $11,073,000. The difference between the carrying amounts and the bank balances is caused
primarily by deposits in transit and outstanding checks.

Of the Foundation’s bank balances, $848,000 is covered by federal depository insurance, $8,704,000 is
uninsured and mutual funds hold $1,521,000 in cash equivalents.

40
UNIVERSITY OF CINCINNATI JUNE 30, 2007

B) Investments

The fair value of investments at June 30 is (in thousands):

2007 2006
U. S. government securities $ 49 $ 77
Corporate notes and bonds - -
Corporate stocks - 928
Mutual funds 18,495 15,267
Other securities 967 875
Real estate - 978
Total investments $19,511 $18,125

GASB Statement 40 requires government entities to categorize investments of interest rate risk, credit risk, and
custodial risk.

Interest Rate Risk

The Foundation’s investments total $19,511,000 and $18,125,000 as of June 30, 2007 and 2006 respectively.
The segmented time distribution method is used to portray interest rate risk for $17,515,000 and $14,085,000
of bond and other fixed income investments as of June 30, 2007 and 2006, respectively. Investments for the
years ended June 30, 2007 and 2006 are summarized as follows (in thousands):

Investment Maturities (In Years) 2007

Investment Type Fair Value Less than 1 1–5 6 – 10 More than 10

U.S. Treasury Obligations $ 1,270 $ 209 $ 219 $ 842 $ -

U.S. Government Agency 3,202 1,196 661 601 744
Obligations
Municipal Obligations 77 - - 21 56
Corporate Bonds 5,498 2,453 2,350 663 32
Bond Mutual Funds 7,468 - 1,151 6,117 200
Total Investments $17,515 $ 3,858 $ 4,381 $ 8,244 $ 1,032

Investment Maturities (In Years) 2006

Investment Type Fair Value Less than 1 1–5 6 – 10 More than 10

U.S. Treasury Obligations $ 867 $ 5 $ 34 $ 828 $ -

U.S. Government Agency 1,965 59 669 635 602
Obligations
Corporate Bonds 2,845 291 1,782 741 31
Bond Mutual Funds 8,290 - 728 7,447 115
Other 118 10 - 21 __ 87

Total Investments $14,085 $ 365 $3,213 $9,672 $ 835

The Foundation does not have a policy for interest rate risk.

41
UNIVERSITY OF CINCINNATI JUNE 30, 2007

Credit Risk – Bond and other fixed income investments are rated by nationally recognized rating organizations
as follows, as of June 30 (in thousands):

2007 2006
U.S. Government Obligations $ 1,270 $ 867
AAA 8,397 2,789
AA 4,063 4,520
A 3,091 1,817
BBB 157 209
BB 507 488
Not Rated 30 3,395

Total $17,515 $14,085

Foundation investment grade bonds are limited to those in the first four grades of any rating system. The
average rating of the portfolio of investment grade bonds must be in the top two grades of any rating system.
Limited investments having strategic value to the University are permitted.

Custodial Credit Risk

Of the Foundation’s $19,511,000 total investments, approximately $16,784,000 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 $38,030,000 and $50,949,000 as of
June 30, 2007 and 2006, respectively. These pledges receivable have been discounted at a rate of six percent
to a net present value of $24,669,000 and $26,839,000 as of June 30, 2007 and 2006, respectively, which
represents fair market value. As of June 30, these pledges are due as follows (in thousands):

2007 2006
Less than one year $ 8,065 $11,621
One to five years 8,565 4,581
More than five years 8,039 10,637
Subtotal 24,669 26,839
Less allowance for
uncollectibles pledges 1,603 640
Total $23,065 $26,199

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. Unconsolidated Related Organization

Prior to 2006, the University’s Board of Trustees and the Board of County Commissioners of Hamilton County,
Ohio (the County) constituted the membership of Drake Center, Inc. (the Center), a nonprofit corporation
created to operate a rehabilitation hospital and a skilled nursing facility. The Center was governed by a Board
of Trustees, the majority of which were appointed by the University Board of Trustees. In addition, certain

42
UNIVERSITY OF CINCINNATI JUNE 30, 2007

University officers/employees served on the Center’s Board and in Center officer/employee positions under
contractual arrangements.

In May 2006 the Health Alliance of Greater Cincinnati (the Health Alliance), the University, the Center and the
County entered into a reorganization agreement for the Center. Under the terms of the agreement, the Health
Alliance assumed ownership of the Center as of July 1, 2006 and became the sole member of the Center. The
existing Board of Trustees of the Center, including those appointed by the University, resigned and the Health
Alliance elected a new Board of Trustees. Accordingly, the prior relationship between the University and the
Center ceased to exist as of July 1, 2006.

18. New Accounting Standards

GASB Statement Number 48, Sales and Pledges of Receivables and Future Revenues and Intra-Entity
Transfers of Assets and Future Revenues was issued in September 2006 and establishes criteria to ascertain
whether certain transactions should be regarded as sales or collateralized borrowings. The provisions of the
Statement are effective for fiscal periods beginning after December 15, 2006.

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 50, Pension Disclosures – an amendment of GASB Statements No. 25 and 27 was
issued May 2007. It more closely aligns the financial reporting requirements for pensions with those for other
post-employment benefits (OPEB) and enhances information disclosed in notes to financial statements by
pension plans and by employers that provide pension benefits. This Statement is effective for periods
beginning after June 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.

Although not yet required to implement the aforementioned Statements for the year ended June 30, 2007, the
University does not think that there will be a material effect on its financial statements when implementation
does occur.

43
University of
Cincinnati
Office of Management and Budget
Circular A-133 Reports for the
Year Ended June 30, 2007
UNIVERSITY OF CINCINNATI

TABLE OF CONTENTS

Page

INDEPENDENT AUDITORS’ REPORT 1–2

MANAGEMENT’S DISCUSSION AND ANALYSIS 3–11

FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2006 AND 2005:

Statements of Net Assets 12

Statements of Revenues, Expenses and Changes in Net Assets 13

Statements of Cash Flows 14–15

Notes to Financial Statements 16–37

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007 38–75

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007 76–77

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS 78–79

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS

APPLICABLE OF EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 80–81

SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED

JUNE 30, 2007 82–84

SUMMARY OF SCHEDULE OF PRIOR AUDIT FINDINGS AND

QUESTIONED COSTS 85–86
 Deloitte & Touche LLP
250 East 5th Street
Suite 1900
Cincinnati, OH 45202-5109
USA
Tel: +1 513 784 7100
Fax: +1 513 784 7204
www.deloitte.com

INDEPENDENT AUDITORS’ REPORT

To the Board of Trustees of

the University of Cincinnati:

We have audited the accompanying statements of net assets of the University of Cincinnati
(“University”), a component unit of the State of Ohio, as of June 30, 2007 and 2006, and the related
statements of revenues, expenses and changes in net assets and of cash flows for the years then ended.
These financial statements are the responsibility of the University’s management. Our responsibility is to
express an opinion on these financial statements based on our audits. We did not audit the financial
statements of the University of Cincinnati Foundation, a discretely presented component unit. Those
statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar
as it relates to the amounts included for the University of Cincinnati Foundation, is based solely on the
report of such other auditors.

We conducted our audits in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the University’s internal control over financial reporting. Accordingly,
we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits and the reports of other auditors provide a reasonable basis for
our opinion.

In our opinion, based on our audits and the reports of the other auditors, the financial statements referred
to above present fairly, in all material respects, the financial position of the University as of June 30, 2007
and 2006, and the results of its operations and its cash flows, as applicable, for the years then ended in
conformity with accounting principles generally accepted in the United States of America.

As discussed in Note 1C to the financial statements, the financial statements include investments valued
at $437 million (22% of net assets) and $325 million (17% of net assets) as of June 30, 2007 and 2006,
respectively, whose fair values have been estimated by management in the absence of readily
determinable fair values. Management's estimates are based on information provided by the fund
managers or the general partners.

Member of
Deloitte Touche Tohmatsu
As discussed in Note 12 to the financial statements, the University has a 29.09% equity interest in the
Health Alliance of Greater Cincinnati (the “Alliance”) as a participating entity. During 2006 certain other
Alliance participating entities delivered notices to the Alliance of their intention to terminate their
participation in the Alliance. During 2007, it was entered in the Court of Common Pleas of Hamilton
County, Ohio that these certain entities have the right to terminate their participation in the Alliance. In
addition, during 2007, these certain other participating entities filed an action to dissolve the Alliance.
This matter is still pending in the Court of Common Pleas of Hamilton County, Ohio.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements of the
University. The accompanying schedule of expenditures of federal awards is presented for the purpose of
additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial
statements. Such information has been subjected to the auditing procedures applied in our audit of the
basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.

Management’s Discussion and Analysis on pages 3 through 11 are not a required part of the basic
financial statements but is supplementary information required by the Governmental Accounting
Standards Board. This supplementary information is the responsibility of the University’s management.
We have applied certain limited procedures, which consisted principally of inquiries of management
regarding the methods of measurement and presentation of the supplementary information. However, we
did not audit the information and we do not express opinion on it.

In accordance with Government Auditing Standards, we have also issued our report dated
October 12, 2007, on our consideration of the University’s internal control over financial reporting and
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements
and other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be considered in assessing the
results of our audits.

October 12, 2007

-2-
UNIVERSITY OF CINCINNATI JUNE 30, 2007

MANAGEMENT’S DISCUSSION AND ANALYSIS

INTRODUCTION

The following discussion and analysis provides an overview of the financial position and activities of the University of
Cincinnati (the “University”) for the year ended June 30, 2007, with selected comparative information for the years
ended June 30, 2006 and 2005. Comments relate only to the University and do not pertain to the University of
Cincinnati Foundation, a component unit of the University. This discussion has been prepared by management and
should be read in conjunction with the financial statements and the notes thereto, which follow this section.

The University was founded in 1819 and was city owned until becoming a state university in 1977. The University is
composed of 14 colleges, one division and one school and operates on three campuses in southwest Ohio. It has an
enrollment of approximately 35,000 students. There are approximately 2,000 full-time faculty members and a total
faculty of 4,000. The University has been designated in long-range planning by the Ohio Board of Regents as one of
only two comprehensive graduate public universities in the state. In total, the University employs more than 14,000
people and is the largest employer in the Cincinnati region.

The University and its Board of Trustees are declared by statute to be a public body performing essential
governmental functions serving public purposes and an instrumentality of the State of Ohio. The Board of Trustees
comprises nine members appointed by the Governor of Ohio for overlapping terms of nine years.

The University is affiliated with a number of health care, educational, cultural and governmental institutions. Through
such affiliations, the University is able to broaden its curricular offerings.

USING THE FINANCIAL STATEMENTS

The University’s financial report includes three financial statements: the Statement of Net Assets; the Statement of
Revenues, Expenses and Changes in Net Assets; and the Statement of Cash Flows. These financial statements are
prepared in accordance with Governmental Accounting Standards Board (GASB) Statement 35, Basic Financial
Statements—and Management’s Discussion and Analysis—for Public Colleges and Universities, as amended by
GASB Statements 37 and 38. These statements establish standards for external financial reporting for public
colleges and universities and require that financial statements focus on the University as a whole, with resources
classified for accounting and reporting purposes into three net asset categories.

Revenues and expenses are categorized as either operating or non operating. Significant recurring sources of the
University’s revenues, including state appropriations, gifts and investment income are considered non operating.

Scholarship allowances applied to student accounts are shown as a reduction of student tuition and fee revenues,
while stipends and other payments made directly to students are presented as scholarship and fellowship expense.

Capital assets, including general infrastructure assets, are shown net of depreciation. However, there is no
requirement to fund the accumulated depreciation. Instead, capital assets are largely funded by state capital
appropriations, issuance of debt, and by major gifts that support the academic, research and student services
missions of the institution. Gifts and capital appropriations are reflected on the financial statements as non operating
revenue and other revenue, respectively. The corresponding annual depreciation expense is reflected as an
operating expense.

Accounts of the University of Cincinnati Foundation have been consolidated in the accompanying financial
statements in a discrete columnar format.

3
UNIVERSITY OF CINCINNATI JUNE 30, 2007

FINANCIAL HIGHLIGHTS

The University’s financial position remained strong at June 30, 2007, with total assets of $ 3.3 billion and liabilities of
$1.3 billion. Net assets, which represent the residual interest in the University’s assets after liabilities are deducted,
increased by $105 million in fiscal 2007 to $2.0 billion, or 60% of total assets as a result of the following:

- Total assets increased by $226 million, or 7%, primarily due to increases in the value of endowment and
other non-current investments and the addition of capital assets.

- Total liabilities increased by $120 million, primarily due to the issuance of additional debt.

Income before other revenues, expenses, gains or losses includes the effect of several significant transactions,
including fluctuations in the market value of investments; non cash depreciation; losses on the disposal of assets;
federal financial aid program liabilities; increased benefit costs primarily due to retirement contributions and health
care; and expenses incurred related to bringing major projects on line. The net effect of these significant transactions
on income (loss) before other revenues, expenses, gains or losses is shown below.

2007 2006 2005

Change in investment value $ 167 $ 130 $ 65

Depreciation (87) (79) (72)
Loss on asset disposal - (11) (15)
Federal financial aid liability - (8) -
Benefit costs - (13) -
Expenses related to major capital projects - (13) -
$ 80 $ 6 $ (22)

Operating revenues increased by $37 million in 2007, compared to $11 million in 2006, primarily from increased
tuition revenue. The increase in tuition revenues was driven by tuition increases, which ranged from 6% to 11% in
2007 and 2006, and increases in enrollment of 2% and 3% in 2007 and 2006. Revenues from sponsored research
(grants and contracts) increased by $2 million in 2007, compared to a $3 million decrease in 2006.

Operating expenses in total were approximately flat at $927 million and $929 million in 2007 and 2006, reflecting the
University’s focus on cost containment. Operating expenses that increased included $8 million reflecting increased
research activity, $7 million for scholarships and fellowships that support enrollment growth, and $8 million for
depreciation expense for new and renovated buildings brought on line. Operating and maintenance of plant
expenses decreased $27 million, reflecting energy saving measures, budget cuts and staff reductions in facilities
management and other areas that support the University’s physical plant. Auxiliary enterprise expenses decreased
$3 million, primarily reflecting budget cuts in the Campus Services auxiliary. In 2006, operating expenses increased
by $77 million, primarily due to increases in depreciation, benefits costs, energy costs, and expenses incurred related
to bringing major projects on line. Other operating expenses were approximately flat.

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. Total
enrollment has increased from 32,975 in autumn 2002 to 35,527 in autumn 2006, with enrollment expected to exceed
36,000 in autumn 2007. Student quality has improved as well, with average ACT scores for baccalaureate freshman
rising from 21.7 in 2002 to 24.0 in 2006. With the completion of the long period of dramatic new building construction,
the University’s capital activities now are focused on renovation and rehabilitation of existing buildings, of which the
largest is the Medical Sciences Building Rehabilitation Project.

Finally, in 2007 the University’s endowment exceeded $1 billion for the third year in a row. According to the National
Association of College and University Business Officers Endowment Study, the value of the endowment ranks in the
top 10% of all US institutions of higher education, both public and private.

4
UNIVERSITY OF CINCINNATI JUNE 30, 2007

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS

The statement of revenues, expenses and changes in net assets presents the University’s results of operations. A
summarized comparison for the years ended June 30 follows (in thousands):

2007 2006 2005

Operating revenues:
Student tuition and fees, net $ 260,605 $ 230,778 $210,937
Grants and contracts 192,360 190,666 193,877
Auxiliary enterprises, net 77,039 73,815 81,250
Other 64,296 61,873 60,375
594,300 557,132 546,439

Operating expenses:
Instruction 285,671 281,857 264,736
Research 153,247 144,764 143,848
Auxiliary enterprises 77,509 80,397 83,167
Depreciation 87,360 79,096 71,708
Other 323,113 342,591 288,281
926,900 928,705 851,740
Operating loss (332,600) (371,573) (305,301)

Nonoperating revenues (expenses):

State appropriations 185,864 179,857 179,007
Gifts 46,356 49,151 37,686
Investment income, net 60,311 54,443 53,448
Increase in fair value of investments 166,878 130,169 65,480
Interest expense, net (40,245) (31,005) (25,115)
Other (9,892) (6,909) (15,026)
409,272 375,706 295,480
Income (loss) before other revenues, expenses,
gains or losses 76,672 4,133 (9,821)

Capital appropriations 8,778 19,344 44,024

Capital grants and gifts 2,675 7,587 12,026
Additions to permanent endowments 16,966 13,414 15,203

Increase in net assets $ 105,091 $ 44,478 $ 61,432

The University’s financial condition improved in 2007 as demonstrated by the $77 million income before other
revenues, expenses, gains or losses, compared to $4 million and $(10) million in 2006 and 2005 respectively. The
University’s aggressive efforts to work toward stabilized operations resulted in Increased operating revenues,
primarily from student tuition and fees, which, combined with flat operating expenses, led to the improvement.

One of the University’s greatest strengths is the diverse stream of revenues that supplement its student tuition and
fees, including voluntary private support from individuals, foundations and corporations along with government and
other sponsored programs; state appropriations and investment income. The University has aggressively sought,
and will continue to seek, funding from all possible sources consistent with its mission to supplement student tuition,
and will prudently manage the financial resources realized from these efforts to fund its operating activities.

5
UNIVERSITY OF CINCINNATI JUNE 30, 2007

Tuition and state appropriations are the primary sources of funding for the University. During 2007, tuition rate
increases ranged from 6% to 11%, depending upon the category of student. In addition, a 2% increase in overall
enrollment was achieved by increased recruitment and retention efforts. These increases, as well as changes in the
mix of students, resulted in increases in tuition and fee income in 2007 of $30 million, or 13%, over 2006. Similar
tuition increase were implemented in 2006, supplemented by a 3% increase in enrollment that resulted in increases in
tuition and fee revenue of $20 million, or 9%, in 2006 compared to 2005.

State appropriations increased $6 million, or 3%, in 2007, reflecting an improvement from the recent trend of flat or
decreasing state support for higher education. State appropriations now contribute a significantly lower percentage of
the overall funding of University operations, particularly compared to tuition. Nonetheless, such resources remain a
vital source of funding for academic programs and administrative costs. If future tuition increases are to be
minimized, the level of state appropriation support will need to be increased.

Revenues from grants and contracts with governmental and private entities provide for the recovery of direct and
indirect costs. Such revenues increased $2 million in 2007, rebounding from a slight decline in 2006. In a time of
heightened competitiveness, especially for federal research funding, the University is maintaining its research base.

The results of fund raising efforts have been an important component of financial resources during the past two fiscal
years. Expendable gifts to the University totaled $49 million and $57 million in 2007 and 2006, respectively. It will be
difficult to sustain the current level of operations without continued increases in donor support. Accordingly, plans are
being implemented for a fund raising campaign to increase the number of substantial recurring gifts that are available
for operations.

Investment income increased $6 million in 2007 compared to 2006, primarily reflecting growth in endowment income
on a higher level of endowment investments. Endowment investments increased $91 million in 2007.

Although higher education must compete with other state demands for increased state capital appropriations, the
decrease in capital appropriations in 2007 compared to 2006 reflects a temporary delay in obtaining a portion of the
biennial capital appropriation until the state issues its Buckeye Tobacco Settlement Financing Bonds, which is
expected to occur in late fall 2007.

STATEMENT OF NET ASSETS

The statement of net assets presents the financial position of the University at the end of the fiscal year. Net assets
represent the difference between total assets and total liabilities. Net assets are one indicator of the overall financial
condition of the University, while the change in net assets is an indicator of whether the overall financial condition has
improved or worsened during the year. Assets and liabilities are generally measured using current values. One
notable exception is capital assets, which are stated at historical cost less an allowance for depreciation. A
summarized comparison of the University’s assets, liabilities and net assets at June 30 follows (in thousands):

2007 2006 2005

Current assets $ 170,733 $ 154,435 $ 192,641
Noncurrent assets:
Endowment, life income and other investments 1,597,390 1,442,060 1,341,637
Capital assets, net 1,470,743 1,420,479 1,330,172
Other 61,332 57,648 57,519
Total assets 3,300,198 3,074,622 2,921,969

Current liabilities 326,494 288,353 209,951

Noncurrent liabilities 1,002,964 920,620 890,847

Net assets $ 1,970,740 $ 1,865,649 $ 1,821,171

6
UNIVERSITY OF CINCINNATI JUNE 30, 2007

Current Assets

Current assets consist primarily of cash, short-term investments and receivables. Cash and short-term investment
balances include both operating cash and capital debt proceeds. In 2007, the level of cash and short-term
investments increased by $31 million, primarily reflecting the proceeds of new debt borrowed for capital projects.
Deposits with bond trustees decreased by $9 million, primarily reflecting the release of prior debt service reserves no
longer required. These factors contributed to an overall increase of $16 million, or 11%, in total current assets.

Endowment, Life Income and Other Investments

The University invests its endowment to maximize total return over the long term with an appropriate level of risk.
The success of this long-term investment strategy is evidenced by strong returns sustained over long periods of time
and the University’s ability, in the face of current challenging markets, to limit losses. Changes in the fair value of the
endowment portfolio will not have a meaningful immediate impact on the portion of investment income available to
support current-year operating expenses because the University makes such distributions pursuant to its spending
rate policy.

The assets of the University’s endowment increased by $90 million in 2007. This increase resulted from investment
returns of $145 million, the establishment of new endowments of $17 million and distributions of $72 million to
beneficiary units within the University. In 2006, investment returns, new funds and distributions were $118 million,
$13 million and $62 million respectively. Under its endowment spending policy, the University uses its endowment to
support current operations in a way that generates a predictable stream of support, while at the same time
maintaining the purchasing power of endowment funds adjusted for inflation. The spending policy provides for annual
distributions of five percent (temporarily increased to 6% for 2007 and 2008) of the three-year quarterly moving-
average market value of assets in the investment pool. Due to the changes in valuation of these assets over the last
three years, actual distributions to beneficiary units were 5.4% and 4.2% of the beginning market value of these
assets in 2007 and 2006, respectively.

Non current investments increased by $14 million in 2007 reflecting additional debt proceeds borrowed for capital
projects during fiscal year 2007. In 2006, such expenditures decreased non current investments by $32 million.

Other long-term investments primarily represent the University’s equity interest in the Health Alliance of Greater
Cincinnati, valued at $375 million and $325 million in 2007 and 2006 respectively. The University and the 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 in 2007, compared to $12 million in 2006,
providing a return on asset of 2.4% and 3.7% respectively. For further discussion of the Health Alliance, please refer
to Note 12, Equity Interest in Alliance.

Capital Assets

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 $141 million in 2007, $181 million in 2006,
and $201 million in 2005 before depreciation expense of $87 million, $79 million, and $72 million in 2007, 2006 and
2005, 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 2007, the University
continued to focus its capital program on Academic Health Center projects and renovation of existing facilities.

Major capital projects completed during FY 2007

• Jefferson Grid – $3 million project scope included restoration of Corry Boulevard.

• Edwards Renovation - $2 million project included updates to portions of all seven levels of the Edwards One
building to accommodate new tenants that will be displaced during phase 2 of the renovation of Teachers
College/Dyer.

7
UNIVERSITY OF CINCINNATI JUNE 30, 2007

Major capital projects in construction at June 30, 2007 (projects will be completed during FY 2008)

• Medical Sciences Building Rehabilitation Phase I, CARE (Center for Academic Research Excellence)/Crawley
Building, and Eden Quadrangle – $214 million project scope consists of creating a state-of-the-art instructional
and research space for the College of Medicine, as well as open space for the academic medical campus.

• Teachers College/Dyer Hall Rehabilitation Phase 2 – $18 million project includes rehabilitating 60,000 gross
square feet of existing space. Major building improvements include reconfiguration of interior spaces with all
new interior finishes and furnishing as well as new HVAC, electrical, fire protection, and plumbing systems, new
lighting, data wiring, audio-visual systems, and security.

• Zimmer Rehabilitation – $3 million construction includes renovation of Zimmer Auditorium and the
corridor/lounge spaces that surround it.

Major capital projects in design (projects have various completion dates)

• Clifton Court Garage – $6 million project will rehabilitate 178,773 square feet of parking area.

• Kettering Preclinical Science Lab Renovation – $3 million project will provide 9,760 square feet of renovated lab
space for environmental research.

• Medical Sciences Building Rehabilitation, Phases 2-5 - $204 million project will continue the major rehabilitation
of the Medical Sciences Building which will extend the use of the facility for another 25 – 30 years.

Debt

Total debt representing bonds, notes and certificates of participation, was increased by $105 million in 2007 as a
result of issuing new debt of $268 million and by decreasing outstanding debt by $163 million. New debt of $268
million was issued to fund various capital projects and to refund $78 million of existing debt. As a result of refunding
the existing debt, the University will realize a net economic gain of $2 million over 18 years. Debt was increased by
$90 million in 2006, due to the issuance of new debt of $165 million and decreasing outstanding debt by $75 million.
That new debt was also used to fund capital projects and to refund $20 million of existing debt. As a result of that
refunding, the University will realize a net economic gain of $.9 million over 14 years.
Subsequent to June 30, 2007, the University has issued $40.5 million in Series 2007E BANS and $32.8 million in
Series 2007F BANS to refinance existing bond anticipation notes (Series 2006D, 2006E and 2007D) and to fund
various capital projects.
Standard & Poors (S&P) rated the University’s bonds A+, its certificates of participation A, and its notes SP-1+ in
2006 and 2007. S&P revised the outlook for the University from stable to negative during 2007. Moody’s rated the
University’s bonds A1, its certificates of participation A2, and its notes MIG1 in 2006 and 2007. Moody’s revised the
outlook for the University from stable to negative during 2007. The outlook revisions reflected continuing operating
deficits and declines in unrestricted net assets. Series 2007E and 2007F BANS, issued subsequent to June 30, 2007
to refinance existing bond anticipation notes and to fund various capital projects, were rated SP-1+ and MIG1 by S&P
and Moody’s respectively, and the University’s underlying long-term bond ratings were confirmed.
The University’s repositioning of student activity facilities, expansion of research and educational facilities beyond the
level provided by state capital appropriations, technological upgrades, and restructured parking system all resulted in
a significant amount of new debt. The extensive investment in these facilities was necessary to attract high quality
students, faculty, and research funding in an increasingly competitive environment. With the completion of the Main
Street and Varsity Village projects, the University’s debt financing activity will proceed at a slower pace than in the
last decade, focusing on Academic Health Center projects and renovations of existing facilities.

8
UNIVERSITY OF CINCINNATI JUNE 30, 2007

Net Assets

Net assets represent the residual interest in the University’s assets after liabilities are deducted. The University’s net
assets at June 30 are summarized below (in thousands):

2007 2006 2005

Invested in capital assets, net of related debt $ 478,971 $ 516,992 $ 541,205
Restricted:
Nonexpendable 1,265,492 1,115,611 997,531
Expendable 413,063 398,304 400,182
Unrestricted (186,786) (165,258) (117,747)
Total net assets $1,970,740 $1,865,649 $1,821,171

Capital assets, net of related debt, represent the University’s depreciated buildings, equipment and infrastructure less
the outstanding principal balances of debt attributable to the acquisition, construction and improvement of those
assets. The decreases of $38 million in 2007 and $24 million in 2006, respectively, reflect the University’s continued
development and renewal of its capital assets in accordance with the Master Plan, net of depreciation expense and
long term debt.

Restricted nonexpendable net assets include, as a primary component, the University’s permanently invested
endowment funds. It also includes the University’s equity interest in The Health Alliance of Greater Cincinnati. The
$150 million increase in restricted nonexpendable net assets in 2007 and the $118 million increase in 2006 reflect the
changes in the fair value of investments, net of gifts.

Restricted expendable net assets are subject to externally imposed provisions governing their use. This category of
net assets includes restricted gifts of $291 million in 2007 and $303 million in 2006 that were temporarily invested in
the endowment.

While the deficit position of unrestricted net assets grew by $22 million in 2007, the university’s actions to address the
deficit dramatically slowed the rate of deficit growth from $48 million in 2006. Specific measures implemented in
2007 to address the deficit position include aggressive management of health care costs, increased employee
contribution to health care premiums and co-pays, elimination of salary increases and bonuses for non-represented
employees, heating and cooling temperature adjustments to reduce energy costs, and an early retirement incentive
program for employees in the OPERS retirement system. In addition, the University’s endowment spending policy
distribution was temporarily increased from 5% to 6% for 2007 and 2008. The unrestricted net assets deficit position
will continue to be addressed through budget cuts and multi-year funding using a combination of departmental and
central budget sources to resolve these fund deficits over time. The slowed rate of deficit growth reflects the success
of the structural management changes initiated in 2006, under which the University reorganized around principles of
greater accountability, disciplined financial activities, and integrated budget planning.

9
UNIVERSITY OF CINCINNATI JUNE 30, 2007

STATEMENT OF CASH FLOWS

The Statement of Cash Flows provides additional information about the University’s financial results by reporting the
major sources and uses of cash. A comparative summary of the statement of cash flows for the years ended June 30
follows (in thousands):

2007 2006 2005

Cash received from operations $ 653,241 $ 569,088 $ 549,726

Cash expended for operations 866,848 847,806 785,417

Net cash used in operating activities (213,607) (278,718) (235,691)

Net cash provided by non-capital financing activities 234,969 225,608 231,699
Net cash used for capital and related
financing activities (79,115) (79,431) (181,077)
Net cash used for investing activities 89,113 118,435 179,125

Net increase (decrease) in cash and cash equivalents $ 31,360 $ (14,106) $ (5,944)

The disparity between cash used in operating activities and cash provided by non capital financing activities results
from the required financial reporting classification of state appropriations. Although state appropriations are used
primarily for operating expenses of the University, GASB Statement 35 requires that they be reported as non
operating revenues. Had these resources been reported as operating revenue, the net cash used in operating
activities would have been deficits of $28 million 2007 and $87 million in 2006.

ECONOMIC FACTORS AFFECTING THE FUTURE

Following several years of weakness, the Ohio economy, with its broadly diversified economic base, is now in a
period of modest expansion, with improving reserve levels based on restrained spending and strong revenues. State
support to the University declined for several years, flattened in 2006 and 2005, and increased in 2007. Although the
University is a state-supported institution, such appropriations accounted for only 18% and 19% of the total revenues
of the University in 2007 and 2006, respectively. The depressed level of state support has resulted in an increasing
reliance on tuition and fees as a primary funding source. The state increased appropriations to higher education for
2008, however, it also mandated no tuition increase for in-state undergraduate students. The improving Ohio
economy, combined with a new state administration that took office in 2007 and its welcome attention to higher
education, may provide cautious optimism for increased state support. The state-announced University System of
Ohio will undoubtedly impact higher education and the University of Cincinnati as its specifics are developed.

Considering the increasing reliance on tuition revenue to fund operations, it is of vital importance to the future of the
University to increase the current levels of student enrollment and student retention. Increasing enrollment is a
critical part of an institutional strategic plan titled “UC 21” that lays out ambitious goals and an action plan to define
the role of an urban research university in the new century. The plan defines a set of core values to guide the
institution in its rapid transformation and enable it to compete for students from a diverse cohort of learners, as it
deals with an escalating need to bring intellectual capital to bear on societal issues and to meet the rising call to serve
as the economic engine in a knowledge-based environment. While national demographic trends are generally
favorable for higher education, Ohio faces a predicted decline in high school graduates in the future. The University’s
investment in its Main Street complex, Varsity Village, residential and commercial facilities on the borders of campus
and other quality of life facilities are key to attracting students from outside Ohio’s borders. These facilities and
additional anticipated improvements to the nearby neighborhoods should result in a more enjoyable and more
convenient environment that will supplement the on-campus educational experience and serve as a magnet for
prospective students. The University has supported these efforts through $81 million of loans currently outstanding
from its endowment to neighborhood partnerships. These initiatives have contributed significantly toward the
University’s enrollment growth, which is expected to exceed 36,000 in fall 2007.

10
UNIVERSITY OF CINCINNATI JUNE 30, 2007

The University has long maintained a position of national prominence among leading research institutions. While
research funding has become an increasingly competitive environment, the University maintained a stable research
base. The University’s existing and planned investments in research facilities provide a competitive edge. The
Academic Health Center capital projects will be completed over the next decade and will enable the University to
remain a leader in biotechnology medical research for the region. The focus of the current capital projects is to
upgrade and add research facilities, improve the quality of student life, and upgrade infrastructure and utilities.
These initiatives are in an effort to remain competitive and provide the best possible educational experience for the
students and promote quality of student life. While the University has scaled down or even canceled many of its
planned capital projects, renovating existing facilities to keep them operable is critical. The traditional source of
capital for such projects—the State of Ohio Capital Bill—is declining in both value and absolute level with each new
biennium. This trend must be reversed if the University is to sustain the required academic facilities.

Private gifts will continue to be a critically important financial resource and a significant factor in the growth of both
academic and research activities. The University’s fund-raising strategy, as well as economic factors affecting
donors’ ability to contribute, will have a significant impact on the ability to tap this important financial resource. In this
regard, fundraising budgets have been increased in order to support an aggressive program that includes a national
fundraising network focused on increasing the level of private gifts to the University. Within the next year, the
University will begin a new all University fund raising campaign.

The University will continue to employ its long-term investment strategy to maximize total return at a reasonable level
of risk. The ability to sustain a level of investment return which is compatible with the endowment spending policy will
be strained given the anticipated performance of national and international financial markets. The temporary
increase in the endowment spending policy for 2007 and 2008 will provide further strain. As a result, such investment
strategies will be continually reviewed in order to insure the most efficient use of these important financial resources.
In this regard, a full-time chief investment officer was recruited during 2006, and the investment committee was
restructured with a volunteer membership consisting of investment industry professionals.

This effort will be extended to all phases of cash management. Therefore, cash collection and investment policies
and procedures will be evaluated and reengineered as necessary. Internal administrative reorganizations have been
implemented to achieve this goal.

A significant component of both graduate and undergraduate enrollment consists of international students.
International visitors also hold numerous teaching and research positions. The ability of these individuals to achieve
or maintain international visitor status in the face of increased scrutiny by the Immigration and Naturalization Service
will be a key factor in maintaining this cross section of the academic community.

The University exists in an increasingly competitive higher education environment. Colleges and universities
throughout the region and across the country are investing heavily in marketing and public relations programs to
establish or maintain favorable reputations and to build enrollment to optimum levels. With these factors in mind, the
University continues to develop strategies that will achieve a reputation commensurate with the University’s
excellence and increase enrollment where appropriate.

Looking forward, the University is well positioned to maintain its financial condition, its high standards of service to
students and its stature in the national research community. In order to enable the University to support this level of
excellence, the University is committed to obtaining new financial resources, to maintaining revenue diversification
and to successfully containing costs.

11
 University of Cincinnati
Statement of Net Assets
As of June 30, 2007 and 2006
(in thousands)

University Related
University Foundation
2007 2006 2007 2006

ASSETS
Current assets:
Cash and cash equivalents $ 90,075 $ 58,715 $ 10,684 $ 10,891
Investments 11,097 10,969
Accounts and pledges receivable, net 47,058 56,907 20,119 25,785
Inventories 1,806 1,481
Deposits with bond trustees 780 10,246
Notes receivable, net 2,869 2,994
Other assets 17,048 13,123 113 136
Total current assets 170,733 154,435 30,916 36,812

Noncurrent assets:
Investments 33,122 19,082
Accounts and pledges receivable, net 23,737 24,720 15,000 14,579
Deposits with bond trustees 7,975 2,583
Endowment investments 1,183,723 1,093,218 19,511 18,125
Notes receivable, net 29,620 30,345
Other long-term investments 380,545 329,760
Capital assets, net 1,470,743 1,420,479 1,220 522
Total noncurrent assets 3,129,465 2,920,187 35,731 33,226
Total assets 3,300,198 3,074,622 66,647 70,038

LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 158,014 148,375 11,017 21,277
Deferred revenue 29,669 23,977
Long-term liabilities - current portion 138,811 116,001
Total current liabilities 326,494 288,353 11,017 21,277

Noncurrent liabilities:
Deposits 10,076 9,187 835 754
Accrued liabilites 31,055 31,980 - 270
Refundable advances for federal loans 26,311 25,987
Long-term liabilities 935,522 853,466
Total noncurrent liabilities 1,002,964 920,620 835 1,024
Total liabilities 1,329,458 1,208,973 11,852 22,301

NET ASSETS
Invested in capital assets, net of related debt 478,971 516,992 1,220 522
Restricted for:
Nonexpendable 1,265,492 1,115,611 29,389 22,801
Expendable 413,063 398,304 19,850 20,663
Unrestricted (186,786) (165,258) 4,336 3,751
Total net assets $ 1,970,740 $ 1,865,649 $ 54,795 $ 47,737

See accompanying notes to financial statements. 12

 University of Cincinnati
Statement of Revenues, Expenses and Changes in Net Assets
For the Years Ended June 30, 2007 and 2006
(in thousands)

University Related
University Foundation
REVENUES 2007 2006 2007 2006
Operating revenues:
Student tuition and fees, net $ 260,605 $ 230,778 $ $
Federal grants and contracts 167,593 166,459
State and local grants and contracts 10,593 10,864
Nongovernmental grants and contracts 14,174 13,343
Sales and services of educational departments 58,645 56,008
Auxiliary enterprises:
Residential life 27,591 25,671
Athletics, net 13,184 11,665
Other Auxiliary enterprises 36,264 36,479
Other operating revenues 5,651 5,865
Total operating revenues 594,300 557,132 - -

EXPENSES
Operating expenses:
Instruction 285,671 281,857
Research 153,247 144,764
Public Service 56,592 55,566
Academic Support 66,306 67,501
Student Services 37,188 38,041
Institutional Support 77,054 75,269 7,804 15,455
Operation Maintenance and Plant 61,499 88,322
Scholarships and Fellowships 24,474 17,892
Auxiliary Expenses 77,509 80,397
Depreciation 87,360 79,096 210 270
Total operating expenses 926,900 928,705 8,014 15,725
Operating loss (332,600) (371,573) (8,014) (15,725)

NONOPERATING REVENUES (EXPENSES)

State appropriations 185,864 179,857
Gifts, including $22,927 in FY07 and $32,306 in FY06
from the University Foundation 46,356 49,151 27,778 15,609
Investment income 60,311 54,443 5,212 4,454
Increase in fair value of investments 166,878 130,169 5,009 2,653
Interest on capital asset-related debt (40,245) (31,005)
Gain (loss) on disposal of assets 1,659 (11,164)
Payments to University of Cincinnati - - (22,927) (32,306)
Other nonoperating revenues (expenses) (11,551) 4,255 1,121
Net nonoperating revenue (expense) 409,272 375,706 15,072 (8,469)
Income (loss) before other revenues,
expenses, gains or losses 76,672 4,133 7,058 (24,194)
Capital appropriations 8,778 19,344
Capital grants and gifts 2,675 7,587
Additions to permanent endowments 16,966 13,414
Increase (decrease) in net assets 105,091 44,478 7,058 (24,194)

NET ASSETS
Net assets - beginning of year 1,865,649 1,821,171 47,737 71,931
Net assets - end of year $ 1,970,740 $ 1,865,649 $ 54,795 $ 47,737

See accompanying notes to financial statements. 13

 University of Cincinnati
Statements of Cash Flows
Years Ended June 30, 2007 and 2006
(in thousands)

2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES
Tuition and fees $ 265,530 $ 235,805
Grants and contracts 190,831 181,664
Sales and services of educational departments and auxiliary enterprises 136,800 131,496
Expenditures and other deductions:
Compensation (562,184) (579,052)
Payments for materials, services and other (267,982) (261,323)
Loans issued (7,924) (7,431)
Loan principal collected 8,773 6,950
Other revenue 12,893 13,173
Cash used for operating activities (223,263) (278,718)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

State appropriations 185,863 179,857
Gifts for other than capital purposes 47,308 45,659
Interest on loans receivable 562 92
Cash from noncapital financing activities 233,733 225,608

CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES

State appropriations 9,791 11,259
Private gifts for capital purposes 3,208 7,965
Grants for capital purposes 2,098 6,499
Other 14,681 2,333
Proceeds from capital debt 267,485 164,845
Purchases of capital assets (156,665) (157,014)
Principal paid on capital debt (162,619) (74,635)
Interest paid on capital debt (46,202) (40,683)
Cash used for capital financing activities (68,223) (79,431)

CASH FLOWS FROM INVESTING ACTIVITIES

Endowment income 54,712 32,024
Income from deposits with trustees 2,914 21,173
Other endowment expenditures (45) (45)
Realized gains on investments 90,886 33,519
Purchase of investments (1,226,157) (742,861)
Sale of investments 1,163,407 771,626
Investment income 3,396 2,999
Cash from investing activities 89,113 118,435

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 31,360 (14,106)

Cash and cash equivalents - beginning of the year 58,715 72,821
Cash and cash equivalents - end of the year $ 90,075 $ 58,715

See accompanying notes to financial statements. 14

 University of Cincinnati
Statements of Cash Flows - continued
Years Ended June 30, 2007 and 2006
(in thousands)

2007 2006
RECONCILIATION OF NET OPERATING LOSS TO
NET CASH USED FOR OPERATING ACTIVITIES:

Operating loss $ (332,600) $ (371,573)

Adjustments to reconcile operating loss to net cash
used for operating activities:
Depreciation expense 87,360 79,096
Gain on disposal of capital assets (1,659) -
Changes in assets and liabilities:
Receivables, net (2,405) (6,381)
Inventories (2,052) 2,813
Other assets 549 (3,167)
Accounts payable and accrued liabilities 26,378 7,960
Deferred revenue 4,395 7,145
Compensated absences (1,913) 963
Deposits (1,316) 4,426
Net cash used for operating activities $ (223,263) $ (278,718)

Non cash transactions:

Capital asset acquired by incurring note payable $ 2,800 $ 3,100
Accrued liabilities for construction in progress 7,996 21,349

See accompanying notes to financial statements. 15

UNIVERSITY OF CINCINNATI JUNE 30, 2007

NOTES TO FINANCIAL STATEMENTS

For the Years Ended June 30, 2007and 2006

1. Organization and Summary of Significant Accounting Policies

A) Organization

The University of Cincinnati (the University) was founded in 1819 with the first charter granted by the State of
Ohio in 1870. The University, formerly city owned, became a State University on July 1, 1977. As such, it is
a component unit of the State of Ohio. Under provisions of the Internal Revenue Code, Section 115, and the
applicable income tax regulations of the State of Ohio, the University, as a state institution, is exempt from
taxes on income other than unrelated business income. Since the University has no material net unrelated
business income during the year ended June 30, 2007, no provision for income taxes has been made.

The accompanying financial statements consist of the accounts of the University and the accounts of the
University of Cincinnati Foundation (the Foundation). The Foundation, which is a component unit of the
University in accordance with the provisions of the Governmental Accounting Standards Board (GASB)
Statement 14, The Financial Reporting Entity, is described more fully in Note 16. The Foundation is exempt
from Federal income taxes under the provisions of Internal Revenue Code Section 501(c)(3).

B) Basis of Presentation

The financial statements have been prepared in accordance with accounting principles generally accepted in
the United States of America, as prescribed by the GASB. The University has elected not to apply those
Financial Accounting Standards Board (FASB) pronouncements issued after November 30, 1989.

The University’s financial resources are classified for accounting and reporting purposes into the following three
net asset categories:

Invested in Capital Assets Net of Related Debt—Capital assets, net of accumulated depreciation and
outstanding principal balances of debt attributable to the acquisition, construction or improvement of those
assets.

Restricted—Nonexpendable restricted net assets are subject to externally imposed stipulations that they be
maintained permanently by the University. Such assets include the University’s permanent endowment funds.

Expendable restricted net assets are subject to externally imposed stipulations that can be fulfilled by actions of
the University pursuant to those stipulations or that expire by the passage of time.

Unrestricted—Net assets that are not subject to externally imposed stipulations. Unrestricted net assets may
be designated for specific purposes by action of management or the Board of Trustees or may otherwise be
limited by contractual agreements with outside parties. Substantially all unrestricted net assets are designated
for academic and research programs and initiatives and for capital programs.

C) Summary of Significant Accounting Policies

The accompanying financial statements have been prepared on the accrual basis. The University reports as
a Business Type Activity as defined by GASB Statement No. 35. A Business Type Activity is financed in
whole or in part by fees charged to external parties for goods or services.

Investments in marketable securities (other than the University’s alternative investments) are carried at fair
value as established by the major securities markets (quoted market prices). Investment income is recorded
on the accrual basis. Realized and unrealized gains and losses are reported as nonoperating revenues
(expenses).

16
UNIVERSITY OF CINCINNATI JUNE 30, 2007

The University’s financial statements include alternative investments, such as limited partnerships, that are
not publicly traded. Certain of these alternative investments are carried at estimated fair value provided by
the management of the limited partnerships as of March 31, 2007 and 2006, as adjusted by cash receipts,
cash disbursements and securities distributions through June 30, 2007 and 2006, for an estimated fair value
of $83 million and $78 million respectively. In addition, the University also has alternative investments in
investment funds that are not themselves publicly traded and thus do not have publicly reported market
values, but whose underlying assets consist of publicly traded investments for which fair values are
established by the major securities markets. Such alternative investments are carried at fair value of $354
million and $247 million at June 30, 2007 and 2006. The University believes that the total carrying amount of
its alternative investments valued at $437 million and $325 million at June 30, 2007 and 2006 is a
reasonable estimate of fair value. The University’s outstanding commitment to alternative investments is
$25 million and $31 million as of June 30, 2007 and 2006 respectively.

The University’s investment securities, in general, are exposed to various risks, such as interest rate, credit,
and overall market volatility risks. Due to the level of risk associated with certain investment securities, it is
reasonably possible that changes in the values of investments could occur in the near term and that such
changes could materially affect the investment amounts reported in the accompanying Statement of Net
Assets.

Inventories are held primarily by the central store and are stated at the lower of cost or net realizable market
value. The moving-average basis for all inventories is used to determine inventory cost.

Capital Assets—Land, land improvements, infrastructure, buildings and equipment are recorded at cost at
date of acquisition, or market value at date of donation. The University’s capitalization threshold is $100,000
for major capital projects and $5,000 for all other capitalized items. Interest on related borrowing, net of
interest earnings on invested proceeds, is capitalized during the period of construction. University and
Foundation property and equipment are depreciated using the straight-line method over the estimated useful
lives (from five to fifty years) of the respective assets. When plant assets are sold or disposed of, the
carrying value of such assets and the associated depreciation are removed from the University’s records.

The University does not capitalize works of art or historical treasures that are held for public exhibition,
education or research in furtherance of public service. These collections are neither disposed of for financial
gain nor encumbered in any way. In addition, the University requires the proceeds from the sale of collection
items be used to acquire other collection items. Accordingly, such collections are not recognized or
capitalized for financial statement purposes. All other works of art or historical treasures are capitalized at
historical or fair value at date of donation.

Gift Pledges—The University receives pledges and bequests of financial support from corporations,
foundations and individuals. Revenue is recognized when a pledge representing an unconditional promise
to pay is received and all eligibility requirements, including time requirements, have been met. In the
absence of such promise, revenue is recognized when the gift is received.

Unconditional promises to give that are expected to be collected in future years are recorded at the present
value of the estimated future cash flows. The discounts on these amounts are computed using a discount
rate commensurate with the risks involved. An allowance for uncollectible pledges receivable is provided
based on management’s judgment of potential uncollectible amounts. The determination includes such
factors as prior collection history, type of gift and nature of fundraising.

Deferred Revenue includes amounts received in advance of an event.

Endowment Spending Policy—For donor restricted endowments, the Uniform Management of Institutional
Funds Act permits the University to distribute an amount of realized and unrealized endowment appreciation
as the Board of Trustees determines to be prudent. The University’s policy is to accumulate the
undistributed realized and unrealized appreciation within the endowment, which is discussed in Note 2.

Student Tuition and Residence Fees are presented net of scholarship and fellowship allowances of
$81,510,000 in 2007 and $81,367,000 in 2006 and bad debt provisions of $2,726,000 in 2007 and
$2,955,000 in 2006. Payments made directly to students are presented as scholarship and fellowship
expenses.

Auxiliary Enterprise Revenues primarily represent revenues generated by bookstores, parking, the
conference center, athletics, housing, and dining.

17
UNIVERSITY OF CINCINNATI JUNE 30, 2007

Operating Activities, as reported on the Statement of Revenues, Expenses, and Changes in Net Assets
are those that generally result from exchange transactions such as payments received for providing services
and payments made for services or goods received. Nearly all of the University’s expenses are from
exchange transactions. Certain significant revenue streams relied upon for operations are recorded
as non-operating revenues, as defined by GASB Statement 35, including state appropriations, gifts and
investment income.

Management Estimates—The preparation of financial statements in conformity with accounting principles

generally accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported amounts of revenue and expenditures
during the reporting period. Actual results could differ from those estimates. The use of management’s
estimates relate most significantly to self-insurance reserves.

2. Cash and Investments

Summary—The University maintains centralized management for substantially all of its cash and
investments. With the exception of insurance reserves, charitable remainder trusts, and other trust funds the
terms of which require separate management, the University invests its reserves and relatively short-duration
assets in the Temporary Investment Pool, and invests substantially all of the assets of the University
endowment in the Endowment Investment Pool.

Distributions are made from the University endowment to the University entities that benefit from those
funds. The endowment spending policy provides for an annual distribution of five percent of the twelve-
quarter moving-average market value of endowment units. However, during 2007 and continuing into fiscal
year 2008, a temporary 6% endowment spending policy is in effect.

Authorizations—The Temporary Investment Pool is invested principally in investment-grade money-market

and fixed-income securities. Balances in the Temporary Investment Pool are primarily for operating
expenses or for funding capital projects.

The University investment policies are governed and authorized by University rules. The approved asset
allocation policy for the endowment investments sets a general target of 85 percent equities and 15 percent
fixed-income securities within broader ranges set at the discretion of the Investment Committee.

Diversification is a fundamental risk-management strategy for the endowment portfolio. Accordingly, the
portfolio includes investments in domestic and non-U.S. stocks, bonds and bond-like loans; real estate; and
limited partnerships consisting of venture capital, private equity and real estate.

Off-Balance-Sheet Risk—The University’s investment strategy incorporates certain financial instruments

which involve, to varying degrees, elements of market risk and credit risk in excess of amounts recorded in
the financial statements. Market risk is the potential for changes in the value of financial instruments due to
market changes, including interest and foreign exchange rate movements and fluctuations embodied in
forward, futures, and commodity or security prices. Market risk is directly impacted by the volatility and
liquidity of the markets in which the related underlying assets are traded. Credit risk is the possibility that a
loss may occur due to the failure of a counterparty to perform according to the terms of the contract. The
University’s risk of loss in the event of counterparty default is typically limited to the amounts recognized in
the Statement of Net Assets and is not represented by the contract or notional amounts of the instruments.

Cash and Cash Equivalents—The University considers all highly liquid investments purchased with an
original maturity of three months or less to be cash equivalents. At June 30, 2007, the carrying amount of
the University’s cash and cash equivalents for all funds is $90,075,000 as compared to bank balances of
$104,360,000. The difference between the carrying amount and the bank balances is caused primarily by
deposits in transit and outstanding checks.

Of the University’s bank balances, $454,000 is covered by federal depository insurance; mutual funds hold
cash equivalents of $34,164,000; $69,483,000 is in public funds collateralized pools; and the balance of
$259,000 is uncollateralized. The University does not have a policy for custodial credit risk.

18
UNIVERSITY OF CINCINNATI JUNE 30, 2007

Investments — The fair value of University investments at June 30 is (in thousands):

2007 2006
U. S. government securities $ 38,896 $ 45,564
Corporate notes and bonds 41,052 20,071
Corporate stocks 267,934 272,812
Mutual funds 523,885 426,864
Other securities 75,216 109,870
Real estate 12,687 12,749
Total investments 959,670 887,930
Less current investments 11,097 10,969
Non current investments $948,573 $876,961

Alternate Investments (please refer to Note 1-C, Summary of Significant Accounting Policies, regarding
valuation of alternative investments) of $437 million are included within mutual funds and other securities in
the summary schedule of investments above.

At June 30, 2007 and 2006, other securities included $81,045,000 and $104,471,000, net of $14,534,000
and $0 of loan loss reserves, respectively, of loans made to certain nonprofit entities for the purpose of
developing residential and commercial facilities on the borders of the campus. Currently, these loans are
secured primarily by mortgages on parcels of land purchased by these nonprofit entities. Some of these
mortgages are subordinated to external financing arranged by these entities. These loans bear interest at
6%. The University expects repayment once the residential and commercial facilities have streams of rental
income. Loan loss reserves are estimated based on aggregate cash flows projections for the projects and
independent appraisals of the underlying undeveloped real estate. The loan loss reserves are reflected in
non-operating revenues (expenses), as a component of the increase in fair value of investments.

The University has recorded the investments in the table above in the following categories: $44,260,000 of
investments and $915,410,000 of endowment investments. Also, included in endowment investments as
reported on the Statement of Net Assets are $268,272,000 invested predominately in equities held in donor-
stipulated irrevocable trusts.

GASB Statement 40 requires government entities to categorize investments by interest rate risk, credit risk,
and custodial credit risk.

Interest Rate Risk – The University’s investments total $959,670,000. The segmented time distribution
method is used to portray interest rate risk of $246,063,000 of bond and other fixed income investments.
Investments for the years ended June 30, 2007 and 2006 is summarized as follows (in thousands):

Investment Maturities (In Years) 2007

Investment Type Fair Value Less than 1 1-5 6-10 More than 10

US Treasury $ 3,517 - - $ 1,100 $ 2,417

Obligations
US Government 31,170 3,740 12,617 2,750 12,063
Agencies
US Treasury 4,209 828 3,381 - -
STRIPS
US Treasury 42,503 - - 42,503 -
Mutual Fund
Corporate Bonds 41,052 7,495 14,510 5,012 14,035
and Notes
Bond Mutual 53,193 - 17,862 35,331 -
Funds
Local mortgage 66,511 - - - 66,511
secured loans
Other 3,908 367 1,835 551 1,155
Total $246,063 $12,430 $50,205 $87,247 $ 96,181

19
UNIVERSITY OF CINCINNATI JUNE 30, 2007

Investment Maturities (In Years) 2006

Investment Type Fair Value Less than 1 1-5 6-10 More than 10

US Treasury $ 15,322 $ 5,054 $ 3,835 $ 2,719 $ 3,714

Obligations
US Government 25,443 5,056 10,205 7 10,175
Agencies
US Treasury 4,799 828 3,506 465 -
STRIPS
Corporate Bonds 20,071 1,216 15,357 3,498 -
and Notes
Bond Mutual 28,592 - 17,833 10,759 -
Funds
Local mortgage 105,011 - 540 - 104,471
secured loans
Other 3,935 367 1,468 1,285 815
Total $203,173 $12,521 $52,744 $18,733 $119,175

The University’s investment policy stipulates that the weighted average maturity of investments in the
Temporary Investment Pool shall be no longer than 5 years. The weighted average of fixed income
maturities in the Endowment portfolio shall not exceed 20 years.

