Office of Internal Audit 834 Chestnut Street, Suite 450 Philadelphia, PA 19107 September 25, 2020 Federal Audit Clearinghouse To Whom it May Concern: Enclosed is the submission of the Thomas Jefferson University (“TJU” or the “University”) Uniform Guidance audit for the year ended June 30, 2019, which was due on March 30, 2020. We are submitting our report on September 25 2020, due to the impact of COVID-19 on the University, as allowed under the flexibilities within OMB memorandum M-20-26, which extended the submission of the Single Audit reporting package up to six months beyond the normal due date for entities with normal filing dates between March 30, 2020 through June 30, 2020. Very truly yours, Christina Magasko, CPA Associate Vice President for Internal Audit Thomas Jefferson University Thomas Jefferson University Reports on Federal Awards in Accordance with OMB Uniform Guidance June 30, 2019 Federal Identification Number 23-1352651 Thomas Jefferson University Reports on Federal Awards in Accordance with OMB Uniform Guidance Index June 30, 2019 Page(s) I. FINANCIAL STATEMENTS Report of Independent Auditors ................................................................................................................... i-ii Financial Statements and Notes to the Financial Statements .................................................................. 2–43 Schedule of Expenditures of Federal Awards .......................................................................................... 44–52 Notes to Schedule of Expenditures of Federal Awards ........................................................................... 53–54 II. REPORTS ON INTERNAL CONTROLS AND COMPLIANCE Report of Independent Auditors on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................................................................................. 55–56 Report of Independent Auditors on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control over Compliance in Accordance with the Uniform Guidance ............................................................................................................................. 57–58 III. FINDINGS AND QUESTIONED COSTS Schedule of Findings and Questioned Costs ........................................................................................... 59–63 Summary Schedule of Prior Audit Findings .................................................................................................. 64 Management’s Views and Corrective Action Plan ................................................................................... 65–66 IV. SUPPLEMENTAL INFORMATION Schedule of Expenditures of Commonwealth of Pennsylvania Awards ........................................................ 67 Schedule of Expenditures of State of New Jersey Awards ............................................................................ 68 Report of Independent Auditors To the Board of Trustees Thomas Jefferson University: We have audited the accompanying consolidated financial statements of Thomas Jefferson University and its subsidiaries (the “University”), which comprise the consolidated balance sheets as of June 30, 2019 and 2018, and the related consolidated statements of operations and changes in net assets, and of cash flows for the years then ended and the related notes to the financial statements. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on the consolidated financial statements based on our audits. We conducted our audits 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 consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the University's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the University's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Thomas Jefferson University and its subsidiaries as of June 30, 2019 and 2018, and the results of their operations, changes in their net assets and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1 to the consolidated financial statements, the University changed the manner in which it presents net assets and reports certain aspects of its financial statements as a not-for-profit entity. Our opinion is not modified with respect to this matter. PricewaterhouseCoopers LLP, Two Commerce Square, Suite 1800, 2001 Market Street, Philadelphia, PA 19013-7045 T: (267) 330 - 3000, F: (267) 330 - 3300, www.pwc.com/us Other Matters Other Information Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The accompanying schedule of expenditures of federal awards for the year ended June 30, 2019 is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and is not a required part of the consolidated financial statements. The information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated, in all material respects, in relation to the consolidated financial statements taken as a whole. Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The supplementary information included in the Schedule of Expenditures of Federal Awards Supplementary Schedules, of the accompanying Consolidated Financial Statements for the year ended June 30, 2019, on pages 65-66 are presented for purposes of additional analysis and are not a required part of the consolidated financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the consolidated financial statements and accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 28, 2019 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 grant agreements and other matters for the year ended June 30, 2019. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the University's internal
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