Basis of Presentation—The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (US GAAP). The accompanying consolidated financial statements include all the Company’s wholly owned and financially or otherwise controlled subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation and figures are presented in thousands but for the Schedule of Expenditures and Federal Awards for the year ended September 30, 2025 or unless otherwise stated. The accompanying schedule of expenditures of federal awards (the “Schedule”) summarizes the expenditures of Battelle Memorial Institute (BMI) and subsidiaries (the “Company”) under programs funded by the federal government for the year ended September 30, 2025. The Schedule has been prepared on the accrual basis in accordance with accounting principles generally accepted in the United States of America and includes all federal awards and contracts entered into directly between the Company and agencies and departments of the federal government, as well as funds passed through to the Company by other recipients. In accordance with the Uniform Guidance 2 CFR 200 (§200.38 Federal award) the Schedule does not include amounts received to operate government-owned, contractor-operated facilities. Negative amounts reported on the Schedule are adjustments or credits made in the normal course of business to amounts reported as expenditures in prior fiscal years. Research and Development Cluster (“R&D Cluster”)—OMB Uniform Guidance defines research and development as follows: research is a systematic study directed toward fuller scientific knowledge or understanding of the subject studied; development is the systematic use of knowledge and understanding gained from research directed toward the production of useful materials, devices, systems, or methods, including design and development of prototypes and processes. The Company’s work is closely aligned with the R&D cluster of programs in accordance with 2 CFR 200.1. Accordingly, the schedule of expenditures of federal awards reports all reportable programs in the R&D cluster. Subrecipient—Certain funds are passed through to subgrantee organizations by the Company. Expenditures incurred by the subgrantees and reimbursed by the Company are presented in the Schedule. The Company is also the subrecipient of funds, which have been reported as expenditures and listed as pass-through funds.
During the year ended September 30, 2025, the Company did not receive nonmonetary assistance.
Expenditures consist of direct and indirect costs. Direct costs are those that can be identified specifically with a sponsored project. Indirect costs are the costs of services and resources that benefit both sponsored and non-sponsored projects but are necessary for the operation of the Company. The Battelle Science and Technology (S&T), Integration, and Battelle Ecology segment and Battelle Education subsidiary projects use indirect cost rates to charge indirect costs to individual sponsored projects. The rates are the result of a number of complex cost allocation procedures that the Company uses to allocate its indirect costs to both sponsored and non-sponsored activities. The indirect costs are allocated to sponsored projects by dividing by the direct cost bases of the sponsored projects to arrive at the indirect costs rates. The indirect cost rates of the S&T and Integration segments and Battelle Education subsidiary are reviewed and approved by the Defense Contract Audit Agency (DCAA) and Defense Contract Management Agency (DCMA). The indirect cost rates of the Battelle Ecology segment are reviewed and approved by the National Science Foundation (NSF). The indirect cost rates are subject to final audit and final agreement with the appropriate Government representative in accordance with FAR 52.216-7(d).
Battelle does not have loan balances outstanding at the end of fiscal year 2025 reportable in accordance with §200.502—“Basis for determining Federal awards expended”.
Due to the nature of research and development that the Company performs on behalf of the federal government, various contracts and project information is considered classified, which includes “Top Secret,” “Secret,” or “Confidential.” As a result, the Schedule reflects summarized data by agency in order to properly safeguard various information as required by the federal government.
Awards in the amount of $798,696,884 are reported as a portion of total project revenue in the Company’s consolidated financial statements as revenue from operations. During audit testing, exemptions covering thirteen classified contracts were approved by appropriate government officials. Accordingly, $18,976,416 of expenditures associated with these thirteen exempted contracts were excluded from SEFA reporting, resulting in a final SEFA total of $779,720,468.
The Company did not receive any donated personal protective equipment from the federal government during the year ended September 30, 2025.