EIN: 161704454
UEI: EHEEAGYKUB87
Single Audit filed under EIN: 310732831
That audit also covers EIN: 341621676
Audited by: Rea & Associates, Inc.
Cognizant agency: 12 [Department of Defense]
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Data as of September 7, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on February 4, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by August 4, 2026 (36 days ago).
What is a management decision? →The Organization, specifically the entity Parallax Advanced Research (“Parallax”), did not have adequate documentation of extended payment terms in the ordinary course of business, and exceeded the typical 30 days. Context: It was noted that the Organization requested reimbursement from the federal agency for seven expenditures; however, the subsequent payment to the vendor for those expenditures was not made either within 30 days of the requested reimbursement or within the time period agreed-upon by the vendor. We did observe that payment was made within 30 days of receipt of the cash from the federal agency for six of the seven expenditures. Of those six expenditures, payments to vendors were made within two weeks of the required date, as described above, for five of them, indicating that they were included in the next pay run. Cause: Parallax has been extending terms and conditions of payments of vendors beyond 30 days from the date of reimbursement request, as necessary for overall operations and its cash management needs. Additionally, Parallax has also experienced timing challenges pertaining to cash collections. Effect: Subset of vendors were paid later than either 30 days from the date of the request for reimbursement from the government or the date that was agreed upon by the vendor. Questioned costs: None. Identification of how questioned costs were computed: Not applicable. Repeat finding: 2024-001. Recommendation: The Organization should review its procedures and update as necessary. Views of responsible officials: The Organization will consider the observation and the risks associated to determine action plan to address the finding. See corrective action plan.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Defense. Federal Program: Research and Development Cluster. AL Number: ALN: 12.615 and 12.RD. Pass-through: Not applicable. Award Number: FA8650-19-3-9341/FA8650-19-3-9342, FA8650-22-D-6401, 47QFCA22F0043, and one classified contract. Award Year: Various. Type of Finding: Significant Deficiency and Noncompliance. Criteria: For cost-reimbursement contracts under the Federal Acquisition Regulations (FAR), 52.216-7(b)(1), with relation to supplies and services purchased for use on the contract, “ordinary course of business” would be in accordance with the terms and conditions of a subcontract or invoice, and ordinarily within 30 days of the request to the federal government for reimbursement. Condition: The Organization, specifically the entity Parallax Advanced Research (“Parallax”), did not have adequate documentation of extended payment terms in the ordinary course of business, and exceeded the typical 30 days. Context: It was noted that the Organization requested reimbursement from the federal agency for seven expenditures; however, the subsequent payment to the vendor for those expenditures was not made either within 30 days of the requested reimbursement or within the time period agreed-upon by the vendor. We did observe that payment was made within 30 days of receipt of the cash from the federal agency for six of the seven expenditures. Of those six expenditures, payments to vendors were made within two weeks of the required date, as described above, for five of them, indicating that they were included in the next pay run. Cause: Parallax has been extending terms and conditions of payments of vendors beyond 30 days from the date of reimbursement request, as necessary for overall operations and its cash management needs. Additionally, Parallax has also experienced timing challenges pertaining to cash collections. Effect: Subset of vendors were paid later than either 30 days from the date of the request for reimbursement from the government or the date that was agreed upon by the vendor. Questioned costs: None. Identification of how questioned costs were computed: Not applicable. Repeat finding: 2024-001. Recommendation: The Organization should review its procedures and update as necessary. Views of responsible officials: The Organization will consider the observation and the risks associated to determine action plan to address the finding. See corrective action plan.
As a 501c3 non-profit organization with a large portfolio of federally funded cost-reimbursement awards, management of cash is of fundamental importance due to the nature of the business and floating of cash involved in base operations and maintaining our valued vendor partnerships. Parallax has made significant improvements from prior years, including but not limited to, establishment of a formal Billing Policy and substantially fewer selections where vendor payment wasn’t made within 30 days of Parallax’s request for reimbursement from the government. Unfortunately, Parallax encountered some cumulative timing challenges on cash collections because of provisional vs. anticipated final billing rates in fiscal year 2025. Parallax is also in the process of renegotiating the terms of the line of credit that would avoid fluctuations based on receivables. We believe a combination of internal controls through the policy put in place, collection of backlog rate variances and a static line of credit availability will collectively assist with ensuring future compliance. The anticipated completion date of May 1, 2026 was derived from the requirement to submit our Incurred Cost Submission to the government by December 31, 2025. The anticipated completion date assumes established final rates within a 60-calendar day window of that date to allow time to process billings, communicate with clients and allow time for payment processing to Parallax.
2024-001
FAC accepted this audit on December 20, 2024 — management decision was due June 20, 2025.
