Agenda - 06-06-1988 - Laserfiche WebLink

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• • OTHER TERMS AND CONDITIONS • (Reference — C. S. 159-34 and G. S. 115C-447) 1. All local government and public authority contracts for annual or special audits, financial statement preparation,finance-related investigations, or any 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 paid by the governmental unit until the invoice has been approved by the Secretary of the Local Government Commission. (This also includes any interim invoices.)The invoice should be submitted in triplicate. The original and one copy will be returned to the auditor and a copy retained by the Secretary of the Local Government Commission. Approval is not required on contracts for system improvements and similar services of a non-auditing nature. 2. The contract should be executed and submitted in triplicate to the Secretary of the Local Government Commission, 325 North Salisbury Street, Raleigh, North Carolina, 27611. 3. Upon approval, the original will be returned to the governmental unit, a copy, will be forwarded to _ ,. .. _ _0-0.auditor, am_d•a copy._retained by the Secretary of the Local Government Commission. The-audit - should not be started before the contract is approved. 4. This contract contemplates an unqualified opinion being rendered. Any limitations or restrictions in scope which would lead to a qualification should be fully explained In an attachment to this contract. Contracts with such limitations will not be approved unless satisfactory explanation is made. 5. If an approved contract needs to be varied or changed,the change must be reduced to writing,signed by both parties, and submitted to the Secretary of the Local Government Commission for approval. No change shall be effective unless approved by the Secretary of the Local Government Commission, the Governing Board, and the Auditor. 6. A separate contract should not be made for each division to be audited or report to be submitted. The scope of the audit should be dearly stated and the fee for both the financial and compliance audit should be broken down between audit services rendered for federal and State moneys on the invoice if the governmental unit desires.All fees include any cost the Auditor may incur from work paper reviews • by third parties(federal and State agencies)as required under the Federal and State Single Audit Acts. 7. Three copies(one copy for units not having a single audit)of the report of audit and any other written report by the auditor shall be filed with the Secretary of the Local Government Commission when(or prior to) submitting the invoice for the services rendered no later than four months after the close of the fiscal year(for fiscal years ending June 30 this would be October 31).The report of audit, as filed with the Secretary of the Local Government Commission,becom 50 of, u_blir,reeodn#orinspc – -- - -„ �` tioiiaiid ieview in�lie offves of the Secretary by any interest parties.These reports are used in the prepara- tion of Official Statements for debt offerings as well as by municipal bond rating services.The Auditor's analysis of the accounting system and his recommendations for improvements are intended for the Secretary's staff having direct responsibilities in the area of accounting and fiscal controls. 8. Whenever the auditor uses an engagement letter with the client,Section 9 may be completed by referen- cing the engagement letter and attaching a copy of the engagement letter to the contract to incorporate the-engagement-letter-into-the-contract. 9. Units of government not having a single audit on federal and State funds would list paragraph 7 in paragraph 11 of the contract.An explanation must be given in paragraph 11 for any unit not receiving a single audit on federal and State funds(e.g. a single audit is not required under the Federal and State Single Audit Acts and is not being performed.) •