CITY OF HERRIN, ILLINOISLocal Government

Criteria Entities that receive federal grants or programs are required to know the source of all grants and awards as the requirements of the U.S. Office of Management and Budget’s (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Final Rule (Uniform Guidance). Entities must be able to document the key components of the schedule of expenditures of federal awards. Condition and Context There was no schedule of expenditures of federal awards provided by management. Cause The City of Herrin has not had an audit requirement under Uniform Guidance in several years and therefore the current budget officer has not had to provide the detailed information every year. Effect The audit firm assisted with compiling all the necessary information to ensure the schedule of federal awards was complete and accurate. Recommendation We recommend management incorporate proper training and education on the information and amounts that must be outlined in the schedule of expenditures of federal awards and further we recommend that management prepare the schedule at least annually including in those years when they are not required to have an audit of federal awards under the Uniform Guidance. Management Response Management will prepare the schedule of expenditures of federal awards as part of the year-end closing process each year to determine their audit requirements under the Uniform Guidance and provide the schedule and all backup used to prepare it to the audit firm during the financial audit process. Official Responsible for Ensuring the Corrective Action Plan is implemented Carl Goodwin, Treasurer Planned Completion Date for the Corrective Action Plan Recommendations are considered at the issuance of the report and it is planned the correction be implemented for the next fiscal year end April 30, 2026.