Audit 394713

The accompanying Supplemental Schedule of Expenditures of Federal Awards (the “Schedule”) has been prepared in accordance with the Office of Management and Budget (“OMB”) Uniform Guidance, using the accrual basis of accounting. The purpose of the Schedule is to present a summary of The Charles Stark Draper Laboratory, Inc.’s (“Draper”) research programs for the year ended June 27, 2025, which have been funded by the U.S. Government (“federal awards”). For purposes of the Schedule, federal awards include all federal contracts entered into directly between Draper and the federal government and also between Draper and other primary recipients of Federal government funds (pass-through). Because the Schedule presents only the federal award activity of Draper, the Schedule is not intended to, and does not, present either the financial position or changes in net assets of Draper.

Draper recovers indirect costs under contracts and grants at provisional rates negotiated between the cognizant agency (Defense Contract Management Agency (“DCMA”)) and Draper. Separate cost rates are negotiated for the following final indirect rates: Employee Benefits, General Overhead, Plant Overhead, and Cost of Money. Additionally, separate cost rates are negotiated for the following service centers: Machine Shop, Information Technology, Design Center, Focused Ion Beam, ASIC, 16th Street Wafer Fabrication and Micro Fabrication. Final costs for each fiscal year are determined using Defense Contract Audit Agency (the “DCAA”) annual audits and through negotiations with the DCMA Administrative Contract Officer. Draper has not elected to use the de minimis indirect cost rate as described in Section 200.414 of the Uniform Guidance. A Forward Pricing Rate Recommendation letter dated April 4, 2025 from the Defense Contract Management Agency has established the indirect cost rates used by Draper. A schedule of cost rates is included in DCAA Audit Report No. 20251011000010 Independent Audit Report on The Charles Stark Draper Laboratory, Inc.’s Compliance with Requirements Applicable to its Major Program and on Internal Control over Compliance in Accordance with the Uniform Guidance at 2 CFR Part 200 for Fiscal Year Ended June 27, 2025 (Report 3a).