Notes to SEFA
California Institute of Technology (the “Institute”) is a private, not-for-profit institution of higher education based in Pasadena, California. The Institute manages Jet Propulsion Laboratory (“JPL”) under a single cost-reimbursable contract, Assistance Listing Number (ALN) 43.001, with the National Aeronautics and Space Administration (“NASA”). JPL is a NASA Federally Funded Research and Development Center (“FFRDC”), which since 1959 has performed government research and development efforts that cannot be satisfied as effectively by existing federal government resources or normal contractor relationships. JPL performs research and development for NASA in the science and technology of unmanned space exploration. In addition to other terms of its contract, the Institute receives an annual negotiated reimbursement in lieu of indirect costs (“lump sum”) and an annual fixed performance fee. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) has been prepared to satisfy the requirements of Subpart F – Audit Requirements of Title 2 U.S. Code of Federal Regulation Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). The Schedule summarizes the expenditures at JPL under the provisions of the NASA contract for the year ended September 28, 2025. The contract is classified as Research and Development on the accompanying Schedule. JPL is an FFRDC managed by the Institute. The Institute operates JPL for NASA under terms of the Prime Contract. The current NASA contract began October 1, 2018. The NASA Contract has a five-year term and permits awards of up to five additional years based upon annual NASA evaluations of its performance. NASA has formally extended the contract by four years and is in the process of extending the contract by another year to September 24, 2028. All direction to perform work at JPL comes from the authority in the Prime Contract and is governed by the terms and conditions therein. 80NM0018D0004 is the active Prime Contract for the period of October 1, 2018 through September 30, 2027. All task orders issued under predecessor contract NNN12AA01C not completed as of September 30, 2018 were transferred to task orders issued under 80NM0018D0004 on and after October 1, 2018. The Schedule has been prepared using the accrual basis of accounting. JPL’s cognizant audit agency is NASA. The NASA-designated auditor is responsible for auditing allowability of all expenditures charged by JPL as well as monitoring the cost accounting practices used at JPL. Fiscal year 2023 is the last fiscal year for which a final incurred cost report has been received. See Note 6 to the JPL financial statements for further discussion of audit results. Subrecipients and Pass-through Funding Certain funds are passed through to subrecipient organizations by JPL. Expenditures incurred by the subrecipients and reimbursed by JPL are presented in the Schedule.
JPL operates under a single cost-reimbursement contract with NASA and thus, all expenditures are directly allocable to that contract. JPL does not use an F&A rate under its contract with NASA and thus the de minimis indirect cost rate is not applicable to JPL.
(in thousands of dollars) During the year ended September 28, 2025, the Institute recognized a lump sum and a fixed performance fee of approximately $27,379 and $31,000, respectively, under the NASA contract. The lump sum amount includes $4,786 of accrued lump sum that is pending negotiation and approval by NASA. The lump sum and fixed fee are not reflected in revenue and expenses in JPL’s statement of activities or the Schedule; these amounts are accounted for as revenues in the Institute’s financial statements.