2003 S Finance - Cherry, Bekaert & Holland, L.L.P Audit Contract for the June 30, 2003 Fiscal Year

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LGC-205 (Rev.1/[/2003) CONTRACT TO AUDIT ACCOUNTS File iu Triplicate. of Orange County, North Carolina Governmental Unit MAY so 2003 On this 31st day of Maroh 2003 cherry, Bekaem, 8 Holland, LLP Auditor P.O. Drawer47 Fayetteville, North Carolina 28302 Mailing Address hereinafter referred to as the Auditor, and coumy Commissioner of Orange County, North Carolina ,hereinafter referred Governing Board Governmental Unit to as the Governmental Urtit, agree as follows: LGC 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 ~uiv t , zooz ,and ending ~v^a ~ ,2003 .The combining, individual fund, and account group financial statements and schedules shall be subjected to the auditing procedures applied in the audit of the combined financial statements and an opinion will be rendered in relation to the combined financial statements taken as a whole. 2. At a minimum, the Auditor shall conduct his audit and render his report in accordance with generally accepted auditing standards. The Auditor shall perform the audit in accordance with Government Auditine Standazds if required by the State Single Audit Implementation Act, as codified in G.S. 159-34. If required by OMB Circulaz A-133 and the State Single Audit Implementation Act, the auditor shall perform a Single Audit. 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: 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 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: 5. If this audit engagement is subject to the sandazds for audit as defined in Government Auditing Standards, issued by the Comptroller General of the United States, then the Auditor warants by accepting this engagement that he/she has met the requirements for a peer review and continuing education as specified in Government Auditing Sta ardc. 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 Ss the execution of the audit contract. (See Item 20.) 6. It is agreed that time is of theessence in this connect. All audits are to be performed and the report of audit submitted by October 31 2003 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 "reportable conditions" in AU 325 of the Ai PA Pmfeccional an a c, The Auditor shall file a cony of that renort~th [he[he Secretary of the Local Gov meet .ommic ion. 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-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 ~rv of t_ne t_ocat Ciovemment Co mi cion fThi al o in 1 rd an~p~eresc billings 1 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. In 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 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 State grantor and oversight agencies or other organizations) as required under the Federal and State Single Audit Acts: Year-end bookkeeping assistance - N/A Audit - $39,000 -Financial Audit, $19,000 -Single Audit, $2000 -for each additional single audit progran Preparation of the financial statements - $6,000 10. After completing his audit, the Auditor shall submit to the Governing Board a written report of audit. This report shall include, at least, 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. 11. The Auditor shall file with the Local Government Commission two copies of the report of audit, including one copy of the federal Data Collection Form, if a federal single audit is conducted. Two copies of the report of audit should be submitted if an audit is required to be performed only under the requirements of the State Single Audit Implementation Act or a financial audit is required to be performed in accordance with Government Auditing Stan ardc. Otherwise, one copy shall be submitted. Copies of the report shall be filed with the Local Government Commission when (or prior to) submitting the invoice for the services