Audit 332139

Title: 1. Basis of Accounting Accounting Policies: Expenditures reported on the Schedule are reported on a modified cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Haskins Laboratories, Inc. did not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Haskins Laboratories, Inc., under programs of the federal government for the year ended December 31, 2023 and is presented on a modified cash basis of accounting. That basis differs from accounting principles generally accepted in the United States of America primarily because the Organization recognizes expenses when paid rather than when incurred and recognizes revenue and related assets when earned based on expenses paid. In addition, a liability for postretirement benefits, and their related effects on the change in net assets is not recognized and operating leases are not recognized on the statement of financial position. Accounting principles generally accepted in the United States of America also require the use of the liquidation basis of accounting when liquidation is imminent. This would require that assets be measured at the estimated amounts of cash or other consideration expected to be received upon dissolution and liabilities be measured at their estimated settlement amounts. The Organization did not apply the liquidation basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operation of Haskins Laboratories, Inc. it is not intended to and does not present the financial position, changes in net assets, or cash flows of Haskins Laboratories, Inc.

Title: 2. Summary of Significant Accounting Polices Accounting Policies: Expenditures reported on the Schedule are reported on a modified cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Haskins Laboratories, Inc. did not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. a. Expenditures reported on the Schedule are reported on a modified cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. b. The Haskins Laboratories, Inc. did not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.