Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of MRIGlobal under programs of the federal government for the year ended September 30, 2025. The information in this Schedule is presented 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). Because the Schedule presents only a selected portion of the operations of MRIGlobal, it is not intended to and does not present the financial position, changes in equity or cash flows of MRIGlobal.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Expenditures consist of direct and indirect costs. Direct costs are those that can be easily identified with an individual federally sponsored project. The salary of a principal investigator of a sponsored research project and the material consumed by the project are examples of direct costs. Indirect costs are costs of services and resources that benefit both sponsored and nonsponsored projects and activities. MRIGlobal uses indirect rates to allocate indirect costs to individual direct projects. The indirect rates are calculated by dividing indirect costs by the relevant direct cost bases. The resulting rates are then applied, as applicable, to both sponsored and nonsponsored direct costs to allocate indirect costs to each end cost objective. Indirect rates are submitted to the Department of Defense for audit and approval.
MRIGlobal has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance.
For the year ended September 30, 2025, MRIGlobal had $3,766,219 of expenditures related to classified contracts with undisclosed federal agencies. These classified contracts represent 4.92% of the total research and development cluster and may only be audited by the sponsoring agency and were not included as part of the audit performed in accordance with the audit 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).