October 15, 1999
The Honorable James S. Gilmore, III
Governor of Virginia

The Honorable Richard J. Holland
Chairman, Joint Legislative Audit and Review Commission

The Board of Visitors
University of Virginia

INDEPENDENT AUDITOR's REPORT ON THE FINANCIAL STATEMENTS

We have audited the balance sheet of the University of Virginia as of June 30, 1999 and the related statements of changes in fund balances and current fund revenues, expenditures and other changes for the year then ended. The financial statements are the responsibility of the University's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards 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 financial statements referred to above present fairly, in all material respects, the financial position of the University of Virginia as of June 30, 1999, and the changes in fund balances and current fund revenues, expenditures and other changes for the year then ended, in conformity with generally accepted accounting principles.

In accordance with Government Auditing Standards, we have also issued our report dated October 15, 1999, 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 grants. 

Walter J. Kucharski
AUDITOR OF PUBLIC ACCOUNTS