The Organization, specifically the entity Parallax Advanced Research ("Parallax"), did not have adequate documentation of extended payment terms in the ordinary course of business, and exceeded the typical 30 days. Cause: Parallax has been extending terms and conditions of payments of vendors beyond 30 days from the date of reimbursement request, as necessary for overall operations and its cash management needs. Additionally, Parallax has also experienced timing challenges pertaining to cash collections. Effect: Subset of vendors were paid later tan 30 days from the date of the request for reimbursement from the government. Questioned costs: None. Context: It was noted that the Organization requested reimbursement from the federal agency for 13 expenditures; however, the subsequent payment to the vendor for those expenditures was not within 30 days of the requested reimbursement. There may have been terms and conditions agreed to with the vendor, that exceed the 30 days of the request to the federal government for reimbursement, but we did not pursue that additional documentation. We did observe that payment was made within 30 days of receipt of the cash from the federal agency for six of the 13 expenditures. Of the seven expenditures that were paid more than 30 days from the reimbursement date, only one related to a reimbursement date after January 2024, which is when Parallax increased its line of credit. Recommendation: The Organization should review its procedures and update as necessary. Views of responsible officials: The Organization will consider the observation and the risks associated to determine action plan to address the finding. See corrective action plan.
Show full finding ▾Hide full finding ▴Federal Program: Research and Development Cluster ALN: 12.615, 12.U01, and 12.RD. Compliance Requirement: Cash Management. Awarding Agency: U.S. Department of Defense and National Aeronautics and Space Administration. Criteria or Specific Requirement: For cost-reimbursement contracts under the Federal Acquisition Regulations (FAR), 52.216-7(b)(1), with relation to supplies and services purchased for use on the contract, "ordinary course of business" would be in accordance with the terms and conditions of a subcontract or invoice, and ordinarily within 30 days of the request to the federal government. Condition: The Organization, specifically the entity Parallax Advanced Research ("Parallax"), did not have adequate documentation of extended payment terms in the ordinary course of business, and exceeded the typical 30 days. Cause: Parallax has been extending terms and conditions of payments of vendors beyond 30 days from the date of reimbursement request, as necessary for overall operations and its cash management needs. Additionally, Parallax has also experienced timing challenges pertaining to cash collections. Effect: Subset of vendors were paid later tan 30 days from the date of the request for reimbursement from the government. Questioned costs: None. Context: It was noted that the Organization requested reimbursement from the federal agency for 13 expenditures; however, the subsequent payment to the vendor for those expenditures was not within 30 days of the requested reimbursement. There may have been terms and conditions agreed to with the vendor, that exceed the 30 days of the request to the federal government for reimbursement, but we did not pursue that additional documentation. We did observe that payment was made within 30 days of receipt of the cash from the federal agency for six of the 13 expenditures. Of the seven expenditures that were paid more than 30 days from the reimbursement date, only one related to a reimbursement date after January 2024, which is when Parallax increased its line of credit. Recommendation: The Organization should review its procedures and update as necessary. Views of responsible officials: The Organization will consider the observation and the risks associated to determine action plan to address the finding. See corrective action plan.
As a 501c3 non-profit organization with a large portfolio of federally funded cost reimbursement awards, management of cash is of fundamental importance especially for maintaining quality subcontractor partnerships. Though Parallax has made significant improvements from the prior year as it pertains to indirect rate management, in conjunction with an increased line of credit, there is still some room for improvement as it pertains to internal controls and formalized policies. In the spirit of continuous improvement and increased management visibility, Parallax has established a formal Billing Policy which will include improved coordination with the Billing department and Program Managers, Accounts Payable and Finance to review vendor payment schedules before submitting a payment request to the U.S. Government to ensure typical payments to vendors are made within 30 days of Parallax’s request for payment. We believe this policy, in conjunction with better cash flows from indirect rate management and the increased line of credit, will assist with ensuring future compliance.
2023-001
FAC accepted this audit on February 5, 2024 — management decision was due August 5, 2024.
The Organization did not have adequate documentation of extended payment terms in the ordinary course of business, and exceeded the typical 30 days. Cause: The Organization has been extending terms and conditions of payments of vendors beyond 30 days from the date of reimbursement request, as necessary for overall operations and its cash management needs. Effect: Subset of vendors were paid later than 30 days from the date of the request for reimbursement from the government. Questioned costs: None. Context: It was noted that the Organization requested reimbursement from the federal agency for 20 expenditures; however, the subsequent payment to the vendor for those expenditures was not within 30 days of the requested reimbursement. While there may have be terms and conditions agreed to with the vendor, that exceed the 30 days of the request to the federal government for reimbursement, there was no formal documentation of these matters. We did observe that payment was made within 30 days of receipt of the cash from the federal agency, for seven of the 20 expenditures. Recommendation: The Organization should review its procedures and update as necessary. Views of responsible officials: The Organization will consider the observation and the risks associated, to determine action plan to address the finding. See corrective action plan.