Credit Risk - The Temporary Investment Pool permits investments in securities rated A or higher at the time
of purchase. Securities which are downgraded below an A rating after purchase are permitted to be
retained. Endowment investment-grade bonds are limited to those in the first four grades of any rating
system. Below-investment grade high yield bond investments and certain unrated investments having
strategic value to the University are permitted. In accordance with the University’s investment policy, the
University’s $246,063,000 bond and other fixed income investments are rated by nationally recognized rating
organizations as follows as of June 30 (in thousands):

Rating 2007 2006

US Treasury Obligations – equivalent of AAA $ 46,019 $ 15,322
AAA 35,379 48,075
AA 55,693 2,469
A 27,500 14,566
BBB 11,053 13,794
BB - -
Not Rated 70,419 108,947
Total $246,063 $203,173

Custodial Credit Risk – Of the University’s $959,670,000 total investments, $918,292,000 are uninsured,
not registered in the name of the University, and are held by trust departments or agents in the University’s
name, and thus are exposed to custodial credit risk. The University does not have a policy for custodial
credit risk.

University Investment Pools—Of the University investments, approximately $50,055,000 are separately
invested by donor stipulation. The remaining funds are invested in one of three pools. The Temporary
Investment Pool represents the investment of substantially all University cash not otherwise invested in the
endowment.

The Endowment Investment Pool A is the principal investment pool for the University endowments that may be
pooled legally or by donor concurrence. The University employs the share method of accounting for the
Endowment Investment Pool A investments and for proportionate distribution of income to each fund that
participates in the pool. At June 30, 2007, the Endowment Investment Pool A consisted of 7,388,000 shares.
Effective July 1, 2002, substantially all endowments held in trust, by donor stipulation, by the University of
Cincinnati Foundation were invested in the University's Endowment Investment Pool A. At June 30, 2007, such
endowments own 1,695,000 pool shares with a market value of $203,105,000, equating to approximately

20
UNIVERSITY OF CINCINNATI JUNE 30, 2007

23% of the Endowment Investment Pool A. The Endowment Investment Pool B comprises real estate holdings
received by bequest.

The following tabulation summarizes the changes in relationships between cost and fair values of the
Endowment Investment Pool A assets for the year (in thousands):

Net Fair Value

Gains/ Gain/(Loss)
Net Cost Fair Value (Losses) Per Share

End of year $755,216 $866,935 $111,719 $117.34

Beginning of year 717,968 818,001 100,033 108.28

Unrealized net gain/(loss) for year 11,686

Realized net gain/(loss) for year 43,510

Total net gain/(loss) for year $ 55,196 $ 9.06

The University has adopted a spending rate policy which limits the distribution of endowment income earned in
the investment pool to five percent of the moving-average market value for the twelve-quarter period ending
each December. For FY07 and 08, the spending policy has temporarily been increased to 6%. During 2007,
income earned was approximately $20,856,000 less than the amount allocated for spending. In accordance
with the Ohio Uniform Management of Institutional Funds Act, the cumulative shortfall of $149,921,000 as of
June 30, 2007, is funded by capital appreciation of the investment pool.

Income allocated for spending during 2007 amounted to $5.88 per share of the Endowment Investment Pool A.
The average annual earnings per share, exclusive of capital appreciation, amounted to $1.28.

3. Accounts, Pledges and Notes Receivable

Accounts, pledges and notes receivable as of June 30, are as follows (in thousands):

2007 2006
Accounts receivable $ 51,971 $50,247
Pledges receivable 12,388 18,023
Notes receivable 32,489 33,339
Accrued interest receivable 6,436 13,357
Total 103,284 114,966
Less current receivables 49,927 59,901
Noncurrent receivables $ 53,357 $55,065

Allowances for uncollectible receivables have been provided in the amount of approximately $6,926,000 and
$7,105,000 for accounts receivable, $827,000 and $1,169,000 for pledges receivable, $4,903,000 and
$4,749,000 for notes receivable as of June 30, 2007 and 2006, respectively.

An allowance for uncollectible accrued interest receivable has been provided in the amount of approximately
$10,439,000 and $0 related to loans made to certain nonprofit entities as of June 30, 2007 and 2006
respectively (see note #2).

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

Pledges have been discounted at a rate of four percent to net present value, which approximates the fair
value of the receivables as follows (in thousands):

2007 2006
Less than one year $ 2,712 $ 3,589
One to five years 5,899 9,061
More than five years 4,604 6,542
Subtotal 13,215 19,192
Less allowance for uncollectible pledges 827 1,169
Total $12,388 $18,023

Pledges receivable due from one donor approximated 45% and 38% of total pledges receivable, as of June
30, 2007 and 2006, respectively.

4. Capital Assets
Capital assets activity for the years ended June 30, 2007 and 2006 is summarized as follows (in thousands):

Balance Retirements/ Balance

July 1, 2006 Additions Transfers June 30, 2007
Land $ 21,923 $ - $ - $ 21,923
Land improvement 78,014 - 3,615 81,629
Buildings 1,531,770 - 64,852 1,596,622
Construction in progress 141,295 131,735 (96,365) 176,665
Infrastructure 89,668 - 6,685 96,353
Building equipment 15,193 - - 15,193
Moveable equipment 145,846 9,895 (2,742) 152,999
Computer Software 28,747 200 5,993 34,940
Books 131,684 8,671 386 140,741
Art objects 4,356 18 (10) 4,364
Total Assets 2,188,496 150,519 (17,586) 2,321,429
Less accumulated depreciation 768,017 87,360 (4,691) 850,686
Net Assets $1,420,479 $ 63,159 $ (12,895) $1,470,743

Balance Retirements/ Balance

July 1, 2005 Additions Transfers June 30, 2006
Land $ 21,305 $ 618 $ - $ 21,923
Land improvement 34,752 - 43,262 78,014
Buildings 1,313,888 19 217,863 1,531,770
Construction in progress 295,625 158,037 (312,367) 141,295
Infrastructure 78,399 - 11,269 89,668
Building equipment 15,167 - 26 15,193
Moveable equipment 136,867 12,775 (3,796) 145,846
Computer Software 162 - 28,585 28,747
Books 133,718 9,087 (11,121) 131,684
Art objects 4,469 30 (143) 4,356
Total Assets 2,034,352 180,566 (26,422) 2,188,496
Less accumulated depreciation 704,180 79,096 (15,259) 768,017
Net Assets $1,330,172 $101,470 $ (11,163) $1,420,479

22
UNIVERSITY OF CINCINNATI JUNE 30, 2007

5. Accounts Payable and Accrued Liabilities

Accounts payable and the current portion of accrued liabilities as of June 30, 2007 and 2006 are as follows
(in thousands):

2007 2006
Compensated absences (Current portion) $ 33,941 $ 35,428
Compensation 32,237 40,177
Accrued liabilities 59,018 30,022
Vendors payable 32,818 42,748

Total $158,014 $148,375

6. Compensated Absences

University employees earn vacation and sick leave on a monthly basis. Vacation benefits may be accrued
up to a maximum of three years’ credit, and earned but unused days are payable upon termination. Sick
leave may be accrued without limit; however, earned but unused days are payable only upon retirement
from the University, subject to 30- or 60-day limits depending upon the date of hire. The liability for the
costs of such benefits approximated $64,108,000 and $66,021,000 as of June 30, 2007 and 2006,
respectively.

7. Bonds and Notes Payable

Bonds and notes payable at June 30, comprise the following (in thousands):

Maturity
Issue Dates Interest Outstanding Debt
Bond Series – Fixed Rate Debt Date Through Rate 2007 2006
R-11, T, X, Y, AA, AG, AH, AI 1998 2018 3.70-5.50% $ 15,855 $ 21,125
Z, AC 1997 2012 4.15-5.15% 2,705 3,435
AB 1997 2007 4.40-5.10% - 170
AD 1997 2010 4.65-5.05% 1,820 2,665
AL, AM, AN 1998 2018 3.45-4.75% 4,555 4,910
AL-1, AO 1999 2013 4.20-5.50% 4,670 5,320
AQ, AT, AU, AV, AZ 2000 2020 4.60-5.50% 3,145 5,150
2001A 2001 2031 3.60-5.50% 112,775 144,275
2002A 2002 2022 2.25-4.875% 4,710 4,935
2002D 2002 2022 2.40-5.00% 3,665 3,975
2002F 2003 2024 2.50-5.375% 28,370 42,995
2002G 2003 2031 1.80-5.00% 12,250 13,415
2003C 2003 2026 3.00-5.00% 73,940 78,540
2004A 2004 2031 2.00-5.00% 63,405 64,435
2004D 2004 2026 2.00-5.00% 50,050 50,985
2004E 2005 2021 2.25-5.00% 22,505 23,740
2005A 2005 2020 3.10-5.00% 69,410 69,410
2005D 2006 2019 4.00-5.00% 20,410 20,410
2006A 2006 2031 3.50-5.00% 54,075 54,870
2007A 2007 2031 3.55-5.00% 78,445 -

Total bonds payable – fixed rate debt $626,760 $614,760

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

Weighted
Average
Bond Series – Variable Rate Debt Interest Rate
2004B – Auction Mode 2004 2031 2.60% $ 40,000 $ 40,000

2004B – Weekly Mode 2004 2031 2.63% 101,295 103,755

2004B – Weekly Mode 2007 2020 3.72% 39,955 -

Total bonds payable – variable rate

debt 181,250 143,755

Total bonds payable $808,010 $758,515

Maturity
Notes Payable and Issue Dates Interest Outstanding Debt
Other Debt ___ Date Through Rate 2007 2006
General Receipts Bond
Anticipation Notes:
2006B January 2006 January 2007 4.50% $ - $ 40,000
2006C March 2006 March 2007 4.50% - 41,065
2006D July 2006 July 2007 4.75% 20,025 -
2006E August 2006 July 2007 4.75% 15,000 -
2007C January 2007 January 2008 4.50% 28,000 -
2007D March 2007 October 2007 3.73% 32,810 -
Certificates of Participation—Center
For Information Technology 1993 2008 2.40-5.50% 90 180
Capital Lease Obligations
University Center 1996 2011 4.125-5.10% 14,055 16,570
Edwards Center 1998 2011 4.00-5.75% 10,445 12,215
Residence Halls 2000 2028 4.40-5.50% 39,500 40,540
University Center Refunding 2005 2024 3.50-5.00% 52,815 52,815
Capital lease-Stetson July 2006 June 2033 4.25-5.97% 32,745 -
Capital lease-Turner July 2006 June 2033 4.00-5.25% 9,955 -
Loans payable-equipment 2003 2014 3.58-4.69% 6,439 4,616
Total notes payable and other debt 261,879 208,001
Total bonds and notes payable and other debt 1,069,889 966,516
Plus discounts/premiums/loss on refunding 4,444 2,951
Total bonds and notes payable and other debt, net $1,074,333 $969,467

A) Debt Issuances and Permanent Fundings

General Receipt Bonds-Fixed Rate Debt – During the year ended June 30, 2007, the University issued
one general receipt fixed rate bond series totaling $78,445,000 that bears interest at rates ranging from
3.55% to 5.00% and matures in 2031. The proceeds were used to refund portions of Series X, Y, AT, AV,
AZ, 2001A and 2002F bonds; refund a portion of Series 2006B BANS; to pay associated bond issue costs
and to finance all or a portion of the costs of the following projects: MSB Rehabilitation/CARE/Eden Quad,
Varsity Village, Jefferson Grid, and two suspended projects, along with the associated bond issue costs and
capitalized interest.

The refunded Series X bonds had been issued to finance a portion of the Sigma Sigma Commons project
and will be called June 2008; the refunded Series Y bonds had been issued to finance a portion of the Vontz
Center for Molecular Studies Plaza and will be called June 2008; the refunded Series AT bonds had been

24
UNIVERSITY OF CINCINNATI JUNE 30, 2007

issued to fund a portion of a laboratory for use by the Foundation of the Research Laboratory of the Tanner’s
Council and will be called June 2010; the refunded Series AV bonds had been issued to fund a portion of the
construction of a new facility at the University’s Center Hill site and will be called June 2010; the refunded
Series AZ bonds had been issued to ultimately finance a portion of the University Pavilion and will be called
June 2010; the refunded Series 2001A bonds had been issued to finance a portion of the MainStreet project
and several large utility projects and will be called June 2011; and the refunded Series 2002F bonds had
been issued to finance the rehabilitation of the Genome Research Center and the construction of a
powerhouse at Genome and will be called June 2012.

General Receipt Bonds-Variable Rate Debt – During the year ended June 30, 2007, the University issued
an additional general receipt variable rate bond series, totaling $39,955,000. Series 2007B was issued
January 24, 2007, in a weekly reset mode and matures in 2020. The proceeds were used to current refund
a portion of Series 2006B BANS for Varsity Village Gift Bridging, to current refund a portion of Series 2006C
BANS for CCM and Gettler Stadium Gift Bridging and to fund a portion of the MSB
Rehabilitation/CARE/Eden Quad project in advance of biennium 2011/2012 state funding.

The initial interest rate for the Series 2007B – weekly reset mode bonds was 3.60%. The interest rate for the
weekly mode bonds resets every week, with interest due the first business day of each calendar month.
Interest paid to date has been based on weekly rates that have fluctuated from a low of 3.54% to a high of
3.96%. The maximum interest rate on the weekly reset mode bonds is 12%. The University has entered
into a standby bond purchase agreement with a liquidity provider for Series 2007B weekly reset mode
bonds. Series 2007B weekly rate bondholders may tender any of these bonds for repurchase every seven
days. Any bonds so tendered will be purchased either by the proceeds of the remarketing of such bonds or,
if not successfully remarketed, by the liquidity provider. Accordingly, the University has classified the
outstanding principal balance on its weekly reset mode bonds that matures after June 30, 2008 as a long-
term liability. As of June 30, 2007, there has not been a failed remarketing for the weekly reset mode
variable rate bonds.

The University issued general receipt variable rate bonds, Series 2004B in 2004. The initial interest rate for
the Series 2004B – auction rate reset mode was .85%. Auction rate bonds call for the interest rate to be
reset and paid every 35 days. Interest paid to date has been based on rates that have fluctuated from a low
of .85% to a high of 3.90%. The maximum interest rate on the auction rate bonds is 12%. Series 2004B
auction rate bonds do not have a permanent put feature. The University does not have an obligation to
purchase any Series 2004B auction rate bonds that a holder wishes to sell on an auction date, or to
purchase any Series 2004B auction rate bonds that a holder has tendered for purchase on a mandatory
tender date in connection with a change in mode. Accordingly, the University has classified the outstanding
principal balance on its auction rate bonds that matures after June 30, 2008 as long-term liability.

The initial interest rate for the Series 2004B – weekly reset mode bonds was .92%. The interest rate for the
weekly mode bonds resets every week, with interest due the first business day of each calendar month.
Interest paid to date has been based on weekly rates that have fluctuated from a low of .87% to a high of
3.9%. The maximum interest rate on the weekly reset mode bonds is 12%. The University has entered into
a standby bond purchase agreement with a liquidity provider for Series 2004B weekly reset mode bonds.
Series 2004B weekly rate bondholders may tender any of these bonds for repurchase every seven days.
Any bonds so tendered will be purchased either by the proceeds of the remarketing of such bonds or, if not
successfully remarketed, by the liquidity provider. Accordingly, the University has classified the outstanding
principal balance on its weekly reset mode bonds that matures after June 30, 2008 as a long-term liability.
As of June 30, 2007, there has not been a failed remarketing for the weekly reset mode variable rate bonds.

The University has the option to convert the variable rate bonds from one rate mode to another, as well as
the option to redeem these bonds in whole or in part. The University’s variable rate bonds mature at various
dates, beginning in fiscal year 2007 through 2031. It is the University’s intent to repay its variable rate bonds
in accordance with the maturities set forth in the bond offering circulars.

Bond Anticipation Notes – During the year ended June 30, 2007, the University issued the following Bond
Anticipation Notes: Series 2006D for $20,025,000, issued in advance of biennium 2009/2010 state funding to
fund a portion of the MSB Rehabilitation/CARE/Eden Quad project and various construction and renovation
projects; Series 2006E for $15,000,000, issued to fund Early Project Expenditures for various construction
and renovation projects; Series 2007C for $28,000,000, issued to refinance existing bond anticipation notes
(a portion of Series 2006B and Series 2006C) as well as fund a portion of the Teacher’s College/Dyer Hall
Rehabilitation Phase II project in advance of biennium 2009/2010 state funding, and to fund additional Early
Project Expenditures for various construction and renovation projects; and Series 2007D for $32,810,000

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

issued to refinance existing bond anticipation notes (a portion of Series 2006C). Series 2006B bond
anticipation notes were retired on January 25, 2007 and Series 2006C bond anticipation notes were retired
on March 28, 2007. Series 2006D, 2006E, 2007C and 2007D notes are currently outstanding; Series 2006D
and 2006E each bear interest at a rate of 4.75%; Series 2007C bears interest at a rate of 4.50% and Series
2007D bears interest at a rate of 3.73%.

Loans Payable for Equipment – During the year ended June 30, 2007, the University borrowed
$2,800,000, at an interest rate of 4.69%, for the purchase of university-wide data network equipment. All of
the outstanding loans for equipment bear interest rates between 3.58% and 4.69%.

Capital Leases for Stetson and Turner – During the year ended June 30, 2007, the University entered into
two capital lease agreements in connection with the financing of two buildings (One Stetson Square and the
Turner Center) which are owned by King Highland Community Urban Redevelopment Corporation and will
be occupied, all or in part, by the University. The One Stetson Square lease totaling $32,745,000 bears
interest at rates ranging from 4.25% to 5.9% and matures in 2033. The Turner Center lease totaling
$9,955,000 bears interest at rates ranging from 4.00% to 5.25% and matures in 2033.

B) Defeasance

General Receipts Bonds—Series 2007A general receipt bonds were issued January 23, 2007 in the
amount of $78,445,000. A portion of the Series 2007A bonds, $985,000, was issued for the purpose of
advance refunding $1,000,000 of the outstanding Series X general receipts bonds, stated to mature on June
1, 2013 through June 1, 2018. Another portion of the Series 2007A bonds, $1,620,000, was issued for the
purpose of advance refunding $1,645,000 of the outstanding Series Y general receipts bonds, stated to
mature on June 1, 2013 through June 1, 2018. Further, $330,000 of the Series 2007A bonds was issued for
the purpose of advance refunding $325,000 of the outstanding Series AT general receipts bonds, stated to
mature on June 1, 2014 through June 1, 2020. Another, $370,000 of the Series 2007A bonds was issued for
the purpose of advance refunding $365,000 of the outstanding Series AV general receipts bonds, stated to
mature on June 1, 2014 through June 1, 2020. In addition, $855,000 of the Series 2007A bonds was issued
for the purpose of advance refunding $850,000 of the outstanding Series AZ general receipts bonds, stated
to mature on June 1, 2014 through June 1, 2020. Another, $23,905,000 of the Series 2007A bonds was
issued for the purpose of advance refunding $24,030,000 of the outstanding Series 2001A general receipts
bonds, stated to mature on June 1, 2022 through June 1, 2024. Finally, $12,935,000 of the Series 2007A
bonds was issued for the purpose of advance refunding $13,010,000 of the outstanding Series 2002F
general receipts bonds, stated to mature on June 1, 2016 through June 1, 2020. The purpose of the
refunding was to reduce future debt service payments. Net proceeds of $43,886,000 were used to purchase
United States government securities that were placed in irrevocable trust with an escrow agent to provide for
all future debt service payments on the advance refunded Series X, Y, AT, AV, AZ, 2001A and 2002F
general receipts bonds. The economic gain (difference between the present value of the old and new debt
service payments) to the University will be $1,966,000. As a result of the refunding, $2,755,000 has been
recorded as Deferred Loss on Refunding and will be amortized from 2007 through 2024. The deferred loss
on refunding reflects the difference between the refunding reacquisition price for the respective portion of
Series 2007A and the net carrying amount of the outstanding principal balances of the refunded debt issues.

C) Collateralization and Debt Reserves

The general receipts bonds and general receipts bond anticipation notes are collateralized by a pledge of
general receipts of the University. The certificates of participation are collateralized by the capital assets
purchased under the respective financing agreements and by certain insurance covering repayment of the
proceeds. Loans Payable – Equipment is collateralized by specified equipment. Loans Payable - Office and
Classroom Capital Leases are not collateralized. At June 30, 2007, the required debt service reserve amounted
to $8,679,000. As provided for in the Amended and Restated Trust Agreement, this reserve is solely for the
payment of debt service charges on the pre-amended bonds, with the exception that excess amounts may be
transferred pursuant to Section 4.03 of the Amended and Restated Trust Agreement.

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

D) Debt Service Commitments

For bonds and notes payable at June 30, 2007, scheduled annual debt service payments subsequent to
June 30, 2007 are as follows (in thousands):

Fiscal
Year Principal Interest Total
2008 $130,815 $ 39,868 $ 170,683
2009 30,170 35,016 65,186
2010 30,920 33,768 64,688
2011 34,660 32,414 67,074
2012 36,495 30,951 67,446
2013-2017 201,975 129,601 331,576
2018-2022 199,370 81,045 280,415
2023-2027 150,395 39,715 190,110
2028-2031 89,135 9,477 98,612

Total $903,935 $431,855 $1,335,790

The University has $181.3 million of variable rate bonds. $141.3 million of this variable rate debt bears interest that is
reset weekly based on the market with a maximum rate of 12% per year. $40 million of the variable rate debt bears
interest that is reset every 35 days based on an auction rate, subject to a maximum of 12% per year. The interest
rate used to determine future interest payments in the debt service repayment table above is the rate in effect at July
1, 2007 as follows: 3.74% for the 2004B variable weekly rate, 3.75% for the 2007B variable weekly rate and 3.75%
for the variable 35-day rate. Series 2004B variable rate bonds were issued in February 2004 and since the date of
issuance, the variable weekly rate has ranged from .87% to 3.97% and the variable 35-day rate has ranged from
.85% to 3.90%. Series 2007B variable rate bonds were issued in January 2007 and since the date of issuance, the
variable weekly rate has ranged from 3.54% to 3.96%.

Scheduled principal and interest payments on capital lease obligations and loans payable subsequent to June 30,
2007 are (in thousands):

Fiscal
Year Principal Interest Total
2008 $ 7,161 $ 8,118 $ 15,279
2009 8,795 8,005 16,800
2010 8,825 7,562 16,387
2011 8,199 7,111 15,310
2012 7,701 6,674 14,375
2013-2017 36,148 27,970 64,118
2018-2022 35,895 19,131 55,026
2023-2027 32,600 9,683 42,283
2028-2032 17,315 3,209 20,524
2033 3,315 166 3,481

Total $165,954 $97,629 $263,583

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

E) Defeased Debt

Debt defeased by the University for which amounts remain outstanding at June 30, 2007, are (in thousands):

Maturity Interest Amount

Bond Series Dates Rate(s) Outstanding

Residence Hall and Dining

Facility Bonds:
Series F 1972-2009 5.00-6.00% 1,270
General Receipts Bonds:
Series T 2014-2018 5.00% 9,460
Series X 2013-2018 4.85-5.00% 1,000
Series Y 2013-2018 4.85-5.00% 1,645
Series AA 2014-2018 5.00% 3,610
Series AL-1 2014-2019 5.60-5.75% 2,140
Series AO 2014-2019 5.60-5.75% 4,285
Series AT 2014-2020 5.50-5.75% 325
Series AV 2014-2020 5.50-5.75% 365
Series AZ 2014-2020 5.50-5.75% 850
Series 2001A 2015-2019 5.75% 29,245
Series 2001A 2022-2024 5.25% 24,030
Series 2002F 2016-2020 5.375% 13,010

Total $91,235

Neither the outstanding indebtedness nor the related trust accounts are reflected in the accompanying
financial statements for the fully defeased bonds listed above. United States Treasury obligations in an
amount sufficient to pay principal and interest on the defeased obligations, when due, have been deposited
with a trustee in accordance with the defeasance of the debt.

F) Other

Subsequent to June 30, 2007, the University has issued $40.5 million in Series 2007E BANS to refinance
existing bond anticipation notes (Series 2006D and 2006E) as well as to fund all or a portion of the costs of
the following projects that were initially funded with Early Project Expenditure proceeds: Zimmer Auditorium,
Jefferson Quad and the remaining five suspended projects. In addition, the University has issued $32.8
million in Series 2007F BANS to refinance existing bond anticipation notes (Series 2007D) that mature
October 1, 2007.

Interest expense incurred on indebtedness for the years ended June 30, 2007 and 2006, is $40,245,000 and
$31,005,000 respectively. In 2007, interest expense on construction-related debt of $5,727,000, net of
$2,125,000 interest earned on invested funds, was capitalized. In 2006, interest expense on construction-
related debt of $9,615,000, net of $2,204,000 interest earned on invested funds, was capitalized.

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

G) Long-Term Liability

Long-term liabilities as of June 30, 2007 and 2006 are as follows (in thousands):

Year Ended June 30, 2007

Balance Balance Current Noncurrent
July 1, 2006 Additions Reductions June 30,2007 Portion Portion

Bonds, notes and capital leases:

Bonds and notes payable $ 839,580 $214,235 $149,970 $903,845 $130,725 $773,120
Certificates of participation 180 - 90 90 90 -
Loans payable-equipment 4,616 2,800 977 6,439 1,371 5,068
Capital lease obligations 122,140 - 5,325 116,815 5,790 111,025
Capital Leases - 42,700 - 42,700 - 42,700
Issue costs, premiums
and discounts 2,951 7,750 6,257 4,444 ___835 3,609
Total bonds, notes and
capital leases 969,467 267,485 162,619 1,074,333 138,811 935,522
Other long-term liabilities:
Compensated absences 66,021 1,181 3,094 64,108 33,941 30,167
Refundable advances,
federal loans 25,987 324 - 26,311 - 26,311
Other Liability 1,814 - 427 1,387 500 887
Deposits held in trust for others 9,187 80,176 79,286 10,077 - 10,077
Total other long-term liabilities 103,009 81,681 82,807 101,883 34,441 67,442
Total $1,072,476 $349,166 $245,426 $1,176,216 $173,252 $1,002,964

Year Ended June 30, 2006

Balance Balance Current Noncurrent
July 1, 2005 Additions Reductions June 30,2006 Portion Portion

Bonds, notes and capital leases:

Bonds and notes payable $748,201 $156,345 $ 64,966 $839,580 $108,745 $730,835
Certificates of participation 270 - 90 180 90 90
Loans payable-equipment 2,182 3,100 666 4,616 978 3,638
Capital lease obligations 126,800 - 4,660 122,140 5,325 116,815
Issue costs, premiums
and discounts 1,804 5,400 4,253 2,951 ___863 2,088
Total bonds, notes and
capital leases 879,257 164,845 74,635 969,467 116,001 853,466
Other long-term liabilities:
Compensated absences 65,057 1,657 693 66,021 35,428 30,593
Refundable advances,
federal loans 25,895 167 75 25,987 - 25,987
Other Liability 2,226 - 412 1,814 427 1,387
Deposits held in trust for others 4,768 88,938 84,519 9,187 - 9,187
Total other long-term liabilities 97,946 90,762 85,699 103,009 35,855 67,154

Total $977,203 $255,607 $160,334 $1,072,476 $ 151,856 $920,620

8. State Support
The University is a state-assisted institution of higher education and receives from the State of Ohio a state
share of instruction that is student-enrollment based. This subsidy is determined annually by the Ohio Board
of Regents. The State also provides line-item appropriations that support, in part, the current operations of
various activities including clinical teaching expenditures.

In addition to the operating subsidies, the State of Ohio provides funding for and constructs major plant
facilities on the University’s campuses. The state passes a capital-appropriations bill biannually for both
major capital projects and basic renovation projects of which the University receives a share. Such facilities
are reported as capital assets on the Statement of Net Assets.

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UNIVERSITY OF CINCINNATI JUNE 30, 2007

9. Retirement Plans and Other Post Employment Benefits

A) Public Employee Retirement Plans

Retirement benefits are available for substantially all employees under one of several contributory retirement
plans. Prior to July 1, 1977, when the University became a state institution, employees were covered by
either the City of Cincinnati Retirement System (CRS) or the Teachers’ Insurance and Annuity Association -
College Retirement Equities Fund (TIAA-CREF). Certified teachers appointed on or after July 1, 1977, are
covered by the State Teachers’ Retirement System (STRS). Non-certified employees appointed on or after
that date are covered by the Public Employees Retirement System (PERS). Both STRS and PERS are
statewide systems.

The PERS, STRS and CRS plans are cost-sharing, multiple-employer, defined-benefit, public-employee
retirement systems. Each provides retirement, disability and death benefits to plan members and
beneficiaries. These plans also provide health-care benefits to vested retirees. Benefits provided under the
plans are established by State statute or the Cincinnati Municipal Code.

All three plans issue separate, publicly available financial reports that include financial statements and
required supplementary information. These reports may be obtained by contacting each system as follows:
Public Employee Retirement System of Ohio, 277 East Town Street, Columbus, Ohio 43215, Telephone
(614) 466-2085; State Teachers Retirement System of Ohio, 275 East Broad Street, Columbus, Ohio 43215,
Telephone (614) 227-4090; and City of Cincinnati Retirement System, 801 Plum Street, Cincinnati, Ohio
45202, Telephone (513) 352-3227.

The Ohio Revised Code and the Cincinnati Municipal Code provide PERS, STRS and CRS statutory
authority, respectively, over employer and employee contributions. The required, actuarially determined
contribution rates for the University and for employees are 13.77% (5.00% relating to health-care benefits)
and 9.5% of covered payroll, respectively, for PERS; 14% (1% relating to health-care benefits) and 10%,
respectively, for STRS; and 17% and 7%, respectively, for CRS for the year ended June 30, 2007. The
University’s contributions, representing 100% of employer contributions for the year ended June 30, 2007,
and for each of the two preceding years are as follows (in thousands):

Fiscal Year PERS $ STRS $ CRS $

2005 18,217 15,404 417
2006 19,811 16,417 361
2007 20,318 17,618 506

PERS and STRS provide postretirement and postemployment health-care benefits in addition to the
retirement benefits described above. PERS Other Post Employment Benefits (OPEB) is advance funded on
an actuarially determined basis. The assumptions and calculation below were based on the system’s latest
actuarial review performed as of December 31, 2005. An entry-age normal actuarial-cost method of
valuation is used in determining the present value. The difference between assumed and actual experience
(actuarial gains and losses) becomes part of unfunded actuarial accrued liability. All investments are carried
at market value. For valuation purposes, a smoothed market approach is used. Under this approach assets
are adjusted annually to reflect 25% of unrealized market appreciation or depreciation on investment assets
not to exceed a 12% corridor. The actuaries’ assumptions were as follows: investment return, 6.5%; annual
wage increase (compounded annually), 4%; and health care costs, 4%. At December 31, 2005, the actuarial
value of the Retirement System’s net assets available for OPEB was $11.1 billion. The actuarially accrued
liability and the unfunded actuarial accrued liability, based on the actuarial cost method used, were $31.3
billion and $20.2 billion, respectively. There are 369,214 active contributing participants. Of the
$20,318,000 University employer contributions to PERS for 2007, $7,378,000 was to fund OPEB.

STRS has discretionary authority, pursuant to the Ohio Revised Code, over how much, if any, of the health-
care costs will be absorbed by STRS. All benefit recipients are required to pay a portion of the health-care
cost in the form of a monthly premium. The balance in the Health Care Reserve Fund was $3.5 billion at
June 30, 2006 (the latest information available). For the year ended June 30, 2006, the net health-care
costs paid by STRS were $282,743,000. There were 119,184 eligible benefit recipients.
In addition to the pension benefits described above, the University provides postretirement health-care and
dental benefits (under its labor agreement with the American Association of University Professors) to all who

30
UNIVERSITY OF CINCINNATI JUNE 30, 2007

are participants of TIAA-CREF when they retire. During 2007, 2006, and 2005 the net cost of these benefits
recorded on a pay-as-you-go basis totaled approximately $2,961,000, $2,945,000, and $2,972,000
respectively.

B) Ohio Alternative Retirement Plan

On June 23, 1998, pursuant to Ohio House Bill 586, the University created an Ohio Alternative Retirement
Plan (ARP), which is designed to aid the University in recruiting and retaining employees by offering a
portable retirement option. The ARP is a defined-contribution plan that provides full and immediate vesting
of all contributions made on behalf of the participant. Contributions are directed to one of eight investment
management companies, which allows the participant to manage the investment of all retirement funds.
New employees who qualify for the ARP have 90 days from the date of hire to elect the ARP option. Once
this window has passed, the employee will not have the option to elect into the ARP.

At June 30, 2007, there were 1,901 members of the plan. During 2007, 2006, and 2005 the employer
contributions were $13,418,000, $11,310,000, and $10,349,000 respectively. The employer contribution rate
was 12% for participants electing out of PERS during fiscal year 2006. Effective January 1, 2007 the
employer contribution rate increased to 13.77%. The employer contribution rate for participants electing out
of STRS was 14.00% for 2007 and 12% for 2006.

10. 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):

2007 2006
Restricted nonexpendable:
Instruction $ 159,293 $ 145,004
Research 90,712 80,398
Academic support 53,466 48,945
College/programs 344,902 312,011
Scholarships 142,977 129,004
Equity interest in Alliance 375,297 324,639
Other 98,845 75,610

Total $1,265,492 $1,115,611

Restricted expendable:
Instruction $ 35,226 $ 31,621
Research 120,486 111,013
Academic support 32,926 30,234
College/programs 149,385 135,172
Scholarships 40,038 35,546
Student loans 9,110 9,021
Grants and contracts 3,777 6,327
Capital projects 20,553 31,160
Other 1,562 8,210

Total $ 413,063 $ 398,304

31
UNIVERSITY OF CINCINNATI JUNE 30, 2007

11. 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.

12. 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 (collectively referred to as the Participating Entities) are managed by Alliance
management, and their operating results are combined and allocated to the Participating Entities based on
their calculated equity interests in the Alliance. The University's equity interest in the Alliance of 29.09% is
based on the Hospital’s pro rata portion of the Participating Entities' net assets. The University has
recognized its equity interest in the Alliance of $375,297,000 and $324,639,000 for the years ended June 30,
2007 and 2006, respectively, in Other Long-term Investments and Restricted Nonexpendable Net Assets.
Separate financial information regarding the Alliance may be obtained by contacting the Alliance at the
Health Alliance of Greater Cincinnati, 3200 Burnet Avenue, Cincinnati, Ohio 45229.

Hospital revenues and expenditures are recorded by the Alliance. The University has reported its pro rata share
($50,658,000 and $67,589,000 for the years ended June 30, 2007 and 2006, respectively) of the Alliance’s net
gain as part of the change in the fair value of investments.

The University provides various shared services, consisting mainly of security and various administrative
services, to the Health Alliance for which the University is reimbursed on a cost basis. The total cost of these
services for the years ended June 30, 2007 and 2006 were approximately $4,695,000 and $5,304,000
respectively.

In response to The Christ Hospital’s expressed intent to withdraw from the Health Alliance, the Health Alliance
initiated litigation (The Health Alliance of Greater Cincinnati v. The Christ Hospital, et al. (Case No. A0601969))
on March 1, 2006 in the Court of Common Pleas of Hamilton County, Ohio (the “Court of Common Pleas”) to
obtain a declaratory judgment that there were no circumstances that would permit The Christ Hospital to
withdraw from the Health Alliance. St. Luke Hospital joined the suit as a defendant in order to obtain an
adjudication of whether it was permitted to withdraw from the Health Alliance. On April 16, 2007, the Court of
Common Pleas made a post-trial entry following a bench trial that The Christ Hospital and St. Luke Hospital had
the right to terminate the contractual relationship with the Health Alliance. In the final judgment entry on June
13, 2007, the Common Pleas Court denied the request of The Christ Hospital and St. Luke Hospital to dissolve
the Health Alliance and ordered an accounting for the purpose of determining, among other things, the value of
the respective interests of The Christ Hospital and St. Luke Hospital under the Joint Operating Agreement in
anticipation of their departure from the Health Alliance. In addition, on July 31, 2007, The Christ Hospital and
St. Luke Hospital filed an action in the Court of Common Pleas seeking to dissolve the Health Alliance and
asking that a receiver be appointed to oversee the break-up. A preliminary injunction hearing, set for
September 28, 2007, in which The Christ Hospital and St. Luke Hospital sought to enjoin the Health Alliance
from taking actions inconsistent with dissolution, has been postponed until October 29, 2007. On September
28, 2007 The Christ Hospital and St. Luke Hospital filed a motion for summary judgment asking the judge to
decide the matter without a trial.

If the judgment of the Court of Common Pleas is ultimately permitted to stand, or if the Health Alliance is
dissolved, the effect on the University is difficult to ascertain with certainty. Under the Joint Operating
Agreement, the possibility exists that the Health Alliance will be required to pay certain amounts to the departing
members. Likewise, such departing members may be required to make payments to the Health Alliance.
Absent an accounting, it is impossible to determine at this time the existence or size of such amount, if any.
Further, any number of factors may result in a diminution of the demand for services by the Health Alliance and
its remaining members, including the University, may result in a reduction of clinical training opportunities for
students in the University’s College of Medicine. Pursuant to the Operating and Affiliation Agreement between
the Health Alliance and the University dated January 25, 2006, the Health Alliance provides financial support to

32
UNIVERSITY OF CINCINNATI JUNE 30, 2007

the University for academic programs that directly or indirectly support patient care at the University Hospital or
the Health Alliance. The Health Alliance also pays the University an annual education and research payment
that must be used exclusively for academic health center purposes. The total of these payments for the years
ended June 30, 2007 and 2006 were $9,038,000 and $12,139,000 respectively. Currently, the University is
unable to determine whether and what extent, if any, the receipt of such amounts in the future could be
materially and adversely affected. The ultimate result of the current litigation, as well as the financial and
operational effects thereof on the University, is extremely difficult to quantify or assess until such litigation is
resolved.

13. Capital Project Commitments

At June 30, 2007, the University is committed to future capital expenditures as follows (in thousands):

Contractual commitments $ 44,907

Estimated completion costs of projects 254,976
Total $299,883

These projects are being funded through various resources, including the State of Ohio, as follows (in
thousands):

Approved state appropriations requested and released

as of June 30, 2007 $ 6,586
Approved state appropriations not yet requested 308
Gifts and Pledges 225
University funded prior to June 30, 2007 51,374
Funds to be provided subsequent to June 30, 2007, from
various available sources 241,390
Total $299,883

The $241,390,000 of funding to be provided subsequent to June 30, 2007 will come from state funds, federal
funds, debt, gifts and University funds.

14. Self-Insurance Funds

The University currently provides for medical professional and general liability insurance through a combination
of an actuarially funded self-insurance program sponsored by the University and purchased commercial
insurance in excess of the self-insurance amount. The medical professional liability insurance program also
includes several qualified not-for-profit departmental (physician) practice corporations. Medical professional
self-insurance limits were $4 million per occurrence for 2007. An additional $15 million in commercial excess
professional liability insurance was provided above the self-insured retention.

General liability coverage is also provided as part of a group insurance program of Ohio state universities known
as the Inter-University Council of Ohio Insurance Consortium (IUC-IC). This program provided for $1 Million
retention per occurrence with the first $100,000 funded by UC, and the remaining $900,000 funded by pool
funds held through the IUC. Excess commercial coverage for general liability was provided with total limits of
$50 million, of which $45 million was shared with the other participating universities. In addition, educators’ legal
liability coverage was provided through the IUC program with $25 million in total limits, of which $20 million was
shared among the participating institutions. The IUC-IC self-insurance pools are funded by an agreed formula
among the participating universities.

The University’s self-insurance program is based on calculations by independent actuaries and funds are
deposited directly into two irrevocable self-insurance trust funds, one for medical and professional liability and
one for general liability. In the opinion of management, trust assets totaling approximately $23,749,000 are
adequate to cover estimated liabilities resulting from known claims and incidents and incurred-but-not-reported
incidents as of June 30, 2007.

33
UNIVERSITY OF CINCINNATI JUNE 30, 2007

Property insurance is also provided through the IUC-IC program, consisting of commercial property insurance
with a $350,000 retention, and a self-insurance pool to fund losses between $100,000 and $350,000.

The University is also self-insured for a portion of medical and dental benefits provided to employees. The cost
of such self-insured benefits provided during 2007 and 2006, respectively, was approximately $36,022,000 and
$21,197,000, including $5,202,000 and $1,861,000 accrued for estimated claims incurred but not reported. The
increase in 2007 is attributable to adding the HMO portion of medical and dental benefits.

15. Commitments and Contingencies

The University is currently a defendant in various legal actions. Additional legal action regarding the Health
Alliance of Greater Cincinnati but not involving the University could negatively affect a portion of the education
and research payment received from the Health Alliance. Although the final outcome of such actions cannot
currently be determined, the University's administration is of the opinion that the eventual liability, if any, will not
have a material effect on the financial position or operations of the University.

The University receives grants and contract from certain federal, state and local agencies to fund research and
other activities. The costs, both direct and indirect, that have been charged to the grants or contracts are
subject to examination and approval by the granting agency. It is the opinion of management that any
disallowance or adjustment of such costs would not have a material effect on the financial statements.

In 2005 the Department of Education conducted a program audit of certain aspects of the University’s Student
Financial Aid Program. As a result of various findings of the Department of Education, the University has
estimated a liability to the Department of Education approximating $13 million.

The University’s utility plant is exposed to market price fluctuations on its purchase of natural gas. The
University has purchase commitments with certain suppliers of natural gas whereby the University can lock into
the price of natural gas for a specified amount of natural gas that the University will take delivery of. As of June
30, 2007, the University has purchase commitments for 353,225 decatherm of gas at a price based on NYMEX,
plus a surcharge on the date of the purchase commitment.

16. University of Cincinnati Foundation

The University of Cincinnati Foundation is a legally separate, tax-exempt component unit of the University.
The principal function of the Foundation is to solicit, reserve, hold, invest and administer funds and to make
distributions to or for the benefit of the University. Since these resources held by the Foundation can be used
only by or for the benefit of the University, the Foundation is considered a component unit of the University and
is discretely presented in the University’s financial statements.

Accounts of the Foundation have been consolidated in the accompanying financial statements in accordance
with generally accepted accounting principles for not-for-profit organizations. Pledges receivable for the benefit
of the University totaling $12,388,000 in 2007 and $18,671,000 in 2006, and funds held in trust by the
Foundation for the University of $224,903,000 in 2007 and $191,001,000 in 2006, have been recorded by the
University and have, therefore, been eliminated from the amounts reported for the Foundation as of June 30,
2007 and 2006. Of these amounts, $203,257,000 and $171,491,000 has been invested as of June 30, 2007
and 2006 respectively in the University endowment pool investment pool.

A) Cash & Cash Equivalents

The carrying amount of the Foundation’s cash and cash equivalents is $10,684,000 as compared to bank
balances of $11,073,000. The difference between the carrying amounts and the bank balances is caused
primarily by deposits in transit and outstanding checks.

Of the Foundation’s bank balances, $848,000 is covered by federal depository insurance, $8,704,000 is
uninsured and mutual funds hold $1,521,000 in cash equivalents.

34
UNIVERSITY OF CINCINNATI JUNE 30, 2007

B) Investments

The fair value of investments at June 30 is (in thousands):

2007 2006
U. S. government securities $ 49 $ 77
Corporate notes and bonds - -
Corporate stocks - 928
Mutual funds 18,495 15,267
Other securities 967 875
Real estate - 978
Total investments $19,511 $18,125

GASB Statement 40 requires government entities to categorize investments of interest rate risk, credit risk, and
custodial risk.

Interest Rate Risk

The Foundation’s investments total $19,511,000 and $18,125,000 as of June 30, 2007 and 2006 respectively.
The segmented time distribution method is used to portray interest rate risk for $17,515,000 and $14,085,000 of
bond and other fixed income investments as of June 30, 2007 and 2006, respectively. Investments for the
years ended June 30, 2007 and 2006 are summarized as follows (in thousands):

Investment Maturities (In Years) 2007

Investment Type Fair Value Less than 1 1–5 6 – 10 More than 10

U.S. Treasury Obligations $ 1,270 $ 209 $ 219 $ 842 $ -

U.S. Government Agency 3,202 1,196 661 601 744
Obligations
Municipal Obligations 77 - - 21 56
Corporate Bonds 5,498 2,453 2,350 663 32
Bond Mutual Funds 7,468 - 1,151 6,117 200
Total Investments $17,515 $ 3,858 $ 4,381 $ 8,244 $ 1,032

Investment Maturities (In Years) 2006

Investment Type Fair Value Less than 1 1–5 6 – 10 More than 10

U.S. Treasury Obligations $ 867 $ 5 $ 34 $ 828 $ -

U.S. Government Agency 1,965 59 669 635 602
Obligations
Corporate Bonds 2,845 291 1,782 741 31
Bond Mutual Funds 8,290 - 728 7,447 115
Other 118 10 - 21 __ 87

Total Investments $14,085 $ 365 $3,213 $9,672 $ 835

The Foundation does not have a policy for interest rate risk.

35
UNIVERSITY OF CINCINNATI JUNE 30, 2007

Credit Risk – Bond and other fixed income investments are rated by nationally recognized rating organizations
as follows, as of June 30 (in thousands):

2007 2006
U.S. Government Obligations $ 1,270 $ 867
AAA 8,397 2,789
AA 4,063 4,520
A 3,091 1,817
BBB 157 209
BB 507 488
Not Rated 30 3,395

Total $17,515 $14,085

Foundation investment grade bonds are limited to those in the first four grades of any rating system. The
average rating of the portfolio of investment grade bonds must be in the top two grades of any rating system.
Limited investments having strategic value to the University are permitted.

Custodial Credit Risk

Of the Foundation’s $19,511,000 total investments, approximately $16,784,000 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 $38,030,000 and $50,949,000 as of
June 30, 2007 and 2006, respectively. These pledges receivable have been discounted at a rate of six percent
to a net present value of $24,669,000 and $26,839,000 as of June 30, 2007 and 2006, respectively, which
represents fair market value. As of June 30, these pledges are due as follows (in thousands):

2007 2006
Less than one year $ 8,065 $11,621
One to five years 8,565 4,581
More than five years 8,039 10,637
Subtotal 24,669 26,839
Less allowance for
uncollectibles pledges 1,603 640
Total $23,065 $26,199

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. Unconsolidated Related Organization

Prior to 2006, the University’s Board of Trustees and the Board of County Commissioners of Hamilton County,
Ohio (the County) constituted the membership of Drake Center, Inc. (the Center), a nonprofit corporation
created to operate a rehabilitation hospital and a skilled nursing facility. The Center was governed by a Board of
Trustees, the majority of which were appointed by the University Board of Trustees. In addition, certain

36
UNIVERSITY OF CINCINNATI JUNE 30, 2007

University officers/employees served on the Center’s Board and in Center officer/employee positions under
contractual arrangements.

In May 2006 the Health Alliance of Greater Cincinnati (the Health Alliance), the University, the Center and the
County entered into a reorganization agreement for the Center. Under the terms of the agreement, the Health
Alliance assumed ownership of the Center as of July 1, 2006 and became the sole member of the Center. The
existing Board of Trustees of the Center, including those appointed by the University, resigned and the Health
Alliance elected a new Board of Trustees. Accordingly, the prior relationship between the University and the
Center ceased to exist as of July 1, 2006.

18. New Accounting Standards

GASB Statement Number 48, Sales and Pledges of Receivables and Future Revenues and Intra-Entity
Transfers of Assets and Future Revenues was issued in September 2006 and establishes criteria to ascertain
whether certain transactions should be regarded as sales or collateralized borrowings. The provisions of the
Statement are effective for fiscal periods beginning after December 15, 2006.

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 50, Pension Disclosures – an amendment of GASB Statements No. 25 and 27 was
issued May 2007. It more closely aligns the financial reporting requirements for pensions with those for other
post-employment benefits (OPEB) and enhances information disclosed in notes to financial statements by
pension plans and by employers that provide pension benefits. This Statement is effective for periods beginning
after June 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.

Although not yet required to implement the aforementioned Statements for the year ended June 30, 2007, the
University does not think that there will be a material effect on its financial statements when implementation
does occur.

