Audit 392931

(1) Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) summarizes the expenditures of The Johns Hopkins University (the University) under programs of the federal government for the year ended June 30, 2025. The Schedule was prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the University and agencies and departments of the federal government and all subawards made to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. For schedule presentation purposes, awards are grouped into the following categories: Research and Development – Includes awards for research and development work at the University’s Applied Physics Laboratory (APL), provided primarily under cost plus fixed fee type contracts with agencies of the Department of Defense (DOD), and for work at the University’s academic divisions, primarily under grants with agencies and divisions of the Department of Health and Human Services (DHHS). Student financial aid – Includes awards to provide financial assistance to students under Federal Work Study (FWS), Federal Pell Grants (Pell), Federal Supplemental Educational Opportunity Grants (FSEOG), loan disbursements under the Federal Perkins, and Federal Direct Student Loan Programs of the Department of Education as well as Nurse Faculty Loan Program of the Department of Health and Human Services. Cooperative agreements – Includes awards for international assistance projects sponsored by the Agency for International Development (AID) to Jhpiego Corporation, a separate corporate entity controlled by the University, and certain departments of the University’s Bloomberg School of Public Health (with respect to population information, population communication services, and various other projects). Training and other – Includes awards to support research training for graduate and other students related assistance programs that are not considered part of the research and development cluster under Uniform Guidance. The University receives pass‑through awards from approximately 500 different institutions and not for profit organizations. Information about significant pass-through organizations is presented on the schedule of expenditures of federal awards. The University makes payments to approximately 600 subrecipient organizations. Information about significant subrecipients is presented on the schedule of expenditures of federal awards. The Schedule does not include federal awards expenditures, if any, of The Johns Hopkins Health System Corporation (JHHS) or any of its member institutions. JHHS and its member institutions are incorporated and governed separately from the University, and their accounts are not included in the University’s financial statements.

(2) Summary of Significant Accounting Policies for Federal Awards (a) General For purposes of the Schedule, expenditures for federal award programs are recognized on an accrual basis of accounting. (b) Applied Physics Laboratory The Applied Physics Laboratory’s (APL) federal award expenditures relate primarily to costs incurred and fees earned under cost plus fixed fee type contracts with agencies of the DOD. Costs incurred and fees earned under these contracts are determined in accordance with the terms of the contracts and the contract cost principles and procedures set forth in the Federal Acquisition Regulation (FAR) and, where applicable, agency acquisition regulations that implement or supplement the FAR. Under terms of the contracts and provisions of the FAR, certain expenditures are not allowable or are limited as to reimbursement. Expenditures include indirect costs, relating primarily to general and administrative activities and technical supervision and services at the APL, which are allocated to the direct cost objectives (including federal awards) which benefit from the activities using bases and methods considered appropriate for the various types of costs involved. Indirect costs are allocated to federal awards and billed to sponsoring agencies during each cost accounting period based on agreed upon provisional rates; variances between actual costs incurred and costs allocated and billed using the provisional rates are adjusted periodically. For purposes of the Schedule, the variance for the year ended June 30, 2025 was allocated to individual awards based on their proportionate federal award expenditures for the period. Fees earned on cost plus fixed fee type contracts are recognized as related expenditures are incurred and included as contract costs in the Schedule. For contract administration purposes, the year-end date for the APL’s principal contracts with agencies of the DOD is September 30. The information in the Schedule with respect to these contracts is presented to comply with the Uniform Guidance requirements and is not intended to provide the sole basis for administrative closeout of the contracts. (c) Academic and Other Divisions Expenditures for federal student financial aid programs are recognized as incurred and include Pell grants to students, the federal share of students’ FSEOG grants and FWS program earnings, loan disbursements, certain other federal financial assistance grants for students, and administrative cost allowances, where applicable. Expenditures for other federal awards of the University’s academic and other divisions, including Jhpiego Corporation, are determined using the cost accounting principles and administrative procedures set forth in the Uniform Guidance. Under the cost principles, certain expenditures are not allowable or are limited as to reimbursement. Expenditures for nonfinancial aid awards include facilities and administrative (F&A) costs, relating primarily to facilities operation and maintenance and general, divisional, and departmental administration services, which are allocated to direct costs (including federal awards) based on negotiated percentages of direct expenditures, with certain exclusions. F&A costs allocated to such awards for the year ended June 30, 2025 were based on predetermined rates established with DHHS, the University’s cognizant federal agency. The University did not elect to apply the 10% De Minimis indirect cost rate permitted by Uniform Guidance.

) Federal Student Loan Programs and Related Matters The Federal Perkins (Perkins) and Nurse Faculty Loan (NFLP), programs are administered directly by the University, and balances and transactions relating to these programs are included in the University’s consolidated financial statements. The current year loaned amounts under the Perkins and NFLP programs were $0, $1,651,693, respectively. The amount of Perkins and NFLP loans on the schedule of expenditures of federal awards includes the beginning outstanding loan balance, the current year loaned amount, and the administrative charge. The balances of loans outstanding under the Perkins, and NFLP, programs were $2,654,147, $9,422,360, respectively, as of June 30, 2025.The University is responsible only for the performance of certain administrative duties with respect to the federal direct loan programs, and accordingly, these loans are not included in its consolidated financial statements and it is not practical to determine the balance of loans outstanding to students and former students of the University under these programs as of June 30, 2025. Direct loans issued during the year ended June 30, 2025 are included on the Schedule.