Show full finding ▾Hide full finding ▴Criteria or Specific Requirement: For cost-reimbursement contracts under the Federal Acquisition Regulations (FAR), 52.216-7(b)(1), with relation to supplies and services purchased for use on the contract, “ordinary course of business” would be in accordance with the terms and conditions of a subcontract or invoice, and ordinarily within 30 days of the request to the federal government for reimbursement. Condition: The Organization did not have adequate documentation of extended payment terms in the ordinary course of business, and exceeded the typical 30 days. Cause: The Organization has been extending terms and conditions of payments of vendors beyond 30 days from the date of reimbursement request, as necessary for overall operations and its cash management needs. Effect: Subset of vendors were paid later than 30 days from the date of the request for reimbursement from the government. Questioned costs: None. Context: It was noted that the Organization requested reimbursement from the federal agency for 20 expenditures; however, the subsequent payment to the vendor for those expenditures was not within 30 days of the requested reimbursement. While there may have be terms and conditions agreed to with the vendor, that exceed the 30 days of the request to the federal government for reimbursement, there was no formal documentation of these matters. We did observe that payment was made within 30 days of receipt of the cash from the federal agency, for seven of the 20 expenditures. Recommendation: The Organization should review its procedures and update as necessary. Views of responsible officials: The Organization will consider the observation and the risks associated, to determine action plan to address the finding. See corrective action plan.
As a 501c3 non-profit organization with a significant portfolio of federally funded cost reimbursement awards, management of cash is of fundamental importance and one of the organizations highest priorities. Parallax has encountered some timing challenges as it pertains to cash collections from provisional vs. anticipated final billing rates in fiscal years 2022 and 2023. These challenges have resulted in significant timing delays in cash collections and Parallax is focused on taking a multipronged approach to providing more flexibility in our operations. As it pertains directly to billing rate management, Parallax has implemented more expansive internal controls to move faster in the event of material billing rates variances vs. anticipated final rates, including but not limited to, a mid-year formal management assessment and determination if an updated provisional rate would be appropriate. For fiscal year 2023, Parallax submitted an updated provisional rate package in June 2023 to expedite federal payments on estimated underpayments. The final billing rate for fiscal year 2022 is currently under review, which will provide additional cash collections from underpayments. Parallax will continue to refine rate management internal controls into fiscal year 2024 and beyond with a focus on continuous improvement and more expedient responses to any billing rate challenges. In addition to rate management process refinement, Parallax has received approval from the board of directors to increase the organizations line of credit and is currently working with our bank to increase the line. The increase in the line of credit is anticipated to happen prior to the end of calendar year 2023.
2022-002
FAC accepted this audit on November 22, 2022 — management decision was due May 22, 2023.
The Organization did not have adequate documentation of extended payment terms in the ordinary course of business, and exceeded the typical 30 days. Effect: Subset of vendors were paid later than 30 days from the date of the request for reimbursement from the government. Cause: The Organization has been extending terms and conditions of payments of vendors beyond 30 days from the date of reimbursement request, as necessary for overall operations and its cash management needs. Questioned costs: None. Context: Of the sample of 60, nine of the selections were paid to the vendors more than 30 days from request for reimbursement. Of those nine, five were paid within 30 days of the receipt of the reimbursement from the government. Recommendation: The Organization should review its procedures, and update as necessary.
Show full finding ▾Hide full finding ▴Criteria: For cost-reimbursement contracts under the Federal Acquisition Regulations (FAR), 52.216-7(b)(1), with relation to supplies and services purchased for use on the contract, ?ordinary course of business? would be in accordance with the terms and conditions of a subcontract or invoice, and ordinarily within 30 days of the request to the federal government for reimbursement. Condition: The Organization did not have adequate documentation of extended payment terms in the ordinary course of business, and exceeded the typical 30 days. Effect: Subset of vendors were paid later than 30 days from the date of the request for reimbursement from the government. Cause: The Organization has been extending terms and conditions of payments of vendors beyond 30 days from the date of reimbursement request, as necessary for overall operations and its cash management needs. Questioned costs: None. Context: Of the sample of 60, nine of the selections were paid to the vendors more than 30 days from request for reimbursement. Of those nine, five were paid within 30 days of the receipt of the reimbursement from the government. Recommendation: The Organization should review its procedures, and update as necessary.
As a self-funded non-profit, management of cash is one of our highest priorities. The majority of our subcontractor invoices are ordinarily paid within 30 days of the submission of Parallax?s payment request to the government. This is consistent with the results of the audit. To remediate the situation, management is working to increase the line of credit (LOC) which will facilitate earlier payments to suppliers. One of the gating items, is the completion of this annual financial audit. Once submitted, our bank will review and, if acceptable, process our request. Indications are that the bank will increase our LOC. Projected Completion: Jan 30, 2023.
FAC accepted this audit on January 25, 2022 — management decision was due July 25, 2022.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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