37
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

STUDENT FINANCIAL AID CLUSTER

STUDENT FINANCIAL AID--DIRECT

Department of Education:
Office of Student Financial Assistance 84.007 USED SEOG P007A05 904.88
Office of Student Financial Assistance 84.007 USED SEOG P007A06 990,359.84
Office of Student Financial Assistance 84.007 USED SEOG-RWC P007A0 325,100.00
Office of Student Financial Assistance 84.007 USED SEOG-CLR P007A0 740,100.00
Office of Student Financial Assistance 84.033 USED FWS-MAINP033A05 6,020.41
Office of Student Financial Assistance 84.033 USED FWS-JL&DP033A05 5,248.04
Office of Student Financial Assistance 84.033 USED FWS-RWC P033A05 921.84
Office of Student Financial Assistance 84.033 USED FWS-CLR P033A05 1,150.81
Office of Student Financial Assistance 84.033 USED FWS-MAINP033A06 1,257,256.97
Office of Student Financial Assistance 84.033 USED FWS-READP033A06 40,551.52
Office of Student Financial Assistance 84.033 USED FWS-JL&DP033A06 52,417.08
Office of Student Financial Assistance 84.033 USED FWS-RWC P033A06 19,814.25
Office of Student Financial Assistance 84.033 USED FWS-CLR P033A06 55,751.25
Office of Student Financial Assistance 84.063 USED PELL P063P04 (950.00)
Office of Student Financial Assistance 84.063 USED PELL P063P05 407,661.70
Office of Student Financial Assistance 84.063 USED PELL P063P06 5,742,257.79
Office of Student Financial Assistance 84.063 USED PELL-RWC P063P0 3,106,757.00
Office of Student Financial Assistance 84.063 USED PELL-CLR P063P0 7,302,105.00
Office of Student Financial Assistance 84.063 USED ACG P375A062017 624,173.92
Office of Student Financial Assistance 84.063 USED SMART P376S0620 315,753.00

Total Department of Education 20,993,355.30

Total Student Financial Aid-Direct Cluster 20,993,355.30

RESEARCH AND DEVELOPMENT CLUSTER

RESEARCH AND DEVELOPMENT--Direct:

Department of Agriculture:
Agricultural Research Service 10.001 USDA/CSREES Nat Res 27,288.33
Cooperative State Research, Education, and Extension Service 10.206 USDA 58-3148-5-046 3,244.24
Cooperative State Research, Education, and Extension Service 10.206 USDA 2006-35320-1656 134,787.30

Total Department of Agriculture 165,319.87

Department of Commerce:
National Institute of Standards and Technology 11.609 NIST RA134105SE669 5,206.27
National Institute of Standards and Technology 11.609 NIST IPA #IP0509 78,495.00

Total Department of Commerce 83,701.27

Department of Defense:
Department of Defense 12 NSA MDA904-89-H2046 (614.45)
Department of Defense 12 AIR FORCE #F33615-90 (5,969.47)
Department of Defense 12 F19628-87-K-0023 (4,785.34)
Department of Defense 12 AFOSR FA9550-05-1-01 (86.24)
Department of Defense 12 AFOSR FA9550-07-1-02 25,705.96
Department of Defense 12 AIR FORCE-WPAFB-IPA 39,209.67

38
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

Department of Defense 12 ARMY W9132T-04-C-001 (8,217.96)

Department of Defense 12 DACW-88-87-M-0832 (1,561.06)
Department of Defense 12 ARMY W81XWH-05-1-041 7,168.16
Department of Defense 12 ARMY W81XWH-06-1-008 15,619.84
Department of Defense 12 DAMD17-02-1-0342 ARM 52,452.87
Department of Defense 12 ARMY W81XWH-06-1-017 58,824.20
Department of Defense 12 ARMY TATRC IPA 59,294.56
Department of Defense 12 AFOSR FA9550-07-1-00 82,044.41
Department of Defense 12 ARMY W81XWH-05-2-008 89,182.90
Department of Defense 12 ARMY W81XWH-06-1-009 115,743.15
Department of Defense 12 ARMY W9132T-06-2-001 116,486.74
Department of Defense 12 ARMY W81XWH-04-1-018 182,748.39
Department of Defense 12 ARMY W81XWH-06-2-001 224,899.98
Department of Defense 12 DACA72-03-C-0019 ARM 394,663.77
Department of Defense 12 ARMY W81XWH-07-2-003 431,397.13
Office of Naval Research 12.300 ARMY W81XWH-04-C-000 137,089.31
Office of Naval Research 12.300 ONR N00014-06-1-0517 5,880.07
Office of Naval Research 12.300 ONR N00014-07-1-0635 31,688.83
Office of Naval Research 12.300 ONR N00014-04-1-0229 54,940.64
Office of Naval Research 12.300 ONR N00014-06-1-0517 60,394.19
Office of Naval Research 12.300 ONR N00014-05-1-0436 73,244.61
Office of Naval Research 12.300 ONR N00014-04-1-0059 122,958.09
Office of Naval Research 12.300 ONR N00014-07-1-0438 18,902.18
Office of Naval Research 12.300 ONR N00014-02-1-0837 45,541.30
Office of Naval Research 12.300 ONR N00014-03-1-0706 78,349.29
Department of Army 12.420 DAMD17-02-1-0510 ARM (4,107.96)
Department of Army 12.420 DAMD17-00-1-0057 ARM (2,787.28)
Department of Army 12.420 DAMD17-01-1-0243 ARM (185.21)
Department of Army 12.420 ARMY W81XWH-04-1-066 (10.85)
Department of Army 12.420 DAMD17-01-1-0705 ARM (0.35)
Department of Army 12.420 DAMD17-01-1-0723 ARM (0.21)
Department of Army 12.420 ARMY W81XWH-04-1-030 0.02
Department of Army 12.420 DAMD17-03-1-0351 ARM 469.67
Department of Army 12.420 Army W81XWH-07-10045 13,141.28
Department of Army 12.420 ARMY-W81XWH-04-1-032 27,599.30
Department of Army 12.420 W81XWH-06-1-0098 Arm 35,846.10
Department of Army 12.420 ARMY W81XWH-06-1-037 60,007.77
Department of Army 12.420 ARMY W81XWH-06-1-037 67,369.70
Department of Army 12.420 ARMY W81XWH-07-2-002 68,880.06
Department of Army 12.420 ARMY DAMD W81XWH-06- 88,597.17
Department of Army 12.420 ARMY W81XWH-06-1-035 135,237.68
Department of Army 12.420 ARMY W81XWH-07-2-003 144,220.99
Department of Army 12.420 ARMY W81XWH-04-1-049 149,110.25
Department of Army 12.420 ARMY W81XWH-06-2-001 169,338.45
Department of Army 12.420 ARMY W81XWH-06-10433 199,050.41
Department of Army 12.420 ARMY W81XWH-06-2-001 296,197.69
Department of Army 12.420 ARMY W81XWH-05-1-023 546,036.44
Army Research Office 12.431 ARMY/W911NF-04-1-038 20,173.19
Army Research Office 12.431 ARMY W911NF-06-1-029 102,276.58
Army Research Office 12.431 ARMY-DAAD19-02-1-022 135,245.93
Army Research Office 12.431 ARMY-DAAD19-02-1-022 154,019.51
Army Research Office 12.431 ARMY-DAAD19-02-1-022 218,062.56
Army Research Office 12.431 ARMY-DAAD19-02-1-022 562,591.03
Department of the Air Force 12.800 AF FA9550-05-1-0386 44,506.33
Department of the Air Force 12.800 AF F33615-03-2-5210 139,141.46

39
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Security Agency 12.901 NSA H98230-07-1-0016 280.21

National Security Agency 12.901 NSA H98230-05-1-0045 12,702.76
National Security Agency 12.901 NSA H98230-05-1-0066 21,150.70

Total Department of Defense 5,907,357.10

Department of Housing and Urban Development:
Department of Housing and Urban Development 14 HUD OHLHT0114-06 51,525.36
Department of Housing and Urban Development 14 HUD OHLHT0103-04 55,451.14
Department of Housing and Urban Development 14 HUD OHLHT0113-06 65,339.34
Department of Housing and Urban Development 14 HUD OHLHT0106-05 209,785.66
Office of Healthy Homes and Lead Hazard Control 14.900 HUD OHLHH0099E01 56.01
Office of Healthy Homes and Lead Hazard Control 14.900 HUD OHLHH0155-06 67,528.96

Total Department of Housing and Urban Development 449,686.47

Department of Justice:
Department of Justice 16 PROJECT 3 MISC FEDER 714.32
Department of Justice 16 KINSOW 1224708 CHAKR 198,793.61
National Institute of Justice 16.560 DOJ 2005-DA-BX-K102 72,447.16
National Institute of Justice 16.560 NIJ 2005-IJ-CX-0030 103,326.42
National Institute of Justice 16.562 NIJ 2006-IJ-CX-0001 14,992.97
National Institute of Corrections 16.602 NIC 05C38GJF8 47,592.69
National Institute of Corrections 16.602 NIC 06WOI01GJL0 C 160,328.66
Office of Community Oriented Policing Services 16.710 USDOJ-2005CKWX0397 N 2,933.84
Office of Justice Programs 16.738 2004 2005-DS/JG19-19 134,139.84

Total Department of Justice 735,269.51

Department of Labor:
Department of Labor 17 OSHA/DOL Q079F25333 6,405.60

Total Department of Labor 6,405.60

Department of State:
Bureau of Educational and Cultural Affairs 19.401 DEPT OF STATE FOSTER (10,150.84)
Bureau of Educational and Cultural Affairs 19.401 CIES - Fullbright / 817.91

Total Department of State: (9,332.93)

National Aeronautics and Space Administration:

National Aeronautics & Space Administration 43 NNX07AC69A - NASA 16,364.39
National Aeronautics & Space Administration 43.001 NASA NAG3-2669 (0.01)
National Aeronautics & Space Administration 43.001 NNC04GA11G NASA 4,858.31
National Aeronautics & Space Administration 43.001 NNC04GB46G NASA 8,728.91
National Aeronautics & Space Administration 43.001 NASAGLENN NNCO6GA30G 18,965.45
National Aeronautics & Space Administration 43.001 NAG9-01475 NASA 6,691.18
National Aeronautics & Space Administration 43.001 NNA06CB04G APPROACH 65,266.31
National Aeronautics & Space Administration 43.001 NAG5 13426 NASA 36,700.59
National Aeronautics & Space Administration 43.002 NCC5-728 NASA 59,045.83

Total National Aeronautics and Space Administration 216,620.96

40
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Endowment for the Humanities:

Division of Educational Programs 45.167 NEH RZ-50602-06 19,404.00
National Endowment for the Humanities 45.160 NEH FA-50138-04 (12,880.01)

Total National Endowment for the Humanities 6,523.99

National Science Foundation:

Directorate for Engineering 47.041 NSF EEC-0120823 (4,373.97)
Directorate for Engineering 47.041 NSF BES-0448117 REU (0.04)
Directorate for Engineering 47.041 NSF EEC-0120823 159.10
Directorate for Engineering 47.041 NSF ECS-0439074 594.09
Directorate for Engineering 47.041 NSF CTS-0238962/001 675.51
Directorate for Engineering 47.041 NSF AST-0607497 711.36
Directorate for Engineering 47.041 NSF CTS-0320695-001 1,162.53
Directorate for Engineering 47.041 NSF EEC-0647677 REU 1,710.43
Directorate for Engineering 47.041 NSF EEC-0631412 2,213.32
Directorate for Engineering 47.041 NSF IIP-0652208 2,595.86
Directorate for Engineering 47.041 NSF CMS-0210351 2,975.00
Directorate for Engineering 47.041 NSF DMI-0400264 3,643.28
Directorate for Engineering 47.041 NSF CTS-0237172 3,720.85
Directorate for Engineering 47.041 NSF DMI-0555962 REU 3,973.62
Directorate for Engineering 47.041 NSF CMS-0210351 4,414.83
Directorate for Engineering 47.041 NSF EEC-0541601 4,455.55
Directorate for Engineering 47.041 NSF ECS-0701703 5,839.87
Directorate for Engineering 47.041 NSF EEC-0531945 5,993.63
Directorate for Engineering 47.041 NSF CTS-0237172 6,889.50
Directorate for Engineering 47.041 NSF BES-0428600 7,481.70
Directorate for Engineering 47.041 NSF CBET-0626063 RET 8,900.00
Directorate for Engineering 47.041 NSF EEC-0540582 REU 9,000.00
Directorate for Engineering 47.041 NSF EEC-0120823 REU 9,000.00
Directorate for Engineering 47.041 NSF BES-0617939 9,422.80
Directorate for Engineering 47.041 NSF DMI-0627983 9,939.37
Directorate for Engineering 47.041 NSF BES-0229135 10,160.67
Directorate for Engineering 47.041 NSF BES-0238858 10,419.93
Directorate for Engineering 47.041 NSF CTS-0403897 10,828.79
Directorate for Engineering 47.041 NSF EEC-0533321 12,055.15
Directorate for Engineering 47.041 NSF EEC-0649914 16,102.40
Directorate for Engineering 47.041 NSF EEC-0540582 18,785.55
Directorate for Engineering 47.041 NSF EEC-0541600 19,883.98
Directorate for Engineering 47.041 NSF EEC-0649914 21,600.00
Directorate for Engineering 47.041 NSF CTS-0320695 24,158.86
Directorate for Engineering 47.041 NSF CTS-0457453 25,128.79
Directorate for Engineering 47.041 NSF CTS 0548364 26,376.69
Directorate for Engineering 47.041 NSF BCS-0650393 26,905.25
Directorate for Engineering 47.041 NSF EEC-0624148 27,867.34
Directorate for Engineering 47.041 NSF BES-0428600 32,930.11
Directorate for Engineering 47.041 NSF CMS-0540289 33,140.41
Directorate for Engineering 47.041 NSF BES-0529217 33,401.40
Directorate for Engineering 47.041 NSF CTS-0403897 34,251.32
Directorate for Engineering 47.041 NSF ECS-0608854 35,328.04
Directorate for Engineering 47.041 NSF CTS-0626063 35,574.25
Directorate for Engineering 47.041 NSF BES-0428600 36,296.36

41
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

Directorate for Engineering 47.041 NSF ECS-0524166 39,566.86

Directorate for Engineering 47.041 NSF BES-0529217 41,873.20
Directorate for Engineering 47.041 NSF BES-0552036 45,016.10
Directorate for Engineering 47.041 NSF CMS-0510823 46,962.51
Directorate for Engineering 47.041 NSF CMS-0508232 48,012.53
Directorate for Engineering 47.041 NSF CTS-0403897 53,511.94
Directorate for Engineering 47.041 NSF EEC-0532495 55,092.89
Directorate for Engineering 47.041 NSF EEC-0552786 REU 55,500.31
Directorate for Engineering 47.041 NSF GRS-0548846 59,565.16
Directorate for Engineering 47.041 NSF EEC-0540582 61,619.53
Directorate for Engineering 47.041 NSF EEC-0639469 63,410.21
Directorate for Engineering 47.041 NSF CMS-0600583 67,333.48
Directorate for Engineering 47.041 NSF CTS-0403897 70,109.68
Directorate for Engineering 47.041 NSF BES-0238858 71,005.41
Directorate for Engineering 47.041 NSF CTS-0238962 74,464.65
Directorate for Engineering 47.041 NSF EEC-0622036 75,333.28
Directorate for Engineering 47.041 NSF DMI-0555962 REU 79,203.14
Directorate for Engineering 47.041 NSF BES-0529063 90,780.96
Directorate for Engineering 47.041 NSF CMS-0432992 92,811.89
Directorate for Engineering 47.041 NSF DMR-0200839 95,458.82
Directorate for Engineering 47.041 NSF BES-0448117 119,306.97
Directorate for Engineering 47.041 NSF CMS-0210351 389,651.31
Directorate for Mathematical and Physical Sciences 47.049 NSF PHY-0203262 (30,234.76)
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0093622 (627.40)
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR-0200839 (163.65)
Directorate for Mathematical and Physical Sciences 47.049 NSF DMS-0618997 13,303.99
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR-0216374 17,034.18
Directorate for Mathematical and Physical Sciences 47.049 NSF DMS-0504198 21,689.03
Directorate for Mathematical and Physical Sciences 47.049 NSF DMS-0515989 23,409.17
Directorate for Mathematical and Physical Sciences 47.049 NSF DMS-0515989 30,291.84
Directorate for Mathematical and Physical Sciences 47.049 NSF PHY-0406400 35,330.29
Directorate for Mathematical and Physical Sciences 47.049 NSF DMS-0355027 38,226.37
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0243731 40,305.95
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0449774 59,939.35
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR-0305076 64,377.59
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR-0244489 75,694.75
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR-0407569 86,641.13
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0400539 89,280.05
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0602413 108,175.79
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR-0456472 120,806.89
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0548150 126,418.06
Directorate for Mathematical and Physical Sciences 47.049 NSF AST-0094050 155,935.15
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR-0312680 158,417.98
Directorate for Mathematical and Physical Sciences 47.049 NSF DMR-0314760 175,935.98
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0134975 182,460.18
Directorate for Mathematical and Physical Sciences 47.049 NSF PHY-0457336 285,347.87
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0645483 707.00
Directorate for Geosciences 47.050 NSF EAR-0640378 5,000.00
Directorate for Geosciences 47.050 NSF EAR 0602675 10,359.04
Directorate for Geosciences 47.050 NSF EAR-0618003 13,633.25
Directorate for Geosciences 47.050 NSF EAR-0537580 22,092.08
Directorate for Geosciences 47.050 NSF EAR 0518511 22,890.81
Directorate for Geosciences 47.050 NSF EAR-0544822 31,414.26
Directorate for Computer and Information and Science Engineering 47.070 NSF CNS-0521189 20,601.20
Directorate for Computer and Information and Science Engineering 47.070 NSF CCF-0429717 34,748.90

42
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

Directorate for Computer and Information and Science Engineering 47.070 NSF CCF-0429717 45,150.65
Directorate for Biological Sciences 47.074 NSF DEB-0317687 REU 155.56
Directorate for Biological Sciences 47.074 NSF EEC-0120823 REU 989.06
Directorate for Biological Sciences 47.074 NSF IBN-0239164 REU 1,534.24
Directorate for Biological Sciences 47.074 NSF MCB-0543910 2,658.08
Directorate for Biological Sciences 47.074 NSF CNS-0634473 2,980.96
Directorate for Biological Sciences 47.074 NSF DEB-0345990 REU 5,335.48
Directorate for Biological Sciences 47.074 NSF IOB-0239164 7,237.60
Directorate for Biological Sciences 47.074 NSF CNS-0421092 32,965.78
Directorate for Biological Sciences 47.074 NSF DEB-0326957 39,628.63
Directorate for Biological Sciences 47.074 NSF CCF-0541103 43,714.65
Directorate for Biological Sciences 47.074 NSF MCB-0543910 47,107.09
Directorate for Biological Sciences 47.074 NSF CCF-0541103 53,264.42
Directorate for Biological Sciences 47.074 NSF IOB-0545978 73,888.49
Directorate for Biological Sciences 47.074 NSF DEB-0317687 74,111.26
Directorate for Biological Sciences 47.074 NSF IBN-0239164 88,834.85
Directorate for Biological Sciences 47.074 NSF DEB-0345990 91,065.97
Directorate for Biological Sciences 47.074 NSF IBN-0423963 98,104.42
Directorate for Social, Behavioral and Economic Sciences 47.075 NSF BCS-0213857 0.01
Directorate for Social, Behavioral and Economic Sciences 47.075 NSF INT-0332062 1,252.67
Directorate for Social, Behavioral and Economic Sciences 47.075 NRC SUB NSF INT 6,905.88
Directorate for Social, Behavioral and Economic Sciences 47.075 NSF SES-0615706 98,683.28
Directorate for Education and Human Resources 47.076 NSF DUE-0511160 8,646.58
Directorate for Education and Human Resources 47.076 NSF DUE-0536799 40,346.44
Directorate for Education and Human Resources 47.076 NSF DGE-0333377 72,865.68
Directorate for Education and Human Resources 47.076 NSF DGE-0538532 332,543.04
Directorate for Education and Human Resources 47.076 NSF DGE-0333377 556,286.84
Office of the Director 47.078 NSF OPP-0240174 (14.49)
Office of the Director 47.078 NSF ARC 0539167 18,418.28
Office of the Director 47.078 NSF OPP-0094769 26,939.23
Office of the Director 47.079 NSF OISE-0548564 5,237.16

Total National Science Foundation 6,304,164.42

Department of Veterans Affairs:

Department of Veterans Affairs 64 V673P-5763 / Treatme 5,489.34
Department of Veterans Affairs 64 VA MED CENTER IPA MI 7,677.60
Department of Veterans Affairs 64 VA IPA Jie Xu 9,471.03
Department of Veterans Affairs 64 VA IPA ROTH 10,053.84
Department of Veterans Affairs 64 VA IPA KUZMENKO 12,283.00
Department of Veterans Affairs 64 VA IPA SPAULDING 14,835.03
Department of Veterans Affairs 64 VA IPA HEIDORN 17,679.21
Department of Veterans Affairs 64 VA IPA SESSTERHAN SU 27,398.27
Department of Veterans Affairs 64 VA IPA BREWER 23,449.65
Department of Veterans Affairs 64 VA MED CENTER IPA DE 39,221.83
Department of Veterans Affairs 64 VA IPA SIJUE WAN 63,444.74

Total Department of Veterans Affairs 231,003.54

Environmental Protection Agency:

Environmental Protection Agency 66 EPA 68-C-00-159 TO# (30,829.75)
Environmental Protection Agency 66 EPA 68-C-00-159 TO # (1,594.88)
Environmental Protection Agency 66 EPA 68-C-00-159 TO#5 (918.27)
Environmental Protection Agency 66 EPA 68-C-00-159 TO#1 (534.02)

43
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

Environmental Protection Agency 66 EPA 68-C-00-159 TO# (265.07)

Environmental Protection Agency 66 EPA 68-C-00-159 TO# (33.57)
Environmental Protection Agency 66 EPA 4C-R119-NTEX (14.88)
Environmental Protection Agency 66 EPA 68-C-00-159 TO # (0.17)
Environmental Protection Agency 66 EPA 68-C-00-159 TO# (0.08)
Environmental Protection Agency 66 EPA 68-C-00-159 TO # 83.93
Environmental Protection Agency 66 EPA 68-C-00-159 TO# 589.31
Environmental Protection Agency 66 EPA 68-C-00-159 TO# 982.50
Environmental Protection Agency 66 EPA 68-C-00-159 TO#2 1,800.25
Environmental Protection Agency 66 EPA 68-C-00-159 TO# 2,057.80
Environmental Protection Agency 66 EPA 68-C-00-159 TO # 2,258.89
Environmental Protection Agency 66 EPA 68-C-00-159 TO # 4,054.74
Environmental Protection Agency 66 EPA 68-C-00-159 TO# 5,669.41
Environmental Protection Agency 66 EPA 68-C-00-159 TO# 7,395.34
Environmental Protection Agency 66 EPA 68-C-00-159 TO # 7,883.72
Environmental Protection Agency 66 EPA EP05C000247 7,913.95
Environmental Protection Agency 66 EPA 68-C-00-159 TO# 7,916.51
Environmental Protection Agency 66 EPA 68-C-00-159 TO # 10,037.31
Environmental Protection Agency 66 EPA 68-C-00-159 TO# 10,969.10
Environmental Protection Agency 66 EPA 68-C-00-159 TO# 15,362.87
Environmental Protection Agency 66 EPA EP068000093 Alli 17,259.68
Environmental Protection Agency 66 EPA 68-C-00-159 TO# 22,622.17
Environmental Protection Agency 66 EPA 68-C-00-159 T0# 27,943.16
Environmental Protection Agency 66 EPA EP068000093 ROHS 29,959.66
Environmental Protection Agency 66 EPA 68-C-00-159 TO# 30,771.49
Environmental Protection Agency 66 EPA 68-C-00-159 TO#5 34,158.52
Environmental Protection Agency 66 EPA 68-C-00-159 TO # 42,382.90
Environmental Protection Agency 66 EPA 68-C-00-159 TO# 45,512.27
Environmental Protection Agency 66 EPA 68-C-00-159 TO# 46,274.19
Environmental Protection Agency 66 EPA 68-C-00-159 TO# 48,090.00
Environmental Protection Agency 66 EPA 68-C-00-159 TO# 49,814.19
Environmental Protection Agency 66 EPA 68-C-00-159 TO # 55,526.11
Environmental Protection Agency 66 EPA 68-C-00-159 TO# 79,399.99
Environmental Protection Agency 66 EPA X3-83266401 Wate 80,054.66
Environmental Protection Agency 66 EPA 68-C-00-159 TO# 84,789.60
Environmental Protection Agency 66 EPA IPA HQ-535-05-06 87,133.20
Environmental Protection Agency 66 EPA 68-C-00-159 TO# 98,153.96
Office of Research and Development 66.505 EPA R82957901-0 398.73
Environmental Protection Agency 66.516 EPA SU-83248201-0 3,560.63

Total Environmental Protection Agency 934,590.05

Department of Energy:
Department of Energy 81 ORISE/DOE/AFRL/HEP F 47,250.00
Department of Energy 81 DOE IPA JOHNSON 113,794.73
Department of Energy 81 DE-FC01-06EH06002 428,887.79
Office of Science 81.049 DOE Chicago DE-FC03- 315.07
Office of Science 81.049 DOE CHICAGO DE-FG02- 5,351.52
Office of Science 81.049 DOE Chicago FC03-96S 39,072.29
Office of Science 81.049 DOE/CHICAGO DE-FG02- 78,957.46
Office of Science 81.049 CH DE-FG02-03ER63655 171,821.14
Office of Science 81.049 CH DE-FG02-84ER40153 180,165.37
Office of Science 81.049 CHI DE-FG02-84ER4015 379,314.71
Office of Science 81.049 DOE CHICAGO: DE-FC0 21,989.65

44
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

Office of Science 81.049 DOE CHICAGO: DE-FC0 45,074.24

Office of Fossil Energy 81.057 DOE NETL-DE-FG26-04N (734.36)
Office of Fossil Energy 81.057 NETL DE-FG26-03NT418 38,407.21
Office of Fossil Energy 81.057 DOE DE-FG26-06NT42 18,044.42
Office of Fossil Energy 81.057 DOE DE-FG26-06NT42 18,055.38
Office of Fossil Energy 81.057 NETL DE-FG26-03NT417 47,434.01
Office of Energy Efficiency and Renewable Energy 81.087 GO DE-FG36-05GO15043 39,635.06
Office of Energy Efficiency and Renewable Energy 81.087 GO DE-FG36-05GO15043 102,605.87
Office of Energy Efficiency and Renewable Energy 81.087 GO DE-FG36-05GO15043 189,576.49
Office of Fossil Energy 81.089 NETL DE-FC26-04NT422 33,914.42
Office of Nuclear Energy 81.114 ID DE-FG07-02ID14352 46,012.68
Office of Nuclear Energy 81.121 ID DE-FC07-05-ID1465 132,086.02

Total Department of Energy 2,177,031.17

Department of Education:
Assistant Secretary for Innovation and Improvement 84.295 Ready to Learn - TV 13,835.77

Total Department of Education 13,835.77

Department of Health and Human Services:

Department of Health and Human Services 93 N01DA-9-8095/TO 4 1,161.96
Department of Health and Human Services 93 N01DA-9-8095 / # 5 ( 1,419.87
Department of Health and Human Services 93 CDC PO#211-2004-M-08 1,008.10
Department of Health and Human Services 93 CDC PO#212-2005-M-14 10,066.18
Department of Health and Human Services 93 NIOSH PO# 211-2005-M 0.03
Department of Health and Human Services 93 NIOSH PO# 212-2004-M 17,936.12
Department of Health and Human Services 93 NIOSH 212-2005-M-119 5,667.94
Department of Health and Human Services 93 NIOSH PO# 211-2006-M 7,637.55
Department of Health and Human Services 93 NIOSH PO# 211-2006-M 5,934.20
Department of Health and Human Services 93 N01-HB-47171 HOXWORT 315,727.85
Department of Health and Human Services 93 N01-WH-4-2126-8,9,10 (433.49)
Department of Health and Human Services 93 N01-WH-4-2126 FP (83.78)
Department of Health and Human Services 93 N01-WH-4-2126-12,13, 151,303.45
Department of Health and Human Services 93 N01-AI-25467 392,337.02
Department of Health and Human Services 93 N01-AR-2-2264 (54.75)
Department of Health and Human Services 93 N01-HD-4-3377 HHSN27 27,840.80
Department of Health and Human Services 93 N01-HD-4-3377 HHSN27 221,011.84
Department of Health and Human Services 93 N01-HD-4-3377 HHSN27 91,540.42
Department of Health and Human Services 93 DE PO#263-MJ-607895/ 2,000.00
Department of Health and Human Services 93 National Women's Health 1,345.42
Centers for Disease Control and Prevention 93.061 1 R01 DP000113-01 GA (102.15)
Centers for Disease Control and Prevention 93.061 1 R01 DP000113-01 D' (0.02)
Centers for Disease Control and Prevention 93.061 1 R01 DP000113-01 SU (1,763.26)
Centers for Disease Control and Prevention 93.061 5 R01 DP000113-02 4,392.42
Centers for Disease Control and Prevention 93.061 5 R01 DP000113-02 1,666.18
Centers for Disease Control and Prevention 93.061 5 R01 DP000113-02 54,209.87
Centers for Disease Control and Prevention 93.061 5 R01 DP000113-03 Pa 16,072.17
Centers for Disease Control and Prevention 93.061 5 R01 DP000113-03 Pa 96,118.11
Food and Drug Administration 93.103 FD-R-00672-13,14,15; 219,085.38
Health Resources and Services Administration 93.110 4 T73 MC00032-16-01 513,985.74
Health Resources and Services Administration 93.110 90DD0546/04 45,009.47
Health Resources and Services Administration 93.110 90DD0546-05 325,417.42

45
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Institute of Environmental Health Sciences 93.113 5 U01 ES11038-05,05S 48,405.34

National Institute of Environmental Health Sciences 93.113 5 U01 ES11038-05,05S 88,550.60
National Institute of Environmental Health Sciences 93.113 5 U01 ES11038-05,05S 262,515.19
National Institute of Environmental Health Sciences 93.113 5 U01 ES11038-05,05S 1,095.48
National Institute of Environmental Health Sciences 93.113 5 U01 ES11038-05,05S 7,681.87
National Institute of Environmental Health Sciences 93.113 5 U01 ES11038-05,05S 26,249.98
National Institute of Environmental Health Sciences 93.113 5 R21 ES01317-01,02,03 134,079.44
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 343,310.65
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 29,394.21
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 100,289.05
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 226,176.15
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 121,585.65
National Institute of Environmental Health Sciences 93.113 5 R01 ES012695-01A2-02 242,811.72
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 11,179.42
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 20,853.05
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 157,757.19
National Institute of Environmental Health Sciences 93.113 9 R01 ES015145 - 04A 254,411.77
National Institute of Environmental Health Sciences 93.113 5 R01 ES014016-06242 274,776.05
National Institute of Environmental Health Sciences 93.113 5 R01 ES014016-06242 12,366.90
National Institute of Environmental Health Sciences 93.113 1 R01 ES014464-01 36,835.07
National Institute of Environmental Health Sciences 93.113 1 R01 ES014403-01 415,516.60
National Institute of Environmental Health Sciences 93.113 1 R03 ES014621-01,02 55,998.64
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S2 33,104.36
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S5 8,784.41
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S5 30,296.79
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S5 72.69
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S5 2,934.45
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S5 21,925.31
National Institute of Environmental Health Sciences 93.113 2 P42 ES04908-15S2 20,592.63
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S5 (2,862.21)
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S5 1,856.04
National Institute of Environmental Health Sciences 93.113 3 P42 ES04908-15S5 32,714.39
National Institute of Environmental Health Sciences 93.113 3 P42 ES004908-15S5 107,847.56
National Institute of Environmental Health Sciences 93.113 5 R01 ES10416-01,02,03 4,395.86
National Institute of Environmental Health Sciences 93.113 5 R01 ES10807-01,02,03 (6,250.09)
National Institute of Environmental Health Sciences 93.113 5 R01 ES08147-05,06,07 (263,223.73)
National Institute of Environmental Health Sciences 93.113 5 R01 ES10562-01A1,02 25,528.50
National Institute of Environmental Health Sciences 93.113 5 R01 ES09110-05A2,06 273,162.45
National Institute of Environmental Health Sciences 93.113 5 R01 ES012212-01,02 102,357.58
National Institute of Environmental Health Sciences 93.113 5 R01 ES12463-01,02,03 476,709.84
National Institute of Environmental Health Sciences 93.113 5 R01 ES004203-15,16 74,927.12
National Institute of Environmental Health Sciences 93.113 5 R01 ES11798-01,02,03 287,214.51
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-02 5,283.20
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-02 271.00
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-02 (460.43)
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-02 3,055.05
National Institute of Environmental Health Sciences 93.113 5 U01 ES12770-02 142.79
National Institute of Environmental Health Sciences 93.113 5 R01 ES06273-10,11 382,118.57
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-02 49,322.49
National Institute of Environmental Health Sciences 93.113 1 R21 ES013524-02 222,015.48
National Institute of Environmental Health Sciences 93.113 5 U01 ES11038-05 (186.11)
National Institute of Environmental Health Sciences 93.113 1 R21 ES013827-01 (62,074.15)
National Institute of Environmental Health Sciences 93.113 3 U01 ES012770-03S1 6,514.80
National Institute of Environmental Health Sciences 93.113 2 RO1 ES010807-06,07 398,391.96
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-03 144,260.87

46
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Institute of Environmental Health Sciences 93.113 5 P30 ES06273-11S1,12 38,243.03

National Institute of Environmental Health Sciences 93.113 5 U01 ES011038- 5 S1 109,915.19
National Institute of Environmental Health Sciences 93.113 5 R01 ES015446-01,02 10,536.97
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 1,972.94
National Institute of Environmental Health Sciences 93.113 3 U01 ES012770-03S1 22,646.73
National Institute of Environmental Health Sciences 93.113 5 R01 ES015448-01,02 214,360.63
National Institute of Environmental Health Sciences 93.113 5 R01 ES015036-01,02 388,210.36
National Institute of Environmental Health Sciences 93.113 1 U01 ES015675-01 323,005.84
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 10,913.58
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 116,946.82
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 11,782.39
National Institute of Environmental Health Sciences 93.113 5 R01 ES015446-01,02 150,396.15
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 60,415.72
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-04 101,414.13
National Institute of Environmental Health Sciences 93.113 1 R01 HL081859-02 403,905.99
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-03 7,408.89
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-03 4,390.92
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-03 1,968.02
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-03 3,707.67
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-03 6,095.14
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-02 24,593.37
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-03 21.46
National Institute of Environmental Health Sciences 93.113 5 U01 ES012770-03 40,060.60
National Institute of Environmental Health Sciences 93.114 5 U45 ES06184-14 380,599.85
National Institute of Environmental Health Sciences 93.114 5 U45 ES06184-15 1,358,179.45
National Institute of Environmental Health Sciences 93.114 5 U45 ES06184-15 30,212.99
National Institute of Environmental Health Sciences 93.114 7 R21 ES0123071-03 109,513.01
National Institute of Environmental Health Sciences 93.115 5 R01 ES011170-01,02 (2,865.27)
National Institute of Environmental Health Sciences 93.115 5 R01 ES011170-01,02 36,796.92
National Institute of Environmental Health Sciences 93.115 5 R01 ES011170-01,02 750,987.92
National Institute of Environmental Health Sciences 93.115 3 R01 ES011170-05S1 8,295.93
National Institute of Dental Research 93.121 5 R03 DE017089-01,02 69,662.20
National Institute of Dental Research 93.121 1 R01 DE016325-01A2 443,822.37
National Institute of Dental Research 93.121 1 R21 DE 017703-01 125,101.80
National Institute of Dental Research 93.121 5 R01 DE013823-01,02 (67,560.64)
National Institute of Dental Research 93.121 1 R13 DE018363-01 16,328.99
Centers for Disease Control and Prevention 93.136 R49/CCR523225-02 (30.71)
Centers for Disease Control and Prevention 93.136 R49 CCR523225-03 101,825.59
Centers for Disease Control and Prevention 93.136 R49 CCR523225-03 35,468.80
Centers for Disease Control and Prevention 93.136 R49 CCR523225-03 5,105.95
National Institute of Environmental Health Sciences 93.142 5 U45 ES06184-14 315.68
National Institute of Environmental Health Sciences 93.143 5 P42 ES04908-15 338.72
Centers for Disease Control and Prevention 93.161 5 U50 ATU573006-02 (7,593.53)
Centers for Disease Control and Prevention 93.161 5 U50 ATU573006-02 (1,228.64)
Centers for Disease Control and Prevention 93.161 5 U50 ATU573006-03 84,681.42
National Human Genome Research Institute 93.172 5 R01 HG003749-02 237,507.11
National Human Genome Research Institute 93.172 5 R01 HG003749-02 12,163.30
National Human Genome Research Institute 93.172 5 R21 HG002849-01,02 (0.04)
National Institute on Deafness and Other Communication Disorders 93.173 5 R01 DC000926-08,09 40,866.76
National Institute on Deafness and Other Communication Disorders 93.173 5 R01 DC00926-10 (169.87)
National Institute on Deafness and Other Communication Disorders 93.173 5 R01 DC05250-01,02,03 366,908.46
National Institute on Deafness and Other Communication Disorders 93.173 5 R21 DC006505-01,02 50,489.97
National Institute on Deafness and Other Communication Disorders 93.173 1 R03 DC006771-01A2 40,927.08
National Institute on Deafness and Other Communication Disorders 93.173 7 R01 DC03577-09 409,087.53
National Institute on Deafness and Other Communication Disorders 93.173 5 K08 DC005421-03,04 126,702.78

47
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

Health Resources and Services Administration 93.178 5 D19 HP40540-02-00 12.97

Health Resources and Services Administration 93.178 5 D19 HP40540-03-00 81,089.97
Centers for Disease Control and Prevention 93.197 CDC 254-2006-M-15577 8,149.36
Centers for Disease Control and Prevention 93.197 CDC PO 2511-2006-M-1 4,064.41
Centers for Disease Control and Prevention 93.197 CDC 254-2007-M-19455 1,631.61
Centers for Disease Control and Prevention 93.197 CDC 200-2005-M-12686 5,000.00
Centers for Disease Control and Prevention 93.197 CDC 211-2007-M-19263 9,744.66
National Center for Complementary and Alternative Medicine 93.213 5 R01 AT001147-01,02 65,713.97
National Center for Complementary and Alternative Medicine 93.213 5 R21 AT00567-01A1,02 20,394.36
National Center for Complementary and Alternative Medicine 93.213 5 R21 AT002110-02 24,709.74
National Center for Complementary and Alternative Medicine 93.213 5 R21 AT002110-02 98,659.42
National Center for Complementary and Alternative Medicine 93.213 5 K01 AT002637-01, 02 23,105.76
National Center for Complementary and Alternative Medicine 93.213 5 K01 AT002637-03 93,184.94
National Center for Complementary and Alternative Medicine 93.213 5 K24 AT001676-01,02 75,711.07
Agency for Healthcare Research and Quality 93.226 5 T73 MC00032-15 89,903.18
Agency for Healthcare Research and Quality 93.226 1 K08 HS013914-011A2 33,426.07
Agency for Healthcare Research and Quality 93.226 5 K08 HS013914-02 98,900.25
National Institute of Mental Health 93.242 5 R01 MH60781-01,02,03 (4.92)
National Institute of Mental Health 93.242 5 R01 MH63798-01,02,03 (22,558.66)
National Institute of Mental Health 93.242 5 R01 MH49698-11,12,13 313,539.16
National Institute of Mental Health 93.242 1 R01 MH69860-02,03,04 334,530.72
National Institute of Mental Health 93.242 1 R01 MH066626-01A2 466,736.23
National Institute of Mental Health 93.242 1 R01 MH71931-01,02,03 568,765.66
National Institute of Mental Health 93.242 1 R01 MH069725-01A2 306,531.77
National Institute of Mental Health 93.242 5 R01 MH068801-01A2 431,184.85
National Institute of Mental Health 93.242 1 R34 MH071719-01A1 170,729.75
National Institute of Mental Health 93.242 1 R21 MH73704-01A1 199,915.18
National Institute of Mental Health 93.242 3 R01 MH066626-03S1 135,446.21
National Institute of Mental Health 93.242 1 R01 MH074929-01A1 191,351.00
National Institute of Mental Health 93.242 1 R21 MH074858-01A1 191,292.94
National Institute of Mental Health 93.242 3 R01 MH069725-02S1 18,179.82
Substance Abuse and Mental Health Services Administration 93.243 1 H79 SP10829-01 128,167.95
Health Resources Services Administration 93.247 1 D09 HP00338-03 2,873.51
Health Resources Services Administration 93.247 1 D09 HP03559-01-00 (0.04)
Health Resources Services Administration 93.247 5 D09 HP03559-02-00 18.21
Health Resources Services Administration 93.247 1 D09HP05327-01 722.75
Health Resources Services Administration 93.247 1 D09HP05327-02-00 246,015.02
Health Resources Services Administration 93.247 5 D09 HP03559-03-00 253,756.93
National Institute for Occupational Safety and Health 93.262 NIOSH / CDC / PO# 2 951.08
National Institute for Occupational Safety and Health 93.262 1 R21 OH008510-01A1 2,384.44
National Institute for Occupational Safety and Health 93.262 1 R01 OH008795-01 128,584.75
National Institute for Occupational Safety and Health 93.262 1 R01 OH008795-01 8,427.33
National Institute for Occupational Safety and Health 93.262 5 R21 OH008510-2 152,368.11
National Institute for Occupational Safety and Health 93.262 NIOSH 5 R01 OH07364- 250.10
National Institute for Occupational Safety and Health 93.262 5 R01 OH007529-01,02 137,719.02
National Institute for Occupational Safety and Health 93.262 5 R01 OH07679-01,02, 3,470.81
National Institute for Occupational Safety and Health 93.262 1 R01 OH007976-01 145,358.54
National Institute for Occupational Safety and Health 93.262 2 R01 0H007364-04 791.48
National Institute for Occupational Safety and Health 93.262 5 R01 0H07364-05 273,188.16
Centers for Disease Control and Prevention 93.263 NIOSH 200-2005-M-125 5,418.62
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 0.04
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 547.06
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 (3.83)
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 (0.70)
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 342.60

48
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

Centers for Disease Control and Prevention 93.263 1 T42 OH008432-01 4,521.06
Centers for Disease Control and Prevention 93.263 1 T42 OH008432-01 6,668.57
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 28,345.57
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 30,549.20
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 199,965.19
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 25,031.36
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 231,211.14
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 262,391.83
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 177,785.81
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 56,721.66
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 81,861.17
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 3,987.89
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 5,911.52
Centers for Disease Control and Prevention 93.263 3 T42 OH008432-02S1 25,579.26
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 87,839.65
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 6,249.64
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 7,411.46
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 5,756.99
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 310.09
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 2,805.42
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 2,661.19
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 988.21
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 4,637.28
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 1,234.76
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 3,484.70
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 (25.48)
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 11,863.44
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 (0.03)
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 (62.92)
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 (20,546.40)
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 240.03
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 (2.96)
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 (0.10)
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 (0.04)
Centers for Disease Control and Prevention 93.263 5 T42 CCT510420-11 (0.02)
Centers for Disease Control and Prevention 93.263 1 T42 OH008432-01 19,186.28
Centers for Disease Control and Prevention 93.263 1 T42 OH008432-01 14,530.28
Centers for Disease Control and Prevention 93.263 1 T42 OH008432-01 28,875.99
Centers for Disease Control and Prevention 93.263 1 T42 OH008432-01 (10,129.92)
Centers for Disease Control and Prevention 93.263 1 T42 OH008432-01 0.09
Centers for Disease Control and Prevention 93.263 1 T42 OH008432-01 213.50
Centers for Disease Control and Prevention 93.263 1 T42 OH008432-01 (10,127.78)
Centers for Disease Control and Prevention 93.263 1 T42 OH008432-01 (18,588.94)
Centers for Disease Control and Prevention 93.263 1 T42 OH008432-01 15,673.59
Centers for Disease Control and Prevention 93.263 1 T42 OH008432-01 18,471.11
Centers for Disease Control and Prevention 93.263 1 T42 OH008432-01 2,206.25
Centers for Disease Control and Prevention 93.263 1 T42 0H008432-01 4.80
Centers for Disease Control and Prevention 93.263 1 T42 0H008432-01 2,176.20
Centers for Disease Control and Prevention 93.263 1 T42 0H008432-01 4,181.53
Centers for Disease Control and Prevention 93.263 1 T42 0H008432-01 4,690.91
Centers for Disease Control and Prevention 93.263 1 T42 0H008432-01 291.18
Centers for Disease Control and Prevention 93.263 1 T42 OH008432-01 3,192.14
Centers for Disease Control and Prevention 93.263 1 T42 OH008432-01 4,628.44
Centers for Disease Control and Prevention 93.263 5 T42 OH008432-02 78,502.23
National Institute on Alcohol Abuse and Alcoholism 93.271 5 K02 AA00319-02,02S 114,066.67

49
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Institute on Alcohol Abuse and Alcoholism 93.273 5 R01 AA013307-01A2,02 402,536.95
National Institute on Alcohol Abuse and Alcoholism 93.273 5 R01 AA013957-01A1,02 659,924.28
National Institute on Alcohol Abuse and Alcoholism 93.273 5 R21 AA014014-01,02 107,433.08
National Institute on Alcohol Abuse and Alcoholism 93.273 3 R01 AA013957-03S1, 11,694.44
National Institute on Drug Abuse 93.278 NIOSH PO# 211-2005-M 9,099.60
National Institute on Drug Abuse 93.279 5 U10 DA13732-05 (4,804.64)
National Institute on Drug Abuse 93.279 5 U10 DA13732-05S1 (5,847.25)
National Institute on Drug Abuse 93.279 2 U10 DA13732-06 358,130.04
National Institute on Drug Abuse 93.279 3 U10 DA13732-06S1 205,056.00
National Institute on Drug Abuse 93.279 3 UI0 DA13732-06 SUP 520,502.01
National Institute on Drug Abuse 93.279 5 U10 DA013732-07 1,818,165.36
National Institute on Drug Abuse 93.279 5 U10 DA013732-07 5,797.85
National Institute on Drug Abuse 93.279 3 U10 DA013732-07S1 626,861.32
National Institute on Drug Abuse 93.279 5 R01 DA14644-01,02,03 8,028.95
National Institute on Drug Abuse 93.279 5 R01 DA07427-07,08,09 22,105.92
National Institute on Drug Abuse 93.279 5 R21 DA14189-01,02,03 (616.05)
National Institute on Drug Abuse 93.279 5 R01 DA13471-01,02,03 (781.36)
National Institute on Drug Abuse 93.279 5 R01 DA13471-01,02,03 (6,531.97)
National Institute on Drug Abuse 93.279 5 RO1 DA14591-01,02,03 (1.48)
National Institute on Drug Abuse 93.279 5 RO1 DA16778-01A1,02 266,003.30
National Institute on Drug Abuse 93.279 5 R01 DA17399-01,02,03 275,575.92
National Institute on Drug Abuse 93.279 5 R21 DA019261-0 200,726.38
National Institute on Drug Abuse 93.279 1 R01 DA017323-01A2 7,199.91
National Institute on Drug Abuse 93.279 5 R01 DA14644-05S1 (4,186.58)
National Institute on Drug Abuse 93.279 2 R01 DA07427-12A1 280,393.71
National Institute on Drug Abuse 93.279 5 R21 DA022148-01, 02 125,817.34
National Institute on Drug Abuse 93.279 1 K01 DA020485-01A1 98,027.10
National Institute on Drug Abuse 93.279 5 R01 DA022221-01,02 187,827.74
National Institute of Mental Health 93.281 5 K23 MH63373-01,02,03 91,380.72
National Institute of Mental Health 93.281 5 K23 MH67705-01A2,2 161,127.98
National Institute of Mental Health 93.281 5 K23 MH70849-01,2,3 168,497.81
National Institute of Mental Health 93.282 5 K23 MH064086-01,02 171,493.59
National Institutes of Health 93.286 1 R21 EB005042-02 105,083.20
National Institutes of Health 93.286 1 R21 EB005042-02 83,574.02
National Institutes of Health 93.286 1 R21 EB007244-01 19,198.91
National Institutes of Health 93.286 1 R21 EB007244-01 2,433.68
National Institutes of Health 93.286 1R21 EB007335-01 11,946.79
National Institutes of Health 93.286 5 R21 EB02361-01,02 (990.46)
National Institutes of Health 93.286 1 R21 EB003938-01 136,998.16
National Institutes of Health 93.286 5 R21 EB003979-02 203,349.41
National Institutes of Health 93.286 1R21 EB004859-02 156,747.56
National Center for Research Resources 93.306 5 K26 RR17024-01A1,02 76,042.61
National Center for Research Resources 93.333 1 S10 RR19077-01 (3,707.72)
Bureau of Health Professions 93.358 1 A10HP00227-07-00 72,434.00
National Institute of Nursing 93.361 1 F31 NR009727-01 6,025.59
National Institute of Nursing 93.361 1 R01 NR05352-01A1 (33.96)
National Institute of Nursing 93.361 5 K23 NR008716-01,02 114,910.32
Health Resources Services Administration 93.365 HRSA-U1EMC07655-01-0 81,128.95
National Center for Research Resources 93.389 1 K01 RR020360-01A1 101,038.25
National Center for Research Resources 93.389 1 S10 RR022509-01 6,940.00
National Center for Research Resources 93.389 1 R01 RR023190-01 I 168,981.85
National Center for Research Resources 93.389 1 P20 RR023486-01 84,493.61
National Center for Research Resources 93.389 5 K30 RR022273-01, 02 193,901.85
National Center for Research Resources 93.389 1 K30 RR022273-01,02 15,623.12
National Heart, Lung, and Blood Institute 93.390 1 R15 GM067639-01 13,751.69

50
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Cancer Institute 93.393 5 UO1 CA76293-05 (578.20)

National Cancer Institute 93.393 2 UO1 CA76293-06A2 593,683.86
National Cancer Institute 93.393 2 UO1 CA76293-06A2 50,944.44
National Cancer Institute 93.393 2 U01 CA076293-07 93,819.77
National Cancer Institute 93.393 2 U01 CA076293-07 756,334.59
National Cancer Institute 93.393 1 U01 CA120475-01A1 71,437.31
National Cancer Institute 93.393 5 R01 CA095925-01,02 170,363.02
National Cancer Institute 93.393 5 R03 CA10294-01,02 764.14
National Cancer Institute 93.393 5 R01 CA097099-02-05 205,186.55
National Cancer Institute 93.393 2 R01 CA90522-07 A1 253,521.92
National Cancer Institute 93.393 1 R01 CA112532-01A 203,818.14
National Cancer Institute 93.393 5 P01 CA096964-02 (307.50)
National Cancer Institute 93.393 5 P01 CA096964-02 (9.48)
National Cancer Institute 93.393 5 P01 CA096964-03 800.10
National Cancer Institute 93.393 5 P01 CA096964-03 (26,907.71)
National Cancer Institute 93.393 5 P01 CA096964-03 6,903.19
National Cancer Institute 93.393 5 P01 CA096964-03 122,333.95
National Cancer Institute 93.393 5 P01 CA096964-03 (21,464.58)
National Cancer Institute 93.393 5 P01 CA096964-03 0.00
National Cancer Institute 93.393 5 P01 CA096964-03 746,373.51
National Cancer Institute 93.393 5 P01 CA096964-04 128,452.57
National Cancer Institute 93.393 5 P01 CA096964-04 831,410.95
National Cancer Institute 93.393 5 P01 CA096964-04 120,198.82
National Cancer Institute 93.393 5 P01 CA096964-04 274,571.16
National Cancer Institute 93.393 5 P01 CA096964-04 270,570.00
National Cancer Institute 93.393 5 P01 CA096964-04 356,673.63
National Cancer Institute 93.393 5 P01 CA096964-04 283,639.80
National Cancer Institute 93.393 5 P01 CA096964-04 43,028.48
National Cancer Institute 93.393 5 P01 CA096964-04 143,069.39
National Cancer Institute 93.393 5 P01 CA096964-05 16,863.33
National Cancer Institute 93.393 5 P01 CA096964-05 40,915.65
National Cancer Institute 93.393 5 P01 CA096964-05 17,070.00
National Cancer Institute 93.393 5 P01 CA096964-05 2,131.84
National Cancer Institute 93.393 5 R01 CA90934-01,02,03 208,417.75
National Cancer Institute 93.393 5 R01 CA94221-04 11,057.33
National Cancer Institute 93.393 5 R01 CA94221-03S1 3,316.23
National Cancer Institute 93.393 5 R01 CA62269-11 248,402.23
National Cancer Institute 93.393 5 R01 CA015776-26 250,158.92
National Cancer Institute 93.393 5 R01 CA112570-02,03 279,779.68
National Cancer Institute 93.393 1 R21 CA119006-01A1 55,019.56
National Cancer Institute 93.394 5 R24 CA095784-01,02 57,573.64
National Cancer Institute 93.395 5 R01 CA91878-01,02, 216,466.95
National Cancer Institute 93.395 5 R01 CA72039-05,06, 139,175.83
National Cancer Institute 93.395 5 R01 CA099996-05 224,767.11
National Cancer Institute 93.395 5 RO1 CA104804-01-05 333,060.22
National Cancer Institute 93.395 5 R01 CA95074-01,02,03 31,578.90
National Cancer Institute 93.396 2 U01 CA084291-07 (56,484.50)
National Cancer Institute 93.396 5 R01 CA90522-01,02,03 (1,326.98)
National Cancer Institute 93.396 5 R01 CA93404-01,02,03 231,655.35
National Cancer Institute 93.396 5 R01 CA072597-06,07 29,905.37
National Cancer Institute 93.396 5 R01 CA095286-01-05 246,371.35
National Cancer Institute 93.396 5 R01 CA096613-01,02 210,128.19
National Cancer Institute 93.396 5 RO1 CA104213-01 316,039.63
National Cancer Institute 93.396 5 RO1 CA100002-01,02 280,474.43
National Cancer Institute 93.396 5 R21 CA106257-01,02 12,120.05

51
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Cancer Institute 93.396 5 R01 CA106471-01,02 253,796.26

National Cancer Institute 93.396 2 R01 CA84463-05A1 (0.03)
National Cancer Institute 93.396 5 R01 CA096613-02,03 23,794.05
National Cancer Institute 93.396 1 R03 CA115258-01A2 37,845.77
National Cancer Institute 93.396 5 R01 CA096613-02,03 89,286.43
National Cancer Institute 93.396 1 R21 CA121402-01A1 102,590.67
National Cancer Institute 93.396 5 R01 CA120199-02 126,360.78
National Cancer Institute 93.396 5 R01 CA88041-01,02,03 26,966.96
National Cancer Institute 93.396 5 R01 CA88041-03 0.02
National Cancer Institute 93.396 5 RO1 CA078524-08 292,050.63
National Cancer Institute 93.396 1 R01 CA116777-01A1 209,105.68
National Cancer Institute 93.398 2 T32 CA059268-11A2 89,595.82
National Cancer Institute 93.398 1 T32 CA117846-01A1 114,161.30
National Cancer Institute 93.398 5 K08 CA89403-05 (8,511.32)
National Cancer Institute 93.398 7 K01 CA098743-06 151,325.08
National Cancer Institute 93.398 5 T32 CA59268-09 0.00
National Cancer Institute 93.398 5 T32 CA59268-10 3,652.06
National Cancer Institute 93.399 5 R01 CA114095-02 62,636.56
Administration for Children and Families 93.600 DHHS ACF 90YD0129/04 79,749.38
Administration for Children and Families 93.600 USDHHS 90YD0191/01 A 18,983.83
Administration for Children and Families 93.600 90YD0191 HEAD START 129,969.81
National Heart, Lung, and Blood Institute 93.837 5 T32 HL007382-28 0.00
National Heart, Lung, and Blood Institute 93.837 5 T32 HL007382-30 474,119.94
National Heart, Lung, and Blood Institute 93.837 5 F32 HL073614-03 2,348.82
National Heart, Lung, and Blood Institute 93.837 1 F31 HL081923-01 1,731.00
National Heart, Lung, and Blood Institute 93.837 5 F31 HL081923-02 27,756.48
National Heart, Lung, and Blood Institute 93.837 5 T32 HL007382-29 49,156.98
National Heart, Lung, and Blood Institute 93.837 5 R01 HL66044-01,02,03 15,999.38
National Heart, Lung, and Blood Institute 93.837 5 R01 HL66246-01A1,02 (59,197.16)
National Heart, Lung, and Blood Institute 93.837 5 R01 HL67965-01A1,02 27,512.67
National Heart, Lung, and Blood Institute 93.837 5 R01 HL67093-01A1,02 131,103.77
National Heart, Lung, and Blood Institute 93.837 5 R01 HL59888-08 194,830.83
National Heart, Lung, and Blood Institute 93.837 5 R37 HL074272-05 611,152.67
National Heart, Lung, and Blood Institute 93.837 5 R01 HL75297-04 300,351.45
National Heart, Lung, and Blood Institute 93.837 2 R01 HL62542-09 254,544.22
National Heart, Lung, and Blood Institute 93.837 5 R01 HL026057-27 328,189.99
National Heart, Lung, and Blood Institute 93.837 5 R01 HL075633-03 356,132.78
National Heart, Lung, and Blood Institute 93.837 5 RO1 HL61974-07,08 19,162.05
National Heart, Lung, and Blood Institute 93.837 2 R01 HL64018-08 336,747.99
National Heart, Lung, and Blood Institute 93.837 5 R01 HL066062-06A1 306,867.71
National Heart, Lung, and Blood Institute 93.837 5 R01 HL066062-06A1 30,412.62
National Heart, Lung, and Blood Institute 93.837 1 R01 HL083236-01 342,841.77
National Heart, Lung, and Blood Institute 93.837 1 R21 HL084648-01A1 114,239.15
National Heart, Lung, and Blood Institute 93.837 1 R01 HL082734-01A1 161,488.94
National Heart, Lung, and Blood Institute 93.837 5 R01 HL079599-02 406,456.13
National Heart, Lung, and Blood Institute 93.837 5 R01 HL65915-07 114,946.16
National Heart, Lung, and Blood Institute 93.837 1 R01 HL085222-01 272,427.10
National Heart, Lung, and Blood Institute 93.837 5 R01 HL080008-02 378,049.41
National Heart, Lung, and Blood Institute 93.837 7 R01 HL070860-04 53,795.52
National Heart, Lung, and Blood Institute 93.837 7 R01 HL076684-03 190,763.39
National Heart, Lung, and Blood Institute 93.837 1 R01 HL078806-01A2 178,404.19
National Heart, Lung, and Blood Institute 93.837 1 R01 HL078806-01A2 17,009.43
National Heart, Lung, and Blood Institute 93.837 1 R01 HL078806-01A2 11,865.42
National Heart, Lung, and Blood Institute 93.837 1 R21 HL084539-01A1 57,970.19
National Heart, Lung, and Blood Institute 93.837 1 R01 HL087246-01 57,213.97

52
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Heart, Lung, and Blood Institute 93.837 1 R01 HL087861-01 34,316.90
National Heart, Lung, and Blood Institute 93.837 1 R01 HL089067-01A2 9,020.05
National Heart, Lung, and Blood Institute 93.837 5 R01 HL70174-01,02,03 (15,476.68)
National Heart, Lung, and Blood Institute 93.837 5 P01 HL22619-25 (0.04)
National Heart, Lung, and Blood Institute 93.837 5 P01 HL22619-25 (785.56)
National Heart, Lung, and Blood Institute 93.837 5 P01 HL22619-25 (1,005.45)
National Heart, Lung, and Blood Institute 93.837 5 P01 HL22619-25 88.63
National Heart, Lung, and Blood Institute 93.837 5 P01 HL22619-25 (1,499.85)
National Heart, Lung, and Blood Institute 93.837 1 P50 HL 77101-01 (2,912.95)
National Heart, Lung, and Blood Institute 93.837 1 P50 HL77101-01 (943.96)
National Heart, Lung, and Blood Institute 93.837 1 P50 HL77101-01 57,819.51
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101-02 171,710.29
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101-02 396,267.18
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101-02 519,461.00
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101-02 56,536.30
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101-02 139,480.42
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101-02 82,369.29
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101-02 128,930.51
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101-02 361,365.55
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101-02 386,260.00
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101-03 239,512.68
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101-03 70,995.73
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101-03 69,310.05
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101-03 100,765.43
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101-03 387,917.42
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101-03 186,415.97
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101-03 140,140.93
National Heart, Lung, and Blood Institute 93.837 5 P50 HL77101-02 344,998.74
National Heart, Lung, and Blood Institute 93.837 5 R01 HL59915-01,02,03 (7.07)
National Heart, Lung, and Blood Institute 93.837 5 R01 HL64018-01,02,03 0.15
National Heart, Lung, and Blood Institute 93.837 5 R01 HL28573-18,19,20 3,520.24
National Heart, Lung, and Blood Institute 93.837 5 R01 HL65915-01,02,03 (1,527.13)
National Heart, Lung, and Blood Institute 93.837 5 R01 HL70062-05 514,044.24
National Heart, Lung, and Blood Institute 93.837 5 R01 HL58010-05,06,07 11,268.92
National Heart, Lung, and Blood Institute 93.837 5 R01 HL061332-08 363,614.18
National Heart, Lung, and Blood Institute 93.837 5 RO1 HL071952-04 415,484.95
National Heart, Lung, and Blood Institute 93.837 5 R01 HL061974-06,07 281,327.12
National Heart, Lung, and Blood Institute 93.837 5 R01 HL61974-09 108,995.16
National Heart, Lung, and Blood Institute 93.837 5 R01 HL063034-08 422,849.57
National Heart, Lung, and Blood Institute 93.837 1 R01 HL080686-03 605,829.14
National Heart, Lung, and Blood Institute 93.837 2 R01 HL28573-23A1 160,290.75
National Heart, Lung, and Blood Institute 93.837 1 K99 HL087561-01 40,245.89
National Heart, Lung, and Blood Institute 93.837 5 R01 HL28573-23A1,24 13,554.99
National Heart, Lung, and Blood Institute 93.837 5 R01 HL61974-09 91.45
National Heart, Lung, and Blood Institute 93.837 7 K08 HL068867-05 133,274.01
National Heart, Lung, and Blood Institute 93.837 5 K08 HL081472-02 105,186.67
National Heart, Lung, and Blood Institute 93.837 1 K08 HL761939-01A1 (4,329.72)
National Heart, Lung, and Blood Institute 93.837 5 T32 HL07571-20 (25,865.62)
National Heart, Lung, and Blood Institute 93.838 5 R01 HL64570-01,02,03 96,202.85
National Heart, Lung, and Blood Institute 93.838 5 R01 HL065212-01,02 (57,779.19)
National Heart, Lung, and Blood Institute 93.838 5 R01 HL058687,05,06 1,181.80
National Heart, Lung, and Blood Institute 93.838 5 R01 HL57281-05,06,07 (16,100.35)
National Heart, Lung, and Blood Institute 93.838 5 R01 HL68861-05 118,814.62
National Heart, Lung, and Blood Institute 93.838 5 R01 HL58399-05A2,06 234,828.46
National Heart, Lung, and Blood Institute 93.838 5 R01 HL72068-04 549,507.10

