2009-019 Finance - McGladrey & Pullen

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`j ~ RECEIVED i-GC-2os (Itev. lnnoos) CONTRACT TO AUDIT ACCOUNTS MAY 0 4 2009 File in Triplicate '~ of Orange County, North Cazolina I_oc OMM SSIONE~ Governmental Unit On this _l6th day of March 2009 McGladrev & Pullen, I_L,P Auditor P.O. Box 2470. Greensboro. NC 27402-2470 Mailing Address hereinafter referred to as the Auditor, and the Commissioners of Orange County ,hereinafter referred to as the Governing Board Governmental Unit Governmental Unit, agree as follows: 1. The Auditor shall audit all statements and disclosures required by generally accepted accounting principles and additional-, required legal statements and disclosures of all funds and/or divisions of the Governmental Unit for the period beginning July 1 2008 ,and ending June 30 2009 .The non-major combining, and individual fund statements and schedules shall be subjected to the auditing procedures applied in the audit of the basic financial statements and an opinion will be rendered in relation to (as applicable) the governmental activities, the business-type activities, the aggregate discretely presented component units, each major governmental and enterprise fund, and the aggregate remaining fund infomtation (nonmajor govemment and enterprise funds, the internal service fund type, and the fiduciary fund types). 2. At a minimum, the Auditor shall conduct his/her audit and render hisflter report in accordance with generally accepted auditing standards. The Auditor shall perform the audit in accordance with Government Auditin¢ Standards if required by the State Single Audit Implementation Act, as codified in G.S. 159-34. If required by OMB Circular A-133 and the State Single Audit Implementation Act, the auditor shall perform a Single Audit. This audit and all associated workpapers may be subjected to review by Federal and State agencies in accordance with Federal and State laws, including the staffs of the Office of State Auditor (OSA) and the LGC. If the audit and/or workpapers are Found in this review to be substandard, the results of the review may be forwarded to the North Carolina State Board of CPA Examiners. 3. This contract contemplates an unqualified opinion being rendered. If financial statements are not prepared in accordance with generally accepted accounting principles (GAAP), or the statements fail to include all disclosures required by GAAP, explain that departure from GAAP in the space below: No departures contemplated. 4. This contract contemplates an unqualifted opinion being rendered. The audit shall include such tests of the accounting records and such other auditing procedures as are considered by the Auditor to be necessary in the circumstances. Any limitations or restrictions in scope which would lead to a qualification should be fully explained in an attachment to this contract. The audit will have no scope limitations except: No limitations are contemplated. 5. If this audit engagement is subject to the standards for audit as defined in Government Auditin¢ Standards, July 2007 revisions, issued by the Comptroller General of the United States, then the Auditor warrants by accepting this engagement that he has met the requirements for a peer review and continuing education as specified in Government Auditin¢ Standards. The Auditor agrees to provide a copy of their most recent peer review report to the Governmental Unit and the Secretary of the Local Government Commission prior to the execution of the audit contract. (See Item 21.) 6. It is agreed that time is of the essence in this contract. All audits are to be performed and the report of audit submitted by -October 31 2009 7. It is agreed that generally accepted auditing standards include a review of the Governmental Unit's system of internal control and accounting as same relates to accountability of funds and adherence to budget and law requirements applicable thereto; that the Auditor will make a written report, which may or may not be a part of the written report of audit, to the Governing Board setting forth his findings, together with his recommendations for improvement. That written report must include all matters defined as "significant deficiencies and material weaknesses" in AU 325 of the AICPA Professional Standards. Auditor shall file a coov of that report with the Secretarv of the Local Government Commission. 8. All local govemment and public authority contracts for annual or special audits, bookkeeping or other assistance necessary to prepare the Unit's records for audit, financial statement preparation, any finance-related investigations, or any other audit- related work in the State of North Carolina require the approval of the Secretary of the Local Government Commission. Invoices for services rendered under these contracts shall not be paid by the Governmental Unit until the invoice has been approved by the Secretary of the Local Government Commission. (This also includes any progress billings.) [G.S. 159-34 and 115C-447] All invoices should be submitted in triplicate to the Secretary of the Local Government Commission. The original and one copy will be returned to the Auditor. Approval is not required on contracts and invoices for system improvements and similar services of anon-auditing nature. 9. [n consideration of the satisfactory performance of the provisions of this agreement, the Governmental Unit shall pay to the Auditor, upon approval by the Secretary of the Local Government Commission, the followin¢ fee which includes any cost the Auditor may incur from work paper or peer reviews or any other quality assurance program required by third parties (Federal and State grantor and oversight agencies or other organizations) as required under the Federal and State Single Audit Acts: Year-end bookkeeping assistance - [For audits subject to Government Auditing Standards, this is limited to bookkeeping services permitted by revised Independence Standards] -NONE ANTICIPATED. Anv services ierformed in addition to normal audit procedures will be cLar¢ed at standard rates Audit - X92 700 for the audit unless the scoce of the engagement is changed. the aedstanoe which the Cnu __ Preparation o[ the tlnancial statements -_SS.ZSO for the preparation of the schedules of property tax recdvables [or the Towa4 0[ Chapel IBB. Carrboro and Hillsbo h- 10. After completing his audit, the Auditor shall submit to the Governing Board a written report of audit. This report shall include, at least, Management's Discussion and Analysis, the financial statements of the governmental unit and all of its component units and notes thereto prepared in accordance with generally accepted accounting principles, combining and supplementary information requested by the client or required for full disclosure under the law, and the Auditor's opinion on the material presented. The Auditor shall famish the required number of copies of the report of audit to the Governing Board as soon as practical after the close of the accounting period.