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A COMPONENT UNIT OF THE STATE OF FLORIDA
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accounts, and the individual members allocate contributions and account balances among various approved
investment choices. There were 527 University participants during the 2007-08 fiscal year. Required
contributions made to the PEORP totaled $1,667,757.
Financial statements and other supplementary information of the FRS are included in the State’s
Comprehensive Annual Financial Report, which is available from the Florida Department of Financial
Services. An annual report on the FRS, which includes its financial statements, required supplementary
information, actuarial report, and other relevant information, is available from the Florida Department of
Management Services, Division of Retirement.
State University System Optional Retirement Program
. Section 121.35, Florida Statutes, provides for
an Optional Retirement Program (Program) for eligible university instructors and administrators. The
Program is designed to aid State universities in recruiting employees by offering more portability to
employees not expected to remain in the FRS for six or more years.
The Program is a defined contribution plan, which provides full and immediate vesting of all contributions
submitted to the participating companies on behalf of the participant. Employees in eligible positions can
make an irrevocable election to participate in the Program, rather than the FRS, and purchase retirement
and death benefits through contracts provided by certain insurance carriers. The employing university
contributes on behalf of the participant 10.43 percent of the participant’s salary, less a small amount used
to cover administrative costs. The remaining contribution is invested in the company or companies
selected by the participant to create a fund for the purchase of annuities at retirement. The participant may
contribute, by payroll deduction, an amount not to exceed the percentage contributed by the university to
the participant’s annuity account.
There were 2,435 University participants during the 2007-08 fiscal year. Required employer contributions

made to the Program totaled $15,708,222 and employee contributions totaled $7,203,301.
15. CONSTRUCTION COMMITMENTS
The University’s major construction commitments at June 30, 2008, are as follows:
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Project Description Total Completed Balance
Commitment to Date Committed
Burnett Biomedical Science Center 73,275,421$ 49,590,192$ 23,685,229$
Physical Science Building 18,246,432 9,619,890 8,626,542
Medical School 6,624,012 3,331,924 3,292,088
Arts Complex II 3,490,324 1,704,253 1,786,071
Others 5,103,894 3,147,609 1,956,285
Total
106,740,083$ 67,393,868$ 39,346,215$

16. OPERATING LEASE COMMITMENTS
The University leased buildings under operating leases, which expire in 2016. These leased assets and the
related commitments are not reported on the University’s statement of net assets. Operating lease
payments are recorded as expenses when paid or incurred. Outstanding commitments resulting from these
lease agreements are contingent upon future appropriations. Future minimum lease commitments for
noncancelable operating leases are as follows:
Fiscal Year Ending June 30 Amount

2009 12,015,573$
2010 5,494,625
2011 2,527,445
2012 461,558
2013 472,928
2014-16 1,389,306
Total Minimum Payments Required
22,361,435$

17. RISK MANAGEMENT PROGRAMS
The University is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. Pursuant to Section 1001.72(3),
Florida Statutes, the University participates in State self-insurance programs providing insurance for
property and casualty, workers’ compensation, general liability, and fleet automotive liability. During the
2007-08 fiscal year, the State retained the first $2 million of losses for each occurrence with an annual
aggregate retention of $40 million for named wind and flood losses and no annual aggregate retention for
all other named perils. After the annual aggregate retention, losses in excess of $2 million per occurrence
were commercially insured up to $50 million for named wind and flood. For perils other than named wind
and flood, losses in excess of $2 million per occurrence were commercially insured up to $200 million; and
losses exceeding those amounts were retained by the State. No excess insurance coverage is provided for
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workers’ compensation, general and automotive liability, Federal Civil Rights and employment action
coverage. All losses in these categories are completely self-insured by the State through the State Risk
Management Trust Fund established pursuant to Chapter 284, Florida Statutes. Payments on tort claims
are limited to $100,000 per person and $200,000 per occurrence as set by Section 768.28, Florida Statutes.
Calculation of premiums considers the cash needs of the program and the amount of risk exposure for
each participant. Settlements have not exceeded insurance coverage during the past three years.
Pursuant to Section 110.123, Florida Statutes, University employees may obtain health care services
through participation in the State group health insurance plan or through membership in a health
maintenance organization plan under contract with the State. The State’s risk financing activities associated
with State group health insurance, such as risk of loss related to medical and prescription drug claims, are
administered through the State Employees Group Health Insurance Trust Fund. It is the practice of the
State not to purchase commercial coverage for the risk of loss covered by this Fund. Additional
information on the State’s group health insurance plan, including the actuarial report, is available from the
Florida Department of Management Services, Division of State Group Insurance.
18. LITIGATION
The University is involved in several pending and threatened legal actions. The range of potential loss
from all such claims and actions, as estimated by the University’s legal counsel and management, should
not materially affect the University’s financial position.
19. FUNCTIONAL DISTRIBUTION OF OPERATING EXPENSES
The functional classification of an operating expense (instruction, research, etc.) is assigned to a
department based on the nature of the activity, which represents the material portion of the activity
attributable to the department. For example, activities of academic departments for which the primary
departmental function is instruction may include some activities other than direct instruction such as
research and public service. However, when the primary mission of the department consists of
instructional program elements, all expenses of the department are reported under the instruction
classification. The operating expenses on the statement of revenues, expenses, and changes in net assets
are presented by natural classifications. The following are those same expenses presented in functional
classifications as recommended by NACUBO:
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Functional Classification Amount
Instruction 197,527,457$
Research 110,329,320
Public Service 1,316,586
Academic Support 40,252,587
Student Services 27,583,191
Institutional Support 54,936,811
Operation and Maintenance of Plant 18,233,733
Scholarships and Fellowships 49,324,636
Depreciation 47,025,821
Auxiliary Enterprises 80,345,052
Loan Operations 375,968
Total Operating Expenses
627,251,162$

