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r & <br /> �f <br /> LGC-205(Rev.2010) CONTRACT TO AUDIT ACCOUNTS <br /> File in Triplicate. <br /> of Orange County, NC <br /> Governmental Unit <br /> On this 15th day of June 2010 , Martin Starnes&Associates, CPAs, P.A. <br /> Auditor <br /> 730 13th Avenue Drive SE, Hickory, NC 28602 <br /> Mailing Address <br /> hereinafter referred to as <br /> the Auditor,and Board of Commissioners of Orange County, NC hereinafter referred <br /> Governing Board Governmental Unit <br /> to as the Governmental Unit,agree as follows: <br /> 1. The Auditor shall audit all statements and disclosures required by generally accepted accounting principles and additional required <br /> legal statements and disclosures of all funds and/or divisions of the Governmental Unit for the period beginning <br /> July 1 1 2009 , and ending June 30 2010 . The non-major combining, and individual fund <br /> statements and schedules shall be subjected to the auditing procedures applied in the audit of the basic financial statements and an <br /> opinion will be rendered in relation to (as applicable) the governmental activities, the business-type activities, the aggregate <br /> discretely presented component units, each major governmental and enterprise fund,and the aggregate remaining fund information <br /> (nonmajor government and enterprise funds,the internal service fund type,and the fiduciary fund types). <br /> 2. At a minimum, the Auditor shall conduct his/her audit and render his/her report in accordance with generally accepted auditing <br /> standards. The Auditor shall perform the audit in accordance with Government Auditing Standards if required by the State Single <br /> Audit Implementation Act, as codified in G.S. 159-34. If required by OMB Circular A-133 and the State Single Audit <br /> Implementation Act,the auditor shall perform a Single Audit. This audit and all associated workpapers may be subject to review by <br /> Federal and State agencies in accordance with Federal and State laws including the staffs of the Office of State Auditor(OSA)and <br /> 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 <br /> the North Carolina State Board of CPA Examiners. <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 disclosures required by GAAP, explain that <br /> departure from GAAP in the space below: <br /> 4. This contract contemplates an unqualified 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 restrictions <br /> in scope which would lead to a qualification should be fully explained in an attachment to this contract. The audit will have no scope <br /> limitations except: <br /> 5. If this audit engagement is subject to the standards for audit as defined in Government Auditing Standards, July 2007 revisions, <br /> issued by the Comptroller General of the United States,then the Auditor warrants by accepting this engagement that he has met the <br /> requirements for a peer review and continuing education as specified in Government Auditing Standards. The Auditor agrees to <br /> provide a copy of their most recent peer review report regardless of the date of the prior peer review report to the <br /> Governmental Unit and the Secretary of the Local Government Commission prior to the execution of the audit contract. (See Item <br /> 21.) <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 to the LGC by <br /> October 31 2010 . If it becomes necessary to amend the due date of the audit a written explanation of the <br /> delay must accompany the amended contract. <br /> 7. It is agreed that generally accepted auditing standards include a review of the Governmental Unit's system of internal control and <br /> accounting as same relates to accountability of funds and adherence to budget and law requirements applicable thereto; that the <br /> 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 <br /> forth his findings, together with his recommendations for improvement. That written report must include all matters defined as <br /> "significant deficiencies and material weaknesses"in AU 325 of the AICPA Professional Standards.The Auditor shall file a copy of <br /> that report with the Secretary of the Local 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 audit, financial statement preparation, any finance-related investigations, or any other audit-related <br /> work in the State of North Carolina require the approval of the Secretary of the Local Government Commission. Invoices for <br /> services rendered under these contracts shall not be paid by the Governmental Unit until the invoice has been approved by the <br /> Secretary of the Local Government Commission. (This also includes any progress billings) [G.S. 159-34 and 115C-447] All <br /> invoices should be submitted in triplicate to the Secretary of the Local Government Commission.The original and one copy will be <br />