2002 S Finance - Cherry, Bekaert & Holland

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n MAY 14 2002 U t.(;(•-205(Rev. 1i1i2W2) CONTRACT TO AUDIT ACCOUNTS File in Triplicate. LGC of Orange County, North Carolina Govenuneutal Unit 0n this 25th —day of_ March 2002 ,_Cherry.. Rekaert & Holland, LLP P.O. Drawer 47, Fayetteville, NC 28302 Auditor - �- — Mailing Address hereinafter referred to as the Auditor,and County Commissioners 01 Orange County ,hereinafter referred (iovenung Board Governmental thin to as file l iovernntenlal Unit,agree as IbIlows: I. 'I he 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 __._=1-_,and ending Tien"0_____, 2nn2 _.'file combining,individual fund,and account group financial statenicnis and schedules shall he subjected to the auditing procedures applied in file audit of file combined financial statements and an opinion will be rendered in relation to the combined financial statements taken as a whole. 2. At a mininwm, the Auditor shall conduct his audit and render his report in accordance with generally accepted auditing standards."Ihe Auditor shall perform the audit in accordance with Government Auditing Standards if required by the State Single Audit Implementalion Act, us codified in G.S. 159-34. If required by OMB Circular A-133 and the Stale Single Audit Implementation Act,the auditor shall perform a Single Audit. 3. This conlract contemplates tilt ttngnalyied opinion be;ng rendered. If financial statements are not prepared in accordance with generally accepted accounting principles ((;AAP), or the statements fail to include all disclosures required by GAA1, explain that departure from(;AAP in the space below: 4. this contract contemplates till togoaliijied 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 lindtatioms or rrsm-ictions in scope which woah/lead to is quidoictition should be fully expla;ned in till attachment to this contract. The audit will have no scope linritalions except: 5. If this audit engagement is subject to the standards fur audit as defined in Government Auditing Standards, issued by the Comptroller Gencral of the United States, then the Auditor warrants by accepting this engagement that he/she has met the requirements for a peer review and continuing education as specified in Government Auditing 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 Uior L the execution of the audit contract. (See Item 20.) 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 2002 7. It is agreed that generally accepted auditing standards include a review of life Governmental Unit's system of internal control and accounting as runic relates to accountability of thuds and adherence to budget and law requirements applicable thereto;diuf 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 selling forth his findings, together with his recommendations for improvement. 'Ilia( written report must include all matters defined as "reportable conditions" in AU 325 of the AICPA Professional Standards. The Auditor shall file a copy of that report with the Secretary of the Local(lovernmeni Commission. H. All local government and public authority contracts for annual or special audits, bookkeeping or other assistance necessary to prepare the Unit's records Ibr audit, financial statement preparation,any finance-related investigations,or any other audit-related work in the State of Not ill Carolina require file approval of fhe Secretary of the Local Government Commission. Invoices for services rendered under these contracts shall not be paid by the Governmental Unit until file invoice has been approved by the Secretary of the Local Government Commission. (This also includes any prowcss billings.)All invoices should be submitted in triplicate to the Secretary of(he Local Government Commission. The original and one copy will be returned to the Auditor. Approval is not required on conlrucis and invoices for system improvements and similar services of a non-auditing nature. 9. In consideration of the satisfactory performance of the provisions of this agreenietit, the Governmental Unit shall pay to the Auditor, upon approval by the Secretary of the Local Government Commission, file following fee which includes any cost the Auditor may incur fiont 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)us required under the Federal and State Single Audit Acts: Ycar-end bookkeeping assistance- N/A Audit- $37,500— Financial audit, $18.500— Single audit, $1.900 for Pac•h additional single audit program Preparation of the financial statements- $5,000 10. Alice completing his audit,the Auditor shall submit to the Governing Board a written report of audit.This report shall include,at least, the financial slutcntents of'[lie governmental unit and all of Its component units and holes thereto prepared in accordance with generally accepted accounting principles,combining and supplementary infurnlution requested by the client or required for full disclosure under the law,and the Auditor's opinion on the material presented.The Auditor shall furnish the required number of copies of fhe report of audil to file Governing Board as soon us Imuclicul ulicr the close of the accounting period. H.. The Auditor shall file with (he local Government Commission two copies of the report of audit, including one copy of the federal Dulu Collection Form, it'u 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 Stale Single Audit Implcmentaliun Act or a financial audit is required to be performed in accordance with Goyenunen(Auditing Standards.Otherwise,one copy shall be submitted.Copies of file report shall be filed with the Local Government Commission when (or prior to) submitting the invoice for the services