20. SEGMENT INFORMATION
A segment is defined as an identifiable activity (or grouping of activities) that has one or more bonds or
other debt instruments outstanding with a revenue stream pledged in support of that debt. In addition, the
activity’s related revenues, expenses, gains, losses, assets, and liabilities are required to be accounted for
separately. The following financial information for the University’s Bookstore, Housing, Parking, and
Health Center facilities represents identifiable activities for which one or more bonds are outstanding:
Bookstore Housing Facilit

y
Parking Facilit
y
Health Center
Revenue Bonds Revenue Bonds Revenue Bonds Revenue Bonds
Assets
Current Assets 951,081$ 7,752,557$ 3,714,212$ 1,257,850$
Capital Assets, Net 3,272,907 73,678,878 42,055,835 9,579,888
Other Noncurrent Assets 514,622 4,603,790 4,050,107 1,212,829
Total Assets 4,738,610 86,035,225 49,820,154 12,050,567
Liabilities
Current Liabilities 189,143 5,324,780 2,494,495 726,223
Noncurrent Liabilities 1,878,143 77,885,845 30,103,170 6,854,183
Total Liabilities
2,067,286 83,210,625 32,597,665 7,580,406
Net Assets
Invested in Capital Assets,
Net of Related Debt 1,254,100 (5,365,689) 10,541,765 2,878,701
Restricted - Expendable 472,781 3,559,823 3,562,277 1,114,427
Unrestricted 944,443 4,630,466 3,118,447 477,033
Total Net Assets
2,671,324$ 2,824,600$ 17,222,489$ 4,470,161$
Condensed Statement of Net Assets

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Bookstore Housin
g
Facilit
y
Parkin
g
Facilit
y
Health Center
Revenue Bonds Revenue Bonds Revenue Bonds Revenue Bonds
Operating Revenues 2,276,564$ 20,361,472$ 13,672,685$ 12,400,058$
Depreciation Expenses (155,355) (3,542,963) (1,593,628) (439,416)
Other Operating Expenses (361,196) (10,842,923) (7,112,998) (10,506,166)
Operating Income
1,760,013 5,975,586 4,966,059 1,454,476
Nonoperating Revenues (Expenses):
Nonoperating Revenue 43,043 1,329,104 956,198 140,514
Interest Expense (119,673) (4,047,569) (1,510,015) (319,240)
Nonoperating Expenses (132) (2,425,311) (2,360) (25,528)
Net Nonoperating Expenses
(76,762) (5,143,776) (556,177) (204,254)
Income Before Other Revenues,
Expenses, Gains, or Losses
1,683,251 831,810 4,409,882 1,250,222
Other Revenue, Expenses, Gains,
or Losses (1,528,800) 2,134,526 (341,671) (643,583)

Increase in Net Assets
154,451 2,966,336 4,068,211 606,639
Net Assets, Beginning of Year 2,516,873 (141,736) 13,154,278 3,863,522
Net Assets, End of Year
2,671,324$ 2,824,600$ 17,222,489$ 4,470,161$
Condensed Statement of Revenues, Expenses,
and Changes in Net Assets

Bookstore Housing Facility Parking Facility Health Center
Revenue Bonds Revenue Bonds Revenue Bonds Revenue Bonds
Net Cash Provided (Used) by:
Operating Activities 1,865,668$ 9,873,898$ 6,692,952$ 1,945,714$
Noncapital Financing Activities (1,528,866) 246,865 (625,541) (656,846)
Capital and Related Financing Activities (269,399) (11,685,514) (4,402,451) (763,241)
Investing Activities (903,273) 1,109,919 (2,695,659) (1,337,019)
Net Decrease in Cash and
Cash Equivalents
(835,870) (454,832) (1,030,699) (811,392)
Cash and Cash Equivalents, Beginning of Year 984,216 1,918,026 1,919,331 1,043,054
Cash and Cash Equivalents, End of Year
148,346$ 1,463,194$ 888,632$ 231,662$
Condensed Statement of Cash Flows