53
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Heart, Lung, and Blood Institute 93.838 5 R01 HL076955-04 344,164.20
National Heart, Lung, and Blood Institute 93.838 5 RO1 HL059945-09 332,084.10
National Heart, Lung, and Blood Institute 93.838 5 R01 HL066312-08 273,732.58
National Heart, Lung, and Blood Institute 93.838 5 R01 HL068725-05 188,102.08
National Heart, Lung, and Blood Institute 93.838 1 R01 HL079193-03 280,605.06
National Heart, Lung, and Blood Institute 93.838 1 R01 HL077763-02 446,930.11
National Heart, Lung, and Blood Institute 93.838 1 R01 HL084171-02 362,106.46
National Heart, Lung, and Blood Institute 93.838 5 R37 HL33831-17,18,19 (0.01)
National Heart, Lung, and Blood Institute 93.838 5 R37 HL45967-11,12,13 (34.26)
National Heart, Lung, and Blood Institute 93.838 5 R21 HL72363-01,02,03 (38,747.25)
National Heart, Lung, and Blood Institute 93.838 1 R01 HL078900-02 300,964.45
National Heart, Lung, and Blood Institute 93.838 1 R21 HL086689-01 111,055.13
National Heart, Lung, and Blood Institute 93.838 1 R01 HL087871-01 55,795.57
National Heart, Lung, and Blood Institute 93.838 5 K02 HL072552-05 103,677.90
National Heart, Lung, and Blood Institute 93.838 1 R13 HL086443-01 20,000.00
National Heart, Lung, and Blood Institute 93.839 5 R01 HL072382-01A1,02 323,230.09
National Heart, Lung, and Blood Institute 93.839 5 R01 HL072382-03S1 39,422.11
National Institute of Arthriris, Musculoskeletal, and Skin Disease 93.846 5 R21 AG24484-01,02 108,852.65
National Institute of Arthriris, Musculoskeletal, and Skin Disease 93.846 1 R01 AR053207-01A2 3,189.21
National Institute of Arthriris, Musculoskeletal, and Skin Disease 93.846 5 R01 AR46574-01A1,0 (588.57)
National Institute of Arthriris, Musculoskeletal, and Skin Disease 93.846 5 R01 AR46574-02,03, (7,212.41)
National Institute of Arthriris, Musculoskeletal, and Skin Disease 93.846 5 R21 AR051702-01,02 33,368.70
National Institute of Arthriris, Musculoskeletal, and Skin Disease 93.846 5 R21 AR051702-01,02 2,211.66
National Institute of Arthriris, Musculoskeletal, and Skin Disease 93.846 1 R13 AR051039-01 (1,101.64)
National Institute of Arthriris, Musculoskeletal, and Skin Disease 93.846 5 R01 AR46574-06, 07 418,805.22
National Institute of Arthriris, Musculoskeletal, and Skin Disease 93.846 5 R01 AR46574-06, 07 18,567.33
National Institute of Arthriris, Musculoskeletal, and Skin Disease 93.846 1 R13 AR054721 - 01 12,621.95
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK59630-04 44.05
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK59630 04 405.77
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK59630-04 0.01
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK59630-05 97,002.49
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK59630-05 (33,041.79)
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK59630-05 35,836.21
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK59630-05 5,175.66
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK59630-05 (2,931.27)
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK59630-05 9,224.82
National Institue of Diabetes and Digestive and Kidney Disease 93.847 1 R01 DK074361-01,02,03 30,042.48
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK59630-05 3,932.02
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK59630-05 1,339.47
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK059630-06 387,954.57
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK059630-06 278,386.96
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK059630-06 151,650.17
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK059630-06 130,789.80
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK059630-06 198,173.22
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK59630-05 7,375.38
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK059630-07 21,485.23
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK059630-07 12,420.88
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK059630-07 15,377.42
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK059630-07 11,825.56
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 U24 DK059630-07 18,588.25
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 T35 DK60444-04 (135.05)
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 T35 DK60444-05 72,681.08
National Institue of Diabetes and Digestive and Kidney Disease 93.847 2 T32 DK059803-06 39,326.96
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 T35 DK060444-06 7,516.04
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 T32 GM063483-03 (9,732.09)

54
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 T32 GM063483-04 16,120.09
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 T32 GM063483-05 251,322.80
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 F32 DK065434-03 3,250.00
National Institue of Diabetes and Digestive and Kidney Disease 93.847 1 F32 DK75255-01 39,467.48
National Institue of Diabetes and Digestive and Kidney Disease 93.847 1 F31 DK076185-01A1 29,178.00
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 T32 DK59803-05 61,682.43
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 R01 DK52134-05,06,07,08 131,584.73
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 R01 DK52134-05,06, 23,461.03
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 R01 DK61689-01,02, (1,647.79)
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 R01 DK063088-01,02 250,976.23
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 R01 DK61689-01,02,03 (34.36)
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 R01 DK063907-01,02 287,655.08
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 R01 DK54216-06,07,08 30,955.54
National Institue of Diabetes and Digestive and Kidney Disease 93.847 3 R01 DK52134-07S1 60,468.49
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 R01 DK017844-28,29 (0.40)
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 R01 DK48010-12,13,14 161,717.92
National Institue of Diabetes and Digestive and Kidney Disease 93.847 2 R01 DK57900-04A1,05 396,450.44
National Institue of Diabetes and Digestive and Kidney Disease 93.847 8 R01 DK054966-07,08 236,633.75
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 R01 DK48061-10 (149.19)
National Institue of Diabetes and Digestive and Kidney Disease 93.847 7 R01 DK061659-04,05 309,754.61
National Institue of Diabetes and Digestive and Kidney Disease 93.847 7 R01 DK067555-02,03 344,543.03
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 R01 DK061689-04 3,684.03
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 R01 DK073681-01,02 355,362.75
National Institue of Diabetes and Digestive and Kidney Disease 93.847 7 R01 DK66058-04,05 163,092.62
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 R01 DK069967-01A2,02 353,191.01
National Institue of Diabetes and Digestive and Kidney Disease 93.847 1 K01 DK75365-01,02 128,178.04
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 R01 DK073689-01A1,02 235,854.66
National Institue of Diabetes and Digestive and Kidney Disease 93.847 5 R01 DK073802-01, 02 374,755.01
National Institue of Diabetes and Digestive and Kidney Disease 93.847 1 R01 DK073505-01A1 233,028.06
National Institue of Diabetes and Digestive and Kidney Disease 93.847 1 K23 DK074440-01A1 71,404.32
National Institue of Diabetes and Digestive and Kidney Disease 93.847 1 R01 DK070992-01A2 62,240.98
National Institue of Diabetes and Digestive and Kidney Disease 93.847 1 R01 DK069845 - 01A 297,819.17
National Institue of Diabetes and Digestive and Kidney Disease 93.847 1 R01 DK074932-01A2 16,269.34
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 T32 DK64581-03 48,023.76
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 T32 DK64581-04 157,537.95
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 F32 DK67809-03 39,538.53
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 F32 DK75255-02 3,686.10
National Institue of Diabetes and Digestive and Kidney Disease 93.848 1 R01 DK069987-01A1 216,313.86
National Institue of Diabetes and Digestive and Kidney Disease 93.848 1 R21 DK075888-01A1 36,326.76
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 P01 DK56863-05 0.04
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 P01 DK56863-05 (0.04)
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 P01 DK56863-05 9,720.90
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 P01 DK56863-05 1,985.25
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 P01 DK56863-05 1,228.50
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 P01 DK56863-05 0.06
National Institue of Diabetes and Digestive and Kidney Disease 93.848 2 P01 DK56863-06A1 32,128.68
National Institue of Diabetes and Digestive and Kidney Disease 93.848 2 P01 DK56863-06A1 222,842.95
National Institue of Diabetes and Digestive and Kidney Disease 93.848 2 P01 DK56863-06A1 237,798.45
National Institue of Diabetes and Digestive and Kidney Disease 93.848 2 P01 DK56863-06A1 141,696.80
National Institue of Diabetes and Digestive and Kidney Disease 93.848 2 P01 DK56863-06 124,954.94
National Institue of Diabetes and Digestive and Kidney Disease 93.848 2 P01 DK56863-06 283,686.61
National Institue of Diabetes and Digestive and Kidney Disease 93.848 2 P01 DK56863-07 23,519.07
National Institue of Diabetes and Digestive and Kidney Disease 93.848 2 P01 DK56863-07 17,279.86
National Institue of Diabetes and Digestive and Kidney Disease 93.848 2 P01 DK56863-07 36,522.14
National Institue of Diabetes and Digestive and Kidney Disease 93.848 2 P01 DK56863-07 6,148.68

55
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Institue of Diabetes and Digestive and Kidney Disease 93.848 2 P01 DK56863-07 50,259.48
National Institue of Diabetes and Digestive and Kidney Disease 93.848 2 P01 DK56863-07 22,464.71
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 R01 DK56910-01,02,03 (882.74)
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 R01 DK51630-06,07,08 (3,464.45)
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 R01 DK54080-05,06,07 98,803.49
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 R01 DK053548-05 100,055.74
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 R01 DK66596-01,02,03 271,040.23
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5R01 DK064885-01A1,0 218,729.24
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 R01 DK66223-01A1,02 202,641.95
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 R01 DK42457-11,12 24,698.67
National Institue of Diabetes and Digestive and Kidney Disease 93.848 1 R01 DK067416-01A1 411,275.15
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 R01 DK056029-06A,071 447,281.02
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 R01 DK54890-04,05,06 11.75
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 R01 DK017844-26, 27 (15.54)
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 R01 DK43816-09,10,11 157,440.82
National Institue of Diabetes and Digestive and Kidney Disease 93.848 7 R01 DK054940-07, 08 371,554.81
National Institue of Diabetes and Digestive and Kidney Disease 93.848 9 R01 DK073552-06A1 212,448.32
National Institue of Diabetes and Digestive and Kidney Disease 93.848 1 R01 DK068273-012A2 294,388.73
National Institue of Diabetes and Digestive and Kidney Disease 93.848 8 R01 DK67550-01A2, 286,567.29
National Institue of Diabetes and Digestive and Kidney Disease 93.848 1 R01 DK071125 - 01A 68,728.30
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 K24 DK070528-01,02 101,120.22
National Institue of Diabetes and Digestive and Kidney Disease 93.848 1 R13 DK072697-01 710.00
National Institue of Diabetes and Digestive and Kidney Disease 93.848 5 T32 DK64581-02 (1,618.57)
National Institue of Diabetes and Digestive and Kidney Disease 93.849 1 R21 DK066589-01,02 (9.10)
National Institue of Diabetes and Digestive and Kidney Disease 93.849 1 R01 DK062809-01A1 358,696.31
National Institue of Diabetes and Digestive and Kidney Disease 93.849 5 R37 DK50594-10, 11 478,781.69
National Institue of Diabetes and Digestive and Kidney Disease 93.849 5 R37 DK50594-10, 11 52,066.56
National Institue of Diabetes and Digestive and Kidney Disease 93.849 5 R01 DK57552-01,02,03 14,808.40
National Institue of Diabetes and Digestive and Kidney Disease 93.849 5 R01 DK057552-05A2, 06 160,342.94
National Institue of Diabetes and Digestive and Kidney Disease 93.849 5 R37 DK 50594-11,12 8,340.64
National Institue of Diabetes and Digestive and Kidney Disease 93.849 1 R01 DK068568-01A2 167,884.43
National Institue of Diabetes and Digestive and Kidney Disease 93.849 1 R01 DK071802-01A1 207,266.32
National Institue of Diabetes and Digestive and Kidney Disease 93.849 1R21 DK078006-01 26,421.00
National Institute of Neurological Disorders and Stroke 93.853 1 U01 NS052220-01 1,282,447.64
National Institute of Neurological Disorders and Stroke 93.853 1 U01 NS052220-01 31,229.58
National Institute of Neurological Disorders and Stroke 93.853 1 U01 NS052220-01 23,082.01
National Institute of Neurological Disorders and Stroke 93.853 1 U01 NS052220-01 50,612.39
National Institute of Neurological Disorders and Stroke 93.853 1 U01 NS052220-01 (27,603.89)
National Institute of Neurological Disorders and Stroke 93.853 1 U01 NS052220-01 16,568.02
National Institute of Neurological Disorders and Stroke 93.853 1 U01 NS052220-01 46,319.60
National Institute of Neurological Disorders and Stroke 93.853 1 U01 NS052220-01 191,580.07
National Institute of Neurological Disorders and Stroke 93.853 5 U01 NS052220-02 492,608.78
National Institute of Neurological Disorders and Stroke 93.853 5 U01 NS052220-02 19,579.31
National Institute of Neurological Disorders and Stroke 93.853 1 R34 NS049722 (3,473.80)
National Institute of Neurological Disorders and Stroke 93.853 1 R34 NS049722 0.02
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS039087-07 777,107.54
National Institute of Neurological Disorders and Stroke 93.853 5 T32 NS07453-08 (877.00)
National Institute of Neurological Disorders and Stroke 93.853 3 T32 NS004753-08S1 97.00
National Institute of Neurological Disorders and Stroke 93.853 1 F32 NS047841-01A1 3,352.42
National Institute of Neurological Disorders and Stroke 93.853 1 T32 NS047996-01 43,832.86
National Institute of Neurological Disorders and Stroke 93.853 1 T32 NS047996-01 42,686.73
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS044972-01,02 164,376.29
National Institute of Neurological Disorders and Stroke 93.853 3 R01 NS042308-01A2S (6,055.81)
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS049172-01,02 160,167.92
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS035313-05A2, 324,965.33

56
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS049428-01, 02 281,907.79
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS049428-01, 02 60,849.26
National Institute of Neurological Disorders and Stroke 93.853 7 R03 NS048188-03 40,403.44
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-03 (2,304.75)
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-03 446.82
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-04 4,408.46
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-04 85,011.55
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-04 30,729.23
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-04 17,084.76
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-04 25,130.92
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-04 13,640.50
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-04 108,950.17
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-04 6,079.30
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-04 4,135.55
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 127,552.52
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 4,135.60
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 0.23
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 (2,735.86)
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 (0.07)
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 (0.21)
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 18,961.48
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 0.03
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 0.12
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 224,460.52
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 34,524.67
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 83,294.48
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 170,149.86
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 71,838.01
National Institute of Neurological Disorders and Stroke 93.853 5 P50 NS044283-05 82,094.29
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS30652-08A1,02 197,944.49
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS030652-08A1, 09 12,668.30
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS042798-01A1, 15,039.80
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS042308-01A2, 33,901.38
National Institute of Neurological Disorders and Stroke 93.853 7 R01 NS039128-04 34,238.11
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS046609-01A1,02 16,505.77
National Institute of Neurological Disorders and Stroke 93.853 7 R21 NS45566-03,04 0.01
National Institute of Neurological Disorders and Stroke 93.853 5 RO1 NS36695-07 (33.11)
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS039512-03 (89,248.97)
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS047603-01,02 34,642.70
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS047603-01,02 11,761.78
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS047603-01,02 346,870.19
National Institute of Neurological Disorders and Stroke 93.853 7 R01 NS040396-5 82,531.72
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS047603-01,02 21,430.18
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS030678-12 285,202.45
National Institute of Neurological Disorders and Stroke 93.853 5 RO1 NS36695-08 74,705.76
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS045594-01,02 271,148.21
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS30678-12 (3,721.52)
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS030678-12 (0.05)
National Institute of Neurological Disorders and Stroke 93.853 2 RO1 NS36695-08 0.26
National Institute of Neurological Disorders and Stroke 93.853 2 R01 NS36695-08 36,441.06
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS050569-01A1,02 416,924.99
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS050569-01A1,02 6,088.39
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS039512-04 632,140.23
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS039512-04 17,280.69
National Institute of Neurological Disorders and Stroke 93.853 7 R01 NS045132-04 378,095.99

57
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Institute of Neurological Disorders and Stroke 93.853 5 K23 NS049463-01,02 162,390.38
National Institute of Neurological Disorders and Stroke 93.853 5 K23 NS049463-01,02 8,301.19
National Institute of Neurological Disorders and Stroke 93.853 3 R01 NS050569-01A1S 69,142.40
National Institute of Neurological Disorders and Stroke 93.853 1 K23 NS052468-01 (181.90)
National Institute of Neurological Disorders and Stroke 93.853 5 T32 NS007453-09 221,900.43
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS030678-13 559,962.63
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS030678-13 30,559.87
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS030678-13 1,102.86
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS36695-08 471,806.29
National Institute of Neurological Disorders and Stroke 93.853 5 RO1 NS36695-08 30,034.99
National Institute of Neurological Disorders and Stroke 93.853 5 RO1 NS36695-08 282,556.73
National Institute of Neurological Disorders and Stroke 93.853 5 RO1 NS039512-01,02 1,316,588.22
National Institute of Neurological Disorders and Stroke 93.853 5 R01 NS039512-01,02 527,334.43
National Institute of Neurological Disorders and Stroke 93.853 1 R01 NS052700-01A1 0.00
National Institute of Neurological Disorders and Stroke 93.853 1 K02 NS 056253-1 8,019.13
National Institute of Neurological Disorders and Stroke 93.853 1 R01 NS055295-01A1 192,809.61
National Institute of Neurological Disorders and Stroke 93.853 1 R01 NS052700-01A1, 375,656.16
National Institute of Neurological Disorders and Stroke 93.853 5 K02 NS056253-01,02 148,316.36
National Institute of Neurological Disorders and Stroke 93.853 5 K23 NS052468-02 163,000.81
National Institute of Neurological Disorders and Stroke 93.853 5 K23 NS02170-01,02, 316.64
National Institute of Neurological Disorders and Stroke 93.853 5 K23 NS041325-01,02 28.16
National Institute of Neurological Disorders and Stroke 93.853 5 K23 NS045054-01,02 127,495.93
National Institute of Neurological Disorders and Stroke 93.853 5 K23 NS045054-01,02 11,114.68
National Institute of Neurological Disorders and Stroke 93.853 1 K23 NS059843-01 12,155.00
National Institute of Allergy and Infectious Disease 93.855 1 R01 AI064893-01A2 5,847.43
National Institute of Allergy and Infectious Disease 93.855 5 R01 AI065256-01A1,02 500,814.34
National Institute of Allergy and Infectious Disease 93.855 5 T32 AI060515-02 6,671.59
National Institute of Allergy and Infectious Disease 93.855 5 T32 AI060515-03 67,579.08
National Institute of Allergy and Infectious Disease 93.855 5 T32 AI060515-04 2,074.64
National Institute of Allergy and Infectious Disease 93.855 5 R01 AI52175-01,02,03 320,636.58
National Institute of Allergy and Infectious Disease 93.855 1 R01 AI067903-01 13,268.98
National Institute of Allergy and Infectious Disease 93.855 1 R21 AI067868-01A1 167,620.82
National Institute of Allergy and Infectious Disease 93.855 1 R13 AI069741-01 15,000.00
National Institute of Allergy and Infectious Disease 93.855 1 R13 AI071925-01 25,000.00
National Institute of Allergy and Infectious Disease 93.855 1 T32 AI060515-01 51.83
National Institute of Allergy and Infectious Disease 93.856 5 U01 AI025897-17 888.00
National Institute of Allergy and Infectious Disease 93.856 3 U01 AI025897-17S1 896,103.21
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI49508-01,02,03 (8,256.83)
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI49508-01,02,03 (229.77)
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI49358-01,02,03 316,604.05
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-02 65,215.42
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-02 0.00
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-02 (3,823.09)
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-02 0.00
National Institute of Allergy and Infectious Disease 93.856 5 T32 AI055406-04 282,106.80
National Institute of Allergy and Infectious Disease 93.856 5 T32 AI055406-02 (82.17)
National Institute of Allergy and Infectious Disease 93.856 5 T32 AI055406-03 74,444.96
National Institute of Allergy and Infectious Disease 93.856 5 F31 AI064121-02 26,003.99
National Institute of Allergy and Infectious Disease 93.856 5 F31 AI064121-03 7,074.20
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI23695-15,16,07 144,472.92
National Institute of Allergy and Infectious Disease 93.856 5 R21 AI054762-01,02 (11,929.29)
National Institute of Allergy and Infectious Disease 93.856 5 R03 AI57915-01,02 6,035.44
National Institute of Allergy and Infectious Disease 93.856 5 R21 AI60770-01,02 123,167.53
National Institute of Allergy and Infectious Disease 93.856 1 R21 AI061495-01A1 163,440.34
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI061497-01A1 239,717.27

58
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Institute of Allergy and Infectious Disease 93.856 5 R01 AI58159-01A2,02 285,770.43
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI36701-10,11 224,173.98
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI064084-01A1,02 204,182.99
National Institute of Allergy and Infectious Disease 93.856 3 R01 AI064084-02S1 12,856.96
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-03 171,878.97
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-03 172,782.61
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-04 11,107.71
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-03 194,724.21
National Institute of Allergy and Infectious Disease 93.856 5 P01 AI061298-03 177,796.67
National Institute of Allergy and Infectious Disease 93.856 PO1 AI061298-04 11,061.28
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI45715-01A1,02 365.72
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI41119-05,06,07 (11,838.85)
National Institute of Allergy and Infectious Disease 93.856 5 R37 AI42747-06,07,08 215,911.73
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI48455-03,04,05 (42,306.14)
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI50450-01A1,02 354,941.87
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI052099-01A1,02 247,661.65
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI055848-01,02 255,878.02
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI34361-11,12,13 406,613.92
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI36701-05A1,06 (1,541.44)
National Institute of Allergy and Infectious Disease 93.856 3 R01 AI052099-03S1 77,804.70
National Institute of Allergy and Infectious Disease 93.856 5 R01 AI062492-01A1,02 474,605.36
National Institute of Allergy and Infectious Disease 93.856 1 K23 AI068453-01A1 118,665.95
National Institute of Allergy and Infectious Disease 93.856 1 U01 AI69513-01 370,103.61
National Institute of Allergy and Infectious Disease 93.856 1 U01 AI69513-01 48,572.00
National Institute of Allergy and Infectious Disease 93.856 1 U01 AI69513-01 303,220.66
National Institute of General Medical Sciences 93.859 5 T32 GM08478-13 25,774.29
National Institute of General Medical Sciences 93.859 5 T32 GM008478-14 211,767.60
National Institute of General Medical Sciences 93.859 7 R01 GM063559-05 202,102.46
National Institute of General Medical Sciences 93.859 1 R01 GM076363-01A1 124,425.96
National Institute of General Medical Sciences 93.859 5 R01 GM61194-01,02,03 202,355.59
National Institute of General Medical Sciences 93.859 5 R01 GM62153-01,02,03 (1,452.31)
National Institute of General Medical Sciences 93.859 5 R01 GM54775-06,07 50,364.39
National Institute of General Medical Sciences 93.859 5 R01 GM54775-04A1,05 (41.57)
National Institute of General Medical Sciences 93.859 5 R01 GM54775-04A1,05 11,869.94
National Institute of General Medical Sciences 93.859 5 R01 GM50509-09,10,11 102,482.30
National Institute of General Medical Sciences 93.859 5 R01 GM 63855-01A1,02 267,827.13
National Institute of General Medical Sciences 93.859 5 R01 GM041399-13,14 262,918.58
National Institute of General Medical Sciences 93.859 5 R01 GM041803-14,15 208,364.19
National Institute of General Medical Sciences 93.859 5 R01 GM069547-01,02 274,960.61
National Institute of General Medical Sciences 93.859 5 R01 GM069547-01,02 37,647.15
National Institute of General Medical Sciences 93.859 1 R01 GM69845-01A1 246,758.72
National Institute of General Medical Sciences 93.859 5 R01 GM58843-07 262,881.71
National Institute of General Medical Sciences 93.859 5 R01 GM67991-01A2, 198,943.84
National Institute of General Medical Sciences 93.859 5 R25 GM72834-01,02 60,679.78
National Institute of General Medical Sciences 93.859 5 R01 GM072760-01A1, 233,452.89
National Institute of General Medical Sciences 93.862 5 R01 GM73169-02A3 239,819.13
National Institue of Child Health and Human Development 93.864 5 R01 HD39916-01,02, (885.60)
National Institue of Child Health and Human Development 93.864 5 K12 HD01256-07 (1,539.10)
National Institue of Child Health and Human Development 93.864 5 K12 HD01256-07 (830.50)
National Institue of Child Health and Human Development 93.864 5 K12 HD01256-07 (0.04)
National Institue of Child Health and Human Development 93.864 5 K12 HD01256-07 12.00
National Institue of Child Health and Human Development 93.864 5 K12 HD01256-08 73,072.57
National Institue of Child Health and Human Development 93.864 5 K12 HD01256-08 1,457.67
National Institue of Child Health and Human Development 93.864 5 K12 HD01256-08 78.82
National Institue of Child Health and Human Development 93.864 5 K12 HD01256-09 12,157.38

59
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Institue of Child Health and Human Development 93.864 1R21 HD050137-01A2 11,256.78
National Institue of Child Health and Human Development 93.865 5 U01 HD40565-04 0.07
National Institue of Child Health and Human Development 93.865 5 U10 HD27853-15 423.99
National Institue of Child Health and Human Development 93.865 5 U10 HD27853-15 0.01
National Institue of Child Health and Human Development 93.865 5 U01 HD39939-03 (1,386.05)
National Institue of Child Health and Human Development 93.865 1 R21 HD048512-02 182,956.06
National Institue of Child Health and Human Development 93.865 5 RO1 HD39419-01A2,02 3,050.29
National Institue of Child Health and Human Development 93.865 5 R01 HD40285 1A1,02 207,964.89
National Institue of Child Health and Human Development 93.865 5 R01 HD40363-01,02, 03 (326.88)
National Institue of Child Health and Human Development 93.865 5 RO1 HD34089-06,07, 08 51,637.14
National Institue of Child Health and Human Development 93.865 5 R01 HD26471-11A1,1 19,187.56
National Institue of Child Health and Human Development 93.865 7 R01 HD36888-05 (23.14)
National Institue of Child Health and Human Development 93.865 5 R01 HD031514-10,11 321,568.17
National Institue of Child Health and Human Development 93.865 5 U01 HD40565-05 0.05
National Institue of Child Health and Human Development 93.865 1 R01 HD49777-01 Cas (634.97)
National Institue of Child Health and Human Development 93.865 1 K12 HD051953-01 A 7,101.38
National Institue of Child Health and Human Development 93.865 1 K12 HD051953-01 C 2,423.38
National Institue of Child Health and Human Development 93.865 1 K12 HD051953-01 D 5,808.21
National Institue of Child Health and Human Development 93.865 1 K12 HD051953-01 CO 3,639.60
National Institue of Child Health and Human Development 93.865 5 R03 HD052838-01,02 40,364.74
National Institue of Child Health and Human Development 93.865 3 U01 HD040565-05S1 197,318.60
National Institue of Child Health and Human Development 93.865 5 K12 HD051953-02 76,287.49
National Institue of Child Health and Human Development 93.865 5 K12 HD051953-02 96,382.49
National Institue of Child Health and Human Development 93.865 5 K12 HD051953-02 50,179.30
National Institue of Child Health and Human Development 93.865 5 K12 HD051953-02 C 1,080.00
National Institue of Child Health and Human Development 93.865 5 K12 HD051953-02 MA 28,512.15
National Institue of Child Health and Human Development 93.865 5 K23 HD44556-01,02, 143,139.82
National Institue of Child Health and Human Development 93.865 5 R13 HD051237-01,02 5,000.00
National Institute on Aging 93.866 5 R01 AG12853-07A1,0 358,052.82
National Institute on Aging 93.866 5 R01 AG12962-06A2,0 268,617.25
National Institute on Aging 93.866 3 R01 AG12962-09S1 H 11,540.04
National Institute on Aging 93.866 5 R01 AG20249-02,03, 255,657.09
National Institute on Aging 93.866 5 R01 AG025881-01 323,656.44
National Eye Institute 93.867 5 R01 EY13755-01A1,0 101,641.48
National Eye Institute 93.867 5 R03 EY014207-01,02 (60,250.74)
National Eye Institute 93.867 5 R01 EY13168-04,05, 494,142.59
National Eye Institute 93.867 3 R01 EY13755-02S1 6,275.61
National Eye Institute 93.867 5 R01 EY015227-01,02 319,536.10
National Eye Institute 93.867 5 R01 EY010556-05,06 465,132.86
National Eye Institute 93.867 7 R01 EY012486-01 Th 208,618.38
National Eye Institute 93.867 5 R01 EY011845-05-06 231,601.46
National Eye Institute 93.867 5 RO1 EY015181-01,02 316,879.24
National Library of Medicine 93.879 5 G08 LM07853-04 "IA 431,702.89
National Library of Medicine 93.879 1 R03 LM08248-01,02 34,398.98
National Library of Medicine 93.879 1 R03 LM08248-01,02 (0.01)
National Library of Medicine 93.879 1 R21 HG002849-03--S (1,759.32)
National Library of Medicine 93.879 1 K22 LM008534-03 "E 114,261.31
Health Resources and Services Administration 93.884 1 D58 HP 00368-02 145.10
Health Resources and Services Administration 93.884 5 D12 HP 00168-03 (24.24)
Health Resources and Services Administration 93.884 5 D55 HP 00236-03 (8,134.40)
Health Resources and Services Administration 93.884 5 D55 HP 00236-03 SU (0.07)
Health Resources and Services Administration 93.884 5 D58 HP 00368-03 (1,218.82)
Health Resources and Services Administration 93.884 3 D58 HP00368-03-01 1,953.46
Health Resources and Services Administration 93.884 2 D54HP00168-04-00 A 24,662.21
Health Resources and Services Administration 93.884 5 D54HP00168-05-00 A 32,092.09

60
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

Health Resources and Services Administration 93.888 NLM PO# 467-MZ-50063 73,401.67
National Institute of Environmental Health Sciences 93.894 5 T32 ES07250-17 (9.00)
National Institute of Environmental Health Sciences 93.894 5 T32 ES10957-05 98,920.09
National Institute of Environmental Health Sciences 93.894 5 T32 ES07250-19 444,790.27
National Institute of Environmental Health Sciences 93.894 2 T32 ES10957-06 316,156.15
National Institute of Environmental Health Sciences 93.894 5 T32 ES07250-18 2,706.73
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-14 (7,231.86)
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-14 0.10
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-14 0.02
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-14 (3,345.08)
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-13 (29,593.18)
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-14 2,758.36
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-14 (50,957.98)
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-14 (0.02)
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-14 0.04
National Institute of Environmental Health Sciences 93.894 2 P30 ES06096-13 (94.53)
National Institute of Environmental Health Sciences 93.894 2 P30 ES06096-14 (274.80)
National Institute of Environmental Health Sciences 93.894 2 P30 ES06096-14 2,013.18
National Institute of Environmental Health Sciences 93.894 2 P30 ES06096-14 (25,722.55)
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 366,393.69
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 72,551.87
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 4,100.80
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 45,981.90
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 83,782.25
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 45,140.94
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 29,475.24
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 118,686.05
National Institute of Environmental Health Sciences 93.894 2 P30 ES06096-14 4,639.02
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 37,731.68
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 30,962.15
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 27,521.15
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 10,751.34
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 36,523.00
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 40,185.45
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 31,717.60
National Institute of Environmental Health Sciences 93.894 5 P30 ES06096-15 37,132.57
Health Resources and Services Administration 93.925 1 T08 HP04913-02 50,246.00
Centers for Disease Control and Prevention 93.946 1 U01 DP000188-01 (4,420.31)
Centers for Disease Control and Prevention 93.946 5 U01 DP000188-02 333,289.86
Centers for Disease Control and Prevention 93.946 5 U01 DP000188-03 32,488.00
Bureau of Health Professions 93.984 2 D54HP000168-04-00 32,057.57
Bureau of Health Professions 93.984 5 D54HP000168-05-00 126,157.04
National Institutes of Health 93.989 1 R03 TW007213-01A1 611.38

Total Department of Health and Human Services 102,772,444.78

Total Research and Development--Direct Cluster 119,994,621.57

RESEARCH AND DEVELOPMENT--Pass through:

Department of Agriculture:
Agricultural Research Service 10.001 ENV10-003-004-Egypt- 4,014.46

Total Department of Agriculture 4,014.46

61
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

Department of Defense:
Department of Defense 12 SILOAM BIO SUB ARMY 104,390.51
Department of Defense 12 UDRI sub Army RSC06 99,723.04
Department of Defense 12 GENERAL ELECTRIC GE 75,381.89
Department of Defense 12 UNIV DAYTON RI RSC05 65,172.20
Department of Defense 12 U OF DAYTON RES INST 65,163.36
Department of Defense 12 HEMERUS sub ARMY PC 48,665.66
Department of Defense 12 JXT Applications Arm 44,135.13
Department of Defense 12 UDRI RSC06003 sub AF 34,498.51
Department of Defense 12 ANTEON #5408-04-SC-0 32,246.32
Department of Defense 12 UES INC S-806-000-00 25,036.74
Department of Defense 12 CHEMAT SUB AF FA9550 23,496.57
Department of Defense 12 GNL DYNAMICS SUB ARM 20,182.97
Department of Defense 12 ISSI #SB03014 E SUB 10,742.64
Department of Defense 12 UTC 05-S508-010-08-C 7,733.69
Department of Defense 12 ANTEON #0060-42-SC-0 5,990.49
Department of Defense 12 UTC 05-S530-0002-34- 5,321.83
Department of Defense 12 UNIV OF VA GG10306-1 3,436.11
Department of Defense 12 Iowa State University (216.39)
Department of Defense 12 ManTech Geo Centers (1,786.00)
Department of Defense 12 UES INC S710-001-002 (1,966.90)
Department of Defense 12 IOWA STATE 404-25-93 (3,065.06)
Department of Defense 12 MCMASTER UNIVERSITY (5,296.09)
Department of Defense 12 MICROCOATING SBIR - (5,716.41)
Department of Defense 12 VA COMMONWEALTH UNIV (21,891.49)
Office of Naval Research 12.300 U CENT FLORIDA sub A 24,476.63
Department of Army 12.420 LIFECELL CORP - SUB 104,594.25
Department of Army 12.420 UKRF 4-65385-04-131 70,613.37
Army Research Office 12.431 NC A&T #441232E SUB 82,090.45
Army Research Office 12.431 U of Nevada Las Vega (299.22)
Department of the Air Force 12.800 AVETEC 2005-U-0001 S 481,423.88
Department of the Air Force 12.800 VA TECH SUB ARMY CR- 116,539.38
Department of the Air Force 12.800 UDRI RSC06054 sub AF 12,639.82

Total Department of Defense 1,523,457.88

Department of Housing and Urban Development:

Office of Healthy Homes and Lead Hazard Control 14.900 NAT CTR LEAD SAFE HS (28,899.48)

Total Department of Housing and Urban Development (28,899.48)

Department of Interior:
Geological Survey 15.805 OSURF 2006OH34B CHAR 28,090.09
Geological Survey 15.807 USC SUB USGS 0.01

Total Department of Interior 28,090.10

Department of Justice:
Department of Justice 16 AMERICAN STAT ASSOC SUB DOJ 5,253.00
Department of Justice 16 UNISYS CORP SUB FEDE 4,731.23

62
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

Office of Juvenile Justice and Delinquency Prevention 16.523 05-JB-010-FI36 SUB D 21,248.47
Office of Juvenile Justice and Delinquency Prevention 16.523 EVANSTON COMM COUNCI (259.52)
National Institute of Justice 16.562 2005 - DA-BK-K101 VI 70,977.40
National Institute of Justice 16.562 MONT & FLOYD CO 03-0 48,823.00
Bureau of Justice Assistance 16.579 OCJS TASER 11,098.11
Office of Justice 16.585 CUYAHOGA CO DRUG COU 68,443.23
Office of Justice 16.585 ERIE COUNTY SUB DOJ 20,000.00
National Institute of Corrections 16.602 05 P04183 SUB DOJ CI 1,797.31
Office of Justice Programs 16.738 ODPS SUB DOJ 2005-JG 40,609.83

Total Department of Justice 292,722.06

Department of Labor:
Department of Labor 17 CPWR SUB DOL J059E22 38,494.51
Department of Labor 17 CPWR/DOL-J059E22270 36,454.21
Department of Labor 17 CPWR/DOL J059E22270 (17,332.72)

Total Department of Labor 57,616.00

Department of Transportation
Federal Highway Administration 20.205 ODOT #11569 SUB FHA 183,696.52
Federal Highway Administration 20.205 ODOT 20979 SUB FHA D 55,680.59
Federal Highway Administration 20.205 ODOT 21104 SUB FHA " 53,089.67
Federal Highway Administration 20.205 ODOT 20397 SUB FHWA 32,906.73
Federal Highway Administration 20.205 ODOT 21104 SUB FHA " 23,160.54
Federal Highway Administration 20.205 ODOT #11569 SUB FHA 18,943.78
Federal Highway Administration 20.205 ODOT #20359 SUB FHWA 15,014.71
Federal Highway Administration 20.205 ODOT #11855 SUB FHWA 12,968.78
Federal Highway Administration 20.205 ODOT 11494 SUB FHWA 7,900.44
Federal Highway Administration 20.205 ODOT 21372 Verificat 6,695.16
Federal Highway Administration 20.205 ODOT 20979 SUB FHA D 4,843.75
Federal Highway Administration 20.205 ODOT 11340 SUB FHWA 1,876.79
Federal Highway Administration 20.205 ODOT 20590, SUB FHWA 709.91
Federal Highway Administration 20.205 ODOT #10178 SUB FHWA (0.01)
Federal Highway Administration 20.205 ODOT #10178 SUB FHWA (393.20)
Federal Highway Administration 20.215 ODOT 20983 SUB FHA " 57,326.18
Research and Special Programs Administration 20.701 UNIV WIS A800295 SUB 32,348.99
Research and Special Programs Administration 20.701 MSU SubODOT 61-5678A 6,418.27
Research and Special Programs Administration 20.701 UNIV WIS A800295 SUB (20,007.45)

Total Department of Transportation 493,180.15

National Aeronautics and Space Administration:

National Aeronautics & Space Administration 43 NSBRI/JSC/NASA DETER 52,952.60
National Aeronautics & Space Administration 43 GE SUB NASA LOW NOIS 51,467.63
National Aeronautics & Space Administration 43 AVANT SUB NASA SBIR 7,357.88
National Aeronautics & Space Administration 43.001 OSURF(NASA-PROP 21) 77,941.49
National Aeronautics & Space Administration 43.001 OSURF(NASA-PROP 21) 52,344.41
National Aeronautics & Space Administration 43.001 OSURF(NASA-PROP 21) 50,209.65
National Aeronautics & Space Administration 43.001 NNH06CC28C SUB NASA 17,500.87
National Aeronautics & Space Administration 43.001 OSURF(NASA-PROP 21) 15,050.98
National Aeronautics & Space Administration 43.001 DCES/NASA UGRAD RES 6,833.00

63
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

Total National Aeronautics and Space Administration 331,658.51

National Science Foundation:

Directorate for Engineering 47.041 U OF MICHIGAN F01424 35,817.92
Directorate for Engineering 47.041 U OF VA SUB NSF CMS0 11,809.50
Directorate for Engineering 47.041 U OF COLO SUB NSF-15 1,080.61
Directorate for Engineering 47.041 ULRF SUB NSF BES-033 787.54
Directorate for Mathematical and Physical Sciences 47.049 OSURF NSF SUB 60004 15,512.28
Directorate for Geosciences 47.050 USC sub NSF EAR-0106 20,000.00
Directorate for Geosciences 47.050 HARVARD SUB NSF DEB- 0.14
Directorate for Geosciences 47.050 UKRF SUB NSF 4-67134 0.01
Directorate for Social, Behavioral and Economic Sciences 47.075 UCLA - sub NSF NIRT- 71,482.49
Directorate for Social, Behavioral and Economic Sciences 47.075 UNIV OF NEBRASKA SUB (12,847.81)
Directorate for Education and Human Resources 47.076 KSU sub NSF ESI-0628 3,773.07
Office of the Director 47.078 UNIV ALASKA SUB NSF 9,709.37

Total National Science Foundation 157,125.12

Environmental Protection Agency:

Environmental Protection Agency 66 Pegasus sub EPA: 06U 280,051.89
Environmental Protection Agency 66 Pegasus sub EPA: 06U 163,638.67
Environmental Protection Agency 66 Pegasus sub EPA: 24U 126,087.09
Environmental Protection Agency 66 Pegasus sub EPA: 20U 125,916.28
Environmental Protection Agency 66 Pegasus sub EPA: 14U 113,199.17
Environmental Protection Agency 66 Pegasus sub EPA: 17U 76,472.25
Environmental Protection Agency 66 CHRF SUB R82938901-0 61,744.39
Environmental Protection Agency 66 Pegasus sub EPA: T.S 58,133.08
Environmental Protection Agency 66 Pegasus sub EPA: 04U 53,562.83
Environmental Protection Agency 66 AWWA RF 02852 SUPPLE 48,787.15
Environmental Protection Agency 66 Pegasus sub EPA: 12U 46,267.23
Environmental Protection Agency 66 MALCOLM PIRNIE SUB A 42,521.36
Environmental Protection Agency 66 SHAW ENV SUB EPA PO# 38,357.22
Environmental Protection Agency 66 Pegasus sub EPA: 31U 35,013.02
Environmental Protection Agency 66 CHRF SUB EPA R829389 33,823.51
Environmental Protection Agency 66 Pegasus sub EPA: 04U 33,562.96
Environmental Protection Agency 66 Pegasus sub EPA: 18U 32,023.00
Environmental Protection Agency 66 Pegasus sub EPA: 05U 31,693.75
Environmental Protection Agency 66 Pegasus sub EPA: 08U 30,458.82
Environmental Protection Agency 66 Pegasus sub EPA: 36U 28,223.90
Environmental Protection Agency 66 Pegasus sub EPA: 02U 26,555.04
Environmental Protection Agency 66 HEI 4701-RFA03-2/03- 26,075.91
Environmental Protection Agency 66 Pegasus sub EPA: 23U 25,262.90
Environmental Protection Agency 66 Pegasus sub EPA: 07U 23,085.94
Environmental Protection Agency 66 Pegasus sub EPA: 05U 22,317.76
Environmental Protection Agency 66 Pegasus sub EPA: 12U 19,515.38
Environmental Protection Agency 66 Pegasus sub EPA: 03U 17,631.46
Environmental Protection Agency 66 Pegasus sub EPA: 14U 17,151.99
Environmental Protection Agency 66 Pegasus sub EPA: 29U 16,606.96
Environmental Protection Agency 66 Pegasus sub EPA: 40U 13,644.85
Environmental Protection Agency 66 Pegasus sub EPA: 07U 12,390.23
Environmental Protection Agency 66 Pegasus sub EPA: T.S 10,777.52
Environmental Protection Agency 66 CHRF SUB EPA R829389 6,939.93

64
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

Environmental Protection Agency 66 Pegasus sub EPA: 21U 6,466.29

Environmental Protection Agency 66 Pegasus sub EPA: 08U 5,520.11
Environmental Protection Agency 66 OEEF 06M-022 Ryan 4,469.97
Environmental Protection Agency 66 Pegasus sub EPA: 30U 4,063.32
Environmental Protection Agency 66 Pegasus sub EPA: 18U 2,873.14
Environmental Protection Agency 66 SHAW ENV SUB EPA EP 2,141.67
Environmental Protection Agency 66 Pegasus sub EPA: 37U 1,636.43
Environmental Protection Agency 66 Pegasus sub EPA: 17U 1,504.14
Environmental Protection Agency 66 BATTELLE 201086 SUB 768.04
Environmental Protection Agency 66 AEROMET TECH EPA EP- 9.64
Environmental Protection Agency 66 Pegasus sub EPA: 03U 0.04
Environmental Protection Agency 66 HEALTH EFFECTS INST (0.12)
Office of Research and Development 66.500 HDR/ESS ENGINEERING 27,802.71
Environmental Protection Agency 66.509 EMORY UNIV/EPA-RD-83 43,025.97
Environmental Protection Agency 66.509 EMORY UNIV/EPA-RD-83 2,771.08
Environmental Protection Agency 66.509 UC BERKELEY SUB EPA 0.04

Total Environmental Protection Agency 1,800,545.91

Department of Energy:
Department of Energy 81 ORISE/DOE/AFRL/HEP O 78,336.00
Department of Energy 81 MRI/DOE-Solar Decath 64,087.95
Department of Energy 81 UT-BATTELLE/DOE #400 60,875.23
Department of Energy 81 UT-BATTELLE SUB DOE 57,037.08
Department of Energy 81 TUSKEGEE U #30-22420 49,970.99
Department of Energy 81 Argonne National Lab 47,731.11
Department of Energy 81 ORISE/DOE/AFRL/HEP F 41,568.64
Department of Energy 81 UT-BATTELLE SUB DOE 31,582.93
Department of Energy 81 U CAL-LLNL NO. B5510 29,004.77
Department of Energy 81 ARGONNE NATIONAL LAB 17,016.67
Department of Energy 81 HONEYWELL PO# S00001 12,808.27
Department of Energy 81 FERMI/DOE CH0300000 10,000.00
Department of Energy 81 UT BATTELLE/DOE PO#4 8,588.59
Department of Energy 81 NC A&T / DOE (182.75)
Office of Science 81.049 CPWR/DOE EH06004 HAN 123,016.09
Office of Science 81.049 CPWR/DOE EH06004 HAN 82,669.21
Office of Science 81.049 CPWR/DOE-HANFORD #96 16,279.82
Office of Science 81.049 CPWR/DOE-SAVANNA #97 0.09
Office of Science 81.049 CPWR/DOE-HANFORD 96S (12,835.82)
Office of Fossil Energy 81.057 NEW MEX INST MINING 44,118.16
Office of Nuclear Energy 81.114 PENN STATE SUB DOE - 61,156.23

Total Department of Energy 822,829.26

Department of Education:
01001400 US DEPT. OF EDUCATION 84 HEZEL SUB ODE/USED 27,750.00
01001400 US DEPT OF EDUCATION 84 UNC CHAPEL HILL #5-3 2,259.37
01001400 US DEPT OF EDUCATION 84.215 OBR-HHS Grid P Educ 69,563.61
01001400 US DEPT OF EDUCATION 84.215 JASON PROJ/USED 39,999.96
01001400 US DEPT OF EDUCATION 84.215 CPS/USED SUPPORT HLT 1,157.77
01001400 US DEPT OF EDUCATION 84.323 ODE 062827-6B-SE-07 152,898.59
01001400 US DEPT OF EDUCATION 84.323 SCHL STUDY COUNCIL O 71,871.89
01001400 US DEPT OF EDUCATION 84.367 NKU 2006-105-4-02315 12,363.83

65
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

01001400 US DEPT OF EDUCATION 84.367 ODE TCAS TITLE IIA - 508.11

Total Department of Education 378,373.13

Department of Health and Human Services:

Department of Health and Human Services 93 ACCORD EYE STUDY N01 485.94
Department of Health and Human Services 93 UNC-CH SUB N01 MH900 53,531.88
Department of Health and Human Services 93 RTI N01-CP-01004 CON (41,124.08)
Department of Health and Human Services 93 HHSN275200603416C N0 32,108.32
Department of Health and Human Services 93 HHSN275200603416C N0 (0.02)
Department of Health and Human Services 93 CHMC CORNELL SUB GM0 11,935.50
Department of Health and Human Services 93 UNIV OF AL-BIRMINGHA 0.09
Department of Health and Human Services 93 OWH NATL WOMENS HEAL (88.45)
Office of Elementary and Secondary Education 93.007 WAKE FOREST SUB/WHI-MS NHLB 6,588.98
WAKE FOREST SUB/WHI-MS NHLBI
Office of Elementary and Secondary Education 93.007 year 04 86.92
Food and Drug Administration 93.103 MT SINAI SCHOOL OF M 17,610.34
Department of Health and Human Services 93.107 MODEL STATE SUPPORTE 26,808.34
Department of Health and Human Services 93.107 MODEL STATE SUPPORTE 56,471.00
Health Resources and Services Administration 93.110 HFM-6H30MC0015-16 "R 1,817.30
Health Resources and Services Administration 93.110 HFM-6H30MC0015-17 MC 9,202.00
Office of Elementary and Secondary Education 93.113 ILLINOIS UNIV. SUB ES012281-3 1,420.58
National Institute of Environmental Health Sciences 93.113 UAC SUB 5 R25 ES0771 (1,382.18)
National Institute of Environmental Health Sciences 93.113 UAC SUB ES007717-07 (18.43)
National Institute of Environmental Health Sciences 93.115 CHMC Sub T32 ES0070 15,579.00
National Institute of Environmental Health Sciences 93.115 CHMC sub ES14240 - A 14,957.24
National Institute of Environmental Health Sciences 93.115 CHMC SUB ES11261-05 39,311.87
National Institute of Environmental Health Sciences 93.115 CHMC SUB ES11261-05 3,420.89
National Institute of Environmental Health Sciences 93.115 GCOH SUB ES12093-01, 51,078.96
National Institute of Environmental Health Sciences 93.115 CHRF SUB 1 R21 ES012 0.02
National Institute of Environmental Health Sciences 93.113 DARTMOUTH SUB ES0138 95,797.89
Health Resources and Services Administration 93.134 U PITT SUB HRSA 5 R 6,553.23
Health Resources and Services Administration 93.134 LIFELINE OF OHIO S/H 17,603.83
National Institute of Environmental Health Sciences 93.142 ICWU SUB ES06162-13 (4,153.64)
National Institute of Environmental Health Sciences 93.142 ICWU SUB ES09758-14 (332.22)
National Institute of Environmental Health Sciences 93.142 ICWU SUB ES06162-13 7,481.33
National Institute of Environmental Health Sciences 93.142 ICWU SUB ES06162-HDP 1,114.44
National Institute of Environmental Health Sciences 93.142 ICWU SUB ES06162-14 520.25
National Institute of Environmental Health Sciences 93.142 ICWU SUB ES06162-15 42,501.42
National Institute of Environmental Health Sciences 93.142 ICWU SUB ES06162-HDP 3,242.17
National Institute of Environmental Health Sciences 93.142 ICWU SUB ES009758-15 3,100.93
Health Resources and Services Administration 93.145 U PITT SUB 2 H4A HA0 6,999.00
Health Resources and Services Administration 93.145 U PITT SUB 5 H4A HA0 (2,461.90)
Health Resources and Services Administration 93.145 U PITT SUB 5 H4A HA0 2,404.50
Health Resources and Services Administration 93.145 U PITT SUB-AETC 5 248,247.84
Centers for Disease Control and Prevention 93.161 U of M sub CDC TS000 17,076.54
National Institute on Deafness and Other Communication Disorders 93.173 COMPUSNIFF SUB 7 R44 14,778.92
National Institute on Deafness and Other Communication Disorders 93.173 COMPUSNIFF SUB 7 R44 4,812.46
National Institute on Deafness and Other Communication Disorders 93.173 OSMIC ENTERPRI 23,356.32
Centers for Disease Control and Prevention 93.184 SPECIAL OLYMPICS SUB 2,916.94
Centers for Disease Control and Prevention 93.185 CHMC SUB CDC U38CCU5 38,542.99
Centers for Disease Control and Prevention 93.185 CHMC SUB CDC U38CCU5 48,560.28
Health Resources and Services Administration 93.211 CASE WES SUB 1 D18 T 27,756.00
Health Resources and Services Administration 93.211 CASE WES SUB 1 D18 T 8,497.48

66
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Institute of Health 93.233 CHMC Sub HL080670/NI 8,683.88

National Institute of Mental Health 93.242 UCO SUB MH62456-01,0 (56.69)
National Institute of Mental Health 93.242 CHRF SUB MH074033-01 48,773.45
National Institute of Mental Health 93.242 CHRF SUB MH073816-02 9,013.66
National Institute of Mental Health 93.242 PHASE 2 DISCOVERY, I 63,190.81
National Institute of Mental Health 93.242 SUB/P2D 1 R43 MH0795 17,108.96
National Institute of Mental Health 93.242 CHRF SUB 5 R01 MH074 11,660.38
Substance Abuse and Mental Health Services Administration 93.243 IDAHO SUPREME COURTS 61,438.14
Substance Abuse and Mental Health Services Administration 93.243 CUYAHOGA CO SUB 6 H7 73,080.00
Substance Abuse and Mental Health Services Administration 93.243 ODADAS Adolescent Tr 67,224.07
National Institute for Occupational Safety and Health 93.262 OSU SUB R01 OH07787- 43,761.75
National Institute for Occupational Safety and Health 93.262 MSU SUB 1 R01 OH0749 5,205.16
National Institute for Occupational Safety and Health 93.262 U OF LOUISVILLE SUB (795.21)
National Institute for Occupational Safety and Health 93.262 UNIV OF LOUIS SUB OH 74,961.37
Substance Abuse and Mental Health Services Administration 93.275 CUYAHOGA CO. SUB SAM 30,240.58
National Institute on Drug Abuse 93.279 PHASE 2 DISC, INC SU (841.93)
National Institute on Drug Abuse 93.279 CHRF SUB 1 R01 DA019 3,203.17
National Institute on Drug Abuse 93.279 SUB/P2D 1 R43 DA0232 13,465.59
National Institute on Drug Abuse 93.279 BREF/NIDA-CSP-1022 11,044.31
Centers for Disease Control and Prevention 93.283 CINTI FND BIOMED RSC 87,979.90
Centers for Disease Control and Prevention 93.283 ODH 3140012AE6 SUB C (168,204.36)
Centers for Disease Control and Prevention 93.283 ODH 3140012AE06/CDC 175,698.47
Centers for Disease Control and Prevention 93.283 HFM-SUB CDC U27/CCU 3,159.68
Centers for Disease Control and Prevention 93.283 ODH 3140012AE07 200,513.19
Centers for Disease Control and Prevention 93.283 HFM-SUB CDC U27/CCU 12,585.70
Centers for Disease Control and Prevention 93.283 NCHH SUB CDC U59 CCU (8,027.53)
Centers for Disease Control and Prevention 93.283 NCHH SUB CDC U59 CCU 21,741.83
Centers for Disease Control and Prevention 93.283 AAMC SUB CDC MM-0971 7,683.82
Centers for Disease Control and Prevention 93.283 NCHH-07-1064 sub CDC 20,326.06
National Institutes of Health 93.286 CardioEnerge UC-Sub- 41,967.86
National Institutes of Health 93.286 U MICHIGAN SUB EB004 (27,469.18)
National Institutes of Health 93.286 U MICHIGAN SUB EB004 19,705.97
National Institutes of Health 93.286 UMICH SUB EB004527 101,530.69
National Institutes of Health 93.286 uMich EB004527-3 F01 29,314.32
National Center for Research Resources 93.306 CINCY ZOO SUB R24 RR 24,428.21
National Center for Research Resources 93.333 CHMC/SUB 5 M01 RR008 22,512.39
National Center for Research Resources 93.333 CHMC/SUB 5 M01 RR008 8,092.82
National Center for Research Resources 93.389 CHMC SUB 5 U54 RR019 (2,242.47)
National Center for Research Resources 93.389 CHMC SUB 5 U54 RR019 2,572.37
National Center for Research Resources 93.389 CHMC SUB 5 U54 RR019 45,212.30
National Center for Research Resources 93.389 NHGRI PO#263-MJ-6121 0.00
National Center for Research Resources 93.389 NHGRI PO#263-MJ-6121 10,506.37
National Cancer Institute 93.393 WASH UNIV SUB CA9364 179,722.02
National Cancer Institute 93.393 CHMC SUB R01 CA11218 19,756.35
National Cancer Institute 93.393 YESHIVA UNIV SUB R01 911.40
National Cancer Institute 93.393 WASH UNIV SUB CA0585 107,173.33
National Cancer Institute 93.394 ACRIN 6652 SUB CA080 9,961.55
National Cancer Institute 93.394 ACRIN 6667 SUB CA080 535.93
National Cancer Institute 93.394 ACRIN 6666 SUB CA080 2,583.19
National Cancer Institute 93.394 USC SUB-CA105145-02 106.18
National Cancer Institute 93.394 BAYLOR SUB 5 R01 CA7 13,864.44
National Cancer Institute 93.395 RTOG SUB NIH CA21661 29,635.65
National Cancer Institute 93.395 SWOG 5 U10 CA32102-2 0.01
National Cancer Institute 93.395 GOG #27469-33 CA(04) 51,912.02
National Cancer Institute 93.395 NSAPB TFED 187 41,233.53

