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<br />CONTRACT TO AUDIT ACCOUNTS
<br />of Orange County, North Carolina
<br />Govcromenml Uait
<br />MAY 14 2007
<br />LOCALt30VERPIMENT
<br />COMMISSION
<br />day of APB 2007 McGladrey & Pullen, LLP
<br />Auditor
<br />P n Rnx ?.470_ Greensboro. NC 27402-2470
<br />Mailing Address
<br />hereinafter referred to as
<br />the Auditor, and the Com;nissioners of Orange County, NC , hereinafter referred
<br />Governing Board GOVe~,meni?-~ Unit
<br />to as the Governmental Unit, agree as follows: ,
<br />1. The Auditor shall audit all statements and disclosures required by generally accepted aceounting prnctplea and additional required
<br />legal statements and disclosures of all funds and/or divisions of the Governmental Unit for the period beginning
<br />Jaty t 2006 and ending June 30 2007 • The, management's discussion and analysis,
<br />non-major combining, and individual fund statements and schedules shall be subjected to the auditing procedures applied in Ote
<br />audit of the basic financial statements and an opinion will be rendered in relation w (~ applicable) the governmental activities, the
<br />business-type activities, the aggregate discretely presented component units, each major governmental and enterprise fund, and Ute
<br />aggregate m~;n;ng fund information (nonmajor government sbe enterprise funds, the internal service fund type, and the fiduciary
<br />fund types).
<br />2. At a minimum, the Auditor shall cerinuct his audit and render his report in accordance with generally accepted auditing standards.
<br />The Auditor shall perform the audit in accordance with GaverrLent Aud;tina Standards if required by the State Single Audit
<br />Implementation Act, as codified in G.S. 159-34. If required by OMB Circular A-133 and the State Single Audit Implementation
<br />Act, the auditor shall perform a Single Audit
<br />3. This contract contemplates an unqualified opinion being rendered If financial statements are not prepared in accordance with
<br />generally accepted accounting Principles (GAAP), or the statements fail to include all disclosuues required by GAAP, explain that
<br />departure from GAAP in the space below:
<br />No departures are contemplated.
<br />4. This contract contemplator an anqualifred opinion being rendered The audit shall include such tests of the accounting records and
<br />such other auditing procedures as are considered by the Auditor to be necessary in the circumstances. Any limitations or
<br />restrictions in scope which would lead to a qualification should be fully explained in an attachment to this contract. The audit will
<br />have no scope lmitatoas except: No limitations are contemplated.
<br />5. If this audit engagement is subject to the standards for audit as defined in l'*nver~ent Attditine Stand?*~= issued by the
<br />• Comptroller General of the United States, then the Auditor warrants by accepting this engagement that helsbe has met the
<br />requirements for a peer review abe continuing education as specified in cnvemment Au_~~tLna Standards. The Auditor agrees to
<br />provide a copy of their most recent peer review report to the Governmental Unit and the Secretary of the Local Government
<br />Commissiononor t4 the execution of the audit contract. (See Item 20.)
<br />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
<br />October 31 2007
<br />7. It is agreed [bat generally accepted auditing standards include a review of the Governmental Unit's system of internal control and
<br />aceounting as same relates to accountability of funds and adherence to budget and law requirements applicable thereto; that the
<br />AudiWr will make a written report, which may or may not be a part of the written report of suuiit, to the Governing Board setting
<br />forth his findings, together' with his recemmendations for improvement. That written report must include all matters defined as
<br />"reportable conditions" in AU 32s of the AICPA Professional Standards. The Auditor shall file a cony of that report with the
<br />Secre of the r.,rat Government Commission.
<br />8. All local government and public authority contracts for annual or special audits, bookkeeping or other assistance necessary to
<br />prepare the Unit's records for auudit, 5nancial statement preparation, any finance-related investigations, or any other surdit-related
<br />work in the State of Nortli Carolina require the approval of the Secretary of the Local Government Commission. Invoices for
<br />w,rn ~ r;er these contracts shall not be pad by the Governmental Unit tmtil rhP ;nvn; a h .been anoroved by the
<br />C-crotarv of the Local Government Commission Pfhis also includes anv oro¢ress billines.l [G.S. 159-34 and 11sC~47] All
<br />invoices should be sudrmitted in triplicate to the Secretary of the Local Government Commission. The original and one copy will
<br />be returned to the Auditor. Approval is not required on contracts snd invoices for system improvements and similar services of a
<br />non-auditing nature.
<br />9. In consideration of the satisfactory performance of the provisions of this agreement, the Governmental Unit shall pay to the
<br />Auditor, upon approval by the Secretary of the Local Government Commission, tbe following fee which includes any cost the
<br />Auditor may incur from work paper or peer reviews or air other quality assurance program regtrired by third parties (Federal and
<br />State grantor and oversight agencies or other organizations) as required under the Federal and State Single Abeit Acts:
<br />Year<nd bookkeeping assistance - [For aadrtr sabjed to Government Aadititrg Standards, this is limited to bookkeeping
<br />servicespermitadkyrevisedlndependenceStandardsl noraGwrmcowrm.s:r~.m,aQ..~.~~~r•aa~w~~•~•~•~~rr~.,m~
<br />Audit -
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<br />Prepantioa of the flnaucial statements
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<br />i
<br />10. After completing his audit, the Auditor shall submit to the Governing Board a written report of audit This report shall include, at
<br />least, Management's Discussion and Analysis, the Snancial statements of the governmental unit and all of its component omits and
<br />• notes thereto prepared in accordance will[ generally accepted accounting principles, combining and supplementary infomuation
<br />requested by the client or required for full disclosure under the law, and the Auditor's opinion on the material Presented. The
<br />Auditor shall famish the required number of copies of the report of audit to the Governing Board as soon as Practical after the
<br />close of the accounting period.
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