Honorable Mark R. Warner
Governor of Virginia
The Honorable Kevin G. Miller
Chairman, Joint Legislative Audit
and Review Commission
The Board of Visitors
University of Virginia
We have audited the accompanying statement of net assets; statement
of revenues, expenses and changes in net assets; and the statement
of cash flows of the University of Virginia, a component unit of
the Commonwealth of Virginia, as of and for the year ended June
30, 2002, which collectively comprise the University's basic financial
statements. These financial statements are the responsibility of
the University's management. Our responsibility is to express an
opinion on these basic financial statements 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. 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 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
audit provides a reasonable basis for our opinion.
In our opinion, the basic financial statements referred to above
present fairly, in all material respects, the financial position
of the University of Virginia as of June 30, 2002, and the respective
changes in financial position and cash flows for the year then ended,
in conformity with accounting principles generally accepted in the
United States of America.
As described in the notes to the financial statements, the University
has implemented a new financial reporting model as required by the
provisions of Governmental Accounting Standards Board Statement
No. 34, Basic Financial Statements-and Management's Discussion
and Analysis -for State and Local Governments, and Statement
No. 35, Basic Financial Statements-and Management's Discussion
and Analysis-for Public Colleges and Universities, as of June
accordance with Government Auditing Standards, we have also
issued our report dated October 22, 2002, on our consideration of
the University's internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations,
contracts, and grants. That report is an integral part of an audit
performed in accordance with Government Auditing Standards
and should be read in conjunction with this report in considering
the results of our audit.
The management's discussion and analysis presented above is not
a required part of the basic financial statements, but is supplementary
information required by the Governmental Accounting Standards Board.
We have applied certain limited procedures, which consisted principally
of inquiries of management regarding the methods of measurement
and presentation of the required supplemental information. However,
we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming an opinion on
the financial statements that collectively comprise the University's
basic financial statements referred to above. Other information
in this President's Report is presented for the purpose of
additional analysis and is not a required part of the basic financial
statements of the University. This other information has not been
subjected to the auditing procedures applied in the audit of the
financial statements and, accordingly, we express no opinion on
this other information.
AUDITOR OF PUBLIC ACCOUNTS