21. COMPONENT UNITS
The University has five discretely presented component units as discussed in note 1. These component
units comprise 100 percent of the transactions and account balances of the aggregate discretely presented
component units’ columns of the financial statements. The following financial information is from the
most recently available audited financial statements for the component units:
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University of University of UCF UCF Golden Total
Central Florida Central Florida Athletics Convocation Knights
Foundation, Research Association, Corporation Corporation
Inc. Foundation, Inc.
Inc.
Condensed Statement of
Net Assets
Assets:
Current Assets 44,673,792$ 4,795,678$ 6,085,467$ 37,719,983$ 10,834,126$ 104,109,046$
Capital Assets, Net 75,086,607 14,769,722 201,479,075 58,031,967 349,367,371
Other Noncurrent Assets 135,513,392 432,312 10,189,874 1,925,846 148,061,424

Total Assets
255,273,791 5,227,990 20,855,189 249,388,932 70,791,939 601,537,841
Liabilities:
Current Liabilities 18,699,449 4,049,458 10,728,801 13,003,360 3,944,089 50,425,157
Noncurrent Liabilities 26,411,774 10,709,761 244,132,245 62,874,718 344,128,498

Total Liabilities
45,111,223 4,049,458 21,438,562 257,135,605 66,818,807 394,553,655
Net Assets:
Invested in Capital Assets, Net

of Related Debt 41,910,270 9,284,179 (3,607,527) (4,842,751) 42,744,171
Restricted 153,432,190 8,417,985 161,850,175
Unrestricted 14,820,108 1,178,532 (9,867,552) (4,139,146) 397,898 2,389,840
Total Net Assets
210,162,568$ 1,178,532$ (583,373)$ (7,746,673)$ 3,973,132$ 206,984,186$
Condensed Statement of
Revenues, Expenses, and
Changes in Net Assets
Operating Revenues 23,569,270$ 3,144,103$ 29,000,829$ 24,449,630$ 3,103,866$ 83,267,698$
Operating Expenses 49,983,292 2,998,661 31,275,027 20,588,563 3,778,783 108,624,326
Operating Income (Loss)
(26,414,022) 145,442 (2,274,198) 3,861,067 (674,917) (25,356,628)
Net Nonoperating Revenues (Expenses) 3,389,999 144,078 2,123,082 (9,448,675) 1,716,142 (2,075,374)
Other Revenues, Expenses, Gains and Losses 10,809,768 10,809,768
Increase (Decrease) in Net Assets
(12,214,255) 289,520 (151,116) (5,587,608) 1,041,225 (16,622,234)
Net Assets, Beginning of Year 222,376,823 889,012 (432,257) (2,159,065) 2,931,907 223,606,420
Net Assets, End of Year
210,162,568$ 1,178,532$ (583,373)$ (7,746,673)$ 3,973,132$ 206,984,186$


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AUDITOR GENERAL
STATE OF FLORIDA
G74 Claude Pepper Building
111 West Madison Street
Tallahassee, Florida 32399-1450

DAVID W. MARTIN, CP
A
AUDITOR GENERAL
PHONE: 850-488-5534
FAX: 850-488-6975
The President of the Senate, the Speaker of the
House of Representatives, and the
Legislative Auditing Committee
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS

We audited the financial statements of the University of Central Florida, a component unit of the State of Florida,
and its aggregate discretely presented component units as of and for the fiscal year ended June 30, 2008, which
collectively comprise the University’s basic financial statements, and have issued our report thereon included under
the heading INDEPENDENT AUDITOR’S REPORT ON FINANCIAL STATEMENTS. Our report on
the financial statements was modified to include a reference to other auditors. 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.
Other auditors audited the financial statements of the aggregate discretely presented component units as described
in our report on the University’s financial statements. This report does not include the results of the other auditors’
testing of internal control over financial reporting or compliance and other matters that are reported on separately
by those auditors.
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 opinions on the financial statements,
but not for the purposes 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
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University’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
University’s financial statements that is more than inconsequential will not be prevented or detected by the
University’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
University’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 over financial
reporting that we consider to be material weaknesses, as defined above.
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, rules, 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.
Pursuant to Section 11.45(4), Florida Statutes, this report is a public record and its distribution is not limited.
Auditing standards generally accepted in the United States of America require us to indicate that this report is
intended solely for the information and use of the Legislative Auditing Committee, members of the Florida Senate
and the Florida House of Representatives, Federal and other granting agencies, and applicable management and is

not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,


David W. Martin, CPA
February 26, 2009

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PRIOR AUDIT FOLLOW-UP
The University had taken corrective actions for findings included in our report No. 2008-129.

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