67
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Cancer Institute 93.395 CHMC SUB R21 CA10348 (232.22)

National Cancer Institute 93.395 NCI 263-NQ-605827 - 27,817.66
National Cancer Institute 93.395 UN MICH SUB SWOG CA3 (0.03)
National Cancer Institute 93.395 UN MICH SUB SWOGCA32 786.49
National Cancer Institute 93.395 NCCF SUB U10 CA9854 (7,975.81)
National Cancer Institute 93.395 UN MICH SUB SWOGCA32 2,842.16
National Cancer Institute 93.395 UN MICH SUB SWOGCA32 1,172.30
National Cancer Institute 93.395 UN MICH SUB SWOGCA11 0.01
National Cancer Institute 93.395 UN MICH SUB SWOG CA1 121,263.19
National Cancer Institute 93.396 UMDNJ sub CA113863-0 (5,839.52)
National Cancer Institute 93.396 SLOAN-KETTG INST SUB 198.95
National Cancer Institute 93.396 SLOAN KETTG INST SUB 119,596.88
National Cancer Institute 93.396 UMDNJ SUB CA113863-0 10,091.40
National Cancer Institute 93.396 SLOAN KETTG INST SUB 36,352.89
National Cancer Institute 93.396 UNIV OF MICH SUB U24 0.00
National Cancer Institute 93.396 OSU SUB CA84291-07 77,119.21
National Cancer Institute 93.396 OSU U01 CA84291-A - 183,538.58
National Cancer Institute 93.396 OSU U01 CA84291-B - 75,487.50
National Cancer Institute 93.399 NSABP STAR PFEDERAL 22,671.11
National Cancer Institute 93.399 NSABP TIND 187 30,332.57
National Cancer Institute 93.399 BC CANCER AGNCY SUB 0.00
National Cancer Institute 93.399 BC CANCER AGNCY SUB 26,386.73
National Cancer Institute 93.399 BCCA SUB CA96109-05 21,533.95
Administration for Children and Families 93.558 OBR SUB TEAP TANF 210,940.00
Administration for Children and Families 93.558 OHIO DEPT OF REHAB & 2,996.04
Administration for Children and Families 93.558 OHIO DEPT REHAB 120,249.17
Administration for Children and Families 93.575 HCJFS/ODJFS SUB DHHS 61,345.26
Administration for Children and Families 93.575 HAM CO. JOB & FAM SV 62,407.26
Administration for Children and Families 93.600 CHCCAA SUB HHS/HEAD 1,694.08
Administration for Children and Families 93.600 CHCCAA SUB HHS/HEAD 210,401.55
Administration for Children and Families 93.600 CHCCAA sub HHS/HEAD 559,451.41
Administration for Children and Families 93.600 HCJFS #97824 EMPLOYA 11,065.57
Administration for Children and Families 93.658 OH DPT JF SVCS G-67- 104,522.97
Centers for Medicare and Medicaid Services 93.779 OBR/ODJFS SUB DHHS-C 108,716.35
National Institute of General Medical Sciences 93.821 NCSU SUB GM065156 01 51,865.01
Health Resources and Services Administration 93.822 CIN ST SUB HRSA 2D18 7,039.85
National Heart, Lung, and Blood Institute 93.837 DUKE SUB ACTION HL63 85,798.06
National Heart, Lung, and Blood Institute 93.837 CHMC SUB HL056370-07 (7,819.21)
National Heart, Lung, and Blood Institute 93.837 NWU 5R01 HL059586-6 38,060.39
National Heart, Lung, and Blood Institute 93.837 NRTHWSTRN UNIV SUB H (2,536.51)
National Heart, Lung, and Blood Institute 93.837 CHMC Sub HL056370-08 74,158.53
National Heart, Lung, and Blood Institute 93.837 NRTHWSTN U S/HL74002 41,438.60
National Heart, Lung, and Blood Institute 93.837 UTHC HL059586-6 via 11,251.30
National Heart, Lung, and Blood Institute 93.837 UTHC SUB HL74002-03 48,665.20
National Heart, Lung, and Blood Institute 93.837 U IL CHICAGO SUB HL0 68,647.23
National Heart, Lung, and Blood Institute 93.837 U OF IOWA SUB HL0629 153,674.05
National Heart, Lung, and Blood Institute 93.837 OSURF N01-HR-76189/H 18,204.08
National Heart, Lung, and Blood Institute 93.837 UTHC sub R01HL74002- 105,784.41
National Heart, Lung, and Blood Institute 93.837 Univ of Iowa sub HL0 51,539.30
National Heart, Lung, and Blood Institute 93.837 UTHC HL059586-6 via 26,471.67
National Heart, Lung, and Blood Institute 93.838 UPITT SUB R01 HL0741 55,630.31
National Heart, Lung, and Blood Institute 93.838 U WISC-MAD SUB HL559 (37,718.28)
National Heart, Lung, and Blood Institute 93.838 CHMC SUB HL072987-03 8,101.81
National Heart, Lung, and Blood Institute 93.838 CHMC SUB HL058795-08 4,608.80
National Heart, Lung, and Blood Institute 93.838 CHMC Sub HL072987-04 28,031.70

68
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Heart, Lung, and Blood Institute 93.838 UPITT SUB R01 HL0741 25,159.75
National Heart, Lung, and Blood Institute 93.839 CHMC sub 497 M1Clini 608.00
National Heart, Lung, and Blood Institute 93.839 CHMC sub 496 M1Clini 54,732.32
National Heart, Lung, and Blood Institute 93.839 CHRF SUB HL69779-04 (12,227.19)
National Heart, Lung, and Blood Institute 93.839 CHMC SUB HL70871-04 232,989.96
National Heart, Lung, and Blood Institute 93.839 CHMC SUB U54HL070871 26,319.77
National Heart, Lung, and Blood Institute 93.839 CHRF SUB HL69779-05 370,554.25
National Heart, Lung, and Blood Institute 93.839 CHMC SUB HL70871-5 56,151.92
National Heart, Lung, and Blood Institute 93.839 CHMC SUB HL70871-5 12,528.45
National Heart, Lung, and Blood Institute 93.839 CHMC SUB U54HL070871 6,565.23
National Heart, Lung, and Blood Institute 93.839 CHMC SUB U54-HL70871 78,631.29
National Heart, Lung, and Blood Institute 93.839 CHMC SUB U54HL070871 0.00
National Institute of Arthriris, Musculoskeletal, and Skin Disease 93.846 CHMC/SUB AR050688-01 34,636.13
National Institute of Arthriris, Musculoskeletal, and Skin Disease 93.846 UTHSC SUB AR44888-08 (5,829.68)
National Institute of Arthriris, Musculoskeletal, and Skin Disease 93.846 STANFORD SUB AR43584 (284.36)
National Institute of Arthriris, Musculoskeletal, and Skin Disease 93.846 CHMC SUB 5 R01 AR500 0.04
National Institute of Arthriris, Musculoskeletal, and Skin Disease 93.846 UTHSC SUB AR44888-09 8,728.11
National Institute of Arthriris, Musculoskeletal, and Skin Disease 93.846 CARDIOENERGETICS SUB 2,292.70
National Institute of Arthriris, Musculoskeletal, and Skin Disease 93.846 CHMC SUB 5 R01 AR500 17,037.67
National Institute of Diabetes and Digestive and Kidney Disease 93.847 CHMC SUB 482 DK07405 31,745.48
National Institute of Diabetes and Digestive and Kidney Disease 93.847 CHMC SUB 482 DK07405 14,698.97
National Institute of Diabetes and Digestive and Kidney Disease 93.847 Sub/U of Colo 1 U01 23,411.35
National Institute of Diabetes and Digestive and Kidney Disease 93.847 CWRU SUB N01-HC95181 1,520.26
National Institute of Diabetes and Digestive and Kidney Disease 93.847 CWRU SUB N01-HC-9518 122,065.96
National Institute of Diabetes and Digestive and Kidney Disease 93.847 CWRU SUB N01-HC-9518 23,919.36
National Institute of Diabetes and Digestive and Kidney Disease 93.847 CWRU SUB N01-HC-9518 56,593.47
National Institute of Diabetes and Digestive and Kidney Disease 93.847 ENTERA TECH SUB 1 R4 38,024.97
National Institute of Diabetes and Digestive and Kidney Disease 93.848 BU SUB 5 R01 DK59642 138,933.73
National Institute of Diabetes and Digestive and Kidney Disease 93.848 CHRF SUB 8 R01 DK068 71,743.44
National Institute of Diabetes and Digestive and Kidney Disease 93.848 CHRF/SUB DK068463-3 49,957.48
National Institute of Diabetes and Digestive and Kidney Disease 93.848 CHRF/5 R01 DK068463 38,505.06
National Institute of Neurological Disorders and Stroke 93.853 MAYO/NS028492-12 4,075.56
National Institute of Neurological Disorders and Stroke 93.853 YALE UNIV #05648 SUB 2,622.65
National Institute of Neurological Disorders and Stroke 93.853 MAYO CLINIC ROCHESTE 4,088.70
National Institute of Neurological Disorders and Stroke 93.853 JHU/5 R01 NS046309-0 29,750.71
National Institute of Neurological Disorders and Stroke 93.853 YALE/NS044876-03 (IR 45,846.60
National Institute of Neurological Disorders and Stroke 93.853 U.Roc/1 R01 NS037167 3,518.72
National Institute of Neurological Disorders and Stroke 93.853 U. Rochester/NS03716 15.35
National Institute of Neurological Disorders and Stroke 93.853 WASH U/NS042167-01,0 49,571.18
National Institute of Neurological Disorders and Stroke 93.853 CHMC SUB 1 R01 NS459 7.79
National Institute of Neurological Disorders and Stroke 93.853 MAYO/NS039987-01,02, 6,941.41
National Institute of Neurological Disorders and Stroke 93.853 UMDNJ/NS038384-06 11,881.46
National Institute of Neurological Disorders and Stroke 93.853 UKRF/5 R01 NS050311 29,273.53
National Institute of Neurological Disorders and Stroke 93.853 CHMC SUB R01 NS45911 (3,341.21)
National Institute of Neurological Disorders and Stroke 93.853 YALE/ NS044281-03 0.04
National Institute of Neurological Disorders and Stroke 93.853 CHMC/ 1 R21 NS051798 7,991.53
National Institute of Neurological Disorders and Stroke 93.853 IGF-I/ALS CLINICAL T 2,100.00
National Institute of Neurological Disorders and Stroke 93.853 U OF FLORIDA SUB NS0 4,773.48
National Institute of Neurological Disorders and Stroke 93.853 U01 NSO45911-03 VIA 5,409.30
National Institute of Neurological Disorders and Stroke 93.853 CHMC SUB U01 NS04591 13,037.15
National Institute of Neurological Disorders and Stroke 93.853 MAYO/NS042759 IGF-1A 17,106.89
National Institute of Neurological Disorders and Stroke 93.853 YALE/NS044281-04 160,730.30
National Institute of Neurological Disorders and Stroke 93.853 CHMC/5 R21 NS051798- 7,284.49
National Institute of Neurological Disorders and Stroke 93.853 U of Fla/NS038455-07 25,281.26
National Institute of Neurological Disorders and Stroke 93.853 U.Roch/5 U01 NS05009 2,924.98

69
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

National Institute of Neurological Disorders and Stroke 93.853 YALE/NS044876-03 Sup 22,883.38
National Institute of Allergy and Infectious Disease 93.855 CHRF SUB AI068524 12,786.15
National Institute of Allergy and Infectious Disease 93.855 SSS sub AI068636-01 3,189.09
National Institute of Allergy and Infectious Disease 93.855 CHMC sub AI055649 19,626.60
National Institute of Allergy and Infectious Disease 93.856 CHMC SUB AI32121-13 (16.71)
National Institute of Allergy and Infectious Disease 93.856 UOM #6286208301 SUB 18,746.40
National Institute of Allergy and Infectious Disease 93.856 U CHICAGO S/U54AI571 2,255.75
National Institute of Allergy and Infectious Disease 93.856 U CHICAGO SUB AI5715 48,198.27
National Institute of Allergy and Infectious Disease 93.856 SSS SUB AI38858-SHER 12,789.75
National Institute of Allergy and Infectious Disease 93.856 CHMC 201B-M1 S/AI254 (1,672.48)
National Institute of Allergy and Infectious Disease 93.856 U IOWA S/AI57192 PO# 1,514.84
National Institute of Allergy and Infectious Disease 93.856 CHMC 430 S/AI056927- 12,655.89
National Institute of Allergy and Infectious Disease 93.856 UCSF SUB AI052748-04 36,351.67
National Institute of Allergy and Infectious Disease 93.856 CHMC SUB AI32121-14 59,434.38
National Institute of Allergy and Infectious Disease 93.856 GLRCE-01 SUB NIAID/R 53,352.97
National Institute of Allergy and Infectious Disease 93.856 UNIV CHICAGO SUB 5 U 58,266.02
National Institute of Allergy and Infectious Disease 93.856 U CHICAGO SUB 5 U54 54,044.33
National Institute of Allergy and Infectious Disease 93.856 SOC & SCI SYS SUB AI 3,482.31
National Institute of Allergy and Infectious Disease 93.856 SOC & SCI SYS SUB AI 7,762.84
National Institute of Allergy and Infectious Disease 93.856 UCSF SUB AI52748-05 3,457.06
National Institute of General Medical Sciences 93.859 U OF WASHINGTON SUB 16,421.99
National Institute of General Medical Sciences 93.859 U WASH SUB GM032165- 41,654.35
National Institue of Child Health and Human Development 93.865 WVU SUB HD17864-18 (0.12)
National Institue of Child Health and Human Development 93.865 CHMC SUB HD37249-06 8,943.98
National Institue of Child Health and Human Development 93.865 CHRF SUB HD37249-07 4,143.34
National Institue of Child Health and Human Development 93.865 CHRF SUB HD37249-08 4,241.47
National Institue of Child Health and Human Development 93.865 CWRU/5 R01 HD49777-03 21,794.74
National Institue of Child Health and Human Development 93.865 CWRU/ 5 R01 HD49777-02 72,222.70
National Institue of Child Health and Human Development 93.865 CASE WESTRN U SUB 5R 29,764.39
National Institue of Child Health and Human Development 93.865 UTMB SUB HD40151-06 17,799.90
National Institue of Child Health and Human Development 93.865 CHRF SUB HD37249-09 3,337.87
National Institute on Aging 93.866 UKRF/5 P01 AG010836- 10,309.71
National Institute on Aging 93.866 UKRF/5 P01 AG10836 - 35,534.36
National Institute on Aging 93.866 IU/P30 AG010133 1,055.00
National Institute on Aging 93.866 LOTUS GRP S/AG023982 49.44
National Institute on Aging 93.866 CHMC/1 R21 AG025149- (5,285.20)
National Institute on Aging 93.866 CHMC/5 R21 AG025149- 9,597.16
National Institute on Aging 93.866 IU/P30 AG010133 269.91
National Eye Institute 93.867 PITT/2 R01 EY09368-1 124.84
National Eye Institute 93.867 ORE HSU/EY013139-05A 174,232.28
National Eye Institute 93.867 UIC/EY003890 26,782.92
National Eye Institute 93.867 PURDUE/EY018230-01 109,920.56
Health Resources and Services Administration 93.887 HRSA sub OBR-HHS Gri 137,611.83
Health Resources and Services Administration 93.888 OBR 3RD FRONTIER-HRS (46,152.91)
Health Resources and Services Administration 93.888 CASE WESTERN SUB # S 48,813.80
Health Resources and Services Administration 93.888 CASE WESTERN SUB # S 67,799.43
Health Resources and Services Administration 93.918 Cinti Health Network 500,250.07
Health Resources and Services Administration 93.918 Cinti Health Network 19,041.80
Centers for Disease Control and Prevention 93.940 CINTI BOH SUB CDC 55 636.00
Centers for Disease Control and Prevention 93.940 CINTI BOH SUB CDC / 46,378.01
Centers for Disease Control and Prevention 93.940 CINTI BOH SUB CDC / 8,991.34
Substance Abuse and Mental Health Services Administration 93.959 ODADAS #99-08028-CPR 236,707.43
Substance Abuse and Mental Health Services Administration 93.959 ODADAS #99-08028-CPR 30,546.61
Health Resources and Services Administration 93.969 UKRF SUB D31 HP70120 429.42
Centers for Disease Control and Prevention 93.977 CBOH SUB CDC STD/HIV (9,470.22)

70
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

Centers for Disease Control and Prevention 93.977 CBOH SUB CDC STD/HIV 26,299.24
Centers for Disease Control and Prevention 93.978 DALLAS SUB CDC STD/H 1,862.17
Centers for Disease Control and Prevention 93.991 ODH CVH STROKE 134.01
Centers for Disease Control and Prevention 93.991 ODH 3140012ED04/HEAR (134.01)
Centers for Disease Control and Prevention 93.991 ODH 3140012ED05/HEAR (2,805.92)
Centers for Disease Control and Prevention 93.991 ODH 3140012ED06/HEAR 80,630.94
Centers for Disease Control and Prevention 93.991 ODH 3140012ED07HEART 57,824.24
Health Resources and Services Administration 93.994 ODH/WOMEN'S HEALTH M (1.34)
Health Resources and Services Administration 93.994 ODH WOMENS HEALTH MO 7,916.17
Health Resources and Services Administration 93.994 ODH WOMENS HEALTH MO 897.15

Total Department of Health and Human Services 9,746,729.55

Total Research and Development--Pass through: 15,607,442.65

TOTAL RESEARCH AND DEVELOPMENT CLUSTER 135,602,064.22

OTHER

OTHER--Direct:
Department of Education:
Trio Cluster
Office of the Assistant Secretary for Postsecondary Education 84.042 USED P042A011227B SS (638.30)
Office of the Assistant Secretary for Postsecondary Education 84.042 USED P042A051055 SSS 282,281.90
Office of the Assistant Secretary for Postsecondary Education 84.044 USED P044A020499 ED 39,510.82
Office of the Assistant Secretary for Postsecondary Education 84.044 USEd P044A060201 TRI 253,931.79
Office of the Assistant Secretary for Postsecondary Education 84.047 USED P047A040244A UP 639,199.64
Office of the Assistant Secretary for Postsecondary Education 84.047 USED UPWARD BOUND P0 273,387.87
Office of Assistant Secretary for Postsecondary Education 84.066 USED EOC PROG P066A0 239,735.25

Total Trio Cluster 1,727,408.97

Other Department of Education:

Office of the Assistant Secretary for Postsecondary Education 84.116 USDE FIPSE 37,323.62
Office of the Assistant Secretary for Postsecondary Education 84.116 USED P116Z050329 FIP 13,163.14
Office of the Assistant Secretary for Postsecondary Education 84.116 USED P116J020017 9,244.69
Office of the Assistant Secretary for Postsecondary Education 84.116 USED FIPSE P116B0402 77,079.38
Office of the Assistant Secretary for Postsecondary Education 84.116 USED P116N040013 FIP 27,881.79
Office of the Assistant Secretary for Postsecondary Education 84.200 USED #P200A010440 10,889.00
Office of the Assistant Secretary for Postsecondary Education 84.217 USED P217A030205 R. 213,627.62
Office of Special Education and Rehabilitative Services 84.325 USED H325D030059 141,108.92
Office of Special Education and Rehabilitative Services 84.327 USED H327A060006 92,405.38
Office of the Assistant Secretary for Postsecondary Education 84.334 USED P334A990179 GEA 6,932.76
Office of the Assistant Secretary for Postsecondary Education 84.334 USED P334A020113 GEA 3,020,325.53
Office of the Assistant Secretary for Postsecondary Education 84.335 USED P335A010130 CCA (14,255.26)

Total Other Department of Education 3,635,726.57

Total Department of Education 5,363,135.54

71
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

Department of Defense:
Department of Defense 12 F49620-85-C-0027 (987.31)
Department of Defense 12 AF COMMUTATION COM04 8,825.12
Department of Defense 12 AF COMMUTATION COM05 10,335.40

Total Department of Defense 18,173.21

Department of Housing and Urban Development:

Policy Development and Research 14.512 HUD CDWS OH-04-120 4,824.88

Total Department of Housing and Urban Development 4,824.88

Department of Interior:
Department of Interior 15.923 MT-2210-05-NC-12 7,463.43

Total Department of Interior 7,463.43

Federal Mediation and Conciliation Service:

Federal Mediation and Conciliation Service 34.002 FMCS 06-OH/PS-001 1,898.31

Total Federal Mediation and Conciliation Service 1,898.31

National Endowment for the Humanities:

National Endowment for the Humanities 45.162 NEH EE-50122-04 RIOR 51,614.12
National Endowment for the Humanities 45.163 NEH-EZ-50065-04 SMIT 1,276.10
National Endowment for the Humanities 45.164 NEH GM-50299-04 HANC (3,026.67)

Total National Endowment for the Humanities 49,863.55

National Science Foundation:

Directorate for Engineering 47.041 NSF EEC-0227801 28,186.96
Directorate for Engineering 47.041 NSF EEC-0139438 250.00
Directorate for Engineering 47.041 NSF BES-0229135 REU 203.58
Directorate for Engineering 47.041 NSF ESI-0552126 IPA 193,552.31
Directorate for Engineering 47.041 NSF EEC 0601960 RET 128,359.80
Directorate for Mathematical and Physical Sciences 47.049 NSF CHE-0452387 REU 65,435.60
Directorate for Mathematical and Physical Sciences 47.049 NSF PHY-0457336 REU 2,948.28
Directorate for Biological Sciences 47.074 NSF DEB-0345990 343.12
Directorate for Biological Sciences 47.074 NSF DEB-0317687 492.00
Directorate for Education and Human Resources 47.076 NSF DUE-0126919 2,494.98
Directorate for Education and Human Resources 47.076 NSF DUE-0434086 34,131.50
Directorate for Education and Human Resources 47.076 NSF DUE-0434086 66,997.00
Directorate for Education and Human Resources 47.076 NSF DGE-0139312 (51,057.60)
Directorate for Education and Human Resources 47.076 NSF DGE-0139312 0.02
Directorate for Education and Human Resources 47.076 NSF DUE 0139312 (531.44)

Total National Science Foundation 471,806.11

72
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

Environmental Protection Agency:

Environmental Protection Agency 66.514 EPA Star Fellowship 3,782.00
Office of Grants and Debarment 66.607 EPA T-83041001 31,774.74
Office of Grants and Debarment 66.607 EPA T-83292901 RESEA 553,540.56
Office of Grants and Debarment 66.607 EPA T83056901 (ADMIN 156.00
Office of Grants and Debarment 66.607 EPA T83292901 Resear 35,225.91

Total Environmental Protection Agency 624,479.21

Department of Energy:
Office of Environmental Management 81.104 DE-FC24-06CC02020 60,704.54

Total Department of Energy 60,704.54

Total Other--Direct 6,602,348.78

OTHER--Pass through:
Department of Agriculture:
Food and Nutrition Service 10.558 ODE CACFP SUB USDA F (2,251.75)
Food and Nutrition Service 10.558 ODE CACFP SUB USDA F 8,923.93
Food and Nutrition Service 10.558 ODE CACFP SUB USDA F 27,641.95

Total Department of Agriculture 34,314.13

Department of Defense:
Department of Defense 12 UTC PRATT & WHIT #23 (0.20)
Department of Defense 12 UTC PRATT & WHIT #23 (0.05)
Department of Defense 12 UTC PRATT & WHIT #23 0.10
Department of Defense 12 UTC PRATT & WHIT #23 (623.11)
Department of Defense 12 UTC PRATT & WHIT #23 0.42
Department of Defense 12 UTC Pratt & Whitney 4,586.39
Department of Defense 12 MICROPHASE #071905TB (0.01)
Department of Defense 12 UTC Pratt & Whitney 3,767.39
Department of Defense 12 UTC Pratt & Whitney 4,668.31
Department of Defense 12 GE Sub Army PO L4F35 23,052.74
Department of Defense 12 UTC Pratt & Whitney 2,211.32
Department of Defense 12 Tribologix 060912-01 12,448.12
Department of Defense 12 Acree Technology TA (0.16)
Army Research Office 12.431 Academy of Applied S 4,922.07

Total Department of Defense 55,033.33

Department of Justice:
Department of Justice 16.580 OSU SUB DOJ 19,763.46
Department of Justice 16.595 Madisonville Weed & 7,661.67
Office of Juvenile Justice and Delinquency Prevention 16.523 ODYS SUB OJJDP 2006 8,547.67
Bureau of Justice Assistance 16.580 OSU/OJJDP CLEX 2006 24,866.19
Executive Office for Weed and Seed 16.595 MADISONVL S/DOJ 2005 (0.62)

73
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

Total Department of Justice 60,838.37

Department of Transportation
National Highway Traffic Safety Administration 20.600 BROWN CTY SAFE COMM (441.10)
National Highway Traffic Safety Administration 20.600 BROWN CTY SAFE COMM 10,004.13
National Highway Traffic Safety Administration 20.600 BROWN CTY SAFE COMM 14,520.23

Total Department of Transportation 24,083.26

National Aeronautics and Space Administration:

National Aeronautics & Space Administration 43.001 OSGC/NASA-OAI SCHOLA 33,513.20

Total National Aeronautics and Space Administration 33,513.20

National Endowment for the Humanitites:

National Endowment for the Humanities 45.129 KY HUMANITIES SUB NE 3,860.00
National Endowment for the Humanities 45.310 KENT ST SUB IMLS CL- 3,536.53
National Endowment for the Humanities 45.310 ST LIBR OF OHIO SUB 25,000.00

Total National Endowment for the Humanitites 32,396.53

National Science Foundation:

Directorate for Engineering 47.041 UNIV. OF SOUTH FL. S 7,500.00
Directorate for Engineering 47.041 UNIV. OF SOUTH FL. S 22,500.00
Directorate for Mathematical and Physical Sciences 47.049 IAS SUB NSF EHR-0314 39,268.53
Directorate for Education and Human Resources 47.076 OSURF SUB NSF HRD-03 42,744.82

Total National Science Foundation 112,013.35

Small Business Administration

Small Business Administration 59.037 OHIO DEPARTMENT OF D 156,754.57
Small Business Administration 59.037 OHIO DEPARTMENT OF D 14,911.47
Small Business Administration 59.037 SBDC/CCCC/ODOD SUB S (841.93)

Total Small Business Administration 170,824.11

Environmental Protection Agency:

Office of Research and Development 66.500 MALCOLM PIRNIE SUB E 32,390.05

Total Environmental Protection Agency 32,390.05

Department of Energy:
Department of Energy 81 FERNALD PO# 05FF0079 59,064.84
Department of Energy 81 KRELL INST-DPT OF EN 14,453.61
Department of Energy 81 ORISE/DOE/AFRL/HEP F 51,969.12
Office of Science 81.049 SC STATE/DOE ID14013 (0.01)
Office of Nuclear Energy 81.114 SCSU SUB DOE 04-4442 120,437.04

74
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

Total Department of Energy 245,924.60

Department of Homeland Security:

Federal Emergency Management Agency 97.019 FEMA-2003-CA-0307 SU 9,840.20

Total Department of Homeland Security 9,840.20

Department of Education:
Department of Education 84.367 ODE SUB USED SAELP G 32,159.82
Office of Special Education and Rehabilitative Services 84.027 ODE 062927-6B-SE-06 91,599.28
Office of Special Education and Rehabilitative Services 84.173 ODE CORE CURR-FED PR (7,128.58)
Office of Elementary and Secondary Education 84.186 OPERC SUB USED ITLE 22,697.89
Office of Elementary and Secondary Education 84.186 ODE SUB USED ODADAS (4,409.59)
Office of Elementary and Secondary Education 84.186 OPERC SUB USED ITLE 551,759.43
Office of Elementary and Secondary Education 84.186 ODE SUB USED ODADAS 826,282.10
Office of Elementary and Secondary Education 84.213 CHILDREN HOME CINTI/ (9.25)
Office of Vocational and Adult Education 84.243 TECH PREP FED 062927 (79.24)
Office of Vocational and Adult Education 84.243 ODE/USED TECH PREP F 9,650.83
Office of Vocational and Adult Education 84.243 ODE/USED TECH PREP F 222,012.42
Office of Safe and Drug-Free Schools 84.255 PA DEPT OF CORRECTIO 1,374.26
Office of Student Financial Assistance 84.268 OH DPT JF SVCS CWWPE 6,129.15
Office of Elementary and Secondary Education 84.282 EAST END COMMUNITY H (0.01)
Office of Elementary and Secondary Education 84.298 ODE ABC SCHOOL COMMU 45,045.90
Office of Elementary and Secondary Education 84.298 ODE- ABC Initiative 66,844.67
Office of Elementary and Secondary Education 84.298 ODE- SUB USED - ABC 170,765.90
Office of Special Education and Rehabilitative Services 84.323 ODE/USED SIG-SRS0612 99,827.56
Office of Special Education and Rehabilitative Services 84.323 ODE/USED STATE IMPRO 30,805.52
Office of Innovation and Improvement 84.330 ODE CI667-CAL-02-06 99,218.44
Office of the Assistant Secretary for Postsecondary Education 84.334 OBR/USED GEAR UP 3,316.30
Office of the Assistant Secretary for Postsecondary Education 84.334 OBR-OCAN SUB USED P3 81,713.33
Office of Vocational and Adult Education 84.346 ODE/ACRN TECH SERV S 50,920.02
Office of Vocational and Adult Education 84.346 ODE VEACRN-05-CINN-0 (865.95)
Office of Elementary and Secondary Education 84.357 CPS SUP ED SVCS SUB 86,301.60
Office of Elementary and Secondary Education 84.367 OBR 04-08 ITQ GRANT 121.28
Office of Elementary and Secondary Education 84.367 OBR 04-09 ITQ GRANT 722.38
Office of Elementary and Secondary Education 84.367 OBR 05-08 ITQ / USED 76,945.39
Office of Elementary and Secondary Education 84.367 OBR 05-09 ITQ / USED 51,133.15
Office of Elementary and Secondary Education 84.367 OBR 06-11 ITQ Grant 3,001.50
Office of Elementary and Secondary Education 84.367 OBR 06-12 ITQ Grant 1,999.57

Total Department of Education 2,619,855.07

Corporation for National and Community Service:

Corporation for National and Community Service 94.004 OTTERBEIN SUB CNCS 76,644.20

Total Corporation for National and Community Service 76,644.20

Total OTHER--Pass through: 3,507,670.40

75
UNIVERSITY OF CINCINNATI

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

Federal Federal Federal

Federal Agency CFDA Grant Number Expenditures

TOTAL OTHER 10,110,019.18

TOTAL FEDERAL AWARDS 166,705,438.70

76
UNIVERSITY OF CINCINNATI

NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

FOR THE YEAR ENDED JUNE 30, 2007

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation—The accompanying schedule of expenditures of federal awards includes the

federal grant transactions of the University of Cincinnati (“University”) and is recorded on the accrual
basis of accounting.

Subrecipients—Certain funds are passed through to subgrantee organizations by the University.

Expenditures incurred by the subgrantees and reimbursed by the University are presented in the schedule
of expenditures of federal awards. The University is also the subrecipient of federal funds which have
been subjected to testing and are reported as expenditures and listed as federal pass-through funds.

Negative Expenditures—Certain grant expenditures are negative as a result of various adjustments

made during the year.

2. CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBERS

Catalog of Federal Domestic Assistance (“CFDA”) numbers are presented for those programs for which
such numbers are available.

3. FEDERAL FAMILY EDUCATION LOAN PROGRAM

The University also participates in the Federal Family Education Loan Program. Loan awards under the
Federal Family Education Loan Program for the year ended June 30, 2007 were $221,869,492.

4. FEDERAL LOAN PROGRAMS

The University administers the Federal Perkins, Health Professions Student and Nursing Student Federal
Loan Programs. Total loan expenditures and disbursements of the Department of Education and
Department of Health and Human Services student financial assistance programs for the year ended
June 30, 2007 are as follows:

Federal Perkins Loan Program (CFDA 84.038) $6,095,212

Health Professions Student Loan Program (CFDA 93.342) 150,500
Nursing Student Loan Program (CFDA 93.364) 181,422

Total $ 6,427,134

The above expenditures include disbursements and expenditures such as loans to students and
administrative expenditures. The schedule of expenditures of federal awards only includes
administrative costs of the loan programs.

- 76 -
 Outstanding loans at June 30, 2007 include the following:

Federal Perkins Loans $25,502,701

Health Professions Student Loans 1,019,338
Nursing Student Loans 622,066

Total $ 27,144,105

5. INDIRECT COSTS

The University recovers indirect costs by means of predetermined indirect cost rates. The predetermined
rates are a result of negotiated agreements with the U.S. Department of Health and Human Services. On
May 30, 2007, the University received approval for indirect cost recovery rate effective from July 1,
2006 through June 30, 2009. The indirect cost rates structure is as follows:

Effective July 1, 2006

Rate Type through June 30, 2009

Organized research:
On-campus 56.0 %
Off-campus 26.0 %

Instruction:
On-campus 56.0 %
Off-campus 26.0 %

Public Service:
On-campus 30.0 %
Off-campus 26.0 %

- 77 -
 Deloitte & Touche LLP
250 East 5th Street
Suite 1900
Cincinnati, OH 45202-5109
USA
Tel: +1 513 784 7100
Fax: +1 513 784 7204
www.deloitte.com

INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS

To the Board of Trustees of

the University of Cincinnati:
We have audited the financial statements of the University of Cincinnati (“University”), a component unit
of the State of Ohio, as of and for the year ended June 30, 2007, and have issued our report thereon dated
October 12, 2007, which included a reference on our reliance on the other auditors’ report that related to
their audit of the University of Cincinnati Foundation, a reference to the University’s investment in
alternative investments whose fair values have been estimated by management in the absence of readily
determinable fair market values, and the University’s equity investment in the Health Alliance of Greater
Cincinnati as a participating partner. We conducted our audit in accordance with auditing standards
generally accepted in the United States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the University’s internal control over financial
reporting as a basis for designing auditing procedures for the purpose of expressing our opinion on the
financial statements, but not for the purpose of expressing our opinion on the effectiveness of University’s
internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness
of University’s internal control over financial reporting.

A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal process of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or a combination of
control deficiencies, that adversely affects the entity’s ability to initiate, authorize, record, process, or
report financial data reliably in accordance with generally accepted accounting principles such as there is
a more than remote likelihood that a misstatement of the entity’s financial statements that is more than
inconsequential will not be prevented or detected by the entity’s internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that result in a

more than remote likelihood that a material misstatement of the financial statements will not be prevented
or detected by the entity’s internal control.

Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section, and would not necessarily identify all deficiencies in internal control that
might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal
control that we consider to be material weaknesses, as defined above.

Member of
Deloitte Touche Tohmatsu
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the University’s financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards.
We noted certain matters that we reported to management of the University in a separate letter dated
October 12, 2007.
This report is intended solely for the information and use of the Board of Trustees of the University of
Cincinnati, management, federal awarding agencies, pass-through entities and the Auditor of State of
Ohio and is not intended to be and should not be used by anyone other than these specified parties.

October 12, 2007

- 79 -
 Deloitte & Touche LLP
250 East 5th Street
Suite 1900
Cincinnati, OH 45202-5109
USA
Tel: +1 513 784 7100
Fax: +1 513 784 7204
www.deloitte.com

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS

APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRULAR A-133

To the Board of Trustees of

the University of Cincinnati:
Compliance

We have audited the compliance of the University of Cincinnati (the “University”), a component
unit of the State of Ohio, with the types of compliance requirements described in the U.S. Office of
Management and Budget (“OMB”) Circular A-133 Compliance Supplement that are applicable to
each of its major federal programs for the year ended June 30, 2007. The University’s major federal
programs are identified in the summary of auditor’s results section of the accompanying schedule of
findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and
grant agreements applicable to each of its major federal programs is the responsibility of the
University’s management. Our responsibility is to express an opinion on the University’s
compliance based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB
Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about
whether noncompliance with the types of compliance requirements referred to above that could have
a direct and material effect on a major federal program occurred. An audit includes examining, on a
test basis, evidence about University’s compliance with those requirements and performing such
other procedures as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the
University’s compliance with those requirements.

In our opinion, the University complied, in all material respects, with the requirements referred to
above that are applicable to each of its major federal programs for the year ended June 30, 2007.
However, the results of our auditing procedures disclosed instances of noncompliance with those
requirements, which are to be reported in accordance with OMB Circular A-133 and which are
described in the accompanying schedule of findings and questioned costs as items 07-1 through 07-2.

Internal Control Over Compliance

The management of the University is responsible for establishing and maintaining effective internal
control over compliance with requirements of laws, regulations, contracts, and grant agreements
applicable to federal programs. In planning and performing our audit, we considered the

Member of
Deloitte Touche Tohmatsu
University’s internal control over compliance with requirements that could have a direct and
material effect on a major federal program in order to determine our auditing procedures for the
purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion
on the effectiveness of internal control over compliance. Accordingly we do not express an opinion
on the effectiveness of the University’s internal control over compliance.

A control deficiency in an entity’s internal control over compliance exists when the design or
operation of a control does not allow management or employees, in the normal course of performing
their assigned functions, to prevent or detect noncompliance with a type of compliance requirement
of a federal program on a timely basis. A significant deficiency is a control deficiency, or
combination of control deficiencies, that adversely affects the entity’s ability to administer a federal
program such that there is more than a remote likelihood that noncompliance with a type of
compliance requirement of a federal program that is more than inconsequential will not be
prevented or detected by the entity’s internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that

results in more than a remote likelihood that material noncompliance with a type of compliance
requirement of a federal program will not be prevented or detected by the entity’s internal control.

Our consideration of internal control over compliance was for the limited purpose described in the
first paragraph of this section and would not necessarily identify all deficiencies in internal control
that might be significant deficiencies or material weaknesses. We did not identify any deficiencies
in internal control over compliance that we consider to be material weaknesses, as defined above.

The University’s responses to the findings identified in our audit are described in the accompanying
schedule of findings and questioned costs. We did not audit the University’s response and,
accordingly, we express no opinion on it.

This report is intended solely for the information and use of the Board of Trustees of the University
of Cincinnati, management, federal awarding agencies, pass-through entities and the Auditor of
State of Ohio and is not intended to be and should not be used by anyone other than these specified
parties.

October 12, 2007

- 81 -
UNIVERSITY OF CINCINNATI

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE YEAR ENDED JUNE 30, 2007

PART I - SUMMARY OF AUDITORS’ RESULTS

I. Financial Statements
Type of auditors’ report issued: Unqualified

Internal control over financial reporting:

Material weakness(es) identified? _______yes X no

Reportable Condition(s) identified not

considered to be material weaknesses? _______yes X N/A

Noncompliance material to financial

statements noted? _______yes X no

II. Federal Awards

Internal control over major programs:

Material weakness(es) identified? _______yes X no

Reportable Condition(s) identified not

considered to be material weakness(es)? _______yes X N/A

Type of auditors’ report issued on

compliance for major programs: Unqualified

Any audit findings disclosed that are

required to be reported in accordance with
Section .510(a) of OMB Circular A-133? X yes no

Identification of major programs: Student Financial Aid-Cluster

Research and Development-Cluster

Dollar threshold used to distinguish between

Type A and Type B programs $3,000,000

Auditee qualified as low-risk auditee? _______yes X no

- 82 -
UNIVERSITY OF CINCINNATI

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

FOR THE YEAR ENDED JUNE 30, 2007 (Continued)

PART II – FINANCIAL STATEMENT FINDINGS SECTION

No matters are reportable.
PART III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS SECTION

07-1 Federal Program—Student Financial Assistance Cluster CFDA Numbers 84.007, 84.032 and
84.063; Aid Year 7/1/2006 – 6/30/2007
Requirement— When a recipient of Title IV grant or loan assistance withdraws from an institution
during a payment period or period of enrollment in which the recipient began attendance, the
institution must determine the amount of Title IV aid earned by the student as of the student’s
withdrawal date. If the total amount of Title IV assistance earned by the student is less than the
amount that was disbursed to the student or on his or her behalf as of the date of determination that
the student withdrew, the difference must be returned to the Title IV programs as outlined and no
additional disbursements may be made to the student for the payment period or period of enrollment.
If the amount the student earned is greater than the amount disbursed, the difference between the
amounts must be treated as a post-withdrawal disbursement (34 CFR sections 668.22(a)(1)-(3)).

The amount of earned Title IV grant or loan assistance is calculated by determining the percentage of
Title IV grant or loan assistance that has been earned by the student and applying that percentage to
the total amount of Title IV grant or loan assistance that was or could have been disbursed to the
student for the payment period or period of enrollment as of the student’s withdrawal date. A student
earns 100 percent if his or her withdrawal date is after the completion of 60 percent of: (1) the
payment period or period of enrollment for a program measured in credit hours; or (2) the clock hours
scheduled to be completed for the payment period or period of enrollment for a program measured in
clock hours. Otherwise, the percentage earned by the student is equal to the percentage of the
payment period or period of enrollment that was completed as of the student’s withdrawal date. The
percentage of Title IV grant or loan assistance that has not been earned by the student is the
complement of one of these calculations. Standard term-based institutions must always use the
payment period as the basis for the determinations.

The unearned amount of Title IV assistance to be returned is calculated by subtracting the amount of
Title IV assistance earned by the student from the amount of Title IV aid that was disbursed to the
student as of the date of the institution’s determination that the student withdrew (34 CFR section
668.22(e)).

Condition— One student who withdrew during the quarter did not have the amount to be returned to
the lender correctly calculated resulting in the student keeping the wrong amount of funds.

Context – We selected 25 students who had withdrawn from any quarter during the 2007 fiscal year.
We then recalculated the amount of the error based on the students’ withdrawn date. We noted one
calculation error for $37.75.

- 83 -
 Effect—The Title IV programs or federal lender did not receive the correct amount of refunds after a
student withdrawal.

Cause— The institutional charges were incorrectly calculated resulting in the amount for the school
to return being calculated incorrectly.

Questioned Cost – The one error resulted in the University refunding $37.75 less than the appropriate
amount of the refund.

Recommendation—The University should calculate returns in accordance with earned method

approach. The University should also review all calculations prior to refunding to ensure that the
calculations are correct.

Views of Responsible Officials and Planned Corrective Action—This was a clerical error. The
student withdrew from one course creating a partial refund prior to their total withdrawal from the
University. The University failed to include this amount with the current amount of institutional
charges. The University has corrected the account and notified the student. In the future, all
calculations and returns will be double checked by another accountant.

07-2 Federal Program—Student Financial Assistance Cluster CFDA Numbers 84.007, 84.032 and
84.063; Aid Year 7/1/2006 – 6/30/2007
Requirement—Returns of Title IV funds are required to be deposited or transferred into the SFA
account or electronic fund transfers initiated to the Department of Education or the appropriate FFEL
lender as soon as possible, but no later than 45 days after the date the institution determines that the
student withdrew. Returns by check are late if the check is issued more than 45 days after the
institution determined the student withdrew or the date on the canceled check shows the check was
endorsed more than 60 days after the date the institution determined that the student withdrew (CFR
668.173(b))
Condition—Based on the date of determination of withdrawal and the date that the funds were
deposited or transferred to the lender, it was determined that the funds were not deposited or
transferred within 45 days of the date of determination.
Context—There were 7 out of 25 students whose funds were not returned to the lender within 45 days
of the date of determination.
Effect—The Title IV programs or federal lenders did not receive the correct amount of refunds on a
timely basis after a student withdrawal.
Cause—The University’s student accounts department is not being notified of withdrawals in a
timely fashion.
Recommendation—The University’s process for returns of Title IV funds should be modified such
that the University’s student accounts department is notified timely when students have withdrawn so
that returns can be deposited or transferred in a timely basis.
Views of Responsible Officials and Planned Corrective Action—With the guidance of an outside
consultant engaged to assist the University in revising its procedures, proper compliance was
implemented during autumn quarter of FY 2007. Some refunds processed prior to autumn quarter of
FY 2007 were outside the 45 day window. Title IV procedures are now being followed and returns
will be processed within 45 days of the student’s withdrawal.

- 84 -
UNIVERSITY OF CINCINNATI

SUMMARY OF SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS

The summary below was provided by management of the University of Cincinnati and constitutes a summary
of the current status of the findings reported in the Schedule of Findings and Questioned Costs from the
Independent Auditors’ Single Audit Reports for the year ended June 30, 2006.

Conditions 06-2, 05-2, 04-2 and 03-1 (Student Financial Assistance Cluster, CFDA Numbers 84.007,
84.032 and 84.063)

During the fiscal year 2006 audit, there were instances noted where the University did not calculate student
financial assistance return amounts correctly due to the University not utilizing proper charges in their
calculation of refunds.

Management’s Update on Current Status— In addition to an outside consultant being hired to assist the
University in revising its Title IV procedures, the position of University Bursar was reinstated and staffed.
These actions have assisted the University in implementing proper compliance procedures during FY 2007.

Conditions 06-1, 05-1, 04-1 and 03-2 (Student Financial Assistance Cluster, CFDA Numbers 84.007,
84.032 and 84.063)

During the fiscal year 2006 audit, there were instances noted where the University does not calculate student
returns correctly based upon the percentage of days attended.

Management’s Update on Current Status— In addition to an outside consultant being hired to assist the
University in revising its Title IV procedures, the position of University Bursar was reinstated and staffed.
These actions have assisted the University in implementing proper compliance procedures during FY 2007.

Condition 06-1, 05-3 and 04-3 (Student Financial Assistance Cluster, CFDA Numbers 84.007, 84.032
and 84.063)

During the fiscal year 2006 audit, there were instances noted where the University did not follow the
prescribed order for applying returns of the Title IV funds against outstanding loans or grants.

Management’s Update on Current Status— In addition to an outside consultant being hired to assist the
University in revising its Title IV procedures, the position of University Bursar was reinstated and staffed.
These actions have assisted the University in implementing proper compliance procedures during FY 2007.

- 85 -
Condition 06-4, 05-4 and 04-4 (Student Financial Assistance, CFDA Numbers 84.007, 84.032 and
84.063)

During the fiscal year 2006 audit, there were instances noted where the University did not deposit or transfer
to the lender returns of Title IV funds within the required 30 day time period from the date that the University
is made aware of the student withdrawal.

Management’s Update on Current Status— In addition to an outside consultant being hired to assist the
University in revising its Title IV procedures, the position of University Bursar was reinstated and staffed.
These actions have assisted the University in implementing proper compliance procedures during FY 2007.

Condition 06-5 (GEAR UP GRANT, CFDA Number 84.334)

In the fiscal year 2006 audit, there were instances noted where the University could not locate or provide
support for participant eligibility in the GEAR UP program.

Management’s Update on Current Status—During FY 2007 the University reviewed its controls around the
database that determines eligibility and revised them as necessary to ensure that only eligible students
participate.

- 86 -
 UC|21 THE NEW URBAN RESEARCH UNIVERSIT Y

Fiscal year 2006

UC Budget
UC Audited Financial report
A133 audit statement

FY 06

University of Cincinnati
University Current Funds Budget Plan
FY 2005-2006
 CURRENT FUNDS
BUDGET PLAN
FY 2005-2006

Prepared By
The Office of the Chief Financial Officer
As Approved By
The President’s Budget Committee

June 28, 2005

BOARD OF TRUSTEES

Phillip R. Cox
Chairperson

Anant Ram Bhati

Sandra W. Heimann

Gary Heiman

Thomas H. Humes

Candace Kendle

H. C. Buck Niehoff

George A. Schaefer, Jr.

Jeffery L. Wyler
 PROLOGUE

NEW BUDGET SYSTEM FOR FY 05-06

During Fiscal Year 2004-2005, the University of Cincinnati redefined its future through
the design of its new Academic plan, UC|21: Defining the New Urban Research
University. This strategic vision for UC’s academic future promises to reshape the
university academically as dramatically as the campus master plan has reshaped UC’s
physical landscape. The university’s budget system will play a significant role in the
success of this ambitious academic plan and, as a result, has undergone some substantial
changes that are reflective of our UC|21 goals and aspirations.

The FY 2006 budget is empowered by some new approaches brought about as a result of
the UC|21 plan. It includes a budgetary reorganization tied to the six goals of UC|21,
performance-based budgeting and greater academic involvement in the budgetary
process. UC|21 has brought together a better sense of strategic enrollment planning and
entrepreneurial growth, as well as a commitment to assessment, accountability and data-
driven decision making.

The preparation of the FY 05-06 Budget Plan has been driven by several very new
approaches. They have changed the way budget recommendations to the Board of
Trustees have been formed and will continue to do so in the future. The major changes
are:

1. President’s Budget Committee – The President’s Budget Committee (PBC) has

been in operation for the full budget cycle involving the formation of the FY 05-
06 Budget Plan. The members include: the President, all Senior Vice Presidents,
Chief Financial Officer, senior financial staff from both Provosts’ offices, the
Chair of the Faculty Senate, and the Chair of the Council of Deans. The PBC
brings a wide set of perspectives to all budget issues and reviews all details of the
undesignated general fund budget for the Uptown Campus. This ensures that we
keep appropriate priorities in the budget and that we can communicate the
reasoning for budget decisions to the leadership of the University.

2. UC|21 Academic Strategic Plan – Our strategic plan has provided the constant
guidance we need to test the budget allocations and decisions recommended in the
Budget Plan. This has provided a level of consistency and comparison for a wide
variety of budget proposals that we very much need. All such proposals can be
assessed as to their contribution to the goals of UC|21. We have also recognized
that there are essential infrastructure investments that must be made in the budget
in order to make the more specific goals of UC|21 possible.

3. Performance Budgeting and the 50 In 5 Revenue Plan – The dedication to

defining a performance budgeting system that recognizes and rewards those units
 that enhance our resources has guided the Budget Plan recommendations at many
times in the planning process. Millions of dollars in recommended allocations are
a direct response to support those units that have increased enrollment and/or net
tuition income. This is exactly the kind of income growth that we need to
continue and accelerate to fund the UC|21 goals we have set.

4. Resource Support Committee (RSC) – This committee, which is a part of the

UC|21 implementation structure, has worked to review college proposals to
increase enrollment and/or tuition income and recommend those that are ready for
implementation to the President’s Budget Committee for final approval. Those
recommendations are included in the FY 05-06 Budget Plan. The RSC is also
working to complete an even more comprehensive version of performance
budgeting with appropriate incentives built in.

