Haskins Laboratories, Inc.Non-Profit

Finding No. 2021-002 - Activities allowed or un-allowed and allowable costs Award Information: Cluster: Research and Development Grantor: U.S. Department of Health and Human Services - National Institutes of Health; National Science Foundation; Georgetown University - NIH; Florida State University-NIH Award Name and Number: Links Between Production and Perception in Speech 5R01DC002717-21; Development of Selective Attention to Multisensory Information in Human Infants BCS-1946115; Converging Behavioral and Neural Measures of Attention in Human Infants 1R21HD103931-01A1; Development of Attention in Preschool Children BCS-2122781; Statistical Approaches to Linguistic Pattern Learning 5R01HD037082-18; The Florida Learning Disabilities Center 5P05HD052120-14; Decoding the Neural Time-Course of Spoken Word Recognition 5R21DC017596-02. Assistance Listing Number: 47.075, 93.865, 93.173 Criteria Specific requirements for activities and costs allowed or unallowed are unique to each federal program and are found in the federal statutes, regulations, and the terms and conditions of the federal award pertaining to the program. Condition The schedule below notes instances where a federal award was incorrectly charged an expenditure: See Schedule of Findings and Questioned Costs for chart/table. Questioned Costs Questioned costs documented above. All costs improperly charged to a federal award were corrected. The expenditures either have subsequently been reimbursed or are scheduled to be reimbursed to the Federal grantor agency or pass-through organization. Cause Management override of controls by the previous Chief Financial Officer resulted in expenditures being misapplied to federal awards. Effect The Laboratory charged un-allowed expenditures to federal awards and received improper reimbursements form the federal awarding agency and pass-through agencies. Recommendation We recommend that oversight controls currently in place be more thoroughly performed as a means to detect and correct errors or misstatements on a timely basis. Additional oversight should be performed on the members of management responsible for financial reporting by other senior members of management. Management Response and Planned Corrective Action Following these findings are management?s view and corrective action plan.

Finding No. 2021-003 - Cash Management Award Information: Cluster: Research and Development Grantor: U.S. Department of Health and Human Services ? National Institutes of Health Award Name and Number: Tracking Neurocognitive Changes During Evidence Based Reading Instruction in Typically and Atypically Developing Children - 5R37HD090153-04. Assistance Listing Number: 93.865 Criteria Generally non-Federal entities must minimize the time elapsing between the receipt of funds from Federal awarding agencies and disbursements of those funds. Federal regulation, 2 CFR 200.305 (b3): Reimbursement is the preferred method when the requirements in paragraph (b) cannot be met, when the Federal awarding agency sets a specific conditions or when the non-Federal entity request payment by reimbursements. Per the OMB Compliance Supplement, the non-Federal entity must disburse funds for program purposes before requesting payment from the Federal awarding agency or pass-through organization. Condition When reviewing the bank reconciliation for December 2021, an outstanding check for $42,015.64 was noted that was not physically mailed to the vendor until April 2022 but reimbursement was requested and received from the Federal grantor agency during 2021. Questioned Costs No questioned costs as reimbursement was requested for allowable costs. Cause Management override of internal controls by the former Chief Financial Officer and working capital issues resulted in a check not being timely mailed. Effect The Laboratory received a reimbursement of funds from the Federal grantor agency prior to disbursing the funds to the vendor for program expenditures. Recommendation We recommend that the Laboratory adhere to its cash management procedures currently in place that require disbursement of program expenditures prior to requesting payment from the Federal awarding agency. Management Response and Planned Corrective Action Following these findings are management?s view and corrective action plan.