Identify the name and address of the independent auditor. Is the auditor's opinion unmodified? If not, describe the modification. Is the opinion limited to the basic financial statements, or does the opinion include combining and individual fund statements? INDEPENDENT AUDITOR'S REPORTThe Honorable Philip D. MurphyGovernor of New JerseyThe Honorable Stephen M. SweeneyPresident of the SenateThe Honorable Craig J. CoughlinSpeaker of the General AssemblyMs. Peri A. HorowitzExecutive DirectorOffice of Legislative ServicesReport on the Financial StatementsWe have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregateremaining fund information of the State of New Jersey, as of and for the year ended June 30, 2019,and the related notes to the financial statements, which collectively comprise the state's basic financialstatements as listed in the table of contents.Management's Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; thisincludes the design, implementation, and maintenance of internal control relevant to the preparationand fair presentation of financial statements that are free from material misstatement, whether due tofraud or error.Auditor's ResponsibilityOur responsibility is to express opinions on these financial statements based on our audit. We did notaudit the financial statements of the pensions and other employee benefits trust funds, and the PortAuthority of New York and New Jersey which represent 90 percent, 92 percent, and 43 percent,respectively, of the assets, net position and fund balance, and revenues of the aggregate remainingfund information, and 100 percent of the information disclosed in Note 2D of the basic financialstatements. Those statements were audited by other auditors whose reports have been furnished to us,and our opinions, insofar as they relate to the amounts and disclosures included for the pensions andother employee benefits trust funds and the Port Authority of New York and New Jersey, are basedsolely on the reports of the other auditors. In addition, we did not audit the financial statements of thediscretely presented component units. Our opinion on the aggregate discretely presented componentunits is based solely upon audit reports prepared by other auditors and furnished to us. We conductedour audit in accordance with auditing standards generally accepted in the United States of Americaand the standards applicable to financial audits contained in Government Auditing Standards, issuedby the Comptroller General of the United States. Those standards require that we plan and performthe audit to obtain reasonable assurance about whether the financial statements are free from materialmisstatement. The financial statements of the pensions and other employee benefits trust funds, andtwo discretely presented component units, the Higher Education Student Assistance Authority and theCasino Reinvestment Development Authority, were not audited in accordance with GovernmentAuditing Standards.An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements. The procedures selected depend on the auditor's judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity'spreparation and fair presentation of the financial statements in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonableness ofsignificant accounting estimates made by management, as well as evaluating the overall presentationof the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinions.OpinionsIn our opinion, based on our audit and the reports of other auditors, the financial statements referredto above present fairly, in all material respects, the respective financial position of the governmentalactivities, the business-type activities, the aggregate discretely presented component units, each majorfund, and the aggregate remaining fund information of the State of New Jersey as of June 30, 2019,and the respective changes in financial position and, where applicable, cash flows thereof for the yearthen ended in accordance with accounting principles generally accepted in the United States ofAmerica. Emphasis of MatterAdoption of New Accounting PronouncementsAs discussed in Note 2A, the State of New Jersey adopted the provisions of Governmental AccountingStandards Board (GASB) Statement No. 83, Certain Asset Retirement Obligations and GASBStatement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and DirectPlacements. Our opinion was not modified with respect to these matters.Other MattersRequired Supplementary InformationAccounting principles generally accepted in the United States of America require that themanagement's discussion and analysis and the schedules listed under Required SupplementaryInformation in the accompanying table of contents be presented to supplement the basic financialstatements. Such information, although not a part of the basic financial statements, is required by theGovernmental Accounting Standards Board who considers it to be an essential part of financialreporting for placing the basic financial statements in an appropriate operational, economic, orhistorical context. We and other auditors have applied certain limited procedures to the requiredsupplementary information in accordance with auditing standards generally accepted in the UnitedStates of America, which consisted of inquiries of management about the methods of preparing theinformation and comparing the information for consistency with management's responses to ourinquiries, the basic financial statements, and other knowledge we obtained during our audit of the basicfinancial statements. We do not express an opinion or provide any assurance on the informationbecause the limited procedures do not provide us with sufficient evidence to express an opinion orprovide any assurance.Other InformationOur audit was conducted for the purpose of forming opinions on the financial statements thatcollectively comprise the State of New Jersey's basic financial statements. The introductory section,combining financial statements and schedules section, other information section, and statisticalsection, as listed in the table of contents, are presented for the purposes of additional analysis and arenot a required part of the basic financial statements.The combining financial statements and schedules section and the other information section are theresponsibility of management and were derived from and relate directly to the underlying accountingand other records used to prepare the basic financial statements. Such information has been subjectedto the auditing procedures applied in the audit of the basic financial statements and certain additionalprocedures, including comparing and reconciling such information directly to the underlyingaccounting and other records used to prepare the basic financial statements or to the basic financialstatements themselves, and other additional procedures in accordance with auditing standardsgenerally accepted in the United States of America by us and other auditors. In our opinion, based onour audit, the procedures performed as described above, and the reports of the other auditors, thecombining financial statements section and the other information section are fairly stated, in allmaterial respects, in relation to the basic financial statements as a whole.The introductory section and the statistical section have not been subjected to the auditing proceduresapplied in the audit of the basic financial statements, and accordingly, we do not express an opinionor provide any assurance on them.Other Reporting Required by Government Auditing StandardsIn accordance with Government Auditing Standards, we have also issued our report dated March 30,2020 on our consideration of the State of New Jersey's internal control over financial reporting andon our tests of its compliance with certain provisions of laws, regulations, contracts, and grantagreements and other matters. The purpose of that report is solely to describe the scope of our testingof internal control over financial reporting and compliance and the results of that testing, and not toprovide an opinion on the effectiveness of the State of New Jersey's internal control over financialreporting or on compliance. That report is an integral part of an audit performed in accordance withGovernment Auditing Standards in considering the State of New Jersey's internal control overfinancial reporting and compliance.EellsStephen M. EellsState AuditorMarch 30, 2020

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This audit report pertains to financial position of state of new Jersey which is signed by Stephen…