These changes are designed to make the budget process as managed by the academic
leadership open to the campus community and dedicated to achieving our UC|21 goals.
Combined, they represent a significant improvement in the budgeting process at the
University of Cincinnati.
 TABLE OF CONTENTS
GENERAL

Current Funds Budget Summary..................................................................................2

Summary of Budgeted Resources and Expenditures - Total University ...................3

Summary of Budgeted Resources and Expenditures - Total University Graphs

Budgeted Resources by Source ..................................................................4
Budgeted Expenditures by Function .........................................................4
Selected Definitions.........................................................................................................5

Undesignated General Funds - Uptown Campus.........................................................8

Undesignated General Funds - Branches ...................................................................19

Student Fees & Historical Data ...................................................................................25

Designated General Funds – Hoxworth Blood Center ..............................................31

Auxiliary Operations ....................................................................................................34

Designated General Funds – Millennium Research Institute...................................46

Other Designated Funds...............................................................................................50

Restricted Funds ...........................................................................................................55

 FISCAL YEAR 2005-06
CURRENT FUNDS BUDGET SUMMARY
(IN THOUSANDS)

FULL BUDGET AUTHORITY FUND CONTROLLED AUTHORITY

DESIGNATED DESIGNATED

UNDESIGNATED UNDESIGNATED GENERAL FUNDS GENERAL FUNDS OTHER TOTAL

GENERAL FUNDS GENERAL FUNDS HOXWORTH AUXILIARY MILLENNIUM DESIGNATED RESTRICTED CURRENT

UPTOWN CAMPUS BRANCHES BLOOD CENTER ENTERPRISES SUBTOTAL RESEARCH INST. GENERAL FUNDS FUNDS SUBTOTAL FUNDS

RESOURCES
Gross Tuition, Fee & Other Student Charges $268,063 $26,557 $9,443 $304,063 $18,379 $18,379 $322,442
Less Scholarships & Fellowships (59,146) (335) (59,481) 0 (59,481)
Net Tuition, Fee & Other Student Charges 208,917 26,222 9,443 244,582 $18,379 18,379 262,961

State Appropriations (State Share of Instruction) 141,146 14,366 155,512 $12,843 12,843 168,355
State Appropriations (Challenges) 9,015 1,893 10,908 0 10,908
Govt. & Private Grants & Contracts 13,878 46 13,924 8,261 23,366 210,299 241,926 255,850
Private Gifts $5,454 5,454 882 23,949 24,831 30,285
Endowment Income 1,404 1,404 1,554 52,871 54,425 55,829
Sales & Service 10 35,030 35,040 19,858 19,858 54,898
Temporary Investments 2,270 280 2,550 141 141 2,691
Other Sources 2,187 93 2,280 440 1,433 1,873 4,153
Auxiliary Enterprises 76,181 76,181 0 76,181

2
Total Resources 378,827 42,620 35,310 91,078 547,835 8,701 65,472 300,103 374,276 922,111
EXPENDITURES
Educational & General
Instructional & General 193,203 22,703 215,906 15,993 41,201 57,194 273,100
Separately Budgeted Research 3,117 3,117 8,587 11,923 139,229 159,739 162,856
Public Service 1,441 609 32,421 34,472 12,161 8,085 20,246 54,718
Academic Support 46,281 5,065 51,346 10,640 11,124 21,764 73,110
Student Services 17,408 3,232 20,640 12,229 3,879 16,108 36,748
Institutional Support 44,406 6,000 50,406 6,231 705 6,936 57,342
Operation & Maintenance of Plant 40,656 3,967 44,623 3,883 728 4,611 49,234
Scholarships & Fellowships 0 1,068 40,964 42,032 42,032
Total Educational & General 346,512 41,577 32,421 0 420,510 12,470 70,245 245,915 328,630 749,140

Auxiliary Enterprises 77,956 77,956 (14) (14) 77,942

Mandatory Transfers
Loan Fund Matching 223 223 0 223
Debt Service 12,339 700 949 23,779 37,767 5,058 6,810 758 12,626 50,393
Nonmandatory Transfers
Subsidies to Non-Instructional Units 10,171 258 (10,849) (420) 420 420 0
Reserve for Maint. & Improvements 690 690 (690) (690) 0
Other Designated 12,604 12,604 (12,604) (12,604) 0
Plant Funds 2,511 1,100 1,506 5,117 0 0 5,117
Other (6,223) 85 280 (5,858) 1,135 53,357 54,492 48,634
Total Expenditures & Transfers 378,827 42,620 34,471 92,672 548,590 17,528 65,302 300,030 382,860 931,450

Net Increase (Decrease) in Fund Balance $0 $0 $839 ($1,594) ($755) ($8,827) $170 $73 ($8,584) ($9,339)
 SUMMARY OF BUDGETED RESOURCES AND EXPENDITURES
TOTAL UNIVERSITY
(IN THOUSANDS)

2004-05 2005-06 Dollar Percent

Revised Budget Budget Change Change
RESOURCES
Gross Tuition, Fee & Other Student Charges $299,614 $322,442 $22,828 7.62%
Less Scholarships & Fellowships (56,457) (59,481) (3,024) 5.36%
Net Tuition, Fee & Other Student Charges 243,157 262,961 19,804 8.14%

State Appropriations (Subsidy) 167,399 168,355 956 0.57%

State Appropriations (Challenges) 11,562 10,908 (654) -5.65%
Govt. & Private Grants & Contracts 246,242 255,850 9,608 3.90%
Private Gifts 28,339 30,285 1,946 6.87%
Endowment Income 54,235 55,829 1,594 2.94%
Sales & Service 52,283 54,898 2,615 5.00%
Temporary Investments 2,718 2,691 (27) -0.99%
Other Sources 4,023 4,153 130 3.22%
Auxiliary Enterprises 67,374 76,181 8,807 13.07%
Total Resources 877,333 922,111 44,778 5.10%

EXPENDITURES
Educational & General
Instructional & General 257,343 273,100 15,757 6.12%
Separately Budgeted Research 161,171 162,856 1,685 1.05%
Public Service 52,377 54,718 2,341 4.47%
Academic Support 69,669 73,110 3,441 4.94%
Student Services 35,096 36,748 1,652 4.71%
Institutional Support 52,310 57,342 5,032 9.62%
Operation & Maintenance of Plant 45,765 49,234 3,469 7.58%
Scholarships & Fellowships 39,015 42,032 3,017 7.73%
Total Educational & General 712,745 749,140 36,395 5.11%

Auxiliary Enterprises 72,935 77,942 5,007 6.86%

Mandatory Transfers
Loan Fund Matching 223 223 0 0.00%
Debt Service 41,588 50,393 8,805 21.17%
Nonmandatory Transfers
Plant Funds 3,146 5,117 1,971 62.65%
Other 53,019 48,634 (4,385) -8.27%
Total Expenditures & Transfers 883,656 931,450 47,794 5.41%

Net Increase (Decrease) in Fund Balance ($6,323) ($9,339)

3
 SUMMARY OF BUDGETED RESOURCES AND EXPENDITURES
TOTAL UNIVERSITY

RESOURCES BY SOURCE

Auxiliary Enterprises
8%

Net Tuition, Fees &

Other Resources Other Student Charges
16% 29%

Govt. & Private Grants State Appropriations

& Contracts 19%
28%

EXPENDITURES BY FUNCTION

Auxiliary Enterprises
8%
Nonmandatory
Transfers
Instructional & General
6%
30%

Mandatory Transfers
5%

Scholarships &
Fellowships
5%

Operation &
Maintenance of Plant
5%

Institutional Support
6%

Student Services Separately Budgeted

4% Research
Academic Support 17%
8% Public Service
6%

4
 SELECTED DEFINITIONS
♦ Current Funds are those funds that are earned and expended in the current fiscal
year. They include the General Funds and Restricted Funds. Excluded entirely from
this report are Non-Current Funds such as Plant Funds, Loan Funds and Endowment
Principal.

♦ Undesignated General Funds are unrestricted resources available for allocation in

support of core instruction, instructional support and related general administrative
and physical plant expenditures. The university maintains a separate undesignated
general fund for the Uptown campus and one for each of the branches.

♦ Designated General Funds are those funds which are internally restricted by Board
of Trustee approval for specific activities.

♦ Restricted Funds are funds for which the use has been designated by an external
agency or individual and limited to support a specific purpose and/or unit.

♦ Instructional and Departmental Research includes all direct and applicable

allocated expenditures for all activities that are part of the University's instructional
program. It includes expenditures for departmental research and public service that
are not separately budgeted.

♦ Academic Support includes all funds expended for activities carried out primarily to
provide support services that are an integral part of the operations of one of the three
primary missions -- instruction, research and public service. Included in this category
are Academic Affairs Administration, Libraries, Museums & Galleries and the
Deans’ offices.

♦ Student Services includes funds expended for those activities for which the primary
purpose is to contribute to the student's emotional and physical well being, as well as
his/her cultural and social development outside the context of the formal instructional
program. Included in this category are Admissions and Registration, Counseling, and
Student Financial Aid.

♦ Institutional Support contains expenditures for operations that provide support

services to the total University. Included in this category are Executive Management,
Finance, Human Resources, Administrative Services, Public Affairs and
Development.

♦ Plant Operations and Maintenance includes all expenditures of current funds for the
operation and maintenance of the physical plant, net of amounts charged to auxiliary
operations and the hospital. Included in this category are utilities, repair and
renovations, custodial services, grounds maintenance, space rental and property
insurance.

♦ Separately Budgeted Research includes all expenditures for activities specifically

organized to produce research outcomes, whether commissioned by an external

5
 agency to the University (restricted) or the University (unrestricted) and includes
matching funds applicable to the conditions set forth by the grant or contract.

♦ Public Service includes all funds expended for activities that are established
primarily to provide noncredit designated course offerings and services beneficial to
individuals and groups external to the University. Included in this category are
Continuing Education and Cooperative Extension Services.

♦ Scholarships and Fellowships include expenditures in the form of outright grants

and trainee stipends to individuals enrolled in formal course work.

♦ Auxiliaries are specifically identified by the State as the following earnings

operations: Residence & Dining Halls, Intercollegiate Athletics, Student Unions,
Bookstores, Parking Lots & Garages, Kingsgate Conference Center and the Fifth
Third Arena at the Myrl H. Shoemaker Center.

♦ IT&IE Fee is the Information Technology and Instructional Equipment fee charged
to all undergraduate, graduate and professional students (except Medicine programs)
for the purpose of improving access to and assistance with information technology
and to fund other types of instructional equipment.

♦ Nonresident Surcharge equates to the full cost of instruction for non-Ohio residents.
The Ohio Board of Regents subsidy policy does not provide support for out-of-state
undergraduate students.

♦ Campus Life Fee is the fee charged to all undergraduate, graduate and professional
students (except Raymond Walters College and Clermont College) for the purpose of
developing a new Student Union and state-of-the-art recreation facility.

♦ SSI – State Share of Instruction is the formula driven state funding as recommended
and approved by the Governor and the State Legislature.

♦ Access Challenge – These funds are meant to reduce or freeze the tuition levels for
students obtaining a two-year degree at public institutions in Ohio. While most of
these funds go to two-year campuses, including our branches, the Uptown campus
receives funds for the students at the Center for Access and Transition. These funds
have been used as previously mentioned.

♦ Jobs Challenge – This program allocates funds in proportion to the amount of

income generated by worker training programs at each campus. It is a small amount
(under $100,000) on the Uptown campus, as well as for the two branch campuses.
These funds are currently viewed as restricted in nature.

♦ Success Challenge – This program is aimed at increasing the success of four-year

students and shortening the length of time to degree completion. As a major source
of funding, it is providing the opportunity to target new services and programs at
students having difficulty making normal academic progress. Part of these funds
assist in keeping our past fee increases below the past State fee cap and the State

6
 average. The funds are allocated in proportion to the number of “at risk or under-
prepared” students enrolled and how they perform.

♦ Research Challenge – This program, which matches State funding for research to the
level of research grant holdings, has been around for many years. This funding is
being included with the other Challenge programs in our unrestricted income. Thus,
it can apply to new allocations or help support existing allocations.

♦ Priorities in Graduate Education – This is a focused program to improve key

graduate programs that will drive Ohio’s economy in the next century.

♦ FTE – Full Time Equivalent student, based on a 15 credit hour load per quarter.

7
 I. UNDESIGNATED GENERAL FUNDS
UPTOWN CAMPUS

Undesignated General Funds - Overview.....................................................................9

Undesignated General Funds Budget - Uptown Campus .........................................15

Summary of Budgeted Expenditures (Schedule A) ..........................................16

New Budget Allocations (Schedule B) ................................................................17

Noncompensation Inflation Increases (Schedule C) .........................................18

8
 UNIVERSITY OF CINCINNATI
UNDESIGNATED GENERAL FUNDS
UPTOWN CAMPUS
OVERVIEW
The Uptown Campus budget is the “core” University budget, and comprises about 41%
of its total. The events and trends in this budget set the basic direction for the entire, all-
funds budget, as it depends on primary sources of income – tuition and State Share of
Instruction (also called the SSI). Thus, tuition policy for the vast majority of students is
determined in this budget, and compensation policy for the entire institution is driven by
this budget.

In FY 2006, the UC|21 Academic Plan became the key driver to decision and allocation
making in the University-wide budget process. Through the President’s Budget
Committee (PBC), the budget has become more of an academic tool that has created
greater transparency. Thus, the Uptown portion of the budget becomes a stabilization
model for all other university-wide budgets. Within this budget are stabilizing factors
that correct a budget shortfall; begin proper inflation of the utilities budget; support
performance budgeting; and fund UC|21 goals. This budget plan reflects revenue
estimates and priorities for the continuation and expansion of existing programs as well
as new UC|21 incentive goals. As in the past, it is necessary to direct formula-allocated
state support and increases in student fees toward funding inflation while financing new
and expanded areas of emphasis primarily through budget reallocations from other
academic and administrative areas, as well as from new entrepreneurial programs and
policies.

Fiscal year 2005 will close with a balanced actual budget due to multiple one-time
revenue options. Therefore, charts and graphs within this budget will vary based on the
presentation of permanent budget or actual collected revenue. Since this funding was
one-time, generated permanent revenue increases in FY 2006 will be used to create a
stabilized permanent budget. Stabilized funding will come from increased tuition above
the stated increase that is built into the budget to cover FY 2005 shortfalls. It is projected
that increased enrollment from first-time freshman, new revenue-driven programs and
greater retention will support not only the budgeted UC|21 program increase, but create a
stabilized budget for the future as well.

I. State Share of Instruction (SSI) and Tuition Inflation

At the state level, the failure to place a priority on higher education funding continues to
create economic pressures for the University. Our State Share of the cost of Instruction
(SSI) has dropped from just over 34 percent of our budget in 1985 to just over 18 percent
in fall 2005. Ohio now stands at No. 43 among all states in support for higher education.

Since fiscal year 2001, actual SSI support to UC has dropped from $160 million to $141
million for the Uptown campus alone. Ohio’s apparent policy strategy is that tuition (that
is, the cost of college for our students and their families) must make up for gaps in state
support. That may be a short-term solution to the state budgetary conundrum, but it is
short-sighted from an economic development perspective. Higher education is an
investment in the future that brings big returns. We are already living in a state that is
9
undereducated and turning that around is key to turning our state budget problems
around.

State Share of Instruction

145,000,000
144,188,235
144,000,000
144,219,588
143,000,000

142,000,000

141,000,000
141,145,743
140,000,000
140,384,295
139,000,000

138,000,000
FY03 FY04 FY05 Forecast FY06 Forecast

With continued decreased funding or at best flat funding in State appropriations, it

becomes necessary to take long looks and make hard decisions about other major revenue
streams to fund the ongoing operations of the University. Therefore, in FY 2006, the
burden of funding the University’s fixed and unavoidable expenses, as well as new
initiatives, will be made through the UC|21 Academic Plan, which relies on increasing
academic excellence, recruitment and retention of new and existing students. Through
the creation of the 50 in 5 plan, the University’s new resources will be allocated based on
the UC|21 strategic goal.

10
 UPTOWN CAMPUS
UNDESIGNATED GENERAL FUNDS
UC|21 FUNDING GOALS

FY 2004 FY 2005 FY 2006

Place Students at the Center $2,857,020 $5,394,630 $300,000

Grow Our Research Excellence 657,964

Achieve Academic Excellence 3,384,449 9,616,016 9,500,000

Forge Key Relationships and

Partnerships 261,000 191,000 700,000

Establish a Sense of Place 309,317 245,582

Create Opportunity 200,000

Academic Total $6,811,786 $16,105,192 $10,700,000

Infrastructure 3,364,298 3,610,870 4,200,000

Total $10,176,084 $19,716,062 $14,900,000

Based on these UC|21 established goals, the preceding chart emphasizes the dollars
allocated in FY 2004 and FY 2005 before the new Academic Plan was completed and put
into motion. This prior year information emphasizes the importance of the new
Academic Plan coordination for the future of UC. Going forward, the University’s
budget will be based on the UC|21 philosophy and goals as is expressed by the FY 2006
column.

11
 Net Tuition vs. State Share of Instruction

220,000,000
208,917,000

200,000,000
183,100,000

180,000,000
158,591,945

160,000,000
141,371,392

140,000,000
144,219,588 144,188,235 141,145,743
140,384,295
120,000,000

100,000,000
FY03 FY04 FY05 Forecast FY06 Forecast

Net Tuition & Fees Actual State Share of Instruction

Tuition in FY 2006 will increase by 6% for all undergraduates, and by 8% for all
graduate and professional students. As was the case in FY 2005, the tuition increase will
be effective starting with the 2005 summer session. In connection with the GASB 34-35
financial statement format, Undesignated General Funds tuition and fees have been
restated in the budget process net of scholarships. This results in scholarships no longer
being an expense item, but rather a discounting offset to tuition and fees in the revenue
section, resulting in net tuition and fees.

II. New and Expanded Areas of Emphasis

1. In an attempt to increase student enrollments and create greater budget

transparency, as well as secure increased future years SSI funding, the University
is engaging in a robust academic plan known as UC|21 that involves greater
academic involvement than in previous years. It is the intent of this plan to
increase enrollment in the current fiscal year through more sophisticated
marketing and greater entrepreneurial means. This effort is intended to increase
enrollments by 600 undergraduate and graduate FTE’s for the recommended
fiscal budget year with the understanding that these numbers must be increased in
future years to create future program growth funding.

2. As usual, in an institution of higher learning, there evolves a group of critical new

budget allocations from one fiscal year to the next, including major issues left
unfunded from the previous year. The largest of these issues are health care with
rapid escalation in the last four years ranging from 10.6% to 14.6% annually and
12
 utilities which have increased by over 18% since January 2005. A super inflation
of $1 million has been put in place for utilities for 2006. The budget will also
include an increased contingency line and initial funding of $500,000 to establish
a proper Accounts Receivable Write-Off program.

Total FTEs

23,500

23,000
23,061
22,500
22,351
22,000
21,980
21,500
21,553
21,000

20,500
Fall 02 Fall 03 Fall 04 Fall 05 Projected

3. Through the UC|21 Academic Plan, several colleges have identified new
opportunities to provide credit and degree instruction to groups of students in
programs that are driven solely by tuition income. The key to the success of these
programs is the opportunity to increase UC’s market for instructional services in
the region and state. These programs cover the Biomedical Engineering Program,
Business, DAAP, Engineering, Education, and Pharmacy.

4. Based on the UC|21 Academic Plan, $3 million in seed funds has been allocated
to fund start-up grants that are to be identified for funding through the UC|21
Strategic Council during the fiscal year. These start-up funds will be one-time in
nature which will be used to create ongoing revenue generating activities to help
fund the 50 in 5 philosophy in future years.

13
III. FY 2006 Budget Reallocation

FY 2006 brings budget cuts of a different nature than in past years. The President’s
Budget Committee has determined that it is healthy on an annual basis to reallocate a
portion of the Uptown Campus General Fund budget measured on performance as
detailed by the UC|21 Performance Budget Committee. During the fiscal year, policies
and guidelines will be recommended and approved by the committee to put the
reallocation process in motion.

Summary for FY 2006

With the FY 2006 budget comes an emphasis on growing enrollment, budget
transparency and greater academic involvement through the UC|21 Academic Plan. The
new budget process and structure is led by the President and three Senior Vice
Presidents, who have made the decisions leading to the outcome of the FY 2006 budget.
These decisions came through the guidance of the PBC, UC|21 goals, Performance
Budgeting principles, 50 in 5, SEM enrollment activities and the work of the UC|21
Strategic Council. The FY 2006 budget is made up of aggressive tuition growth, a flat
SSI allocation and a continued increase in new revenue-driven programs. The University
must continue down the aggressive growth path if we are to achieve the targets set in the
FY 2006 Budget and to support all of the academic goals the budget anticipates.

Our traditional “core” revenue growth in the future from enrollment driven SSI and
tuition will only sustain inflation; therefore, budget reallocations and other “new” forms
of revenue produced within the UC|21 Academic Plan are key to supporting critical
strategic needs in our academic programs.

14
 UNDESIGNATED GENERAL FUNDS
UPTOWN CAMPUS
(IN THOUSANDS)

2004-05 2005-06 Dollar Percent

Revised Budget Budget Change Change

RESOURCES
Gross Tuition, Fee & Other Student Charges 248,748 268,063 $19,315 7.77% *
Less Scholarships & Fellowships (56,205) (59,146) (2,941) 5.23%
Net Tuition, Fee & Other Student Charges 192,543 208,917 $16,374 8.50%

State Appropriations (State Share of Instruction) 141,146 141,146 0 0.00%

State Appropriations (Challenges) 9,669 9,015 (654) -6.76%
Govt. & Private Grants & Contracts 13,578 13,878 300 2.21%
Endowment Income 1,356 1,404 48 3.56%
Sales & Service 10 10 0 0.00%
Temporary Investments 2,270 2,270 0 0.00%
Other Sources 2,187 2,187 0 0.00%
Total Resources 362,759 378,827 16,068 4.43%

EXPENDITURES
Educational & General
Instructional & General 180,248 193,203 12,955 7.19%
Separately Budgeted Research 2,600 3,117 517 19.90%
Public Service 890 1,441 551 61.95%
Academic Support 44,934 46,281 1,347 3.00%
Student Services 16,275 17,408 1,133 6.96%
Institutional Support 42,159 44,406 2,247 5.33%
Operation & Maintenance of Plant 38,280 40,656 2,376 6.21%

Total Educational & General 325,385 346,512 21,126 6.49%

Mandatory Transfers
Debt Service 11,701 12,562 862 7.36%
Nonmandatory Transfers
Subsidies to Non-Instructional Units 11,498 10,171 (1,327) -11.54%
Other 14,175 9,582 (4,593) -32.40%
Total Expenditures & Transfers 362,759 378,827 16,068 4.43%

Net Increase (Decrease) in Fund Balance $0 $0

* The 7.77% increase in tuition dollars is a result of not only the 6% increase in resident and nonresident undergraduate rates and the 8%
increase for graduate and professional students, but also a blend of new programs, increased enrollments, and increased retention
of current students.

15
 Schedule A

UNDESIGNATED GENERAL FUNDS

UPTOWN CAMPUS

SUMMARY OF BUDGETED EXPENDITURES

(IN THOUSANDS)

BUDGETED EXPENDITURES:
Prior Year Base Budget $362,758
UGS & Graduate Incentive Budget Reductions (4,100)
UC|21 Budget Additions 3,000
Scholarships from Endowments (2,000)
New Budget Allocations (Schedule B) 13,231
Budget Reallocations (3,600) (1)
Non-Compensation Inflation (Schedule C) 1,788
Salary & Fringe Benefits Increase 7,750
TOTAL BUDGETED EXPENDITURES $378,827

(1) Budget Reallocations --

Targeted Budget Reduction on Previously Exempted Items 300
Targeted Budget Reduction 3,300
Total FY 2006 Budget Reallocations $3,600

16
 Schedule B

UNDESIGNATED GENERAL FUNDS

UPTOWN CAMPUS

New Budget Allocations by UC|21 Funding Goals

(INCLUDES FRINGE BENEFITS WHERE APPLICABLE)
RECURRING
(IN THOUSANDS)

PLACE STUDENTS AT THE CENTER

Every Student Counts 196
Student Organizations 203
TOTAL $399

ACHIEVE ACADEMIC EXCELLENCE

Leadership Changes 1,200
College Enrollment Growth 7,784
Director, International Affairs 169
Summer Session 315
TOTAL $9,467

FORGE KEY RELATIONSHIPS & PARTNERSHIPS

Uptown Consortium Membership 400
Downtown DAAP Gallery 178
TOTAL $578

CREATE OPPORTUNITY
CincyTech Support 150
TOTAL $150

INFRASTRUCTURE NEEDS
Academic Contingency 759
COM Space 232
New Facilities/Renovations 1,146
Accounts Receivable Write-off 500
TOTAL $2,637

TOTAL NEW BUDGET ALLOCATIONS $13,231

17
 Schedule C

UNDESIGNATED GENERAL FUNDS

UPTOWN CAMPUS

NONCOMPENSATION INFLATION INCREASES

BY COMPONENT
(IN THOUSANDS)

COMPONENT RATE AMOUNT

Library Collections 0.0% $0

Utilities 5.5% 1,000

All Other 1.0% 788

TOTAL $1,788

18
 II. UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES

Undesignated General Funds Branches - Overview..................................................20

Undesignated General Funds Budget - Branch Campuses .......................................22

Raymond Walters College...................................................................................23

Clermont College .................................................................................................24

19
 UNIVERSITY OF CINCINNATI
UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES
OVERVIEW
The planning environment for the branch campuses continues to change. Much like the
Uptown campus, volatile enrollments and changes in State funding, in the form of state
budget cuts, have required careful budget planning for each campus. The most recent of
these state cuts is to Access Challenge funding. In FY 2006, due to higher than average
enrollment increases at the branch campuses in recent years, State Share of Instruction is
projected to increase at the branches.

During FY 2006, it is projected that both branches will experience modest enrollment
growth. Both Raymond Walters’ and Clermont’s enrollment growth is projected to be
approximately 3%.

RAYMOND WALTERS COLLEGE

Raymond Walters’ 7.7% increased revenue projection is based upon a combination of

enrollment growth of 3% and tuition and fees rates that have been increased by 6% for
FY 2006.

Raymond Walters College continues to emphasize its student and community-centered

approach to education. This year, the college will expand the first-year student
experience, student orientation, the Radiological Technical Baccalaureate Program and,
in conjunction with the Colleges of Business and Arts & Sciences, bring the Business
Completion Program to the campus. Additionally, we will be upgrading the student
computer labs, campus network and electronic classrooms.

The community’s need for trained EMTs, First Responders and Paramedics has allowed
for the expansion of the Raymond Walters College Emergency Medical Technology
Program. This program is now being offered in three locations: RWC, Clermont, and in
Northern Kentucky. Upon successful completion of their chosen program, the student
receives national certification as well as being certified in Ohio/Kentucky.

The campus has experienced tremendous growth over the last five years and, with that
growth, several capital programs were undertaken. Our capital goals for this year include
completing the Veterinary Technology building which will allow the program to expand
and move the program to its home campus – Raymond Walters. Students will now be
able to complete their studies on one campus.

As we continue to look for ways to better meet student and community needs, Raymond
Walters College and the University Architects are planning for a new technology
building (completion in the 2009-10 academic year). This building will allow for
expansion of the Technical Baccalaureate Programs and joint completion programs with
the Uptown campus.

20
CLERMONT COLLEGE

Revenues reflect a 6% increase in tuition and credit hour enrollment is projected to

increase 3%. The College has also increased its Instructional Technology and Equipment
Fee (ITIE) from $75/quarter to $80/quarter. State appropriations reflect the latest
projections from the Ohio Board of Regents.

Expenditures reflect funding for approved new faculty positions, new academic
initiatives, and support of existing academic programs. Also included is funding to
complete the new West Woods Academic Center and debt financing for short-term
borrowings.

21
 UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES
(IN THOUSANDS)

2004-05 2005-06 Dollar Percent

Budget Budget Change Change

RESOURCES
Gross Tuition, Fee & Other Student Charges $24,414 $26,557 $2,143 8.78%
Less Scholarships & Fellowships (252) (335) (83) 32.94%
Net Tuition, Fee & Other Student Charges $24,162 $26,222 $2,060 8.53%

State Appropriations (State Share of Instruction) 12,919 14,366 1,447 11.20%

State Appropriations (Challenges) 1,893 1,893 0 0.00%
Govt. & Private Grants & Contracts 41 46 5 12.20%
Other Sources 142 93 (49) -34.90%
Total Resources 39,157 42,620 3,463 8.84%

EXPENDITURES
Educational & General
Instructional & General 21,422 22,703 1,281 5.98%
Public Service 387 609 222 57.27%
Academic Support 4,643 5,065 422 9.10%
Student Services 3,004 3,232 228 7.58%
Institutional Support 5,543 6,000 458 8.25%
Operation & Maintenance of Plant 3,496 3,967 472 13.50%
Total Educational & General 38,494 41,577 3,083 8.01%
Mandatory Transfers
Debt Service 120 700 580 483.33%
Nonmandatory Transfers
Subsidies to Non-Instructional Units 258 258 0 0.00%
Other 285 85 (200) -70.32%
Total Expenditures & Transfers 39,157 42,620 3,463 8.84%

Net Increase (Decrease) in Fund Balance $0 $0

22
 UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES
RAYMOND WALTERS COLLEGE
(IN THOUSANDS)

2004-05 2005-06 Dollar Percent

Budget Budget Change Change

RESOURCES
Gross Tuition, Fee & Other Student Charges $15,808 $17,019 $1,211 7.66%
Less Scholarships & Fellowships (82) (90) (8) 9.76%
Net Tuition, Fee & Other Student Charges $15,726 $16,929 $1,203 7.65%

State Appropriations (State Share of Instruction) 8,594 9,344 750 8.73%

State Appropriations (Challenges) 1,147 1,147 0 0.00%
Govt. & Private Grants & Contracts 12 17 5 41.67%
Other Sources 89 74 (15) -16.85%
Total Resources 25,568 27,511 1,943 7.60%

EXPENDITURES
Educational & General
Instructional & General 14,383 14,970 587 4.08%
Public Service 310 466 156 50.22%
Academic Support 3,257 3,622 365 11.20%
Student Services 1,511 1,558 47 3.14%
Institutional Support 3,175 3,562 387 12.18%
Operation & Maintenance of Plant 2,277 2,680 403 17.70%
Total Educational & General 24,913 26,858 1,945 7.81%
Mandatory Transfers
Debt Service 120 350 230 191.67%
Nonmandatory Transfers
Subsidies to Non-Instructional Units 173 173 0 0.00%
Other 362 130 (232) -64.08%
Total Expenditures & Transfers 25,568 27,511 1,943 7.60%

Net Increase (Decrease) in Fund Balance $0 $0

23
 UNDESIGNATED GENERAL FUNDS
BRANCH CAMPUSES
CLERMONT COLLEGE
(IN THOUSANDS)

2004-05 2005-06 Dollar Percent

Budget Budget Change Change

RESOURCES
Gross Tuition, Fee & Other Student Charges $8,606 $9,538 $934 10.84%
Less Scholarships & Fellowships (170) (245) (75) 44.12%
Net Tuition, Fee & Other Student Charges $8,436 $9,293 $859 10.17%

State Appropriations (State Share of Instruction) 4,325 5,022 696 16.10%

State Appropriations (Challenges) 746 746 0 0.00%
Govt. & Private Grants & Contracts 29 29 0 0.00%
Other Sources 53 19 (35) -65.16%
Total Resources 13,589 15,109 1,520 11.18%

EXPENDITURES
Educational & General
Instructional & General 7,039 7,733 695 9.87%
Public Service 77 143 66 85.56%
Academic Support 1,386 1,443 57 4.15%
Student Services 1,493 1,674 180 12.08%
Institutional Support 2,368 2,438 71 2.99%
Operation & Maintenance of Plant 1,218 1,287 69 5.64%
Total Educational & General 13,581 14,719 1,138 8.38%
Mandatory Transfers
Debt Service 0 350 350 100.00%
Nonmandatory Transfers
Subsidies to Non-Instructional Units 85 85 0 0.00%
Other (77) (45) 32 -40.98%
Total Expenditures & Transfers 13,589 15,109 1,520 11.18%

Net Increase (Decrease) in Fund Balance $0 $0

24
 III. STUDENT FEES AND HISTORICAL DATA

Approved Student Fees.................................................................................................26

Summary of All Quarterly Student Fees - All Campuses ........................................27

Summary of All Annual Student Fees - All Campuses..............................................27

Instructional Subsidy and Student Fees - Ten & Five Year Trends ........................28
Ten & Five Year Fee History - Uptown Campus Resident Fees .............................28

Full Time Equivalent (FTE) Enrollments, 1996-2006 ...............................................29

Summary of Resident Student Fees – Fall FY 2004 & Fall FY 2005

OBR Institutions ..................................................................................................30

25
 UNIVERSITY OF CINCINNATI
APPROVED REVISED QUARTERLY STUDENT FEES
EFFECTIVE AUTUMN QUARTER 2005

CAMPUS LIFE FEE1 GENERAL FEE IT&IE FEE2

FY05 FY06 FY05 FY06 FY05 FY06

FULL TIME RATES Actual Approved Actual Approved Actual Approved
Undergraduate Programs:
Uptown Campus 131 139 234 237 93 99
Center for Access & Transition 131 139 234 237 93 99
3
Clermont College 0 0 139 142 75 80
3
Raymond Walters College 0 0 139 142 75 80
Professional Programs:
Law 4 197 208 351 356 140 149
Medicine 131 139 234 237 0 0
Graduate Programs5 131 139 234 237 93 99

INSTRUCTIONAL FEE
AND NONRESIDENT SURCHARGE

Ohio Out-of-State6
FY05 FY06 FY05 FY06
FULL TIME RATES Actual Approved Actual Approved
Undergraduate Programs:
Uptown Campus 2,335 2,484 6,659 7,068
Center for Access & Transition 1,735 1,850 6,659 7,068
Clermont College 1,138 1,211 3,177 3,373
Raymond Walters College 1,339 1,424 3,811 4,045
Professional Programs:
Law 4 6,354 7,392 12,407 13,929
Medicine 6,912 7,484 12,290 13,292
Graduate Programs5 2,867 3,116 5,677 6,151

PART TIME PER CREDIT HOUR FEES

(INSTRUCTIONAL, GENERAL, IT&IE, CAMPUS LIFE
AND NONRESIDENT SURCHARGE)

Ohio Out-of-State
FY05 FY06 FY05 FY06
PART-TIME RATES Actual Approved Actual Approved
Undergraduate Programs:
Uptown Campus 233 247 594 629
Center for Access & Transition 183 194 594 629
Clermont College 113 120 283 300
Raymond Walters College 130 138 336 356
Professional Programs:
Law4 587 676 1,092 1,221
Medicine 607 655 1,055 1,139
Graduate Programs5 333 360 614 663

(1) Campus Life Fee approved at the May 23, 2000 Board of Trustees meeting.
(2) The IT&IE Fee assists in funding information technology, instructional equipment and improved student access to
computer resources and other instructional materials.
(3) Includes parking fee of $33.
(4) College of Law tuition calculated on the semester basis. Supplemental fee increase approved at the May 21, 2003
Board of Trustees meeting.
(5) Medicine Graduate Programs do not charge the IT&IE Fee.
(6) Includes the Ohio instructional fee and the non-resident surcharge.

26
 REVISED SUMMARY OF QUARTERLY STUDENT FEES
ALL CAMPUSES

FULL-TIME FULL-TIME
RESIDENT TUITION & FEES NON-RESIDENT TUITION & FEES

FY05 FY06 FY05 FY06

Tuition & Tuition & Percent Tuition & Tuition & Percent
Fees Fees Change Fees Fees Change

Undergraduate
Uptown Campus 2,793 2,959 5.9% 7,117 7,543 6.0%
Center for Access and Transition 2,193 2,325 6.0% 7,117 7,543 6.0%
Clermont College 1 1,352 1,433 6.0% 3,391 3,595 6.0%
Raymond Walters College 1 1,553 1,646 6.0% 4,025 4,267 6.0%
Professional Programs
Law 2 7,042 8,105 15.1% 13,095 14,642 11.8%
Medicine 7,277 7,860 8.0% 12,655 13,668 8.0%
Graduate Programs3 3,325 3,591 8.0% 6,135 6,626 8.0%

SUMMARY OF ANNUAL STUDENT FEES

ALL CAMPUSES

FULL-TIME FULL-TIME
RESIDENT TUITION & FEES NON-RESIDENT TUITION & FEES

FY05 FY06 FY05 FY06

Tuition & Tuition & Percent Tuition & Tuition & Percent
Fees Fees Change Fees Fees Change
Undergraduate
Uptown Campus 8,379 8,877 5.9% 21,351 22,629 6.0%
Center for Access and Transition 6,579 6,975 6.0% 21,351 22,629 6.0%
Clermont College 1 4,056 4,299 6.0% 10,173 10,785 6.0%
Raymond Walters College 1 4,659 4,938 6.0% 12,075 12,801 6.0%
Professional Programs
Law 2 14,084 16,210 15.1% 26,190 29,284 11.8%
Medicine 21,831 23,580 8.0% 37,965 41,004 8.0%
Graduate Programs3 9,975 10,773 8.0% 18,405 19,878 8.0%

(1) A parking fee of $33 per quarter is assessed by the branch campuses (included in the above amounts).
(2) College of Law tuition calculated on the semester basis. Supplemental fee increase approved at the May 21, 2003
Board of Trustees meeting.
(3) Medicine Graduate Programs do not charge the IT&IE Fee.

27
 STATE SHARE OF INSTRUCTION AND STUDENT FEES
TEN YEAR & FIVE YEAR TRENDS
UPTOWN CAMPUS
(IN THOUSANDS)

State Share of Instruction (1) Student Fees (2)

State Share of Dollar Percent Dollar Percent
Instruction Change Change Fees Change Change

FY 1997 Actual 149,083 4,699 3.3% 129,119 3,352 2.7%

FY 1998 Actual 154,691 5,608 3.8% 135,721 6,602 5.1%
FY 1999 Actual 155,198 507 0.3% 139,211 3,490 2.6%
FY 2000 Actual 159,351 4,153 2.7% 145,227 6,016 4.3%
FY 2001 Actual (3) 159,282 (69) 0.0% 150,719 5,492 3.8%
FY 2002 Actual (4) 149,894 (9,388) -5.9% 170,582 19,863 13.2%
FY 2003 Actual (5) 144,220 (5,674) -3.8% 195,126 24,544 14.4%
FY 2004 Actual 144,188 (32) 0.0% 218,477 23,351 12.0%
FY 2005 Projected 140,384 (3,804) -2.6% 248,978 30,501 14.0%
FY 2006 Budget 141,146 762 0.5% 283,943 34,965 14.0%

Ten Year Average Increase -0.2% 8.6%

Five Year Average Increase -2.4% 13.5%

(1) These figures represent the FTE driven State Share of Instruction. Other challenge items
such as Access, Success, Jobs, Research and Priorities in Higher Education are not reflected in this table.
(2) Student Fees include Instructional, General, IT&IE, Campus Life and Non-Resident Fees.
(3) Reduced by a 1% Statewide Budget Cut.
(4) Reduced by a 6% Statewide Budget Cut.
(5) Reduced by a 2.5% Statewide Budget Cut.

ANNUAL FEE HISTORY

OHIO RESIDENT FEES - UPTOWN CAMPUS

Center for
Under- Access and
Year graduate Transition** Graduate Law Medicine

1995-96 3,918 3,918 5,442 6,570 11,037

1996-97 4,152 4,152 5,445 6,900 11,478
1997-98 4,509 4,443 5,568 7,395 12,051
1998-99 4,746 4,590 5,586 7,706 12,537
1999-00 4,998 4,569 5,880 8,104 13,173
2000-01 5,337 4,401 6,264 8,600 13,902
2001-02 Fall 5,823 4,686 6,822 9,348 15,090
2002-03 6,936 5,448 8,094 11,020 17,709
2003-04 7,623 5,988 8,985 12,236 19,662
2004-05 8,379 6,579 9,975 14,084 21,831
2005-06 8,883 6,975 10,773 16,210 23,580

Ten Year Average Annual Increase $496 $306 $533 $964 $1,254

Five Year Average Annual Increase $709 $515 $902 $1,522 $1,936

Ten Year Average Annual Increase 8.6% 6.1% 7.2% 9.6% 8.0%

Five Year Average Annual Increase 10.8% 9.7% 11.5% 13.6% 11.2%

**Formerly University College

28
 FULL TIME EQUIVALENT (FTE) ENROLLMENTS
ANNUALIZED (Autumn and Summer), 1995-1998

Uptown Campus Raymond

Graduate & Walters Clermont Grand
Year Undergrad Professional Total Branch Branch Total

1995-96 17,175 5,798 22,973 2,299 1,325 26,597

1996-97 17,349 5,860 23,209 2,315 1,518 27,042
1997-98 17,358 5,333 22,691 2,378 1,580 26,649

ALL-TERMS SUBSIDY ELIGIBLE REPORTING, 1997-2006

1997-98 15,945 4,954 20,899 2,173 1,478 24,550

1998-99 15,739 4,899 20,638 2,096 1,355 24,089
1999-00 15,588 4,902 20,490 2,174 1,363 24,027
2000-01 15,103 5,031 20,134 2,244 1,469 23,847
2001-02 15,200 5,265 20,465 2,458 1,656 24,579
2002-03 14,867 5,406 20,273 2,650 1,778 24,701
2003-04 15,026 5,461 20,487 2,847 2,017 25,351
Est. 2004-05 15,068 5,704 20,772 2,932 2,092 25,796
Est. 2005-06 15,283 6,177 21,460 3,020 2,155 26,635

29
 SUMMARY OF RESIDENT STUDENT FEES
OHIO BOARD OF REGENTS' INSTITUTIONS

UNDERGRADUATE FEES
Fall Fall
FY 2004 FY 2005 Percent
Fees Fees Change
Miami University1 8,353 9,042 8.2%
University of Cincinnati 7,623 8,379 9.9%
Bowling Green State University (B) 7,408 8,072 9.0%
Bowling Green State University (A) 7,144 7,784 9.0%
Ohio University (B) 7,128 7,770 9.0%
Ohio State University (C) 6,651 7,542 13.4%
University of Akron (B) 6,809 7,510 10.3%
Kent State University 6,882 7,504 9.0%
Ohio State University (B) 6,567 7,446 13.4%
Ohio University (A) 6,792 7,404 9.0%
University of Akron (A) 6,479 7,147 10.3%
University of Toledo 6,426 7,054 9.8%
Ohio State University (A) 6,018 6,828 13.5%
Cleveland State University (B) 6,072 6,822 12.4%
Wright State University (C) 5,892 6,477 9.9%
Cleveland State University (A) 5,760 6,474 12.4%
Wright State University (B) 5,682 6,246 9.9%
Wright State University (A) 5,472 6,012 9.9%
Youngstown State University 5,448 5,884 8.0%
Shawnee State University (B) 4,734 5,202 9.9%
Shawnee State University (A) 4,410 4,842 9.8%
Central State University 4,287 4,710 9.9%

Average 6,274 6,916 10.3%

GRADUATE FEES
Bowling Green State University 9,320 10,174 9.2%
University of Cincinnati 8,985 9,975 11.0%
University of Toledo 8,730 9,396 7.6%
Cleveland State University 8,320 9,325 12.1%
Miami University 8,544 9,270 8.5%
Ohio University 7,953 8,670 9.0%
Wright State University (C) 7,875 8,652 9.9%
Wright State University (B) 7,875 8,343 5.9%
Ohio State University 7,233 8,205 13.4%
Wright State University (A) 7,380 8,112 9.9%
Kent State University 7,320 7,980 9.0%
Youngstown State University 6,720 7,237 7.7%
University of Akron 5,646 6,213 10.0%
Central State University 3,624 5,940 63.9%
Shawnee State University -- -- N/A

Average 7,538 8,392 13.4%

Source: "FALL SURVEY OF STUDENT CHARGES - For Academic Year 2004 - 2005" by The Ohio Board of Regents

Amounts shown include the Instructional, General/Facilities Fees, IT&IE Fee and Campus Life Fee.
1
Miami University is $19,642 less scholarships for an average of $9,042 per year.
(A): Denotes fees charged to continuing students who enrolled before the 2002 summer term.
(B): Denotes fees charged to continuing students who enrolled after the 2002 summer term.
(C): Denotes fees assessed to new students entering autumn term 2003, if different than fees charged to continuing students.

30
 IV. DESIGNATED GENERAL FUNDS
HOXWORTH BLOOD CENTER

Overview ........................................................................................................................32

Hoxworth Blood Center………..……………………………………………………..33

31
 UNIVERSITY OF CINCINNATI
DESIGNATED GENERAL FUNDS
HOXWORTH BLOOD CENTER
OVERVIEW
Under the leadership of Ronald A. Sacher, MD, Hoxworth Blood Center continues to
achieve its goals as our community’s only blood center and as an integral part of the
University of Cincinnati. Hoxworth’s mission is to enhance the well being of patients in
our service area by assuring a reliable and economical supply of the safest possible
blood, by providing innovative hemotherapy services and by promoting research and
education programs in transfusion medicine. While the provision of blood, blood
components, and blood-related services for the patients in the 27 tri-state hospitals and
medical centers served by Hoxworth continues to drive the organization, the organization
continued to focus on its major strategic planning initiative to assure its continued growth
and success. This strategic planning initiative focuses on five critical success factors that
include donors, fund raising, niche marketing, community outreach and continuous
improvement.

• In fiscal year 2004, Hoxworth Blood Center served as the steward for 87,910
blood donations and 8,104 platelet donations. Hoxworth is currently on track to
collect 91,000 blood donations and 9,300 platelet donations in fiscal year 2005.
The target for FY 2006 is 95,000 blood donations and 9,900 platelet donations.

• Hoxworth Blood Center was one of six blood centers awarded the REDS II
(Retrovirus Epidemiology Donor Study) contract. This is a five year contract
totaling $1.89 million dollars.

• Hoxworth Blood Center made major changes to several of our neighborhood

donor centers. We moved the Western Hills donor center and appointment center
to new facilities, expanded our Ft. Mitchell donor center, and located a new
facility for our Tri-County donor center.

• Hoxworth Blood Center joined BCA/hemerica, a cooperative organization

focused on group purchasing, resource sharing, benchmarking and recovered
plasma sales.

• Hoxworth Blood Center implemented the totally self-administered health history

form. Donors like the change in the process.

• Hoxworth Blood Center and Cincinnati Children’s Hospital Medical Center

Experimental Hematology received FDA approval for its Fanconi Anemia gene
therapy protocol.

32
 DESIGNATED GENERAL FUNDS
HOXWORTH BLOOD CENTER
(IN THOUSANDS)

2004-05 2005-06 Dollar Percent

Budget Budget Change Change
RESOURCES
Services Provided $32,997 $35,030 $2,033 6.16%
Interest Income 280 280 0 0.00%
Total Resources 33,277 35,310 2,033 6.11%

EXPENDITURES
Compensation 15,465 15,780 315 2.04%
Other 15,135 16,642 1,507 9.95%
Total Educational & General 30,600 32,422 1,822 5.96%
Mandatory Transfers
Debt Service 950 949 (1) -0.13%
Nonmandatory Transfers
Plant Funds 1,100 1,100 0 0.00%
Total Expenditures & Transfers 32,650 34,471 1,821 5.58%

Net Increase (Decrease) in Fund Balance $627 $839

33
 VII. AUXILIARY OPERATIONS

Overview ........................................................................................................................35

Summary of Auxiliary Operations FY 2005 & FY 2006 ...........................................39

Campus Services Auxiliary Budget Summary FY 2005 & FY 2006 ........................40

Campus Services Auxiliary – MainStreet Budget Summary

FY 2005 & FY 2006.............................................................................................41

Room, Board, and Apartment Rates...........................................................................42

Parking Services............................................................................................................43

Intercollegiate Athletics................................................................................................44

Fifth Third Arena at the Myrl H. Shoemaker Center...............................................45

34
 UNIVERSITY OF CINCINNATI
AUXILIARY ENTERPRISES
OVERVIEW

An auxiliary enterprise provides a service to students, faculty or staff and charges fees
related to, but not necessarily equal to, the cost of the services. The distinguishing
characteristic of most auxiliary enterprises is that they are managed essentially as self-
supporting activities whose services are provided primarily to individuals in the
institutional community rather than to departments of the institution.

The Campus Services auxiliary enterprise was created in Fiscal Year 2000 to support the
new Campus Life and MainStreet planning initiatives. Within FY 2006 there will be
several key happenings that will make it necessary for a more comprehensive
collaboration with Campus Services and the Division of Finance. There will be the need
to construct a detailed matrix to describe and fund the following auxiliary happenings in
housing, CRC and parking. The following are the highlights of each unit's FY 2006
budget plan.

CAMPUS SERVICES AUXILIARY - Overview

Campus Services is a single umbrella organization that consists of six auxiliary

departments that will provide a coordinated effort to meet the needs of the campus
community:

• Retail Services (Bookstores, Vending, • Kingsgate Conference Center

Convenience Stores, Central Stores) and University Conferencing
• Housing and Food Services • Campus Recreation Center
• MainStreet Operations • Bearcat Campus Card

Retail Services consists primarily of the eight retail locations serving all campuses of the
University, including 5 bookstores, an art supply store at DAAP, Business on Main
(computer and copy shop) and the MainStreet ExpressMart. FY 2005 marked the first full
year of operations for the TUC Bookstore, the MainStreet ExpressMart (TUC), and
Business on Main (SSLC). Market on Main, a large convenience store scheduled to open
in the new Campus Recreation Center in Fall 2005, is also a part of Retail Services. The
FY 2006 budget reflects an increase in revenues due to the opening of Market on Main
and increased textbook and technology sales. Sales projections are also based on a flat
enrollment projection for the year on the Uptown campus. Electronic commerce
continues to grow at a moderate pace for sales of textbooks, medical books,
commencement, and insignia products.

Housing & Food Services serves approximately 3,476 students residing in on-campus
residence halls and apartments. Quarterly room and board rates provide the basis for
revenue for both housing and food services. There will be a rate increase for room in FY
2006 of 5% for residence hall rooms, 5% for apartments, and 8% for board plans. Greatly
increased retention of existing residents combined with strong marketing will place the
occupancy of the undergraduate facilities at capacity for Fall 2005. The new housing

35
component in the Campus Recreation Center complex is scheduled to be completed for
opening in Fall 2005 and will house 224 residents.

Housing & Food Services is also responsible for food operations in the two residential
dining centers on campus, MarketPointe and Center Court, the new dining facility in the
Campus Recreation Center. Patronage by board students and the larger University
community is expected to be strong at the new dining facility. The University contracts
with ARAMARK to provide food service at the residential dining centers and the Faculty
Club and to operate various cafés on campus.

Food Service Operations consists of residential, catering, and retail food operations on all
campuses. The primary University food service contractor ARAMARK provides
residential food service, catering, and select retail food venues at various campus
locations including Raymond Walters and Clermont Colleges.

MainStreet Operations, established in FY 2005, consists of facility management,

business operations, and programming coordination functions for the Tangeman
University Center, Steger Student Life Center, and MainStreet open spaces and meeting
rooms. This department operates several TUC venues, including the new Catskeller
Game Room & Sports Lounge and the MainStreet Cinema. MainStreet Operations
manages non-academic space scheduling as well handling over 18,000 requests for
special functions, events, and programs. MainStreet Operations coordinates over 850
programs and events that include renowned national acts, movies, and special athletic
showings.

MainStreet Operations has responsibility for catering operations (contracted to

ARAMARK) and the nine eateries located in TUC and SSLC. The food court in
Tangeman University Center includes Pizza Hut Express, Freshens (dessert concept),
Tortilla Fresca (Mexican), Gold Star Chili, and Wendy’s. TUC also operates Mick &
Mack’s Contemporary Cafe and its “grab and go” component, “Quick Mick’s. Subway
and Starbucks operate in the Steger Student Life Center.

The Bearcat Campus Card is an access control, debit and charge card system that
provides students, faculty, and staff convenient payment options for various services on
and off campus. The card system also serves as a control point for determining access to
select facilities, enrollment status, and related eligibility for campus functions. The
program provides over 400 locations where goods and services can be purchased. The
sales growth is projected to be up over 40% from last year, reaching total sales of $4.6M.

Kingsgate Conference Center and University Conferencing continues to experience a

high level of satisfaction with conferencing management services, conference facilities,
the Caminetto bistro, and lodging. This budget assumes an increase in the occupancy rate
to 73% and an average room rate of $109.

36
The Campus Recreation Center is scheduled to open in Fall 2005. Campus Recreation
Center operations and recreational programming (formerly administered through the
Division of Student Affairs) will become part of the new Campus Services auxiliary
department. Revenue sources will include a portion of the Student Life fee, membership
fees paid by employees and community members. Other revenue includes fees for value-
added programs and services.

II. OTHER AUXILIARY ENTERPRISES - Overview

Parking Services

Parking Services will continue to fulfill the principles of UC|21 in FY06. Calhoun
Garage will open completely in the fall of 2005, offering an additional 1,080 parking
spaces to our students, staff, and visitors. Parking looks forward to developing a strong
working relationship with the corporation operating the Garage overbuild. In addition to
Calhoun, a new elevator will be installed in University Avenue Garage along with the
completion of the top deck membrane project. Parking will upgrade the Library Garage
to a proximity card reader system in the summer of 2005. To meet the needs of our East
campus visitors, hourly parking will be introduced in Lots 22 and 16 during the 2006
fiscal year.

Parking seeks to meet the needs of its customer base offering decal, hourly, and special
event parking in our facilities. We will continue to offer the safety zone after hours
reduced rate parking in the Library (Woodside) Garage on the West campus as well as
the Eden Avenue Garage complex on the East Campus. Our services include the
Motorist Assistance Program for car unlocks and battery jumps. Parking looks forward
to continuous customer feedback through the use of the University of Cincinnati’s Planet
feedback. We strive to be a premier operation that takes the needs of our customers as
well as employees into account.

Parking Services is a self sustaining operation which means that we rely solely on income
derived from decals and cash parking to fund our operations. With maintenance costs for
our older facilities rising, and with the additional debt brought on by the Calhoun Garage
facility, Parking will need to increase the rates for FY06. Decal rates will increase by
5%.

Intercollegiate Athletics

This upcoming year will be a historic year for University of Cincinnati Athletics as it
begins membership in the Big East Conference. Besides aligning Cincinnati with
prestigious academic Universities in the geographical proximity, it elevates the athletic
program into one of the power conferences in the country. In FY 2006, the University’s
first year in the Big East Conference, the FY budget will be balanced due to the
Conference’s lucrative revenue sharing. Likewise, it is anticipated that the FY 2007
budget will also be balanced. In subsequent years, the deficit fund balance will be repaid,
thus eliminating the deficit by FY 2012.

In near perfect concert with the move to the Big East Conference, construction work is
moving forward as planned for the dramatic new athletics facilities project called Varsity
Village. While construction continues, the Varsity Village gift campaign is also right on
37
track, perhaps even a little ahead of schedule. It is expected that the total goal for the
campaign will be reached on schedule by the completion of fiscal year 2006.
Recognizing that facilities and operating funding must be improved, the Athletics
department agreed to forgo all increased funding for Olympic sports scholarships through
FY 2007 in order to build the debt service payments necessary to help build a world-class
facility. This funding, along with the aggressive fundraising that has taken place, will
complete that effort. As the Varsity Village gift campaign is nearing completion, plans
are to generate additional funds above capital costs to support an endowed scholarship
fund to help with scholarships and operating costs as well.

Fifth Third Arena at the Myrl H. Shoemaker Center

This budget reflects a modest increase in the current income levels and total
expenditures. While the Varsity Village construction project is being completed, there
will be limited use in this facility for other than intercollegiate athletic events and
recreation sports.

38
 SUMMARY OF AUXILIARY OPERATIONS
UPTOWN CAMPUS
(IN THOUSANDS)

FISCAL YEAR 2005

Resources Expenditures & Transfers

Total Debt Other Total Net
Auxiliary Restricted Budget Expenses Service Transfers Budget Income

Campus Services Auxiliary* $44,546 $0 $44,546 $38,249 $5,420 ($60) $43,609 $937
CSA - MainStreet 9,544 0 9,544 3,653 4,576 2,915 11,143 (1,599)
Parking Lots and Garages 13,861 0 13,861 6,196 6,502 402 13,100 761
Intercollegiate Athletics 7,753 4,692 12,445 21,516 356 (5,676) 16,196 (3,751)
Fifth Third Arena 498 0 498 1,523 602 (1,627) 498 0

GRAND TOTAL $76,202 $4,692 $80,894 $71,137 $17,456 ($4,047) $84,546 ($3,652)

FISCAL YEAR 2006

Resources Expenditures & Transfers

Total Debt Other Total Net
Auxiliary Restricted Budget Expenses Service Transfers Budget Income

Campus Services Auxiliary* $45,868 $0 $45,868 $39,166 $8,039 ($1,300) $45,905 ($37)
CSA - MainStreet 11,176 0 11,176 7,075 8,638 (1,599) 14,114 (2,938)
Parking Lots and Garages 15,184 0 15,184 6,632 6,269 902 13,803 1,381
Intercollegiate Athletics 12,910 5,454 18,364 23,625 233 (5,494) 18,364 0
Fifth Third Arena 486 0 486 1,458 600 (1,572) 486 0

GRAND TOTAL $85,624 $5,454 $91,078 $77,956 $23,779 ($9,063) $92,672 ($1,594)

* Campus Services Auxiliary includes Retail, Food Services, Housing, Kingsgate, and Conference Management.

