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3 <br /> Deloifte & <br /> Touche LAP <br /> Suite 1800 Telephone:(919)546-8000 <br /> / First Union Capitol Center Telex:4995716 <br /> 150 Fayetteville Street vlall Facsimile: (919)833-3276 <br /> P.O. Box 2778 <br /> Raleigh, North Carolina 27602-2778 <br /> May 26, 1995 <br /> The Board of County Commissioners <br /> Orange County, North Carolina <br /> Dear Ladies and Gentlemen: <br /> We are pleased to serve as independent accountants and auditors for Orange County,North Carolina <br /> for the year ending.June 30, 1995. This letter reaffirms our contract with you dated May 26, 1995. <br /> Mr. Rex Price will be the partner in charge of all work we perform for you. We believe that frequent <br /> and timely communication throughout the year reduces the problems that are often associated with <br /> an armual audit. In addition, we have found that we can often assist clients on current problems as <br /> they arise. We hope you will call Mr. Price whenever you feel that he can be of assistance. <br /> It is our usual practice to have a second partner act as a consulting partner on each client assignment. <br /> The purpose of this arrangement is to have another partner, known to you, who is familiar with your <br /> operations and who can substitute for Mr. Price in his absence or work with him when a second <br /> viewpoint is desired. Mr. Sam McNairy will be the consulting partner for your engagement. <br /> This letter sets forth our understanding of the terms and objective of our engagement, the nature and <br /> scope of the services we will provide, and the related fee arrangements. <br /> We will audit Orange County's: <br /> • General purpose financial statements as of and for the year ending June 30, 1995 <br /> • Schedule of Federal and State Financial Assistance <br /> • Compliance with laws and regulations related to federal and state financial assistance. <br /> Deloittebuche <br /> Tohmatsu <br /> International <br />