Messenger - Vol. 1, No. 3, Page 5 Spring 1992 University of Delaware Annual Report Independent Auditors' Report Peat Marwick Certified Public Accountants 1201 Market Street Suite 1400 Wilmington, DE 19801 We have audited the balance sheet of the University of Delaware as of June 30, 1991, and the related statements of changes in fund balances and current funds revenues, expenditures, transfers and changes in fund balances for the year 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 audit. We conducted our audit in accordance with generally accepted auditing standards. These 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 the 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 aforementioned financial statements present fairly, in all material respects, the financial position of the University of Delaware as of June 30, 1991, and the changes in its fund balances and its current funds revenues, expenditures, transfers and changes in fund balances for the year then ended in conformity with generally accepted accounting principles. As described in Note 5 to the financial statements, the University adopted the provisions of Statement of Financial Accounting Standards No. 93 "Recognition of Depreciation by Not-for-Profit-0rganizations," in 1991. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information included in the schedule of stocks and convertible securities is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the 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. September 27, 1991 Member Firm of Klynveld Peat Marwick Goerdeler