Title: Reporting Entity
Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Expenditures include a portion of costs associated with general university activities which are allocated to awards under negotiated formuals commonly referred to as facilities and adminstrative cost rates. Expenditures for certain non-student financial aid awards include indirect costs. The University generally applies its predetermined approved facilities and adminstrative rate when charging indirect costs to federal award rather than the 10% de minimis cost rate as decribed in Section 200.414 of the Uniform Guidance. Expenditures for federal student financial aid programs are recognized as incurred and include Federal Pell program grants to students, the federal share of students' FSEOG program grants, Federal Work-Study program earnings, loans to students under federally guaranteed programs and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. Expenditures for other federal awards of the University are determined using the cost accounting principles and procedures set forth in the Uniform Guidance. Under these cost principles, certain expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: TJU uses the predetermined indirect cost rate in the rate agreement.
Thomas Jefferson University (“Jefferson” or the “University’) is an independent, non-profit corporation organized under the laws of the Commonwealth of Pennsylvania and recognized as a tax-exempt organization pursuant to Section 501(c)(3) of the Internal Revenue Code. The University has a tripartite mission of education, research, and patient care.
The University conducts research and offers undergraduate and graduate instruction through the Sidney Kimmel Medical College, the Jefferson College of Nursing, the Jefferson College of Pharmacy, the Jefferson College of Health Professions, the Jefferson College of Population Health, the Jefferson College of Biomedical Sciences, and the Kanbar College of Design, Engineering and Commerce, the School of Continuing and Professional Studies, the College of Architecture and the Built Environment, and the College of Science, Health, and Liberal Arts. The combined institution has approximately 7,370 students and is located in Philadelphia, Pennsylvania, with additional campus locations in the Greater Philadelphia Region and Atlantic City, New Jersey.
For the year ended June 30, 2023, the integrated healthcare organization included TJUH System (“TJUHS”), Abington Health (“Abington”), Jefferson Health Northeast System (“JHNES”), Kennedy Health System (“Kennedy”), Magee Rehabilitation Hospital (“Magee”), and Albert Einstein Health Network (“AEHN”). The integrated healthcare organization provides inpatient, outpatient, and emergency care services through acute care, ambulatory care, rehabilitation care, physician and other primary care services for residents of the Greater Philadelphia Region.
Additionally, the integrated healthcare organization includes Health Partners Plans (HPP). HPP provides access to healthcare services on a prepaid basis. HPP is licensed by the Commonwealth Departments of Insurance and Health to operate as a Health Maintenance Organization.
Federal Identification Numbers for reporting entities included in this report are 23-1352651 for the University, 23- 2829095 for Thomas Jefferson University Hospital, 23-1352152 for Abington Memorial Hospital, 23-0596940 for Jefferson Health - Northeast, 22-1773439 for Kennedy University Hospital, Inc., 23-1396794 for Albert Einstein Medical Center, 26-3359979 for Lansdale Hospital Corporation, 23-1476328 for Magee Rehabilitation Hospital, 23-2691968 for Aria Health Physician Services, 46-0779942 for Aria Health Orthopedics, 47-2639286 for Jefferson Acute Care Physicians, P.C., 23-2809585 for Jefferson University Physicians, 23-2678055 for Methodist Associates in Healthcare, Inc., 46-1420853 for Kennedy Medical Group Practice, P.C., 46-4855345 for Jefferson University Physicians of New Jersey, 23-2858320 for Jefferson Medical Care, 22-2442032 for Kennedy Health Facilities, Inc., 23-2622006 for Walnut Home Therapeutics, Inc., 20-4193243 for Einstein Medical Center Montgomery, 23-2275991 for Fornance Physicians Inc., 23-2664784 for Einstein Practice Plan, Inc., 23-2760086 for Einstein Community Health Associates, and 23-2379751 for HPP.
