Audit 365556

Title: BASIS OF PRESENTATION Accounting Policies: Federal awards are accounted for using the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The Schedule reflects the modified cash basis of accounting in which revenues and expenditures are recognized when received or checks are issued. De Minimis Rate Used: Y Rate Explanation: The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. The City has elected to use the 10% de minimis indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the expenditures of the City of Carrollton, Illinois (City) under programs of the federal government for the fiscal year ended April 30, 2025. Because the Schedule presents only a selected portion of the operations of the City, it is not intended to, and does not, present the financial position, changes in net position, revenues, and expenditures of the City. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the City and agencies and departments of the federal government and all sub-awards to the City by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. The Schedule presents expenditures by federal agency for the City’s major and nonmajor programs in accordance with the provisions of the U.S. Office of Management and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

Title: SUBRECIPIENTS Accounting Policies: Federal awards are accounted for using the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The Schedule reflects the modified cash basis of accounting in which revenues and expenditures are recognized when received or checks are issued. De Minimis Rate Used: Y Rate Explanation: The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. The City has elected to use the 10% de minimis indirect cost rate. The City did not pass through any federal funds to subrecipients during the year ended April 30, 2025.

Title: NONMONETARY DISTRIBUTIONS Accounting Policies: Federal awards are accounted for using the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The Schedule reflects the modified cash basis of accounting in which revenues and expenditures are recognized when received or checks are issued. De Minimis Rate Used: Y Rate Explanation: The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. The City has elected to use the 10% de minimis indirect cost rate. None.

Title: INSURANCE Accounting Policies: Federal awards are accounted for using the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The Schedule reflects the modified cash basis of accounting in which revenues and expenditures are recognized when received or checks are issued. De Minimis Rate Used: Y Rate Explanation: The Uniform Guidance requires that all indirect costs be charged through the use of an approved indirect cost rate. When no indirect cost rate has been approved, the Uniform Guidance allows for a one-time election to use a 10% de minimis reimbursement rate. The City has elected to use the 10% de minimis indirect cost rate. The City had no insurance as it relates to federal programs in effect for the year ended April 30, 2025.