Agenda - 12-07-2009 - 4l - Laserfiche WebLink

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t.cc-2o5 (ltev. 2009) CONTRACT TO AUDIT ACCOUNTS Fite in Trlptinte. of Oran~2e County. North Carolina Govemmeotat unit On this _23rd day of November 2009 McGladrey & Pullen, LLP Auditor P O Box 2470 Greensboro NC 27402-2470 Mailing Address hereinafter referred to as the Auditor, and the County Commissioners of Oranee 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 lone 30 2009. .The non-major combining, and individual fund stazements and schedules shall be subjected to the auditing procedures applied in the audit of the basic fmancial 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 information (nonmajor government 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 his/her report in accordance with generally accepted auditing standards. The Auditor shall perform the audit in accordance with Government Auditing 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 workoavers may be subiected to 3. 7fiis contract contemplates an unqualified opinion being rendered If financial stazements are not prepared in accordance with generally accepted accounting principles (GAAP), or the statements fail to include all disclosures requited by GAAP, explain thaz departure from GAAP in the space below: No departures contemplated. 4. This contract contemplates an unqualified 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 resMctions in scope which would lead to a quahficarion should be fully explained in an attachment to this contract. The audit will have no scope limitazions except: No limitations are contemplated. 5. If this audit engagement is subject to the standards for audit as defined in Government Auditine Standards. July 2007 revisions, issued by the Comptroller General of the United States, then the Auditor warrants by accepting this engagement thaz he has met the requirements for a peer review and continuing education as specified in f',overnment Auditine 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 np 'or to the execution of the audit contract. (See Item 20J 6. It is agreed that time is of the essence in this contract. A11 audits are to be performed and the report of audit submitted by December 31 2009 If it becomes necessary to amend the due date of the audit a written explanation of the delay must accompany the amended contract 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 fmdings, 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. The Auditor shall file a copy of that report with the Secretary of the Local Government Commission. 8. All local government 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-[elated 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 void by the Governmental Unit until the invoice has been approved by the Secretary of the Local Govertrment Co 'ssioa (This also includes any oror~ess brllines.) [G.S. 159-34 and I15C-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 similaz services of anon-auditing nature. 9. In considerazion 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 following 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 Staze 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 W bookkeeping services permitted by revised Independence Standards] NONE ANTICIPATED. Anv services Qerformed in addition to normal audit procedures will be char¢ed at standard rates. Audit • 592 700 plus variable rate at standard costs due to the delays enrnuntered. Anv additional maior programs above four (4) will be billed at 54.200 each. Preparation of the Financial statements - S5.250 for the preparation of the schedules of property tax receivables for the Towns of Chanel Hill, Carrboro and Hillsboroueh. 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 maerial 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.