Title: Basis of Presentation
Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Expenditures include a portion of costs associated with general university activities which are allocated to awards under negotiated formuals commonly referred to as facilities and adminstrative cost rates. Expenditures for certain non-student financial aid awards include indirect costs. The University generally applies its predetermined approved facilities and adminstrative rate when charging indirect costs to federal award rather than the 10% de minimis cost rate as decribed in Section 200.414 of the Uniform Guidance. Expenditures for federal student financial aid programs are recognized as incurred and include Federal Pell program grants to students, the federal share of students' FSEOG program grants, Federal Work-Study program earnings, loans to students under federally guaranteed programs and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. Expenditures for other federal awards of the University are determined using the cost accounting principles and procedures set forth in the Uniform Guidance. Under these cost principles, certain expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: TJU uses the predetermined indirect cost rate in the rate agreement.
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) presents a summary of certain activities of the University for the year ended June 30, 2023. Negative amounts represent current year adjustments of amounts reported in prior years. Assistance listing and pass-through entity numbers are included when available. The information in the schedule is presented in accordance with the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements of the University.
Amounts presented related to expenditures of HPP programs are inclusive of the 18-month period ending June 30, 2023. The University acquired a controlling interest in HPP on November 1, 2021. Independent auditors’ reports were issued by other auditors to the Board of Directors of HPP for the year ending December 31, 2021 for HPP’s Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statement Performed in Accordance With Government Auditing Standards and Compliance for the Major Federal Program and Report on Internal Control Over Compliance.
For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly by the University with agencies and departments of the federal government and all sub awards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements.
Title: Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Expenditures include a portion of costs associated with general university activities which are allocated to awards under negotiated formuals commonly referred to as facilities and adminstrative cost rates. Expenditures for certain non-student financial aid awards include indirect costs. The University generally applies its predetermined approved facilities and adminstrative rate when charging indirect costs to federal award rather than the 10% de minimis cost rate as decribed in Section 200.414 of the Uniform Guidance. Expenditures for federal student financial aid programs are recognized as incurred and include Federal Pell program grants to students, the federal share of students' FSEOG program grants, Federal Work-Study program earnings, loans to students under federally guaranteed programs and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. Expenditures for other federal awards of the University are determined using the cost accounting principles and procedures set forth in the Uniform Guidance. Under these cost principles, certain expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: TJU uses the predetermined indirect cost rate in the rate agreement.
Expenditures reported in the Schedule are reported on the accrual basis of accounting. Expenditures include a portion of costs associated with general university activities which are allocated to awards under negotiated formulas commonly referred to as facilities and administrative cost rates.
Expenditures for certain non-student financial aid awards include indirect costs. The University generally applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10% de minimis cost rate as described in Section 200.414 of the Uniform Guidance.
Expenditures for federal student financial aid programs are recognized as incurred and include Federal Pell program grants to students, the federal share of students’ FSEOG program grants, Federal Work-Study program earnings, loans to students under federally guaranteed programs and certain other federal financial assistance grants for students and administrative cost allowances, where applicable.
Expenditures for other federal awards of the University are determined using the cost accounting principles and procedures set forth in the Uniform Guidance. Under these cost principles, certain expenditures are not allowable or are limited as to reimbursement.
Title: Student Loan Programs
Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Expenditures include a portion of costs associated with general university activities which are allocated to awards under negotiated formuals commonly referred to as facilities and adminstrative cost rates. Expenditures for certain non-student financial aid awards include indirect costs. The University generally applies its predetermined approved facilities and adminstrative rate when charging indirect costs to federal award rather than the 10% de minimis cost rate as decribed in Section 200.414 of the Uniform Guidance. Expenditures for federal student financial aid programs are recognized as incurred and include Federal Pell program grants to students, the federal share of students' FSEOG program grants, Federal Work-Study program earnings, loans to students under federally guaranteed programs and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. Expenditures for other federal awards of the University are determined using the cost accounting principles and procedures set forth in the Uniform Guidance. Under these cost principles, certain expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: TJU uses the predetermined indirect cost rate in the rate agreement.
