I have been asked this question so many times that it made me blog about it. Here is the question:
What happens to the reports when the user who is the owner of those reports is deleted from the Business Objects enterprise system?
When a user account is deleted from the enterprise system, the Favorites folder, personal categories, and inbox for that user are deleted as well. If the report is in public folder, then the native Administrator account will inherit that report. And if that report is scheduled, it will fail and you will need to reschedule it.