39
 CAMPUS SERVICES AUXILIARY SUMMARY (excludes MainStreet)
Comparison of FY 2005 to FY 2006 Budget
(IN THOUSANDS)

2004-05 2005-06 Dollar Percent

Budget Budget Change Change

RESOURCES
Sales $17,029 $18,559 $1,530 8.98%
Student Meals 7,360 7,847 487 6.62%
Housing 16,727 16,176 (551) -3.29%
Rentals - - - N/A
Contracts 1,360 1,399 39 2.87%
Other 2,070 1,887 (183) -8.84%
Miscellaneous Student Fees - - - N/A
Total Resources 44,546 45,868 1,322 2.97%

EXPENDITURES & TRANSFERS

Cost of Sales 18,150 19,498 1,348 7.43%
Salaries 5,278 5,228 (50) -0.95%
Benefits 1,638 1,820 182 11.11%
DOE 7,898 8,669 771 9.76%
Campus Services Overhead 1,000 912 (88) -8.80%
University Overhead 1,495 1,521 26 1.74%
Programming 2,790 1,518 (1,272) -45.59%
Operation & Maintenance of Plant - - - N/A
Total Expenditures 38,249 39,166 917 2.40%
Mandatory Transfers
Debt Service 5,420 8,039 2,619 48.32%
Nonmandatory Transfers
Reserve for Repairs and Renovations 300 - (300) -100.00%
Reserve - Other - - - N/A
Subsidies To Non-Instructional Activities (360) - 360 -100.00%
Other - (1,300) (1,300) 100.00%
Total Expenditures and Transfers 43,609 45,905 2,296 5.26%

Net increase (decrease) in fund balance $937 ($37)

* Campus Services Auxiliary includes Retail, Food Services, Housing, Kingsgate, and Conference Management.

40
 CAMPUS SERVICES AUXILIARY SUMMARY - MainStreet
Comparison of FY 2005 to FY 2006 Budget
(IN THOUSANDS)

2004-05 2005-06 Dollar Percent

Budget Budget Change Change

RESOURCES
Sales $286 $702 416 145.45%
Student Meals - - - N/A
Housing - - - N/A
Rentals 101 45 (56) -55.45%
Contracts 294 654 360 122.45%
Other 35 332 297 848.57%
Miscellaneous Student Fees 8,828 9,443 615 6.97%
Total Resources 9,544 11,176 1,632 17.10%

EXPENDITURES & TRANSFERS

Cost of Sales 7 15 8 114.29%
Salaries 435 2,775 2,340 537.93%
Benefits 162 909 747 461.11%
DOE 2,189 2,248 59 2.70%
Campus Services Overhead 340 608 268 78.82%
University Overhead - - - N/A
Programming 520 520 - 0.00%
Operation & Maintenance of Plant - - - N/A
Total Expenditures 3,653 7,075 3,422 93.68%
Mandatory Transfers
Debt Service 4,576 8,638 4,062 88.78%
Nonmandatory Transfers
Reserve for Repairs and Renovations 390 506 116 29.74%
Reserve - Other - - - N/A
Subsidies To Non-Instructional Activities (2,744) (1,605) 1,139 -41.51%
Other 5,269 (500) (5,769) -109.49%
Total Expenditures and Transfers 11,143 14,114 2,971 26.66%

Net increase (decrease) in fund balance ($1,599) ($2,938)

* Campus Services Auxiliary - MainStreet includes Tangeman University Center/Student Life Center and Campus Recreation
Center.

41
 ROOM, BOARD, AND APARTMENT RATES
FISCAL YEAR 2005-06

2004-05 2005-06
Actual Actual

QUARTER ANNUAL QUARTER ANNUAL

1
I. SCHEDULE OF BASIC ROOM RATES
A. Calhoun, Daniels, Siddall, Dabney $1,485 $4,455 $1,560 $4,680
(Multiple Occupancy)

B. Calhoun, Daniels, Siddall, Dabney 1,731 5,193 1,818 5,454

(Designed Singles if available)

C. Calhoun, Daniels, Siddall, Dabney 1,847 5,541 1,939 5,817

(Super Single if Available)

D. Turner Hall2 1,776 5,328 1,865 5,595

(Double Suites)

E. Schneider Hall2 1,900 5,700 1,995 5,985

(Single Suites)

F. Sawyer Hall 1,542 4,626 N/A 0

(Multiple Occupancy)

G. Recreation Center 0 0 2,150 6,450

II. SCHEDULE OF BASIC BOARD RATES

19 Meals/Week Plan 990 2,970 1,070 3,210
14 Meals/Week Plan 943 2,829 1,018 3,054
12 Plus Meals/Week Plan 990 2,970 1,070 3,210
78 Plus Meals/Quarter Plan 950 2,850 1,026 3,078
78 Meals/Quarter Plan 896 2,688 968 2,904

III. SCHEDULE OF ROOM AND BOARD RATES

19 Meals/Week Plan 2,475 7,425 2,630 7,890
14 Meals/Week Plan 2,428 7,284 2,578 7,734
12 Plus Meals/Week Plan 2,475 7,425 2,630 7,890
78 Plus Meals/Quarter Plan 2,435 7,305 2,586 7,758
78 Meals/Quarter Plan 2,381 7,143 2,528 7,584
IV. OFF CAMPUS MEAL TICKET RATES
45 Meals/Quarter Plan 350 1,050 360 1,080
33 Meals/Quarter Plan 240 720 245 735
25 Meals/Quarter Plan 175 525 185 555
15 Meals/Quarter Plan 120 360 125 375

V. SCHEDULE OF APARTMENT RATES - PER MONTH

Efficiency without balcony $478 $502

Efficiency with balcony 503 528
One Bedroom 583 612
Two Bedroom 695 730
Penthouse 982 1,031

1) The option of a quarterly residence hall contract is available to upperclassmen as part of a pilot program for an
additional surcharge of $200.

2) The option of signing a twelve month lease is available to Turner Hall and Schneider Hall residents. This option adds $803
to the annual rate.

42
 PARKING LOTS AND GARAGES
(IN THOUSANDS)

2004-05 2005-06 Dollar Percent

Budget Budget Change Change

RESOURCES
Central Campus Sales and Fines $13,476 $14,761 $1,285 9.54%
Branch Campus Sales and Fines 385 423 38 9.87%
Total Resources 13,861 15,184 1,323 9.54%

EXPENDITURES & TRANSFERS

Administrative and General 2,219 2,305 86 3.88%
Operation and Maintenance of Plant 3,587 3,902 315 8.78%
University Overhead 390 425 35 8.97%
University Hall Lease 0 0 0 0.00%
Total Expenditures 6,196 6,632 436 7.04%
Mandatory Transfers
Debt Service 6,502 6,269 (233) -3.58%
Nonmandatory Transfers
Subsidies to Non-Instructional Activities (98) (98) 0 0.00%
Reserve for Repairs and Renovations 500 1,000 500 100.00%
Total Expenditures & Transfers 13,100 13,803 703 5.37%

Net Increase (Decrease) in Fund Balance $761 $1,381

43
 INTERCOLLEGIATE ATHLETICS
(IN THOUSANDS)

2004-05 2005-06 Dollar Percent

Budget Budget Change Change

RESOURCES
Sports
Basketball $2,716 $4,734 $2,018 74.30%
Football 2,858 5,097 2,239 78.34%
Gifts 4,692 5,454 762 16.24%
Other 2,179 3,079 900 41.30%
Total Resources 12,445 18,364 5,919 47.56%

EXPENDITURES & TRANSFERS

Sports
Basketball 3,064 3,330 266 8.68%
Football 6,803 7,201 398 5.85%
Women's Sports 4,328 4,751 423 9.77%
Other Men's Sports 1,570 1,976 406 25.86%
Total Sports 15,765 17,258 1,493 9.47%
Administrative and General 5,475 6,135 660 12.05%
Operation and Maintenance of Plant 276 232 (44) -15.94%
Total Expenditures 21,516 23,625 2,109 9.80%
Mandatory Transfers
Debt Service 356 233 (123) -34.55%
Nonmandatory Transfers
Subsidies to Non-Instructional Activities (5,806) (5,774) 32 -0.55%
Other 130 280 150 115.38%
Total Expenditures & Transfers 16,196 18,364 2,168 13.39%

Net Increase (Decrease) in Fund Balance ($3,751) $0

44
 FIFTH THIRD ARENA
MYRL H. SHOEMAKER CENTER
(IN THOUSANDS)

2004-05 2005-06 Dollar Percent

Budget Budget Change Change

RESOURCES
Special Event Revenue $50 $40 ($10) -20.00%
Operation and Maintenance Reimbursement 97 101 4 4.12%
Concessions 236 275 39 16.53%
Other 115 70 (45) -39.13%
Total Resources 498 486 (12) -2.41%

EXPENDITURES & TRANSFERS

Administrative and General 426 283 (143) -33.57%
Operation and Maintenance of Plant 1,097 1,175 78 7.11%
University Overhead 0 0 0 N/A
Total Expenditures 1,523 1,458 (65) -4.27%
Mandatory Transfers
Debt Service 602 600 (2) -0.33%
Nonmandatory Transfers
Subsidies to Non-Instructional Activities (1,627) (1,572) 55 -3.38%
Total Expenditures & Transfers 498 486 (12) -2.41%

Net Increase (Decrease) in Fund Balance $0 $0

45
 IV. DESIGNATED GENERAL FUNDS
MILLENNIUM RESEARCH INSTITUTE

Overview ........................................................................................................................47

Millennium Research Institute..……………………………………………………...49

46
 UNIVERSITY OF CINCINNATI
DESIGNATED GENERAL FUNDS
MILLENNIUM RESEARCH INSTITUTE
OVERVIEW

It is the goal of the University of Cincinnati to establish a separately identifiable

and self-funded research institute. It is the goal of this plan through the UC
Medical Center Research Enterprise via the Millennium Research Institute to
double the sponsored research activity of the University of Cincinnati’s College
of Medicine to $300M. The center will require the hiring of 200 new research
faculty members and will encompass, at the outset, the Genome Research
Institute (GRI) and Medical Sciences Building facilities, with the addition of the
CARE facility in the future. This center will be a major player in the
University’s participation in the Third Frontier program introduced and fully
supported by the Governor of Ohio.

The allocation methodology for Facilities and Administrative Cost (F&A) income
resulting from this increased sponsored research revenue for the Center is
different from that of the normal University policy distribution. The
methodology change is to be used on those funds received in excess of the
established base for FY 2000 related to East Campus Sponsored Programs only.
The revised allocations will be as follows:

8% Off-the-Top (Research Infrastructure)

20% Departmental Allocation
21% Facilities Expenses
19% GRI Renovations-Debt Service
32% Research Recruitment Fund
100% Total F&A Income

These distributions have been set with the knowledge that certain items such as
Off-the-Top may need to be increased if support services for these programs
increase in cost or scope. It is recognized that the Departmental Allocation of
20% is subject, at all times, to the support of this program’s infrastructure,
facility replacement, recruiting expense and a portion of unrecoverable faculty
salary and benefits involved in the Millennium program.

The established business plan leads to a self-funded end. The Center will
accumulate deficit amounts that will be subject to TIP interest charges, which
will hold harmless the Uptown campus General funds budget from lost interest
revenues. At the time the program reaches self-liquidity, the University will
revisit the restated F&A distribution policy for the Center and determine
necessary realignment with the University-wide F&A distribution policy that
exists at that time.

During the first five years of the program, the activities of the Institute have
primarily focused on identifying the appropriate programmatic areas for
47
recruitment and the establishment of task forces to identify key research recruits.
The programmatic areas have been aligned with the NIH Roadmap and key
recruitments have taken place within the identified areas. Areas of focus include
Cancer Biology, Cardiovascular Biology, Neuroscience, Metabolic Disorders and
Obesity. To date, thirty Millennium Scholars have been recruited bringing with
them $1.2M in research awards and securing approximately $2.5M in new awards
since arriving on campus. The Scholars have also submitted approximately
$19M is research applications. In addition to recruitment, significant progress
has been made in relation to the physical infrastructure of the Genome Research
Institute and the facility is now operational and generating great interest from
both the private and public sectors.

As discussed earlier and projected in the original business plan, the fund will end
the current fiscal year in a deficit position and is projected to continue to
accumulate additional expenses during FY 2006. The negative fund balance is
the result of debt service payments for the Genome Research Institute facility and
the direct expenses of recruitment and faculty start-up packages as outlined in the
Millennium plan.

48
 DESIGNATED GENERAL FUNDS
MILLENNIUM RESEARCH INSTITUTE
(IN THOUSANDS)

2004-05 2005-06 Dollar Percent

Projected Budget Change Change

RESOURCES
Govt. & Private Grants & Contracts $5,430 $8,261 $2,831 52.14%
Rental Income 440 440 0 0.00%
Other Sources 4 0 (4) -100.00%
Total Resources 5,874 8,701 2,827 48.13%

EXPENDITURES
Educational & General
Separately Budgeted Research 6,351 8,587 2,236 35.21%
Operation & Maintenance of Plant 3,626 3,883 257 7.09%
Total Educational & General 9,977 12,470 2,493 24.99%
Mandatory Transfers
Debt Service 3,820 5,058 1,238 32.41%
Nonmandatory Transfers
Plant Funds 0 0 0 N/A
Total Expenditures & Transfers 13,797 17,528 3,731 27.04%

1
Net Increase (Decrease) in Fund Balance ($7,923) ($8,827)

(1) Millennium Plan is required to be self-funded by the end of the program. Interest costs on deficit to be paid to the General Fund
included in Separately Budgeted Research expenditures.

49
 V. OTHER DESIGNATED FUNDS

Overview ........................................................................................................................51

Other Designated General Funds - Excluding Hoxworth Blood Center and

The Millennium Research Institute...................................................................52

Designated General Funds - University Service Centers:

UCit .......................................................................................................................53

Consolidated Utilities...........................................................................................54

50
 UNIVERSITY OF CINCINNATI
OTHER DESIGNATED GENERAL FUNDS
OVERVIEW
Other Designated General Funds excluding Hoxworth Blood Center and the Millennium
Research Institute are those funds that are internally restricted by Board of Trustee
approval for specific activities. Other designated funds are locally managed with little
control exercised centrally. They are managed by not allowing departments to budget
above their expected level of revenue plus accumulated fund balance. They represent an
important opportunity for leveraging undesignated general funds in supporting the overall
mission of the institution and providing enhancements. Incentive programs for sponsored
projects and continuing education activities give departments discretionary funds that are
used for instructional programs.

The student fee revenue herein is the result of fees designated for self-supported
instructional program expenditures. Also included in this revenue projection is the
Information Technology and Instructional Equipment (IT&IE) fee income of $6.4M.
This fee is used to fund improved access to and assistance with information technology
and to fund other types of instructional equipment. Virtually all students on the Uptown
campus are assessed this $99 per quarter fee.

The projected grant and contract revenue primarily represents the incentive monies
retained by departments for their share of the Sponsored Project Incentive Award
Program. Instruction, as well as departmental research, is supported through the use of
these funds. They are an important source of flexibility for the departments, especially as
additional research generates more funds. This income rises in relation to the increase in
grants and contracts awarded to the university.

The sales and services revenue is generated primarily by the outpatient clinical activities
of the College of Medicine. Much of the net revenue, above the level of support needed
to operate the clinical labs, is used to supplement the instructional expenditures of
individual departments.

FY 2006 is the seventh year in which OBR Challenge program income is being
incorporated into the Undesignated General Fund with transfers being made to
designated funds to support both existing programs and policies that contribute toward
the goals of each Challenge program. The Undesignated General Funds category within
designated reflects $5.6M of transfers to meet these program goals.

The final two tables in this section represent the budgets for the two largest University
Service Centers. These are centers that provide products or services to the entire
University community, and charge rates to the various funds to recover their costs. These
schedules cannot be summed with the other Designated Fund schedules to determine a
total for the fund, because their income is accounted for as an offset to expenditures.
While they function as self-supporting entities over time, they are presented here due to
their relative size when compared to other funds and departments.

51
 DESIGNATED GENERAL FUNDS
EXCLUDING HOXWORTH BLOOD CENTER AND MILLENNIUM RESEARCH INSTITUTE
(IN THOUSANDS)

2004-05 2005-06 Dollar Percent

Budget Budget Change Change
RESOURCES
Gross Tuition, Fee & Other Student Charges $17,625 $18,379 $754 4.28%
Less Scholarships & Fellowships 0 0 0 0.00%
Net Tuition, Fee & Other Student Charges $17,625 $18,379 754 4.28%

Govt. & Private Grants & Contracts 22,442 23,366 924 4.12%
Private Gifts 852 882 30 3.52%
Endowment Income 1,137 1,554 417 36.68%
Sales & Service 19,276 19,858 582 3.02%
Other Sources 1,254 1,433 179 14.27%
Total Resources 62,586 65,472 2,886 4.61%

EXPENDITURES
Educational & General
Instruction and Departmental Research 15,603 15,993 390 2.50%
Separately Budgeted Research 11,898 11,923 25 0.21%
Public Service 11,916 12,161 245 2.06%
Academic Support 10,485 10,640 155 1.48%
Student Services 11,373 12,229 856 7.53%
Institutional Support 3,900 6,231 2,331 59.77%
Scholarships & Fellowships 979 1,068 89 9.09%
Total Educational & General 66,154 70,245 4,091 6.18%

Auxiliary Enterprises 1,798 (14) (1,812) -100.80%

Mandatory Transfers
Debt Service 7,072 6,810 (262) -3.70%
Nonmandatory Transfers
Subsidies to Non-Instructional Units (1,379) 420 1,799 -130.48%
Undesignated General Funds (17,667) (13,294) 4,373 -24.75%
Other 1,339 1,135 (204) -15.24%
Total Expenditures & Transfers 57,317 65,302 7,985 13.93%

Net Increase (Decrease) in Fund Balance $5,269 $170

52
 DESIGNATED GENERAL FUNDS
UCit
(IN THOUSANDS)

2004-05 2005-06 Dollar Percent

Projected Budget Change Change
RESOURCES
Recovery - General Fund $10,600 $10,900 $300 2.83%
Recovery - Hospital 30 30 0 0.00%
Recovery - Other 15,299 15,448 149 0.97%
Outside Sales 325 325 0 0.00%
Total Resources 26,254 26,703 450 1.71%

EXPENDITURES
Compensation 12,586 13,313 727 5.78%
All Other 11,494 11,328 (165) -1.44%
Total Expenditures 24,079 24,641 563 2.33%
Mandatory Transfers
Debt Service 87 70 (17) -19.08%
Nonmandatory Transfers
Plant Fund 1,375 1,250 (125) -9.09%
Total Expenditures & Transfers 25,541 25,961 421 1.64%

Net Increase (Decrease) in Fund Balance $713 $742

This budget reflects resources and expenditures for a University Service Center. A University Service Center
is an entity which provides a service or product on a continuing basis to the University Community (sometimes
including the public) and charges the user a predetermined rate which is calculated to recover the total cost of
operation over a specified period of time.

53
 DESIGNATED GENERAL FUNDS
CONSOLIDATED UTILITIES
(IN THOUSANDS)

2004-05 2005-06 Dollar Percent

Projected Budget Change Change
RESOURCES
Recovery - Steam $14,387 $17,884 $3,497 24.31%
Recovery - Chilled Water 8,765 11,397 2,632 30.03%
Recovery - Electric 17,230 21,683 4,453 25.84%
Recovery - Water/Sewage 3,420 3,587 167 4.88%
Total Resources 43,802 54,551 10,749 24.54%

EXPENDITURES
Compensation 4,365 4,574 209 4.79%
All Other 35,493 42,477 6,984 19.68%
Total Expenditures 39,858 47,051 7,193 18.05%
Mandatory Transfers
Debt Service 6,078 6,044 (34) -0.56%
Nonmandatory Transfers
Designated Central (5,300) (4,800) 500 -9.43%
Plant Fund 988 1,190 202 20.45%
Undesignated Central 11 10 (1) -9.09%
Other 3,329 3,731 402 12.08%
Total Expenditures & Transfers 44,964 53,226 8,262 18.37%

Net Increase (Decrease) in Fund Balance ($1,162) $1,325

This budget reflects resources and expenditures for a University Service Center. A University Service Center
is an entity which provides a service or product on a continuing basis to the University Community (sometimes
including the public) and charges the user a predetermined rate which is calculated to recover the total cost of
operation over a specified period of time.

54
 VI. RESTRICTED FUNDS

Overview ........................................................................................................................56

Restricted Funds ...........................................................................................................57

55
 UNIVERSITY OF CINCINNATI
RESTRICTED FUNDS
OVERVIEW
Restricted Funds are those funds that the University receives that have been designated
by an external agency or individual and are limited to the support of a specific purpose
and/or unit. Included in this group are gift funds, the earnings on endowments, and both
private and governmental grants and contracts. Restricted funds are under the local
control of colleges and departments, within the external restrictions imposed. Actual
income must have been received, or guaranteed, from these sources before expenditure
budgets are approved. These funds are an important addition to the University budget, in
terms of their leveraging effects to the undesignated general fund.

Restricted fund revenue sources have been aggressively pursued, and the results of those
efforts are being realized in the current fiscal year. We are anticipating revenues in
excess of budget for the current fiscal year of approximately $73K.

State appropriations are primarily funds retained by the College of Medicine for Clinical
Teaching Subsidy. A variety of programs are supported at the College with this
important source of funds.

Grants and contract income is received from both private and governmental research.
Federal government grant support had declined during the mid-90’s, after a period of
extraordinary growth. Projections for this income category for FY 2005 and again in FY
2006 are moving in the positive direction. This has been further confirmed at the
national level with increases to the NIH budget. This progress is due mainly to the
implementation of the COM Millennium Plan, which is further detailed in the fund
entitled Millennium Research Institute. We therefore anticipate that this upward trend
will continue, and we have budgeted FY 2006 at $9M above this year’s anticipated level.

Endowment income continues to rise, and we anticipate continued growth in this

category for FY 2006.

Included in the “Other” nonmandatory transfers, almost $53.4M represents the total
overhead transferred back to unrestricted funds. Over 40% of the overhead earned on
the grants and contracts is channeled back to departments through the Sponsored Project
Incentive Program in designated funds. These monies are used by the departments for
discretionary purposes. The remaining overhead transfer is reported as unrestricted
revenue to the undesignated general fund.

56
 RESTRICTED FUNDS
(IN THOUSANDS)

2004-05 2005-06 Dollar Percent

Budget Budget Change Change
RESOURCES
State Appropriations $13,334 $12,843 ($491) -3.68%
Govt. & Private Grants & Contracts 201,042 210,299 9,257 4.60%
Private Gifts 22,795 23,949 1,154 5.06%
Endowment Income 51,742 52,871 1,129 2.18%
Temporary Investments 168 141 (27) -16.07%
Total Resources 289,081 300,103 11,022 3.81%

EXPENDITURES
Educational & General
Instruction and Departmental Research 40,070 41,201 1,131 2.82%
Separately Budgeted Research 135,403 139,229 3,826 2.83%
Public Service 8,584 8,085 (499) -5.81%
Academic Support 9,607 11,124 1,517 15.79%
Student Services 4,444 3,879 (565) -12.71%
Institutional Support 708 705 (3) -0.42%
Operation & Maintenance of Plant 728 728 0 0.00%
Scholarships & Fellowships 38,036 40,964 2,928 7.70%
Total Educational & General 237,580 245,915 8,335 3.51%

Mandatory Transfers
Debt Service 800 758 (42) -5.25%
Nonmandatory Transfers
Other 50,604 53,357 2,753 5.44%
Total Expenditures & Transfers 288,984 300,030 11,046 3.82%

Net Increase (Decrease) in Fund Balance $97 $73

57
 UC|21 THE NEW URBAN RESEARCH UNIVERSIT Y

Fiscal year 2005

UC Budget
UC Audited Financial report
A133 audit statement

FY 05

University of Cincinnati
 UC|21 THE NEW URBAN RESEARCH UNIVERSIT Y

Fiscal year 2004

UC Budget
UC Audited Financial report
A133 audit statement

FY 04

University of Cincinnati
UNIVERSITY OF CINCINNATI

FINANCIAL REPORT

For the Years Ended June 30, 2004 and 2003

 BOARD OF TRUSTEES*

Candace Kendle (2005)

George A. Schaefer, Jr. (2006)

Phillip R. Cox Chair (2008)

Anant R. Bhati Secretary (2009)

Jeffrey L. Wyler Vice Chair (2010)

H. C. Buck Niehoff (2011)

Sandra W. Heimann (2012)

Gary Heiman (2013)

Arlen E. Herrell Student Member (2005)

James R. Masterson Student Member (2006)

OFFICERS OF THE UNIVERSITY

Nancy L. Zimpher President

Anthony J. Perzigian Senior Vice President and Provost for Baccalaureate

and Graduate Education

Jane E. Henney Senior Vice President and Provost for Health Affairs

Dale L. McGirr Senior Vice President for Planning, Finance, and Community Development

Sandra Degen Acting Vice President for Research

Mitchel D. Livingston Vice President for Student Affairs and Services

James D. Plummer Chief Financial Officer

Frederick H. Siff Vice President for Information Technology

James R. Tucker Vice President for Administrative and Business Services

Gregory J. Vehr Vice President for Governmental Relations and University Communications

James E. Wesner General Counsel and Vice President for Legal Affairs

Daniel L. Grafner Vice President for Development and Executive Director,

The University of Cincinnati Foundation

*The expiration date of each trustee's term is shown in parentheses.

 TABLE OF CONTENTS

Report of Independent Accountants ................................................................................ 7

Management Discussion and Analysis............................................................................ 9

Statements of Net Assets.............................................................................................. 18

Statements of Revenues, Expenses and Changes in Net Assets ................................. 19

Statements of Cash Flows ............................................................................................ 20

Index to the Notes to Financial Statements................................................................... 22

Notes to Financial Statements ...................................................................................... 23

UNIVERSITY OF CINCINNATI JUNE 30, 2004

MANAGEMENT’S DISCUSSION AND ANALYSIS

INTRODUCTION

The following discussion and analysis provides an overview of the financial position and activities of the University of
Cincinnati (the “University”) for the year ended June 30, 2004, with selected comparative information for the years
ended June 30, 2003 and 2002. This discussion has been prepared by management and should be read in
conjunction with the financial statements and the notes thereto, which follow this section.

The University was founded in 1819 and was city owned until becoming a state university in 1977. The University is
composed of 14 colleges, one division and one school and operates on five campuses in southwest Ohio. It has an
enrollment of approximately 34,000 students. There are approximately 2,000 full-time faculty members and a total
faculty of 3,300. The University has been designated in long-range planning by the Ohio Board of Regents as one of
only two comprehensive graduate public universities in the state. In total, the University employs more than 14,000
people and is the largest employer in the City of Cincinnati.

The University and its Board of Trustees are declared by statute to be a public body performing essential
governmental functions serving public purposes and an instrumentality of the State of Ohio.

The University is affiliated with a number of health-care, educational, cultural and governmental institutions. Through
such affiliations, the University is able to broaden its curricular offerings.

USING THE FINANCIAL STATEMENTS

The University’s financial report includes three financial statements: the Statement of Net Assets; the Statement of
Revenues, Expenses and Changes in Net Assets; and the Statement of Cash Flows. These financial statements are
prepared in accordance with Governmental Accounting Standards Board (GASB) Statement 35, Basic Financial
Statements—and Management’s Discussion and Analysis—for Public Colleges and Universities, as amended by
GASB Statements 37 and 38. These statements establish standards for external financial reporting for public
colleges and universities and require that financial statements focus on the University as a whole, with resources
classified for accounting and reporting purposes into three net asset categories.

Revenues and expenses are categorized as either operating or non operating. Significant recurring sources of the
University’s revenues, including state appropriations, gifts and investment income are considered non operating.

Scholarship allowances applied to student accounts are shown as a reduction of student tuition and fee revenues,
while stipends and other payments made directly to students are presented as scholarship and fellowship expense.

Capital assets, including general infrastructure assets, are shown net of depreciation. However, there is no
requirement to fund the accumulated depreciation. Instead, capital assets are largely funded by state capital
appropriations, issuance of debt, and by major gifts that support the academic, research and student services
missions of the institution. Gifts and capital appropriations are reflected on the financial statements as non operating
revenue and other revenue, respectively. The corresponding annual depreciation expense is reflected as an
operating expense.

Accounts of the University of Cincinnati Foundation have been consolidated in the accompanying financial
statements in a discrete columnar format.

9
UNIVERSITY OF CINCINNATI JUNE 30, 2004

FINANCIAL HIGHLIGHTS

The University’s financial position remained strong at June 30, 2004, with total assets of $ 2.9 billion and liabilities of
$ 1.1 billion. Net assets, which represent the residual interest in the University’s assets after liabilities are deducted,
increased by $122 million in fiscal 2004 to $1.76 billion, or 61% of total assets.

- Total assets increased by $373 million, or 15%, primarily due to increases in the value of investments and
the addition of capital assets.

- Total liabilities increased by $251 million, or 29%, primarily due to the issuance of new debt.

- These factors were the primary cause of the $122 million increase in net assets during 2004

Income before other revenues, expenses, gains or losses includes the effect of several significant transactions,
including fluctuations in the market value of investments; major non recurring gifts; non cash depreciation; losses on
the disposal of assets; and a major adjustment to the reserve for uncollectible receivables. The net effects of these
transactions on income before other revenues, expenses, gains or losses is shown below.

2004 2003 2002

Change in investment value $ 152 $ (26) $ (109)

Non recurring gift - - 60
Depreciation (62) (57) (53)
Loss on asset disposal (6) (14) -
Uncollectible receivables (7) - -
$ 77 $ (97) $ (102)

Because of a flat level of state appropriations, increases in tuition ranging from 8% to 11% were implemented in
2004. Similar increases in tuition were implemented in 2003 to offset a 3.4% decrease in state appropriations.
Although some of the effects of the lower state appropriations were offset in 2003 by one time capital gains on short
term investments, similar positive offsets were not available in 2004 due to the current interest rate market. However,
the continued renovation and addition of research facilities in accordance with implementation of the Millennium
Research Institute was reflected in a $17 million increase in revenues from sponsored research in 2004. A similar
increase of $15 million in sponsored research revenue was realized in 2003.

Operating expenses increased by $53 million in 2004, including $12 million in research related activity and $5 million
for increased depreciation expense. The balance of the increase was the result of inflation, costs related to new
capital facilities brought on line and increased health care benefits. The increase in operating expenses occurred
despite over $10 million in operating expense budget reductions that were necessitated by the lack of increased state
appropriations. In 2003, operating expenses increased by $35 million, mostly due to increases in research activities
and depreciation, despite a similar $6 million operating budget reduction.

The University continues to implement its Master Plan through several major capital initiatives that will provide
facilities for advancing research, improve the quality of student life, upgrade residence halls, improve infrastructure,
and enhance the ability to be self-sustaining with respect to energy production. Several of these projects are being
financed through the issuance of tax-exempt bonds. The operating revenues to sustain payments on this local debt
come from a variety of sources. Additional residents in the housing system, increased parking rates, increased food
sales with profit sharing income, savings on locally generated electric compared to commercial prices, new overhead
income from expanding research holdings, and dedicated student fees approved by the student body are examples of
new revenues being used to service this debt.

10
UNIVERSITY OF CINCINNATI JUNE 30, 2004

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS

The statement of revenues, expenses and changes in net assets presents the University’s results of operations. A
summarized comparison for the years ended June 30 follows (in thousands):

2004 2003 2002

Operating revenues:
Student tuition and fees , net $ 169,993 $ 154,807 $ 143,532
Grants and contracts 186,738 169,524 154,100
Auxiliary enterpris es , net 81,716 81,944 68,069
Other 52,540 46,719 52,885
490,987 452,994 418,586

Operating expenses:
Ins truction 243,226 234,615 226,739
Res earch 131,637 119,596 106,341
Auxiliary enterpris es 74,041 70,611 67,559
Depreciation 61,685 57,112 53,086
Other 280,717 255,728 249,030
791,306 737,662 702,755
Operating los s (300,319) (284,668) (284,169)

Nonoperating revenues (expenses):

State appropriations 181,139 181,179 187,566
Gifts 29,157 16,673 87,537
Inves tm ent incom e, net 52,816 55,825 46,519
Increas e (decreas e) in fair value of inves tm ents 152,363 (26,351) (108,881)
Interes t expens e, net (22,780) (16,995) (16,664)
Other (3,643) (15,886) (2,908)
389,052 194,445 193,169
Incom e (los s ) before other revenues , expens es ,
gains or los s es 88,733 (90,223) (91,000)

Capital appropriations 13,006 38,084 29,622

Capital grants and gifts 8,263 7,609 5,827
Additions to perm anent endowm ents 12,442 12,774 23,947
Increas e (decreas e) in net as s ets before
extraordinary item 122,444 (31,756) (31,604)
Trans fer of liability to the s tate 0 8,137 0

Increas e (decreas e) in net as s ets after

extraordinary item $ 122,444 $ (23,619) $ (31,604)

One of the University’s greatest strengths is the diverse stream of revenues that supplement its student tuition and
fees, including voluntary private support from individuals, foundations and corporations along with government and
other sponsored programs; state appropriations and investment income. The University has aggressively sought,
and will continue to seek, funding from all possible sources consistent with its mission to supplement student tuition,
and will prudently manage the financial resources realized from these efforts to fund its operating activities.

Tuition and state appropriations are the primary sources of funding for the University. During 2004, tuition rate
increases ranged from 8% to 11%, depending upon the category of student. These increases were in response to a
flat level of state appropriations. In addition, a slight rebound in enrollment was achieved by intense recruitment and
retention efforts. As a result, tuition and fee income increased in 2004 by $15 million, or 10%, over 2003. Similar

11
UNIVERSITY OF CINCINNATI JUNE 30, 2004

tuition increase were implemented in 2003, however, they were offset somewhat by minor reductions in enrollment
that resulted in increases in tuition and fee revenue of $11 million, or 8%, in 2003 compared to 2002.

The flat level of state appropriations for operations in 2004 and the decrease in appropriations in 2003 that
necessitated the increases in tuition rates has been a result of the continuing deterioration of economic conditions in
Ohio. Consequently, state appropriations now contribute a significantly lower percentage of the overall funding of
University operations. Nonetheless, such resources remain a vital source of funding for academic programs and
administrative costs. If future tuition increases are to be minimized, the level of state appropriation support will need
to be increased.

Revenues from grants and contracts with governmental and private entities provide for the recovery of direct and
indirect costs. Such revenues increased by $17 million, or 10%, in 2004 and by $15 million, or 10% in 2003 primarily
due to the conduct of research. The increases were generated by various colleges and research units across the
University, with the largest increase being in the College of Medicine reflecting continued gradual implementation of
the Millennium Research Institute.

Donor support has been an important component of financial resources during the past two fiscal years. In 2002, a
$60 million gift was used to increase the endowment of the College of Medicine and is not planned to be expended
for operating purposes in the future. Expendable gifts to the University totaled $37 million and $24 million in 2004
and 2003, respectively. It will be extremely difficult to sustain the current level of operations without an increasing
level of donor support. Accordingly, plans are being developed for increasing the number of substantial recurring
gifts that are available for operations.

Lower interest rates and reductions in distributions of endowment income under the University’s endowment
spending policy combined to reduce investment income in 2004 by $3 million, or 5%. In 2003, unexpended
proceeds of new borrowings and several significant one-time capital gains that were realized in the University’s cash
investment pool generated an increase of 20% in investment income over 2002.

State capital appropriations for the central campus have decreased $13 million a biennium from the formula-
allocation base biennium of 1995-1996 through 2003-2004. The 29% increase in capital appropriations in 2003 and
the 66% decrease in 2004 is a result of borrowing $21 million in advance of the 2003-2004 biennium capital
appropriation and recording the release of funds to pay back that debt in fiscal year 2003.

STATEMENT OF NET ASSETS

The statement of net assets presents the financial position of the University at the end of the fiscal year. Net assets
represent the difference between total assets and total liabilities. Net assets are one indicator of the overall financial
condition of the University, while the change in net assets is an indicator of whether the overall financial condition has
improved or worsened during the year. Assets and liabilities are generally measured using current values. One
notable exception is capital assets, which are stated at historical cost less an allowance for depreciation. A
summarized comparison of the University’s assets, liabilities and net assets at June 30 follows (in thousands):

2004 2003 2002

Current as s ets $ 254,908 $ 201,044 $ 265,405
Noncurrent as s ets :
Endowm ent, life incom e and other inves tm ents 1,328,224 1,140,963 1,154,374
Capital as s ets , net 1,216,525 1,080,404 931,177
Other 63,579 67,089 66,976
Total as s ets 2,863,236 2,489,500 2,417,932

Current liabilities 214,849 186,465 197,824

Noncurrent liabilities 888,648 665,740 559,194

Net as s ets $ 1,759,739 $ 1,637,295 $ 1,660,914

12
UNIVERSITY OF CINCINNATI JUNE 30, 2004

Current Assets

Current assets consist primarily of cash, short-term investments and receivables. Normally, cash balances are low at
the end of the fiscal year relative to other assets. However, at June 30, 2002, current assets included unexpended
debt proceeds that were disbursed during fiscal year 2003. During 2004, additional debt was issued and resulted in
an increased level of cash and short term investments at June 30, 2004. These resources will be expended during
2005 on a variety of capital projects.

Also in 2004, it was determined that $5.3 million of receivables from students admitted under open access programs
were not collectible. In addition, changes in the University’s athletic conference affiliation will result in the loss of $1.4
million of receivables for prior years’ post season tournament appearances. Accordingly, reserves have been
provided for these amounts.

Endowment, Life Income and Other Investments

The University invests its endowment to maximize total return over the long term with an appropriate level of risk.
The success of this long-term investment strategy is evidenced by strong returns sustained over long periods of time
and the University’s ability, in the face of current challenging markets, to limit losses. Changes in the fair value of the
endowment portfolio will not have a meaningful immediate impact on the portion of investment income available to
support current-year operating expenses since the University makes such distributions pursuant to its spending rate
policy.

The net assets of the University’s endowment increased by $115 million in 2004. This increase resulted from
investment gains of $152 million, the establishment of new endowments of $12 million and distributions of $50 million
to beneficiary units within the University. In 2003, investment gains, new funds and distributions were $11 million, $13
million and $45 million respectively. Under its endowment spending policy, the University uses its endowment to
support current operations in a way that generates a predictable stream of support, while at the same time
maintaining the purchasing power of endowment funds adjusted for inflation. The spending policy provides for annual
distributions of five percent of the three-year quarterly moving-average market value of assets in the investment pool.
Due to the changes in valuation of these assets over the last three years, actual distributions to beneficiary units were
5.4 % and 5.2% of the beginning market value of these assets in 2004 and 2003, respectively.

Non current investments increased by $21 million in 2004 reflecting new debt proceeds that will be expended for
capital projects during fiscal year 2005. A similar increase of $4 million occurred in 2003 relative to 2002.

Capital Assets

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 University funds, state capital
appropriations, gifts and federal grants. The University continues to implement its long-range Master Plan that was
designed to modernize older teaching and research facilities balanced with new construction. Capital additions
totaled $200 million in 2004, $222 million during 2003 and $131 million during 2002, before depreciation expense of
$62 million in 2004, $57 million in 2003 and $53 million in 2002, respectively. Total capital additions are comprised
primarily of capital projects that were in either the construction or the design phase at June 30.

Major projects in the construction phase at June 30, 2004, will be completed in stages from 2004 through 2007
and include the following:

• Calhoun Street Garage will provide approximately 1,000 new parking spaces and will serve as the foundation for
a multi-story building to accommodate privately financed student apartments and retail functions.

• Gettler Stadium is an expansion of the soccer field and running track.

• MainStreet includes completion of a recreation center and the creation of green space as the final phases of a
multi-stage project.

• Millennium Research Institute includes the creation of state-of-the-art instructional and research space for the
College of Medicine, as well as open space for the academic medical campus.

13
UNIVERSITY OF CINCINNATI JUNE 30, 2004

• Van Wormer Rehabilitation will accommodate new users of the Van Wormer administration building, restore
historically significant features and upgrade surrounding landscaping.

• Varsity Village will provide indoor practice facilities and increased space for revenue producing and Olympic
sports, as well as student intramurals, an auditorium, and facilities for athletic administrators and coaching staff.

Major projects in the design phase, described below, have undefined completion dates.

• Clermont Expansion will provide additional academic space to accommodate future growth.

• Jefferson Quadrangle is a campus beautification project and is integrated with the Varsity Village project

• Raymond Walters Veterinary Technology Building is a new 10,000 square foot facility

• Teachers College/Dyer Rehabilitation will continue the major rehabilitation of those buildings begun in 1997.

• Temporary Pavilion and Site Restoration includes removal of all temporary structures used during the
construction of the MainStreet project.

• UC Boathouse includes construction of a boathouse for the women’s varsity rowing team and men’s rowing club.

Debt

Total debt, representing bonds, notes and certificates of participation, increased by $305 million in 2004 as a result of
issuing new debt and by decreasing outstanding debt by $58 million. New debt was issued to fund various capital
projects and to refund $18 million of existing debt. As a result of refunding the existing debt, the University will realize
a net economic gain of $1.4 million over 14 years. Debt also increased by $81 million in 2003 due to the issuance of
new debt and by decreasing outstanding debt by $39 million. That new debt was also used to fund capital projects
and to refund $28 million of existing debt. As a result of that refunding, the University will realize a net economic gain
of $2 million over 12 years.

The new debt issued in 2004 included variable rate bonds totaling $144 million. This is the first variable rate debt that
the University has ever issued. Currently, interest rates on $40 million of the variable rate debt are reset every thirty
five days and interest rates on the remaining $104 million are reset every seven days.

Ratings of University bonds by Standard & Poors (S&P) were decreased from AA to AA- in 2003 but were maintained
in 2004. The note rating of SP-1+ was maintained through 2003 and 2004. In 2004 S&P revised the outlook for the
University from stable to negative. Moody’s ratings of Aa3 for Bonds and MIG 1 for notes were maintained during
2003. The bond rating was decreased to A1 during 2004 and the note rating was maintained. Moody’s outlook for the
University remained negative in 2003 but was revised from negative to stable in 2004.

These declines in debt ratings were predicted and modeled by management. Our repositioning of student activity
facilities, expansion of research facilities without State capital appropriations, cogeneration facilities, and restructured
parking system all result in a higher debt ratio. Both new revenue streams and costs savings have been secured
against this new debt. State budgets across the country are fragile with a great deal of temporary revenue in them,
and this makes their own debt and that of State-created entities subject to negative comment. Most auxiliary facilities
date from the last major student expansion 30 years ago and must be improved or replaced.

The responsibility to finance research facility expansion has fallen to institutions, as both state and federal
governments have stopped doing so. Yet those same levels of government encourage and fund the operating costs
of new research, assuming local construction of the research facilities. While a negative trend in ratings may become
more common, it does not have a serious effect on our access to capital markets or our cost of capital. We and
others in the upper tier of higher education can still finance these critical capital investments.

14
UNIVERSITY OF CINCINNATI JUNE 30, 2004

Net Assets

Net assets represent the residual interest in the University’s assets after liabilities are deducted. The University’s net
assets at June 30 are summarized below (in thousands):

2004 2003 2002

Inves ted in capital as s ets , net of related debt $ 546,659 $ 584,706 $ 556,648
Res tricted:
Nonexpendable 932,258 796,155 804,968
Expendable 356,745 331,469 354,016
Unres tricted:
Des ignated (73,256) (75,090) (54,459)
Undes ignated (2,667) 55 (259)

Total net as s ets $ 1,759,739 $ 1,637,295 $ 1,660,914

Capital assets, net of related debt, represent the University’s depreciated buildings, equipment and infrastructure less
the outstanding principal balances of debt attributable to the acquisition, construction and improvement of those
assets. The decrease of $43 million in 2004 and the increase of $28 million in 2003 respectively, reflect the
University’s continued development and renewal of its capital assets in accordance with the Master Plan, net of
depreciation expense.

Restricted nonexpendable net assets include, as a primary component, the University’s permanently invested
endowment funds. It also includes the University’s equity interest in The Health Alliance of Greater Cincinnati. The
$9 million decrease in restricted nonexpendable net assets in 2003 and the $136 million increase in 2004 reflect the
changes in the fair value of investments, net of gifts.

Restricted expendable net assets are subject to externally imposed provisions governing their use. This category of
net assets includes restricted gifts of $273 million in 2004 and $241 million in 2003 that were temporarily invested in
the endowment.

Although unrestricted net assets are not subject to externally imposed stipulations, substantially all of the University’s
unrestricted net assets have been designated for various academic and research programs and initiatives, as well as
capital projects. In addition, unrestricted net assets include $5 million invested in the endowment at the direction of
the Board of Trustees.

The net overdrawn position of the unrestricted designated net assets is comprised of numerous positive balances in
these Board of Trustees-designated departmental operating funds that are offset by funds in a negative position. A
multi-year funding program using a combination of departmental and central budget sources established for that
purpose will resolve these fund deficits over time.

The funds in deficit includes three types of funds, which significantly contribute to the net deficit position. First, the
liability for compensated absences, which is the future cost of unused sick and vacation days for employees, has
been a required accrual for several years. This liability accrues gradually over many years. During 2004, $12 million
of funding provided in prior years was transferred for operating purposes and to restore undesignated operating
reserves. As a result, the negative fund balance of $30 million at June 30, 2003 increased to $44 million at June 30,
2004.

Second, overdrafts on special projects that are part of a multi-year funding program, and deficit debt-service accounts
that are part of a shorter, blended funding program in which near-term expiring auxiliary debt-service budgets are
being shifted to support new projects, total $40 million and $37 million in 2004 and 2003, respectively.

The third category consists of deficits caused by the growth in health benefit costs, which have risen at increasing
rates over the past four years. These rising costs, combined with severe decreases in state funding, result in the
amounts budgeted for health benefit costs being substantially below the actual costs incurred. Aggressive
management of health care costs and the use of a portion of the funds transferred from compensated absence
reserves, as described above, have helped to minimize the growth of these deficits. Significant increases in the

15
UNIVERSITY OF CINCINNATI JUNE 30, 2004

amounts budgeted for health benefit costs are planned to match these increasing costs on an annual basis and to
eliminate the accumulated deficit of $26 million within approximately five years.

STATEMENT OF CASH FLOWS

The Statement of Cash Flows provides additional information about the University’s financial results by reporting the
major sources and uses of cash. A comparative summary of the statement of cash flows for the years ended June 30
follows (in thousands):

2004 2003 2002

Cas h received from operations $ 500,528 $ 458,526 $ 433,175

Cas h expended for operations 729,117 683,926 632,640

Net cas h us ed in operating activities (228,589) (225,400) (199,465)

Net cas h provided by noncapital financing activities 222,391 200,608 281,422
Net cas h from (us ed for ) capital and related
financing activities 35,382 (90,423) (89,112)
Net cas h from (us ed for) inves ting activities (2,008) 123,132 12,017

Net increas e in cas h and cas h equivalents $ 27,176 $ 7,917 $ 4,862

The disparity between cash used in operating activities and cash provided by non capital financing activities results
from the required financial reporting classification of state appropriations. Although state appropriations are used
primarily for operating expenses of the University, GASB Statement 35 requires that they be reported as non
operating revenues. Had these resources been reported as operating revenue, the net cash used in operating
activities would have been deficits of $49 million 2004 and $45 million in 2003.

ECONOMIC FACTORS AFFECTING THE FUTURE

The impact of the weak U. S. economy on the economy of Ohio has resulted in reductions in state support to the
University. Even though the University is a state-supported institution, such appropriations account for only 21% of
the total revenues of the University. This has resulted in an increasing reliance on tuition and fees as a primary
funding source. There is a direct relationship between the level of state appropriations and the ability of the
University to manage tuition growth. Unless the mechanism for providing funding for statewide services can be
modified to recognize the priority of funding higher education, the scope of statewide academic activities will be
adversely impacted further.

In response, and to provide additional revenue, the University has implemented its “50 in 5“ initiative, which includes
a plan to increase the level of general funds revenue by 50% over the next five years, primarily via the recruitment of
5,000 new students on the Uptown campus. This initiative is part of an institutional strategic plan titled “UC 21” that
lays out ambitious goals and an action plan to define the role of an urban research university in the new century. The
plan defines a set of core values to guide the institution in its rapid transformation and enable it to compete for
students from a diverse cohort of learners, as it deals with an escalating need to bring intellectual capital to bear on
societal issues and to meet the rising call to serve as the economic engine in a knowledge-based environment.

The University has long maintained a position of national prominence among leading research institutions. While
federal support to the University for Sponsored Research has increased, various initiatives are underway to develop
state support for the expansion of research and the development of technology. In response to these opportunities,
the University has created its Millennium Research Institute. It will forge partnerships with commercial and other local
institutional researchers. Implementation of the plan will provide the University and its partners with the ability to
employ a large number of additional researchers and will significantly increase the University’s research potential.

The focus of capital projects is to upgrade and add educational and research facilities, improve the quality of student
life, provide additional residence halls, and upgrade infrastructure and utilities. These initiatives are an effort to
remain competitive, provide the best possible educational experience for the students and promote the quality of
student life. The University is now in its second decade of an ambitious Master Plan to achieve these goals. Over
the next three years, the University will complete construction of the MainStreet complex, Varsity Village and various

16
UNIVERSITY OF CINCINNATI JUNE 30, 2004

other projects currently under construction. The Millennium Research Institute projects will be completed over the
next decade and will enable the University to remain a leader in biotechnology medical research for the region.
In the next decade, many college-based academic projects are scheduled, but the traditional source of capital for
such projects—the State of Ohio Capital Bill—is declining in both value and absolute level with each new biennium.
This trend must be reversed if we are to sustain the needed academic investments that cannot come from new
business revenues like the auxiliary and research facilities.

Considering the increasing reliance on tuition revenue to fund operations, it is of vital importance to the future of the
University to increase the current levels of student enrollment and student retention. In order to enhance this effort,
and to provide essential services to students, the MainStreet initiative will be supplemented by an extensive
partnership among the University and various neighborhood residential and business groups. The resulting entities
will seek to upgrade and enhance residential and commercial facilities on the borders of the campus. The anticipated
improvements to the nearby neighborhoods should result in a more enjoyable and more convenient environment that
will supplement the on-campus educational experience and serve as a magnet for prospective students. The
University has supported these efforts by making approximately $ 46 million in loans from its endowment to these
neighborhood partnerships.

Private gifts will continue to be a critically important financial resource and a significant factor in the growth of both
academic and research activities. The University’s fund-raising strategy, as well as economic factors affecting
donors’ ability to contribute, will have a significant impact on the ability to tap this important financial resource. In this
regard, fundraising budgets have been increased through fiscal year 2005 in order to support an aggressive program
that includes a national fundraising network focused on increasing the level of private gifts to the University.

The University will continue to employ its long-term investment strategy to maximize total return at a reasonable level
of risk. The ability to sustain a level of investment return which is compatible with the endowment spending policy will
be strained given the anticipated performance of national and international financial markets. As a result, such
investment strategies will be continually reviewed in order to insure the most efficient use of these important financial
resources. In this regard, an expansion of professional investment management staff will be implemented during the
coming year.

This effort will be extended to all phases of cash management. Therefore, cash collection and investment policies
and procedures will be evaluated and reengineered as necessary. Internal administrative reorganizations have been
implemented to achieve this goal.

A significant component of both graduate and undergraduate enrollment consists of international students.
International visitors also hold numerous teaching and research positions. The ability of these individuals to achieve
or maintain international visitor status in the face of increased scrutiny by the Immigration and Naturalization Service
will be a key factor in maintaining this cross section of the academic community.

The University is embarking on the large task of replacing core information systems, including financial and human
resources. This replacement is necessary not only to improve dated technology but also to increase effective
interaction between central systems and to increase productivity.

Under the guidance of the first new president in almost 20 years, the University will soon begin a new capital
campaign.

The University exists in an increasingly competitive higher education environment. Colleges and universities
throughout the region and across the country are investing heavily in marketing and public relations programs to
establish or maintain favorable reputations and to build enrollment to optimum levels. With this in mind, the University
continues to develop strategies that will achieve a reputation commensurate with the University’s excellence and
increase enrollment where appropriate.

Looking forward, the University is well positioned to maintain its financial condition, its high standards of service to
students and its stature in the national research community. In order to enable the University to support this level of
excellence, the University is committed to obtaining new financial resources, to maintaining revenue diversification
and to successfully containing costs.