The Federal student loan programs listed below are administered directly by the University and balances and transactions relating to these programs are included in the University’s consolidated financial statements. Loans outstanding at the beginning of the year, the administrative cost allowance and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2023 consists of:
Assistance Listing # Loan Balance
Health Professions Student Loans, Including Primary Care Loans/Loans for Disadvantaged Students 93.342 $ 997,916
Nursing Student Loans 93.364 2,711,483
Perkins Loan Programs
Nurse Faculty Loan Program 84.038
93.264 1,754,265
190,641
Title: Federal Direct Loan Program (FDLP)
Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Expenditures include a portion of costs associated with general university activities which are allocated to awards under negotiated formuals commonly referred to as facilities and adminstrative cost rates. Expenditures for certain non-student financial aid awards include indirect costs. The University generally applies its predetermined approved facilities and adminstrative rate when charging indirect costs to federal award rather than the 10% de minimis cost rate as decribed in Section 200.414 of the Uniform Guidance. Expenditures for federal student financial aid programs are recognized as incurred and include Federal Pell program grants to students, the federal share of students' FSEOG program grants, Federal Work-Study program earnings, loans to students under federally guaranteed programs and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. Expenditures for other federal awards of the University are determined using the cost accounting principles and procedures set forth in the Uniform Guidance. Under these cost principles, certain expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: TJU uses the predetermined indirect cost rate in the rate agreement.
During the fiscal year ended June 30, 2023 the University processed new loans to students under the Direct Student Loan Program assistance listing # 84.268, which includes subsidized and unsubsidized Stafford Loans and Supplemental Loans for Students. The University is responsible only for the performance of certain administrative duties with respect to the FDLP and, accordingly, these loans are not included in the University's basic consolidated financial statements. Loans made during the year are included in the federal expenditures presented in the Schedule. It is not practical to determine the balance of loans outstanding under these programs at June 30, 2023.
Title: Provider Relief Funds
Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Expenditures include a portion of costs associated with general university activities which are allocated to awards under negotiated formuals commonly referred to as facilities and adminstrative cost rates. Expenditures for certain non-student financial aid awards include indirect costs. The University generally applies its predetermined approved facilities and adminstrative rate when charging indirect costs to federal award rather than the 10% de minimis cost rate as decribed in Section 200.414 of the Uniform Guidance. Expenditures for federal student financial aid programs are recognized as incurred and include Federal Pell program grants to students, the federal share of students' FSEOG program grants, Federal Work-Study program earnings, loans to students under federally guaranteed programs and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. Expenditures for other federal awards of the University are determined using the cost accounting principles and procedures set forth in the Uniform Guidance. Under these cost principles, certain expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: TJU uses the predetermined indirect cost rate in the rate agreement.
The Schedule includes grant activity related to the Department of Health and Human Services ("HHS") Coronavirus Aid Relief and Economic Security (CARES) Act Assistance Listing Number 93.498. As required based on guidance in the 2022 OMB Compliance Supplement, the Schedule includes all Period 4 and 5 funds received between July 1, 2021 and June 30, 2022, and expended by June 30, 2023 as reported to HRSA via the PRF Reporting Portal. The Schedule thus includes $3.4M of direct expenditures and $107.7M in lost revenue.
Title: Federal Emergency Management Agency ("FEMA")
Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Expenditures include a portion of costs associated with general university activities which are allocated to awards under negotiated formuals commonly referred to as facilities and adminstrative cost rates. Expenditures for certain non-student financial aid awards include indirect costs. The University generally applies its predetermined approved facilities and adminstrative rate when charging indirect costs to federal award rather than the 10% de minimis cost rate as decribed in Section 200.414 of the Uniform Guidance. Expenditures for federal student financial aid programs are recognized as incurred and include Federal Pell program grants to students, the federal share of students' FSEOG program grants, Federal Work-Study program earnings, loans to students under federally guaranteed programs and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. Expenditures for other federal awards of the University are determined using the cost accounting principles and procedures set forth in the Uniform Guidance. Under these cost principles, certain expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: TJU uses the predetermined indirect cost rate in the rate agreement.
As of June 30, 2023, the University received approval during 2023 for $10.4M of claims submitted to FEMA under Assistance Listing Number 97.036. The claims submitted represented incurred expenses attributed to the University’s response to COVID-19. The fiscal year 2023 Schedule of Expenditures of Federal Awards includes expenses of $10.4M which were incurred in a prior year.