17
 University of Cincinnati
Statement of Net Assets
As of June 30, 2004 and 2003
(in thousands)

University Related
University Foundation
2004 2003 2004 2003

ASSETS
Current assets:
Cash and cash equivalents $ 78,765 $ 51,589 $ 8,590 $ 10,567
Investments 104,006 72,937
Accounts and pledges receivable, net 45,878 47,896 26,608 12,962
Inventories 4,938 4,772
Deposits with bond trustees 12,039 13,725
Notes receivable, net 3,201 3,292
Other assets 6,081 6,833 582 134
Total current assets 254,908 201,044 35,780 23,663

Noncurrent assets:
Investments 114,012 93,735
Pledges receivable, net 15,774 16,197 16,205 19,079
Deposits with bond trustees 18,626 22,821
Endowment investments 985,922 869,914 25,762 21,018
Notes receivable, net 29,179 28,072
Other long-term investments 228,290 177,313
Capital assets, net 1,216,525 1,080,404 843 1,042
Total noncurrent assets 2,608,328 2,288,456 42,810 41,139
Total assets 2,863,236 2,489,500 78,590 64,802

LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 136,725 133,622 10,255 10,644
Deferred revenue 12,945 12,769
Long-term liabilities - current portion 65,179 40,074
Total current liabilities 214,849 186,465 10,255 10,644

Noncurrent liabilities:
Deposits 5,672 6,299 718
Accrued liabilites 28,433 27,499 248 232
Refundable advances for federal loans 25,126 24,328
Long-term liabilities 829,417 607,614
Total noncurrent liabilities 888,648 665,740 966 232
Total liabilities 1,103,497 852,205 11,221 10,876

NET ASSETS
Invested in capital assets, net of related debt 546,659 584,706 843 1,042
Restricted for:
Nonexpendable 932,258 796,155 26,338 24,169
Expendable 356,745 331,469 36,344 25,458
Unrestricted (75,923) (75,035) 3,844 3,257
Total net assets $ 1,759,739 $ 1,637,295 $ 67,369 $ 53,926

See accompanying notes to financial statements. 18

 University of Cincinnati
Statement of Revenues, Expenses and Changes in Net Assets
For the Years Ended June 30, 2004 and 2003
(in thousands)

University Related
University Foundation
REVENUES 2004 2003 2004 2003
Operating revenues:
Student tuition and fees, net $ 169,993 $ 154,807 $ $
Federal grants and contracts 164,026 147,770
State and local grants and contracts 12,925 11,524
Nongovernmental grants and contracts 9,787 10,230
Sales and services of educational departments 48,196 43,368
Auxiliary enterprises:
Residential life 25,033 21,162
Athletics, net 7,221 13,228
Other Auxiliary enterprises 49,462 47,554
Other operating revenues 4,344 3,351 96 90
Total operating revenues 490,987 452,994 96 90

EXPENSES
Operating expenses:
Instruction 243,226 234,615
Research 131,637 119,596
Public Service 46,068 45,520
Academic Support 57,919 57,623
Student Services 35,264 31,904
Institutional Support 61,896 58,804 7,354 5,773
Operation Maintenance and Plant 64,310 50,596
Scholarships and Fellowships 15,260 11,281
Auxiliary Expenses 74,041 70,611
Depreciation 61,685 57,112 282 277
Total operating expenses 791,306 737,662 7,636 6,050
Operating loss (300,319) (284,668) (7,540) (5,960)

NONOPERATING REVENUES (EXPENSES)

State appropriations 181,139 181,179
Gifts 29,157 16,673 12,559 5,653
Investment income 52,816 55,825 2,620
Increase (decrease) in fair value of investments 152,363 (26,351) 4,594 2,529
Interest on capital asset-related debt (22,780) (16,995)
Loss on disposal of assets (5,985) (14,435)
Other nonoperating revenues (expenses) 2,342 (1,451) 1,210 673
Net nonoperating revenue 389,052 194,445 20,983 8,855
Income (loss) before other revenues,
expenses, gains or losses 88,733 (90,223) 13,443 2,895
Capital appropriations 13,006 38,084
Capital grants and gifts 8,263 7,609
Additions to permanent endowments 12,442 12,774
Increase (decrease) in net assets
before extraordinary item 122,444 (31,756) 13,443 2,895
Extraordinary item - Transfer of liability to the state - 8,137
Increase (decrease) in net assets
after extraordinary item 122,444 (23,619) 13,443 2,895

NET ASSETS
Net assets - beginning of year 1,637,295 1,660,914 53,926 51,031
Net assets - end of year $ 1,759,739 $ 1,637,295 $ 67,369 $ 53,926

See accompanying notes to financial statements. 19

 University of Cincinnati
Statements of Cash Flows
Years Ended June 30, 2004 and 2003
(in thousands)

2004 2003
CASH FLOWS FROM OPERATING ACTIVITIES
Tuition & fees $ 182,539 $ 155,857
Grants & contracts 169,791 170,958
Sales and services 133,518 122,963
Expenditures and other deductions:
Compensation (497,793) (468,821)
Other (222,893) (206,950)
Loans issued (8,431) (8,155)
Loan principal collected 7,461 6,892
Other revenue 7,219 1,856
Cash used for operating activities (228,589) (225,400)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES

State appropriations 181,321 180,652
Gifts for other than capital purposes 40,978 19,863
Interest on loans receivable 92 93
Cash from noncapital financing activities 222,391 200,608

CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES

State appropriations 12,336 38,084
Private gifts for capital purposes 9,291 2,108
Other 1,007 (882)
Proceeds from capital debt 306,531 144,261
Purchases of capital assets (223,147) (221,416)
Principal paid on capital debt (56,796) (41,181)
Interest paid on capital debt (13,840) (11,397)
Cash from (used for) capital financing activities 35,382 (90,423)

CASH FLOWS FROM INVESTING ACTIVITIES

Endowment income 69,238 39,799
Income from deposits with trustees 7,928 23,316
Transfer UC Foundation investments to UC Pool 0 99,534
Other endowment expenditures (45) (51)
Realized gains(losses) on investments 62,959 (33,360)
Purchase of investments (1,115,565) (984,475)
Sale of investments 970,261 970,052
Investment income 3,216 8,317
Cash from (used for) investing activities (2,008) 123,132

NET INCREASE IN CASH AND CASH EQUIVALENTS 27,176 7,917

Cash and cash equivalents - beginning of the year 51,589 43,672
Cash and cash equivalents - end of the year $ 78,765 $ 51,589

See accompanying notes to financial statements. 20

 University of Cincinnati
Statements of Cash Flows - continued
Years Ended June 30, 2004 and 2003
(in thousands)

2004 2003
RECONCILIATION OF NET OPERATING LOSS TO
NET CASH USED FOR OPERATING ACTIVITIES:

Operating loss $ (300,319) $ (284,668)

Adjustments to reconcile operating loss to net cash
used for operating activities:
Depreciation expense 61,685 57,112
Changes in assets and liabilities:
Receivables, net 2,136 (6,761)
Inventories (166) (456)
Other assets 78 1,711
Accounts payable and accrued liabilities 3,470 4,035
Deferred revenue 210 1,816
Compensated absences 3,990 1,750
Deposits 327 61
Net cash used for operating activities $ (228,589) $ (225,400)

See accompanying notes to financial statements. 21

 INDEX TO THE NOTES TO THE FINANCIAL STATEMENTS

Page 23 Note 1 Organization and Summary of Significant Accounting Policies

A. Organization
B. Basis of Presentation
C. Summary of Significant Accounting Policies

Page 25 Note 2 Cash and Investments

Page 27 Note 3 Accounts, Pledges and Notes Receivable

Page 28 Note 4 Capital Assets

Page 28 Note 5 Accounts Payable and Accrued Liabilities

Page 28 Note 6 Compensated Absences

Page 29 Note 7 Bonds and Notes Payable

A. Debt Issuances and Permanent Fundings
General Receipt Bonds
Bond Anticipation Notes
Capital Lease Obligations
Loans Payable for Equipment
B. Defeanance
C. Collateralization and Debt Reserves
D. Debt Service Commitments
E. Defeased Debt
F. Other
G. Long Term Liability

Page 34 Note 8 Unfunded Workers’ Compensation Liability

Page 34 Note 9 State Support

Page 35 Note 10 Retirement Plans and Other Post Employment Benefits

A. Public Employee Retirement Plans
B. Ohio Alternative Retirement Plan

Page 36 Note 11 Restricted Net Assets

Page 36 Note 12 Unrestricted Net Assets

Page 37 Note 13 Equity Interest in Alliance

Page 37 Note 14 Capital Project Commitments

Page 38 Note 15 Self-Insurance Funds

Page 38 Note 16 Contingencies

Page 38 Note 17 University of Cincinnati Foundation

A. Cash & Cash Equivalents
B. Investment Risk Categorization
C. Investment Pools
D. Pledges Receivable

Page 40 Note 18 Unconsolidated Related Organization

Page 40 Note 19 New Accounting Standards

____________________________________________________________________________________
22
UNIVERSITY OF CINCINNATI JUNE 30, 2004

NOTES TO FINANCIAL STATEMENTS

For the Years Ended June 30, 2004 and 2003

1. Organization and Summary of Significant Accounting Policies

A) Organization

The University of Cincinnati (the University) was founded in 1819 with the first charter granted by the State of
Ohio in 1870. The University, formerly city owned, became a State University on July 1, 1977. As such, it is
a component unit of the State of Ohio. Under provisions of the Internal Revenue Code, Section 115, and the
applicable income tax regulations of the State of Ohio, the University, as a state institution, is exempt from
taxes on income other than unrelated business income. Since the University has no material net unrelated
business income during the year ended June 30, 2004, no provision for income taxes has been made.

The accompanying financial statements consist of the accounts of the University and the accounts of the
University of Cincinnati Foundation (the Foundation). The Foundation, which is a component unit of the
University in accordance with the provisions of the Governmental Accounting Standards Board (GASB)
Statement 14, The Financial Reporting Entity, is described more fully in Note 17. The Foundation is exempt
from Federal income taxes under the provisions of Internal Revenue Code Section 501(c)(3).

B) Basis of Presentation

The financial statements have been prepared in accordance with accounting principles generally accepted in
the United States of America, as prescribed by the GASB. The University has elected to apply only those
Financial Accounting Standards Board (FASB) pronouncements issued on or before November 30, 1989, that
do not conflict with or contradict GASB pronouncements.

The University’s financial resources are classified for accounting and reporting purposes into the following three
net asset categories:

Invested in Capital Assets Net of Related Debt—Capital assets, net of accumulated depreciation and
outstanding principal balances of debt attributable to the acquisition, construction or improvement of those
assets.

Restricted—Nonexpendable restricted net assets are subject to externally imposed stipulations that they be
maintained permanently by the University. Such assets include the University’s permanent endowment funds.
Expendable restricted net assets are subject to externally imposed stipulations that can be fulfilled by actions of
the University pursuant to those stipulations or that expire by the passage of time.

Unrestricted—Net assets that are not subject to externally imposed stipulations. Unrestricted net assets may
be designated for specific purposes by action of management or the Board of Trustees or may otherwise be
limited by contractual agreements with outside parties. Substantially all unrestricted net assets are designated
for academic and research programs and initiatives and for capital programs.

23
UNIVERSITY OF CINCINNATI JUNE 30, 2004

C) Summary of Significant Accounting Policies

The accompanying financial statements have been prepared on the accrual basis. The University reports as
a Business Type Activity as defined by GASB Statement No. 35. A Business Type Activity is financed in
whole or in part by fees charged to external parties for goods or services.

Investments in marketable securities are carried at fair value as established by the major securities
markets. Investment income is recorded on the accrual basis. Realized and unrealized gains and losses
are reported as nonoperating revenues (expenses).

The majority of alternative investments, such as limited partnerships, are carried at estimated fair value
provided by the management of the alternative investment funds as of March 31, 2004 and 2003, as
adjusted by cash receipts, cash disbursements and securities distributions through June 30, 2004 and 2003.
The University believes that the carrying amount of its alternative instruments is a reasonable estimate of fair
value as of June 30, 2004 and 2003. Because alternative investments are not readily marketable, the
estimated value is subject to uncertainty and, therefore, may differ from the value that would have been used
had a ready market for the investments existed. The amount of gain or loss associated with these
investments is reflected in the accompanying financial statements using the equity method of accounting.

The University considers all highly liquid investments purchased with an original maturity of three months or
fewer to be cash equivalents, with the exception of cash equivalents representing assets of the University’s
endowment, which are included in Endowment Investments.

Inventories are held primarily by the bookstore and general stores and are stated at the lower of cost or net
realizable market value. The retail basis for bookstores and the moving-average basis for all other
inventories are used to determine inventory cost.

Capital Assets—Land, land improvements, infrastructure, buildings and equipment are recorded at cost at
date of acquisition, or market value at date of donation. The University’s capitalization threshold is $100,000
for major capital projects and $5,000 for all other capitalized items. Interest on related borrowing, net of
interest earnings on invested proceeds, is capitalized during the period of construction. University and
Foundation property and equipment are depreciated using the straight-line method over the estimated useful
lives (from five to fifty years) of the respective assets. When plant assets are sold or disposed of, the
carrying value of such assets and the associated depreciation are removed from the University’s records.

The University does not capitalize works of art or historical treasures that are held for public exhibition,
education or research in furtherance of public service. These collections are neither disposed of for financial
gain nor encumbered in any way. In addition, the University requires the proceeds from the sale of collection
items be used to acquire other collection items. Accordingly, such collections are not recognized or
capitalized for financial statement purposes. All other works of art or historical treasures are capitalized at
historical or fair value at date of donation.

Gift Pledges—The University receives pledges and bequests of financial support from corporations,
foundations and individuals. Revenue is recognized when a pledge representing an unconditional promise
to pay is received and all eligibility requirements, including time requirements, have been met. In the
absence of such promise, revenue is recognized when the gift is received.

Unconditional promises to give that are expected to be collected in future years are recorded at the present
value of the estimated future cash flows. The discounts on these amounts are computed using a discount
rate commensurate with the risks involved. An allowance for uncollectible pledges receivable is provided
based on management’s judgment of potential uncollectible amounts. The determination includes such
factors as prior collection history, type of gift and nature of fundraising.

Deferred Revenue includes amounts received in advance of an event, such as student tuition and advance
ticket sales related to future fiscal years.

Endowment Spending Policy—For donor restricted endowments, the Uniform Management of Institutional
Funds Act permits the University to distribute an amount of realized and unrealized endowment appreciation
as the Board of Trustees determines to be prudent. The University’s policy is to accumulate the
undistributed realized and unrealized appreciation within the endowment, which is discussed in Note 2.

24
UNIVERSITY OF CINCINNATI JUNE 30, 2004

Student Tuition and Residence Fees are presented net of scholarship and fellowship allowances of
$71,550,000 in 2004 and $66,071,000 in 2003 and bad debt provisions of $5,754,000 in 2004. Payments
made directly to students are presented as scholarship and fellowship expenses.

Auxiliary Enterprise Revenues primarily represent revenues generated by bookstores, parking, the
conference center, athletics, housing and dining, net of bad debt provisions of $1,445,000 in 2004.

Operating Activities, as reported on the Statement of Revenues, Expenses, and Changes in Net Assets
are those that generally result from exchange transactions such as payments received for providing services
and payments made for services or goods received. Nearly all of the University’s expenses are from
exchange transactions. Certain significant revenue streams relied upon for operations are recorded as
nonoperating revenues, as defined by GASB Statement 35, including state appropriations, gifts and
investment income.

Management Estimates—The preparation of financial statements in conformity with accounting principles

generally accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported amounts of revenue and expenditures
during the reporting period. Actual results could differ from those estimates. The use of management’s
estimates relate most significantly to self-insurance reserves.

Reclassifications—Certain prior-year amounts have been reclassified to conform to current-year

presentations.

2. Cash and Investments

Summary—The University maintains centralized management for substantially all of its cash and
investments. With the exception of insurance reserves, charitable remainder trusts, and other trust funds the
terms of which require separate management, the University invests its reserves and relatively short-duration
assets in the Temporary Investment Pool, and invests substantially all of the assets of the University
endowment in the Endowment Investment Pool.

Distributions are made from the University endowment to the University entities that benefit from those
funds. The endowment spending policy provides for an annual distribution of five percent of the twelve-
quarter moving-average market value of endowment units.

Authorizations—The Temporary Investment Pool is invested principally in investment-grade money-market

and fixed-income securities. Balances in the Temporary Investment Pool are primarily for operating
expenses or for funding capital projects.

The University investment policies are governed and authorized by University rules. The approved asset
allocation policy for the endowment investments sets a general target of 85 percent equities and 15 percent
fixed-income securities within broader ranges set at the discretion of the Administrative Investment
Committee.

Diversification is a fundamental risk-management strategy for the endowment portfolio. Accordingly, the
portfolio includes investments in domestic and non-U.S. stocks, bonds and bond-like loans; real estate; and
limited partnerships consisting of venture capital, private equity and real estate.

Off-Balance-Sheet Risk—The University’s investment strategy incorporates certain financial instruments

which involve, to varying degrees, elements of market risk and credit risk in excess of amounts recorded in
the financial statements. Market risk is the potential for changes in the value of financial instruments due to
market changes, including interest and foreign exchange rate movements and fluctuations embodied in
forward, futures, and commodity or security prices. Market risk is directly impacted by the volatility and
liquidity of the markets in which the related underlying assets are traded. Credit risk is the possibility that a
loss may occur due to the failure of a counterparty to perform according to the terms of the contract. The
University’s risk of loss in the event of counterparty default is typically limited to the amounts recognized in
the Statement of Net Assets and is not represented by the contract or notional amounts of the instruments.

Cash and Cash Equivalents—At June 30, 2004, the carrying amount of the University’s cash and cash
equivalents for all funds is $78,765,000 as compared to bank balances of $88,968,000. The difference

25
UNIVERSITY OF CINCINNATI JUNE 30, 2004

between the carrying amount and the bank balances is caused primarily by deposits in transit and
outstanding checks.

Of the University’s bank balances, $244,000 is covered by depository insurance or by collateral held by
qualified third-party trustees in the name of the University and $4,239,000 is covered by collateral held by
third-party trustees pursuant to Section 135.181, Ohio Revised Code, in collateral pools securing all public
funds on deposit with specific depositories. Of the remaining $84,485,000, which is uninsured, $65,119,000
includes securities held by financial institutions but not in the University’s name and $19,366,000 is invested
in mutual funds.

Investments—The fair value of University investments at June 30 is (in thousands):

2004 2003
U. S. government securities $126,762 $104,062
Corporate notes and bonds 138,877 88,402
Corporate stocks 323,597 277,890
Mutual funds 323,069 279,360
Other securities 50,753 60,258
Real estate 15,934 25,554
Total investments 978,992 835,526
Less current investments 104,006 72,937
Noncurrent investments $874,986 $762,589

At June 30, 2004, other securities included $45,774,000 of loans made to certain nonprofit entities for the
purpose of developing residential and commercial facilities on the borders of the campus. Currently, these
loans are secured primarily by mortgages on parcels of land purchased by these nonprofit entities. These
loans bear interest at 6%. The University expects repayment once the residential and commercial facilities
have streams of rental income.

The University has recorded the investments in the table above in the following categories: $218,018,000 of
investments and $760,974,000 of endowment investments. Also, included in endowment investments as
reported on the Statement of Net Assets are $224,948,000 invested predominately in equities held in donor-
stipulated irrevocable trusts.

GASB Statement 3 requires government entities to categorize investments by the level of risk. Category 1
includes investments that are insured or registered or for which securities are held by the University or its
agent in the name of the University. Category 2 includes uninsured and unregistered investments for which
securities are held by the broker’s or dealer’s trust department or agent in the name of the University.
Category 3 includes uninsured and unregistered investments for which the securities are held by the broker
or dealer, or by its trust department or agent, but not in the University’s name. Of the above University
investments, $547,262,000 fall within credit risk Category 1 and $43,039,000 fall within credit risk Category
2. Mutual funds totaling $323,069,000, limited partnerships of $3,914,000, loans of $45,774,000, and real
estate of $15,934,000 are not covered by these credit risk categories.

University Investment Pools—Of the University investments, approximately $55,746,000 are separately
invested by donor stipulation. The remaining funds are invested in one of three pools. The Temporary
Investment Pool represents the investment of substantially all University cash not otherwise invested in the
endowment.

The Endowment Investment Pool A is the principal investment pool for the University endowments that may be
pooled legally or by donor concurrence. The University employs the share method of accounting for the
Endowment Investment Pool A investments and for proportionate distribution of income to each fund that
participates in the pool. At June 30, 2004, the Endowment Investment Pool A consisted of 7,129,000 shares.
Effective July 1, 2002, substantially all endowments held in trust, by donor stipulation, by the University of
Cincinnati Foundation were invested in the University's Endowment Investment Pool A. At June 30, 2004, such
endowments own 1,298,000 pool shares with a market value of $128,490,000, equating to approximately 18%
of the Endowment Investment Pool A. The Endowment Investment Pool B comprises real estate holdings
received by bequest.

26
UNIVERSITY OF CINCINNATI JUNE 30, 2004

The following tabulation summarizes the changes in relationships between cost and fair values of the
Endowment Investment Pool A assets for the year (in thousands):

Net Fair Value

Gains/ Gain/(Loss)
Net Cost Fair Value (Losses) Per Share

End of year $644,212 $705,424 $ 61,212 $ 98.95

Beginning of year 605,328 606,500 1,172 88.61

Unrealized net gain/(loss) for year 60,040

Realized net gain/(loss) for year 10,781

Total net gain/(loss) for year $ 70,821 $ 10.34

The University has adopted a spending rate policy which limits the distribution of endowment income earned in
the investment pool to five percent of the moving-average market value for the twelve-quarter period ending
each December. During 2004, income earned was approximately $20,993,000 less than the amount allocated
for spending. In accordance with the Ohio Uniform Management of Institutional Funds Act, the cumulative
shortfall of $92,217,000 as of June 30, 2004, is funded by capital appreciation of the investment pool.

Income allocated for spending during 2004 amounted to $4.80 per share of the Endowment Investment Pool A.
The average annual earnings per share, exclusive of capital appreciation, amounted to $2.21.

3. Accounts, Pledges and Notes Receivable

Accounts, pledges and notes receivable as of June 30, are as follows (in thousands):

2004 2003
Accounts receivable $36,057 $40,080
Pledges receivable 17,828 18,856
Notes receivable 32,381 31,364
Accrued interest receivable _ 7,766 __5,157
Total 94,032 95,457
Less current receivables 49,079 51,188
Noncurrent receivables $44,953 $44,269

Allowances for uncollectible receivables have been provided in the amount of approximately $7,946,000 and
$838,000 for accounts receivable, $185,000 and $62,000 for pledges receivable, and $4,407,000 and
$4,411,000 for notes receivable as of June 30, 2004 and 2003, respectively.

Pledges have been discounted at a rate of six percent to net present value, which approximates the fair
value of the receivables as follows (in thousands):

2005 $ 2,055
2006 1,297
2007 1,228
Thereafter 13,248
Total $17,828

27
UNIVERSITY OF CINCINNATI JUNE 30, 2004

4. Capital Assets
Capital assets activity for the years ended June 30, 2004 and 2003, is summarized as follows (in thousands):

Balance Retirements/ Balance

July 1, 2003 Additions Transfers June 30, 2004
Land $ 17,962 $ 2,014 $ - $ 19,976
Land improvement 21,806 780 5,341 27,927
Buildings 1,077,708 53,413 145,197 1,276,318
Construction in progress 256,317 119,488 (176,007) 199,798
Infrastructure 54,839 4,861 17,101 76,801
Building equipment 15,029 138 - 15,167
Moveable equipment 124,479 13,764 (8,666) 129,577
Books 117,674 9,333 (1,419) 125,588
Art objects ____4,579 _______- ____(171) ____4,408
1,690,393 203,791 (18,624) 1,875,560
Less accumulated depreciation 609,989 __61,685 (12,639) 659,035
Net assets $1,080,404 $142,106 $__(5,985) $1,216,525

Balance Retirements/ Balance

July 1, 2002 Additions Transfers June 30, 2003
Land $ 17,912 $ 50 $ - $ 17,962
Land improvement 21,591 215 - 21,806
Buildings 1,038,922 78,939 (40,153) 1,077,708
Construction in progress 141,788 115,682 (1,153) 256,317
Infrastructure 54,633 206 - 54,839
Building equipment 14,354 675 - 15,029
Moveable equipment 116,614 16,795 (8,930) 124,479
Books 109,789 9,050 (1,165) 117,674
Art objects 4,264 315 -___ 4,579
1,519,867 221,927 (51,401) 1,690,393
Less accumulated depreciation 588,690 57,112 (35,813) 609,989
Net assets $ 931,177 $164,815 $(15,588) $1,080,404

Construction-in-progress additions in the above table represent expenditures for new projects net of the
amount of capital assets placed in service.

5. Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities as of June 30, 2004 and 2003 are as follows (in thousands):

2004 2003
Compensated absences (current portion) $ 33,790 $ 30,734
Compensation 53,921 54,147
Accrued liabilities 14,011 10,986
Vendors payable 35,003 37,755
Total $136,725 $133,622

6. Compensated Absences

University employees earn vacation and sick leave on a monthly basis. Vacation benefits may be accrued
up to a maximum of three years’ credit, and earned but unused days are payable upon termination. Sick
leave may be accrued without limit; however, earned but unused days are payable only upon retirement from
the University, subject to 30- or 60-day limits depending upon the date of hire. The liability for the

28
UNIVERSITY OF CINCINNATI JUNE 30, 2004

costs of such benefits approximated $62,223,000 and $58,233,000 as of June 30, 2004 and 2003,
respectively.

7. Bonds and Notes Payable

Bonds and notes payable at June 30, comprise the following (in thousands):

Maturity
Issue Dates Interest Outstanding Debt
Bond Series – Fixed Rate Debt Date Through Rate 2004 2003
P 1993 2004 2.40-5.40% $ 0 $ 100
R-11,T,X,Y,AA,AF,AG,AH,AI 1998 2018 3.70-5.50% 39,190 42,010
R-12 1998 2005 5.19-5.73% 1,670 3,250
U,V 1995 2005 3.90-5.60% 640 11,420
W 1996 2004 5.65-5.85% 0 8,090
Z, AC 1997 2017 4.15-5.375% 11,845 12,485
AB 1997 2020 4.40-5.45% 21,335 21,385
AD 1997 2020 4.65-5.15% 14,870 15,000
AL,AM,AN 1998 2018 3.45-4.75% 5,575 5,895
AL-1,AO 1999 2019 4.20-5.75% 12,965 13,535
AQ,AT,AU,AV,AZ 2000 2020 4.60-5.75% 6,025 6,425
2001A 2001 2031 3.60-5.75% 184,625 186,690
2002A 2002 2022 2.25-4.875% 5,360 5,565
2002D 2002 2022 2.40-5.00% 4,570 4,855
2002F 2003 2024 2.50-5.375% 46,090 46,090
2002G 2003 2031 1.80-5.00% 17,565 19,485
2003C 2003 2026 3.00-5.00% 85,390 86,950
2004A 2004 2031 2.00-5.00% 64,620 0
2004D 2004 2026 2.00-5.00% 50,985 0

Total bonds payable – fixed rate debt 573,320 489,230

Weighted
Average
Bond Series – Variable Rate Debt Interest Rate
2004B – Weekly Mode 2004 2031 1.06% 103,755 0
2004B – Auction Mode 2004 2031 1.03% 40,000 ______0

Total bonds payable – variable rate

debt 143,755 ______0

Total bonds payable $ 717,075 $ 489,230

29
UNIVERSITY OF CINCINNATI JUNE 30, 2004

Maturity
Issue Dates Interest Outstanding Debt
Note Series Date Through Rate 2004 2003
General Receipts Bond
Anticipation Notes:
2003A March 2003 March 2004 1.75% $ 0 $ 22,010
2004C March 2004 March 2005 2.00% 42,122 0
Certificates of Participation—Center
for Information Technology 1993 2013 2.40-5.50% 840 930
Ohio Board of Regents
Notes Payable 1994 2006 0.00% $ 282 $ 422
Capital Lease Obligations
University Center 1996 2024 4.125-5.45% 73,120 74,775
Edwards Center 1998 2011 4.00-5.75% 15,525 17,060
Residence Halls 2000 2028 4.40-5.50% 42,490 43,400
Loans Payable-Equipment 2003 2011 2.86-3.58% 1,534 1,720
Other 2006 1.40-8.00% __ ___16 27
Total notes payable 175,929 160,344
Total bonds and notes payable 893,004 649,574
Plus (Less) discounts/premiums/loss on
refunding 1,592 (1,886)
Total bonds and notes payable, net $894,596 $647,688

A) Debt Issuances and Permanent Fundings

General Receipt Bonds-Fixed Rate Debt—During the year ended June 30, 2004, the University issued two
general receipt fixed rate bonds totaling $115,605,000 that bear interest at rates ranging from 2.00% to
5.00% and mature in years 2026 and 2031. The proceeds were used to refund Series U, V, and W bonds,
to pay associated bond issue costs and to fund the construction and capitalized interest for the following
projects: a portion of Care/MSB Rehabilitation/Eden Quad, Bellevue Gardens, a portion of Varsity Village
and a portion of Gettler Stadium.

The refunded Series U bonds had been issued to finance various utility projects; the refunded Series V
bonds had been issued to finance a portion of the Engineering Research Center and Library Square and will
be called June 2005; the refunded Series W bonds had been issued to finance the CBA Parking Garage
Expansion and will be called June 2006.

General Receipt Bonds-Variable Rate Debt—During the year ended June 30, 2004 the University issued
general receipt variable rate bonds, Series 2004B totaling $143,755,000. A total of $40,000,000 of the
Series 2004B bonds were issued in the auction reset mode, and matures in 2031. $103,755,000 of Series
2004B was issued in the weekly reset mode and also matures in 2031. The proceeds were used to pay
associated bond issue costs and to fund the construction and capitalized interest for a portion of the
Care/MSB Rehabilitation/Eden Quad and a portion of MainStreet.

The initial interest rate for the Series 2004B – auction rate reset mode was .85%. Auction rate bonds call for
the interest rate to be reset and paid every 35 days. Interest paid to date has been based on rates that have
fluctuated from a low of .85% to a high of 1.35%. The maximum interest rate on the auction rate bonds is
12%. Series 2004B auction rate bonds do not have a permanent put feature. The University does not have
an obligation to purchase any Series 2004B auction rate bonds that a holder wishes to sell on an auction
date, or to purchase any Series 2004B auction rate bonds that a holder has tendered for purchase on a
mandatory tender date in connection with a change in mode. Accordingly, the University has classified the
total outstanding principal balance on its auction rate bonds as a long-term liability.

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UNIVERSITY OF CINCINNATI JUNE 30, 2004

The initial interest rate for the Series 2004B – weekly reset mode bonds was .92%. The interest rate for the
weekly mode bonds resets every week, with interest due the first business day of each calendar month.
Interest paid to date has been based on weekly rates that have fluctuated from a low of .87% to a high of
1.1%. The maximum interest rate on the weekly reset mode bonds is 12%. The University has entered into
a standby bond purchase agreement with a liquidity provider for Series 2004B weekly reset mode bonds.
Series 2004B weekly rate bondholders may tender any of these bonds for repurchase every seven days.
Any bonds so tendered will be purchased either by the proceeds of the remarketing of such bonds or, if not
successfully remarketed, by the liquidity provider. Accordingly, the University has classified the total
outstanding principal balance on its weekly reset mode bonds as a long-term liability. As of June 30, 2004,
there has not been a failed remarketing for the weekly reset mode variable rate bonds.

The University has the option to convert the variable rate bonds from one rate mode to another, as well as
the option to redeem these bonds in whole or in part. The University’s variable rate bonds mature at various
dates, beginning in fiscal year 2007 through 2031. It is the University’s intent to repay its variable rate bonds
in accordance with the maturities set forth in the bond offering circulars.

Bond Anticipation Notes—During the year ended June 30, 2004, the University issued Series 2004C bond
anticipation notes, for a total of $42,122,000, which were used to refinance existing bond anticipation notes,
as well as to fund various new construction and renovation projects. These notes bear interest at a rate of
2.00%.

Capital Lease Obligations—During the year ended June 30, 2004, the University did not enter into any
capital lease obligations or issue any certificates of participation.

Loans Payable for Equipment—During the year ended June 30, 2004, the University borrowed $157,410,
at an interest rate of 2.91%, for the purchase of the Athletic Ticketing System. All of the outstanding notes
bear interest rates between 2.86% and 3.58%.

B) Defeasance

General Receipts Bonds—Series 2004A general receipt bonds were issued January 29, 2004 in the
amount of $64,620,000. A portion of the Series 2004A bonds, $7,720,000 was for the purpose of advance
refunding $7,280,000 of the outstanding Series U general receipts bonds, stated to mature on June 1, 2006
through June 1, 2017. Another $3,000,000 of the Series 2004A bonds was for the purpose of advance
refunding $2,890,000 of the outstanding Series V general receipts bonds, stated to mature on June 1, 2006
through June 1, 2015. Another $9,010,000 of the Series 2004A bonds was for the purpose of advance
refunding $8,090,000 of the outstanding Series W general receipts bonds, stated to mature on June 1, 2011
through June 1, 2016. The purpose of the refunding was to reduce future debt service payments. Net
proceeds of $19,922,000 were used to purchase United States government securities that were placed in
irrevocable trust with an escrow agent to provide for all future debt service payments on the advance
refunded Series U, V and W general receipts bonds. The economic gain (difference between the present
value of the old and new debt service payments) to the University will be $1,432,000. As a result of the
refunding, $1,808,000 has been recorded as Deferred Loss on Refunding and will be amortized from 2004
through 2017. The deferred loss on refunding reflects the difference between the refunding reacquisition
price for the respective portion of Series 2004A and the net carrying amount of the outstanding principal
balances of the refunded debt issues.

C) Collateralization and Debt Reserves

The general receipts bonds and general receipts bond anticipation notes are collateralized by a pledge of
general receipts of the University. The certificates of participation are collateralized by the capital assets
purchased under the respective financing agreements and by certain insurance covering repayment of the
proceeds. Loans Payable is collateralized by specified equipment.

At June 30, 2004, the required debt service reserve amounted to $14,851,000. As provided for in the Amended
and Restated Trust Agreement, this reserve is solely for the payment of debt service charges on the pre-
amended bonds, with the exception that excess amounts may be transferred pursuant to Section 4.03 of the
Amended and Restated Trust Agreement.

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UNIVERSITY OF CINCINNATI JUNE 30, 2004

D) Debt Service Commitments

For bonds and notes payable at June 30, 2004, scheduled annual debt service payments subsequent to
June 30, 2004, are as follows (in thousands):

Fiscal
Year Principal Interest Total
2005 $ 59,957 $ 30,438 $ 90,395
2006 20,721 28,815 49,536
2007 25,740 27,918 53,658
2008 31,310 26,849 58,159
2009 26,135 25,690 51,825
2010-2014 139,030 111,980 251,010
2015-2019 161,145 79,473 240,618
2020-2024 144,740 44,560 189,300
2025-2029 116,640 17,402 134,042
2030-2031 __34,901 ___1,614 __36,515

Total $760,319 $394,739 $1,155,058

The University has $143.8 million of variable rate bonds. $103.8 million of this variable rate debt bears interest that is
reset weekly based on the market with a maximum rate of 12% per year. $40 million of the variable rate debt bears
interest that is reset every 35 days based on an auction rate, subject to a maximum of 12% per year. The interest
rate used to determine future interest payments in the debt service repayment table above is the year-end rate of
1.08% for the variable weekly rate and 1.35% for the variable 35-day rate. The bonds were issued in February 2004
and, since the date of issuance; the variable weekly rate has ranged from .87% to 1.1% and the variable 35-day rate
has ranged from .85% to 1.35%.

Scheduled principal and interest payments on capital lease obligations subsequent to June 30, 2004, are (in
thousands):

Fiscal
Year Principal Interest Total
2005 $ 4,702 $ 6,784 $ 11,486
2006 5,064 6,575 11,639
2007 5,661 6,347 12,008
2008 5,864 6,076 11,940
2009 7,192 5,779 12,971
2010-2014 32,738 23,492 56,230
2015-2019 29,095 15,204 44,299
2020-2024 31,315 7,810 39,125
2025-2028 11,054 1,452 12,506
Total $132,685 $79,519 $212,204

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UNIVERSITY OF CINCINNATI JUNE 30, 2004

E) Defeased Debt

Debt defeased by the University for which amounts remain outstanding at June 30, 2004, are (in thousands):

Maturity Interest Amount

Bond Series Dates Rate(s) Outstanding
Residence Hall and Dining
Facility Bonds:
Series D and H 1970-2007 5.50% $ 3,110
Series F 1972-2009 5.00-6.00% 2,915
General Receipts Bonds:
Series R-3 1993-2009 2.80-6.25% 6,655
Series R-7 1994-2010 2.75-5.20% 10,550
Series U 2006-2017 5.00-5.60% 7,280
Series V 2006-2015 5.00-5.50% 2,890
Series W 2011-2016 5.65-5.85% __8,090
Total $41,490

Neither the outstanding indebtedness nor the related trust accounts are reflected in the accompanying
financial statements for the fully defeased bonds listed above. United States Treasury obligations in an
amount sufficient to pay principal and interest on the defeased obligations, when due, have been deposited
with a trustee in accordance with the defeasance of the debt.

F) Other

Interest expense incurred on indebtedness for the years ended June 30, 2004 and 2003, is $22,780,000 and
$16,995,000 respectively. In 2004, interest expense on construction-related debt of $14,055,000, net of
$2,641,000 interest earned on invested funds, was capitalized. In 2003, interest expense on construction-
related debt of $13,255,000, net of $4,290,000 interest earned on invested funds, was capitalized.

G) Long-Term Liability

Long-term liabilities as of June 30, 2004 and 2003, are as follows (in thousands):

Year Ended June 30, 2004

Balance Balance Current Noncurrent
July 1, 2003 Additions Reductions June 30,2004 Portion Portion

Bonds, notes and capital leases:

Bonds and notes payable $511,662 $301,482 $ 53,665 $759,479 $59,868 $699,611
Certificates of participation 930 90 840 90 750
Loans payable-equipment 1,720 157 343 1,534 396 1,138
Capital lease obligations 135,262 0 4,111 131,151 4,306 126,845
Less issue costs, premiums
and discounts (1,886) _ _3,478 0 1,592 ___519 1,073
Total bonds, notes and
capital leases 647,688 305,117 58,209 894,596 65,179 829,417
Other long-term liabilities:
Compensated absences 58,233 4,161 171 62,223 33,790 28,433
Refundable advances,
federal loans 24,328 894 96 25,126 0 25,126
Deposits held in trust for others 6,299 89,884 90,511 5,672 __ __0 5,672
Total other long-term liabilities 88,860 94,939 90,778 93,021 33,790 59,231
Total $736,548 $400,056 $ 148,987 $987,617 $98,969 $888,648

33
UNIVERSITY OF CINCINNATI JUNE 30, 2004

Year Ended June 30, 2003

Balance Balance Current Noncurrent
July 1, 2002 Additions Reductions June 30,2003 Portion Portion

Bonds, notes and capital leases:

Bonds and notes payable $434,386 $112,990 $ 35,714 $511,662 $ 35,407 $476,255
Certificates of participation 1,180 0 250 930 90 840
Loans payable-equipment 0 1,720 0 1,720 343 1,377
Capital lease obligations 138,317 0 3,055 135,262 4,111 131,151
Less issue costs, premiums
and discounts (6,702) _4,816 0 (1,886) _123 (2,009)
Total bonds, notes and
capital leases 567,181 119,526 39,019 647,688 40,074 607,614
Other long-term liabilities:
Compensated absences 56,483 2,906 1,156 58,233 30,734 27,499
Refundable advances,
federal loans 23,621 763 56 24,328 0 24,328
Workers’ compensation liability 8,137 0 8,137 0 0 0
Deposits held in trust for others 6,072 96,001 95,774 6,299 0 6,299
Total other long-term liabilities 94,313 99,670 105,123 88,860 30,734 58,126
Total $661,494 $219,196 $144,142 $736,548 $ 70,808 $665,740

8. Unfunded Workers’ Compensation Liability

Under the State of Ohio’s workers’ compensation program, public employer state agencies, including state
universities, pay workers’ compensation premiums into the State Insurance Fund on a pay-as-you-go basis.
The Bureau of Workers Compensation actuarially determines a rate for each governmental agency that will
generate premium collections equal to the losses anticipated to be paid in the coming year. In 2002, as part
of the State of Ohio’s implementation of GASB Statements 34 and 35, the State allocated the unfunded
workers’ compensation liabilities for public employer state agencies to the individual agencies. The State of
Ohio required state colleges and universities to incorporate these allocated liabilities in their financial
statements. Accordingly, the University’s Statement of Net Assets included an unfunded workers
compensation liability of approximately $8.1 million at June 30, 2002. In 2003, the Auditor of State and the
Office of Budget and Management agreed to reexamine this accounting treatment. Based on their review
and consultation with representatives of the state-assisted universities, the agencies determined that the
State of Ohio's General Revenue Fund would recognize the entire liability for future workers' compensation
claims for the state, including the universities. Accordingly, the University's 2003 financial statements reflect
a reallocation of unfunded workers' compensation liabilities to the State of Ohio of $8.1 million, which
eliminates this liability at June 30, 2003. This revised amount was reported on the university’s 2003
Statement of Revenues, Expenses and Changes in Net Assets as an extraordinary item.

9. State Support
The University is a state-assisted institution of higher education and receives from the State of Ohio a state
share of instruction that is student-enrollment based. This subsidy is determined annually by the Ohio Board
of Regents. The State also provides line-item appropriations that support, in part, the current operations of
various activities including clinical teaching expenditures.

In addition to the operating subsidies, the State of Ohio provides funding for and constructs major plant
facilities on the University’s campuses. The state passes a capital-appropriations bill biannually for both
major capital projects and basic renovation projects of which the University receives a share. Such facilities
are reported as capital assets on the Statement of Net Assets.

34
UNIVERSITY OF CINCINNATI JUNE 30, 2004

10. Retirement Plans and Other Post Employment Benefits

A) Public Employee Retirement Plans

Retirement benefits are available for substantially all employees under one of several contributory retirement
plans. Prior to July 1, 1977, when the University became a state institution, employees were covered by
either the City of Cincinnati Retirement System (CRS) or the Teachers’ Insurance and Annuity Association -
College Retirement Equities Fund (TIAA-CREF). Certified teachers appointed on or after July 1, 1977, are
covered by the State Teachers’ Retirement System (STRS). Non-certified employees appointed on or after
that date are covered by the Public Employees Retirement System (PERS). Both STRS and PERS are
statewide systems.

The PERS, STRS and CRS plans are cost-sharing, multiple-employer, defined-benefit, public-employee
retirement systems. Each provides retirement, disability and death benefits to plan members and
beneficiaries. These plans also provide health-care benefits to vested retirees. Benefits provided under the
plans are established by State statute or the Cincinnati Municipal Code.

All three plans issue separate, publicly available financial reports that include financial statements and
required supplementary information. These reports may be obtained by contacting each system as follows:
Public Employee Retirement System of Ohio, 277 East Town Street, Columbus, Ohio 43215, Telephone
(614) 466-2085; State Teachers Retirement System of Ohio, 275 East Broad Street, Columbus, Ohio 43215,
Telephone (614) 227-4090; and City of Cincinnati Retirement System, 801 Plum Street, Cincinnati, Ohio
45202, Telephone (513) 352-3227.

The Ohio Revised Code and the Cincinnati Municipal Code provide PERS, STRS and CRS statutory
authority, respectively, over employer and employee contributions. The required, actuarially determined
contribution rates for the University and for employees are 13.31% (5% relating to health-care benefits) and
8.5% of covered payroll, respectively, for PERS; 14% (1% relating to health-care benefits) and 10%,
respectively, for STRS; and 11% and 7%, respectively, for CRS for the year ended June 30, 2004. The
University’s contributions, representing 100% of employer contributions for the year ended June 30, 2004,
and for each of the two preceding years are as follows (in thousands):

Fiscal Year PERS STRS CRS

2002 $14,856 $12,643 $351
2003 15,686 13,981 330
2004 16,769 14,686 408

PERS and STRS provide postretirement and postemployment health-care benefits in addition to the
retirement benefits described above. PERS Other Post Employment Benefits (OPEB) is advance funded on
an actuarially determined basis. The assumptions and calculation below were based on the system’s latest
actuarial review performed as of December 31, 2002. An entry-age normal actuarial-cost method of
valuation is used in determining the present value. The difference between assumed and actual experience
(actuarial gains and losses) becomes part of unfunded actuarial accrued liability. All investments are carried
at market value. For valuation purposes, a smoothed market approach is used. Under this approach assets
are adjusted annually to reflect 25% of unrealized market appreciation or depreciation on investment assets.
The actuaries’ assumptions were as follows: investment return, 8%; annual wage increase (compounded
annually), 4%; and health care costs, 4%. At December 31, 2002, the actuarial value of the Retirement
System’s net assets available for OPEB was $10,000,000,000. The actuarially accrued liability and the
unfunded actuarial accrued liability, based on the actuarial cost method used, were $18,700,000,000 and
$8,700,000,000, respectively. There are 364,881 active contributing participants. Of the $16,769,000 of
University employer contributions to PERS for 2004, $6,299,000 was to fund OPEB.

STRS has discretionary authority, pursuant to the Ohio Revised Code, over how much, if any, of the health-
care costs will be absorbed by STRS. All benefit recipients are required to pay a portion of the health-care
cost in the form of a monthly premium. The balance in the Health Care Reserve Fund was $2,800,000,000
at June 30, 2003 (the latest information available). For the year ended June 30, 2003, the net health-care
costs paid by STRS were $352,301,000. There were 108,294 eligible benefit recipients.

35
UNIVERSITY OF CINCINNATI JUNE 30, 2004

In addition to the pension benefits described above, the University provides postretirement health-care and
dental benefits (under its labor agreement with the American Association of University Professors) to all
retirees who are participants of TIAA-CREF when they retire. During 2004, 2003, and 2002 the net cost of
these benefits recorded on a pay-as-you-go basis totaled approximately $2,906,000, $2,706,000, and
$2,402,000 respectively.

B) Ohio Alternative Retirement Plan

On June 23, 1998, pursuant to Ohio House Bill 586, the University created an Ohio Alternative Retirement
Plan (ARP), which is designed to aid the University in recruiting and retaining employees by offering a
portable retirement option. The ARP is a defined-contribution plan that provides full and immediate vesting
of all contributions made on behalf of the participants. Contributions are directed to one of eight investment
management companies, which allows the participant to manage the investment of all retirement funds.
New employees who qualify for the ARP have 90 days from the date of hire to elect the ARP option. Once
this window has passed, the employee does not have the option to elect into the ARP.

At June 30, 2004, there were 1,632 members of the plan. During 2004, 2003, and 2002 the employer
contributions were $9,194,000, $7,677,000, and $6,750,000 respectively. The employer contribution rates
were 12% for participants electing out of PERS during fiscal year 2004 and 2003, and the rate for
participants electing out of STRS was 8.62% for the first 11 months of fiscal year 2003. Effective June 1,
2003 and during fiscal year 2004 the employer contribution rate for participants electing out of STRS
increased to 10.5%. The employee contribution rates were 8.5% and 10% for participants electing out of
PERS and STRS, respectively.

11. 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):

2004 2003
Restricted nonexpendable:
Instruction $135,475 $114,897
Research 77,477 71,618
Academic support 53,094 46,584
College/programs 259,381 231,504
Scholarships 105,424 90,107
Equity interest in Alliance 223,355 168,890
Other 78,052 72,555
Total $932,258 $796,155

Restricted expendable:
Instruction $ 28,481 $ 26,178
Research 99,999 90,877
Academic support 29,779 27,569
College/programs 141,180 128,439
Scholarships 34,297 31,447
Student loans 8,933 8,664
Grants and contracts (1,392) 5,407
Capital projects 9,174 6,449
Other 6,295 6,439
Total $356,745 $331,469

12. 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. For example, unrestricted net assets may be
designated for specific purposes by action of management or the Board of Trustees or may otherwise be
limited by contractual agreements with outside parties.

36
UNIVERSITY OF CINCINNATI JUNE 30, 2004

13. 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 (collectively referred to as the Participating Entities) are managed by Alliance
management, and their operating results are combined and allocated to the Participating Entities based on
their calculated equity interests in the Alliance. The University's equity interest in the Alliance of 29.09% is
based on the Hospital’s pro rata portion of the Participating Entities' net assets. The University has
recognized its equity interest in the Alliance of $223,355,000 and $168,890,000 for the years ended
June 30, 2004 and 2003, respectively, in Other Long-term Investments and Restricted Nonexpendable Net
Assets. Separate financial information regarding the Alliance may be obtained by contacting the Alliance at
the Health Alliance of Greater Cincinnati, 3200 Burnet Avenue, Cincinnati, Ohio 45229.

Hospital revenues and expenditures are recorded by the Alliance. The University has reported its pro rata share
($54,465,000 and $698,000 for the years ended June 30, 2004 and 2003, respectively) of the Alliance’s net gain
as part of the change in the fair value of investments.

The University provides various shared services, consisting mainly of security and various administrative
services, to the Health Alliance for which the University is reimbursed on a cost basis. The total cost of these
services for the years ended June 30, 2004 and 2003, were approximately $3,671,000 and $3,142,000,
respectively.

Also pursuant to the Agreement, the Hospital transferred to the University, as trustee, $60 million of its
unrestricted reserves into a separate quasi-endowment for the account of the Alliance to support academic
programs of the University’s College of Medicine. This amount was not considered in the calculation of the
University’s equity interest in the Alliance. The current market value of this fund is $78,292,000 as of June 30,
2004.

14. Capital Project Commitments

At June 30, 2004, the University is committed to future capital expenditures as follows (in thousands):

Contractual commitments $205,033

Estimated completion costs of projects 177,009
Total $382,042

These projects are being funded through various resources, including the State of Ohio, as follows (in
thousands):

Approved state appropriations requested and released

as of June 30, 2004 $ 15,702
Approved state appropriations not yet requested 14,251
University funded prior to June 30, 2004 188,548
Funds to be provided subsequent to June 30, 2004, from
various available sources 163,541
Total $ 382,042

The $163,541,000 of funding to be provided subsequent to June 30, 2004 will come from state funds, debt, gifts
and University funds.

37
UNIVERSITY OF CINCINNATI JUNE 30, 2004

15. Self-Insurance Funds

As part of a group purchase arrangement of Ohio state universities through the Inter-University Council, the
University currently provides for medical professional and general liability insurance through a combination of
actuarially funded self-insurance and purchased commercial insurance in excess of the self-insurance amount.
The medical professional liability insurance program also includes several qualified not-for-profit departmental
(physician) practice corporations. Medical professional self-insurance limits were $2.5 million in the aggregate
for 2004. An additional $15 million in commercial excess professional liability insurance was provided above the
self-insured retention. General liability coverage was provided as part of a group purchase arrangement of Ohio
state universities through the Inter-University Council (IUC). This program provided for a $250,000 retention per
occurrence with the first $100,000 funded by UC, and the remaining $150,000 funded by pool funds held
through the IUC. Excess commercial coverage for general liability was provided with total limits of $60 million,
of which $55 million was shared with the other participating Ohio state four-year universities.

IUC self-insurance funding is based on calculations by independent actuaries and funds are deposited directly
into two irrevocable self-insurance trust funds, one for medical professional liability and one for general liability.
In the opinion of management, IUC trust assets totaling approximately $13,557,000 are adequate to cover IUC
estimated liabilities resulting from known claims and incidents and incurred-but-not-reported incidents as of June
30, 2004. The University has reported self-insurance trust assets of approximately $2.7 million in other assets
and liabilities, representing its interest in the IUC trust. IUC self-insurance pools are funded by an agreed
formula among the participating Ohio state four-year universities.

The University is also self-insured for a portion of medical and dental benefits provided to employees. The cost
of such self-insured benefits provided during 2004 and 2003, respectively, was approximately $17,101,000 and
$17,738,000, including $1,571,000 and $3,025,000 accrued for estimated claims incurred but not reported.

16. Contingencies
The University is currently a defendant in various legal actions including the privatization of University Hospital
and the construction of an on-campus conference center. Although the final outcome of such actions cannot
currently be determined, the University's administration is of the opinion that the eventual liability, if any, will not
have a material effect on the financial position or operations of the University.

17. University of Cincinnati Foundation

The University of Cincinnati Foundation is a legally separate, tax-exempt component unit of the University.
The principal function of the Foundation is to solicit, reserve, hold, invest and administer funds and to make
distributions to or for the benefit of the University. Since these resources held by the Foundation can be used
only by or for the benefit of the University, the Foundation is considered a component unit of the University and
is discretely presented in the University’s financial statements.

Accounts of the Foundation have been consolidated in the accompanying financial statements in accordance
with generally accepted accounting principles for state-assisted colleges and universities which differ somewhat
from generally accepted accounting principals for not-for-profit organizations. Pledges receivable for the benefit
of the University totaling $16,948,000 in 2004 and $16,990,000 in 2003, and funds held in trust by the
Foundation for the University of $150,037,000 in 2004 and $125,050,000 in 2003, have been recorded by the
University and have, therefore, been eliminated from the amounts reported for the Foundation as of June 30,
2004 and 2003. Of these amounts, $129,100,000 and $105,900,000 has been invested as of June 30, 2004
and 2003 respectively in the University endowment pool A.

A) Cash & Cash Equivalents

The carrying amount of the Foundation’s cash and cash equivalents is $8,590,000 as compared to bank
balances of $9,359,000. The difference between the carrying amounts and the bank balances is caused
primarily by deposits in transit and outstanding checks.

Of the Foundation’s bank balances, $397,000 is covered by depository insurance or by collateral held by a
qualified third-party trustee in the name of the Foundation. Of the uninsured balance of $8,962,000, $5,023,000
is collateralized by securities pledged by financial institutions in the Foundation’s name and mutual funds hold
$3,939,000 in cash equivalents.

38
UNIVERSITY OF CINCINNATI JUNE 30, 2004

B) Investment Risk Categorization

Statement No. 3 of the Governmental Accounting Standards Board requires government entities to categorize
investments by the level of risk. Category 1 includes investments that are insured or registered or for which
securities are held by the Foundation or its agent in the name of the Foundation. Category 2 includes uninsured
and unregistered investments for which securities are held by the broker’s or dealer’s trust department or agent
in the name of the Foundation. Category 3 includes uninsured and unregistered investments for which the
securities are held by the broker or dealer, or by its trust department or agent, but not in the Foundation’s name.

The fair value of investments at June 30 are (in thousands):

2004 2003
U. S. government securities $ 2,440 $ 2,254
Corporate notes and bonds 5,025 4,952
Corporate stocks 1,121 2,043
Mutual funds 15,764 10,410
Other securities 1,126 1,014
Real estate 286 345
Total investments $25,762 $21,018

Of the above Foundation assets at June 30, 2004, $9,712,000 falls within credit risk category 1. Mutual funds
and real estate are not covered by these credit risk categories.

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 $52,427,000 and $42,745,000 as of
June 30, 2004 and 2003, respectively. These pledges receivable have been discounted at a rate of six percent
to a net present value of $41,482,000 and $30,525,000 as of June 30, 2004 and 2003, respectively, which
represents fair market value. As of June 30, these pledges are due as follows (in thousands):

2004 2003
Less than one year $23,550 $11,141
One to five years 11,435 14,208
More than five years 6,497 5,176
Subtotal 41,482 30,525
Less allowance for
uncollectibles pledges 1,726 1,479
Total $39,756 $29,046

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.

39
UNIVERSITY OF CINCINNATI JUNE 30, 2004

18. Unconsolidated Related Organization

The University's Board of Trustees and the Board of County Commissioners of Hamilton County, Ohio,
constitute the membership of Drake Center, Inc. (the Center), a nonprofit corporation created to operate a
rehabilitation hospital and a skilled nursing facility. The Center is governed by a Board of Trustees, the majority
of whom are appointed by the University Board of Trustees. Also, certain University officers/employees serve on
the Center's Board and in Center officer/employee positions under contractual arrangements.

However, the Center is not financially accountable to the University. The Center's assets and liabilities totaling
approximately $130,899,000 and $35,434,000, respectively, as of June 30, 2003 (the latest information
available), and operating revenues, expenses and nonoperating gains totaling approximately $76,162,000,
$81,265,000 and $1,225,000, respectively, for the year ended June 30, 2003, are not included in the
University's accompanying financial statements.

19. New Accounting Standards

Governmental Accounting Standards Board Statement Number 40, Deposit and Investment Risk Disclosures
was issued in March 2003 and amends Statement 3. This statement addresses common deposit and
investment risks related to credit risk, concentration of credit risk, interest rate risk, and foreign currency risk.
This Statement requires certain disclosures of investments that have fair values that are highly sensitive to
changes in interest rates. Deposit and investment policies related to the risks identified in this Statement also
should be disclosed. This Statement is effective for financial statements for periods beginning after June 15,
2004.

Governmental Accounting Standards Board Statement Number 42, Accounting and Financial Reporting for
Impairment of Capital Assets and for Insurance Recoveries was issued in November 2003 and establishes
accounting and financial reporting standards for impairment of capital assets. This Statement also clarifies and
establishes accounting requirements for insurance recoveries. The provisions of this Statement are effective for
fiscal periods beginning after December 15, 2004.

Governmental Accounting Standards Board Statement Number 45, Accounting and Financial Reporting of
Employers for Postemployment Benefits Other than Pensions was issued in June, 2004 and requires systematic
measurement and recognition of other postemployment benefit expense and improved disclosure of accrued
liabilities associated with such expenses.

Although not yet required to implement the aforementioned statements for the fiscal year ended June 30, 2004,
the University does not think that there will be a material affect on its financial statements when implementation
does occur.

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2600 Clifton AveNUE
Cincinnati, Ohio 45221
513-556-6000

www.uc.edu